Ricegrowers Ltd. Class B · ASX:SGLLV
Ricegrowers Ltd. Class B — Non-Deal Roadshow (June 2017)
19 slides from Ricegrowers Ltd. Class B's roadshow presentation, June 2017
Slide 1: SunRice Grower & Shareholder Meetings
SunRice Grower & Shareholder Meetings Mr. Rob Gordon, CEO June 2017
Slide 2: The situation leading up to 2012 and the subsequent Strategy
The situation leading up to 2012 and the subsequent Strategy Portfolio The 2012 Strategy characteristics 2011 2
Slide 3: Strategy increased portfolio resilience against three main business challenges
This strategy was responsible for increasing the resilience of the portfolio in the face of three main business challenges CHALLENGES FACING THE BUSINESS SUNRICE 2012-16 STRATEGY VOLATILE CROP Increased the resilience of the portfolio : In addition to weather fluctuations, Riverina rice Diversified
Slide 4: Headline financials have displayed significant resilience
Although the AU rice supply has fallen in the past few years, our headline financials have displayed significant resilience … AU Crop Size Group Revenue Net Profit After Tax Paddy, kT $bn $m 1161 6% 1.25 1.27 7% 23% 52 963 1.15 49 1.07 829 1.00 800 690 36 34 30-35* 23 244 C11 C12 C13 C14 C15 C16 C11
Slide 5: Shareholders rewarded with increases to share price, dividends and paddy prices
… and our shareholders have also been rewarded with significant increases to share price, dividends and paddy prices Share Price Dividend Paddy Price (Year-end) (Cents per B Class Share) (AUD per Tonne, Reiziq) 11% 4.50 4.30 4.17 33 415 16% 31 * 10% 395 404 3.20 3.15 317 23 23 294 2.50 255 18 C11 C1
Slide 6: ROCE lifted and gearing significantly reduced
We have also lifted our ROCE quite significantly from C11-15 and significantly reduced our gearing from ~40% to ~30% Return on Capital Employed Debt / (Debt + Equity) Conclusion % % In good times : 15.8% 39.7% 15.1% 38.2% 13.6% 14.1% Our Strategy 31.8% delivered good 30.4% 30.5% 11.7% results In bad
Slide 7: AU rice supply has fallen against rising demand
Against rising demand, AU rice supply has fallen in the past few years, therefore building other origins leveraging our agronomic capability has been a key strategic focus area for the Group AU Crop Size Supply and demand scenario in different Paddy, kT market tranches 1161 Current demand 1100-1200
Slide 8: What's next for SunRice?
What’s next for SunRice? ENSURE THE RIVERINA GROWER FIND NEW PREMIUM MARKETS CAN COMPETE AGAINST COTTON ACROSS THE GLOBE We will promote fewer but higher- Sell Australian rice to markets that earning varietals will pay a premium for clean and - Focus on Premium-market Medium Grain, green rice –
Slide 9: A note on the SunRice 5R proposition
Maximise reliable Returns for the rice based A note on the SunRice 5R proposition grower, narrow the gap and returns/Ml, through initiatives including: - Short season varieties and migration to higher value, premium varieties have the potential to significantly increase cropping frequency and impr
Slide 10: Accelerate development of higher returning varietals
We need to accelerate the development of higher returning varietals other than simply grow Medium Grain Whilst Medium Grain to high-retuning markets The Riverina is well positioned to grow some remains attractive, there are a number of high-returning varietals that are growing in challenges to addre
Slide 11: Serve premium markets with premium supply and value markets with low-cost supply
We should only serve premium markets with premium supply sources and value markets with low-cost supply sources Current Paddy returns for key Riverina grains C16 returns with a simulated 100 = Indexed at Medium Grain paddy return for high-returning markets only volume for Medium Grain A traded rice
Slide 12: Sushi and Low GI rices will resonate with the Asian consumer
Our greater emphasis on sushi and Low GI rices will likely resonate with the Asian consumer – we will further emphasise these varietals in the Riverina going forward Global Sushi demand Overweight populations in Asia Thousand Tonnes Prevalence % of both sexes 300 Japanese cuisine restaurants outside
Slide 13: Snacks as a star player in the Value-Add portfolio
Snacks is forecast to be a star player in our Value-Add portfolio, and requires investment to support profitable growth Healthy Snacking is a fast growing category in ANZ, our existing offshore markets and also in new Asian markets Invest in becoming a market leader in ANZ Our play in this space
Slide 14: Rice by-products and derivatives as high-value opportunities
Similarly, Rice by-products and sophisticated Rice derivatives are viewed as significant and high-value opportunities for the business, both for the Pool and Profit sides of the business Our existing Food Ingredients play has primarily centred on supplying rice and rice flour to ANZ Food Manufactu
Slide 15: In conclusion
In conclusion The 2012 Strategy served to grow the financials of the business and delivered healthy returns for both growers and investors. It also served to increase the resilience of the portfolio With changed market conditions for Medium Grain – that could constrain our pricing levers – the 2
Slide 16: SunRice Grower & Shareholder Meetings
SunRice Grower & Shareholder Meetings Mr. Laurie Arthur, Chairman June 2017
Slide 17: Agenda & Issues for Discussion
Agenda & Issues for Discussion • Vietnamese Rice Industry - Well established and large scale, particularly in the Mekong. - 320,000 paddy tonnes sourced by SunRice in C16. - Produces medium grain that is now being sold in North Asian tender markets. - Multiple crops, favourable water prices and low
Slide 18: Capital Restructure – Update
Capital Restructure – Update • The proposed Capital Restructure remains delayed. As previously communicated, the circumstances related to external factors that are impacting the Capital Restructure are expected to continue and evolve. • The Board is confident that the refreshed strategy will deliver
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Ricegrowers Limited (SunRice) — Non-Deal Roadshow (June 2017) on 6ix