Ricegrowers Ltd. Class B · ASX:SGLLV
Ricegrowers Ltd. Class B — Shareholder Meeting (August 2020)
23 slides from Ricegrowers Ltd. Class B's shareholder meeting presentation, Aug 28, 2020
Slide 1: CEO's Presentation
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Slide 2: Important notice and disclaimer
Important notice This presentation is for information purposes Any person who receives this presentation This presentation should be read in only. This information is given in summary must seek advice on and observe any such conjunction with other publicly available form and does not purport to be c
Slide 3: Agenda
Agenda 70 years of innovation Context for FY2020 results COVID-19 in focus FY2020 results Our strategy in action Riverina rice production Outlook for FY2021 3
Slide 4: 70 Years of Innovation
1990s 70 Years of Solomons Rice Company Limited (SolRice) is aquired to 2005 Growers vote to change the Innovation 1970s further expand markets for Riverina rice. A second mill opens in Deniliquin for brown co-operative’s structure. RCL registers as a company in 2005 and changes its Deniliquin Mill
Slide 5: Key performance statistics since the Millennium Drought
Key performance statistics since the Millennium Drought* $2 $234 Billion Million 106% $148 53% 210% 40% 15% Million Our share We’ve paid out more The Group’s Net Total shareholder And we’ve improved performance has than $2 billion in Tangible Assets grew return increased by the strength of our incre
Slide 6: Context for FY2020 results
Context for • Only 5% of global demand sourced from the Riverina due to the small 2019 crop of 54,000 tonnes, at the time the second-smallest FY2020 results on record • Carried in approximately 300,000 tonnes of crop from 2018 which was lower yielding It was clear at the start of • Given the continu
Slide 7: Our approach to COVID-19
Our approach to COVID-19 Implementing new working arrangements to protect the health and wellbeing of our staff Maintaining business continuity and production to the highest levels possible Keeping in close contact with our key stakeholders, including our customers and suppliers. 7
Slide 8: Impact of COVID-19
Impact of • Operational staff in Australia and around the world have continued to work to ensure that our products – a critical food staple in high COVID-19 demand in many of our markets – could continue to be produced and delivered to customers • Office-based employees have continued to launch new
Slide 9: Impact of COVID-19 (continued)
Impact of • We had increased demand for many of our retail products, in some cases more than 200% of forecasts due to changes in consumer COVID-19 shopping patterns. Sudden spike in demand exceeded existing levels of supply Continued • We ramped up production to respond to this event, however, there
Slide 10: COVID-19 & Hawaii's Economy
COVID-19 & Hawaii’s Economy 2019 2019 2020 2020 Source: State of Hawaii Department of Business, Economic Development & Tourism Excludes flights from Canada 10
Slide 11: Results Snapshot
Results Snapshot SunRice’s FY2020 Financial Results demonstrate the Group’s continued focus on earnings diversification $1.13bn (5%) year-on -year and resilience, as well as the agility developed in our people, supply $23m (30%) chains and operations – key year-on highlights for the business include
Slide 12: Australian rice production versus global demand, and SunRice revenue
Australian rice production versus global demand, and SunRice revenue Crop Size Crop Size (k/t Aus) (k/t Aus) Global Total Revenue Demand ($’M AUD) 12
Slide 13: SunRice Group Segment Performance
SunRice • had an increase in revenue year-on-year of 10%, but Net Profit Before Tax (NPBT) of -$1.4 million due in large part to the challenging conditions in Pacific markets and foreign exchange pressures. The Group International Rice segment absorbed the bulk of group overheads as its proportion o
Slide 14: Supply source countries of origin
Supply source countries of origin For Financial Year 2021 we are sourcing rice from 12 countries and are forecast to supply more than 1 million paddy tonnes of rice to our customers around the world. 1 million+ paddy tonnes 14
Slide 15: Supply chain changes
Supply chain • In response to the small Riverina crops of the past two seasons, we have totally reinvented our supply chains changes • This has meant teams mobilising more than 60 changes of source for products sold into markets across the Australasian, Pacific, Middle East and Asian regions during
Slide 16: Our 2022 Growth Strategy
Our 2022 Growth Strategy What success Our objectives are to How we’re doing this Our Challenges looks like 1 • • 2 • • • Increasing profits and reducing Adapting our product range to take advantage Securing a sustainable and reliable 3 • • • earnings of changing food global supply • • • volatility t
Slide 17: Our 2022 Growth Strategy in action
Our 2022 Growth Strategy in action Establishing production of Brown Rice Chips in Launch of Low GI Australia Instant Rice cups in China Commencement of a $4.5 million upgrade to Leeton’s microwave rice facilities Continued improvement and scaling of our Lap Vo Mill in Vietnam Completion of construct
Slide 18: Organic growth
Organic • Planned launch of new infant rice-based product range in Australia and China (pictured below left) growth • Continued growth of our expanding rice snack portfolio through broader distribution channels internationally • Development of a new market entry strategy for the Philippines and Our
Slide 19: Strategic growth
Strategic • We are continuing to invest in upgrades to the FeedRite plant that growth CopRice acquired in Wangaratta – while this has been a cost to date, the plant is expected to come online later this year and deliver benefits We are continuing to leverage our strong balance sheet to • And we just
Slide 20: Riverina rice
Riverina rice • 91% reduction in production in the Riverina between 2018 and 2019, from 623,000 paddy tonnes to 54,000 paddy tonnes • The 2020 crop dropped further – at 45,000 paddy tonnes is the new second-smallest on record • SunRice offered record prices of $750 to $1500 per tonne Demonstrated re
Slide 21: Outlook for FY2021
Outlook for • The small Riverina crops harvested in 2019 and 2020, which are currently being processed, are expected to lead to a significant FY2021 under-recovery of the Australian Rice Pool segment in FY2021 • It is anticipated that this will lead to a Paddy Price Supplement being required in FY20
Slide 22: Outlook for FY2021 (continued)
Outlook for • Away from the Riverina, monitoring factors that have the potential to impact revenue and margins in the short-term, including: FY2021 • International rice prices Continued • Fluctuating Australian dollar affecting input costs in a number of segments With such a small volume • Deteriora
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Ricegrowers Limited (SunRice) — Shareholder Meeting (August 2020) on 6ix