Ricegrowers Ltd. Class B · ASX:SGLLV
Ricegrowers Ltd. Class B — Shareholder Meeting (August 2017)
17 slides from Ricegrowers Ltd. Class B's shareholder meeting presentation, Aug 4, 2017
Slide 1: SunRice Report - RGA Annual General Meeting
SunRice Report RGA Annual General Meeting Laurie Arthur – Chairman 4 August 2017
Slide 2: Agenda
Agenda • FY17 Performance • Refreshed SunRice Strategy • FY18 & Global Market Outlook • Capital Restructure Update • Questions 2
Slide 3: FY17: Resilience in a Challenging Market
FY17: Resilience in a Challenging Market REVENUE $1.11 12% billion decrease NET PROFIT AFTER TAX $34.2 34% million decrease DIVIDEND PER B CLASS SHARE 33.0 Steady cents Represented payout ratio of 54% PADDY PRICE $415.00 3% Medium Grain (Reiziq) increase 3
Slide 4: Domestic & Global Factors Impacted the Results
Domestic & Global Factors Impacted the Results • Results driven by a combination of several external factors: - lower Riverina rice crop - lower medium grain rice prices - negative macroeconomic trends - weak trading for CopRice & Riviana • In line with smaller C16 crop, Rice Pool revenue was down 4
Slide 5: Complementary & Subsidiary Business Performance
Complementary & Subsidiary Business Performance • SunFoods: 61% revenue uplift and returned to profitability (as predicted): has reconfigured operations and returned to supplying SunRice’s global markets • Riviana: NPBT declined by $4.7 million. External factors impacting volumes included, mining se
Slide 6: Global Rice Sourcing Intensified during FY17
Global Rice Sourcing Intensified during FY17 • Australian rice harvest in C16 declined to 244,000 tonnes: lowest since 2010. • In FY17, secured a total of 500,000 paddy tonnes from international sources (300,000 tonnes in FY16) - successfully filled the supply shortfall caused by lower C16 Riverina
Slide 7: Australian Rice Production vs Demand
Australian Rice Production vs Demand Australian Rice Crop Size ‘000 Tonnes Demand 1,161 1,038 963 829 800 800 690 Drought period 244 205 167 66 19 06 07 08 09 10 11 12 13 14 15 16 17 Crop Year 7
Slide 8: 2012 Five-year Strategy: Improved Results & Resilience
2012 Five-year Strategy: Improved Results & Resilience 1.40 NSV ($’Bn) NPAT ($’m) 55 52.00 1.27 49.20 1.30 1.25 50 45 1.20 1.15 40 36.00 1.07 35 1.10 1.11 34.20 1.00 30 33.50 1.00 25 22.70 20 0.90 APR 12 APR 13 APR 14 APR 15 APR 16 APR 17 APR 12 APR 13 APR 14 APR 15 APR 16 APR 17 5.00 5-Year Share P
Slide 9: Major Risk from Other Irrigated Crops
Major Risk from Other Irrigated Crops Horticulture (Almonds) • 94% of almonds are grown in the connected MDB • Almonds dominate the current horticultural expansion (growth slowing since 2006) • Forecast maximum planting area of 40,000ha • Nearly all new plantings are targeting general security alloc
Slide 10: SunRice's 5R Proposition to Promote Rice Growing
SunRice’s 5R Proposition to Promote Rice Growing • Returns: maximise reliable returns for rice growers through: - Short season varieties to increase cropping frequency and improve whole farm returns - Superior Farming Systems to increase returns/Ml from expanding options - Use field officers to assi
Slide 11: Refreshed Strategic Focus
Refreshed Strategic Focus ENSURE THE RIVERINA GROWER FIND NEW PREMIUM MARKETS CAN COMPETE AGAINST COTTON ACROSS THE GLOBE • We will promote fewer but higher-earning • Sell Australian rice to markets that will varietals pay a premium for clean and green rice: - Focus on Premium-market Medium Grain, t
Slide 12: FY18 (C17) Outlook
FY18 (C17) Outlook • FY17 was characterised by a challenging trading environment, but signals indicate the global rice market is moving beyond the bottom of the cycle and more positive conditions are anticipated in FY18 • Dairy industry turnaround has commenced with improving farm gate prices, which
Slide 13: World Market – Prices Recovering
World Market – Prices Recovering US$/tonne 650 California Medium Grain Paddy Price (since Sept 2014) • Gap between current California 600 $602 2015 Crop USA 2016 Crop USA 2017 Crop USA Source: SunRice crop and lower than expected 550 plantings, and late harvest next $518 500 season is causing short
Slide 14: C17 Price Range and Payments Guidance
C17 Price Range and Payments Guidance • Price range for C17 has been updated: Medium Grain (Reiziq) range: $320-360/tonne (previously $300-320/tonne) - Positive outlook for global markets - SunRice performance since the start of the 2018 financial year has been strong - Important to ensure growers c
Slide 15: Capital Restructure Update
Capital Restructure Update • External factors impacting the Capital Restructure expected to continue - potential implementation of restrictive import quotas by PNG Government; - issues related to one of SunRice’s subsidiary joint venture partners - developing negative sentiment towards particular ca
Slide 16: Summary
Summary • Despite challenging market conditions during FY17, SunRice demonstrated commercial resilience and is in a strong position moving forward • Signals indicate global rice market is moving beyond the bottom of the cycle and more positive conditions (and prices) are anticipated in FY18 - C17 MG
Slide 17: Questions
Questions 17
Ricegrowers Limited (SunRice) — Shareholder Meeting (August 2017) on 6ix