Ricegrowers Ltd. Class B · ASX:SGLLV
Ricegrowers Ltd. Class B — SunRice — Investor Presentation (June 2008)
29 slides from Ricegrowers Ltd. Class B's investor presentation, June 2008
Slide 1: SunRice Capital Raising
SunRice Capital Raising June 2008 1
Slide 2: Introduction
Introduction = a The Rice Food Experts
Slide 3: Introduction
Your Company I Your Future Introduction • Recently received a Prospectus setting out details of Share Issue • This is stage three of SunRice’s Capital Raising Program which aims to maximise the conversion of approx $28.2m of maturing Rice Bonds into permanent capital • In November 2006, we issued th
Slide 4: Agenda
Your Company I Your Future Agenda • Overview of: - Business Performance - Why there is an ongoing need for permanent capital • The mechanics of the offer • Share Trading and Dividends • Conclusion & Question Time 4
Slide 5: Capital Raising Structure & Strategy
Capital Raising Structure & Strategy 5
Slide 6: Our Future
Your Company I Your Future Our Future ¾ Achieving our Vision …The World’s Favourite Rice Food Company 6
Slide 7: Crop 03 to Crop 08
Your Company I Your Future Crop 03 to Crop 08 Paddy Delivered, '000 tons 1,040 529 390 305 166 19 ? 03 04 05 06 07 08 C09 Crop Years 7
Slide 8: Revenue Constant Despite Drought
Your Company I Your Future Consolidated Revenue ($M) Revenue Constant Despite Drought Emphasises Impact of Brands on Our Ability to Trade Profitably $900 $821 $793 1800 $800 $729 $738 $710 1600 $695 $668 $654 $700 $606 1400 $600 1200 000'sTns $500 1000 Sales Revenue $m $m $400 800 Tns 000's $300 600
Slide 9: Complementary Businesses NPBT Continued Strong Performance in CY07
Your Company I Your Future Complementary Businesses NPBT Continued Strong Performance in CY07 CY02 CY03 CY04 CY05 CY06 CY07 $000'S $000'S $000'S $000'S $000'S $000'S 19,382 17,332 16,279 20,707 33,560 32,677 9
Slide 10: Growth Framework
Your Company I Your Future Growth Framework Medium Grain Rice Strategy Foods SunRice The World’s Favourite Rice Food Company Investments • Riviana Long Grain • Coprice • Trukai Strategy • Herto •AGS 10
Slide 11: Broad value proposition of Rice & Rice Foods is critical to future sustainable growth
Your Company I Your Future Broad value proposition of Rice & Rice Foods is critical to future sustainable growth Table Rice Ultra Convenience Meals Snacking 11
Slide 12: Slide 12
Slide 13: SunRice Capital Structure: Background
Your Company I Your Future SunRice Capital Structure: Background • SunRice is a successful business with a strong vision • SunRice needs capital to grow • Growers have funded investments through Compulsory Rice Bonds • Rice Bonds - regarded as a “semi permanent” form of debt capital as they have to
Slide 14: A Permanent Capital Base
Your Company I Your Future A Permanent Capital Base • Maturing Rice Bonds reduces capital in the business • Without this source of capital SunRice is less flexible as there is a greater reliance on external borrowings which may limit the ability to fund investment opportunities • For SunRice to cont
Slide 15: How much semi permanent capital is being redeemed during the next 2 years?
Your Company I Your Future How much semi permanent capital is being redeemed during the next 2 years? • Approximately $28.2m of Rice Bonds will be maturing: » June 08 : $ 8.5m » June 09 : $11.6m » June 10 : $ 8.1m » Total : $ 28.2m 15
Slide 16: SunRice Capital Raising Strategy
Your Company I Your Future SunRice Capital Raising Strategy SunRice looked at 4 options to fund the maturity of Rice Bonds: 1. Profit Retention 2. Share Capital (from existing shareholders) • Share Issue (Voluntary) • Share Issue (Compulsory) • Dividend Reinvestment Plan (DRP) 3. External Equity 4.
Slide 17: Share Offer Mechanics
Share Offer Mechanics Claude Cassar CFO 17
Slide 18: Eligibility
Your Company I Your Future Eligibility • New Shares can only be subscribed for in accordance with the Prospectus • New Shares cannot be issued if that issue results in a breach of maximum Shareholding restrictions in the Constitution • An individual cannot hold a number of B Class Shares that exceed
Slide 19: How to apply for Shares under the Offer and their Allotment
Your Company I Your Future How to apply for Shares under the Offer and their Allotment • Applications will only be accepted via the Application Form supplied with the Prospectus • Detailed instructions on how to complete the form are included • The Completed Application Form must be delivered to the
Slide 20: The Offer
Your Company I Your Future The Offer • Under the Share Issue, New Shares are offered for subscription by: – B Class Shareholders or their Approved Entities i.e. Super Funds. • The issue price is $2.14 per share • Flexible Payment Options: – Cash (cheque, bank draft or EFT) – Rice Bonds (any series)
Slide 21: Payment Option: Rice Bonds
Your Company I Your Future Payment Option: Rice Bonds • Shareholders select the series they wish to apply to the purchase of new shares. – Can be any one series or a combination of series of Rice Bonds • Rice Bonds will be paid pro rata interest up until the date on which New Shares are issued • New
Slide 22: Payment Option: Maturing RMB Equity
Your Company I Your Future Payment Option: Maturing RMB Equity • Shareholders may apply some or all of the RMB Equity Rollover Payment due to be paid in July 2008 • Shares funded via the RMB Equity will be issued as fully paid shares and will be: - entitled to dividends, to be paid for the year ende
Slide 23: Payment Option: Cash or Combination
Your Company I Your Future Payment Option: Cash or Combination • If shareholders do not hold Rice Bonds or RMB Equity, or do not want to use their Bonds or maturing RMB Equity, they can pay for shares in cash (by cheque, bank draft or EFT) - Issued as fully paid - Eligible to receive the dividend fo
Slide 24: Share Trading & Dividends
Share Trading & Dividends = a The Rice Food Experts
Slide 25: Share Trading
Your Company I Your Future Share Trading • SunRice officially listed on the NSX on 18 June 2007 • Provide B Class Shareholders a means of trading their Shares with other Shareholders of the Company (subject to maximum shareholding limits) • To date 410,802 shares have been traded at a value of $728,
Slide 26: The Share Price
Your Company I Your Future The Share Price New Shares offered at an issue price of $2.14 per share. This price takes the following into account: Restricted Market • The Independent Expert's Report, at conversion, pre empted that the market price may not reflect the value of the company due to the re
Slide 27: Dividend
Your Company I Your Future Dividend • Board will annually determine an appropriate dividend rate per share after considering: - the needs of the business and Shareholders as a whole at that time • Ability of the Company to pay dividends depends on: - profitability of Complementary Businesses, - the
Slide 28: Conclusion
Your Company I Your Future Conclusion • This is the third stage of a series of opportunities you will be offered to increase your investment in the SunRice business • Board recognises not all shareholders will be able to participate in this offer • Shareholders who may not be able to participate wil
Slide 29: Questions?
Your Company I Your Future Questions? 29