Graincorp Limited Class A · ASX:GNC
Graincorp Limited Class A — RBS Morgans Conference 2010
19 slides from Graincorp Limited Class A's conference presentation, Sep 15, 2010
Slide 1: RBS Morgans Conference
Alison Watkins – Managing Director and Chief Executive Officer RBS MORGANS CONFERENCE 15th September 2010 15/09/2010 1
Slide 2: What attracted me to GrainCorp...
What attracted me to GrainCorp... GrainCorp One of Australia’s leading agribusinesses butes Competitive advantages orp Attrib Strong, diversified earnings base GrainCo Customer relationships G People 15/09/2010 2
Slide 3: Where we have come from...
Where we have come from... from 1980 1990 2000 2010 1917 – Founded 1998 – Class A shares 2008 – 2009 – Two 1918 – 1st bulk grain elevator listed on ASX Removal of Share Equity 1922 – 1st bulk grain export terminal Foundation Raisings Share 2000 Bulk Handler Grain Elevators Board Victoria 1992 Vicgra
Slide 4: Reflects a history of growth...
Reflects a history of growth... growth • Founded in 1917,, GrainCorp p has ggrown from more than a dozen predecessors… over 93 years to its current structure • 2009 – Acquisition of United Malt Holdings continues growth and diversification • 2010 – Opportunity for GrainCorp and AWB to merge → Didn’t
Slide 5: ... To create a diversified GrainCorp group
… To create a diversified GrainCorp group Storage and More than 280 operational sites in Queensland, NSW & Victoria H dli Handling Serving ~10,000 growers each year and receiving ~9mmt of grain pa 7 bulk export grain elevators on Australia’s east coast Elevating ~4.5 mmt of grain P t Ports
Slide 6: ... With established market share
... With established market share Storage & • Receive R i ~55% off eastern t A Australian t li grain i production d ti Handling • Elevate ~85% 85% of eastern Australian bulk export grain Grain Ports • ~15% share of the containerised grain export market • Buy ~25% 25% of grain received at GrainCorp c
Slide 7: 2007-2010 GrainCorp strategic achievements
2007‐2010 2007 2010 GrainCorp strategic achievements • Acquired GrainCorp Malt adding ~$110m‐$120m $110m $120m EBITDA in 2010 Cost / • Diversified port earnings into non‐grain Revenue • Increased Storage & Handling earnings through efficiencies and other income streams • Centralised customer interfa
Slide 8: Australian grain business – customer focus
Australian grain business – customer focus • Grain q qualityy and supply pp y risk management g Value V l • Supply certainty backed by infrastructure Proposition • Ability to execute grain sales and cargo accumulation quickly • Increase flexibility of grain receival, segregation and out‐turn Demonst
Slide 9: GrainCorp Malt's diversified footprint
GrainCorp Malt Malt’ss diversified footprint • Four operating companies across Canada, the US, UK and Australia • 15 plants – total capacity approx. approx 1.2 1 2 mmt(1) • Blue chip customer base – short and long term supply relationships Australia Barrett Burston Malting Capacity of ~270 ~270,00
Slide 10: Malt – customer focus
Malt – customer focus • Continue to work with customers to provide certainty of supply Certainty of Supply • Short and long‐term supply agreements Customer • Develop and maintain Long term • Maintain M i t i a diverse di Sales S l long term customer Relation- customer base across Diversity relations
Slide 11: Malt – efficiency and risk management
Malt – efficiency and risk management • Invest I in i energy and d water efficiency ffi i Production • Decrease production and manufacturing cost Efficiency • Diversify product to meet current and emerging customer demand for ‘sustainable’ and ‘environmental’ focused consumer products • Hedging stra
Slide 12: Malt – efficiency and sustainability initiatives
Malt – efficiency and sustainability initiatives • Canada Malting Co (CMC) has entered a heat and Bonnybrook Energy Centre ((artist’s impression) p ) reclaimed water sharing agreement with energy provider Waste Water ENMAX at its Calgary malt facility / Heat • CMC will reclaim its effluent water and
Slide 13: Allied Mills – leading Australian flour miller
Allied Mills – leading Australian flour miller • Diversified customers and channels to market • Supported by a national distribution network of 10 flour / mixing facilities • More than just a flour miller.... • Frozen Donut facility at Yatala, QLD Allied Mills operates Australia’s largest flour mill
Slide 14: Allied Mills – customer, customer value add and efficiency
Allied Mills – customer, customer value add and efficiency • Allied Mills flour business units – milling and retail food service • Customer base includes food manufacturers, in store bakery and retail, Customer franchisers, foodservice and bakery distributors Focus • Aim is to become the leading nat
Slide 15: Summary of GrainCorp's current focus
Summary of GrainCorp’s GrainCorp s current focus → Demonstrate value proposition more clearly to domestic and export customers Grain → Deliver services more effectively → Build domestic and international grain trading market share → Continue to diversify port related earnings → Finalise GrainCorp Ma
Slide 16: 2010 update – guidance unchanged
2010 update – guidance unchanged • Estimated receivals 7.5 7 5‐8 8.5 5 mmt • Estimated total export elevation 3.0 mmt • Estimated Malt sales volume 0.92 – 0.95 mmt (10 ½ months) • EBITDA range $190‐210 M – Includes I l d Malt M lt $110‐120 $110 120 M • NPAT range g $$75‐90 M 15/09/2010 16
Slide 17: 2010 – 2011 crop outlook
2010 – 2011 crop outlook Grain • In the eastern states, Australian Crop Forecasters(1) and ABARE(2) predicting an above average 2010 – 2011 winter crop of over 20 mmt • Global wheat prices have risen 30‐40% 30 40% in the last 6 weeks largely due to lower production volumes in the northern hemisphere
Slide 18: Thank you Q&A
GrainCorp THANK YOU Q&A 15/09/2010 18
Slide 19: Disclaimer
Disclaimer This presentation includes both information that is historical in character and information that consists of forward looking statements. Forward looking statements are not based on historical facts, but are based on current expectations of future results or events. The forward looking sta