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1LEADING ANIMAL NUTRITION INVESTOR UPDATE | 13 March 2025 ASX: RIC INVESTOR UPDATE Australasian AgFood Conference 13 March 2025 Quinton Hildebrand - MD & CEO For personal use only
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2LEADING ANIMAL NUTRITION INVESTOR UPDATE | 13 March 2025 FY23 – FY25 GROWTH PLAN UPDATE For personal use only
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3LEADING ANIMAL NUTRITION INVESTOR UPDATE | 13 March 2025 FY23 – FY25 GROWTH PLAN FY22 FY23 FY24 FY25 Foundation Ridley’s Sustainability Pathway Select Ingredients Optimised Production Effective Solutions Meaningful Partnerships ● NovaqPro® international sales ● Growing with aqua customers ● Companion animal sales ● Premiumisation of rendered products ● Tallow & protein meal trading ● New product offerings ● Regional expansion ● Winning new customers ● Growing with our customers Growth Growth Optimisation Optimisation ● NovaqPro® operating efficiencies ● Energy & waste reduction ● Packing line efficiencies ● Supply chain rationalisation ● Supply chain rationalisation ● Direct sourcing of ingredients ● Optimise raw material use Packaged & Ingredients Segment KEY INITIATIVES EBITDA* Earnings $80m This diagram is for illustrative purposes only. ● Completed and on-going ● Progressing and on-track ● Change in plan Bulk Stockfeeds Segment AS PRESENTED WITH THE FY25 1H RESULTS $88.5m $92.8m * Underlying Optimisation For personal use only
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4LEADING ANIMAL NUTRITION INVESTOR UPDATE | 13 March 2025 FY23 - FY25 GROWTH PLAN: BULK STOCKFEEDS BULK STOCKFEED STRATEGY Leverage the flywheel effects of scale, extend our role in the supply chain and enhance our market leadership position. KEY INITIATIVES - GROWTH • Increase mill utilisation • De-bottleneck sites • New product offerings • Potential acquisitions (subject to strategy, capability and ROFE) KEY INITIATIVES - OPTIMISATION • Supply chain rationalisation • Direct sourcing • Technology to optimise raw material use ACHIEVEMENTS IN PLAN PERIOD TO DATE • 11% CAGR1 in ruminant volumes enabled through two capacity debottlenecking projects and one acquisition • 2% CAGR in monogastric volumes (affected by industry breeder constraints). Growth pipeline enabled through four capacity debottlenecking projects. • Ridley Direct launched and now accounting for 10% of total volumes • Commercialised baled blends for the dairy sector • Regional expansion with the acquisition of the Carrick Feedmill in Tasmania 1 Compound Annual Growth Rate For personal use only
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5LEADING ANIMAL NUTRITION INVESTOR UPDATE | 13 March 2025 FY23 - FY25 GROWTH PLAN: PACKAGED FEED & INGREDIENTS INGREDIENT RECOVERY (FORMERLY RENDERING) STRATEGY Invest in processing capability to produce bespoke, higher value nutrients from existing raw material supply. By “climbing the wall of value” we expect to deliver higher margins for Ridley and our raw material suppliers. ACHIEVEMENTS IN THE PLAN PERIOD TO DATE • Increase in proportion of higher value products from 21% to 30% of sales volume • Oceania Meat Processors (OMP) acquired in 2024 and performing ahead of expectations • New Timaru (NZ) OMP facility under construction providing efficiency and growth capacity • Maroota facility (NSW) operating at capacity to support new contracts. Project underway to optimise processing efficiency • De-bottlenecking projects at Laverton facility (VIC) on track for completion in FY25 “CLIMBING THE WALL OF VALUE” PRODUCT Freeze Dried Products Frozen Block (MDM Products) Protein Concentrate Meals Low Ash Meals Higher Grades of Tallow and Oils Standard Meals, Tallows and Oils Lower Grade Tallow and Oils For personal use only
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6LEADING ANIMAL NUTRITION FY25 1H RESULTS | 20 February 2025 FY23 - FY25 GROWTH PLAN: PACKAGED FEED & INGREDIENTS PACKAGED PRODUCTS DEVELOPMENTS IN THE PLAN PERIOD • Secured third-party supply contracts with pet specialty and grocery customers • Commissioned the new packing facility at Narangba (QLD) – now an integrated (raw materials + production + packing) supplier • Accelerated withdrawal of feed supply to domestic Aquafeed market to free up capacity for more profitable growth in the petfood sector • Refocused team to commercialise NovaqPro® in global prawn market STRATEGY Share in the growth of the tropical aqua sector, and benefit through the use of unique feed ingredients that offer differentiated sustainability solutions (e.g. NovaqPro®, Chicken Protein Concentrate). Continue commercialising NovaqPro® internationally. AQUA NUTRITION (FEED/SECTOR SUPPORT) STRATEGY Extend our rural market share by leveraging our national footprint with distribution partners. Service the broader urban companion animal market with our integrated business platform (ingredients and extrusion capability). For personal use only
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7LEADING ANIMAL NUTRITION INVESTOR UPDATE | 13 March 2025 CAPITAL ALLOCATION FRAMEWORK Ridley expects to operate within the Capital Allocation Framework, however, there may be future circumstances where aspects of the framework are varied in the best interests of the Group. ACHIEVEMENTS IN THE PLAN PERIOD TO DATE* • Strong operating cash conversion • EBITDA up 10% in FY23 and 5% in FY24 • Net Debt / EBITDA range 0.33x - 0.72x, below target of 1-2X • TSR of 22% CAGR - above the long-term target • Maintenance & ESG capital at 56% of Depreciation • Disciplined management of Working Capital • Dividends paid/determined of 21.30cps (65% of NPAT) • Capex ($52m) for organic growth initiatives • Acquisitions ($67m) aligned to strategy and ROFE OPERATING CASH FLOW Maintenance & ESG Capital (~60 – 80% of Depreciation) and Working Capital Strong Balance Sheet Conservative Net Debt / EBITDA, 1X – 2X Dividends 50-70 % of NPAT (before significant items) Organic Growth / Restructuring Prioritised on ROFE M&A Disciplined assessment against strategy, capability and ROFE MAXIMISE SHAREHOLDER VALUE TSR > 15% pa * As at FY25 1H For personal use only
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8LEADING ANIMAL NUTRITION INVESTOR UPDATE | 13 March 2025 SMARTER INGREDIENTS Sourcing high-quality raw materials that are produced with respect to social and planetary boundaries OPTIMISED PRODUCTION Optimising our manufacturing and supply chain processes to reduce our footprint EFFECTIVE SOLUTIONS Developing nutritional solutions that enable farmers to produce more from less MEANINGFUL PARTNERSHIPS Creating safe, healthy, and diverse workplaces that support local communities Purchase soybean products from suppliers committed to offering DCF supply options Reduce CO2-e per tonne of finished feed from energy consumption1 Reduce use of non-recyclable plastics in outgoing packaged product Implement initiatives to reduce waste to landfill Offer lower footprint feed options to customers Enhance biosecurity standards at higher-risk sites Develop and/or invest in methods to reduce GHG in ruminant production Reduce Fish In Fish Out & Feed Fish Inclusion Factor in Ridley Aquafeeds Assist customers to reduce GHG intensity of their products Continue to foster a safe environment for our people Increase the percentage of women in our workforce Embed a formalised learning & development program targeting future fit skills Support engagement in our local communities FOCUS OF OUR 2030 COMMITMENTS The full text of our 2030 Commitments are set out in Ridley's Annual Report FY23 CLIMATE CHANGE Manage climate-related risks and integrate into strategic decision-making *Management assessment as at 31 December 2024 FY24 Target 2030 Commitment 1 KPMG provided limited assurance over Ridley’s FY23 Scope 1 and 2 GHG emissions. A copy of their assurance report is availabl e in the Ridley 2024 Sustainability Report. RIDLEY SUSTAINABILITY 2030 SCORECARD – PROGRESS IN PLAN PERIOD Today* For personal use only
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9LEADING ANIMAL NUTRITION INVESTOR UPDATE | 13 March 2025 PREPARING FOR THE NEXT GROWTH PLAN For personal use only
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10LEADING ANIMAL NUTRITION INVESTOR UPDATE | 13 March 2025 BUSINESS RESET The FY26 - FY28 Growth Plan – Framework2 In the past 3 years Ridley has: • improved asset utilisation and reduced unit costs • shared benefits with customers and increased market share • delivered year on year earnings growth • successfully integrated acquisitions • exercised balance sheet discipline • built our people capability • delivered a Total Shareholder Return CAGR of 22% PAST 3 YEARS CURRENT RESET Continue the focus on cost efficient organic growth and value accretive acquisitions by: • continuing to grow our market share in Bulk Stockfeeds • further developing our Ingredient offering to petfood producers • expanding our contribution from Packaged Products • creating real value from the commercialisation of NovaqPro® • leveraging existing strengths to extend our services in the agricultural sector While continuing to exercise capital discipline and a focus on delivering shareholder value Enabled by strengthened organisational capability and stable leadership over the plan period 3 Restructuring the organisation to: • further streamline the business • exit lower returning operations • better resource strategic priorities • strengthen organizational capability Delivering targeted annual cost savings of $5m EBITDA for FY26 onwards Implementation in FY25 with one off restructuring costs of ~$3.5m1 1 Treated as individually significant items 2 Further detail to be presented to investors in Q4 3 CEO Retention arrangement for next 3 years For personal use only
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11LEADING ANIMAL NUTRITION INVESTOR UPDATE | 13 March 2025 Important notice and disclaimer The material in this presentation is general background information about the activities of Ridley Corporation Limited (ACN 006 708 765) and its related entities (Ridley), current as at the date of this presentation, unless otherwise stated. The content is information given in summary form and does not purport to be complete. It should be read in conjunction with Ridley’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au . Information in this presentation is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. Investors or potential investors should consider these factors when making investment decisions and obtain independent advice appropriate to their circumstances. This presentation contains statements that are, or may be deemed to be, forward-looking statements. Such forward looking statements should not be relied upon as an indication or guarantee of future performance, and they involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Ridley, that may cause actual results to differ materially from such statements. There can be no assurance that actual outcomes will not differ materially from these statements. Amounts in this presentation have been rounded off to the nearest whole number unless otherwise indicated. For personal use only
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12LEADING ANIMAL NUTRITION INVESTOR UPDATE | 13 March 2025 For personal use only