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R IDLEY C ORPORATION

R IDLEY C ORPORATION. H ALF Y EAR R ESULTS P RESENTATION 31 D ECEMBER 2009. 23 February 2010. A GENDA. I NTRODUCTION. A GRIPRODUCTS. C HEETHAM S ALT. P ROPERTY. F INANCIALS. O UTLOOK. R IDLEY T RANSFORMED. Sale of Ridley Inc. - clean, lowly geared balance sheet

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R IDLEY C ORPORATION

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  1. RIDLEY CORPORATION HALF YEAR RESULTS PRESENTATION 31 DECEMBER 2009 23 February 2010

  2. AGENDA INTRODUCTION AGRIPRODUCTS CHEETHAM SALT PROPERTY FINANCIALS OUTLOOK

  3. RIDLEY TRANSFORMED • Sale of Ridley Inc. - clean, lowly geared balance sheet • Cheetham capital upgrades nearing completion – uplift in earnings in FY11 • Record Ridley AgriProducts result for first half – FY10 follows record result for FY09 • Unlocking unrealised land value underway – long term journey • No significant items – first time for 5 years • Further growth potential to be unlocked

  4. FINANCIAL HIGHLIGHTS • Group NPAT of $14.9m • $12.6m or 555% increase over same period last year • No significant items for first time in five years • Record EBIT six month result for Agriproducts of $13.7m • Predictable, stable result for Cheetham Salt • Lower finance expense reflects sale of Ridley Inc. • Interim dividend of 3.5c per share maintained 4

  5. RIDLEY AGRIPRODUCTS RESULTS PRESENTATION

  6. HIGHLIGHTS • 1H FY10 highlights: • Poultry: Inghams contract, plus reopening of Clifton Mill • Aqua: Inverell mill opening,Tassal, Huon and Clean Seas contracts • Dairy: down $6.0m on an annualised basis • Supplements: pushing hard for break even result (losses of $2.5m in FY09) • Annualised cost savings of $5m delivered ($2.0m further savings from FY09) • Growth over the next 3 years from: • Step ups in poultry and aquafeed contracts • Increased focus on packaged products • FY09 normalised base EBIT of $26.4m targeted growth to: • $28.0m by June 2010

  7. MARKET SEGMENTS • Poultry: growth from Inghams relationship, growth of second tier independent broiler processors, market growth of chicken consumption and growth in niche turkey, layer and duck market sectors • Aquafeed: new contracts with Tassal, Huon and Clean Seas, market growth, and growth in market share • Packaged Products: reduction in Dairy volumes for packaged products offset by strong margin management • Dairy: looking for second half improvement from slow recovery in global dairy prices • Pig: looking to secure new business to replace expected loss of a major customer in FY11 arising from backward integration • Supplements: targeting a break even result from losses of $2.5m in FY09 • Beef & Sheep: rainfall in SE Australia affected demand in first half; outlook for continued low volume and contribution to the business overall.

  8. FINANCIAL SUMMARY • Fall in sales reflects downturn in Dairy • Record six monthly EBIT result of $13.7m • Working capital decrease due to lower grain prices and inventory and debtors management • Major capex focus on implementation of new ERP plus investment in Aquafeed expansion at Inverell of $1.2m • Cash flow conversion of 119%

  9. CHEETHAM SALT RESULTS PRESENTATION

  10. HIGHLIGHTS • 1H FY10 highlights: • Port Alma salt harvest returns to normal cycle • Bajool refinery upgrade fine tuning to be completed by March 2010 • Indonesian refinery commenced operating in February 2010 • Growth over the next 3 years from: • Underlying base business and JV growth in line with GDP • Realising the benefits from capital improvements • Manufacturing & supply chain efficiency and effectiveness improvements • Efficiency benefits to flow from ERP implementation • FY09 normalised base EBIT of $17.7m targeted growth to: • $18.0m by June 2010

  11. MARKET SEGMENTS • Salt demand: typically grows in line with population growth and GDP • Soda Ash: influenced by Penrice demand • Chemical: influenced by chlor-alkali demand which is expected to be up with one more bulk shipment • Food: stable with reduced use of salt in food being offset by population growth and a switch to iodised salt in baking • Pool: growing with increased demand from both new pools as well as preference for salt over chlorine • Hide: influenced by lower slaughter numbers • Stockfeed: influenced by pasture growing conditions, particularly in Queensland • Exports: 7% increase in volumes to New Zealand JVs and Japan • Indonesia: stable but expect to grow with new refinery

  12. FINANCIAL SUMMARY • Stable EBIT result of $9.5m before JV’s, up 2% on same period in prior year but impacted by $1.5m of start up costs of Bajool refinery • Bajool refinery upgrade and new Indonesia refinery the bulk of the development capex activity • $2.5m proceeds of Corio property asset sale • JV dividends reduced for the half year to fund major JV upgrade from JV operational cash flows; normal flows to resume in 2H FY10 • Cash flow conversion ratio of 83% • Funds employed reflects 30 June 2009 reduction in salt field carrying values

  13. PROPERTY DRY CREEK 316ha located 12kms from Adelaide CBD LARA 912ha site at Lara adjacent to Avalon airport

  14. DRY CREEK • Background • Key asset is the potential Dry Creek redevelopment, 12kms from Adelaide CBD. • Site area of 980ha of which Ridley owns 316ha with the balance owned by the South Australian Government’s Land Management Corporation (LMC) • Feasibility study for the potential redevelopment of the salt fields for residential and/or mixed-use development continuing with partner Delfin Lend Lease • State Government 30 year plan for Greater Adelaide, within which the Dry Creek salt field has been nominated as a “key urban expansion” site. • Status • Feasibility study extended to June 2010 • Fine tuning of Project Master Plan • Technical studies into the relocation of the salt fields continue • Evaluation of commercial options to continue over CY2010

  15. FINANCIALS PROFIT AND LOSS NONTRADINGITEMS BALANCE SHEET WORKING CAPITAL CAPITAL EXPENDITURE CASHFLOW DEBT BRIDGE FINANCIAL RATIOS

  16. PROFITAND LOSS • Corporate cost savings realised of $1.9m over the same prior year period after additional $0.5m FY10 spend on property development • Net finance cost reflects full six months of current debt levels • 25% effective tax rate arises from ongoing permanent differences from salt JV distributions, R&D tax concession and other perennial deductions • No significant items • No dilution from equity issues • EPS of 4.9c • Unfranked dividend of 3.5 cps and annual dividend of 7c per share maintained

  17. BALANCE SHEET • Reduction in Total Current Assets reflecting the significant working capital reduction • PPE (and net assets) decrease reflects revaluations booked at 30 June year end. • Investments in the salt joint ventures have increased due to withholding of cash dividends to finance NZ development capex • Increase in intangibles associated with the implementation of the new ERP platform • Reduction in borrowings from cash flow, with gross debt of $87.1m and net debt $78.4m as at 31 December 2009

  18. WORKING CAPITAL • Reduction in inventory a combination of lower input prices, less sites and tighter control over inventory levels • Reduction in trade debtors due to lower Dairy volumes and grain prices, and tighter control over contract payment terms and debt recovery practices • Tax receivable is prior year refund receivable 2H FY10 • Reduction in tax liability following Aug 2009 payment of $7.9m Ridley Inc. Canadian tax liability • Derivatives comprise fair value of interest rate positions required under banking covenants

  19. CAPITAL EXPENDITURE • $5.6m of development capital expenditures in Cheetham comprising mostly two major new refineries to come fully on stream in 2H FY10 • $3.6m of ERP implementation expenditures in AgriProducts continuing throughout 2H FY10 • Other AgriProducts development capex includes reopening of Clifton Mill to accommodate additional Inghams volumes • Maintenance Capital Expenditures of $2.4m compare against depreciation of $5.5m • $1.2m investment in new Aquafeed plant at Inverell

  20. CASH FLOW • Operating Cashflow of $21.5m, representing strong EBITDA to cash conversion of 86% before Joint Ventures • Capex of $15.0m for the six months to significantly reduce in second half with completion of Inverell, Clifton, Bajool & Indonesian development projects • Joint Venture dividend reduced for the half by cash dividends withheld to fund development capex in NZ; 100% cash distribution of NPAT share to be resumed in second half • Tax paid includes final Ridley Inc. legacy payment of $7.9m to Canadian tax authorities • Normalised cash flow before dividends excluding Canadian tax payment is $9.4m, up $3.7m or 65% 20

  21. DEBT BRIDGE JUNTO DEC 2009 Note: Closing debt at 31 December 2009 of $78.4m includes both current and non-current borrowings

  22. FINANCIAL RATIOS • Gearing at a low 27.9% • Dividend of 3.5c or $10.8m paid fully in cash from retained profits with DRP indefinitely suspended • 8.3 ratio of EBITDA to net interest up by 5.0 from same period in prior year; EBIT to net interest ratio up by 4.2 to 6.7 times. • 4.1 cents per share increase in EPS, an increase of 512% • Term loan facilities contracted through to December 2011 * Before impairments and sale of Ridley Inc. in prior period

  23. OUTLOOK • Guidance for FY10 is an NPAT range of $28m to $30m • Forecast earnings growth in FY11 from new contracts, Aquafeed expansion, new salt refinery efficiencies, recovery in Dairy sector, with partial offset by pig volume loss and ERP delivery risk • Strategic initiatives now focussed on • Delivering the newly contracted Poultry and Aquafeed volumes • Increasing the geographic coverage of packaged products in Agriproducts • Delivering the efficiency and effectiveness benefits from the Cheetham capital upgrades • Continuing to develop the commercialisation options for the Dry Creek and other property development opportunities throughout 2010

  24. RIDLEY TRANSFORMATION Sale Includes results of Ridley Inc. Excludes Ridley Inc.. Business Transformation #FY09 result excludes loss on sale of Ridley Inc. and any Ridley Inc. result 24

  25. QUESTIONS • AND • ANSWERS

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