ANNUAL GENERAL MEETING 2019 ROB GORDON, CHIEF EXECUTIVE OFFICER - PDF document

ANNUAL GENERAL MEETING 2019 ROB GORDON, CHIEF EXECUTIVE OFFICER SunRice (ASX:SGL/SGLLV) 1 Thank you Laurie and good morning to everyone. It is a great pleasure to be here with all of you today for SunRice’s 2019 AGM – on behalf the Board and management team, we appreciate your attendance at today’s meeting. Today’s meeting is the first general meeting since we listing on the ASX in April of this year, and I am looking forward to providing an update today on the company, covering the year just passed, as well as what lays ahead for the business.

IMPORTANT NOTICE AND DISCLAIMER This presentation is for information purposes only. Any person who receives this presentation must seek This presentation should be read in conjunction with This information is given in summary form and does advice on and observe any such restrictions. other publicly available material. Further information not purport to be complete. It should be read in including historical results and a description of the conjunction with the most recent financial report and activities of SunRice is available on our website: To the maximum extent permitted by law, SunRice, its the Information Memorandum. The content of this https://investors.sunrice.com.au/investors/. related corporations, directors, officers, employees or presentation is provided as at the date of this agents disclaim a liability (including, without presentation (unless otherwise stated). Reliance limitation, any liability arising from fault, negligence About SunRice’s structure should not be placed on information or opinions or negligent misstatement and whether that liability The structure of SunRice contains non-standard contained in this presentation as advice to investors is direct, indirect or consequential) for any loss elements including its dual class share structure or potential investors and, subject to any legal arising from this presentation or reliance on anything comprising A Class Shares and B Class Shares. obligation to do so Ricegrowers Limited (trading as contained in or omitted from it or otherwise arising in SunRice ) does not have any obligation to correct or connection with this (whether foreseeable or not). A Class Shares confer on their holders the right to update content. vote at general meetings but no right to dividends. A All amounts are in Australian Dollars, unless Class Shares are not quoted on ASX and may only be This presentation does not purport to contain all otherwise stated. Certain statements in this held by Active Growers. The right to vote is based on information necessary to an investment decision, is presentation (including those that contain terms such one member, one vote and no person may hold more not intended as investment or financial advice, is not as "believe", "estimate", "plan", "project", than 5 A Class Shares. In practical terms the voting a recommendation, offer or invitation by any person "target”, "anticipate", "expect", "intend", "likely", rights held by A Class Shareholders give those or to any person to sell or purchase securities in "may", "will", "could" or "should") relate to the shareholders the right to control the election of SunRice in any jurisdiction, and must not be relied future, including forward looking statements relating directors and any changes to SunRice’s constitution. upon as such. Any decision to buy or sell securities or to SunRice’s financial position and strategy. Whilst other products should be made only after seeking the forward-looking statements are based on current B Class Shares are quoted on ASX and confer on their appropriate financial advice. views, expectations and beliefs as at the date they holders the right to receive dividends, as determined are expressed, these forward looking statements by the directors from time to time. Holders of B Class This presentation is of a general nature and does not involve known and unknown risks, uncertainties, Shares do not have the right to vote at general take into consideration the investment objectives, assumptions and other important factors that could meetings of SunRice and may only vote on proposals financial situation or particular needs of any cause the actual results, performance or involving a variation to their class rights or if required particular investor. achievements of SunRice to be materially different for the purposes of the ASX Listing Rules. This means from the future results, performance or achievements B Class Shareholders have no right to vote on the expressed or implied by such statements. No Any investment decision should be made solely on election of directors of SunRice. No person may hold representation or warranty, express or implied, is the basis of your own enquiries. Before making an more than 10% of the total number of B Class Shares made as to the fairness, accuracy, reliability, investment in SunRice, you should consider whether on issue. completeness or correctness of information such an investment is appropriate to your particular contained in this presentation, including the investment objectives, financial situation or needs For more details of the non-standard elements of accuracy, likelihood of achievement or and obtain independent advice from a qualified SunRice’s structure see: reasonableness, fairness, accuracy, reliability, financial adviser. https://corporate.sunrice.com.au/investors/. completeness or correctness of any forward-looking statements. There can be no assurance or guarantee The distribution of this presentation including in that these forward-looking statements will be jurisdictions outside Australia, may be restricted realised. by law. 2 Please note our standard disclaimer notice on screen, which includes the non-standard elements of SunRice’s share structure. Today’s presentation has already been lodged with the ASX and on our website if you’d like to read this in detail later.

AGENDA FY19 results: delivering through the cycle SunRice Group segment performance Additional highlights for the year The Riverina landscape Australian supply and global sourcing Maximising SunRice’s competitive advantages Share price performance and liquidity Looking ahead at FY20 Questions 3 We have a full agenda today covering: • Our recent Financial Results for 2019; • An overview of how individual segments of the Group performed during the year; • Broader highlights for the business; • The current Riverina landscape, supply, sourcing and demand; • An update on our 2022 Growth Strategy; • Some commentary on issues affecting current liquidity and share price; and, finally, • A look ahead at Financial Year 20. Without further ado, let’s get started.

FY19 RESULTS SNAPSHOT FY19 has been a significant year for SunRice with NPAT delivered in line with guidance, despite FX challenges – key highlights for the business include: nue $1.2 .2 billion 1.3% (year-on Consolidate lidated d reve venue on on-year) T) $32.8 million 27.3% (year-on-year) Net Profit it after Tax (NPA PAT) nd 33 cents (per B Class share) No Change (year-on-year) Fully franked Fu d divide dend ce $411.19 per tonne (Reiziq) 8.6% (year-on-year) Final l C18 full-ye year ar paddy dy price Earnings per share 54.5 cents (per B Class share) 28.2% (year-on-year) Reiziq is a medium grain rice variety developed by SunRice to be grown in the temperate climate of the Riverina of New South Wales. Crop or C means a Riverina Rice crop identified by the Year End Gearing Return on Capital 19.1% 9.9% calendar year in which the crop is harvested. For (net debt / (net debt + equity)) Employed - ROCE example, the 2018 Crop (C18) refers to the Riverina Rice harvested during April/May 2018. This 2018 Crop will be accounted for by SunRice in its financial year from 1 May 2018 to 30 April 2019 (FY19). 4 Here we have a snapshot of our Full Year 2019 Financial Results which we released to the market back in June. Before getting into specific commentary, let me just say that our management team and Board are very proud of the result which SunRice has achieved this year in a very challenging environment, and believe we have significantly strengthened the company’s positioning over the last 12 months as an international and diversified ‘Fast Moving Consumer Goods’ business. While we have experienced some challenges in different parts of the Group – predominantly in relation to foreign exchange exposure – our model is both unique and resilient, and as we have shown this year, able to deliver through the cycle. Consolidated revenue for the Group was $1.2 billion, up 1.3% on the prior year, and Net Profit After Tax was $32.8 million, which was slightly above the midpoint of guidance, although a 27% decrease compared to the previous year. We declared a fully franked dividend of 33 cents per B Class share, the same as last year, and had earnings per share of 54.5 cents, which was down 28%. Year-end gearing was 19%, and we had a 9.9% return on capital employed.