RIDLEY IDLEY Resilient operating result of $45.8m EBIT in light of - PowerPoint PPT Presentation

R IDLEY C ORPORATION L IMITED INVESTOR PRESENTATION – 2017 FINANCIAL YEAR 1

RIDLEY IDLEY  Resilient operating result of $45.8m EBIT in light of Dairy, Aquafeed and energy headwinds.  World class pig and poultry mill commissioned at Lara, Victoria.  Worldwide licence secured for Novacq TM for all non-crustacean & non-human species, with previously unlicensed crustacean markets also secured.  Minimum five year strategic alliance formed with CSIRO for further Novacq TM development.  Long term lease secured at Chanthaburi, Thailand for overseas production of Novacq TM .  Commercial dispute settlement reached with Huon for full net debt recovery.  Commitment to aquafeed restructure comprising new Tasmanian aquafeed mill, divestment of interest in CME, and major capital works at Narangba.  Completion of Wasleys feedmill rebuild from fire devastation.  Increase in final dividend from 2.50 to 2.75cps, 100% franked. RIDLEY | INVESTOR PRESENTATION | 2017 FINANCIAL YEAR 2

FINANC NCIAL HI HIGH GHLIGH GHTS TS  Full year Ridley operating result of Consolidated result $45.8m achieved in difficult - in AUD$million FY17 FY16 FY15 FY14 ($m) trading conditions in key sectors of Dairy and Aquafeed. EBIT – Ridley  Last three year Ridley operating, operations before non- 45.8 53.7 50.4 40.1 non-recurring, EBIT average of recurring items $50.0m. Property costs (1.0) (2.0) (2.7) (2.2)  Property - FY17 excludes Dry Creek divested in FY16. Corporate Costs (9.9) (9.6) (8.9) (8.6)  Corporate costs - similar to prior Pre-tax Operating & year despite a $0.7m increase in 34.9 42.1 38.8 29.3 property result legal fees to recover Huon debt (up from prior year’s $0.4m).  Pre-tax operating & property result of $34.9m. The Directors believe that the presentation of the unaudited non-IFRS financial information on slides 3, 4, 16 and 17 is useful for shareholders as it reflects the significant movements in operations and cash flows of the business. 3

FINANC NCIAL HI HIGH GHLIGH GHTS TS Consolidated result  Net finance expense - consistent with FY17 FY16 FY15 FY14 - in $m prior year.  $5.3m decrease in tax payable reflects Operating result 34.9 42.1 38.8 29.3 prima facie tax on lower operating result and prior year overprovision, Net Finance Expense (5.0) (5.4) (5.0) (5.4) with higher level of ongoing R&D Tax Tax Expense (7.3) (12.6) (9.7) (4.4) concession claims.  Other non-recurring items comprise: Net operating profit before non-recurring 22.6 24.1 24.1 19.1  $0.7m pre-tax profit on disposal of items Joint Venture interest in CME Discontinued Dry  $3.6m of Wasleys bushfire insurance - 0.4 (4.6) (2.9) Creek Operation - post claim proceeds expended on capital tax replenishment Other non-recurring  3.2 3.1 1.7 1.0 ($1.1m) of combined tax effect on the items - post tax above  Net profit 25.8 27.6 21.2 17.6 Net profit for the year of $25.8m, despite headwinds in two major operating sectors. 4

OPER OPERATIONS TIONS RIDLEY | INVESTOR PRESENTATION | 2017 FINANCIAL YEAR 5

“Our Mission is to improve the cost of feed to yield ratio for our customers” Compliance & Safety TRFR/LTIFR/MTI - Medically Treated Injuries of 4 for the year is an all time Ridley low Livestock Yield / Performance PPC # Lara Feedmill Improved diets Ridley’s Mission is to Nutrition - Quality - maximise sector profitability – diet formulation, Innovation - DIFOTIS, a process of continuous better feed develop new delivery in full, conversion improvement of our value adding on time, in spec rates (FCR) raw materials, customers’ delta between the including by- cost of our feed and the products Logistics - Merchandising - e.g. Novacq TM : performance of their animals backloading, bulk, off farm, improve output proximity to - in terms of yields of milk, expertise, and reduce cost grain, 1.9mt meat, eggs & well-being market presence in/outbound Cost of Lara Feedmill Bulk soybean Yamba innovation 6 Ridley Feed # Poultry Protein Concentrate

FINANC NCIAL HI HIGH GHLIGH GHTS TS  EBIT result for agribusiness of $45.8m - down on prior year’s record $53.7m but positive performance given Dairy and Aquafeed sector headwinds and no dry season for Supplements blocks.  Poultry - sales volumes grew 111kt (10.6%) for the year to 1,155kt on the back of continuing population & white meat consumption growth, to reach 60% of total Ridley sales volumes for the first time.  Aquafeed - solid performance on kingfish, barramundi and prawn volumes, despite outbreak of White Spot Disease in Logan River region. Cessation of Huon trading activity has impacted salmon volumes, the replacement of which is a longer term prospect. Ridley has affirmed its support to Tasmanian salmon industry growth through its commitment to a new feedmill in Tasmania. The Novacq TM novel prawn feed ingredient project is still in development phase with no profit and loss impact for the year.  Dairy - a positive result given the depressed industry sentiment at the start of the year but well short of last year’s record sector earnings. The year finished positively, with the prospect of improved milk prices and rebuilding of dairy herds.  Rendering - competition to secure red meat raw material has been intense due to the low level of abattoir throughput, thereby raising offal prices and squeezing margins. White meat and fish raw material volumes have been maintained to generate an overall slight earnings improvement across both Rendering sites.  Packaged Products - continued upward trend in earnings arising from improvements in all aspects of customer value & service delivery.  Supplements - highlighted separately this year due to the absence of a northern Australia dry season which decimated the demand for dry season supplementary blocks.  Energy - significant increases in energy costs have been experienced across all sites and partially absorbed in FY17, with further rises predicted for the years ahead. 7

SECTOR SEC OR VOL OLUM UME E HI HIST STOR ORY Sector FY17 FY16 FY15 FY14 FY13 FY12 FY11 FY10 Long term (kt) (kt) (kt) (kt) (kt) (kt) (kt) (kt) Outlook Poultry 1,155 1,044 1,013 1,019 872 933 900 764 Aqua-feed 35 54 65 50 42 47 50 47 Packaged 75 78 83 90 90 85 84 90 Dairy 226 284 291 275 251 260 236 215 Pig 193 177 168 178 184 197 224 325 Supplements 11 20 15 21 22 22 22 30 Beef & Sheep 32 41 36 58 46 26 24 35 Rendering 159 193 184 171 93 34 9 - Other 46 44 47 32 35 46 44 64 Total Tonnes 1,932 1,935 1,902 1,894 1,635 1,650 1,593 1,570 8

NO NOVACQ TM TM RIDLEY | INVESTOR PRESENTATION | 2017 FINANCIAL YEAR 9

TM – OUR COMPE NOVACQ TM MPETI TITI TIVE E ADVANTAGE CSIRO Licence 37% improvement in prawn survival rates Replacement of fish Crustacean – All the achieved in Mackay trials with Novacq TM meal protein source with Novacq TM diets compared to control ponds. world secured in reduces nitrogen FY17 except for output, enabling China and Vietnam. For all other non- higher stocking Livestock Yield human species – all densities within / Performance existing nitrogen the world secured in output constraints. FY17. CSIRO Alliance Enhanced To prise open the jaws of Disease value through Optimum resistance to bio-test assays, efficacy & diet viral/bacterial Increased Brood stock / better inclusion rates stocking attacks larvae feeding Improved understanding Reduction in density increasing spectrum and yield harvest cycle through growth survival rates from / larger reduction in mechanisms, e.g. Up to 40% of annual different animals / risk tropical shrimp determining the nitrogen Aeration and carbon production is lost to bioactive(s), mitigation levels sources disease (>US$3bn). filtration and finding Farmed shrimp Dewatering & applications in production expected to drying process grow 50-60% through to species other # 2030. than human & crustacean. Cost of 10 # World Bank (2013) Fish to 2030 Ridley Feed

TM - AUST NO NOVACQ TM USTRALIA  Yamba - positive progress made during the year on all aspects of production, harvesting, drying and dewatering to increase yield and reduce cost. Production tonnes from the site have been used in trial diets and exported to Thailand for inclusion in trial diets under local conditions.  Licence - existing licence with CSIRO extended during the year to secure:  worldwide rights for all non-human and non-crustacean species applications; and  rest of world application for crustacean (excluding China and Vietnam already licensed).  CSIRO research alliance - five year alliance executed to collaboratively research other applications beyond crustacean. Terms include:  $1m per annum Ridley cash contribution dedicated for research, with Ridley option to extend up to 5 years.  Management Committee of equal representation to approve and manage the annual research program, with initial focus on:  establishing rapid bio-test assays to demonstrate Novacq TM activity;  understanding the spectrum of the activity and mechanisms for prawn growth;  determining the bioactive(s) within Novacq TM ; and  developing characterisation profile to identify those species most likely to generate 11 positive impact from Novacq TM inclusion.