Investor Presentaiton
Grains: significant adverse impact due to drought and
trade disruptions
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Drought had significant adverse impact on east coast
Australian (ECA) grain production. ECA production of GNC's
five core grains (winter + summer) (5) 7.7mmt (FY18: 16.7mmt).
Global trade tensions disrupted grain trade flows, having
negative EBITDA impact of $65 million.
GrainCorp's port supply chains were reversed to manage ECA
grain deficits and satisfy domestic demand.
Existing rail contracts, with large fixed costs commitments,
expired at the end of FY19 ($15m negative EBITDA impact in
FY19); new rail contracts with greater flexibility and minimal
'take-or-pay', start in FY20.
Progressed Canadian supply chain via Grains Connect Canada,
a 50-50 JV with Zen-Noh Grain Corporation, with fourth site
opened and construction starting on Fraser Grain Terminal at
the Port of Vancouver, B.C. (through 50-50 JV with Parrish &
Heimbecker).
Entered Crop Production Contract - effective for FY20 (see
Slide 21).
$M
FY19
FY18
Revenue
2,665
2.242
EBITDA
(131)
68
EBIT
(190)
5
Capex
32
46
GrainCorp volumes (mmt) (1)
FY19
FY18
Total grain sales
7.1
6.9
ECA grain receivals (2)
3.1
6.8
ECA grain exports (3)
0.3
2.7
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ECA grain trans-shipments
(through GrainCorp ports)
2.3
0.5
ECA non-grain handled (4)
2.9
2.9
mmt = million metric tonnes.
Tonnes received up-country + direct-to-port.
1.
2345
Bulk
container exports
e.g. sand, cement, sugar, woodchips, fertiliser
Average of ABARES' and ACF's 2018-19 ECA production estimates for wheat, barley, canola, chickpeas and sorghum.
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