xxxxxx xxxxx February 6, 2014 Rice Industry Leaders Forum Rob Gordon - CEO

2 August 2017

In 2012, we pursued a Strategy that moved from marketing the Australian rice crop to servicing market demand for branded rice products.

The 2012 Strategy

Benefits of this Strategy

1 Move from bulk to branded

  • Less volatile pricing

  • Higher profits and returns

2 Premiumisation

  • Less volatile pricing

  • Highly profitable

  • Increase shares in flat or competitive consumer markets

3 Sales Diversification

  • Built a new sales pillar in the Middle East

  • Invested in CopRice and Riviana

  • Built a profitable traded rice portfolio

4 Supply Diversification

  • Built experience in offshore agronomics and supply chains

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This translated into a very healthy financial performance, marked by strong sales and profit growth in addition to significant increases in shareholder returns

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What's been a challenge?

  1. Ensuring an attractive return for our Riverina

    rice grower

  2. Over reliance on 1-2 key

    markets

  3. Volatility of the AU supply

Medium Grain commands less of a premium

More challenging conditions for the Riverina rice grower

Sovereign risk in some markets

+

Reduced

consumer affordability in some markets

+

Drop in CREED

Increased competition in Medium Grain

+

Global Medium

Grain stocks

The increase in competitive crops

High water costs

So how do we adapt to this changed world in the next five years?

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