Slide 1: 2010 Full Year Results Presentation
For personal use only 15 November 2010 Company Announcements Office Australian Securities Exchange 2010 Full Year Results Presentation Attached is a presentation to be made at the briefing on Elders Limited’s results for the full year ended 30 September 2010 to be held at 8.30am Eastern Summer Time
Slide 2: FY2010 Financial Results for the 12 months to 30 September 2010
For personal use only FY2010 Financial Results for the 12 months to 30 September 2010 15 November 2010
Slide 3: Overview and Financial Results
For personal use only 2010 FINANCIAL RESULTS Overview and Financial Results 2
Slide 4: Executive Summary
Executive Summary Mixed earnings results results, but improved cash generation and gearing reduced significantly For personal use only Sales and EBIT declines year on year, however, results in line with June 22 guidance EBIT declined from $37.0m in 2009 to $34.0m in 2010, driven by mixed results
Slide 5: Group Financial Snapshot
Group Financial Snapshot Interest reduction drives improvement in underlying NPAT For personal use only 2010 2009 12 months to 30 September: Mvt ($m) ($m) Sales revenue from continuing operations 2 069 1 2,069.1 2 341 2 2,341.2 - 12% Underlying EBIT 34.0 37.0 - 8% Net underlying interest (30.0) (76.
Slide 6: Divisional Financial Snapshot
Divisional Financial Snapshot Auto turnaround offsets reduced EBIT in other operations For personal use only 2010 2009 12 months to 30 September Mvt Key drivers ($m) ($m) Change to insurance distribution model(1) in addition to Rural Services EBIT 23.4 36.5 -13.1 lower farm supply prices and volumes
Slide 7: Non-recurring Items
Non-recurring Items Significant one one-off off items, items driven principally from Forestry For personal use only 12 months to 30 September H1 10 FY10 Mvt Source of second half movement Impairment of NZ assets assets, redundancy and restructure Rural Services 7.0 (10.0) (17.0) costs Recognition of
Slide 8: Cash Flow from Operations
Cash Flow from Operations Break even cash flow before trade debtor impact Break-even For personal use only 2010 2009 12 months to 30 September Mvt ($m) ($m) R lS Rural Services i 69 1 69.1 (9 ) (97.7) +166.8 166 8 Forestry (29.3) (62.3) +33.0 Automotive 35.6 31.8 +3.8 C Corporate & other h ((ex. tra
Slide 9: Key Balance sheet items
Key Balance sheet items Strengthened balance sheet For personal use only 2010 2009 12 months to 30 September Movement ($m) ($m) Inventory 226.0 269.3 (43.3) T d debtors Trade d bt 471 2 471.2 535 8 535.8 (64 6) (64.6) Trade creditors 357.0 362.7 (5.7) Working capital 340.2 442.3 (102.1) Cash 80.0 36
Slide 10: Finance
Finance Refinancing of company debt underway For personal use only Operated within current covenants throughout FY10 with no breaches Lazard assisting with the restructure post sale of 40% holding of Rural Bank Restructure of finance facilities post deleveraging primarily aimed at: – Resetting
Slide 11: Operations Performance
For personal use only 2010 Financial Results OPERATIONS PERFORMANCE 10
Slide 12: Seasonal conditions: rainfall year to September
Seasonal conditions: rainfall year to September Great for the East, East Centre and North North, poor in the West For personal use only Above average g for eastern Australia and central Australia Strong positive conditions for cropping and livestock Poor in south-west Western Australia 11
Slide 13: Rural Services
Rural Services Lower prices offset cost and efficiency gains For personal use only 2010 2009 Network N t k results lt affected ff t d by b impact i t off low l farm f supply l 12 months to 30 September ($m) ($m) prices Sales 1,711.9 2,005.4 – Average AgChem price down -24% – Average Fert price dow
Slide 14: Rural Services Underlying EBIT movement
Rural Services Underlying EBIT movement FY10 below expectations, however, still like like-for-like for like improvement on previous year For personal use only ($m) 40 Comparable Underlying 35 EBIT increase from $21.2m to $23.5m (11%) 30 25 20.9 1.9 1.8 0.8 2.9 1.2 20 3.7 3.6 36.5 5.6 1.0 15 23.5 10
Slide 15: Elders Forestry
Elders Forestry Underlying EBIT solid despite MIS challenges Significant adverse one-off items impacts Reported EBIT For personal use only 2010 2009 12 months to 30 September Key drivers ($m) ($m) Continuing Sales Revenue 100.3 111.2 Lower MIS sales, increased harvest & port income Industry contract
Slide 16: Futuris Automotive
Futuris Automotive Strong performance on an earnings and cash flow perspective supported by a significant market recovery For personal use only 2010 2009 Outperformed expectations due to recovery in 12 months to 30 September Australian and global markets ($m) ($m) Sales 256.9 224.6 – Australian vo
Slide 17: Management Initiatives
For personal use only 2010 Financial Results MANAGEMENT INITIATIVES 16
Slide 18: Dealing with the issues presented by 2010
Dealing with the issues presented by 2010 Elders is re-aligning re aligning its costs, costs balance sheet and implementing a client-centric culture to become a High For personal use only Performance Sales Organisation g Revenue Cost to Serve Balance sheet growth Management Debt reduction structure
Slide 19: Cost-to-Serve progress and targets
Cost-to-Serve progress and targets On track for $45 million reduction For personal use only 3,000 EMPLOYEE FTEs (excl. Auto & JVs) 2,796 202 2,750 54 Savings A$m 2 594 2,594 2,540 52 2,488 2,500 18.7 Personnel 26 5 26.5 2,250 Non-Personnel 2,000 24 JJun J l - Sept July S t 30 S Septt 10 September S
Slide 20: Net Debt
Net Debt Significant reduction in net debt as a result of refinancing For personal use only 2010 2009 12 months to 30 September Mvt ($m) ($m) Bank debt 313.7 1,185.3 74% Trade debtor financing# * 111.2 - Na Plexicor debt* 64.3 - Na Other non bank debt* 8.4 14.0 40% Gross debt 497.6 1,199.3 59% Deriv
Slide 21: GTC Program: Go to Client overview
GTC Program Go to Client overview Re orienting the organisation to a client Re-orienting client-centric centric focus For personal use only Right size & restructure networks Administration & Technical Hubs Network Structure Gap locations Inside Sales Zone/Regional managers Management Sales Performan
Slide 22: Hardwiring sales effectiveness into Elders' daily activity
Hardwiring sales effectiveness into Elders’ daily activity For personal use only Optimise time spent selling to clients Weekly Weekly Client Action AIMs Review Li t Lists Plans Sessions Structured Optimise the effectiveness of the time spent with clients Selling Activity Selling Sales Coaching stori
Slide 23: Position and Outlook
For personal use only 2010 Financial Results POSITION AND OUTLOOK 22
Slide 24: Dashboard
Dashboard Progress being made across the business with Elders becoming increasingly efficient and focussed, supported For personal use only by y the ongoing g g deleveraging g g Financial Capital Operations M Management t Strategy Consolidating Reconfiguring Improving Advancing Reduced risk for diff
Slide 25: Outlook
Outlook Progress is being made and improved results are expected in 2011 For personal use only 2011 has begun well with strong results in October and November to date – Improved sales performance capitalising on seasonal conditions Elders anticipates stronger performance in FY2011 with earnings
Slide 26: There when you need us.
For personal use only Th There when h you need d us.