Elders Limited · ASX:ELD
Elders — Macquarie Australia Conference 2022
20 slides from Elders's conference presentation, May 4, 2022
Slide 1: Elders Limited Investor Presentation
4 May 2022 For personal use only Elders Limited Investor Presentation Attached is a presentation to be given today, 4 May 2022, by Elders’ Managing Director and Chief Executive Officer, Mr Mark Allison, to the Macquarie Australia Conference. Further Information: Mark Allison, Managing Director & Chi
Slide 2: Elders Limited, presented by Mark Allison MD & CEO
For personal use only Elders Limited 4 May 2022 Presented by Mark Allison MD & CEO
Slide 3: Disclaimer and Important Information
DISCLAIMER AND IMPORTANT INFORMATION For personal use only The material in this presentation has been prepared by Elders Limited and is general background about Elders' activities and performance at the date of this presentation. The information is in summary form, does not purport to be complete an
Slide 4: Agenda
For personal use only Agenda Business Model Eight Point Plan Business Performance Growing our Business Market Outlook Questions 3
Slide 5: FY21 Business Model
FY21 Business Model Diversification by product, service, market segment and geography For personal use only RURAL PRODUCTS FEED & DIGITAL AND REAL ESTATE FINANCIAL AGENCY SERVICES PROCESSING TECHNICAL WHOLESALE SERVICES SERVICES RETAIL PRODUCTS SERVICES SERVICES PRODUCTS Fee for Service Rural Produc
Slide 6: Eight Point Plan
EIGHT POINT PLN For personal use only Compelling shareholder returns Industry leading sustainability outcomes Most trusted Agribusiness brand OUR 2023 5-10% EBIT and EPS growth through the cycles across health and safety, community, environment in rural and regional Australia AMBITION at 15% ROC and
Slide 7: FY21 Financial Performance: Summary
FY21 Financial Performance: Summary Consistent growth over the last five years For personal use only Sales Revenue ($m) EBIT ($m) 2,549 167 +12.7% +23.8% 2,093 121 1,599 1,626 71 75 74 1,583 FY17 FY18 FY19 FY20 FY21 FY20 to FY21 gross margin uplift contribution FY17 FY18 FY19 FY20 FY21 22% 48% 30% A
Slide 8: FY21 Financial Performance: Summary
Ready FY21 Financial Performance: Summary Strong performance across our key metrics For personal use only Key metrics ($m) FY21 FY20 Var % Sales revenue 2,548.9 2,092.6 456.3 22% Gross margin 529.4 437.5 91.9 21% Costs 362.9 316.9 46.0 15% Earnings before interest and tax 166.5 120.6 45.9 38
Slide 9: FY21 Financial Performance: Product
FY21 Financial Performance: Product Favourable performance across all products, with the exception of Feed and Processing businesses For personal use only Change in product margin ($m) RETAIL FINANCIAL growth and improved market PRODUCTS increased sales activity +22% SERVICES conditions in our I
Slide 10: FY21 Financial Performance: Gross Margin
Ready FY21 Financial Performance: Gross Margin A diversified business model across product categories For personal use only +10.1% Total Gross Margin +35.7% 529 438 140.0 130.4 127.2 FY20 FY21 96.1 FY20 +39.1% FY21 +32.7% +24.9% 61.2 +11.3% +20.1% 50.7 38.1 +3.6% 44.0 38.2 41.3 37.1 30.5 32.3 -18.7%
Slide 11: Dividend & Capital Management
Dividend & Capital Management Earnings and dividends per share continue to grow For personal use only Underlying earnings per share (cents) Dividends per share (cents) 97 42 +17.2% Final 70 Interim +53.8% 22 55 53 51 22 18 18 13 9 9 8 20 8 9 9 9 0 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Fr
Slide 12: Sustainability
Sustainability For personal use only We provide our customers We support our people We do our part to look We operate ethically and and clients with the goods and the industries and after the environment and to the highest standard and services they need communities in which we animals in our care o
Slide 13: For Australian Agriculture
For Australian Agriculture Digital Interactions Launched new campaign anchored by four key pillars Increase across our websites & social media platforms Brand For personal use only Our renewed investment in the ~700k brand supports our improved trust scores and growth, while our clients are becoming
Slide 14: Strengthening our Service Offerings
Strengthening our Service Offerings Ongoing investment in innovative solutions to improve customer productivity and efficiency For personal use only Innovation Digital Research Strategic Partnerships Elders’ new Carbon Farming Program Launch of the Struan and Kybybolite Genomics Charles Stur
Slide 15: Eight Point Plan
EIGHT POINT PLN For personal use only Compelling shareholder returns Industry leading sustainability outcomes Most trusted Agribusiness brand OUR 2023 5-10% EBIT and EPS growth through the cycles across health and safety, community, environment in rural and regional Australia AMBITION at 15% ROC and
Slide 16: Strategic Opportunities
Strategic Opportunities For personal use only Significant growth opportunities to gain market share in new geographies, with our multiple product and service portfolio Focus on increasing market share and Retail presence in high value areas, including Products Western Victoria, South Coast WA, North
Slide 17: Systems Modernisation Program
Systems Modernisation Program Embarking on a Systems Modernisation program aimed at delivering a more customer centric, cost efficient and enabled team For personal use only Wave Internal financial and people foundation 1 $18.9m Wave 2 Supply chain and in-branch retail Wave 1 Investment (Capex + Ope
Slide 18: ABARES September Outlook Update
ABARES September Outlook Update Improved summer cropping expected in 2021-22 to support Rural Products margin growth; livestock prices remain high as rebuild continues For personal use only Beef & Veal Sheep Wool Cropping Average saleyard prices (c/kg) Average saleyard prices (c/kg) Eastern Market I
Slide 19: Market Outlook
Market Outlook FY22 has started positively with livestock prices remaining elevated and favourable summer crop outlook For personal use only positive summer crop outlook, with area planted forecast to rise 24% to 1.3 million hectares1 second year of earnings and continued uptake of our livestock
Slide 20: For personal use only
For personal use only