Slide 1: 2016 Full Year Financial Results Presentation
For personal use only 14 November 2016 2016 Full Year Financial Results Presentation Attached is the presentation of the financial results for the 12 month period ended 30 September 2016. Sanjeeta Singh Joint Company Secretary 1
Slide 2: For personal use only
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Slide 3: Disclaimer and Important Information
Disclaimer and Important Information For personal use only Forward looking statements Non-IFRS information This presentation is prepared for informational This presentation refers to and discusses purposes only. It contains forward looking underlying profit to enable analysis of like-for- statements
Slide 4: FY16 Year in Review
FY16 Year in Review For personal use only Solid performance across all key metrics Reduction in lost time injuries from 14 to 4 Statutory net profit after tax of $51.6m, up $13.3m Underlying net profit after tax of $41.2m, up $13.2m Underlying EBIT of $56.2m, up $15.7m Operating cash flow $48.7m for
Slide 5: FY16 Priorities
FY16 Priorities For personal use only Delivered our promises to stakeholders Safety Operational Key Efficiency Performance Performance Relationships and Growth Reduction in lost time injuries $41.2m underlying profit up Developed online client community 90 day improvement program from 14 to 4 $13.2m
Slide 6: Full Year Financial Performance
Full Year Financial Performance For personal use only Change $ million FY16 FY15 $m % Sales revenue 1,425.2 117.3 9.0% 1,307.9 Underlying EBIT 56.2 15.7 38.8% 40.5 Underlying profit after tax 41.2 13.2 47.1% 28.0 Reported profit after tax 51.6 13.3 34.7% 38.3 Net debt (86.1) 50.1 36.8% (136.2) Opera
Slide 7: Performance by Product
Performance by Product For personal use only Strong retail and agency performance Underlying profit movement $ million Product margin 1.7 0.8 (3.8) 5.2 (3.3) (2.5) 15.1 41.2 28.0 FY15 Retail Products Agency Real Estate Financial Feed & Costs Interest, tax & FY16 Underlying Services Services Services
Slide 8: Performance by Geography
Performance by Geography For personal use only Improvement across Australian business units, headwinds for International segment Underlying profit movement $ million (2.5) (3.0) 6.4 4.1 4.3 3.9 41.2 28.0 FY15 Underlying Northern Southern Western International Corporate and Interest, tax & FY16 Under
Slide 9: Capital Deployed
Capital Deployed For personal use only Return on capital in excess of targeted 20% Return on capital Underlying return on capital improvement drivers: excl Live Export incl Live Export o Working capital efficiency and increased profitability in the retail business 21.9% 27.2% 28.4% o Increased profi
Slide 10: Operating Cash Flow
Operating Cash Flow For personal use only Strong cash inflows from operations Cash flow $ million Working capital movements Strong EBITDA cash conversion 13.6 (17.2) Working capital benefits in Retail offset by 10.8 (10.6) unfavourable timing of livestock related 3.1 (1.5) payments (8.6) 59.1 (6.0)
Slide 11: Net Debt
Net Debt For personal use only Key debt ratios improved Net debt $ million Key ratios Sept-15 Sept-16 Change 136.2 134.9 Leverage [net debt to underlying EBITDA] 3.1 1.4 1.7 122.4 Interest cover [underlying EBITDA to net interest] 4.7 6.3 1.6 At balance date Annual average 86.1 Gearing [net debt to
Slide 12: Capital Structure
Capital Structure For personal use only Capital structure no longer impediment to paying dividends $67m hybrid acquisition successfully completed using $97m net equity capital raised 72% of hybrids now owned by Elders Finance Board and management continue to assess options for non-controlled hybrids
Slide 13: Eight Point Plan progress
For personal use only Values, Performance Geographical Coverage Retail Products & Brand & Distribution Channels Consignment stock Performance culture Retail footprint expanded in Margin management Local community Tasmania and NSW Better supplier terms, engagement Agency footprint expanded in limits
Slide 14: FY17 Priorities
FY17 Priorities For personal use only Financial and Safety Key Efficiency Operational Performance Relationships and Growth Performance • Continued emphasis on safety • Achieve Eight Point Plan targets • Continue to develop values and • Drive Retail growth through gross performance based culture acro
Slide 15: Eight Point Plan – Towards 2020
Eight Point Plan – Towards 2020 For personal use only Values, Performance Agency Services & Brand Retail Products To deliver profitable growth of the To deliver our plans through a values, To deliver profitable and capital light agency services portfolio through safety and performance based culture
Slide 16: Outlook
Outlook For personal use only Positive conditions expected for FY17 Retail: Cooler and wetter than average conditions are likely to prevail for most of Australia for the remainder of the 2016 calendar year, which is expected to improve summer crop plantings of sorghum, rice and cotton. Agency: Cattl
Slide 17: Appendix to Full Year Results Presentation
For personal use only Appendix to Full Year Results Presentation
Slide 18: Business Model
Business Model For personal use only Agency Digital & Feed & Retail Real Estate Financial Services Technical Processing Products Services Services Services Services ` Auctions Plus (50%) Elders Indonesia Elders Weather Fee for Service Farm Supplies Killara Feedlot Management Elders China Agri Financ
Slide 19: Business Segmentation
Business Segmentation For personal use only Northern Southern Western International FY16 Working $ million Australia Australia Australia Geographies Margin Capital Retail Products Farm Supplies and Fertiliser 126.3 131 Agency Services Livestock, Wool, and Grain 111.4 41 Farmland, Residential, Proper
Slide 20: Business Performance by Product
Business Performance by Product For personal use only Margin by product FY15 FY16 $ million Retail: price book management, supplier +14% rationalisation and improved climate conditions +5% 126.3 across the country 111.2 106.2 111.4 Agency: uplift with continued strong livestock +6% prices and acquis
Slide 21: Business Performance by Geography
Business Performance by Geography For personal use only Margin by geography $ million FY15 FY16 North: Improvement in Retail driven by recovery in +6% +7% cotton growing areas and strong livestock and real 124.2 131.2 estate activity 115.3 107.6 +13% South: Increase driven by Retail and strong lives
Slide 22: Profit Sensitivity
Profit Sensitivity For personal use only Underlying NPAT $(10m) $(7.5m) $(5m) $(2.5m) NPAT +$2.5m +$5m +$7.5m +$10m Sheep price -$20 -$10 +$10 +$20 Cattle price -$100 -$50 +$50 +$100 Sheep volume -1m head -500k head +500k head +1m head Cattle volume -200k head -100k head +100k head +200k head Retail
Slide 23: Strategic Gap Analysis
Strategic Gap Analysis For personal use only Retail • Target for 20% market share • Fertiliser growth in WA through CSBP • Increase presence in horticulture industry • Expand skill base and value add to grow fee for service advisory Agency • Targeted footprint and agent growth in livestock services
Slide 24: Points of Presence
Points of Presence For personal use only Over 440 points of presence in Australia and overseas including full service branches, real estate and insurance franchises Key produce areas covered through our footprint Targeted expansion of footprint through recruitment and acquisition 23
Slide 25: For personal use only
For personal use only