Elders Limited · ASX:ELD

Elders — H1 FY2017 Earnings Presentation

24 slides from Elders's earnings presentation, May 15, 2017

  1. Slide 1: 2017 Half-Year Results Investor Presentation

    For personal use only Monday, 15 May 2017 2017 Half-Year Results Investor Presentation Attached is the investor presentation in connection with the financial results for the 6 month period ended 31 March 2017. Elders CEO, Mark Allison, and CFO, Richard Davey, will deliver this presentation by webcas

  2. Slide 2: Elders Limited 2017 Half Year Results Presentation

    For personal use only Elders Limited 2017 Half Year Results Presentation 15 May 2017

  3. 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 purposes only. It contains This presentation refers to and discusses underlying profit to enable analysis forward looking statements that are sub

  4. Slide 4: FY17 Half Year in Review

    FY17 Half Year in Review Solid performance for financial metrics For personal use only  Lost time injuries increase to 5 from 2  Statutory net profit after tax of $38.3m, up $13.7m  Underlying net profit after tax of $34.9m, up $12.3m  Underlying EBIT of $41.3m, up $13.2m  Operating cash outflo

  5. Slide 5: Progress on FY17 Priorities

    Progress on FY17 Priorities Delivering our promises to stakeholders For personal use only Safety Operational Key Efficiency Performance Performance Relationships and Growth  Lost time injuries increase to 5  $41.3m underlying EBIT, up  Strengthened relationships in  Continue to drive branch effi

  6. Slide 6: Half Year Financial Performance

    Half Year Financial Performance For personal use only Change $ million 1H FY17 1H FY16 $m % Sales revenue 698.2 83.2 14% 615.0 Underlying EBIT 41.3 13.2 47% 28.1 Underlying profit after tax 34.9 12.3 54% 22.6 Reported profit after tax 38.3 13.7 56% 24.6 Net debt 170.4 44.4 35% 126.0 Operating cash f

  7. Slide 7: Performance by Product

    Performance by Product Margin improvement across product range For personal use only Underlying profit movement $ million Product margin (0.2) 4.7 (3.8) 0.6 (1.2) 5.8 6.5 34.9 22.6 1H FY16 Retail Agency Real Estate Financial Feed and Costs Interest, 1H FY17 Underlying Products Services Services Serv

  8. Slide 8: Performance by Geography

    Performance by Geography Improvement across Australian business units, headwinds for international segment For personal use only Underlying profit movement $ million (0.4) (0.6) 2.8 (1.2) 5.4 6.4 34.9 22.6 Northern Southern Western Corporate and Interest, 1H FY17 1H FY16 International Australia Aust

  9. Slide 9: Capital Employed

    Capital Employed Return on capital well in excess of targeted 20% For personal use only  Underlying return on capital drivers: Underlying Return on Capital o Increased profitability of the Retail business o Continued strong Agency earnings, particularly Livestock, which requires minimal working cap

  10. Slide 10: Operating Cash Flow

    Operating Cash Flow Positive EBITDA offset by working capital movements For personal use only  Strong EBITDA cash conversion, offset by Cash flow Working capital movements $ million increased working capital usage  Working capital usage reflects: (4.8) o Higher activity in the Agency business (22.

  11. Slide 11: Net Debt

    Net Debt Key debt ratios stable For personal use only Net debt $ million  Increase in net debt at balance date represents net hybrid outflow, higher working capital balances and investments in Elders Insurance and StockCo  Average net debt steady over period  Despite higher net debt at balance da

  12. Slide 12: Pathway to FY17 Target

    Pathway to FY17 Target For personal use only Tailwinds  Favourable summer cropping season  Livestock prices remain strong  Full year benefit of footprint expansion in retail and livestock segments  Increased Financial Services earnings through acquisitions  Investment in Real Estate bolt-ons in

  13. Slide 13: FY17 Outlook

    FY17 Outlook Gradual decline in livestock prices expected For personal use only Retail  Rainfall is forecast to be below average and temperatures higher than average for most of Australia to June, potentially impacting crop yields. Acquisition and footprint expansion during the second half of the 2

  14. Slide 14: Eight Point Plan

    For personal use only Eight Point Plan 13

  15. Slide 15: Balanced growth plan to FY20

    Balanced growth plan to FY20 For personal use only Organic Acquisition Cost 40% 40% 20%  Drive continuous business  Continue to evaluate strategically  Efficiency gains through active improvement aligned opportunities to expand cost management our business  Capture growth opportunities  Realloc

  16. Slide 16: Appendix

    For personal use only APPENDIX

  17. Slide 17: Business Model

    Business Model For personal use only Digital & Feed & Retail Financial Agency Services Real Estate Services Technical Processing Products Services Services Services ` Property Management Auctions Plus (50%) Elders Indonesia Elders Weather Fee for Service Killara Feedlot Farm Supplies Agri Finance El

  18. Slide 18: Business Segmentation

    Business Segmentation For personal use only Average Northern Southern Western International 1H FY17 $ million Working Australia Australia Australia Geographies Margin Capital Retail Products Farm Supplies and Fertiliser 59.6 163 Agency Services Livestock, Wool, and Grain 65.2 42 Farmland, Residentia

  19. Slide 19: Business Performance by Product

    Business Performance by Product For personal use only Margin by product 1H FY16 1H FY17 $ million +12% +10%  Retail: Benefited from improved summer cropping 65.2 conditions and geographical expansion 59.6 59.4 53.1  Agency: Continued strong livestock prices and benefit from footprint growth +4% +3

  20. Slide 20: Business Performance by Geography

    Business Performance by Geography For personal use only Margin by geography $ million 1H FY16 1H FY17 +10%  Northern Australia: Benefitted from high cattle prices, +15% normalised summer retail performance, and upside 72.9 63.5 66.1 from geographical expansion implemented during 55.3 FY16 +12%  So

  21. Slide 21: 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

  22. Slide 22: 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

  23. Slide 23: 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 22

  24. Slide 24: For personal use only

    For personal use only

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