Elders Limited · ASX:ELD
Elders — Shareholder Meeting (December 2009)
21 slides from Elders's shareholder meeting presentation, Dec 18, 2009
Slide 1: Elders Limited Annual General Meeting – Chairman's Address and CEO Presentation
18 December 2009 For personal use only Company Announcements Office Australian Securities Exchange ELDERS LIMITED ANNUAL GENERAL MEETING – 18 DECEMBER 2009 CHAIRMAN’S ADDRESS AND CHIEF EXECUTIVE OFFICER’S PRESENTATION In accordance with Listing Rule 3.13.3, I attach a copy of the Chairman’s address
Slide 2: Address by the Chairman, Stephen Gerlach
Address by the Chairman, Stephen Gerlach Elders Ltd Annual General Meeting 18 December 2009 For personal use only The fact that this is the third general meeting of the Company to be held this calendar year underscores what a significant period it has been for Elders. Since our last Annual General M
Slide 3: Underlying loss and non-recurring items
The first component was an underlying or operating loss after tax of $51.8 million due largely to the very difficult trading and seasonal conditions experienced across the group’s operations. Rural Services, Forestry and Automotive operations all reported sharply reduced For personal use only earnin
Slide 4: Rural Services trading conditions
As the operating result shows, 2009 was a very challenging year for rural service providers generally and Elders’ experience was no different. Chief amongst the year’s challenges was the severity and speed of the shift in fertiliser and agricultural chemical markets. In the period to December prices
Slide 5: Forestry and automotive operations
Consistent with the strategy being applied across the Company, our interests and business model in forestry have also been restructured to be more capital efficient and more aligned with Elders’ strategic focus. ITC Timber, a manufacturer of value-added timber products has been sold and land require
Slide 6: Share Purchase Plan and asset sales update
been comprehensively addressed at the General Meeting held in October and in various written communications to shareholders. Today I would like to update shareholders on developments since that meeting. The $150 million Share Purchase Plan approved by shareholders was completed on For personal use o
Slide 7: Dividends and board renewal
The board appreciates that this has been a disappointment for many shareholders. However the commitment to a conservative cash management regime proved to be one of the critical elements in securing a sustainable, competitive financing package and therefore the right course of action in the current
Slide 8: Board recruitment and trading conditions
I would like to thank Graham for his many years of service to the Board, and particularly as Chairman of the Audit Committee. He has been an incredibly valuable board member and significant contributor to the Company. A recruitment process has been initiated to identify and secure new candidates who
Slide 9: The New Elders
For personal use only 2009 ANNUAL GENERAL MEETING 18 December 2009 The New Elders ASX ASXSmall SmalltotoMid MidCap CapConference ConferenceHong HongKong KongOctober October29292009 2009
Slide 10: Chairman's Address
For personal use only 2009 Annual General Meeting CHAIRMAN'S ADDRESS Stephen Gerlach Chairman The New Elders ASX ASXSmall SmalltotoMid MidCap CapConference ConferenceHong HongKong KongOctober October29292009 2009
Slide 11: Progressing the Agenda for Change
For personal use only 2009 Annual General Meeting PROGRESSING THE AGENDA FOR CHANGE Malcolm Jackman • Chief Executive Officer The New Elders ASX ASXSmall SmalltotoMid MidCap CapConference ConferenceHong HongKong KongOctober October29292009 2009
Slide 12: Agenda for change: key tenets
Agenda for change: 5 key tenets For personal use only • Safety is the first and foremost consideration of day to day operations • Simple, effective, accountable and performance oriented structure • Refocus on Elders • Improve financial performance, discipline and measurement • Engage the market and
Slide 13: Safety
Safety For personal use only • #1 priority for management • Lost time Injury Frequency Rate reduced from 8.64 to 5.62 • Introduction of Company‐wide reporting and management • Independent research conducted and subsequent internal assessment in 2009 has led to: – re‐allocation of resources, measurab
Slide 14: A single integrated structure focussed on Elders and performance
A single integrated structure focussed on Elders and performance For personal use only Elders Limited CEO Malcolm Jackman GM Investor GM Legal & Forestry GM HR & Futuris COO CFO CIO & Corporate Corporate Support COO Automotive Rural Services Mark Shaun Relations Development Services Vince MD Mike Gu
Slide 15: Refocus around Elders
Refocus around Elders For personal use only • Name change approved and implemented • Creation of single integrated management structure and team focussed on operations • Non-related assets divested or discontinued – AAco – Amcom – Webster – Timber processing – Abattoir – Seed, fodder and horticultur
Slide 16: Refocussing around Elders: Strategic position
Refocussing around Elders: For personal use only Strategic position Our strategic position is at the farm gate …. where farm production intersects with local and global markets Concentration on rural distribution and associated leverage points… • Built around linkages and relationship with our clien
Slide 17: Improve financial performance
Improve financial performance For personal use only • Non-performing assets discontinued, divested or being sold • Capital management plan with daily reporting • Support for Rural Services Business Transformation Program • Strong sustainable balance sheet – Gross debt reduced from $1.2 billion to <
Slide 18: Engage the market
Engage the market For personal use only • Active share market engagement program • Balance date change approved and implemented to conform with sector • More conservative gearing metrics and increased disclosure • Reduction of debt and gearing to investment grade • Share register composition brought
Slide 19: Still in progress
Still in progress For personal use only • Selected divestments including – HiFert – Aquaculture • Delivery of improved and acceptable financial results in line with prospectus 2009 ANNUAL GENERAL MEETING
Slide 20: 2010 Management imperatives
2010 Management imperatives For personal use only • Meet prospectus forecasts • De-leveraging • Margin improvement - Elders business transformation • Cash and balance sheet management • Complete asset divestments – Hi Fert – Aquaculture • Diversity 12 2009 ANNUAL GENERAL MEETING
Slide 21: The New Elders
For personal use only 2009 ANNUAL GENERAL MEETING 18 December 2009 The New Elders ASX ASXSmall SmalltotoMid MidCap CapConference ConferenceHong HongKong KongOctober October29292009 2009