Elders Limited · ASX:ELD
Elders — Macquarie Australia Conference 2024
21 slides from Elders's conference presentation, May 9, 2024
Slide 1: Elders Limited Investor Presentation
9 May 2024 Elders Limited Investor Presentation Attached is a presentation to be given today, 9 May 2024, by Elders’ Managing Director and Chief Executive Officer, Mr Mark Allison, to the Macquarie Australia Conference. For personal use only Further Information: Mark Allison, Managing Director & Chi
Slide 2: Macquarie Australia Conference
For personal use only Macquarie Australia Conference 9 May 2024 Presented by Mark Allison Managing Director and CEO 1 Elders Limited
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, a
Slide 4: Agenda
ELDERS LIMITED AGENDA Agenda For personal use only 01 Business Model 04 Outlook 02 Financial Results 05 Questions 03 Strategy 3
Slide 5: Business Model
ELDERS LIMITED APPENDIX Business Model Geographic and product diversification mitigate impact of individual market volatility For personal use only Feed and Digital and Rural Products Agency Services Real Estate Services Financial Services Processing Services Technical Services Retail Wholesale Prod
Slide 6: Earnings Growth and Resilience
ELDERS LIMITED EXECUTIVE OVERVIEW Earnings Growth and Resilience Second highest EBIT result in the last 10 years notwithstanding volatility across several key markets First Eight Point Plan Second Eight Point Plan Third Eight Point Plan For personal use only Achievement Achievement Achievement EBIT³
Slide 7: Five Year Financial Performance
ELDERS LIMITED FINANCIAL RESULTS Five Year Financial Performance Strong track record of delivering 5-10% EBIT and EPS growth through the cycles For personal use only Sales Revenue ($m) Gross Margin ($m) +15.1% +19.6% 653 619 3,445 3,321 529 2,549 438 2,093 352 1,626 FY19 FY20 FY21 FY22 FY23 FY19 FY2
Slide 8: Five Year Shareholder Returns
ELDERS LIMITED FINANCIAL RESULTS Five Year Shareholder Returns Compelling shareholder value proposition over time For personal use only Underlying Earnings per Share (cents) Adjusted Underlying Earnings per Share (cents)¹ +13.6% 134.1 96.7 97.3 96.7 69.9 66.3 87.6 52.6 69.9 52.6 97.3 66.3 FY19 FY20
Slide 9: Key Performance Indicator Trends
ELDERS LIMITED FINANCIAL RESULTS Key Performance Indicator Trends Elders diversified business model provides earnings resilience against market volatility For personal use only Agency Services: Cattle Volume (‘000) Agency Services: Sheep Volume (‘000) Rural Products: Gross Margin ($m) Real Estate Se
Slide 10: Gross Margin Diversification
ELDERS LIMITED FINANCIAL RESULTS Gross Margin Diversification Continued focus on product diversification through organic and acquisition growth Total Gross Margin ($m) For personal use only -8.2% 172.9 652.7 619.0 -22.7% 529.4 158.8 147.0 141.3 130.4 FY21 FY22 FY23 113.7 -1.9% -3.4% -20.4% +39.0% 73
Slide 11: Geographical Diversification
ELDERS LIMITED FINANCIAL RESULTS Geographical Diversification Geographical diversification mitigates regional risk events For personal use only 24% 17% 26% WESTERN SOUTH VI C T O R I A AN D AU ST R AL I A AU ST R AL I A RIVERINA $50.5m $36.4m $57.1m -21% YOY -17% YOY -31% YOY 21% 10% 2% NEW SOUTH Q
Slide 12: Elders Capital Management Framework
ELDERS LIMITED APPENDIX Elders Capital Management Framework Elders Eight Point Plan aspires to deliver Total Shareholder Return (TSR) in the top quartile of ASX200 companies at investment grade risk Key Features For personal use only Capital Management Framework of our capital management framework C
Slide 13: Eight Point Plan Evolution
ELDERS LIMITED STRATEGY Eight Point Plan Evolution Three generations of the Eight Point Plan strategy since FY14, delivering compelling shareholder value proposition For personal use only FY15 to FY17 FY18 to FY20 FY21 to FY23 Financial metrics1: Financial metrics1: Financial metrics1: EBIT +37.5% E
Slide 14: Option – New Format, simplified priorities
Option 3 – New Format, simplified priorities For personal use only Compelling shareholder returns Industry leading sustainability outcomes Most trusted Agribusiness brand 5-10% EBIT and EPS growth through the cycles at across health and safety, community, environment and in rural and regional Austra
Slide 15: Our Strategic Priorities: Run
ELDERS LIMITED STRATEGY Our Strategic Priorities: Run Optimising the existing business For personal use only Deepening customer relationships ▪ Increasing sources of insights on clients’ needs and drivers of loyalty ▪ Continue to be the most trusted agribusiness brand amongst farmers Investing in ou
Slide 16: Our Strategic Priorities: Transform
ELDERS LIMITED STRATEGY Our Strategic Priorities: Transform Future-proofing our business For personal use only STREAMLINING OUR SUPPLY CHAIN MODERNISING OUR SYSTEMS Modernising our platforms to deliver more efficient Gross margin efficiency and reduced safety stock in Rural Products business process
Slide 17: Our Strategic Priorities: Innovate & Grow
ELDERS LIMITED STRATEGY Our Strategic Priorities: Innovate & Grow Expanding and innovating our portfolio Elders’ Points of Presence ▪ Growing our portfolio of products, services, For personal use only geographic footprint and channels 600 ▪ 21 additional points of presence 3.9% CAGR 579 ▪ Enhancing
Slide 18: Our Strategic Priorities: Innovate & Grow (cont.)
ELDERS LIMITED STRATEGY Our Strategic Priorities: Innovate & Grow (cont.) Innovating to create sustainable solutions for our customers and communities For personal use only OUR We provide our customers We support our people and We do our part to look We operate ethically and PRINCIPLES and clients w
Slide 19: ABARES Market Outlook
ELDERS LIMITED OUTLOOK ABARES Market Outlook Strong livestock volume outlook moderated by subdued prices and weaker crop outlook For personal use only Beef and Veal1 Sheep1 Wool1 Winter Cropping2 Summer Cropping2 Average saleyard prices (c/kg) Average saleyard prices (c/kg) Eastern Market Indicator
Slide 20: Market Outlook
ELDERS LIMITED OUTLOOK Market Outlook Favourable cropping outlook with expectations of reduced volatility from livestock and cropping input prices For personal use only FEED AND RURAL AGENCY REAL FINANCIAL COSTS AND PROCESSING PRODUCTS SERVICES1 ESTATE SERVICES CAPITAL SERVICES ▪ Dry and El Niño out
Slide 21: Elders Limited
For personal use only Elders Limited