Elders Limited · ASX:ELD
Elders — PAC Partners 21st Australasian AgFood Conference 2023
17 slides from Elders's conference presentation, May 30, 2023
Slide 1: Elders Limited Investor Presentation
30 May 2023 Elders Limited Investor Presentation For personal use only Attached is a presentation to be given today, 30 May 2023, to the 21st Australasian AgFood Conference hosted by PAC Partners. The presentation will be given by Elders Limited’s (ASX:ELD) Managing Director and Chief Executive Offi
Slide 2: PAC Partners - 21st Australasian AgFood Conference
For personal use only PAC Partners - 21st Australasian AgFood Conference 30 May 2023 Presented by Mark Allison Managing Director and CEO 1
Slide 3: Agenda
For personal use only Agenda Business Model Sustainable Growth Eight Point Plan Sustainability Questions 2
Slide 4: Business Model
Business Model Diversification by product, service, market segment and geography RURAL PRODUCTS FEED & DIGITAL AND REAL ESTATE FINANCIAL For personal use only AGENCY SERVICES PROCESSING TECHNICAL WHOLESALE SERVICES SERVICES RETAIL PRODUCTS SERVICES SERVICES PRODUCTS Fee for Service Rural Products Ru
Slide 5: Earnings Growth and Resilience Despite Seasonal Variability
Earnings Growth and Resilience Despite Seasonal Variability Resilient earnings growth with geographical, product and service diversity insulating against severe weather events For personal use only Underlying El Niño 2017-2019 Drought La Niña EBIT $232m FY23 Guidance Drought $200m³ Underlying EBIT R
Slide 6: Elders Historical Performance
Australia’s Elders Historical Performance most trusted Strong historical EBIT and EPS growth agribusiness brand 3,000 1600% For personal use only Price Cumulative Return % 1400% $6.56 $1,026m Market Price Market Cap 2,500 1200% CAGR 23%³ 23.2% 5.5X 2,000 1000% 10Year CAGR P/E1 Return % Price 1,500 8
Slide 7: HY23 Financial Performance: Summary
HY23 Financial Performance: Summary FY23 EBIT guidance between $180m - $200m For personal use only Sales Revenue ($m) Underlying EBIT ($m) 3,445 +24.9% +22.6% 232 200¹ 2,549 167 180¹ 2,093 1,626 121 74 1,657 133 1,515 1,101 74 83 733 900 53 34 FY19 FY20 FY21 FY22 HY23 FY19 FY20 FY21 FY22 FY23 Costs
Slide 8: HY23 Product Performance
HY23 Product Performance Mixed results across the product portfolio compared to strong market conditions in HY22 For personal use only Rural Products Gross Margin by Category ($m) Change in product margin ($m) 179 177 Fertiliser HY22 HY22 HY23 91.2 NPAT Wholesale Products 117 AgChem Retail 140.7 145
Slide 9: HY23 Gross Margin Diversification
Ready HY23 Gross Margin Diversification A diversified business model provides earnings resilience For personal use only +2.1% Total Gross Margin ($m) -22.1% Positive contribution from 326 306 backward integration and network 82.2 80.9 sales growth, partially offset by 79.2 temporary gross margin com
Slide 10: HY23 Geographical Diversification
HY23 Geographical Diversification Geographical diversification mitigates the impact of events like the East coast floods For personal use only Western Australia Queensland & 9.1% 22.4% Northern Territory 31 16 25 10 HY22 HY23 HY22 HY23 South Australia New South Wales 17.2% 22.1% 25 28 24 19 HY22 HY2
Slide 11: HY23 Dividend and Earnings Per Share
HY23 Dividend and Earnings Per Share Growth drivers delivering compelling returns through the cycles For personal use only Underlying Earnings per Share (cents) Adjusted Underlying Earnings per Share (cents)¹ ² 2H Adjusted underlying EPS HY FY +16.0% 134 HY 97 97 97 70 39 54 97 70 53 39 53 32 44 28
Slide 12: We Are Committed To Attracting & Retaining The Best People
We Are Committed To Attracting & Retaining The Best People More people, highly skilled, engaged and diverse WE HAVE MORE PEOPLE… …WHO ARE HIGHLY ENGAGED… …AND DIVERSE For personal use only FTEs Engagement1 Female non-executive Women in senior directors executive positions 8.5% CAGR +1.0% 2,585 2,701
Slide 13: Eight Point Plan
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 Australia minimum 15% ROC governance RURAL AGENCY R
Slide 14: Sustainability
Sustainability For personal use only OUR PRINCIPLES OUR PRIORITIES OUR PROGRESS ▪ We provide our customers and clients • Increasing the amount of solar power we ▪ Formed a dedicated Strategy, with the goods and services they need generate onsite Sustainability and innovation function ▪ We support ou
Slide 15: Growth Pillars
Growth Pillars Multi-Faceted strategy to drive growth through the cycles to FY26 For personal use only Geographic Backward Transformational Transformational Expansion Integration Projects Investment Market Share Gross Margin Capture Cost and Capital Efficiency New Channels to Market ▪ Strong pipelin
Slide 16: Investing Now for Future Growth
Investing Estimated Benefits to Flow Now for Future Growth Benefits FY23 FY24 FY25 FY26+ Transformational projects to For personal use only ▪ Investment in sourcing capability will drive benefits through FY26 unlock significant value across our and beyond from cost and portfolio RURAL PRODUCTS SUPPL
Slide 17: For personal use only
For personal use only
Elders — PAC Partners 21st Australasian AgFood Conference 2023 on 6ix