Elders Limited · ASX:ELD
Elders — Shareholder Meeting (December 2010)
21 slides from Elders's shareholder meeting presentation, Dec 16, 2010
Slide 1: 2010 AGM - CEO's Presentation
For personal use only 16 December 2010 Company Announcements Office Australian Securities Exchange 2010 AGM - CEO’s Presentation Attached is a copy of the Chief Executive Officer’s presentation to the 2010 Elders Limited Annual General Meeting being held in Adelaide today. Peter Hastings Company Sec
Slide 2: Chief Executive's presentation, 2010 Annual General Meeting
For personal use only Chief Executive’s presentation 2010 Annual General Meeting 16 December 2010 Malcolm Jackman Chief Executive
Slide 3: Operations overview
For personal use only Operations overview
Slide 4: Elders and Australian agriculture
Elders and Australian agriculture In 2010 Elders was at the heart of $10 billion of transactions For personal use only Cattle Farm supplies • 1.96 million head • $882 million sales • $1,267 million gross sales value Grain Sheep • 3.5 million tonnes executed • 9.30 million head • Sales value $696 mil
Slide 5: Financial Services Distribution
Financial Services Distribution Aligned partnership model For personal use only Banking Insurance Financial Planning Tradingg as Financial Planning Distributed by Distribution Elders (100%) QBE (75%) ANZ*(51%) Ownership Elders (25%) Elders (49%) Services Specialist bank to Australian Specialist rura
Slide 6: Elders Forestry
Elders Forestry Consolidating around forestry management and operations with solid lid underlying d l i value l For personal use only Management of 180,000 180 000 ha of plantation estate Port and handling infrastructure: – Albany Chip Terminal (wholly owned) – SmartFibre (50% interest) Cash f
Slide 7: Futuris Automotive
Futuris Automotive Australia’s largest auto components supplier with a growing Asia Pacific footprint For personal use only Supplier of interior systems and components to Australian, Chinese, Thai, South African and North American car makers Rebounding out of GFC with financial and new business
Slide 8: Rebuilding Elders as a capital-light, cash-focused, high-performance sales organisation
For personal use only Rebuilding Elders as a capital-light, cash- focused, high-performance sales organisation
Slide 9: Vision rationale
Vision rationale Focus on capital, cash and sales addresses our key aspirations for returns and growth For personal use only High performance Capital light Cash-focussed Sales Capital efficiency Strong g cash/liquidity y Optimise return on Adequate returns assets Working capital to Internal co
Slide 10: Capital-light
Capital-light Capital intensity versus shareholder returns For personal use only What it means: – Low capital intensity business within our core strategic and business focus – Capital release from non-core, peripheral or non-economic operations What’s been done: – $800 million capital from asset
Slide 11: Reduced capital requirements
Reduced capital requirements Net debt reduced further by recent restructuring. Leaner working capital. For personal use only Net debt Working Capital $ million $ million as at 30 September Consolidation of Plexicor at 30 September 870 52 64 442 340 383 348 275 Sep-09 Mar-10 Sep-10 Pro-forma post 200
Slide 12: Cash-focussed
Cash-focussed Concentrating on managing and conserving cash For personal use only What it means: – “Cash is King” and everyone in the business knows it What’s been done: – Supply chain reform – Improved operating cash flow in FY10 from all business units – Payment terms aligned to industry stand
Slide 13: High performance sales
High performance sales The achievement of sales excellence For personal use only What it means: – Being the best at understanding, anticipating and meeting our clients’ needs – Maximising share of client spend – Leading the industry in sales growth, and market share What’s been done: – Focus on
Slide 14: Go to Client
Go to Client GTC Program overview Re-orienting to a client-centric and sales focus For personal use only Adjust network structure Ad i i t ti & T Administration Technical h i l HHubs b Network Structure Gap identification Inside Sales Zone/Regional Management Management Sales Performance Management
Slide 15: Hardwiring sales effectiveness into daily activity
Hardwiring sales effectiveness into daily activity For personal use only Optimise time spent selling to clients Weekly Weekly Client Lists Action AIMs Review Plans Sessions Structured Selling Activity Optimise the effectiveness of the time spent with clients Selling Sales training Coaching stories
Slide 16: Gap analysis: location, product & services
Gap analysis: location, product & services Coverage and structure that will capture more farm supplies b i business for f Elders Eld For personal use only Gap analysis through comprehensive mapping and analysis of catchment and potential for sale of farm supplies – providing information on areas n
Slide 17: Restoring the brand
Restoring the brand Investing in the Company’s most powerful asset For personal use only Elders is taking a proacti proactivee approach to rebuilding Elders’ profile and trust with farmers Glenn McGrath, Elders Ambassador Refresh of branch signage and branding for all locations Finalist NAB
Slide 18: Current conditions and outlook
For personal use only Current conditions and outlook
Slide 19: Seasonal conditions
Seasonal conditions Extreme conditions in the east and WA south-west For personal use only Three months to 30 November December to date Financial situation of many growers will be impacted severely by the impact of high rainfall i f ll iin th the eastt and d llow rainfall i f ll iin WA south th we
Slide 20: 2011 to date
2011 to date Results to November encouraging for improved returns in FY11 For personal use only Positive start to 2011 2011, with results ahead of 2010 and on track for FY11 targets Rural Services trading well YTD and ahead of pcp result – Network sales up 4%; gross margin up 7% – Livestock, Woo
Slide 21: There when you need us.
For personal use only There when you need us.