Slide 1: Annual Shareholders Meeting
Annual Shareholders Meeting 28 October 2010 Riccarton Park Christchurch
Slide 2: Agenda
Agenda Introduction & Overview ± Sir John Anderson, Chairman Financial Review & Strategy ± Rob Woodgate, Chief Financial Officer Operational Review ± John McKenzie, GM AgriTech ± Michael Thomas, GM AgriServices Events Subsequent to Balance Date & Outlook ± Sir John Anderson Resolutions and
Slide 3: Welcome
Welcome ± Sir John Anderson Introduction of Directors Apologies Notice of Meeting Minutes Proxies Annual Financial Statements Notes on attendance and voting. 3
Slide 4: Overview and Business Climate
Overview and Business Climate Following the capital raising in November 2009, at 30 June 2010 we had: 9 Restructured the balance sheet 9 Management and Board changes 9 A clear vision and strategic direction 9 Operational reorganisation creating two clear launch pads for growth 2009/10 characterised
Slide 5: New Ownership and Acknowledgements
New Ownership and Acknowledgements To support the new ownership structure, there were a number of changes to the Board of Directors during the year including: ± Resignation of Sam Maling as Director 30 October 2009 ± Appointment of Alan Lai and Tao Xie as Directors 30 December 2009 ± Appointment o
Slide 6: Annual Shareholders' Meeting
$QQXDO6KDUHKROGHUV¶0HHWLQJ Overview Financial Review Strategy Operational Review Key Events & Outlook 6
Slide 7: Financial Review
Financial Review Comparative to Prospective Financial Information (PFI) GROUP Actual PFI Variance 2009 P¶V P¶V P¶V P¶V Revenue 1,151.1 1,107.7 43.4 1,280.4 EBITDA 70.5 73.4 (2.9) 81.1 Adjusted net profit 25.3 24.1 1.2 (66.4) after tax¹ Net profit after tax 23.3 24.1 (0.8) (66.4) Net Debt (excluding
Slide 8: Financial Review
Financial Review Comparative year on year performance 8
Slide 9: Financial Review: Operating Cash Flow
Financial Review Operating Cash Flow GROUP 2010 2009 P¶V P¶V Receipts from customers 1,144.5 1,269.1 Dividends received 0.5 0.7 Interest received 69.9 59.6 Cash In 1,214.9 1,329.4 Payments to suppliers & employees (1,083.6) (1,250.7) Interest paid (76.3) (62.1) Income tax paid (11.7) (4.4) Cash Out
Slide 10: Financial Review: Balance Sheet
Financial Review Balance Sheet GROUP 2010 2009 P¶V P¶V Current assets 485.2 467.3 Non-current assets 511.6 512.7 Finance receivables 530.1 564.1 Total assets 1,526.9 1,544.1 Current liabilities (251.6) (704.5) Non-current liabilities (221.7) (21.1) Finance liabilities (418.1) (427.6) Total liabiliti
Slide 11: Annual Shareholders' Meeting
$QQXDO6KDUHKROGHUV¶0HHWLQJ Overview Financial Review Strategy Operational Review Key Events & Outlook 11
Slide 12: Strategy: business configured around two core groupings
Strategy: business configured around two core groupings AgriServices AgriTech (Customers & (IP & Growth) Distribution) Price relative to value proposition Limited ability to price differentiate Wholesale distributor End customer distributor High quality High quality service and products
Slide 13: Strategic direction in summary
Strategic direction in summary Reallocation of resources to businesses where most customer and shareholder value is created This will underpin enhanced group profitability and long term sustainability, to the benefit of clients, staff and shareholders AgriServices : high level opportunities ar
Slide 14: Supporting the strategy
Supporting the strategy Key management changes to support strategic direction Appointments: ± John McKenzie: appointed in June as Group GM, AgriTech. John is the former PGW Group GM Seed, Grain and Nutrition and is the founder of specialist proprietary forage seed company Agricom Ltd ± Michael T
Slide 15: Annual Shareholders' Meeting
$QQXDO6KDUHKROGHUV¶0HHWLQJ Overview Financial Review Strategy Operational Review Key Events & Outlook 15
Slide 16: Financial Review: Seeds and Grain
Financial Review Seeds and Grain (not including South America) June 2010 June 2009 P¶V P¶V Revenue 254.6 240.3 EBITDA 33.6 31.7 Excellent performance given trading conditions New Zealand: ± widespread adoption of key endophyte Technology AR37 ± Rolleston distribution centre built commissioned Au
Slide 17: AgriTech: South America
AgriTech South America (excluding corporate costs South America) June 2010 June 2009 1=P¶V 1=P¶V Revenue 84.1 76.0 EBITDA 5.5 6.2 Successful year of commencing seed business in Brazil, with registration of seed cultivars 8% improvement in local currency trading results though impacted by NZ $ co
Slide 18: AgriTech: Agri-feeds
AgriTech Agri-feeds June 2010 June 2009 P¶V P¶V Revenue 43.6 72.6 EBITDA 5.2 9.8 Challenge of an excellent growing season which saw reduced need for supplementary feed Poor early dairy payout impacted cash flow for first six months, with pressure on early season volumes which saw molasses at 56%
Slide 19: AgriTech Opportunities
AgriTech Opportunities Global: Expansion into Asian market New Zealand: Acquisition of maize seed division of Corson Grain ± Develops, produces and markets maize and sweet corn hybrid seed for New Zealand market ± Complements Seeds existing forage seed and maize grain businesses ± A commitment t
Slide 20: AgriServices: Merchandising
AgriServices Merchandising June 2010 June 2009 P¶V P¶V Revenue 541.7 668.1 EBITDA 22.2 26.1 Performance reflects tentative spending by farmers and grower clients given liquidity environment Fruitfed maintained or grew share in key markets such as vegetables, though viticulture spend down signifi
Slide 21: AgriServices: Livestock
AgriServices Livestock June 2010 June 2009 P¶V P¶V Revenue 87.4 76.0 EBITDA 12.6 12.7 Unusual market conditions with excellent pastoral production in first six months allowing farmers to hold stock, followed by six months of drought and heavy rain conditions Annual NZ dairy stock trading well be
Slide 22: AgriServices: Finance
AgriServices Finance June 2010 June 2009 P¶V P¶V Revenue 59.7 59.8 EBITDA 13.3 10.9 Strong financial result in current climate Achieved a first time BB(stable) credit rating from Standard & Poors Received a substantial refund of Crown Guarantee fees based on credit rating achievement Excelle
Slide 23: AgriServices: Insurance
AgriServices Insurance June 2010 June 2009 P¶V P¶V Revenue 4.3 4.0 EBITDA 3.8 3.8 Steady historic growth Significant potential moving forward Aon is a global player in insurance broking, risk management and associated services enjoying a leading position within the New Zealand marketplace Th
Slide 24: AgriServices: Comments on other Operating Units
AgriServices Comments on other Operating Units Real Estate ± 28% decline in net units sold from 2009 though continued to hold leading position in rural property. Continued strong focus on cost reduction Irrigation & Pumping ± difficult year on back of reduced dairy payout, flat lifestyle market
Slide 25: AgriServices: Path Forward
AgriServices Path Forward Focus on our core strengths as the only national rural service company 6KLIWIURPµRQHVL]HILWVDOO¶WRDSODWIRUPRIGLIIHUHQWLDWHGYDOXHSURSRVLWLRQV Re-align costs to current market conditions Build the capability of our people via investment in learning and development C
Slide 26: Annual Shareholders' Meeting
$QQXDO6KDUHKROGHUV¶0HHWLQJ Overview Financial Review Strategy Operational Review Key Events & Outlook 26
Slide 27: Events subsequent to Balance Date
Events subsequent to Balance Date Canterbury Earthquake Resignation of Managing Director and GM: Transformation and Strategy Divestment from NZ Farming Systems Uruguay. 27
Slide 28: Wool Partners Co-operative
Wool Partners Co-operative Launch of a new 100% Grower owned wool Co-operative Proceeds of the Capital Raising to be used to purchase select assets from WPI Potential dissolution of Wool Grower Holdings. 28
Slide 29: Primary Growth Partnership
Primary Growth Partnership Reflects commitment to Industry good. 5HGPHDWVHFWRUDPSDUWQHUVKLSYLDµFarmIQ¶ 29
Slide 30: Outlook
Outlook Expectation of a comparable trading performance to be largely in line with the prior financial year with some upside potential, particularly in light of international economic trends At NPAT level, taking into account reduced interest costs, we expect an improved performance. 30
Slide 31: Questions
Questions ———_——— 31 PGG Wrightson Helping grow the country
Slide 32: Resolutions: Director Elections
Resolutions ± Director Elections Resolution 1 ± Sir Selwyn John Cushing Resolution 2 ± Keith Raymond Smith Resolution 3 ± William David Thomas :KRUHWLUHE\URWDWLRQLQDFFRUGDQFHZLWKWKH&RPSDQ\¶V&RQVWLWXWLRQDQGDOOEHLQJ eligible, offer themselves for election Resolution 4 ± Sir John Anthony Anderson Resol
Slide 33: Resolutions: Auditor's Remuneration
Resolutions ± $XGLWRU¶V5HPXQHUDWLRQ Resolution 8 ± WRDXWKRULVHWKH'LUHFWRUVWRIL[WKHDXGLWRU¶UHPXQHUDWLRQ Any other business. 33
Slide 34: Thank you
Thank you ———_——— 34 PGG Wrightson Helping grow the country