Slide 1: Welcome to the PGG Wrightson Limited annual meeting
————_ i me PGG Wrightson Christchurch, Canterbury Welcome to the PGG Wrightson Limited Helping grow the country
Slide 2: Introductions and apologies
> Introductions and apologies Opening formalities Business of the Meeting Item I Addresses by the Chairman and the CEO Item II Consider the re-election of Guanglin (Alan) Lai as Chairman– Resolution 1 Item III Consider the re-election of Bruce Irvine as a Director – Resolution 2 Item IV Consider the
Slide 3: Board of Directors
Guanglin (Alan) Lai Trevor Burt Chairman Deputy Chairman Bruce Irvine John Nichol Lim Siang (Ronald) Seah Kean Seng U Independent Director Independent Director Independent Director
Slide 4: Chairman and management team
Alan Lai Trevor Burt Chairman Deputy Chairman Mark Dewdney Peter Scott Julian Daly Chief Executive Officer Chief Financial Officer GM Strategy and Corporate Affairs
Slide 5: General managers
Cedric Bayly Grant Edwards Stephen Guerin GM Wool (retired) GM Wool GGM Retail and Water John McKenzie Peter Newbold Rachel Shearer Peter Moore GGM Seed and Grain GM Real Estate GM Human Resources GM Livestock
Slide 6: Opening formalities
> Opening formalities • Notice of meeting • Minutes • Proxies • Annual Report 2017 Business of the Meeting Item I Addresses by the Chairman and the CEO Item II Consider the re-election of Guanglin (Alan) Lai as Chairman– Resolution 1 Item III Consider the re-election of Bruce Irvine as a Director –
Slide 7: Operating EBITDA Reconciliation
Operating EBITDA Reconciliation ($ millions) June 2017 June 2016 Net profit after tax (GAAP) 46.3 43.8 DEDUCT Profit (loss) from discontinued operations, net of income taxes (0.0) 0.2 ADD Income tax expense 10.4 10.5 ADD Net interest and finance costs 6.2 10.5 EBIT 62.9 64.9 ADD Depreciation and amo
Slide 8: Business of the Meeting: Chairman's address
Business of the Meeting > Item I Chairman’s address Chief Executive Officer’s address • The year in review • Update on our strategy • Outlook for this year • CEO appointment and strategic review • Questions and discussion Item II Consider the re-election of Guanglin (Alan) Lai as Chairman – Resoluti
Slide 9: Chairman's Address
Chairman’s Address Alan Lai Helping grow the country
Slide 10: Financial Performance
Financial Performance HIGHLIGHTS Operating Net Profit after tax Earnings per share (EPS) EBITDA of increased to increased to $64.5 m | | $46.3 m 6.1¢ per share Helping grow the country
Slide 11: Dividend per share for the year
3.75 ¢: per share for the year Helping grow the country
Slide 12: The year in review
a ‘ The year in review Mark Dewdney Helping grow the country
Slide 13: Financial Performance
Financial Performance HIGHLIGHTS Operating Net Profit after tax Earnings per share (EPS) EBITDA of increased to increased to $64.5 m | | $46.3 m 6.1¢ per share Helping grow the country
Slide 14: Go-Beef and Go-Lamb
Go-Beef and NZ$1.133 _e-Lamb billion. Helping grow the country
Slide 15: Property divestment programme and market share
Since 2015 we have realised, in cash from our property divestment programme (net book value of $29 million). its market share and makes ~ profitability gains. y | cto ee [beef and m nee Ze f stron J «ec Helping grow the country
Slide 16: Group Operating EBITDA
Group Operating EBITDA (June year end) $ million 64.5 • Operating EBITDA of $64.5 60 million achieved during the toughest trading conditions since 2013. 40 • Since 2013 PGW has 20 grown Operating EBITDA by 36 percent (8% CAGR). - 2013 2014 2015 2016 2017
Slide 17: Group Net Profit After Tax
Group Net Profit After Tax (June year end) $ million 50 46.3 • Net profit after tax increased to $46.3 million 40 • The 2016 and 2017 financial years benefited 30 from non-operating items including gains on sale of 20 property assets. 10 - 2013 2014 2015 2016 2017 * Excluding goodwill impairment, re
Slide 18: Agency Operating EBITDA
Agency Operating EBITDA (June year end) • Livestock business had record result. 40 $ million • Buoyant market for beef cattle continues. 30 • Ewes and lamb had strong 20 18.0 finish to the year. • Dairy herd activity picks up. 10 • Wool business impacted by falling prices. - 2013 2014 2015 2016 2017
Slide 19: Retail and Water Operating EBITDA
Retail and Water Operating EBITDA (June year end) • Retail continues to grow earnings. 40 $ million • Rural Supplies, Fruitfed Supplies (horticulture) 30 and Agritrade all increased their 20 18.3 contributions. • Water business impacted 10 by reduced demand for pivot irrigation - installations due t
Slide 20: Seed and Grain Operating EBITDA
Seed and Grain Operating EBITDA (June year end) 40 • New Zealand earnings 37.0 $ million impacted by extremely wet April that reduced the 30 grain harvest and made paddocks difficult to 20 regrass. • South America increased 10 earnings significantly. • Australia impacted by a - mild summer and falli
Slide 21: Helping grow the country
a J Helping grow the country
Slide 22: Update on our strategy
Update on our iniprove Grow Helping grow the country
Slide 23: Improve
Improve Our highly-competitive, volatile sector demands continuous improvement to stay ahead. • Organisation restructure • Property divestment programme/Capital reallocation • ‘One-PGW’
Slide 24: Grow
Grow With volatility comes opportunity – we need to stay nimble to invest in that opportunity. • Digital focus
Slide 25: Game-changers
Game-changers The world is changing – we must anticipate future customer needs and adapt our offering accordingly. • Go Products • Agri Optics
Slide 26: Group Operating EBITDA guidance range
Group Operating EBITDA (June year end, guidance range) • FY18 Operating EBITDA broadly similar to last year. $ million • Without the benefit of gains on sale of property, NPAT should reduce to 60 more normalised levels approximately 30% lower than last year. 40 • Commodity prices generally good for
Slide 27: Business of the Meeting
> Business of the Meeting Item I Addresses by the Chairman and the CEO Item II Consider the re-election of Guanglin (Alan) Lai as Chairman– Resolution 1 Item III Consider the re-election of Bruce Irvine as a Director – Resolution 2 Item IV Consider the election of Joo Hai Lee as a Director – Resolut
Slide 28: Questions and discussions
Questions and discussions Please wait for the microphone before addressing the room. Helping grow the country
Slide 29: Business of the Meeting - Resolutions
> Business of the Meeting - Resolutions Item I Addresses by the Chairman and the CEO Item II Consider the re-election of Guanglin (Alan) Lai as Chairman– Resolution 1 Item III Consider the re-election of Bruce Irvine as a Director – Resolution 2 Item IV Consider the election of Joo Hai Lee as a Dire
Slide 30: Business of the Meeting
> Business of the Meeting Item I Addresses by the Chairman and the CEO Item II Consider the re-election of Guanglin (Alan) Lai as Chairman– Resolution 1 Item III Consider the re-election of Bruce Irvine as a Director – Resolution 2 Item IV Consider the election of Joo Hai Lee as a Director – Resolut
Slide 31: Resolution 1: Guanglin (Alan) Lai Chairman
Resolution 1: Guanglin (Alan) Lai Chairman Alan Lai is a current Director and Chair of PGG Wrightson Limited and joined the PGG Wrightson Board on 30 December 2009. He was appointed Chairman on 22 October 2013. Alan retires by rotation in accordance with the Company’s Constitution, and being eligibl
Slide 32: Business of the Meeting
> Business of the Meeting Item I Addresses by the Chairman and the CEO Item II Consider the re-election of Guanglin (Alan) Lai as Chairman– Resolution 1 Item III Consider the re-election of Bruce Irvine as a Director – Resolution 2 Item IV Consider the election of Joo Hai Lee as a Director – Resolut
Slide 33: Resolution 2: Bruce Irvine Independent Director
Resolution 2: Bruce Irvine Independent Director Bruce Irvine is a current Director of PGG Wrightson Limited and is a member and Chair of the Audit Committee. He was appointed to the PGG Wrightson Limited Board on 24 June 2009. Bruce retires by rotation in accordance with the Company’s Constitution a
Slide 34: Business of the Meeting
> Business of the Meeting Item I Addresses by the Chairman and the CEO Item II Consider the re-election of Guanglin (Alan) Lai as Chairman– Resolution 1 Item III Consider the re-election of Bruce Irvine as a Director – Resolution 2 Item IV Consider the election of Joo Hai Lee as a Director – Resolut
Slide 35: Resolution 3: Joo Hai Lee Nominee for Director
Resolution 3: Joo Hai Lee Nominee for Director Joo Hai Lee was appointed as an Independent Director of Agria Corporation in November 2008. Mr Lee, aged 61, has more than 30 years experience in accounting and auditing. He was a partner of an international public accounting firm in Singapore until his
Slide 36: Business of the Meeting
> Business of the Meeting Item I Addresses by the Chairman and the CEO Item II Consider the re-election of Guanglin (Alan) Lai as Chairman– Resolution 1 Item III Consider the re-election of Bruce Irvine as a Director – Resolution 2 Item IV Consider the election of Joo Hai Lee as a Director – Resolut
Slide 37: Resolution 4: Auditor's remuneration
Resolution 4: Auditor’s remuneration Noting the automatic reappointment of KPMG as the Company’s auditor under section 207T of the Companies Act 1993, the proposed ordinary Resolution is to authorise the Directors to fix the auditor’s remuneration for the following year for the purposes of section 2
Slide 38: Business of the Meeting – Move resolutions
> Business of the Meeting – Move resolutions Item I Addresses by the Chairman and the CEO Item II Consider the re-election of Guanglin (Alan) Lai as Chairman– Resolution 1 Item III Consider the re-election of Bruce Irvine as a Director – Resolution 2 Item IV Consider the election of Joo Hai Lee as a
Slide 39: Business of the Meeting – Move resolutions
> Business of the Meeting – Move resolutions Item I Addresses by the Chairman and the CEO Item II Consider the re-election of Guanglin (Alan) Lai as Chairman– Resolution 1 Item III Consider the re-election of Bruce Irvine as a Director – Resolution 2 Item IV Consider the election of Joo Hai Lee as a
Slide 40: Helping grow the country
Helping grow the country
Slide 41: PGG Wrightson
——— PGG Wrightson Helping grow the country