Slide 1: 2015 Half-Year Results Investor Presentation
For personal use only 18 May 2015 2015 Half-Year Results Investor Presentation Attached is the investor presentation in connection with the financial results for the 6 month period ended 31 March 2015. Elders CEO, Mark Allison, and CFO, Richard Davey, will deliver this presentation by webcast and si
Slide 2: 2015 Half year results presentation
For personal use only 2015 Half year results presentation 18 May 2015 0
Slide 3: Disclaimer and Important Information
Disclaimer and Important Information For personal use only Forward looking statements This presentation is prepared for informational purposes only. It contains forward looking statements that are subject to risk factors associated with the agriculture industry many of which are beyond the control o
Slide 4: FY15 Half Year Overview
FY15 Half Year Overview Solid improvement across key performance targets For personal use only Statutory net profit after tax of $15.9m up $26.1m Underlying net profit after tax of $16.2m up $11.2m Underlying EBIT of $21.9m up $8.4m Positive operating cash flow of $8.3m generated at the half
Slide 5: Progress on FY15 Priorities
Progress on FY15 Priorities Key priorities on track For personal use only Safety Operational Key Efficiency and Performance Performance Relationships Growth Continued emphasis on safety $16.2m underlying profit up Maintain high levels of Completed a comprehensive $11.2m employee effectivenes
Slide 6: Half Year Financial Performance
Half Year Financial Performance For personal use only $ million 1H FY15 Change 1H FY14 Sales revenue 645.2 13.8 631.4 Underlying EBIT 21.9 8.4 13.5 Underlying finance cost (4.9) 2.6 (7.5) Underlying profit after tax 16.2 11.2 5.0 Reported profit / (loss) after tax 15.9 26.1 (10.2) Net debt (86.8) 14
Slide 7: Performance by Product
Performance by Product Diversified product offering with strong Agency performance For personal use only Underlying profit movement $ million Product margin 0.2 (0.4) 2.6 1.6 (0.2) 1.6 5.5 16.2 0.3 5.0 1H FY14 Retail Products Agency Financial Feed & Live Export Costs Interest Tax & NCI 1H FY15 Under
Slide 8: Performance by Geography
Performance by Geography Uplift across all geographical areas For personal use only Underlying profit movement $ million 0.2 2.1 (2.6) 2.6 0.8 3.9 16.2 4.2 5.0 1H FY14 Northern Southern Western International Functional and Interest Tax & NCI 1H FY15 Underlying Australia Australia Australia Technical
Slide 9: Capital Deployed
Capital Deployed Significant improvement in return on capital For personal use only Return on Capital ROC improvement drivers: Agency growth requiring minimal 17% capital 13% Stronger bias to short haul Live Export business with shorter capital -9% cycle Capital allocation based on business
Slide 10: Cash Flow
Cash Flow Positive operating cash flow generated For personal use only Strong operating EBITDA cash flow 1H FY15 operating cash flow $ million generated during the period (9.4) Working capital cash flow: Higher Retail debtors since 27.7 (7.7) September 2014 3.7 (6.0) Increased inventory in L
Slide 11: Net Debt
Net Debt Normalised debt levels going forward For personal use only Net debt Facility balance at 31 March 2015 $ million $ million 255.2 Farm Supplies receivables 236.6 Working capital funding Undrawn $110m facilities 149.4 137.6 facilities 38% 123.6 $179m 86.8 61% Term debt 125.6 143.8 118.3 113.6
Slide 12: Capital Structure
Capital Structure Stabilised capital structure For personal use only The refinance and recapitalisation completed in October 2014 have created a pathway for financial stability for Elders Liquidity pressure is no longer a constraint on the operations of the business Immediate priority is to em
Slide 13: Eight Point Plan Progress
Eight Point Plan Progress Strong start to 3 year operating plan - initiatives on track For personal use only Branch improvement program Branchise program alignment Wholesale farm supplies business commenced Safety culture change program “Stand Up Speak Up” • •• ••• Margin management progra
Slide 14: Eight Point Plan Step by Step
Eight Point Plan Step by Step On track to deliver expected FY17 operating plan For personal use only EBIT opportunity pools $ million • Killara at 90% occupancy • Capital city relocations for Melbourne (1H FY14 74%) and Brisbane complete. Adelaide move • 8 real estate agents employed (target • China
Slide 15: Outlook
Outlook Positive operating conditions for remainder of financial year For personal use only Retail: Average rainfall conditions over the winter cropping season Agency: Cattle and sheep prices are expected to remain strong supported by robust demand, tight supply and a low AUD. Supply is expect
Slide 16: Appendix to Half Year Results Presentation
For personal use only Appendix to Half Year Results Presentation 14
Slide 17: Business segmentation
Business segmentation For personal use only Northern Southern Western International 1H FY15 Working $ million Australia Australia Australia Geographies Margin Capital Retail Products Fertiliser and Farm Supplies 46.5 132 Agency Services Livestock, Wool, Real Estate and Grain 66.9 19 Financial Servic
Slide 18: Business performance by product
Business performance by product For personal use only Margin growth by product $ million 1H FY14 1H FY15 Retail: Dry conditions in Q1 offset +9% by increased rainfall in Q2 driving 66.9 winter cropping campaigns +1% 61.4 46.2 46.5 Agency: Increase in livestock prices through strong live export d
Slide 19: Business performance by geography
Business performance by geography For personal use only Margin growth by geography $ million 1H FY14 1H FY15 North: Improvement in livestock +7% and Killara earnings with stable +4% 58.0 61.8 Retail performance 47.0 48.9 South: Increase in Livestock and +10% Retail margin with good seasonal 19.3
Slide 20: For personal use only
For personal use only