Elders Limited · ASX:ELD
Elders — Investor Presentation (June 2016)
36 slides from Elders's investor presentation, Jun 17, 2016
Slide 1: Capital Raising Presentation correction
For personal use only 17 June 2016 Capital Raising Presentation correction Attached is an updated copy of the Capital Raising Presentation delivered to the ASX earlier this morning, which now corrects an error to the Record Date on page 14 from “21 June 2015” to “22 June 2016”. The indicative timeta
Slide 2: Capital Raising Presentation
For personal use only Capital Raising Presentation 17 June 2016 • Placement and 1 for 4 Non-Renounceable Rights Issue • On-market acquisition of all Non-controlled ELDPA Hybrids Not for release or distribution in the United States of America
Slide 3: Disclaimer
Disclaimer For personal use only This presentation (“Presentation”) has been prepared by Elders Limited ACN 004 336 636 (“Elders”). Summary information This Presentation contains summary information about Elders and its activities current as at 17 June 2016. The information in this Presentation does
Slide 4: Disclaimer
Disclaimer For personal use only Future performance This Presentation contains certain forward looking statements and comments about future events, including Elders' expectations about the performance of its businesses. The words anticipated, expected, projections, forecast, estimates, could, may, t
Slide 5: Disclaimer – International Offer Restrictions
Disclaimer For personal use only International Offer Restrictions This document does not constitute an offer of new fully paid ordinary shares (“New Shares”) in Elders in any jurisdiction in which it would be unlawful. New Shares may not be offered or sold in any country outside Australia or New Zea
Slide 6: Disclaimer
Disclaimer For personal use only Singapore For the attention of Singapore investors This document has not been registered as a prospectus with the Monetary Authority of Singapore under the Securities and Futures Act (Chapter 289) of Singapore ("SFA"). Accordingly, this document and any other documen
Slide 7: Transaction Details
For personal use only Transaction Details 5
Slide 8: Transaction overview
Transaction overview For personal use only Elders Limited (“Elders” or the “Company”) is undertaking a fully underwritten $102.4 million capital raising of fully paid ordinary shares in Elders (“New Shares”) at $3.40 per New Share consisting of: $25.0 million Placement to institutional investors
Slide 9: Key highlights for shareholders
Key highlights for shareholders For personal use only Substantial removal of Hybrids in line with planned simplified capital restructure Strengthened balance sheet with additional equity and improved leverage ratio Not for release or distribution in the United States of America Leverage ratio
Slide 10: Key highlights for Hybrid holders
Key highlights for Hybrid holders For personal use only Cash offer available to all Hybrid holders immediately Simple structure – sell on market and receive proceeds in 2 business days Not for release or distribution in the United States of America $95.00 per Hybrid offer price represents: 6
Slide 11: Strengthened balance sheet
Strengthened balance sheet For personal use only Strengthened balance sheet brings leverage ratio closer in line with peers Not for release or distribution in the United States of America Targeting future Net Debt/EBITDA in range of 2.0-2.5x Targeting interest coverage to exceed 5.0x (EBIT/int
Slide 12: Franked dividends for FY17
Franked dividends for FY17 For personal use only Intend to recommence payment of dividends for FY17 1 Targeting a payout ratio of up to 35% of underlying NPAT on an annualised basis Not for release or distribution in the United States of America Dividend to be fully franked in the short term –
Slide 13: Investing in growth
Investing in growth For personal use only Strengthened balance sheet increases the capacity to invest in organic and acquisition growth Focus on areas of core strength Priority growth areas – Real Estate, Livestock, Financial Services, capital light Retail Not for release or distribution in th
Slide 14: Focused on delivering shareholder value
Focused on delivering shareholder value For personal use only Pre hybrid After hybrid Criteria 2013 acquisition acquisition Profitable Not for release or distribution in the United States of America Focused business strategy Balance sheet strength Simplified capital structure
Slide 15: Capital Raising
For personal use only Capital Raising 13
Slide 16: Capital raising overview
Capital raising overview For personal use only Fully underwritten $102.4 million capital raising at $3.40 per New Share used to fund the on-market offer to purchase all Non-controlled Hybrids 1 Placement of 7.35 million shares at an offer price of $3.40 per New Share to raise $25.0 million Placeme
Slide 17: Capital structure pro-forma
Capital structure pro-forma For personal use only ASX Code ELD ELDPA Currently on issue 83,734,671 1,500,000 Not for release or distribution in the United States of America Placement shares 7,350,000 - Rights Issue shares 1 22,771,168 - Currently held by Elders Finance - (375,000) On-market acquisit
Slide 18: Indicative timetable
Indicative timetable For personal use only Event Date Trading halt announced for ELD and ELDPA Wednesday, 15 June 2016 Placement completed, capital raising announced, on-market Hybrid Acquisition placed Friday, 17 June 2016 for ELDPA and shares recommence trading Not for release or distribution in t
Slide 19: Key Risk Factors
For personal use only Key Risk Factors 17
Slide 20: Key risk factors
Key risk factors For personal use only • Introduction – Before applying for New Shares, applicants should consider whether the New Shares are a suitable investment having regard to their own personal circumstances. Applicants should be aware that there are risks associated with an investment in the
Slide 21: Key risk factors
Key risk factors For personal use only Hybrid preference on winding up: As detailed in the Hybrid terms, on the winding up of Elders each Holder will in respect of each Hybrid held by the Holder be entitled to be issued a Preference Share and has a right to the Debt Portion. This or the notional e
Slide 22: Key risk factors
Key risk factors For personal use only • Risks associated with Elders' business Competition: Elders faces competition in the markets in which it operates. Competition may affect the cash flow and earnings which Elders will realise from its operations. Loss of key personnel: Elders' profitability
Slide 23: Key risk factors
Key risk factors For personal use only • Risks associated with the Offer Market risk: The market price of Elders' shares may fluctuate due to various factors including those outlined above. The above factors are not an exhaustive list of the risks faced by Elders or by investors in Elders. The abo
Slide 24: Appendix
For personal use only Appendix 22
Slide 25: Our journey
Our journey For personal use only FY08 to FY13 – Survival Deleveraging debt through divestment of non-core assets Not for release or distribution in the United States of America FY13 to FY15 – Turnaround Focus on core agribusiness Eight Point Plan embedded Board and leadership refresh
Slide 26: Elders today
Elders today For personal use only Focused Australian agribusiness Iconic Australian agribusiness Over 177 years old Not for release or distribution in the United States of America 1,800 employees 440 points of presence across Australia, Indonesia, Vietnam and China Diversified revenue str
Slide 27: Business model
Business model For personal use only Feed & Retail Financial Live Export Agency Services Processing Products Services Services Services ` Not for release or distribution in the United States of America Short haul livestock Long haul livestock Elders Indonesia Farm Supplies Killara Feedlot Elders Chi
Slide 28: Product by Market gap analysis
Product by Market gap analysis For personal use only Key growth potential by product and markets Product / Farm Fee for Fertiliser Livestock Wool Grain Real Estate Banking Insurance Market Supplies Service Broadacre cropping Not for release or distribution in the United States of America Sugar cane
Slide 29: Product by Geography gap analysis
Product by Geography gap analysis For personal use only Key growth potential by product and geography Product / Farm Real Fee for Fertiliser Livestock Wool Grain Banking Insurance Fine Food Geography Supplies Estate Service Northern Territory Not for release or distribution in the United States of A
Slide 30: Pro-forma Balance Sheet
Pro-forma Balance Sheet For personal use only Pro-forma Elders Net proceeds Balance Sheet As at Insurance from capital Acquisition as at Basis of Preparation $ million 31 March 2016 Acquisition raising of Hybrids 31 March 2016 Current assets The Pro-forma Balance Sheet has been prepared for illustra
Slide 31: Profit sensitivity
Profit sensitivity For personal use only Underlying NPAT $(10m) $(7.5m) $(5m) $(2.5m) NPAT +$2.5m +$5m +$7.5m +$10m Sheep price -$20 -$10 +$10 +$20 Cattle price Not for release or distribution in the United States of America -$100 -$50 +$50 +$100 Sheep volume -1m head -500k head +500k head +1m head
Slide 32: Points of presence
Points of presence For personal use only Elders’ footprint in Australian agriculture Not for release or distribution in the United States of America • Over 440 points of presence in Australia and overseas including full service branches, real estate and insurance franchises • Key produce areas cover
Slide 33: Glossary
Glossary For personal use only Term Meaning The allocation policy is that each eligible shareholder that takes up their entitlement in full will be allocated additional New Shares for which the eligible shareholder subscribes under the top-up facility that is the lesser of: (a) the number of additio
Slide 34: Glossary
Glossary For personal use only Term Meaning Preference Share Has the meaning set out in the “Futuris Hybrids replacement prospectus” dated 28 February 2006 Return on capital ROC ROC = Underlying EBIT / (working capital + investments + property, plant and equipment + intangibles (excluding brand name
Slide 35: Corporate information
Corporate information For personal use only Elders Limited Not for release or distribution in the United States of America ACN 004 336 636 Level 10 80 Grenfell Street Adelaide SA 5000 Telephone: (08) 8425 4000 Website: www.elderslimited.com Further information Media enquiries Mark Allison Richard Da
Slide 36: For personal use only
ive it. —_l Ajuo esn jeuosied 105