Slide 1: Blue Ocean Equities Roundtable Presentation
For personal use only 18 March 2019 Blue Ocean Equities Roundtable Presentation Attached is a presentation being given today by Elders’ Chief Executive Officer, Mr Mark Allison, to an investor roundtable being hosted by Blue Ocean Equities. Peter Hastings Company Secretary 1
Slide 2: Elders Limited BOEQ Roundtable
For personal use only Elders Limited Mark Allison BOEQ Roundtable 18 March, 2019
Slide 3: Disclaimer and important information
Disclaimer and important information For personal use only Forward looking statements Non-IFRS information This presentation is prepared for informational purposes only. It contains This presentation refers to and discusses underlying profit to enable analysis forward looking statements that are sub
Slide 4: Agenda
Agenda For personal use only ▪ Business Model ▪ Financial Progress FY14 to FY19 ▪ Eight Point Plan to FY20 ▪ Balanced Growth to FY20 ▪ Strategic Gaps ▪ Summary
Slide 5: Business Model
Business Model For personal use only Digital and technical Feed and processing Retail products Agency services Real estate services Financial services services services Farm supplies Livestock Farmland Agri-finance Fee for service Killara Feedlot Fertiliser Wool Residential Insurance Auctions plus (
Slide 6: Elders Financial Progress FY14 to FY18
Elders Financial Progress FY14 to FY18 For personal use only Contributed by: ▪ Resetting of operational strategy, focusing on running a pure-play agribusiness. ▪ Favourable livestock prices. ▪ Footprint expansion, acquisitions and investments, such as: Ace Ohlsson, Titan Ag, SDEA, Kerr & Co, CGX, In
Slide 7: Eight Point Plan: years to FY20 goal
Eight Point Plan: 3 years to FY20 goal To deliver 5 – 10% quality growth through the cycles For personal use only EBIT FY17 to FY20 Livestock price Other market Organic (50%) Acquisition (50%) Cost (0%) FY20 FY17 normalisation movements ▪ Livestock prices expected to ease post FY17 ▪ Market share ga
Slide 8: Balanced growth plan to FY20
Balanced growth plan to FY20 For personal use only Organic Acquisition 50% Maintain Cost 50% ▪ Drive continuous business ▪ Continue to evaluate strategically ▪ Invest in resourcing to identify, improvement aligned opportunities to expand integrate and support both our business organic and acquisitio
Slide 9: Strategic Gaps
Strategic Gaps Stable platform geared for the next wave of growth, including 20 new branches by 2020 Key gaps in market, geographical, product and service areas to be For personal use only filled through organic growth and acquisition, with 20 new branches by 2020 Retail ▪ Increased market share and
Slide 10: APPENDIX
For personal use only APPENDIX 1
Slide 11: ABARES Seasonal Conditions & Outlook
ABARES Seasonal Conditions & Outlook For personal use only ▪ Summer crop: Widespread hot and dry conditions in ▪ Lower export volumes: Australian agricultural production and December 2018 and January 2019 are expected to have had a exports are expected to decline in 2018–19 as a result of dry negati
Slide 12: Retail: Seasonal conditions less favourable than pcp
Retail Seasonal conditions less favourable than pcp For personal use only Australian rainfall deciles for 6 months to February 2019 Rainfall deciles for 6 months to February 2019 Market • Rainfall over the summer cropping season (Oct – Feb 19) has been below average across the majority of Australia.
Slide 13: Cattle: Decline in cattle price, increase in cattle volumes
Cattle Decline in cattle price, increase in cattle volumes For personal use only Cattle Prices Indicator understanding • The EYCI measures the 7 day rolling average sale price of young cattle sold across 26 saleyards in QLD, NSW & VIC. • It excludes all cattle that does not meet the definition of yo
Slide 14: Sheep: Sheep prices increased, while volumes declined
Sheep Sheep prices increased, while volumes declined For personal use only Sheep Prices Indicator understanding • The ESTLI measures the price of lambs sold in Eastern states saleyards. • It excludes all sheep that do not meet the definition of a lamb and all sheep sold outside of the Eastern states
Slide 15: Wool: Increases in Wool Prices, offset by Volumes
Wool Increases in Wool Prices, offset by Volumes For personal use only Wool Prices Indicator Understanding • The Eastern Market Indicator (EMI) is based on a fixed basket of wool types, calculated daily. Market • Market prices have increased by 13% on pcp in the 5 months to Feb-19 Wool Volumes Marke
Slide 16: APPENDIX
For personal use only APPENDIX 2
Slide 17: Industry market and outlook
Industry market and outlook Agricultural Neutral ▪ The value of Australian agricultural production has increased steadily over recent years. It is estimated to be $58 billion in For personal use only production 2018-19, increasing to a forecast $71 billion in 2022-23. & exports ▪ Farm exports will g
Slide 18: Agricultural Production & Exports
Neutral Agricultural Production & Exports For personal use only ▪ The value of Australian agricultural production has increased steadily over recent years. It is estimated to be $58 billion in 2018-19, increasing to a forecast $71 billion in 2022-23. ▪ Farm exports will grow by $11 billion from 2015
Slide 19: Cattle Outlook
Neutral Cattle Outlook For personal use only ▪ In 2018-19, the cattle herd will continue ▪ Cattle prices are expected to decrease ▪ Live exports of Australian feeder and to decline with ongoing dry conditions in 2018-19 to a weighted average of slaughter cattle are forecast to increase resulting in
Slide 20: Sheep & Wool Outlook
Neutral Sheep & Wool Outlook For personal use only ▪ Dry seasonal conditions have resulted in ▪ Shorn wool production is projected to ▪ Assuming return to average seasonal higher rates of turn off & reduced spring decrease in 2018-19, due to a decline conditions in 2018-19, sheep and lamb lambings w
Slide 21: Dairy Outlook
Neutral Dairy Outlook For personal use only ▪ Global dairy prices are expected to fall in ▪ Australian herd numbers are expected to ▪ Australian milk production is expected to 2018-19, following increases in milk decrease in 2018-19 reflecting poor fall by 4% in 2018-19, due to low farm-gate product
Slide 22: Grains and Oilseeds Outlook
Neutral Grains and Oilseeds Outlook For personal use only ▪ Grain and oilseed prices are expected to ▪ Planted area to wheat and barley has ▪ Production of wheat, barley and coarse rise across the board in 2018-19, typically fallen in 2018-19, due to poor seasonal grains is expected to decrease in 2
Slide 23: Sugar and Cotton Outlook
Neutral Sugar and Cotton Outlook For personal use only ▪ The planted area to sugar is ▪ Sugar production is projected to ▪ Cotton production is forecast to expected to remain largely marginally increase in 2018-19 and decrease by 42% in 2018-19 reflecting unchanged due to limited suitable remain at
Slide 24: Horticulture Outlook
Neutral Horticulture Outlook For personal use only ▪ The gross value of horticulture production is projected to increase marginally from $10.7 billion in 2017-18 to $10.9 billion in 2018-19, underpinned by growing domestic demand for fresh produce and favourable export opportunities. ▪ China was the
Slide 25: For personal use only
For personal use only