Elders Limited · ASX:ELD
Elders — Morgans Annual Queensland Conference 2015
27 slides from Elders's conference presentation, Oct 21, 2015
Slide 1: Presentation to Morgans Annual Queensland Conference
For personal use only 21 October 2015 Presentation to Morgans Annual Queensland Conference Attached is a presentation to be delivered today by Elders’ CEO Mark Allison to the Morgans Annual Queensland Conference. Peter Hastings Company Secretary 1
Slide 2: Morgans Investor Conference
For personal use only Morgans Investor Conference Mark Allison, MD & CEO Elders 21 October 2015
Slide 3: Agenda
For personal use only Agenda Overview of Elders FY15 Performance Growth Opportunities Five Agribusiness Megatrends Implications for Australian Agribusiness Implications for Elders
Slide 4: Elders Transformation
For personal use only Elders Transformation Then Now (2008) (2015) 2
Slide 5: Elders is…
For personal use only Elders is… Iconic Australian agribusiness Over 175 years old 2,000 employees 370 points of presence in Australia, Indonesia and China 3
Slide 6: Our Business Model
For personal use only Our Business Model Retail Feed & Live Agency Services Financial Products Processing Export Services Services Services ` Short haul livestock Long haul livestock Elders Indonesia Farm Supplies Killara Feedlot Elders China Real Estate Livestock Insurance Fertiliser Banking Grain
Slide 7: Proximity to Growth Markets
For personal use only Proximity to Growth Markets Key operations in China, ASEAN, North‐East Asia, and access to world markets Proximity to Asia provides opportunity to capitalise on growing middle class demand for premium agricultural products 5
Slide 8: Eight Point Plan
For personal use only Eight Point Plan Our strategic vision for becoming an efficient user of capital and a business that generates returns for its stakeholders 6
Slide 9: Progress on FY15 Priorities at Half Year
For personal use only Progress on FY15 Priorities at Half Year 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 effectiveness and branc
Slide 10: FY15: Half Year Financial Performance
For personal use only FY15: Half Year Financial Performance $ 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
Slide 11: Current Projects within Elders
For personal use only Current Projects within Elders Agronomic Meat Branding National Brand Centre of Project Campaign Excellence Conceptualised an industry Developing branded meat Addressing perceptions of leading platform for product lines for Elders through national agronomic best practice
Slide 12: Growth Opportunities
For personal use only Growth Opportunities Livestock Real Estate Acquisition Insurance Banking Vietnam China Farm supplies Grain Fertiliser Long haul Organic Wool Short haul Killara Indonesia Financial Planning Hold and Fix Controlled Growth 10
Slide 13: Opportunities and Challenges for the Industry
For personal use only Opportunities and Challenges for the Industry Australian Rural Industry has/is… ….Implication An aging workforce Requiring continued productivity gains to maintain competitive terms of trade Predominately export orientated Sector is reliant on the performance of global markets,
Slide 14: Five Megatrends impacting Australian Agriculture
For personal use only Five Megatrends impacting Australian Agriculture A hungrier world Population growth will drive global demand for food and fibre A bumpier ride Globalisation, climate A wealthier world change and A new middle class will environmental change increase food will reshape the risk co
Slide 15: A hungrier world
A hungrier world Rising population, increasing consumption, For personal use only shrinking agricultural land and water scarcity Growing population - 2.4 billion more people by 2050, World Population majority in Asia Billions 12 Population and income growth driving ~70% 10 increase in food deman
Slide 16: Industry implications: Increasing agricultural production and exports
Industry implications Increasing Agricultural production and For personal use only exports Increasing supply requires; Value of Australia’s Agricultural Exports ~90% improvement in crop $ billion yields Grains, oilseeds 70% Annual growth of 1.4% in & pulses livestock numbers and Beef & veal 75
Slide 17: A wealthier world
A wealthier world Domestic and international income growth For personal use only In the developing Asian region, GDP per capita, PPP 1.02 billion people will move out US$ of poverty and into the middle 80,000 class 70,000 Global average annual incomes are forecast to double by 2040 60,000 Incr
Slide 18: Industry implications: Diversifying exports and markets
Industry implications Diversifying exports and markets For personal use only Rapid growth in “other” Protein consumption agricultural segments, boutique Daily consumption of protein (grams per person per day) and specialised products Asia’s growing reliance on imports to meet increasing protein
Slide 19: Fussier customers
Fussier customers Health to become a prominent driver of food For personal use only choice and consumption patterns Informed - consuming becoming empowered with choice Selective – choosing specialised food and fibre to improve their health Knowledge sharing - information technology enabling co
Slide 20: Industry implications: Increased communication on origin and health
Industry implications Increased communication on origin, socially For personal use only responsible production and health benefits of products Achieve product differentiation by identifying and communicating health benefits Reduced fat Lowering cholesterol Added protein Weight control In
Slide 21: Transformative technologies
Transformative technologies Growth in a selection of key technologies, For personal use only including digital tech, genetic and material science, will change the way we operate Increasing use of robotics and Global production area for genetically modified crops automation Area (millions ha) Gen
Slide 22: Industry implications: Sophisticated decision-making tools
Industry implications Farmers will have sophisticated tools to For personal use only assist with decision making Farming going digital (less Comparison of apparel fibre consumption in developed and developing countries in 2010 muscle power and more brain power) Traceability and transparency - pu
Slide 23: A bumpier ride
A bumpier ride Farms will need to operate under increased For personal use only weather uncertainly with more droughts, floods, heatwaves and bushfires Challenges and risks likely to increasingly influence Australian Agriculture are: Climate change and extreme weather impacting on food production
Slide 24: Industry implications: Becoming more resilient
Industry implications Australian rural industries are having to For personal use only become more resilient Develop climate-resilient agriculture – production systems designed to anticipate, prepare for and respond to changes in climate Scenario planning - understand supply chain risks and build
Slide 25: Implications for Elders
Implications for Elders For personal use only Elders must: Invest in technical leadership in inputs (productivity growth) and consumer demand Provide lowest cost input options procurement e-channels Have customer anchors in ASEAN and China Be culturally diverse and have empathetic workfo
Slide 26: For personal use only
For personal use only
Slide 27: 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