Slide 1: Welcome to the PGG Wrightson Limited Annual Shareholder Meeting
Welcome to the PGG Wrightson Limited Annual Shareholder Meeting Taradale, Hawkes Bay 2017 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 Trevor John Burt as Director – Resolution 1 Item III Consider the re-election of John Ernest Nichol as Director – Resolution 2 Item IV Note the r
Slide 3: Board of Directors
Alan Lai Trevor Burt Bruce Irvine Chairman Deputy Chairman Independent Director John Nichol Kean Seng U WK Tsang Ronald Seah Independent Director Independent Director
Slide 4: Chairman, Deputy Chairman and Management
Alan Lai Trevor Burt Bruce Irvine Chairman Deputy Chairman Independent Director Mark Dewdney Peter Scott Julian Daly Chief Executive Officer Chief Financial Officer GM Strategy & Corporate Affairs
Slide 5: Senior Management
Stephen Guerin John McKenzie Cedric Bayley GGM Retail & Water GGM Seed & Grain GM Wool Duncan Fletcher Regional Manager, Lower North Is.
Slide 6: Opening formalities
> Opening formalities • Notice of meeting • Minutes • Proxies • Annual Financial Statements Business of the Meeting Item I Addresses by the Chairman and the CEO Item II Consider the re-election of Trevor John Burt as Director – Resolution 1 Item III Consider the re-election of John Ernest Nichol as
Slide 7: Operating EBITDA Reconciliation
Operating EBITDA Reconciliation ($m) Jun-2016 Jun-2015 Net profit after tax (GAAP) 39.6 32.8 DEDUCT Profit from discontinued operations (net of income taxes) 0.2 (0.1) ADD Income tax expense 8.8 16.2 ADD Net interest and finance costs 10.5 10.8 ADD Depreciation and amortisation expense 9.2 7.9 EBITD
Slide 8: Business of the Meeting: Item I Addresses
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 • Questions and discussion Item II Consider the re-election of Trevor John Burt as Director – Resolution 1 Item III Consider the re-election of
Slide 9: Chairman's Address
Chairman's Address Alan Lai Helping grow the country
Slide 10: Operating EBITDA
OPERATING EBITDA OF +t FROM $69.6 MILLION FOR THE PRIOR YEAR Helping grow the country
Slide 11: Fully imputed dividends and net profit
FULLY IMPUTED DIVIDENDS OF 3.759 PER SHARE FOR THE YEAR NET PROFIT OF S 3 9. 6 A21% INCREASE ON THE PRIOR YEAR NET CASH FLOW FROM OPERATING ACTIVITIES IMPROVED 21% YEAR-ON-YEAR
Slide 12: Third consecutive year of Operating EBITDA growth
Third consecutive year of Operating EBITDA growth. Helping grow the country
Slide 13: The year in review
The year in review Mark Dewdney Helping grow the country
Slide 14: Operating EBITDA
OPERATING EBITDA OF 4 FROM $69.6 MILLION FOR THE PRIOR YEAR Helping grow the country
Slide 15: Third consecutive year of Operating EBITDA growth
Third consecutive year of Operating EBITDA growth. Helping grow the country
Slide 16: Fruitfed Supplies, Australian Seeds, New Seed & Grain facility
Fruitfed Supplies * Australian Seeds § New Seed & Grain revenue up Operating EBITDA up facility in Montevideo, $12.9 million § $2.7 million Uruguay Helping grow the country
Slide 17: New retail store, livestock transactions, redeveloped facilities
PEE. “'S ; New retail store Y 7.5 million Redeveloped in Blenheim ; head of livestockwere ~ Gisborne Maize iNew watersite transacted through facility the Livestock business in Rangiora ww Helping grow the country
Slide 18: Group Operating EBITDA
Group Operating EBITDA (June year end) 70.2 • The Group achieved $ million Operating EBITDA of over 60 $70.0 million for the first time since 2010. • PGW achieved its third 40 consecutive year of earnings growth. 20 • Since 2013 PGW has grown Operating EBITDA by around 50 percent. - 2011 2012 2013 2
Slide 19: Retail Operating EBITDA
Retail Operating EBITDA (June year end) • Retail Operating EBITDA $ million increased by 7 percent 40 year-on-year. 29.2 • Operating EBITDA has 30 increased 56% from 2011. 20 • Includes Fruitfed Supplies and Agritrade. 10 • Technical expertise key differentiator in - marketplace. 2011 2012 2013 2014
Slide 20: Seed & Grain Operating EBITDA
Seed & Grain Operating EBITDA (June year end) Seed & Grain (excl. Agrifeeds) Agrifeeds 44.6 • Earnings grew another 10 percent over the year $ million 40 • Strong NZ sales due to increased demand for 30 fodder beet • Australian business was the 20 star performer. 10 • South America business was nega
Slide 21: Livestock Operating EBITDA
Livestock Operating EBITDA (June year end) • Livestock business had $ million strong finish to year. 40 • Buoyant market for beef 30 cattle • Growing grazing business. 20 15.2 • Reduced international demand for live export 10 shipments. - • Another steady contribution 2011 2012 2013 2014 2015 2016
Slide 22: Other Rural Services Operating EBITDA
Other Rural Services Operating EBITDA (June year end) • Combined Operating EBITDA of the Other Rural $ million 40 Services businesses decreased by $3.2 million. • Real Estate earnings up 30 123 percent on last year. • Wool had a solid year with 20 earnings in line with last 8.6 year. 10 • Water was
Slide 23: Update on our strategy
Update on our strategy Improve Game - changers Helping grow the cour
Slide 24: Improve
Complete Tablets and apps with Livestock agents More apps for Retail field reps Blenheim store; Rangiora Water site Montevideo logistics center Gisborne grain facility Major HR information system upgrade Improve Corporate cost reallocation project In progress Realigned reporting stru
Slide 25: Grow
Market share Grow Online offering Adjacent markets
Slide 26: Game-changers
Game - changers Helping grow the country
Slide 27: Typical seasonality of financial results
Typical seasonality of financial results (indicative only) 30% 20% 10% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 0% Revenue Operating EBITDA
Slide 28: Group Operating EBITDA guidance range
Group Operating EBITDA (June year end, guidance range) $ million • FY17 guidance range of $62m to $68m 60 • Dairy sector confidence still a headwind for FY17 40 • GDT Prices have increased significantly since August, but still early in season. 20 • Weather and commodity prices key drivers of uncerta
Slide 29: Questions and discussions
Questions and discussions Please wait for the microphone before addressing the room. Helping grow the country
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 Trevor John Burt as Director – Resolution 1 Item III Consider the re-election of John Ernest Nichol as Director – Resolution 2 Item IV Note the reappointment of KPMG as auditor and authorise th
Slide 31: Item II: Trevor John Burt
Item II: Trevor John Burt Deputy Chairman • Trevor Burt is a current Director of PGG • In addition to chairing Ngai Tahu Holdings Wrightson Limited and joined the PGG Corporation Limited and Lyttelton Port Wrightson Board on 11 December 2012. Company Limited, Trevor is also a director on He was appo
Slide 32: Item III: John Ernest Nichol
Item III: John Ernest Nichol Independent Director • John Nichol is a current Director of PGG Products Limited, Craigpine Timber Limited, Wrightson Limited and is a member of the the New Zealand Dairy Board and The New Audit Committee. He was appointed to the Zealand Merino Company Limited. He has PG
Slide 33: Item IV: Auditors' remuneration
Item IV: Auditors’ remuneration • Note the reappointment of KPMG as auditor and authorise the Directors to fix the auditor’s remuneration.
Slide 34: Business of the Meeting – Resolutions
Business of the Meeting > Item II Consider the re-election of Trevor John Burt as Director – Resolution 1 > Item III Consider the re-election of John Ernest Nichol as Director – Resolution 2 > Item IV Note the reappointment of KPMG as auditor and authorise the Directors to fix the auditor’s remunera
Slide 35: Item V General business
Business of the Meeting > Item V General business
Slide 36: Thank you
Thank you Helping grow the country
Slide 37: PGG Wrightson
——— PGG Wrightson Helping grow the country