Elders Limited · ASX:ELD
Elders — FY2012 Earnings Presentation
19 slides from Elders's earnings presentation, Nov 19, 2012
Slide 1: 2012 Full Year Results Presentation
19 November 2012 2012 Full Year Results Presentation Attached is a presentation to be made at the briefing today on Elders Limited’s results for the full year ended 30 September 2012 to be held at 9.00am Eastern Daylight Time. The briefing will be webcast via the Company’s website at www.elderslimit
Slide 2: FY 2012 Presentation
FY 2012 Presentation Results for the 12 months to 30 September 2012 19 November 2012
Slide 3: Key messages
Key messages 2012 has been an important year for Elders ■ Improved overall business performance ■ Continued progress on debt reduction ■ Decision to undertake accelerated return of value to stakeholders An accelerated return of value to stakeholders is the preferred strategy ■ Continued agriculture
Slide 4: FY12 results overview
FY12 results overview Improved underlying EBIT in Rural Services and Automotive ■ Statutory loss of $(60.6m) compared to 2011 loss of $(395.4m) ■ Items excluded from underlying profit $(73.8m) ■ Continuing sales revenue down 5% to $2,157.9m ■ Underlying EBIT up 20% to $38.8m ■ Underlying PBT up 30%
Slide 5: Profit and loss
Profit and loss Year on year comparison of profit and loss $ million FY12 FY11 Sales revenue from continuing operations 2,157.9 2,263.1 Underlying EBIT 38.8 32.4 Net underlying finance costs (20.7) (18.5) Underlying profit before tax 18.1 13.9 Tax on underlying profit (1.7) (1.6) Non-controlling int
Slide 6: Underlying EBIT up 20% from $32.4m to $38.8m
Underlying EBIT up 20% from $32.4m to $38.8m Driven by Rural Services and Automotive Underlying EBIT $m 40.0 $ million FY12 FY11 0.1 38.8 1.7 Rural Services 29.5 24.9 38.0 4.6 Automotive 18.5 16.8 36.0 Corporate (9.2) (9.3) Total Underlying EBIT 38.8 32.4 34.0 32.4 32.0 30.0 F11 Full Year Rural Serv
Slide 7: Reconciliation of statutory and underlying profit
Reconciliation of statutory and underlying profit Items excluded from underlying profit $ million FY12 FY11 Key items in 2012 Reported profit/(loss) after tax to shareholders (60.6) (395.4) Items excluded from underlying profit: Discontinued operations including BWK and Seedmark, impairments Rural S
Slide 8: Key balance sheet items
Key balance sheet items $ million FY12 H1 12 FY11 Comments on Variance Inventory & livestock 234.4 263.2 241.6 (7.2) Lower farm supplies offset by higher live export cattle / Auto Trade and other receivables 498.0 520.4 540.8 (42.8) Lower livestock agency turnover, timing of live export shipments, A
Slide 9: Net debt
Net debt Continued focus on core debt reduction ■ Core net debt is now sub $100m, at $96.1m ■ Core net debt gearing ratio reduced to 17% ■ Self-liquidating facilities increased to $199.2m Core Net Debt Gearing % $ million FY12 H1 12 FY11 A$m Core Net Debt 250 40% Term Debt 88.1 164.7 180.9 34% Revol
Slide 10: Cash flow
Cash flow Strong operating cash flows from Rural Services and Automotive Total ex Rural $m to 30 September Total Forestry Auto Corporate Forestry Services Operating cash flow - before working capital 95.8 (14.8) 110.6 52.4 48.4 9.8 - working capital movement (93.3) (41.2) (52.1) (3.0) (24.1) (25.0)
Slide 11: Rural Services seasonal and market conditions
Rural Services seasonal and market conditions Dry last quarter impacted agency operations Australian Network - Widespread rainfall in H1 but in H2 most regions across eastern, southern and western Australia encountered “below average” to “very much below average” rainfall - This led to weaker demand
Slide 12: Rural Services underlying EBIT movement
Rural Services underlying EBIT movement Rural Services Underlying EBIT $m $ million FY12 FY11 35.0 Australian Network 37.1 59.0 30.0 12.8 29.5 New Zealand Network (1.5) (2.9) 24.9 21.9 25.0 Trading 17.6 7.1 1.0 20.0 2.8 Equity Earnings 14.1 11.3 10.5 15.0 sub-total 67.3 74.5 10.0 Support Centres (43
Slide 13: Australian network performance
Australian network performance Agency operations impacted by seasonal conditions FY12 vs FY11 Sales Revenue $m Gross Margin $m Farm Supplies 2% 0% Livestock agency -11% -14% Wool agency -9% -17% Real Estate -6% -5% Banking distribution -3% -4% Others -12% -22% Total Australian Network 0% -7% 12
Slide 14: Trading performance
Trading performance Strong improvement in operations Live Exports $ million FY12 FY11 ■ Short-haul volumes up 23% Sales revenue 446.7 471.9 ■ Long-haul volumes up 28% Gross margin 39.6 27.8 ■ Strong demand from China for dairy cattle and Russia Costs (22.0) (20.7) for breeding cattle continues EBIT
Slide 15: Automotive results
Automotive results Revenue maintained in challenging market conditions ■ Business continues to reorientate to global $ million FY12 FY11 manufacturing model with emphasis on China, 344.7 Sales revenue 315.2 Thailand and USA Gross Margin 64.6 66.4 ■ Australia: Continues to react to changing business
Slide 16: Rural Services key marketing themes
Rural Services key marketing themes ■ Iconic brand with longstanding client relationships ■ Global network of trading relationships ■ Strong industry fundamentals through proximity to burgeoning Asian middle class ■ Clear and tangible business growth opportunities ■ High quality and dedicated staff
Slide 17: Futuris Automotive key marketing themes
Futuris Automotive key marketing themes ■ Leading global innovator and solutions provider ■ Strong growth opportunities ■ Excellent manufacturing and production capability ■ Major global OEM customer base ■ Highly credentialed management ■ Attractive financial performance ■ Attractive market sector
Slide 18: Progress on Forestry asset divestment
Progress on Forestry asset divestment Assets sold Ongoing divestments Sandalwood estate: Negotiations well advanced for the sale of 2,100ha Net proceeds of $101.4m during FY12 from sale of standing timber and 1,400ha of land subject to grower vote and of: regulatory approvals • 12,400ha of freehold
Slide 19: Summary
Summary ■ Business continues to improve in challenging market conditions including high AUD ■ Interest in Elders Rural Services, combined with Futuris Automotive sale process and Forestry divestment creates opportunity to accelerate returns to stakeholders ■ A disciplined sales process will maximise