Elders Limited · ASX:ELD
Elders — UBS Small Caps Conference 2010
17 slides from Elders's conference presentation, Apr 21, 2010
Slide 1: Presentation to UBS Small Caps Conference 2010
For personal use only Presentation to UBS Small Caps Conference 2010 Elders Ltd March Quarter Update 21 April 2010 Malcolm Jackman Chief Executive Elders Limited The New Elders ASX ASXSmall SmalltotoMid MidCap CapConference ConferenceHong HongKong KongOctober October29292009 2009
Slide 2: Rebuilding the Company
Rebuilding the Company Over the last 18 months Elders has been refocussed and reinvigorated through action on 4 fronts For personal use only Corporate focus Agenda for Change Refocus resources & strategy, re-set reporting Effectively complete & structure and performance metrics and re-engage. Recapi
Slide 3: Growing the Company
Growing the Company The agenda has shifted from change to performance. The 4 Strategic Cornerstones of the new Elders are: For personal use only 3
Slide 4: Business Transformation Project
Business Transformation Project Improved financial performance in the medium term is the focus of 4 separate programs For personal use only Cash, Go to Supply Operational Costs Margin & Market Chain excellence Return gains Better sales performance Buying & moving Implementing Cost stock in the most
Slide 5: Rural Services margin targets
Rural Services margin targets Return to normal trading in FY10; business improvement gains from FY11 onwards For personal use only 2009 Current Year Medium term 7.0% 6.0% 2.2% ~ 2.2% ~ 5.0% 5.0% - to - to 3.2% ~ 6.0% 5.0% ~ 3.2% 6.0% 4.0% 3.0% 1.7% 2.8% 2.0% 1.0% The New Elders 0.6% ASX Small to Mid
Slide 6: 2010 seasonal conditions
2010 seasonal conditions the most positive in many years, renewed resources, feed, activity levels and confidence For personal use only Good March quarter rainfall ..followed by early rains in April Above average for most of eastern Australia Cropping activity underway with increasing Average
Slide 7: 2010 Farm supplies markets
2010 Farm supplies markets Markets now trending positively after first quarter dip For personal use only Fertiliser prices $/t $1,900 $1,700 Prices improving, volumes up, $1,500 % margin up $1,300 DAP Prices now trending up after Dec qtr decline $1,100 MAP $900 Volumes and orders rebounding: $70
Slide 8: Meat and livestock markets & conditions
Meat and livestock markets & conditions Prices recovered from first quarter slide, seasonal conditions positive for 2nd Half For personal use only Cattle prices EYCI $ 380 360 Agency in line with pcp. 340 320 Activity set to rise as autumn 300 rainfall benefits realised. 280 260 First half prices
Slide 9: Business Transformation update
Business Transformation update Progress made on all 4 programs in first half For personal use only Operational Go to Market Supply Chain Costs Excellence Reform of management Contracts for key categories Completed proof of Costs reduced further regions and development consolidated supported by c
Slide 10: Rural services inventory management
Rural services inventory management FY10 movements highlight capacity to control with flexibility to meet seasonal requirements For personal use only Value $‟000 250,000 200,000 150,000 Sept 09 level 100,000 50,000 0 Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar 07 07 08 08 08 08 0
Slide 11: Forestry
Forestry For personal use only Business now focussed on plantation establishment management, harvest and sale Timber processing assets sold FEA shareholding written down: $32 million non-recurring charge 2010 MIS sales: – Elders Forestry one of few remaining players – Conditional Term Sheet
Slide 12: Forestry Review
Forestry Review Comprehensive review in light of industry and company specific drivers For personal use only Acceleration and expansion of customary balance date reviews Ernst & Young will oversee reviews of asset values in light of current and anticipated developments – industry uncertainty – p
Slide 13: Futuris Automotive rebounding strongly
Futuris Automotive rebounding strongly For personal use only Automotive markets demonstrating “first in-first out” recovery pattern – Australian volumes commenced recovery December quarter – Chinese auto industry sales up 77% ytd – Other Asian markets recording recovery and growth Futuris Automo
Slide 14: Debt and finance
Debt and finance Operating according to plan For personal use only Debt, cash and metrics within covenants/headroom in period to 31 March – includes min. cash balance test Receivables securitisation to be included in net debt under AIFRS 2 but excluded from debt covenant calculations – no impact
Slide 15: Rural Service earnings targets and key drivers
Rural Service earnings targets and key drivers Management agenda addresses near, medium and long term growth targets that exist within our business and areas of interest For personal use only Longer term: Leverage Elders into strong FY11 on: regional and macro outlook 2 - 3 % Margin lift • Food & fi
Slide 16: Update summary
Update summary Momentum is building as the trend of recovery in seasons, markets and confidence continue For personal use only With the reformation complete, Elders‟ efforts has shifted to performance targets and improvement After tough first quarter, momentum has swung to the positive and stren
Slide 17: Presentation to UBS Small Caps Conference 2010
For personal use only Presentation to UBS Small Caps Conference 2010 Elders Ltd March Quarter Update 21 April 2010 Malcolm Jackman Chief Executive Elders Limited The New Elders ASX ASXSmall SmalltotoMid MidCap CapConference ConferenceHong HongKong KongOctober October29292009 2009