Slide 1: PGG Wrightson Limited Annual Meeting 2007
Slide 2: Bill Baylis, Chairman
Bill Baylis Chairman PGG Wrightson
Slide 3: Barry Brook, Chief Executive Officer
Barry Brook Chief Executive Officer
Slide 4: Overview
Overview • Operating conditions • Financial performance • Operating performance – Rural Services – Financial Services – Technology Services • The future
Slide 5: Operating Conditions
Operating Conditions • Rising NZ dollar • Reductions in product prices • Impact on farmer confidence • Reduced farm investment • Later… – Improved economic climate for dairy farmers – Food prices driven up by global influences – No positive flow on to meat and horticultural product prices yet
Slide 6: Financial Performance
Financial Performance $ Million 2007 2006 Revenue 1,035 848 NPATA 41.4 37.6 NPAT 26.2 27.0 EBITA 63.8 54.5 Operating cashflow 41.1 12.4
Slide 7: Business Group Earnings
Business Group Earnings $ Million 2007 2006 Rural Services 26.8 30.0 Technology Services 32.8 24.1 Financial Services 17.6 15.2 Corporate Costs (13.4) (14.9) TOTAL 63.8 54.4
Slide 8: Balance Sheet
Balance Sheet $ Million 2007 2006 Assets 1,150 1,120 Liabilities 736 709 Total debt 305 268
Slide 9: PGG Wrightson
PGG Wrightson
Slide 10: Rural Services
Rural Services Livestock • Reduced sheep tallies and prices • Market share stable • Velvet and standardbred performed well Wool • Improved market share • Farmers retaining wool for better prices • Lower volume sold Rural Supplies • Sales maintained in competitive market • Margins squeezed • Signific
Slide 11: Rural Services
Rural Services Fruitfed Supplies • Continued strong performance • Maintained market share and margin • Acquired Shepherds AgHort Supplies Irrigation and Pumping • Exceeded expectations
Slide 12: Financial Services
Financial Services PGG Wrightson Finance • Loan portfolio expanded 22% to $402m • Client understanding and knowledge • New products for specific client needs Real Estate • Increased market share • Australian branch established • TradeMe marketing connection • Partnership with Savills plc in UK Insur
Slide 13: Financial Services
Financial Services Funds Management • Establishment of NZ Farming Systems Uruguay • $170m raised in IPO and placement • Significant fees to PGW from commercial contracts • Rapid progress with implementation
Slide 14: Technology Services
Technology Services Seeds & Grain • Proprietary seed sales positive • Growth in turf and grain sales • Increased sales in Australia despite drought • Acquired Auswest Seeds South America • Record proprietary seed sales in South America • Increases in Chile and Argentina • Acquired – 51% shareholding
Slide 15: Technology Services
Technology Services Research • Partnership with Crop and Food Research Animal Nutrition (Agri-feeds) • Time Capsule manufacturing facility commissioned • Acquired 4 Seasons molasses business Agriculture NZ • Exceeded expectations Animal Health • Improved consultancy business • Acquired Fecpak
Slide 16: The Future
The Future • PGW a serious player on world stage • Just the beginning… • Entering a golden period of NZ agriculture • Growth in Asian demand for animal protein • More US land switching to ethanol • Farmers using grassfed systems will benefit – in New Zealand – in South America
Slide 17: The Future
The Future • Changes in New Zealand too • Opportunities from dairy boom • Farm businesses are larger • Specialisation growing trend • Our priority is to meet needs of customers
Slide 18: Slide 18