Slide 1: 2011 Full Year Results Presentation
For personal use only 14 November 2011 2011 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 2011 to be held at 8.30am Eastern Daylight Time. The briefing will be webcast via the Company’s webs
Slide 2: Results for the 12 months to 30 September 2011
FY 2011 Presentation For personal use only Results for the 12 months to 30 September 2011
Slide 3: Key messages
Key messages For personal use only ■ FY11 Statutory results impacted by completed and pending divestment of unprofitable and cash consuming operations, particularly Forestry ■ Australian network operations have recorded strong improvement. The investment in staff and business transformation are star
Slide 4: 2011 Main Features
2011 Main Features Sales and underlying earnings improvement, borrowings reduced For personal use only ■ Statutory loss of $(395.3)m compared to 2010 loss of $(217.6)m ■ Non-recurring items of $(400.0)m, chiefly arising from Forestry exit ■ Continuing sales revenue up 16% to $2,263m ■ Underlying EBI
Slide 5: Underlying EBIT up from $2.6m to $33.7m
Underlying EBIT up from $2.6m to $33.7m Driven by Rural Service improvement and cost reductions For personal use only Movement in underlying EBIT $m + 6.3 $ million FY11 FY10 +0.3 Rural Services 25.0 0.5 Automotive 15.3 15.0 33.7 + 24.5 Corporate (6.6) (12.9) Total EBIT 33.7 2.6 2.6 FY10 Rural Servi
Slide 6: Profit and loss
Profit and loss Statutory result reflects impact of non-recurring items from forestry decision For personal use only Significantly improved underlying earnings $ million 2011 2010 Sales revenue from continuing operations 2,263.1 1,958.1 Underlying EBIT 33.7 2.6 Net underlying borrowing costs (26.6)
Slide 7: Reconciliation of statutory and underlying profit
Reconciliation of statutory and underlying profit Non-recurring items For personal use only $ million 2011 2010 Key items in FY11 Reported Loss after tax (395.3) (217.6) Non-recurring items: Rural Bank (22.3), ETG( -13.9), HiFert (-10.6,) Live export (-2.1) Rural Services (22.1) 12.8 Project costs (
Slide 8: Forestry assets
Forestry assets For personal use only Previous FY11 As at 30 $ million Book Value Adjustment September 11 Investment property* 255.7 (140.9) 114.8 Receivables ** 218.9 (156.3) 62.6 Own trees 27.2 (27.2) Other 29.8 (8.3) 21.5 Book Value 531.6 (332.7) 198.9 Onerous Contracts (11.8) (47.3) (59.1) Other
Slide 9: Cash flow
Cash flow Positive cash flow prior to Forestry For personal use only Total ex Rural $ million Total Forestry Auto Corporate Forestry Services Operating cash flow: before working capital 10.9 (29.0) 39.9 42.1 36.2 (38.4)* working capital movement (34.7) 0.2 (34.9) 17.4 (20.8) (31.5)** Total cash from
Slide 10: Key balance sheet items
Key balance sheet items Increased sales, prices and industry trends in working capital movements For personal use only $ million FY11 H1 11 FY 10 Inventory & livestock 241.6 303.6 226.0 Trade debtors 540.8 504.7 471.2 Trade creditors (433.9) (420.0) (357.0) Working capital 348.5 388.3 340.2 Cash 81.
Slide 11: Debt
Debt Total reduced 21%, core bank debt cut 39%; increased use of seasonal facility For personal use only $ million 30 September: 2011 2010 Core bank debt 274.1 313.7 Trade debtor financing 139.5 111.2 Other non bank debt 13.5 72.7 Gross debt 427.1 497.6 Debt related Derivatives - 17.6 Cash (81.6) (8
Slide 12: Seasonal and market conditions
Seasonal and market conditions Eventful first half set up favorable conditions for most agricultural sectors For personal use only ■ Divergent first half vs second half trends with dry south west WA the only constant ■ Strong summer rains replenished water supplies good crop planting, especially cot
Slide 13: Rural Services earnings
Rural Services earnings Strong network and cost improvement, offset in part by Trading and adverse Mark- to-Market For personal use only Underlying EBIT movement $ million + 3.3 +1.6 - 7.2 - 5.2 + 3.8 + 28.2 25.0 0.5 Underlying Australian New Trading Support Equity Mark to Underlying EBIT FY10 netwo
Slide 14: Network performance
Network performance Growth in sales, margin and improved cost to earn For personal use only FY11 vs FY10 Sales Gross Margin AgChem +17% +15% Fertiliser +22%1 + 32% Farm Supplies (total) +16% +17% Livestock +9% + 8% Wool +8 % + 17% Real Estate -8% - 5% Total Australian Network +13% + 11% Earn per emp
Slide 15: Trading performance
Trading performance Cattle-related business was down on live export restrictions, weather & AUD For personal use only ■ Revenue up but Gross Margin down $ million 2011 2010 – higher revenue ( +6%) due to NZ Wool & feedlots Sales revenue 471.9 446.5 – gross margin down 25% due to live export and feed
Slide 16: Network Related Equity Earnings
Network Related Equity Earnings Increased earnings contribution For personal use only Elders Insurance $ million 2011 2010 – overall Gross Written Premium and corresponding revenue consistent with Plan Elders Insurance 6.2 5.6 – prudent expense management Elders Financial Planning 0.5 0.3 – transi
Slide 17: Automotive operations
Automotive operations Results reflective of vehicle industry trends $ million 2011 2010 For personal use only ■ Sales and margin impacted by lower volumes Sales revenue 315.2 256.9 – Australian passenger vehicle build down 10% yoy; Futuris Auto EBIT 15.8 15.4 although some marques down by up to 50%
Slide 18: Automotive operations: Future growth secured
Automotive operations Future growth secured during FY10/11 Red – represents new Black – represents For personal use only incremental business replacement business contract secured from FY10 Brilliance Seating - end 2011 contract secured from FY10 onwards onwards JAC Seating - end 2010 GAC Gonow - Se
Slide 19: Forestry divestment
Forestry divestment Escalation of Staged Capital Release to total withdrawal from sector For personal use only ■ Announced Staged Capital Release program targeting selected assets in May ■ Decision on Oct 3 to extend to total withdrawal from Forestry as case for retention no longer measures up for E
Slide 20: FY12 Outlook
FY12 Outlook Conditions and momentum supporting positive start to FY12 For personal use only ■ Network – strong finish to winter cropping season – livestock markets and volumes very tight – broadacre real estate trending up – confidence levels rising in rural sector – appointment of Group General Ma