Slide 1: 2010 Half Year Results Presentation
For personal use only 17 May 2010 Company Annoucements Office Australian Securities Exchange 2010 Half Year Results Presentation Attached is a presentation to be made at the briefing on Elders Limited’s results for the half year ending 31 March 2010 at 9.00am Eastern Standard Time today. The briefin
Slide 2: H1 2010 Results presentation
For personal use only H1 2010 Results for the six months to 31 March 2010 Results presentation 17 May 2010
Slide 3: 2010 First half main features
2010 First half main features Improvement and momentum across the business For personal use only Underlying EBIT of $21.3 million up from pcp of $1.6 million Underlying net profit after tax of $1.1 million up from pcp loss of $(21.8) million Non-recurring items of $(167.0) million after tax
Slide 4: Profit and loss
Profit and loss Significantly improved NPAT and EBIT For personal use only $ million H1 10 PCP 09 Sales revenue from continuing operations 1,042.7 1,009.1 Underlying EBIT 21.3 1.6 Net interest cost (14.9) (31.3) Underlying profit before tax 6.4 (29.7) Tax (2.1) 7.6 Non-controlling interests (3.2) 0.
Slide 5: Non-recurring items
Non-recurring items Principally arising from Forestry Review For personal use only $ million Pre-tax Post-tax Forestry Asset Review (134.6) (131.0) Net writedown of assets to be divested or discontinued (18.0) (18.0) Non-completion of SmartFibre sale (6.8) (6.8) Loss/Gain on divested assets (1.4) (1
Slide 6: Underlying earnings by business unit
Underlying earnings by business unit First half earnings growth principally sourced from automotive recovery, interest and cost reductions For personal use only $ million H1 10 PCP 09 Movement Key result drivers Rural Services EBIT 12.6 13.2 -0.6 Margin cost and volume improvement offset impact of
Slide 7: Cash flow from operations
Cash flow from operations Whole-of-business focus delivers improved cash generation For personal use only $ million H1 10 PCP 09 Movement Rural Services 9.9 (68.2) +78.1 Forestry (2.8) (26.5) +23.7 Automotive 22.7 12.3 +10.4 Corporate & other (36.2) (45.5) +9.3 (ex trade debtor financing) Operating
Slide 8: Balance sheet items
Balance sheet items $ million March 10 Sept 09 For personal use only Inventory 302.7 296.3 Trade debtors 401.1 323.1 Trade creditors 353.8 362.7 Working capital 350.0 256.7 Cash: unrestricted 79.0 367.4 Cash: total 83.6 367.9 Long standing program brought on balance sheet as Trade debtor financing 8
Slide 9: Finance
Finance Proceeding according to plan For personal use only Operating within covenants Trade debtor financing excluded from covenant metrics Operating on commercial basis as evidenced by Killara transaction De-leveraging available from 30 September 2010 subject to satisfaction of metrics Marc
Slide 10: Rural Services Scorecard
Rural Services Scorecard Improvement in % margins, cash and costs Movement between March 09 and March 10 in: For personal use only Sales Revenue Gross Margin Gross Margin % What happened $ Network 13% (- $80.6m) 3% (-$4.1m) 2.5% Strong rebound in volumes offset by lower farm supply prices (A
Slide 11: Australian Network
Australian Network Increased contribution despite significant price disadvantage For personal use only $ million H1 10 PCP 09 Change Sales revenue 522.6 603.2 -13% Increased contribution despite 13% lower sales revenue Gross margin 124.5 128.6 - 3% Impacted by lower prices eg average prices: Cos
Slide 12: A closer look at Rural Services performance
A closer look at Rural Services performance... Second quarter momentum evident in key EBIT measures For personal use only Australian Network contribution ($m) Meat and livestock contribution ($m) 20 12.0 16 8.0 12 FY09 8 FY09 4.0 1.2 FY10 FY10 10.1 9.0 4 0.0 10 13 12 16 -3.1 0 -4.0 Dec Qtr March Qtr
Slide 13: Network quarterly performance
Network quarterly performance… Strong rebound in farm supply % margins & volumes For personal use only Key farm supply margins benefitting from supply chain reforms Network gross margins 20% 25.0% Ag-chem 16% 23.0% Fertiliser 15.4 12% 14.5 21.0% FY09 FY09 8% 19.0% 7.8 FY10 FY10 4% 5.6 3.9 9.0 6.2 17
Slide 14: Supply chain reform update
Supply chain reform update Midway through 3 year program with results to date on plan For personal use only Moving & storing Planning better Buying better better Re-organised logistics around 3 Beginning to partner with fewer more distribution centres Integrated sales and operations planning strateg
Slide 15: 2010 seasonal conditions
2010 seasonal conditions the most positive in many years, renewed resources, feed, activity levels and confidence For personal use only Good lead up rainfall ..May drier than average so far, Above average for most of eastern Australia with West still waiting Average to above average in South Aus
Slide 16: Forestry
Forestry For personal use only $ million H1 10 PCP 09 Continuing Sales Revenue 46.2 49.4 Total Continuing Revenue 53.1 57.5 Underlying EBITDA 8.1 3.8 Depreciation & Amortisation 0.7 0.8 Equity accounted income - 1.3 FEA contribution in pcp Underlying EBIT 7.4 4.3 Non-recurring items (174.4) (45.3) F
Slide 17: Futuris Automotive rebounding strongly
Futuris Automotive rebounding strongly For personal use only $ million H1 10 PCP March 09 Earnings and sales highlight recovery in Asian and Australian automotive sectors Sales 134.2 103.6 Demonstrating “first in-first out” recovery pattern Underlying EBITDA 16.6 (2.7) – Australian volumes comme
Slide 18: Summary and outlook
Summary and outlook Business indicators show underlying improvement is real and stronger than headline results suggest For personal use only Substantially improved performance across the business: earnings, cash generation, cost and margins all trending positively The health of the Business and
Slide 19: For personal use only
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