Elders Limited · ASX:ELD
Elders — FY2014 Earnings Presentation
20 slides from Elders's earnings presentation, Nov 17, 2014
Slide 1: 2014 Full Year Financial Results Presentation
17 November 2014 2014 Full Year Financial Results Presentation Attached is the presentation of the financial results for the 12 month period ended 30 September 2014. Peter Hastings Company Secretary 1
Slide 2: FY14 Results
FY14 RESULTS Results for the 12 months to 30 September 2014 Monday, 17 November 2014
Slide 3: FY14 priorities
FY14 priorities Safety Operational Leadership Capital Performance Performance Renewal Management Lost time injuries from 33 $77.3m underlying profit Board renewal with two ROC improved in to 20 turnaround new NEDs and new Chair line with renewed focus Target is to be LTI free All segment
Slide 4: FY14 results overview
FY14 results overview • Statutory net profit after tax of $3.0m up from $(505.3)m • Underlying net profit after tax of $8.8m up from $(68.5)m • Uplift across all product and geographic segments • Divestment of non-core assets complete • Net debt reduced to $137.6m; down from $255.2m last year • $57m
Slide 5: Key financial indicators
Key financial indicators Change from $ million 2014 2013 2013 Sales revenue 1,431.5 1,422.1 + 9.4 Underlying EBIT 27.3 (48.9) + 76.2 Underlying profit / (loss) after tax 8.8 (68.5) + 77.3 Reported profit / (loss) after tax 3.0 (505.3) + 508.3 Net debt (137.6) (255.2) - 117.6 Term debt (34.1) (143.8)
Slide 6: Underlying profit by product
Underlying profit by product Profit uplift across all products Underlying profit movement $ million 0.1 1.0 8.8 Product margin 28.5 6.2 (68.5) 24.2 0.0 1.8 13.7 1.8 FY13 Retail Products Agency Services Financial Feed & Live Export Costs Interest Tax & NCI FY14 Services Processing Services Services
Slide 7: Underlying profit by geography
Underlying profit by geography Improvement in all geographic segments Underlying profit movement $ million 0.1 1.0 13.3 8.8 7.8 24.2 (68.5) 5.8 18.9 6.2 FY13 Northern Southern Western International Functional and Interest Tax & NCI FY14 Australia Australia Australia Technical All Australian geogra
Slide 8: Working capital
Working capital Improvement in working capital efficiency Working capital movement $ million Reduced Retail debtors and inventory Restock of Live Export business (40) 12 Completion of divestment of non-core 243.3 (36) assets (1) Expect higher working capital in FY15 178.4 with seasonal impro
Slide 9: Cash flow
Cash flow Strong cash flow generation from core business Operating cash flow Improved cash flow generation through $ million increased profitability and working capital management (18.9) “Non-recurring” outflows relating to: (14.7) 69.0 - FY13 restructuring and residual (20.4) 50.2 Auto divestme
Slide 10: Debt position
Debt position Successful reduction of debt Net debt $ million Cash and cash equivalents Term debt Working capital facilities 255.2 Other debt 236.6 149.4 137.6 123.6 92.6 125.6 143.8 125.6 118.3 34.1 (39.9) (22.5) (33.5) Sep‐13 Mar‐14 Sep‐14 Pro‐forma Sep‐14 Net finance costs $(33.2m) $(23.1m) Net
Slide 11: Post recapitalisation and refinance
Post recapitalisation and refinance Balance sheet reset and platform for growth created Retail debtor facility (pro‐ forma drawn) 113.5m 37% Facilities headroom (pro‐ forma) 182.4m 59% Live Export working capital facility (pro‐ forma drawn) 12.1m 4% Recapitalisation and refinance completed in Octo
Slide 12: Business model
Business model Feed & Retail Financial Live Export Agency Services Processing Products Services Services Services ` Short haul livestock Long haul livestock Elders Indonesia Farm Supplies Killara Feedlot Elders China Real Estate Livestock Insurance Fertiliser Banking Grain Wool $888m retail sales 9.
Slide 13: Business segmentation
Business segmentation Northern Southern Western International Working FY14 Margin $ million Australia Australia Australia Geographies Capital Retail Products Fertiliser and Farm Supplies 107.9 128 Agency Services Livestock, Wool, Real Estate and Grain 117.9 20 Financial Services Banking, Insurance a
Slide 14: Business performance – by product
Business performance – by product Margin growth by product $ million +13% +2% FY13 FY14 Retail Products: Good winter break in 117.9 South and West offsetting continued 106.1 107.9 104.2 dry Northern conditions. Benefits also from decentralisation of retail +14% management 25.8 25.8 13.5 15.3 11.7
Slide 15: Business performance – by geography
Business performance – by geography Margin growth by geography $ million +10% North: Improved margin from FY13 FY14 +1% 118.8 Livestock and Killara feedlot despite 108.5 tough Retail conditions 95.6 96.5 +16% South: Benefitted from strong Agency and Retail sales 44.6 38.6 18.7 West: Solid perf
Slide 16: Eight Point Plan – step by step
Eight Point Plan – step by step Underlying EBIT opportunities $ million 60 27 FY14 Values, Geographical Retail Products Agency Services Financial Feed & Live Export Costs, Capital & FY17 Performance & Coverage & Services Processing Services Efficiency Brand Distribution Services Channel Three year
Slide 17: Eight Point Plan early progress
Eight Point Plan early progress 15
Slide 18: Outlook
Outlook Retail Products Dry spring and summer conditions for most of Australia Assume average winter cropping season Agency Services Upward pressure on cattle prices with tightening supply and robust global demand Increase in sheep flock to support export demand Positive real estate activi
Slide 19: FY15 priorities
FY15 priorities Safety Operational Key Efficiency and Performance Performance Relationships Growth • Continued emphasis on • Increase underlying EBIT • Create a values, safety and • Implement comprehensive safety performance based culture branch benchmarking • Improve ROC program • Implement employe
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