Slide 1: PGG Wrightson Limited Annual Shareholders Meeting
WELCOME TO THE PGG Wrightson Limited Annual Shareholders Meeting Christchurch 2015
Slide 2: Agenda
Agenda • Introductions • Formalities • Chairman’s address • The year in review • Update on our strategy • Outlook for this year • Questions & discussions • Resolutions & poll
Slide 3: Board of Directors
Board of Directors Alan Lai Trevor Burt Bruce Irvine Chairman Deputy Chairman Independent Director John Nichol Ronald Seah WK Tsang Kean Seng U Independent Director Independent Director
Slide 4: On stage today
On stage today Chairmen Alan Lai Trevor Burt Chairman Deputy Chairman Management Mark Dewdney Peter Scott Julian Daly Chief Executive Officer Chief Financial Officer GM Strategy & Corporate Affairs
Slide 5: Other management team members in attendance today
Other management team members in attendance today Stephen Guerin John McKenzie Peter Newbold GM Retail GGM Seed & Grain GM Real Estate Chris Adam Regional Manager, Canterbury
Slide 6: Formalities
Formalities • Notice of Meeting • Minutes • Proxies • Annual Financial Statements
Slide 7: Chairman's address
Chairman’s address Alan Lai Helping grow the country
Slide 8: Results show sustained momentum in challenging times
Results show sustained momentum in challenging times
Slide 9: The year in review
The year in review Mark Dewdney
Slide 10: Operating EBITDA Reconciliation
Operating EBITDA Reconciliation ($m) Jun-2015 Jun-2014 Profit/(loss) for the period (GAAP, commonly referred to as Net Profit after Tax) 32.8 42.3 Deduct Profit from discontinued operations (net of income tax) (0.1) (0.9) Add Income tax expense 16.2 8.5 Add Net interest and finance costs 10.8 7.9 Ad
Slide 11: PGG Wrightson snapshot: new and refreshed
New/refreshed PGG WRIGHTSON Retail premises in Kaikohe, SNAPSHOT Pukekohe, Katikati, Stratford, Eketahuna, Murchison, Temuka, and Water premises in Cromwell and Real Estate in Te Anau Agritrade appointed as the CXG | USIVE distributor of agricultural quantities of Roundup? in New Zealand Major IT sy
Slide 12: Acquisitions, awards and bank facilities
: oo Baabisen pees PGG Wrightson Water acq ulres acquires the Advanced the business of Irrigation Systems business, Grainland Moree Pty St rengthen i Ng Ltd in northwest New ‘ feb Ae ~ its position in turf irrigation South Wales, Australia TErM ofthe New Zealand syndicated bank facilities extended a
Slide 13: Group Operating EBITDA
Group Operating EBITDA (excluding earnings of associates) 69.5 $ million • Earnings grew another 18% over the year 60 despite tougher market conditions • Further evidence that 40 the investment in people, infrastructure and products is leading to improved financial 20 performance - 2011 2012 2013 20
Slide 14: Retail Operating EBITDA
Retail Operating EBITDA (excluding earnings of associates) $ million 40 • Earnings grew another 7% over the year 30 27.3 • Improved technical expertise • Improved customer 20 service skills • Improved logistics 10 systems improved customer experience - 2011 2012 2013 2014 2015
Slide 15: Seed & Grain Operating EBITDA
Seed & Grain Operating EBITDA (excluding earnings of associates) Seed & Grain (excl. Agrifeeds) Agrifeeds 40.3 $ million 40 • Earnings grew another 19% over the year 30 • Strong NZ sales growth of fodder beet and proprietary herbs 20 and legumes • Reconfigured Australian business 10 delivering - 201
Slide 16: Livestock Operating EBITDA
Livestock Operating EBITDA (excluding earnings of associates) $ million 40 • Earnings grew another 15% over the year • Strong market for beef 30 cattle offset weak market for dairy cattle 20 15.4 • Two export shipments completed 10 - 2011 2012 2013 2014 2015
Slide 17: Other Rural Services Operating EBITDA
Other Rural Services Operating EBITDA (excluding earnings of associates) $ million 40 • Real Estate earnings down year on year due to lower market 30 volumes • Water and Wool 20 earnings in line with previous year 11.8 10 - 2011 2012 2013 2014 2015 -10
Slide 18: Update on our strategy
Update on our strategy Improve Grow Game-changers
Slide 19: Improve
Complete ü Redevelopment of www.pggwrightson.co.nz ü Refinement of our Real Estate sales management structure and www.pggwre.co.nz ü Tablets and apps with Retail field reps ü Several major back office IT system upgrades ü Regional Leadership Programme launched Improve In progress ð Enhancement
Slide 20: Grow: Dairy, South America, Water, Agritrade
Dairy South America Grow Water Agritrade
Slide 21: Game-changers
Helping grow the country
Slide 22: Typical seasonality of financial results
Typical seasonality of financial results (indicative only) 30% 20% 10% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 0% Revenue Operating EBITDA
Slide 23: Group Operating EBITDA guidance range
Group Operating EBITDA (including earnings of associates, guidance range) $ million • FY16 guidance range of $61m to $67m 60 • Dairy sector confidence still a headwind for FY16 40 • Signs are positive for a recovery in FY17 • Weather and 20 commodity prices key drivers of uncertainty - 2011 2012 201
Slide 24: Questions and discussion
Questions and discussion Please wait for the microphone before addressing the room.
Slide 25: Business of the Meeting
Business of the Meeting Item I Addresses by the Chairman and the CEO Complete Item II Consider the re-election of Ronald Seah as Director Item III Consider the re-election of Kean Seng U as Director Item IV Consider the election of WK Tsang as Director Item V Note the reappointment of KPMG as audito
Slide 26: Item III: Lim Siang (Ronald) Seah
Item III: Lim Siang (Ronald) Seah • Joined the Board in December 2012. • Singaporean with a background in banking and funds management, including serving as Chairman of AIG Global Investment Corporation (Singapore) Limited until 2005. • Currently serving as independent non-executive director of a nu
Slide 27: Item III: Kean Seng U
Item III: Kean Seng U • Joined the Board in December 2012. • Head of Corporate and Legal Affairs for Agria Corporation. • Currently serving as independent director of a number of listed companies. • Received a Bachelor of Laws (Honours) degree and a B.Ec degree in Economics and Accounting from Monas
Slide 28: Item IV: Wah Kwong (WK) Tsang
Item IV: Wah Kwong (WK) Tsang • Appointed to the Board by the Directors since last year’s annual meeting. As such, and in accordance with NZX listing rules, WK retires and offers himself for election. • Former partner of the Hong Kong and China firm of PriceWaterhouseCoopers. • Independent Director
Slide 29: Auditors' remuneration
Item V: Auditors’ remuneration • Note the reappointment of KPMG as auditor and authorise the Directors to fix the auditor’s remuneration.
Slide 30: General business
Item VI: General business
Slide 31: Thank you
— PGG Wrightson Helping grow the country
Slide 32: PGG Wrightson
Sa PGG Wrightson Helping grow the country