Elders Limited · ASX:ELD
Elders — HY25 Earnings Presentation
39 slides from Elders's earnings presentation, May 27, 2025
Slide 1: 2025 Half-Year Results Investor Presentation
26 May 2025 2025 Half-Year Results Investor Presentation Attached is the Elders Limited (ASX:ELD) investor presentation in connection with the financial results for the 6-month period ended 31 March 2025. Elders’ Managing Director and Chief Executive Officer, Mark Allison, and Chief Financial Office
Slide 2: FY25 Results Presentation
FY25 26 May 2025 Presented by Mark Allison Paul Rossiter Managing Director and CEO CFO elders.com.au Elders Limited
Slide 3: Disclaimer And Important Information
Disclaimer And Important Information The material in this presentation has been prepared by Elders Limited and is general background about Elders' activities and performance at the date of this presentation. The information is in summary form, does not purport to be complete, and where derived from
Slide 4: Agenda
ELDERS LIMITED AGENDA Agenda 01 Executive Overview 04 Questions 02 Financial Results 05 Appendix 03 Strategy and Outlook Rounding differences may be present in the Results Presentation due to individual amounts rounded to the nearest decimal point 3
Slide 5: Executive Overview
Executive Overview Presented by Mark Allison (Managing Director and CEO) 4 Elders Limited
Slide 6: Key Investment Drivers
ELDERS LIMITED EXECUTIVE OVERVIEW Key Investment Drivers Australia's most trusted agribusiness brand amongst farmers five years in a row ▪ Through the cycles ▪ Multi-faceted ▪ Room to grow market ▪ Cost and capital ▪ Network expansion ▪ Resilient balance sheet shareholder value agribusiness share in
Slide 7: Earnings Resilience Through Seasonal Volatility
ELDERS LIMITED EXECUTIVE OVERVIEW Earnings Resilience Through Seasonal Volatility Higher EBIT reflects normalised first quarter earnings partially offset by delayed winter crop activity in SA and VIC First Second Third Fourth Eight Point Plan Eight Point Plan Eight Point Plan Eight Point Plan EBIT¹
Slide 8: People and Customer Highlights
ELDERS LIMITED EXECUTIVE OVERVIEW People and Customer Highlights 3 lost time injuries 45% women in the workforce 6.0 total recordable injury #1 most trusted 23% frequency rate agribusiness brand women in senior positions amongst farmers fifth year in a row¹ 50 77% net promoter score employee engagem
Slide 9: Safety, Health and Wellbeing
ELDERS LIMITED EXECUTIVE OVERVIEW Safety, Health and Wellbeing Preserving a safer working environment Lost Time Injuries (LTI) Total Recordable Injury Frequency Rate (TRIFR)1 6 15.1 12.6 -21% 10.1 3 3 3 Average 9.0 2 6.0 FY21 FY22 FY23 FY24 HY25 FY21 FY22 FY23 FY24 HY25 1. All fatalities, LTIs and m
Slide 10: Sustainability Performance
ELDERS LIMITED EXECUTIVE OVERVIEW Sustainability Performance On track to achieve Scope 1 and 2 emission targets by 2030 CLIMATE TARGETS1 OUR PROGRESS Targets set to reduce our Scope 1 and 2 greenhouse gas emissions: ▪ Embedding our sustainability principles into business operations ▪ Partnering with
Slide 11: Financial Overview
ELDERS LIMITED EXECUTIVE OVERVIEW Financial Overview Resilient first half supported by Real Estate growth and recovery in livestock market $64.3m 12.7% 82% 18c Underlying EBIT Return on Capital Cash Conversion Dividends Per Share R12 EBIT/ R12 avg net operating assets YTD Operating cash flow / YTD U
Slide 12: Financial Results
Financial Results Presented by Paul Rossiter (CFO) 11 Elders Limited
Slide 13: Financial Performance Overview
ELDERS LIMITED FINANCIAL RESULTS Financial Performance Overview ▪ Noticeable improvement in Agency and Real Estate earnings ▪ Q1 recovery as expected, offset by the impact of drier conditions in SA and western VIC HY25 Underlying EBIT ▪ Significant cost reduction adjusting for acquisitions and trans
Slide 14: Five-Year Financial Performance
ELDERS LIMITED FINANCIAL RESULTS Five-Year Financial Performance Favourable financial result benefiting from average seasonal conditions in most regions Sales Revenue ($m) Gross Margin ($m) +6.5% +7.7% 3,445 3,321 3,131 653 638 619 2,549 529 14% 325 5% 1,413 1,515 1,657 327 306 285 1,101 1,342 242 F
Slide 15: Five-Year Shareholder Returns
ELDERS LIMITED FINANCIAL RESULTS Five-Year Shareholder Returns Delivering shareholder value through the agricultural cycles Underlying Earnings per Share (cents) Adjusted Underlying Earnings per Share (cents)¹ -13.3% 134.1 96.7 97.3 36.8 96.7 66.3 87.6 21.3 40.7 53.4 12.7 58.3 21.4 24.3 42.9 58.3 32
Slide 16: HY25 Financial Summary
ELDERS LIMITED FINANCIAL RESULTS HY25 Financial Summary Favourable second half forecast supported by average seasonal conditions Adjusted Delta 5 5 Key metrics ($m) HY25 HY24 Var Var % HY25 Adjustment Sales revenue 1,413.1 - 1,413.1 1,341.8 71.3 5% Gross margin 324.5 - 324.5 285.4 39.1 14% Gross
Slide 17: Gross Margin Diversification
ELDERS LIMITED FINANCIAL RESULTS Gross Margin Diversification Realising the benefits of product diversification through organic and acquisition growth Total Gross Margin ($m) +36.7% 80.9 Sales and gross margin pressure 305.8 324.5 76.3 285.4 attributable to increased competition, -10.7% exacerbated
Slide 18: Product Performance
ELDERS LIMITED FINANCIAL RESULTS Product Performance 12 Month Rainfall Deficiencies impact on Upbeat performance from Agency and Real Estate benefiting from key acquisitions, improved market conditions and organic growth Retail Gross Margin³ +23.8 (+165%) 2.1 2.7 (13.2) 18.5 38.2 (2.1) (8.4%) (3.7%)
Slide 19: Cost Growth Excluding New Business
ELDERS LIMITED FINANCIAL RESULTS Cost Growth Excluding New Business Cost excluding growth and transformational costs decreased 3.6% driven by cost base rationalisation Cost Increase excl. Growth Growth Adjusted Cost Movement² ($m) Commentary and Transformational Initiatives ($m) Base Target: ▪ Cost
Slide 20: Return on Capital
ELDERS LIMITED FINANCIAL RESULTS 1 Return on Capital First half ROC lower due to the cumulative impact of transformation projects ahead of benefits realisation Return on Capital (%) Normalised Return on Capital (%) 14.9% -0.8 15.8% 0.5% 14.9% 4.5% 2.2% 1.1% 0.7% 12.7% 12.7% 11.3% Misalignment in tim
Slide 21: Working Capital
ELDERS LIMITED FINANCIAL RESULTS Working Capital Improvement in Retail working capital offset by Livestock Agency and Financial Services Working Capital ($m) Working Capital by Product ($m) Trade and Other Receivables¹ ($m) Agency Other Retail Products Average Var Var Products HY25 FY24 +79 Balance
Slide 22: Cash Flow
ELDERS LIMITED FINANCIAL RESULTS Cash Flow Cash conversion negatively impacted by timing of livestock agency settlements over balance date Operating Cash Flow ($m) Cash Conversion2 Lower Retail debtors offset 105.5 by temporary elevated 13.8 (12.7) -258 Livestock debtors 40.1 (36.0) 339% 64.3 82% (2
Slide 23: Leverage Analysis
ELDERS LIMITED FINANCIAL RESULTS Leverage Analysis Pathway to target in FY25 (1.5 - 2.0 times), to be driven by a more favourable balance date and earnings profile, and net debt reduction Livestock settlements paid but low receipts due to date falling over the weekend Leverage (times) Livestock Sett
Slide 24: Net Debt and Financial Ratios
ELDERS LIMITED FINANCIAL RESULTS Net Debt and Financial Ratios Banking covenants maintain significant headroom Net Debt, Balance Date ($m) Leverage Ratio Interest Cover Gearing Ratio Balance date net debt / EBITDA / net interest Balance date net debt / closing EBITDA equity +102.2 +0.1 +0.2 -0.8 Exc
Slide 25: Strategy and Outlook
Strategy and Outlook Presented by Mark Allison (Managing Director and CEO) 24 Elders Limited
Slide 26: New Format, simplified priorities
Option 3 – New Format, simplified priorities Compelling shareholder returns Industry leading sustainability outcomes Most trusted Agribusiness brand 5-10% EBIT and EPS growth through the cycles at across health and safety, community, environment and in rural and regional Australia minimum 15% ROC go
Slide 27: Our Strategic Priorities: Transform
ELDERS LIMITED STRATEGY AND OUTLOOK PROGRESS UPDATE Our Strategic Priorities: Transform ▪ Wave 2 retail roll-out progressing with SA and TAS Wave 2 roll-out progressing as planned completed, QLD underway ▪ Currently in design phase of Wave 3 ▪ Commencement of Wave 4 business plan, allowing for SYSTE
Slide 28: Our Strategic Priorities: Innovate & Grow
ELDERS LIMITED STRATEGY AND OUTLOOK Our Strategic Priorities: Innovate & Grow Expanding our footprint through strategic initiatives Elders’ Points of Presence 4 GROWTH ENABLERS 2.8% CAGR 625 618 Focus areas for future growth in line with the eight-point 597 plan foundations 576 ▪ Financial Services
Slide 29: Market Outlook
ELDERS LIMITED STRATEGY AND OUTLOOK Market Outlook FEED AND RURAL AGENCY REAL FINANCIAL COSTS AND PROCESSING PRODUCTS SERVICES ESTATE SERVICES CAPITAL SERVICES ▪ Margin management ▪ Stable livestock volumes ▪ Margin relief for regional ▪ Continued transition to ▪ High residency and ▪ Sustained progr
Slide 30: Questions
Questions 29 Elders Limited
Slide 31: Appendix
Appendix 30 Elders Limited
Slide 32: Key Performance Indicator Trends
ELDERS LIMITED APPENDIX Key Performance Indicator Trends Elders' diversified business model delivers earnings resilience amid market volatility Agency Services: Cattle Volume (‘000) Agency Services: Sheep Volume (‘000) Rural Products: Gross Margin ($m) Real Estate Services: Property Management Earn
Slide 33: Geographical Diversification
ELDERS LIMITED APPENDIX Geographical Diversification Improved result reflective of geographic diversification benefits. South Australia remains impacted by severe rainfall deficiencies 18% 12% 30% WESTERN SOUTH VIC T O R IA AN D AU ST R AL I A AU ST R AL I A RIVERINA $16.5m $11.1m $27.4m +41% YOY -1
Slide 34: Transformation Impact on ROC
ELDERS LIMITED APPENDIX Transformation Impact on ROC Cumulative impact of transformation projects ahead of benefits realisation Return on Capital (%) EBIT ($m) Average Capital ($m) +69.5 26.9% 237.0 1,205.3 0.7 4.9 58.9 1,135.8 1,064.6 45.8 +56.5 20.6 23.0% +28.2 0.5 176.8 885.6 170.4 6.0 4.7 3.9 16
Slide 35: Business Model
ELDERS LIMITED APPENDIX Business Model Feed and Digital and Rural Products Agency Services Real Estate Services Financial Services Processing Services Technical Services Retail Wholesale Fee for Service Rural Products Rural Products Livestock Broadacre Loan Brokerage Killara Feedlot (246 agronomists
Slide 36: Gross Margin Sensitivity
ELDERS LIMITED APPENDIX Gross Margin Sensitivity Geographic and product diversification mitigates the impact of individual market volatility $m 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 +100k head +$10 +500k head +$25m +100bps +$50 +50bps +100bps +10% 0.0 -$50 -100k head -$10 -500k head -$25m -50bps -100b
Slide 37: ABARES March Market Outlook
ELDERS LIMITED APPENDIX ABARES March Market Outlook Gross value of production to rise 11% to $92 billion, driven by higher livestock and crop production boosted by strong global demand Beef and Veal1 Sheep1 Wool1 Winter Cropping2 Summer Cropping2 Average saleyard prices (c/kg) Average saleyard price
Slide 38: Elders Capital Management Framework
ELDERS LIMITED APPENDIX Elders Capital Management Framework The Elders Eight Point Plan aspires to deliver Total Shareholder Return (TSR) in the top quartile of ASX200 companies at investment grade risk Capital Management Framework Key Features of our capital management framework Compelling Total Sh
Slide 39: Elders Limited
Elders Limited