Elders Limited · ASX:ELD
Elders — H1 FY2014 Earnings Presentation
24 slides from Elders's earnings presentation, May 19, 2014
Slide 1: 2014 Half-Year Results Investor Presentation
19 May 2014 2014 Half-Year Results Investor Presentation Attached is the investor presentation in connection with the financial results for the 6 month period ended 31 March 2014. Elders CEO, Mark Allison, and CFO, Richard Davey, will deliver this presentation by teleconference at 10.30am (CST) toda
Slide 2: Results for the Six Months to 31 March 2014
1H F14 Results for the Six Months to 31 March 2014 Monday 19th May 2014
Slide 3: Agenda
Agenda 1H Highlights Financial Performance Operational Results Strategy Market Conditions 2H Priorities
Slide 4: Key Points from 1H F14
Key Points from 1H F14 1. Elders has turned around its underlying performance from loss-making to profit generating - an early milestone in the journey to becoming a value- generating business. 2. The business has responded to management focus on four key outcomes: safety, operational performance, l
Slide 5: Key Results – 1H F14
Key Results – 1H F14 Statutory net loss after tax of $(10.2) million up from $(303.2) million Non-underlying items of $ (16.8) million Underlying net profit after tax of $6.7 million up $30.4 million from prior corresponding period Broad-based improvement with all business streams lifting ea
Slide 6: F14 Priorities - Performance Dashboard
F14 Priorities - Performance Dashboard Safety Operational Leadership Capital Performance Performance Renewal Management Lost time injuries All areas lifted Board renewal: 2 new Working capital down reduced from 13 to 7 earnings contribution NEDs and new chair 18% over period and 28% on pcp
Slide 7: Business Segmentation
Business Segmentation H1 14 Margin Working North South West International ($m) Capital Retail Fertiliser and Farm Supplies 43.4 157 Agency Services Livestock, Wool, Real Estate and Grain 61.0 21 Financial Services Banking, Insurance and Financial Planning 12.7 - Feed & Processing Charlton Indonesia
Slide 8: Financial Performance
Financial Performance | Ecaters HIRD
Slide 9: Financial Performance
Financial Performance Change from $ million Half Year 2014 Half Year 2013 2013 Continuing sales revenue 650.4 656.7 - 6.3 Statutory EBIT (5.3) (249.3) + 244.0 Underlying EBIT 12.4 (16.0) + 28.4 Statutory net financing costs (8.7) (14.7) + 6.0 Net profit / (loss) after tax (10.2) (303.2) + 293.0 Unde
Slide 10: Movement in Underlying Profit by Product
Movement in Underlying Profit by Product Earnings growth generated by all products Contributors to movement in earnings 1.2 0.8 $ million 15.0 6.7 Network margin Trading margin + 8.3 + 5.1 4.4 (23.7) 6.1 0.0 0.7 2.2 1H F13 Retail Agency Financial Feed & Live Export SG&A Interest Tax & NCI 1H F14 Ser
Slide 11: Movement in Underlying Profit by Geography
Movement in Underlying Profit by Geography Growth from all regions, dry conditions evident in North Contributors to movement in earnings 1.2 0.8 $ million 15.0 0.2 6.7 4.6 (23.7) 3.0 4.3 1.3 1H F13 North South West International SG&A Equity Interest Tax & NCI 1H F14 earnings All zones benefited fr
Slide 12: Cash Flow Analysis
Cash Flow Analysis Positive and increased operating cash flow from Elders operations Contributors to Cash flow from operating activities $ million (8.5) 29.4 (14.7) (17.7) (11.5) Operating EBITDA Interest, tax & Restructuring Forestry Operating cash & working capital dividends flow Increased opera
Slide 13: Working Capital Analysis
Working Capital Analysis Working capital requirements reduced Working capital movement $ million 5 46 Mar-13 Sept-13 Mar-14 Inventory 138.6 116.3 105.7 276 22 Livestock 49.1 36.7 31.4 4 Trade and other receivables 352.0 344.1 305.0 199 Trade and other payables (263.7) (254.5) (243.0) Total working c
Slide 14: Net Debt and Financing Cost Analysis
Net Debt and Financing Cost Analysis Finance costs down 41% as term debt reduced Elements of net debt $ million 314.1 Other Finance costs $ m 1H F13 1H F14 change Self- 255.2 Finance cost on term debt (9.3) (6.2) +33% 149.4 liquidating 236.6 Finance cost on self- (5.7) (4.0) +30% 149.4 liquidating f
Slide 15: Operational Performance
Operational Performance | Ecaters HIRD
Slide 16: Product Segmentation
Product Segmentation Margin growth by product Margin generated by product $ million +11% 1H F13 Financial Agency Services 61.0 1H F14 Services 10% 55.0 46% +5% Feed & 43.4 Processing 41.2 Services 5% Live Export Services 6% +10% +138% 12.8 12.7 6.7 7.4 3.2 7.6 Retail Retail Agency Services Financial
Slide 17: Geographical Segmentation
Geographical Segmentation Margin growth by geography Margin generated by geography $ million +8% 1H F13 South 43% West 56.7 1H F14 14% +3% 52.4 44.6 45.9 International 8% +16% 18.5 +42% 15.5 11.0 North 6.4 35% North South West International North: Increased margin despite dry conditions through st
Slide 18: Strategy
Strategy | Ecaters HIRD
Slide 19: F16 Business Model
F16 Business Model Agency Retail Services Livestock Financial Farm Supplies Services Insurance Banking Fertiliser Real Estate Feed & Processing Wool Live Indonesia Export Feedlots Short Haul Live Export Elders Fine Foods Long Haul Live Export Grain (Indicative)
Slide 20: Outlook
Outlook | Ecaters HIRD
Slide 21: Current Market Conditions
Current Market Conditions Retail: Good winter crop seasonal break Agency: - Cattle prices recovering - Sheep prices currently strong - Positive real estate activity - Wool receivals soft Financial Services: Positive growth in new lending, stable insurance earnings Feed and Processing: Feedlo
Slide 22: F14 Priorities – 2H
F14 Priorities – 2H Safety Operational Leadership Capital Performance Performance Renewal Management o Injury-free workplace o ROC focus o Align organisational o Working capital maintained capabilities and roles optimised given o Completion of with strategy seasonal and Live company wide o $25 milli
Slide 23: Disclaimer and Important Information
Disclaimer and Important Information Forward looking statements This presentation is prepared for informational purposes only. It contains forward looking statements that are subject to risk factors associated with the agriculture industry many of which are beyond the control of Elders. Elders’ futu
Slide 24: YEARS
1/5 YEARS