Pgg Wrightson Limited · NZX:PGW
Pgg Wrightson — Shareholder Meeting (October 2008)
19 slides from Pgg Wrightson's shareholder meeting presentation, Oct 30, 2008
Slide 1: PGG Wrightson Limited Annual Shareholders' Meeting
PGG Wrightson Limited Annual Shareholders’ Meeting 30 October 2008
Slide 2: Craig Norgate, Chairman
Craig Norgate Chairman — So PGG Wrightson
Slide 3: Financial Results
Financial Results 2008 2007 Change % Reported NPAT $73.2m $40.6m +80 NOPAT * $39.2m $29.0 +35 EPS $0.25 $0.14 +79 * Excludes performance fee, share appreciation, capital gains and other one-offs
Slide 4: Dividend
Dividend 2008 2007 Change cps cps % Interim 5 4 Final 11 8 TOTAL 16 12 +33
Slide 5: Leadership changes
Leadership changes • Tim Miles – Managing Director • Barry Brook – GGM South America • Michael Thomas – GGM Financial Services • Director retirements – Bill Baylis and Richard Elworthy • New Chairman – Craig Norgate
Slide 6: Annual Shareholders' Meeting 30 October 2008
Annual Shareholders’ Meeting 30 October 2008
Slide 7: Equity market volatility
Index 100 120 140 160 180 20 40 60 80 0 Jul 07 Aug 07 Sep 07 Oct 07 PGW NZX50 S&P500 Nov 07 Dec 07 Jan 08 Feb 08 Mar 08 Apr 08 Equity market volatility May 08 Jun 08 Jul 08 Aug 08 Sep 08 Oct 08
Slide 8: Annual Shareholders' Meeting 30 October 2008
Annual Shareholders’ Meeting 30 October 2008
Slide 9: Tim Miles, Managing Director
Tim Miles Managing Director — So PGG Wrightson
Slide 10: Market Overview
Market Overview Mixed operating conditions – Adverse NZ$ and interest rates for much of the year – Long periods of dry weather in NZ, Australia, Uruguay – Poor returns to sheep and beef producers – Increasing costs – eg. fertiliser, fuel, agricultural chemicals Sheep and Beef Farm profit before tax
Slide 11: Market Overview
Market Overview Mixed operating conditions – Dairy boom ongoing – Strong grain prices – Strong expansion in viticulture and vegetables – Growth in Finance and Funds Management 10.00 9.00 Dairying $s per kilo of milk solids 7.8 8.00 7.00 7.00 6.00 5.00 4.25 4.50 4.10 4.46 3.66 4.00 3.00 2.00 1.00 0.0
Slide 12: Rural Services
Rural Services $millions FY08 FY07 % Sales 818 716 +14 EBIT 40.1 26.7 +50 Rural Supplies • Superior operational performance • Assisted by personnel and operational changes Fruitfed Supplies • Held market share and margin against vigorous competition Livestock • Solid performance in mixed market con
Slide 13: Financial Services
Financial Services $millions FY08 FY07 % Sales 135 85 +59 EBIT 40.3 17.6 +129 PGG Wrightson Finance • Maintained growth and improved performance – Loan book grew 27% to $503m – Retail deposits increased by $31m – total now $264m Real Estate • Growth driven by dairy and increased market share Insura
Slide 14: Technology Services
Technology Services $millions FY08 FY07 % Sales 299 210 +42 EBIT 35.5 30.9 +15 Seeds and Grain • Continuing sales growth despite lower rainfall in Australia • Significant increase in sales of proprietary cereals • Strong performances in grain trading and maize Animal Nutrition (Agri-feeds) • Demand
Slide 15: South America
South America $millions FY08 FY07 % Sales 56 18 +211 EBIT 2.5 1.9 +32 Operations centred in Uruguay • Significant investment in infrastructure and resources to support growth and NZS • Ongoing strong sales growth – including to NZS • Further development towards a full service business with recent a
Slide 16: Annual Shareholders' Meeting 30 October 2008
Annual Shareholders’ Meeting 30 October 2008
Slide 17: Craig Norgate, Chairman
Craig Norgate Chairman — So PGG Wrightson
Slide 18: Outlook – 2009 year
Outlook – 2009 year • Effect of slower economies yet to be seen, but… • Food market fundamentals remain in place • Significant falls in NZ$ and interest rates helpful for agriculture • Strong first quarter performance • NPAT expectations remain in range from $46m to $51m, excluding any performance f
Slide 19: PGG Wrightson Limited
PGG Wrightson Limited Annual Shareholders’ Meeting 30 October 2008