Announcement PDF Monday 15 May 2023 2023 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 2023. Elders’ Managing Director and Chief Executive Officer, Mark Allison, and Acting Chief Financial Officer, Paul Rossiter, will deliver this presentation by webcast and simultaneous teleconference at 10.00am (AEST) today. As advised in the Company’s announcement to ASX on Wednesday, 10 May 2023, you can register to view and listen to the live commentary of the presentation. For details, refer to that announcement. Further Information: Mark Allison, Managing Director & Chief Executive Officer, 0439 030 905 Media Enquiries: Meagan Burbidge, Senior Communications Specialist, 0417 841 092 Authorised by: Peter Hastings, Company Secretary Elders Limited ABN 34 004 336 636. Registered Office: Level 10, 80 Grenfell Street, Adelaide SA Australia 5000 FY23 Half Year Report Presentation 15 May 2023 Presented by Mark Allison Managing Director and CEO Paul Rossiter Group Treasurer and Acting CFO 1 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 publicly available sources has not been independently verified. Information in this presentation is not advice or a recommendation to investors or potential investors in relation to holding, selling or buying Elders shares and does not take into account a reader's investment objectives, financial situation or needs. 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’ future financial results will be highly dependent on the outlook and prospect of the Australian farm sector, and the values and volume growth in internationally traded livestock and fibre. Financial performance for the operations is heavily reliant on, but not limited to, the following factors: weather and rainfall conditions; commodity prices and international trade relations. Whilst every endeavour has been made to ensure the reasonableness of forward looking statements contained in this presentation, they do not constitute a representation and no reliance should be placed on those statements. Non-IFRS information This presentation refers to and discusses underlying profit to enable analysis of like-for-like performance between periods, excluding the impact of discontinued operations or events which are not related to ongoing operating performance. Underlying profit measures reported by the Company have been calculated in accordance with the FINSIA/AICD principles for the reporting of underlying profit. Underlying profit is non-IFRS financial information and has not been subject to review by the external auditors, but is derived from audited accounts by removing the impact of discontinued operations and items not considered to be related to ongoing operating performance. 2 Agenda Executive Overview Financial Results Growing and Transforming our Business Market Outlook Questions 3 Key Investment Drivers Australia's most trusted agribusiness brand 1 EPS Growth ▪ Compelling Total Shareholder Return ▪ 30% 10yr EPS CAGR ▪ ROC >15% and dividend payout of between 40-60% 2 Geographic and product diversification ▪ Multi-faceted agribusiness ▪ Diversified product offerings and location ▪ Supply chain consolidation 3 Attractive market and Company outlook ▪ ▪ ▪ ▪ 4 Transformational initiatives benefits ▪ Cost and capital efficiencies ▪ Systems modernisation benefits expected from FY24+ ▪ Rural products supply chain optimisation 5 Significant pipeline of new opportunities ▪ Points of presence growth ▪ Bolt on acquisition synergies ▪ Compounding member growth for wholesale network 6 Robust balance sheet supporting growth ▪ Resilient balance sheet ▪ Leverage headroom available to fund future growth ▪ Shareholder returns focus $48b total farm inputs market (7.3% share) $22b current Elders addressable market Operational efficiencies Continued organic and acquisitive growth 4 Earnings Growth and Resilience Despite Seasonal Variability Resilient earnings growth with geographical, product and service diversity insulating against severe weather events El Niño Underlying EBIT 2017-2019 Drought La Niña FY23 Guidance $232m Drought Underlying EBIT Range $200m³ $167m Bushfires $180m³ 2H23 $121m 5 Floods $180m - $200m Key Drivers 45% QLD in drought1 $71m $75m $83m2 $74m 1. Rural products gross margin weighted to H2 $52m 2. $41m $28m Heatwaves & prolonged warm spells FY14 Prolonged warm spells FY15 Esperance and Pinery bushfires Floods, Cyclone Debbie FY16 FY17 1. 2. 3. 4. 5. As at 1 August 2022 Drought Declarations | LongPaddock | Queensland Government HY23 EBIT FY23 EBIT Guidance Supported by the USA import beef price improvement FY20 AIRR Acquisition NSW & QLD floods FY20 FY21 NSW, WA & QLD floods NSW & QLD floods improvement4 3. Cost to earn improvement Townsville floods FY18 Widespread drought FY14 baseline year prior to the first 8PP in FY15 Black Summer bushfires Livestock turnover FY19 FY22 FY23 Covid-19 Pandemic Ukraine Interest rate & Inflation increases Delayed Winter Crop 5 HY23 Highlights PEOPLE CUSTOMERS COMMUNITY SHAREHOLDERS 11.9 #1 $0.3m 32.3 cents TRIFR1 most trusted agribusiness brand to RFDS, continuation of the three-year sponsorship underlying earnings per share 79% employee engagement 43% 51 net promoter score2 female workforce 26 based on Australia headcount additional locations +250 FTE 23.0 cents $1.1m sponsorships and donations dividends per share³ 71% 395 local community sports teams and events sponsored dividend payout ratio vs. March 2022 1. 2. 3. Total Recordable Injuries Frequency Rate: all fatalities, LTIs and medical treatment injuries multiplied by 1,000,000 then divided by hours worked NPS survey methodology changed to a half-yearly cycle, and only surveyed clients associated with Elders branded branches 30% Franked 6 HY23 Financial Summary Comparison to very favourable trading conditions in HY22 SALES GROSS MARGIN UNDERLYING EBIT $1.7b $305.8m $82.8m +9% -6% -38% from $1.5b from $326.4m from $132.9m COSTS COST TO EARN RATIO RETURN ON CAPITAL Costs / gross margin R12 EBIT/ R12 avg net operating assets 73% 16.9% from $193.6m from 59% from 27.8% $223.0m +15% 1. CASH CONVERSION LEVERAGE RATIO GEARING RATIO YTD Operating cash flow / YTD U’NPAT R12 Avg net debt / R12 EBITDA¹ R12 Avg net debt / Closing equity (172%) 1.0 times 46.2% from (61%) from 0.7 times from 37.9% Comparison vs HY22, excluding AASB 16 Leases 7 Sustainability OUR PRIORITIES OUR PRINCIPLES OUR PROGRESS ▪ We provide our customers and clients with the goods and services they need • Increasing the amount of solar power we generate onsite ▪ Formed a dedicated Strategy, Sustainability and innovation function ▪ We support our people and the industries and communities in which we operate • Deeper understanding of our waste outputs and developing a strategy to reduce waste to landfill ▪ Solar farm development at Killara Feedlot near completion ▪ We do our part to look after the environment and animals in our care • Further climate change scenario analysis and enhanced disclosure aligned with the TCFD Recommendations ▪ We operate ethically and to the highest standard • Continue to develop our approach to ethical sourcing ▪ Solar installations completed on several branches ▪ Packaging waste policy launched and waste strategy development underway ▪ Independent on-site audits of suppliers to Titan AG continue 8 Safety, Health & Well-Being Lost time injuries (LTI) 2 9 lost time injuries in HY23 6 4 Average 3 2 FY19 FY20 2 FY21 FY22 HY23 Total recordable injuries frequency rate (TRIFR)1 17.8 18.7 10% compound reduction in TRIFR since FY19 100% branch risk radar2 completed during Safety Week -10% 15.0 12.6 FY19 FY20 FY21 FY22 11.9 HY23 9 1. 2. All fatalities, LTIs and medical treatment injuries multiplied by 1,000,000 then divided by hours worked Checklist of risks to ensure employees are operating in a safe working environment 10 HY23 Industry Backdrop Market volatility impacted the agricultural industry FY22 IN REVIEW The first half of FY22 was characterised by historically high livestock prices, very high real estate turnover and supply chain disruption which brought forward client procurement LIVESTOCK PRICES¹ Cattle (c/kg cwt) Lght Lamb (c/kg cwt) This created the historically unusual scenario where FY22 earnings were weighted to the first half over the second 1,117 Mutton (c/kg cwt) 868 LIVESTOCK PRICES ▪ Cattle prices and demand declined in line with a softening international market 800 654 640 546 566 ▪ Large sheep flock and subdued demand has had a negative impact on domestic price 429 ▪ Wet conditions supported natural grazing and excess feed, affecting speed of cattle to market in key areas Mar 21 Mar 23 FLOOD EVENTS ▪ Floods across the East-Coast and North-Western Australia have caused some damage to the 2022 summer crops FERTILISER PRICES² Urea DAP ▪ Volume of crop chemicals in storage and on farm are higher in March than in prior periods due to these delays 1,273 1,183 906 SUPPLY CHAIN IMPROVEMENTS ▪ Imported crop chemicals are arriving in Australia earlier than anticipated as a result of accelerating supply chains ▪ Delayed winter crop further contributed to higher inventory levels DECREASING PRICES OF CROP INPUTS ▪ Weakening prices delayed fertiliser uptake and put pressure on gross margin 693 469 458 Mar 21 Mar 23 Source: Reproduced courtesy of Meat & Livestock Australia Limited www.mla.com.au Source: Fertilizer Week; Fertilizer International; World Bank. and https://www.indexmundi.com/ 11 HY23 Financial Performance: Summary FY23 EBIT guidance between $180m - $200m Underlying EBIT ($m) Sales Revenue ($m) +22.6% +24.9% 3,445 232 2,549 167 200¹ 180¹ 2,093 121 1,626 74 733 900 1,101 FY19 FY20 FY21 1,515 133 1,657 53 34 FY22 HY23 FY19 FY20 83 74 FY21 FY22 FY23 Underlying Earnings per Share (cents)³ Costs ($m) vs Cost to Earn (%)² +7.4% +12.5% 97 421 97 363 70 317 278 223 79% 72% 69% 64% 71% 139 168 194 223 151 FY19 FY20 FY21 FY22 HY23 53 58 24 31 FY19 FY20 1. FY23 guidance 2. Cost to earn is calculated on a rolling 12 months 3. FY19 – FY21 did not include tax expense in underlying NPAT; Adjusted Underlying NPAT HY23: 76.3cps **CAGR calculated on HY performance 43 FY21 32 FY22 HY23 2H HY 12 12 HY23 Financial Performance: Summary Resilient performance despite delayed start to winter crop compared to HY22 Key metrics ($m) HY23 HY22 Var Var % Sales revenue 1,657.3 1,514.8  142.5 9% Gross margin 305.8 326.4  (20.6) (6%) Gross margin % 18.5% 21.5%  (3.0%) n/a Costs 223.0 193.6  29.4 15% Underlying EBIT 82.8 132.9  (50.1) (38%) Reported net profit after tax 48.8 91.2  (42.4) (46%) Return on capital (%) ¹ 16.9% 27.8%  (10.9%) n/a Average net debt (excl. AASB 16) 268.6 232.9  35.7 15% Average net debt (incl. AASB 16) 395.5 349.7  45.9 13% Leverage ratio (times) ² 1.0 0.7  0.3 43% Operating cash flow (86.9) (55.4)  (31.5) (57%) Underlying earnings per share (cents) 32.3 58.3  (26.0) (45%) Dividend per share (cents) ³ 23.0 28.0  (5.0) (18%) 1. 2. 3. Return on capital = Rolling 12 months Underlying EBIT / (working capital + investments + property, plant and equipment + right of use assets + intangibles (excluding Elders brand name) – DTL on acquisitions – lease liabilities – provisions) Target leverage of 1.5 - 2.0 times excludes AASB 16 Franked at 30% 13 HY23 Product Performance Mixed results across the product portfolio compared to strong market conditions in HY22 Rural Products Gross Margin by Category ($m) Change in product margin ($m) HY22 NPAT 91.2 179 HY22 Fertiliser HY23 Wholesale Products 117 Retail Products 4.8 Wholesale Products (5.1) Agency Services 140.7 (4.4) Financial Services 3.2 AgChem 89 145.5 Animal Health 68 (18.2) Real Estate Services 37.8 32.7 82.2 64.0 33.3 28.9 23.3 26.5 Other Retail HY19 HY20 HY21 -6.9% HY22 HY23 Insurance Gross Written Premiums ($m)3 Sheep Price ($)2 Cattle Price ($)2 -42.4 (-46%) Real Estate Turnover ($m) -21.6% -21.8% Farmland Feed & Processing Services (0.9) 9.1 1,952 8.2 (29.4) (193.6) 176 1,817 1,586 Costs 177 177 138 139 435 (223.0) 603 +13.8% 161 1,215 360 1,851 475 1,470 379 975 Interest, Tax,¹ NCI & Other HY23 7.6 48.8 (41.6) (34.0) 91.2 48.8 1,135 865 FY19 FY20 FY21 FY22 HY23 1. 2. 3. 2,368 Residential NCI – Non controlling interests; Other – includes $1.7m non-recurring expense Cattle and Sheep prices are internal averages, not externally verifiable Principal positions are held by Elders Insurance Underwriting Agency (Elders 20% equity investment) FY19 FY20 FY21 FY22 HY23 HY19 HY20 HY21 HY22 HY23 HY19 HY20 HY21 HY22 HY23 14 Ready HY23 Gross Margin Diversification A diversified business model provides earnings resilience +2.1% 79.2 80.9 Total Gross Margin ($m) -22.1% Positive contribution from backward integration and network sales growth, partially offset by temporary gross margin compression 326 306 HY22 HY23 82.2 64.0 HY22 HY23 -13.5% -13.2% 37.8 -23.5% +32.9% +18.0% +13.7% 33.3 32.7 28.9 25.1 21.8 19.2 23.6 26.5 23.3 20.0 -9.9% 16.4 9.1 AgChem Fertiliser Animal Health Other Retail Retail Products 26.5% 6.3% 7.1% 7.7% Wholesale Products Agency Services 10.7% 20.9% 8.2 Real Estate Services Financial Services Feed & Processing Services 9.5% 8.7% 2.6% Pie charts represent percentage of total HY23 gross margin 15 HY23 Geographical Diversification Geographical diversification mitigates the impact of events like the East coast floods Western Australia 31 22.4% 10 HY23 HY22 South Australia HY23 New South Wales 17.2% 25 22.1% 28 24 HY22 HY23 19 HY22 HY23 Tasmania 4 9.1% 16 25 HY22 Queensland & Northern Territory 3.1% 3 Victoria & Riverina 26.1% 46 29 HY22 HY23 HY22 HY23 Excludes Wholesale Products, International and Corporate Overheads Values refer to Underlying EBIT ($m) 16 HY23 Cost Drivers Investment in people to support network growth and transformational projects driving costs PEOPLE HY22 Costs People 193.6 HY22 13.6 126.5 HY23 140.1 ▪ Network growth +116 FTE ▪ Acquisitive growth +57 FTE ▪ Transformational growth +29 FTE ▪ Graduate program +37 FTE ▪ Corporate services +11 FTE Cost ($m) vs Cost to Earn (%) ³ +12.5% 421 363 317 278 Acquisitions Property & Lease Costs Depreciation & Amortisation¹ 0.4 2.0 2.0 22.4 6.6 18.6 2.4 ACQUISITIONS 24.4 2.4 9.0 11.4 5.2 12.1 17.3 Operating & Other Expenses (0.8) 3.0 2.2 1. 2. 3. 223.0 193.6 ▪ +12 additional points of presence 72% 69% FY20 FY21 64% 71%² 25.2 Motor Vehicle HY23 Costs 6 acquisitions 79% TRANSFORMATIONAL PROJECTS Transformational Projects 223 ▪ VEHICLES, AND OTHER FY19 FY22 HY23 ▪ Investment in efficiencies ▪ Licensing fees and costs ▪ Cyber security and data lake TRANSFORMATIONAL PROJECTS ▪ Additional motor vehicles, rising fuel costs ▪ Net increase of 26 points of presence Systems Modernisation Supply Chain Optimisation Elders Wool Handling ▪ Higher depreciation in line with capex initiatives Cost to earn 223.0 Includes depreciation on right of use asset properties and motor vehicles per AASB 16 leases 71% HY23 cost to earn is based on rolling 12 months 12.5% CAGR is calculated on the H1 numbers 17 HY23 Capital Allocation Working capital expected to decline in H2 following the 2023 winter crop Return on Capital (%)1 YTD Average Working Capital ($m) -10.9 27.8% 693 26.2% 21.6% 586 607 HY22 FY22 3 Year Avg 16.9% HY22 FY22 HY23 Inventories² ($m) Trade & Other Receivables ($m) 884 773 825 820 848 679 FY22 HY23 558 HY22 Average 1. 2. 541 463 433 HY22 Trade & Other Payables ($m) 892 596 FY22 HY23 HY23 832 620 HY22 681 753 FY22 696 776 HY23 Balance Date Return on capital 3-year average is calculated on the 12 months to 31 March 2021, 31 March 2022 and 31 March 2023 Including Livestock 18 HY23 Cash Flow H1 cashflows are historically negative as working capital builds for the winter crop Cash conversion (%)2 Operating cash flow ($m) (8.9) 29.2 82.8 -111% 130.1 27.0 (72.3) -61% -172% HY23 HY22 (121.5) Working Capital to Sales (%)3 23.8 (47.0) +1.6% (86.9) EBIT Depreciation & amortisation Other non cash items Interest, tax and dividends EBITDA adjusted for non cash items (Inc)/dec in trade and other receivables (Inc)/dec in inventories Inc/(dec) in Other trade and movements1 other payables Operating cash flow Key metrics ($m) HY23 HY22 Var Underlying EBITDA adjusted for non cash items 130.1 187.0 (30%) Movements in assets and liabilities (217.0) (242.4) 10% Cash from operating activities (86.9) (55.4) (57%) Investing cash flows (99.7) (46.2) (116%) Financing cash flows 182.8 66.5 175% Net cash flow (3.8) (35.1) 89% 17% 19% HY22 HY23 Net Cash Flow ($m) 1. 2. 3. Other movements includes provisions and balances acquired via acquisitions Cash conversion is calculated on a YTD basis, Operating Cash Flow / NPAT Working capital to sales is calculated on a rolling 12 month basis +31.3 (-89%) (3.8) (35.1) HY22 HY23 19 HY23 Net Debt Leverage headroom provides options for future growth Net debt, balance date ($m) Leverage ratio Interest cover Gearing ratio Average net debt / EBITDA EBITDA / net interest Average net debt / closing equity 581.7 384.5 438.7 Borrowings Lease Liabilities Cash 279.1 118.4 13.0 HY22 157.0 Including / excluding AASB 16 +197.2 +8.3 +0.4 1.6 1.2 15.1 1.0 0.7 HY22 HY23 HY22 Lease Liabilities Cash 116.8 126.9 21.1 32.7 HY23 HY22 1. 2. Banking covenants1,2 301.3 254.0 HY23 HY22 HY23 Incl AASB 16 Leverage ratio Interest cover Net worth <2.5 times >3.5 times >$250 million 395.5 Borrowings 31.4 25.4 Excl AASB 16 Net debt, average ($m) 46.2 37.9 14.0 HY23 349.7 -19.9 35.0 +14.2 -1.7 2.5 +608.2 17.7 0.8 858.2 250 3.5 Covenant HY23 Covenant HY23 Covenant Calculated pursuant to definitions in group syndicated facilities which are subject to change over time. The current covenant calculations exclude all accounting adjustments required by AASB 16 Leases and the leverage covenant excludes the debtor securitisation balance from net debt Undrawn facilities at 31 March was $92 million out of total available facilities of $550 million and significant headroom in our banking covenants HY23 20 HY23 Dividend and Earnings Per Share Growth drivers delivering compelling returns through the cycles Underlying Earnings per Share (cents) Adjusted Underlying Earnings per Share (cents)¹ ² 2H Adjusted underlying EPS HY FY 97 70 54 HY 97 +16.0% 134 97 97 39 70 53 53 39 44 32 28 24 31 FY19 FY20 43 FY21 58 FY22 HY23 24 31 FY19 FY20 43 FY21 58 32 FY22 HY23 Dividend Payout Ratio (%) Dividends per Share (cents) 71% FY +26.4% HY 56 42 47% 48% HY21 HY22 37% 29% 18 23 22 20 1. 2. 9 9 FY19 FY20 FY21 28 FY22 HY23 HY19 HY20 HY23 Adjusted for underlying tax expense recognized from 1 October 2021. HY23 Adjusted underlying earnings per share is 76 cents per share, up 31% on HY22. Adjusted Underlying EPS CAGR is based on H1 numbers FY19 and FY 20 dividends were fully franked, FY21 was partially franked at 20%, FY22 and HY23 dividends were partiall y franked at 30% CAGR calculated on HY performance 21 22 Elders Executive Overview Highly experienced and diversified team EXCO AVERAGE TENURE: 11 YEARS MARK ALLISON PAUL ROSSITER ANNA BENNETT KIIM LIM PETER HASTINGS OLIVIA RICHARDSON VIV DA ROS JEREMY COWAN TOM RUSSO Managing Director & CEO Group Treasurer and Acting CFO EGM Strategy, Sustainability & Innovation EGM Business Development General Counsel & Company Secretary Chief People Officer Chief Information Officer EGM Rural Products EGM Network EXCO LITE AVERAGE TENURE: 12.5 YEARS NICK CLARK GM Financial Services & Network Improvement BRENDAN RINALDI State GM VIC/RIV BELINDA CONNOR MARK BARBER PETE LOUREY GM Farmland Real Estate & Agribusiness Investments Chief Operating Officer AIRR NAOMI DALLENOGARE GM Agency JOHN MOLENAAR GM Customer Solutions GM Residential Real Estate & Brand JAMIE BROGAN JAMES CORNISH NICK FAZEKAS BERNARD SEAL RYAN ROBINSON ANDREW TALBOT State GM QLD & NT State GM TAS State GM WA State GM SA State GM NSW Killara GM DAVE ADAMSON Head of Communications & Stakeholder Engagement 23 We Are Delivering On Our Third Eight Point Plan 1 WIN MARKET SHARE 5 ▪ ▪ ▪ ▪ DEVELOP A SUSTAINABILITY PROGRAM Increased our points of presence by 26 locations in HY23 6 Acquisitions in HY23 Focus continues on recruitment of the best talent and investment in training Building new client relationships and service offerings 2 ▪ ▪ ▪ ▪ ▪ Solar farm development at Killara Feedlot near completion Solar installations completed on several branches Packaging waste policy launched and waste strategy development underway Independent on-site audits of suppliers to Titan AG continue Annual Modern Slavery Statement Published ▪ ▪ ▪ ▪ Wave 1 near completion within budget Wave 2 design workshops commenced Dedicated 25+ team On time, on budget with benefits to exceed ROC hurdle ▪ ▪ ▪ ▪ ▪ TRIFR improving to 11.9, falling 0.7 since September 2022 Continued investment in safety capex 250 additional FTE since HY22 to support future growth Highly engaged (79%) and enabled (82%) employees 43% of women in the workforce ▪ ▪ ▪ 16.9% return on capital, exceeding 15% hurdle 71% cost to earn ratio¹, temporarily elevated Leverage ratio below target 6 CAPTURE MORE GROSS MARGIN IN RURAL PRODUCTS ▪ ▪ SYSTEMS MODERNISATION PROGRAM Expanding own brand portfolio to capture more margin within animal health and crop protection products Leveraging our increased scale to negotiate preferred supplier partnerships across the group 3 7 STRENGTHEN AND EXPAND OUR SERVICE OFFERINGS 4 OPTIMISE OUR FEED & PROCESSING BUSINESSES ▪ ▪ ▪ ▪ ▪ Elders Wool Handling project Streamline supply chain optimisation New product lines and brands Growth in Financial Services offerings Pipeline of APVMA registrations ▪ Sustainability projects to better utilise the available water and maximise crop production for downstream use in feedlot operations Strengthened our supply chain through expanded backgrounding operations and increased market share with key customers Maintaining a target of 100% occupancy at Killara to drive efficiency and throughput ▪ ▪ 1. PEOPLE AND SAFETY 8 71% HY23 cost to earn is based on rolling 12 months COST AND CAPITAL EFFICIENCY 24 Compelling shareholder returns Industry leading sustainability outcomes Most trusted Agribusiness brand 5-10% EBIT and EPS growth through the cycles at minimum 15% ROC across health and safety, community, environment and governance in rural and regional Australia RURAL PRODUCTS AGENCY SERVICES 1 Deepen customer relationships 2 Balanced growth of products, for mutually beneficial outcomes services, geographies and FEED AND PROCESSING TECHNICAL SERVICES FINANCIAL SERVICES REAL ESTATE SERVICES 3 Enhance margin through value 4 Lead sustainability and productivity to chain efficiencies and integration channels benefit our customers, communities, industry, people and shareholders 5 People – Invest in our teams to ensure 6 Streamline supply chain to 7 Systems Modernisation – Invest in and deploy we have the right people in the right fully optimise all parts of our leading technology solutions that improve discipline and commitment to places who are set up for success integrated value chain customer experience, drive efficiencies, and cost and capital efficiency 8 Maintain unflinching financial better accommodate change CUSTOMER FOCUSED INNOVATION TEAM WORK INTEGRITY ACCOUNTABILITY Growth Pillars Multi-Faceted strategy to drive growth through the cycles to FY26 Geographic Expansion Backward Integration Market Share Gross Margin Capture ▪ Strong pipeline of bolt on acquisitions to expand our geographic reach ▪ Considered pathway to explore New Channels to Market ▪ Increasing share of the addressable ▪ Investment in systems modernisation will ▪ Recent strategic investment provides market in both crop protection unlock efficiencies through enhanced entry into chemical formulation supply and animal health own brand products analytics and technology chains through brand awareness and client share growth opportunities exists engagement offerings to attract member growth in our wholesale business Transformational Investment Cost and Capital Efficiency greenfield locations where market ▪ Investment in client and service Transformational Projects ▪ Continued investment in our new product pipeline across the portfolio ▪ Multi year supply chain optimisation project to deliver significant value ▪ Historical examples include Titan AG and AIRR through improved planning, sourcing and reduction in safety stock ▪ Expansion of service offering to include wool handling 26 Our Networks are Growing Dual growth strategy covering Elders and AIRR providing sustainable contribution to 5-10% EBIT growth LISMORE Points of Presence Growth Since FY19 BASE COFFS HARBOUR KEMPSEY 1. CURRENT GROWTH CAGR FY19 MEMBERS GREENFIELD ACQUISITION HY23 ELDERS 523 - 10 46 579 2.95% AIRR¹ 355 16 4 5 380 1.96% TOTAL 878 16 14 51 959 2.55% Since acquisition November 2019 27 EMMS MOONEY Significant Opportunity for Further Geographic Growth Points of presence increased by 26 locations +26 NEW LOCATIONS SINCE MARCH 2022 Elders’ Points of Presence GROWTH OPPORTUNITIES TO GAIN MARKET SHARE AND GROW MEMBER BASE IN NEW GEOGRAPHIES Strategic Geographic Locations Elders Market Growth Opportunity $22b 599 CURRENT ADDRESSABLE MARKET1 3.6% CAGR 579 573 558 $48b TOTAL FARM COSTS MARKET3 FY21 Growth: HY22 FY22 HY23 2.7% 1.0% 2.7% 7.3% CURRENT ELDERS 2 1. 2. 3. Current Addressable Market is an internally calculated amount based on product Internal measure – Elders estimates it has a 7.3% market share of the “Total Australian Farm Costs market” of $48b Source: ABARES, Agricultural Commodities – Farm Costs and Returns Australia, June 2022 28 Investing Now for Future Growth Transformational projects to drive benefits through FY26 and beyond from cost and capital efficiencies Estimated Benefits to Flow Benefits ▪ Investment in sourcing capability will unlock significant value across our portfolio ▪ Streamlined processes across our vertically integrated channels to market ▪ Gross margin benefits through enhanced reporting and processes ▪ Wave 1 to be completed during FY23 with successful implementation of key financial and people foundations ▪ Design workshops for Wave 2 underway, to implement best practice business processes ▪ EBIT level benefits anticipated to be recognised from FY24 onwards ▪ EBIT benefits through economies of scale via a partially automated handling facility ▪ Provide a modern, efficient and scalable investment ▪ Greater control over the quality, standard and compliance of Elders wool handling operations ▪ FY23 FY24 FY25 FY26+ RURAL PRODUCTS SUPPLY CHAIN OPTIMISATION Improved planning, sourcing and supply chain models with fit for purpose sales and operational platforms designed to deliver improved gross margin and a reduction in safety stock across Rural Products Differentiated service offering to our existing and new client base through enhanced additional logistics and warehouse capability SYSTEMS MODERNISATION Generational investment in modernisation of our platforms to deliver more efficient business processes and an enhanced client experience WOOL SUPPLY CHAIN OPTIMISATION World first automated wool handling model will provide a modern, efficient and scalable investment Notes: Systems Modernisation and wool supply chain expected to deliver returns in excess of 15% ROC Rural Products supply chain optimisation estimated to deliver EBIT of $10-$18m and capital release of $50-$80m (source external consultant September 2022) 29 Systems Modernisation Program Systems transformation to improve cost and capital efficiency through FY26 and beyond PROJECTS COMPLETED AEM WORKDAY FY22 $m HY23 $m CAPEX 4.5 4.5 OPEX - underlying 4.4 2.4 OPEX- non underlying 0.7 1.7 Total 9.6 8.6 Wave 2 EN-ROUTE INTRANET Wave 1 DYNAMICS 365 ▪ $0.8m of CAPEX recognised in HY23 ▪ Detailed workshops currently underway to finalise statement of works with system integrator ▪ Financial impact of Wave 2 to be presented at the full year following statement of works and Board approval 30 We Are Committed To Attracting & Retaining The Best People More people, highly skilled, engaged and diverse WE HAVE MORE PEOPLE… …WHO ARE HIGHLY ENGAGED… Engagement1 FTEs 8.5% CAGR 2,294 2,451 …AND DIVERSE Female non-executive directors Women in senior executive positions +1.0% 2,585 2,701 78% 79% 78% 79% 33% 60% FY21 HY22 FY22 HY23 Growth: 6.8% 5.5% 4.5% 183 FY21 HY22 FY22 Agronomists Enablement1 6.3% CAGR +3.0% 201 200