Announcement PDF 18 November 2024 2024 Full Year Results Presentation Attached is the Elders Limited (ASX:ELD) presentation of the financial results for the 12-month period ended 30 September 2024. Further Information: Mark Allison, Managing Director & Chief Executive Officer, 0439 030 905 Media Enquiries: Meagan Burbidge, Senior Communications Specialist, 0417 841 092 Authorised by: Elders Limited Board of Directors View this announcement on Elders’ Investor Hub. Elders Limited ABN 34 004 336 636. Registered Office: Level 10, 80 Grenfell Street, Adelaide SA Australia 5000 Full Year Results Presentation for FY24 18 November 2024 Presented by Mark Allison Managing Director and CEO Paul Rossiter CFO 1 Elders Limited 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. A2 Elders Limited ELDERS LIMITED AGENDA Agenda 01 Executive Overview 04 Questions 02 Financial Results 05 Appendix 03 Strategy and Outlook A3 Executive Overview Presented by Mark Allison (Managing Director and CEO) A4 Elders Limited ELDERS LIMITED EXECUTIVE OVERVIEW Key Investment Drivers Australia's most trusted agribusiness brand amongst farmers five years in a row ▪ Through the cycles shareholder value generation ▪ Positioned to benefit from return to average seasonal conditions ▪ Multi-faceted agribusiness ▪ Diversified product offerings and location ▪ Streamlined supply chain offering ▪ Target cash conversion above 90% and dividend payout of between 4060% EPS Growth ▪ Room to grow market share in a large total farm inputs market ▪ Cost and capital efficiencies ▪ Network expansion opportunities ▪ Opportunities to drive operational efficiencies ▪ Systems Modernisation benefits expected from FY25 ▪ Bolt on acquisition synergies ▪ Selective organic and acquisitive growth ▪ Rural Products supply chain optimisation ▪ Member growth for wholesale network ▪ Resilient balance sheet ▪ Covenant leverage headroom ▪ Accounting leverage forecast to reduce from collection of debtors and normalisation of Q1 ▪ Shareholder returns focus Geographic, product and channel diversification Attractive market and company outlook Transformational initiatives benefits Significant pipeline of new opportunities Robust balance sheet supporting growth A5 ELDERS LIMITED EXECUTIVE OVERVIEW Earnings Resilience Through Seasonal Volatility Resilient EBIT reflects improving seasonal conditions and client activity notwithstanding lost first quarter earnings First Second Third Fourth Eight Point Plan Eight Point Plan Eight Point Plan Eight Point Plan EBIT¹ +37.5% EPS¹ +735.2% ROC¹ 25.7% EBIT¹ +22.8% EPS¹ +12.8% ROC¹ 20.9% EBIT¹ +17.0% EPS¹ +13.6% ROC¹ 21.6% Baseline Year (EBIT $’m) 232.1 FY HY 166.5 120.6 70.4 56.2 40.5 27.3 29.1 74.5 26.6 73.7 99.1 170.8 128.0 88.0 92.5 67.6 89.6 39.7 31.0 18.6 13.8 FY14 FY15 Points of Presence Growth² FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 +2 +8 +4 +6 +20 +13 +10 +15 +19 Seasonal backdrop 2015-17 El Niño 2017-19 Drought 2019-23 La Niña 2023-24 El Niño 2024 Average 1. Average EBIT and EPS growth and average ROC over the Eight Point Plan period 2. Growth generated from acquisitions does not include additional points of presence from greenfield locations A6 ELDERS LIMITED EXECUTIVE OVERVIEW People and Customer Highlights 2 45% lost time injuries women in the workforce 9.0 total recordable injury frequency rate #1 most trusted agribusiness brand amongst farmers fifth year in a row¹ 47 net promoter score 21% women in senior positions 77% employee engagement 21 additional points of presence A7 1. “Most Trusted Agribusiness Products and Services Brand’, and the ‘Best of the Best Most Trusted Agribusiness Brand’ in the 2024 Roy Morgan Trusted Agribusiness Brand Awards ELDERS LIMITED EXECUTIVE OVERVIEW Safety, Health and Wellbeing Sustaining a safer working environment Total Recordable Injury Frequency Rate (TRIFR)1 Lost Time Injuries (LTI) 6 18.7 15.1 -17% 12.6 3 3 Average 3 10.1 9.0 2 FY20 1. 2 FY21 FY22 FY23 FY24 All fatalities, LTIs and medical treatment injuries multiplied by 1,000,000 then divided by hours worked FY20 FY21 FY22 FY23 FY24 A8 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: ▪ Focus for 2024 was embedding our sustainability principles into business operations 23.9 21% Reduction vs baseline ▪ Implementation of centralised waste management services provider, driving waste reduction initiatives 25% Reduction vs baseline 18.8 17.9 23% Reduction vs baseline ▪ Implementation of an ethical sourcing platform, enhancing supplier risk screening 18.3 ▪ Partnering with Big Bag Recovery to promote enhanced awareness of plastic bag recoverability through Elders collection points 64,772 60,828 59,551 57,210 Baseline FY21 FY22 FY23 ▪ Targeted solar and LED lighting site upgrades to reduce emissions FY24 Bar Chart - (tCO2e/$m revenue) Targets 100% renewable electricity in all Australian sites by 20252 tCO2e ▪ Solar array at Killara Feedlot installed and commissioned ▪ Commenced trial of electric vehicles at several of our real estate branches 50% reduction in Scope 1 and 2 emissions intensity (tCO2e/$m revenue) by 2030, against a baseline year, 2021 (subject to commercially viable technology 1. being available to address feedlot cattle emissions) Net zero Scope 1 and 2 emissions by 20501 (tCO2e) 2. Scope 1: direct emissions from owned or controlled sources. Scope 2: indirect emissions from the generation of purchased electricity. Reported emissions are based on the period 1 July 2023 to 30 June 2024 Target achieved through on-site solar generation and purchase and retirement of LGCs A9 ELDERS LIMITED EXECUTIVE OVERVIEW Financial Overview Improved second half unable to fully offset materially impacted first quarter earnings, notwithstanding improving seasonal conditions and client sentiment $128.0m 11.3% 129% 36c Return on Capital Cash Conversion Dividends Per Share R12 EBIT/ R12 avg net operating assets YTD Operating cash flow / YTD U’NPAT Underlying EBIT -25% YOY Negatively impacted by the Q1 result from 16.0% Below target benchmark due to Q1 EBIT impact and capital spend on transformational projects from 163% from 46 cents Negatively impacted by higher debtors at balance date Dividend payout ratio temporarily above target elevated because of Q1 underperformance A10 Financial Results Presented by Paul Rossiter (CFO) A11 Elders Limited ELDERS LIMITED FINANCIAL RESULTS Financial Performance Overview ▪ EBIT within guidance, supported by return to average seasonal conditions in most regions FY24 Underlying EBIT ▪ Achievement of cost targets ▪ Second half EBIT exceeded 2H23 ▪ Thirteen acquisitions in FY24 with ongoing pipeline Fourth Eight Point Plan ▪ Growing our footprint and diversifying our product portfolio ▪ Transform our business through enhanced systems and processes ▪ Average seasonal conditions forecast in FY25 Operational Resilience ▪ Continued recovery expected in client sentiment ▪ Ongoing commitment to cost and capital discipline ▪ Headroom maintained in bank covenants Financial Ratios ▪ Leverage ratio forecast to return within target range (1.5x – 2.0x) by FY25 H1¹ ▪ ROC negatively impacted by generational spend on transformational projects ▪ Cash conversion greater than 90% of underlying NPAT 1. Subject to a normal 1Q FY25 and average seasonal conditions A12 ELDERS LIMITED FINANCIAL RESULTS Five-Year Financial Performance EBIT within guidance with forecast return to average seasonal conditions forecast in FY25 Gross Margin ($m) Sales Revenue ($m) +10.6% 3,445 +9.8% 3,321 653 3,131 2,549 638 FY23 FY24 438 2,093 FY20 619 529 FY21 FY22 FY23 FY24 FY20 Costs ($m) FY21 FY22 Underlying EBIT ($m) +1.5% +12.6% 421 232 510 448 171 167 363 317 128 121 133 53 FY20 FY21 FY22 FY23 FY24 FY20 CAGR calculated on full year performance Cost base elevated following the change in Elders Wool cost methodology from inclusion in gross margin to operational costs 83 74 FY21 38 FY22 FY23 FY24 2H HY A13 ELDERS LIMITED FINANCIAL RESULTS Five-Year Shareholder Returns FY24 materially impacted by seasonal and market conditions in the first quarter Adjusted Underlying Earnings per Share (cents)¹ Underlying Earnings per Share (cents) -6.5% 96.7 97.3 69.9 134.1 96.7 66.3 40.7 87.6 69.9 53.4 97.3 66.3 40.7 FY20 FY21 FY22 FY23 FY24 FY20 Dividends per Share (cents)² FY21 FY22 Adjusted underlying EPS FY23 FY24 Underlying EPS Dividend Payout Ratio (%)³ 88% +13.1% 69% 58% 56 46 42 43% 36 31% 22 FY20 1. 2. 3. FY21 FY22 FY23 FY24 FY20 Adjusted for underlying tax expense recognised from 1 October 2021 Franked Percentages, FY20 (100%), FY21 (20%), FY22-23 (30%), FY24 (60%, average) Elders dividend policy considers the maintainability of dividends and hence looks through seasonal events such as Q1 FY21 FY22 FY23 FY24 CAGR calculated on full year performance A14 ELDERS LIMITED FINANCIAL RESULTS FY24 Financial Summary Resilient financial result despite below average seasonal and market conditions in the first quarter Key metrics ($m) FY24 FY23 Var Var % Sales revenue 3,131.3 3,321.4  (190.1) (6%) Gross margin 637.6 619.0  18.6 3% Gross margin % 20.4% 18.6%  1.8% n/a Costs 509.6 448.2  61.4 14% Underlying EBIT 128.0 170.8  (42.8) (25%) Underlying net profit after tax 64.0 103.7  (39.7) (38%) Return on capital (%) ¹ 11.3% 16.0%  (4.7%) n/a 436.8 259.7  177.1 68% Leverage ratio (times) ² ,4 3.1 1.4  1.7 121% Operating cash flow 82.9 169.2  (86.3) 51% Cash conversion (%) 129.5% 163.1%  (33.6%) n/a Underlying earnings per share (cents) 40.7 66.3  (25.6) (39%) Dividend per share (cents) ³ 36.0 46.0  (10.0) (22%) Net debt (excl. AASB 16) 1. 2. 3. 4. 4 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 60% average for the full year up from 30% in the prior year Balance date A15 ELDERS LIMITED FINANCIAL RESULTS Gross Margin Diversification Increasing product diversification through targeted organic and acquisitive growth Total Gross Margin ($m) 172.9 -10.6% 652.7 619.0 637.6 FY22 FY23 FY24 158.8 147.0 141.9 +8.3% 123.1 113.7 +38.8% +5.6% 82.6 -5.5% +0.4% 71.7 75.7 +1.9% -5.7% 61.6 58.2 54.5 46.3 73.1 47.3 46.5 39.7 44.6 59.5 53.5 51.5 54.5 44.2 39.2 +25.5% 16.8 Crop Protection Fertiliser Animal Health Retail Products Other Retail Wholesale Products 12% 1. 2. Agency Services¹ 19% Real Estate Services Financial Services 13% 9% -5 45% +0 +1 +3 vs. LY vs. LY vs. LY vs. LY Agency split: Sheep – 34%; Cattle – 48%; Wool and Grain – 18% Pie charts represent percentage of total FY24 gross margin -0 vs. LY 13.7 17.2 Feed & Processing Services 3% +0 vs. LY A16 ELDERS LIMITED FINANCIAL RESULTS Cost Growth Excluding New Business Cost excluding growth and transformation increased 1.8%, well below CPI Cost Increase excl. Growth and Transformational Initiatives ($m) Growth Adjusted Cost Movement² ($m) Commentary Base Target: ▪ CPI increase was partially funded through cost saving initiatives 509.6 FY24: ▪ 16.2 FY24 cost increase is shared between acquisitive SG&A and recurring transformational growth expenditure 12.0 ▪ Cost growth below Australian CPI increase ▪ 263 additional FTE relating entirely to FY24 acquisitions ▪ 15 fewer FTE YoY, excluding growth from acquisitions Acquisitions and Transformational Projects: 20.6 +1.8% ▪ FY23: 9 Acquisitions, the largest being Emms Mooney and Rockingham ▪ FY24: 13 Acquisitions, the largest being Charles Stewart and Knight Frank Tas 456.1 448.2 4.7 ▪ Transformational projects including toll formulation facilities in WA and Systems Modernisation, inclusive of the additional depreciation and 7.9 amortisation costs pertaining to these projects Elders Wool ▪ FY24 cost increase reflects the change in operational cost methodology, away from its historical inclusion in gross margin as part of the AWH fees FY23 Base 1. 2. Base Growth FY24 excl New Business FY23 Acquisitions¹ FY24 Acquisitions Elders Wool Transformational Projects FY24 Act ▪ The in-house model has resulted in the comparative fees being recorded under costs with the benefit in gross margin. FY23 acquisitions with less than 12 months ownership Includes the rolling twelve-month costs from acquisitions and transformational projects with less than 12 months of earnings and thus is not directly comparable to slide 36 which is a year-on-year comparison A17 ELDERS LIMITED FINANCIAL RESULTS Industry Backdrop – Rural Products Sales negatively impacted against prior period by a full year of lower crop protection prices FY24 FY23 FY23 UREA Index ($/tonnes)¹ Glyphosate 95%¹ ($/kg) 14.0 9-Yr Mean 12.0 +/-1 Std Dev FY24 1,200 3.4 Std Dev 1 Std Dev 1,000 +/-2 Std Dev 5.1 Std Dev 10-Yr Mean 12.6 1,130 2 Std Dev 10.0 800 8.0 600 6.0 400 4.0 200 2.0 0.0 0 2015 2019 2024 2014 2019 Elders Retail Cropping Inputs 5 Year Trend² Elders Retail Fertiliser 5 Year Trend +8.8% 65,511 62,999 69,184 2024 +9.9% 73,615 973 52,553 1,019 1,181 1,074 809 51 123 101 96 28 42 42 FY23 FY24 33 93 75 FY20 FY21 FY22 FY23 FY24 Volume (Tonnes’000) 1. Reproduced courtesy of Refinitive 2. Excludes the benefits of our backward integration 3. https://tradingeconomics.com/commodity/urea FY20 GM ($’m) FY21 FY22 Volume (Tonnes’000) GM ($’m) A18 ELDERS LIMITED FINANCIAL RESULTS Continued Volume Growth Across Key Products Continued sales volume growth unable to offset lower crop protection prices against prior period Volumes (Tonnes’ 000) 1,571 107 1,452 7 13 (7) Animal Health Crop Protection ▪ Lower volume growth impacted by weaker ▪ Volumes impacted by cautious client livestock prices and soft client sentiment sentiment following the El Niño ▪ Rebounding NYCI¹ saw improved client sentiment in H2 announcement in H1 ▪ Gross margin impacted by declining input prices FY23 Animal Health Crop Protection Seed Fertiliser FY24 Rural Product Sales ($m) 2,792 199 (389) 2,705 102 FY23 Volumes Price Other Retail Seed Fertiliser ▪ Volume growth unable to fully offset ▪ Volumes up 10%, unable to offset lower margin pressure from lower prices and global input prices compared to the prior product mix period FY24 A19 1. NYCI – National Young Cattle Indicator ELDERS LIMITED FINANCIAL RESULTS Industry Backdrop – Livestock Sustained uplift in livestock markets with improvement seen in volumes traded and prices FY23 FY24 ▪ FY24 index experienced a positive revision (+82%) since September 2023, before reverting to the 10- NYCI ($/Head) year mean 2,500 ▪ The price revision was driven by: 1,840 2,000 o Improved seasonal outlook for pasture growth, especially in Eastern Australia 1,500 o Stable cattle volumes ▪ Animal Health sales uplift was experienced following the improvement in cattle prices 1,000 500 0 2014 2019 2024 Trade Lamb ($/Head) ▪ Significant Trade Lamb price revision saw a 85% improvement since September 2023, surpassing the 10-year mean 240 ▪ Price recovery from 10-year low driven by: 220 186 200 o Anticipated tightening of volumes following high stock turn-off in FY23 180 o Improvement in farmer sentiment and rainfall in key regions 160 o Strong global demand forecast to support livestock markets in FY25 140 ▪ Acquisition of Charles Stewart supported volume improvement 120 100 2014 10-Yr Mean 1. 2. 2019 1 Std Dev 2 Std Dev 2024 El Niño “Watch” issued El Niño “Event” issued NYCI – National Young Cattle Indicator Source: Reproduced courtesy of Meat and Livestock Australia Limited - www.mla.com.au http://www.bom.gov.au/climate/enso/outlook/archive/20231219.archive.shtml A20 ELDERS LIMITED FINANCIAL RESULTS Return on Capital Materially impacted by first quarter and the cumulative impact of transformation projects ahead of benefits realisation Return on Capital (%) Normalised Return on Capital (%) 15.8% -1.2 16.9% 0.9% 0.3% 0.9% 15.8% 0.5% 4.5% 2.8% 11.3% 16.0% 11.3% FY23 ROC Normalisation FY24 Actual ROC Misalignment in timing of capital and generation of benefits FY24 Q1 Normalised¹ Transformational projects: Capital Transformational projects: Costs FY24 Acquisitions FY24 Normalised Systems Modernisation Elders Wool 1. The historical 4-year mean Q1 EBIT is $32m (based on management accounts and unaudited) A21 ELDERS LIMITED FINANCIAL RESULTS Working Capital Significant progress on inventory reduction, offset by higher debtors at balance date Working Capital ($m) Disciplined Capital Management Trade and Other Receivables¹ ($m) Average 734 607 625 ▪ +42 +6.7% Balance Date capital management 676 633 +157 FY24 average working capital benefitted from disciplined 820 738 FY22 FY23 895 675 ▪ Balance date working capital supported by a reduction in inventory offset by unfavourable timing of trade receivables FY24 due to a late winter crop start in WA and SA Inventory² ($m) FY22 FY23 FY24 Capital management remains a focus into FY25, with benefits expected from: Average Working Capital by Product ($m) ▪ less volatile pricing on key actives within inventory ▪ improved collections on receivables ordinarily expected in -58 734 -94 558 541 FY22 FY23 447 FY24 FY24 676 607 ▪ enhanced procurement planning and demand initiatives Trade and Other Payables ($m) +21 FY22 Other 1. 2. Agency FY23 Wholesale Products Balance Date Including Livestock at Balance Date FY24 753 646 667 FY22 FY23 FY24 Retail Products A22 ELDERS LIMITED FINANCIAL RESULTS Cash Flow Cash conversion evident of focus on inventory management, debtors elevated by later season in WA and SA Cash Conversion (%)2 Operating Cash Flow ($m) 19.2 (20.6) 200.0 -34 163% 129% 73.4 20.9 128.0 (157.2) (74.6) 82.9 93.8 FY23 FY24 AASB 16 Adjusted Cash Conversion (%) EBIT Depreciation and amortisation Other non cash items Interest, tax and dividends EBITDA adjusted for non cash items (Inc)/dec in trade and other receivables (Inc)/dec in inventories Inc/(dec) in Other trade and movements1 other payables Operating cash flow 4 -78 120% 42% Key metrics ($m) FY24 FY23 Var Underlying EBITDA adjusted for non cash items 200.0 239.1 (16%) Movements in assets and liabilities (117.1) (69.9) (68%) Cash from operating activities 82.9 169.2 (51%) Investing cash flows (150.9) (132.1) (14%) Financing cash flows 86.7 (33.5) (359%) Net cash flow 18.7 3.6 (419%) FY23 1. 2. 3. Other movements includes provisions and balances acquired via acquisitions Cash conversion is calculated on a YTD basis, operating cash flow / U’NPAT Working capital to sales is calculated on a rolling 12-month basis 4. 5. Excludes the impact of AASB 16 cash lease expenses of $55.8m Operating cash flow includes the Rural Bank termination payment FY24 Working Capital to Sales (%)3 -1 22 22 FY23 FY24 A23 ELDERS LIMITED FINANCIAL RESULTS Net Debt and Financial Ratios Banking covenants maintain headroom with improvement forecast from a normalised first quarter Net Debt, Balance Date ($m) Leverage Ratio Interest Cover Gearing Ratio Balance date net debt / EBITDA EBITDA / net interest Balance date net debt / closing equity 690.5 463.3 Borrowings Lease Liabilities Cash 477.0 281.2 Excluding AASB 16 +227.2 + 1.7 +21.7 -4.4 3.1 52 9.2 4.8 1.4 30 253.7 203.6 21.5 40.2 FY24 FY23 FY23 Net Debt, Average ($m) FY24 FY23 FY24 FY23 FY24 Leverage Ratio Interest Cover Net Worth <2.5 times >3.5 times >$300 million 629.3 480.9 435.2 Borrowings Lease Liabilities Cash 369.9 137.6 26.6 FY23 220.1 25.9 FY24 Banking covenants1,2 +30.9% 2.5 2. +548 5.4 848 3.5 1.3 300 Covenant 1. +1.9 -1.2 FY24 Covenant FY24 Covenant FY24 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 30 September were $90.9 million out of total available facilities of $655 million A24 ELDERS LIMITED FINANCIAL RESULTS Target Leverage Pathway to target in FY25 Q1 (1.5 – 2.0 times), to be driven by normalised first quarter and net debt reduction Leverage (times) Leverage Commentary³ ▪ Leverage 2.5 times, normalised for Q1¹ + 1.1 3.1 ▪ Pathway back to target in FY25 H1 enabled by (0.6) 1.0 1.4 2.5 ▪ Normalised Q1 ▪ Lower acquisition (bolt-on) spend 0.7 ▪ Lower transformational CAPEX spend ▪ Collection of 2024 winter crop debtors ($127.2m deferred terms due in FY25 Q1) FY23 EBITDA Net Debt FY24 Q1¹ FY24 (Normalised) Net Debt ($m) Net Debt Commentary ▪ Net debt elevated despite significant improvement in net paid stock² + 177.1 (6.5) 38.1 (114.9) 259.7 436.8 ▪ Growth contributor to Net Debt increase includes: ▪ 13 acquisitions completed in FY24, annualised EBIT of $14.2m 157.1 ▪ Transformational CAPEX (Systems Modernisation $17.9m, Elders Wool $8.3m, Killara $11.9m) 103.3 ▪ Working capital contribution to Net Debt includes: ▪ Debtors, due to a late 2024 winter crop (SA, WA) start, increased demand for seasonal finance and an increase in arrears FY23 1. 2. Acquisitions Transformation Projects Inventory & Payables Debtors Other The historical 4-year mean Q1 EBIT is $32m (based on management accounts and unaudited) Net paid stock = Inventory - Payables FY24 3. ▪ Partially offset by improvements in net paid stock which is considered sustainable into FY25 Subject to a normal 1Q FY25 and average seasonal conditions A25 Strategy and Outlook Presented by Mark Allison (Managing Director and CEO) A26 Elders Limited 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 minimum 15% ROC across health and safety, community, environment and governance in rural and regional Australia RURAL PRODUCTS TECHNICAL SERVICES FINANCIAL SERVICES REAL ESTATE SERVICES FEED AND PROCESSING RUN TRANSFORM INNOVATE & GROW Optimise the existing business by: Future-proof our business by: Expand and innovate our portfolio by: 1 Deepening customer relationships to drive loyalty and growth 4 Streamlining our supply chain to fully optimise all parts of our integrated value chain 6 Growing our portfolio of products, services, geographic footprint and channels 2 Investing in our people to ensure we have the right people in the right places who are set up for success 5 Modernising our systems with leading technology solutions to enhance customer experience, drive efficiencies and support growth 7 Enhancing margins through value chain expansion and integration 3 Maintaining unflinching financial discipline and commitment to cost and capital efficiency 8 Innovating to create sustainable solutions for our customers and communities CUSTOMER FOCUSED Elders Limited AGENCY SERVICES INNOVATION TEAM WORK INTEGRITY ACCOUNTABILITY ELDERS LIMITED STRATEGY Our Strategic Priorities: Transform Wave 2 go-live to occur November 2024 SYSTEMS MODERNISATION¹ Modernising our platforms to deliver more efficient business processes Wave 2 (Retail) FY23 FY24 Total Budget CAPEX 2.3 17.4 24 – 27 OPEX - non underlying - 5.3 16 – 18 Total 2.3 22.7 40 - 45 FY23 FY24 Total Budget Wave 3 CAPEX - 0.5 7–9 (Livestock) OPEX - non underlying - - 3–4 Total - 0.5 10 – 13 2023 2024 2025 TIMELINE 2022 Wave 1 Wave 3 spend predominately expected in FY25 Wave 2 Wave 3 ROC Benefits > 15% from FY25² 1. Does not include underlying OPEX which predominantly relates to ongoing license fees which are not wave specific 2. First full year of benefits in FY26 A28 ELDERS LIMITED STRATEGY Our Strategic Priorities: Innovate & Grow Strategically growing our footprint Elders’ Points of Presence 4 GROWTH ENABLERS 618 Focus areas for future growth in line with the eight-point 3.5% CAGR 597 plan foundations 576 ▪ Large acquisitions 558 ▪ Organic growth ▪ Bolt-on acquisitions FY21 FY22 FY23 FY24 ▪ Systems Modernisation Benefits Growth: 3.2% 3.6% 3.5% ▪ Supply chain optimisation ▪ Backward integration Elders Market Growth Opportunity ▪ Financial Services expansion Strategic Geographic Locations $59b TOTAL FARM INPUT MARKET3 $29b CURRENT ADDRESSABLE MARKET1 1. 2. 3. 5.5% CURRENT ELDERS 2 4. Current Addressable Market is an internally calculated amount based on product Internal measure – Elders estimates it has a 5.5% market share of the “Total Australian farm costs market” of $59b Source: ABARES, Agricultural Commodities – Farm Costs and Returns Australia, September 2024 Australian Points of Presence A29 ELDERS LIMITED OUTLOOK Market Outlook RURAL PRODUCTS AGENCY SERVICES REAL ESTATE FINANCIAL SERVICES ▪ Margin stability with farm input costs for fertilisers and crop protection products expected to remain stable ▪ Cattle and sheep volumes are expected to stabilise with potential pressure underpinned by improved pasture availability ▪ Margin relief for regional residential properties expected as interest rates continue to stabilise, with favourable global interest rate decisions ▪ Major bank transition to broker models servicing clients, and potential interest rate decreases, providing opportunities for our brokerage business ▪ Broadacre turnover is expected to benefit from the recent uplift in livestock prices ▪ Industry wide insurance premium growth to boost Elders earnings ▪ Average seasonal outlook expected to see improving sentiment from growers and potential increase in crop plantings ▪ Continued benefits from the backward integration strategy ▪ Livestock prices are forecast to remain strong, in line with the improved seasonal outlook ▪ Earn-per-bale to continue benefiting from increased throughput at the inhouse wool handling facilities ▪ Earnings to benefit from recent acquisitions, notably Knight Frank Tasmania ▪ Recovery in livestock segment to provide upside to financial services livestock related products FEED AND PROCESSING SERVICES ▪ High residency and ongoing strong export demand and cattle prices are expected to support margins ▪ Ongoing demand for grass-fed operations to continue to provide margin uplift in FY25 ▪ Investment in state-ofthe-art feed mill will improve on feed performance and increase efficiency from late 2024 COSTS AND CAPITAL ▪ Continued traction in cost and capital efficiency, building on the FY24 momentum ▪ Ongoing commitment to mitigate inflationary pressures through cost savings ▪ Ongoing investment in acquisition growth, as well as transformational initiatives in line with the Eight Point Plan strategy A30 Questions Following Next Presentation A31 Elders Limited Appendix A32 Elders Limited ELDERS LIMITED APPENDIX Key Performance Indicator Trends Providing earnings resilience against market volatility through the Elders diversified business model Agency Services: Cattle Volume (‘000) Agency Services: