Announcement PDF 30 May 2023 Elders Limited Investor Presentation Attached is a presentation to be given today, 30 May 2023, to the 21st Australasian AgFood Conference hosted by PAC Partners. The presentation will be given by Elders Limited’s (ASX:ELD) Managing Director and Chief Executive Officer, Mr Mark Allison. Further Information: Mark Allison, Managing Director & Chief Executive Officer, 0439 030 905 Authorised by: Peter Hastings, Company Secretary, 0419 222 489 Elders Limited ABN 34 004 336 636. Registered Office: Level 10, 80 Grenfell Street, Adelaide SA Australia 5000 PAC Partners - 21st Australasian AgFood Conference 30 May 2023 Presented by Mark Allison Managing Director and CEO 1 Agenda Business Model Sustainable Growth Eight Point Plan Sustainability Questions 2 Business Model Diversification by product, service, market segment and geography RURAL PRODUCTS AGENCY SERVICES REAL ESTATE SERVICES FINANCIAL SERVICES FEED & PROCESSING SERVICES DIGITAL AND TECHNICAL SERVICES Killara Feedlot Fee for Service (200 agronomists) RETAIL PRODUCTS WHOLESALE PRODUCTS Rural Products Rural Products Livestock Broadacre Agri Finance Fertiliser Pet Supplies Wool Residential Elders Insurance (20%) AuctionsPlus (50%) Grain Property Management LIT Delivery Warranty and Livestock Funding Products Elders Weather Agcrest (33%) Clear Grain Exchange (30%) Franchise Key metrics $2.5b retail sales $0.4b wholesale sales 9.0m head sheep $2.5b broadacre sales 232 stores 372 member stores 1.4m head cattle $1.8b residential sales 435 APVMA registrations 360k wool bales 1.0m tonnes fertiliser 10.6k properties under management $3.0b loan book $1.5b deposit book $29.9m livestock funding $120.0m StockCo book 67k Killara Feedlot cattle head AuctionsPlus 126k head cattle 1.2m head sheep $1.0b GWP $12m China sales 9.6m Elders Weather users CGX 0.2m tonnes 41% LIT penetration rate Gross margin $310.0m $73.1m $147.0m $61.6m $44.2m $16.8m Included in products $99.9m $58.7m $0.4m $9.4m $83.4m Other – ($28.8m) Working capital $401.9m Statistics and financial information based on FY22 full year 3 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 4 Australia’s most trusted agribusiness brand Elders Historical Performance Strong historical EBIT and EPS growth 3,000 1600% Price Cumulative Return % 1400% $6.56 $1,026m Market Price Market Cap 23.2% 5.5X 10Year CAGR P/E1 2,500 1200% CAGR 23%³ 2,000 1,500 800% Return % Price 1000% 4.9x 600% 1,000 EV:EBITDA² 400% INVESTMENT HIGHLIGHTS 500 200% - 2013 0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 R Diversified agri business R Attractive market opportunities and company outlook R Supply chain consolidation R SysMod benefits from FY24 R Long-term shareholder returns R Resilient balance sheet 2023 As of 26 May 2023 1. P/E – Rolling 12 months Adjusted Underlying EPS as of 31 March 2023 ($6.56 / 119.8cps) 2. EV:EBITDA – Rolling 12 months EBITDA as of 31 March 2023 excluding the impact of AASB 16. (EV:1,351 / EBITDA: $278.4) 3. 10-Year CAGR (24/05/2013 – 26/05/2023) 5 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 (Bottom: $180m; Top: $200m) 2. Cost to earn is calculated on a rolling 12 months 3. FY19 – FY21 did not include tax expense in underlying NPAT; Adjusted Underlying NPAT HY23: 76.3cps **CAGR calculated on HY performance 43 FY21 32 FY22 HY23 2H HY 66 HY23 Product Performance Mixed results across the product portfolio compared to strong market conditions in HY22 Rural Products Gross Margin by Category ($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 $1.7m non-recurring expense Cattle and Sheep prices are internal averages, not externally verifiable Principal positions are held by Elders Insurance Underwriting Agency (Elders 20% equity investment) FY19 FY20 FY21 FY22 HY23 HY19 HY20 HY21 HY22 HY23 HY19 HY20 HY21 HY22 HY23 7 Ready HY23 Gross Margin Diversification A diversified business model provides earnings resilience +2.1% 79.2 80.9 Total Gross Margin ($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 8 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) 9 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 +16.0% HY 97 134 97 70 54 39 97 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 10 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% 201 200 219 79% 79% 82% HY23 Women in leadership positions 82% Female workforce 19% 43% 1. FY21 HY22 FY22 HY23 Growth: 10.1% (0.5)% 9.5% 2022 Korn Ferry Elders Employee Effectiveness Survey FY21 HY22 FY22 HY23 11 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 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 13 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 14 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 $5-$8m (source external consultant September 2022) 15