Announcement PDF 20 May 2024 2024 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 2024. Elders’ Managing Director and Chief Executive Officer, Mark Allison, and Chief Financial Officer, Paul Rossiter, will deliver this presentation by webcast and simultaneous teleconference at 10.00 am (AEST) today. As advised in the Company’s announcement to the ASX on Tuesday 14 May 2024, you can register to view and listen to 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: Elders Limited Board of Directors Elders Limited ABN 34 004 336 636. Registered Office: Level 10, 80 Grenfell Street, Adelaide SA Australia 5000 Half Year Results Presentation for FY24 20 May 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. 2 Elders Limited ELDERS LIMITED AGENDA Agenda 01 Executive Overview 04 Questions 02 Financial Results 05 Appendix 03 Strategy and Outlook 3 Executive Overview Presented by Mark Allison (Managing Director and CEO) 4 Elders Limited ELDERS LIMITED EXECUTIVE OVERVIEW Earnings Resilience Through Seasonal Volatility Guidance reflects first quarter weakness from below average seasonal conditions, balanced with an improved outlook for cropping and livestock First Eight Point Plan EBIT¹ +37.5% EPS¹ +735.2% Second Eight Point Plan ROC¹ 25.7% EBIT¹ +22.8% EPS¹ +12.8% ROC¹ 20.9% Third Eight Point Plan EBIT¹ +17.0% EPS¹ +13.6% FY24 Guidance Fourth ROC¹ 21.6% Baseline Year (EBIT $’m) Underlying EBIT Range 232.1 $120m - $140m ___________________ 170.8 166.5 Key Drivers 140m 1. Q1 impacted by El Niño forecast which negatively impacted client sentiment, especially in cropping and livestock 2. Outlook for H2 improved with good moisture profiles in many winter crop regions and a promising recovery in livestock prices 120.6 120m 74.5 70.4 73.7 56.2 2H24 40.5 27.3 6 Acquisitions 6 Acquisitions 6 Acquisitions 14 Acquisitions 11 Acquisitions 10 Acquisitions 13 Acquisitions 9 Acquisitions 10 Acquisitions FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Points of Presence Growth² +2 +8 +4 +6 +20 +13 +10 +15 +12 FY14 Seasonal backdrop 2015 – 2017 El Niño 2017 – 2019 Drought 2019 – 2023 La Niña 2023 - 2024 El Niño 2024 >>> Average 1. Average EBIT and EPS growth and average ROC over the Eight Point Plan period 2. Growth generated from acquisitions 5 ELDERS LIMITED EXECUTIVE OVERVIEW People and Customer Highlights 1 37% lost time injury women in the workforce 9.8 total recordable injury frequency rate 47 net promoter score #1 most trusted agribusiness brand amongst farmers fourth year in a row 21% women in senior positions 77% employee engagement 13 additional points of presence 6 ELDERS LIMITED EXECUTIVE OVERVIEW Safety, Health and Well-being Commitment to a safe working environment Total Recordable Injury Frequency Rate (TRIFR)1 Lost Time Injuries (LTI) 6 18.7 15.1 -15% 12.6 3 3 3 Average 10.1 9.8 FY23 HY24 2 1 FY20 1. FY21 FY22 FY23 HY24 All fatalities, LTIs and medical treatment injuries multiplied by 1,000,000 then divided by hours worked FY20 FY21 FY22 7 ELDERS LIMITED EXECUTIVE OVERVIEW Sustainability Performance Meaningful progress towards Scope 1 and 2 emission targets OUR PROGRESS CLIMATE TARGETS1 Targets set to reduce our Scope 1 and 2 greenhouse gas emissions: ▪ Engaged centralised waste management services provider, driving waste reduction initiatives 23.9 21% Reduction vs baseline 18.8 ▪ Implementation of an ethical sourcing platform, enhancing supplier risk screening 25% Reduction vs baseline 17.9 ▪ Partnering with Big Bag Recovery to promote enhanced awareness of plastic bags recoverability through Elders collection points 64,772 60,828 59,551 ▪ Targeted solar and LED lighting site upgrades to reduce emissions Baseline FY21 FY22 FY23 Bar Chart - (tCO2e/$m revenue) tCO2e ▪ Solar array development at Killara Feedlot installed and near commissioning Targets 100% renewable electricity in all Australian sites by 20253 1. 50% reduction in Scope 1 and 2 emissions intensity (tCO2e/$m revenue) by 2030, against a baseline year, 2021 (subject to commercially viable technology being available to address feedlot cattle emissions) Net zero Scope 1 and 2 emissions by 20502 (tCO2e) 2. 3. Scope 1: direct emissions from owned or controlled sources. Scope 2: indirect emissions from the generation of purchased electricity Targets based on Elders’ financial year ending 30 September As with FY22 and FY23, target to be achieved in FY24 through on-site solar generation and purchase of LGCs 8 ELDERS LIMITED EXECUTIVE OVERVIEW First half impacted by below average seasonal conditions First half impacted by poor client sentiment following El Niño declaration and below 10-year median livestock prices $38.4m 11.4% 339% 2.6x Underlying EBIT Return on Capital Cash Conversion Leverage Ratio R12 EBIT/ R12 avg net operating assets YTD Operating cash flow / YTD U’NPAT Balance date net debt / R12 EBITDA -54% YOY from 16.9% El Niño forecast negatively impacted H1 Below target benchmark due to Q1 EBIT impact from -172% on track to exceed target for FY24 from 2.2x Unfavourable Q1 EBIT impact 9 Financial Results Presented by Paul Rossiter (CFO) 10 Elders Limited ELDERS LIMITED FINANCIAL RESULTS Financial Performance Overview Improved seasonal outlook supporting FY24 EBIT guidance of $120m - $140m ▪ Reaffirming underlying EBIT range of $120m - $140m FY24 Underlying EBIT Guidance ▪ Supported by return to average seasonal conditions ▪ Second half EBIT to achieve guidance within range established by FY21 to FY23 ▪ Ten acquisitions in the first half of FY24 with ongoing pipeline Fourth Eight Point Plan ▪ Growing our footprint and diversifying our product portfolio ▪ Transform our business through enhanced systems and processes ▪ Average seasonal outlook improving client sentiment Operational Resilience ▪ April trading¹ ahead of prior corresponding period ▪ Continued focus on cost and capital discipline ▪ Significant headroom maintained across banking covenants Financial Ratios ▪ Leverage ratio expected to return within target range (1.5x – 2.0x) by FY25 H1 ▪ ROC to improve in the second half towards target of > 15% ▪ Cash Conversion greater than 90% of underlying NPAT 1. Based on unaudited management accounts 11 ELDERS LIMITED FINANCIAL RESULTS Five-Year Financial Performance Resilient financial result despite below average seasonal conditions Sales Revenue ($m) Gross Margin ($m) +10.5% +8.8% 3,445 3,321 653 619 529 2,549 438 2,093 285 1,342 900 1,101 FY20 FY21 1,515 1,657 FY22 FY23 HY24 204 242 FY20 FY21 Costs ($m) 327 306 FY22 FY23 HY24 Underlying EBIT ($m) -7.7% +13.0% 421 232 448 363 171 167 317 247 151 168 194 FY20 FY21 FY22 121 133 223 53 FY23 HY24 FY20 83 74 FY21 FY22 FY23 38 HY24 CAGR calculated on half year performance 12 ELDERS LIMITED FINANCIAL RESULTS Five Year Shareholder Returns Compelling shareholder value proposition through the agricultural cycles Adjusted Underlying Earnings per Share (cents)¹ Underlying Earnings per Share (cents) -26.5% 96.7 134.1 97.3 96.7 69.9 36.8 87.6 66.3 69.9 31.2 FY20 42.9 FY21 21.3 58.0 FY22 32.3 9.1 31.2 FY23 HY24 FY20 Dividends per Share (cents)² 42.9 58.0 11.9 9.1 HY24 32.3 FY21 FY22 Adjusted underlying EPS FY23 FY HY Dividend Payout Ratio (%)³ 198% +18.9% 56 46 42 71% 22 9 FY20 1. 2. 3. 18 20 FY21 28 23 FY22 FY23 HY24 Adjusted for underlying tax expense recognised from 1 October 2021 Franked Percentages, FY20 (100%), FY21 (20%), FY22-23 (30%), FY24 (50%). Dividend payout ratio expected to reduce when calculated using full-year NPAT 47% 48% HY21 HY22 29% HY20 HY23 HY24 CAGR calculated on half year performance 13 ELDERS LIMITED FINANCIAL RESULTS HY24 Financial Summary Improved outlook for the second half following return to average seasonal conditions Key metrics ($m) HY24 HY23 Var Var % Sales revenue 1,341.8 1,657.3  (315.5) (19%) Gross margin 285.4 305.8  (20.4) (7%) Gross margin % 21.3% 18.5%  2.8% n/a Costs 247.0 223.0  24.0 11% Underlying EBIT 38.4 82.8  (44.4) (54%) Underlying net profit after tax 14.4 50.6  (36.2) (72%) Return on capital (%) ¹ 11.4% 16.9%  (5.5%) n/a 356.3 424.7  (68.4) (16%) Leverage ratio (times) ² 2.6 2.2  0.4 18% Operating cash flow 48.7 (86.9)  135.6 156% Cash Conversion (%) 339.3% (171.8%)  511% n/a Underlying earnings per share (cents) 9.1 32.3  (23.2) (72%) Dividend per share (cents) ³ 18.0 23.0  (5.0) (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 50% up from 30% in the prior period Balance Date Net Debt 14 ELDERS LIMITED FINANCIAL RESULTS Gross Margin Diversification Continued focus on product diversification through organic and acquisition growth Total Gross Margin ($m) -22.4% 79.2 82.2 80.9 326.4 305.8 285.4 HY22 HY23 HY24 -12.8% 64.0 62.8 55.8 +22.5% +8.0% 37.8 -3.8% 35.3 21.8 18.1 16.4 28.9 23.6 19.3 +2.3% 35.4 33.3 -11.5% -5.7% 25.1 19.2 32.7 20.0 26.5 27.1 23.3 22.7 +8.5% 9.1 AgChem Fertiliser Animal Health Retail Products Other Retail Wholesale Products 12% Agency Services¹ 20% Real Estate Services Financial Services 12% 9% -5 43% +2 -1 +3 vs. LY vs. LY vs. LY vs. LY 1. Agency split: Sheep – 34%; Cattle – 48%; Wool and Grain – 18% Pie charts represent percentage of total HY24 gross margin +1 vs. LY 8.2 8.9 Feed & Processing Services 3% +0 vs. LY 15 ELDERS LIMITED FINANCIAL RESULTS Product Performance Cropping and livestock markets negatively impacted by subdued client sentiment Change in product margin ($m) HY23 NPAT Quarterly Performance³,4 Retail Products 50.6 ▪ Sales impacted by cautious consumer sentiment Q2 Q1 ▪ Margin pressure driven by continued softening crop Retail Products (22.6) protection prices, partially offset by volume growth in fertiliser Wholesale Products Feed & Processing 2.6 Agency Services Agency Services (8.2) Real Estate Services 6.5 Financial Services ▪ Strong volume traded and improving prices unable to offset higher HY23 negative PCP price delta impact -36.2 (-72%) Financial Services 0.6 Feed & Processing Services 0.7 ▪ $1.5m gross margin uplift from change in Elders Wool handling business launch Financial Services Costs ¹ Real Estate Agency Wholesale (24.0) ▪ Improved insurance performance Interest, Tax, NCI & Other ² ▪ Growth of own balance sheet livestock lending 8.2 Retail ▪ Non-competes lifted following exit of Rural Bank HY24 1. 2. 3. 4. 14.4 partnership Cost drivers detailed on slide 22 NCI – Non controlling interests The indicative relative performance of HY24 quarters compared to HY23 (based on management accounts and unaudited) The historical 5-year average Q1 EBIT is $37m (based on management accounts and unaudited) 16 ELDERS LIMITED FINANCIAL RESULTS Industry Backdrop – Rural Products Volume growth unable to fully offset negative sales impact from lower input prices compared to prior corresponding period HY24 FY23 FY23 HY24 UREA Index ($/tonnes)¹ Glyphosate 95%¹ ($/kg) -714 (-64%) 14.0 9-Yr Mean 12.0 +/-1 Std Dev 3.2 Std Dev -9.0 (-72%) 12.6 1,200 1 Std Dev 1,000 +/-2 Std Dev 1,130 2 Std Dev 10.4 10.0 5 Std Dev 10-Yr Mean 800 8.0 600 6.0 400 4.0 393 3.6 200 2.0 0.0 0 2015 2019 2024 2014 2019 Elders Cropping Inputs 5 Year Trend² Elders Fertiliser 5 Year Trend +13.9% +9.8% 28,397 29,386 2024 31,530 32,746 384 416 451 410 22,507 268 106 22 103 90 71 8 61 HY20 HY21 HY22 HY23 HY24 Volume (Tonnes’000) 1. Source: Reproduced courtesy of Refinitive 2. Excludes the benefits of our backward integration HY20 GM ($’m) 18 16 HY23 HY24 11 HY21 HY22 Volume (Tonnes’000) GM ($’m) 17 ELDERS LIMITED FINANCIAL RESULTS Continued Volume Growth Across Key Products Continued sales volume growth unable to offset lower crop protection prices against prior period Volumes (Tonnes’ 000) 637 42 586 7 1 2 Animal Health Crop Protection ▪ Marginal volume growth impacted by ▪ Volumes and client sentiment impacted by weaker livestock prices and soft client sentiment in Q1 ▪ Rebounding EYCI¹ FY24 Q2 saw improving client sentiment HY23 Animal Health Crop Protection Seed Fertiliser El Niño announcement ▪ Gross margin impacted by declining input prices and purchase of inventory for 3rd parties to meet demand HY24 Rural Product Sales ($m) 1,345 100 (295) (19) Seed Fertiliser ▪ Strong own brand sorghum volumes, offset ▪ Strong organic volume growth, up 10%, 1,132 delayed canola and cotton plantings ▪ Volume growth offset margin pressure unable to offset lower global input prices compared to the prior period from declining prices and product mix HY23 Volumes Price Other Retail HY24 18 1. EYCI – Eastern Young Cattle Indicator ELDERS LIMITED FINANCIAL RESULTS Industry Backdrop – Livestock Strong rebound in livestock markets improving second half outlook FY23 HY24 ▪ FY24 Q2 experienced a positive revision (+61%) since September 2023, with the index recently trading EYCI ($/Head) in line with the 10-year mean 2,500 ▪ The price revision was driven by: -130 (-11%) o Improved customer sentiment following rainfall events in Eastern and Southern Australia supporting pasture growth 2,000 1,500 1,209 1,099 1,000 500 o Stable cattle volumes o Rainfall experienced in key regions supporting pasture growth ▪ Animal Health sales were impacted by declining cattle prices, most notably in Q1 0 2014 2019 2024 Trade Lamb ($/Head) ▪ Significant Trade Lamb price revision saw a 42% improvement since September 2023, and is currently trading marginally below the 10-year mean -32 (-17%) 240 ▪ Price volatility was impacted by: 220 o High stock turn-off leading into the forecasted El Niño seasonal conditions 200 187 180 160 o Improvement in farmer sentiment since January 2024 156 o Rainfall in key regions 140 ▪ Prices remain below HY23 but volumes have remained strong supporting the HY24 performance 120 100 2014 10-Yr Mean 1. 2. 2019 1 Std Dev 2 Std Dev 2024 El Niño “Watch” issued El Niño “Event” issued EYCI – Eastern States 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 19 ELDERS LIMITED FINANCIAL RESULTS Real Estate in Focus Growing our Real Estate earnings, consistent with the geographic and product diversification strategy Elders Market Growth Opportunity Real Estate Gross Margin ($m) $167b Property Management ¹ Broadacre +21.3% 35.4 Residential Other 33.3 30.6 28.3 8.4 25.5 25.2 9.8 7.6 20.1 18.1 28.9 CURRENT ELDERS (4th LARGEST)3 10.5 10.9 Commentary 6.8 11.7 10.3 9.5 5.6 CURRENT ADDRESSABLE MARKET4 13.8 9.5 9.8 9.1 8.0 3.34% 11.8 10.4 6.5 6.3 $44b 13.3 14.4 6.1 TOTAL REAL ESTATE MARKET4 6.6 (+22.8%) 10.8 11.0 10.1 12.0 6.2 CAGR 16.9% 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1H24 9.1 9.4 10.9 10.6 12.0 12.7 13.1 13.6 17.0 Knight Frank Tasmania acquired 1 May 2024 ▪ 1,500 properties rent roll ▪ 40 Sales agents and 4 valuation specialists ▪ Expanding our geographic footprint (5 offices) ▪ Growing our product expertise to include valuations and asset management services PUM² (‘000) Existing portfolio Footprint growth and bolt-ons +2 +5 +7 +2 +8 Dalby, Qld Narrogin, WA Rockingham, WA Central Tablelands, NSW Southwest Victoria, Vic Hamilton, Vic Parkes, NSW North Ipswich, QLD Dubbo, NSW Townsville, QLD Riverland, SA Fleurieu Peninsula, SA Gladstone, QLD ▪ Acquisitive growth improving earnings resilience ▪ Significant opportunity to diversify income and geographic footprint ▪ Complimentary to Broadacre and Residential sales ▪ HY24 includes 5-months of Charles Stewart earnings 1. CAGR is calculated based on Half-Year Property Management Earn 3. 4th largest relative to the current addressable market, 7th largest relative to total real estate market (Top competitor has only 13.8% market share of total market) 2. Properties Under Management (PUM) 4. Source Core Logic 20 ELDERS LIMITED FINANCIAL RESULTS Geographical Diversification All states impacted by below average seasonal conditions in H1 18% 20% 30% WESTERN AU ST R AL I A SOUTH AU ST R AL I A VICT O RIA AND RIVERINA $11.7m $13.2m $19.9m -53% YOY -29% YOY -33% YOY 25% 6% NEW SOUTH W AL ES Q U EEN SL AN D AN D NORTHERN TERRITORY $16.1m $3.9m -33% YOY -63% YOY Excludes Wholesale Products and Corporate Overheads Values refer to Underlying EBIT ($m) 1% T ASM ANI A $0.7m -80% YOY 21 ELDERS LIMITED FINANCIAL RESULTS Cost Drivers Investment in future growth driving cost uplift HY23 Costs Costs ($m) Underlying Cost Base ($m) 223.0 +13.0% HY24 vs HY23 ³ People: ▪ People 448 421 12.8 183 additional FTE, incl acquisitions (2 graduates, 131 network and business growth) 363 ▪ 317 Wage growth in line with CPI 247 Motor Vehicles Property and Lease Costs 0.0 Motor Vehicles: 151 4.4 FY20 Depreciation and Amortisation1 FY21 FY22 2H 0.6 223 194 168 FY23 HY24 HY +11% IT Costs Acquisitions ▪ 1.9 Costs growth up 10.9% on HY23, driven by recent acquisitions, partially offset by cost initiatives 7.3 ▪ Discretionary spend has been controlled through behavioural changes and focus on efficiency Transformational Projects 6.0 Operating and 2 Other Expenses (9.0) ▪ initiatives to partially offset inflation ▪ HY24 Costs 1. 2. 3. Ongoing commitment to controlled cost base in FY24, with cost 247.0 Cost base elevated following the change in Elders Wool cost ▪ 50 additional motor vehicles (incl acquisitions) ▪ Increased lease costs impacted by higher interest rates ▪ Offset by lower maintenance costs and beneficial rebates Acquisitions: ▪ 10 acquisitions in HY24 ▪ 155 additional FTE ▪ 39 additional motor vehicles Transformational Projects: ▪ Systems Modernisation +$1.8m, including -2 FTE ▪ Elders Wool +$4.0m, including +42 FTE Operating and Other Expenses ▪ Continued focus on discretionary spend methodology from inclusion in gross margin to operational costs Depreciation on property, plant and equipment only. Depreciation on ROU is included within Property and Lease Costs Includes Consulting, Advertising, Insurance, Legal Costs etc. CAGR calculated on the HY results 22 ELDERS LIMITED FINANCIAL RESULTS Cost Growth Excluding New Business: Year to Date FY24 cost target on track through disciplined cost management Cost Increase excl. Growth and Transformational Initiatives ($m) Growth Adjusted Cost Movement² ($m) Commentary Base Target: ▪ CPI increase to be partially funded through $10m pro-rata cost saving initiatives 247.0 FY24 YTD: 4.2 ▪ FY24 YTD is inclusive of acquisitive SG&A, CPI increase and recurring transformational growth expenditure 4.8 ▪ 135 Additional FTE relating to FY24 acquisitions Acquisitions and Transformational Projects: 6.0 +1.8% 5.0 227.0 ▪ FY23: 9 Acquisitions, the largest being Emms Mooney and Rockingham ▪ FY24 H1: 10 Acquisitions, the largest being Eureka! and Charles Stewart ▪ Knight Frank Tasmania completed after balance date ▪ Transformational projects including toll formulation facilities in WA and additional depreciation and amortisation costs pertaining to these projects 223.0 3.9 Elders Wool ▪ Previously the operational costs were included in gross margin as part of the AWH fees. The in-house model has resulted in the comparative fees being recorded under costs with the benefit in gross margin. HY23 Base 1. 2. Base Growth HY24 excl New Business FY23 Acquisitions¹ FY24 Acquisitions Elders Wool Transformational Projects FY24 YTD Act FY23 acquisitions with less than 12 months earnings Includes the rolling twelve-month costs from acquisitions and transformational projects with less than 12 months of earnings and thus is not directly comparable to slide 22 which is a half-on-half comparison 23 ELDERS LIMITED FINANCIAL RESULTS Capital Allocation Return on capital forecast to improve in second half following progress on working capital efficiency Return on Capital (%) Working Capital at Balance Date ($m) Average -39 -180 (-22.7%) Balance Date 735 795 -5.5 649 16.9% Trade and Other Receivables¹ ($m) 693 892 853 HY23 HY24 714 615 586 16.0% HY22 Inventory² ($m) HY22 11.4% ▪ HY23 -125 HY24 HY24 average working capital elevated due to improved 679 554 378 supply chains in 2H23, with levels declining throughout HY24 ▪ Balance date working capital reflective of efficiency HY22 HY23 Trade and Other Payables³ ($m) initiatives, declining input prices and normalising supply HY23 FY23 ▪ Balance Date Including Livestock at Balance Date 668 776 792 HY22 HY23 HY24 Average working capital expected to decline by FY24 due to focused working capital management 1. 2. +16 chains HY24 HY24 24 ELDERS LIMITED FINANCIAL RESULTS Cash Flow Focus on capital efficiency evident in cash conversion Cash Conversion (%)2 Operating Cash Flow ($m) +511 (10.0) 12.2 38.4 75.0 (44.3) 146.1 (114.4) -172% HY23 1. 2. 3. 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 HY24 AASB 16 adjusted Cash Conversion (%) (13.7) EBIT 339% 48.7 34.4 Inc/(dec) in Other trade and movements1 other payables Operating cash flow 4 +267 141% Key metrics ($m) HY24 HY23 Var Underlying EBITDA adjusted for non cash items 75.0 130.1 (42%) -127% HY23 Movements in assets and liabilities (26.3) (217.0) 88% Working Capital to Sales (%)3 Cash from operating activities 48.7 (86.9) 156% Investing cash flows (88.4) (99.7) 11% Financing cash flows 56.3 182.8 (69%) Net cash flow 16.6 (3.8) 537% 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 $28.5m Operating cash flow includes the Rural Bank termination payment HY24 +3 19 22 HY23 HY24 25 ELDERS LIMITED FINANCIAL RESULTS Net Debt and Financial Ratios Accounting leverage expected to return to within target range of 1.5 – 2.0x by FY25 H1. Elders maintains significant headroom to all banking covenants. Net debt, balance date ($m) Leverage ratio Interest cover Gearing ratio Balance date net debt / EBITDA EBITDA / net interest Balance date net debt / closing equity 586.1 581.7 Borrowings Lease Liabilities Cash 394.3 438.7 229.8 157.0 14.0 Excluding AASB 16 +4.4 38.0 HY24 HY23 + 0.4 2.6 50 15.1 43 2.2 5.5 HY23 Net debt, average ($m) -6.8 -9.6 HY24 HY23 HY24 HY23 HY24 Leverage ratio Interest cover Net worth <2.5 times >3.5 times >$250 million 563.4 395.5 406.3 Borrowings Lease Liabilities Cash 301.3 126.9 32.7 HY23 176.8 19.7 Banking covenants1,2 +42.4% 2.5 2. +581 6.2 831 3.5 0.9 250 HY24 Covenant 1. +2.7 -1.6 HY24 Covenant HY24 Covenant HY24 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 were $152.7 million out of total available facilities of $554 million and significant headroom in our banking covenants 26 Strategy and Market Outlook Presented by Mark Allison (Managing Director and CEO) 27 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 AGENCY SERVICES FEED AND PROCESSING TECHNICAL SERVICES FINANCIAL SERVICES REAL ESTATE SERVICES 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 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 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 INNOVATION all parts of our integrated value chain technology solutions to enhance customer experience, drive efficiencies and support growth TEAM WORK INTEGRITY ACCOUNTABILITY 2828 ELDERS LIMITED STRATEGY Our Strategic Priorities – Transform Gross margin growth and efficiency through product expansion ELDERS WOOL¹ Enhanced client experience through state-of-the-art wool handling facility Business Model Enhanced Efficiency Financial Creation ▪ Modern, efficient, and scalable ▪ Economies of scale through volume and centralised business model ▪ AGVs² for enhanced efficiency and a 24hr operational model ▪ Commercial benefit gained from solar power, LED lighting and electronic AGVs² ▪ Optimises logistics, sales and storage through automated warehousing ▪ Centralised model insulated from cost pressures benefiting growers ▪ Provides opportunity to generate revenue from additional avenues ▪ Increased earn per bale and gross margin ▪ EBIT accretive by approximately $4-$5 million per annum Over 52,000 bales received since November 2023 1. Projects are expected to deliver a ROC greater than 15% once operating at scale 2. AGV – Automated guided vehicle 29 ELDERS LIMITED STRATEGY Our Strategic Priorities – Transform Gross margin growth and efficiency through platform modernisation SYSTEMS MODERNISATION¹ Modernising our platforms to deliver more efficient business processes Spend ($’m) Wave 1 (Procurement) Total Spend CAPEX 12.4 OPEX - non underlying Completed 6.3 Total Wave 2 (Retail) 18.7 FY23 FY24 Total Budget CAPEX 2.3 9.5 24 – 27 OPEX - non underlying - 0.9 16 – 18 Total 2.3 10.4 40 - 45 FY23 FY24 Total Budget Wave 3 CAPEX - - 7–9 (Livestock) OPEX - non underlying - - 3–4 Total - - 10 – 13 2023 2024 2025 TIMELINE 2022 Wave 1 Wave 3 spend predominately expected in FY25 Wave 2 Wave 3 30 1. Does not include underlying OPEX which predominantly rel