Elders (ELD) Investor Day 2024 presentation summary

Executive overview

• Maintained position as Australia's most trusted agribusiness brand for the fifth consecutive year, with a 47 NPS and 77% employee engagement.

• Achieved a 21% reduction in Scope 1 and 2 emissions since 2021, on track for 50% reduction by 2030 and net zero by 2050.

• Opened the Melbourne wool handling centre, a $25m investment processing over 300k bales annually, supporting supply chain efficiency.

• Systems Modernisation project progressing, with benefits expected from FY25, including supply chain optimisation and digital upgrades.

• Resilient EBIT despite Q1 challenges, with a focus on cost discipline, capital efficiency, and operational resilience.

Financial results and guidance

• FY24 underlying EBIT of $128m, down 25% YoY, with gross margin up 3% to $638m and costs up 14% due to acquisitions and transformation.

• Sales revenue declined 6% to $3.13bn, while return on capital fell to 11.3% from 16% due to Q1 underperformance and project spend.

• Cash conversion remained strong at 129%, with net debt rising to $437m and leverage ratio at 2.4x, above the 1.5–2.0x target.

• Thirteen acquisitions completed in FY24, contributing $14.2m annualised EBIT; strong pipeline continues into FY25.

• Pathway to target leverage in FY25 H1 through debt collection, lower capex, and normalised Q1 earnings.

Strategic priorities and transformation

• Fourth Eight Point Plan targets 5–10% EBIT and EPS growth through cycles, minimum 15% ROC, and industry-leading sustainability.

• Ongoing focus on cost and margin improvement, network expansion, and backward integration via TitanAG and AIRR.

• Continued investment in digital transformation, with SysMod rollout in branches from November 2024 and new supply chain facilities.

• Bolt-on acquisitions and organic growth to fill strategic gaps, with Delta Agribusiness acquisition to enhance footprint and technical capability.

• Sustainability initiatives embedded in operations, including waste management, ethical sourcing, and solar upgrades.