ELDERS LIMITED — Earnings Release 2012

Nov 18, 2012

==> picture [140 x 58] intentionally omitted <==

19 November 2012

FY12 Financial Results

• Statutory loss $(60.6)m versus FY11 loss of $(395.4)m

• Underlying EBIT up 20% to $38.8m

• Underlying PBT up 30% to $18.1m

• Underlying NPAT up 47% to $13.2m

• Continuing sales revenue down 5% to $2.16bn

• Net debt down 15% to $295.3m

• Preparations for global sale process for Elders Rural Services underway (FY12 underlying EBIT up 18% to $29.5m)

• Sale of Futuris Automotive well advanced (FY12 underlying EBIT up 10% to $18.5m)

• Forestry asset divestment program continuing

Elders Limited (ASX:ELD) has released its FY12 financial results today with the announcement that includes increased underlying profit, improved contribution from its Rural Services and Automotive businesses, continued debt reduction, and a statutory loss brought by items chiefly relating to the Company’s exit from the forestry sector.

The Company announced a statutory loss of $(60.6) million for the twelve months to 30 September 2012. The loss compares to a $(395.4) million loss in the previous year and includes items excluded from the underlying profit totalling $(73.8) million after tax, where forestry-related items totalling $(75.3) million before tax more than offset tax items of $34.5 million.

Elders Limited recorded an underlying profit after tax of $13.2 million compared with $9.0 million in 2011. Underlying EBIT was $38.8 million, up 20% from the $32.4 million in 2011, and is attributed to improved contribution from both the Elders Rural Services and Futuris Automotive operations.

Continued debt reduction was also a feature in the FY12 results with debt levels reduced for the fourth consecutive year. At 30 September 2012 net debt was $295.3 million; $50.1 million lower than at the 2011 year end.

Post-balance date, the Company announced that it intends to conduct a global sales process for Elders Rural Services in order to accelerate returns to stakeholders. This sale is occurring concurrently with the sale of Futuris Automotive and the forestry asset divestment program.

Elders Limited Managing Director, Malcolm Jackman said the improved contributions from both Elders Rural Services and Futuris Automotive, amid challenging seasonal and market conditions respectively, is the most pleasing aspect of the result.

“Underlying EBIT in Elders Rural Services rose 18% from $24.9 million to $29.5 million in 2012 due to the performance of the international trading operations and a favourable mark-to-market adjustment which more than offset lower network earnings due to unseasonably dry conditions late in the year across much of western and southern Australia which impacted agency operations,” Mr Jackman said.

1

==> picture [88 x 37] intentionally omitted <==

“The lower agency income, mainly in livestock, accounted for virtually all of the movement in network earnings from the previous year and farm supplies sales increased by 2% despite lower demand for cropping inputs,” he said.

“The significantly improved performance from the international trading operations is the standout in the rural services result especially when you consider the high AUD. A 25% increase in cattle export volumes and improved operating margins in the two Australian feedlots are the major contributing factors.”

Futuris Automotive lifted its underlying EBIT by 10% from $16.8 million to $18.5 million in 2012 due to increased sales in Thailand and the consolidation of the Anhui joint venture in China which were offset by the impact of lower Australian build volumes.

“Given challenging conditions continue in the automotive sector, Futuris has performed well. Futuris’ global manufacturing model with an emphasis on China, Thailand and the United States, and its diversification into non-automotive manufacturing in Australia, is positioning that business well for further expansion,” Mr Jackman said.

“The divestment of Elders’ forestry assets also progressed during the year with the sale of plantations, port assets and surplus land generating in excess of $100 million. An unconditional contract for the sale of the Smartfibre business was also signed and is expected to release $3 million in December this year,” he said.

The emphasis for Elders Limited over coming months will be the execution of the sale of both the Elders Rural Services and Futuris Automotive businesses while continuing to maintain the improvements in the operating businesses in challenging market conditions in both sectors.

“It is our belief that both businesses can continue their turnaround programs in a less capitalconstrained structure than we have in Elders Limited today,” Mr Jackman said.

“The sale of Futuris Automotive is now well advanced and we’ve been very pleased with the extent of early interest in Elders Rural Services, which reflects the growing interest in the agricultural sector,” he said.

“It’s still very early days in both sale programs but we are committed to a disciplined sale process to maximise value.”

Further comment:
Malcolm Jackman	0439 642 876
Chief Executive Officer
Further information:
Mark Hosking	0439 833 816
Chief Financial Officer
Media queries:
Amy McDonald	0419 226 384
Senior Communications Advisor

2

==> picture [88 x 37] intentionally omitted <==

Conference call and presentation

Details for the conference call and webcast slide presentation are as follows:

Conference call

9am (EDT) Monday, 19 November 2012

Webcast slide presentation

Register, view and listen to presentation webcast

Phone: 1800 123 296 Quote conference ID: 6947 2136

International numbers are available at: - - http://www.elderslimited.com/news/full year results-announcement

This webcast will stream the audio, so if you do not wish to ask a question, you do not have to call into the conference call.

Note: the slide presentation will not be available until the morning of 19 November 2012 but you can use this link to test your browser.

3