ELDERS LIMITED — Interim / Quarterly Report 2011

May 22, 2011

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23 May 2011

2011 Half Year Results Discussion and Analysis Attached is Elders Limited’s Half Year Results Discussion and Analysis for the six months ended 31 March 2011.

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Peter Hastings Company Secretary

1

2011 First Half Results

Discussion and Analysis

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23 May 2011

23 May 2011 Discussion and Analysis

2011 First Half Financial Results

Abbreviations & Definitions

This document provides discussion and analysis of Elders Limited’s financial results for the 6 months to 31 March 2011 as announced through the Appendix 4D Half Year Report lodged with the ASX today.

Calculation of underlying income

This document and accompanying announcements such as the 2011 First Half investor Presentation and 2011 First Half Financial Results Press release refer to and discuss underlying profit to enable analysis of like-for-like performance between periods exclusive of the impact of non-recurring items or discontinued operations.

Underlying profit measures reported by the Company have been calculated in accordance with the FINSIA/AICD principles for the reporting of underlying profit. A reconciliation between statutory and underlying profit is provided on page 3 of this document.

Previous period comparatives

Previous period comparatives presented in the Half Year Report and this document recognise the impact of changes in the composition of the business to recognise discontinuation of assets and operations divested. Details of discontinued operations are provided in Note 12 of the Half Year Report.

	2010 and FY10:	12 months ended 30 September 2010
	2011 and FY11:	12 months ended 30 September 2011
	H1 11 and H1 10:	First half year: ie six months to 31 March of 2011 or 2010
	pcp:	previous corresponding period, 6 months ended
		31 March 2010
	EBIT:	earnings before interest and tax
	Statutory /Reported	Profit or loss as defined by International Financial
	profit/loss	Reporting Standards (IFRS)
	Underlying profit/EBIT:	Profit/EBIT before recognition of non-recurring items
		(which includes discontinued operations)
	Contribution:	earnings before support centre and other costs,
		interest and tax; ie gross margin less costs
	m:	million
	n/m:	not meaningful
	Elders:	Elders Limited and or its subsidiaries
	Company:	Elders Limited and or its subsidiaries
	AWH:	Australian Wool Handlers
	ETG:	Elders Toepfer Grain Joint Venture

Further Comment:

Further Comment:
Malcolm Jackman Chief Executive Officer	0439 642 876
Further information:
Mark Hosking Chief Financial Officer	0439 833 816
Don Murchland GM Investor & Corporate Relations	0439 300 932

2

Reconciliation of Statutory and Underlying Profit

The statutory loss of $(14.6)m to shareholders for the six months to 31 March 2011 and the prior corresponding period (a loss of $165.9m) both included a number of items considered non-recurring as they are either the result of ‘one-off’ events and unrelated to operating performance or relate to discontinued operations.

Calculation of underlying profit by excluding these items is considered to enable more meaningful comparison of results between periods by providing like-for-like figures that are not impacted by anomalous or one-off events.

Underlying profit for the six months to 31 March is calculated as follows:

Statutory and Underlying profit
$m 6 months to 31 March:	2011	2010
Reported profit/(loss) after tax	(14.6)	(165.9)
Non-recurring items after tax	(15.6)	(163.5)
made up of:
Rural Services	9.0	18.1
Forestry	(9.2)	(173.8)
Automotive	-	-
Corporate	(17.4)	(14.3)
Tax impact (Net)	2.0	6.5
Underlying NPAT to shareholders	1.0	(2.4)

The non-recurring items for the 6 months to 31 March 2011 comprise:

• Rural Services related items of $9.0m before tax:

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• Rural Bank-related items totalling $22.8m comprising net gain on sale ($16.4m) and dividend($6.4m), net of other costs

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• impairment of $(10.6)m to the carrying value of Elders’ shareholding in HiFert to align with the values established in the sale option agreement announced during the period

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• project costs of $(4.0)m, principally being the implementation of the SalesPlus[+] system and training across the network, as well as the Cost to Serve and Real Estate restructuring projects

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results of discontinued operations of $0.8m.

• Forestry related items totalling $(9.2)m before tax:

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• cyclone damage to existing plantations in Northern Queensland necessitated impairments to estimates of accrued income ($12.2m) and investment properties ($2.8m – as future value of rental income is considered to be diminished) which was offset in part by anticipated insurance proceeds of $4.3m.

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• a gain of $1.5m arising from the sale of ex-plantation land in Central Queensland.

• Corporate items of $(17.4)m before tax:

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• costs of $(12.1)m incurred in completing debt restructuring during the period. This includes refinancing costs of $(4.2)m and a further $(7.9)m incurred through fair value adjustments and accelerated amortisation of the debt restructure provision necessitated by the paydown in debt levels.

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• non-recurring interest ($2.8m) attributable to debt that was compulsorily cancelled following the completion of the sale of the Rural Bank shareholding (a corresponding adjustment of $(6.7)m has been made to interest in the pcp).

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impairment of non-core investments of $(1.5)m

legal and other costs of $(1.0)m principally being costs relating to tax cases

• Prima facie tax benefit on Non-Recurring items of $17.6m is $5.3m @ 30%. This benefit has been diluted by the non-tax deductible nature of impairments (largely HiFert). The tax arising from the sale of Rural Bank of $6.6m is largely offset by movements in Deferred Tax Assets.

3

Reported and Underlying Profit measures

Profit: Reported and Underlying
$m 6 months to 31 March:	2011	2010	Change
Underlying EBIT	20.0	10.3	+ 94%
Net underlying borrowing costs	(16.1)	(8.2)	+96%
Underlying profit/(loss) before tax	3.9	2.1	+86%
Tax on underlying profit	(0.0)	(1.3)	n/m
Non-controlling interests	(2.9)	(3.2)	n/m
Underlying NPAT to shareholders	1.0	(2.4)	+142%
Non-recurring items after tax	(15.6)	(163.5)	n/m
Reported profit/(loss) after tax	(14.6)	(165.9)	+ 91%
Earnings per share (cents)
– underlying basic	0.2	(0.6)
– underlying diluted	0.1	(0.6)
– reported basic	(3.2)	(41.0)
– reported diluted	(3.2)	(41.0)

Underlying EBIT up $9.7m as a result of increased contributions from Rural Services and benefits of cost savings from Corporate which more than offset reduced EBIT from Forestry and Automotive.

Net underlying borrowing costs increased by $7.9m. The movement is analysed on page 6 of this document.

Underlying profit before tax up $1.8m. Movement analysis provided on page 5.

Tax expense of nil reflects accumulated tax loss position.

Non-controlling interests of $(2.9)m principally comprise rural service joint ventures and partnerships.

Non-recurring items of net $(15.6)m after tax relate to Rural Services, Forestry and Corporate items and are detailed on page 3.

4

Analysis of movement in profit before tax

Profit Movement Analysis

$m 6 months to 31 March:
H1 10 Reported profit before tax		(168.0)
H1 10 Non-recurring items before tax		(170.1)
H1 10 Underlying profit before tax		2.1
Change in H1 11 from:
Rural Services EBIT	12.5
Forestry EBIT	(3.4)
Automotive EBIT	(3.9)
Corporate & other EBIT	4.5
Change in EBIT:		9.7
Change in net underlying borrowing costs		(7.9)
H1 11 Underlying profit before tax		3.9

Underlying profit before tax rose by $1.8m in comparison with the PCP due to:

• Underlying EBIT up by $9.7m:

• Rural Services EBIT up by $12.5m, due to increased sales, reduced costs and improved earnings generation by network operations

• Forestry EBIT down $3.4m due to the flow on of lower MIS sales in 2010 and lower third party wood sales

• Automotive EBIT down $3.9m due to lower motor vehicle build in Australia

• Corporate and other EBIT up $4.5m due to savings in corporate costs and increased equity income.

• Net underlying borrowing costs up $7.9m as detailed on page 6.

5

Key Profit and Loss Items

Key profit and loss outcomes for the year include:

• Continuing sales revenue of $1,086.4m, up $61.4m (6%):

Key Profit and Loss Items
$m 6 months to 31 March:	2011	2010	Change
Sales revenue
- Continuing operations	1,086.4	1,025.0	+ 6%
- Discontinuing operations	21.4	55.0
Total sales revenue	1,107.8	1,080.0	+ 3%
Depreciation & amortisation
- Continuing	14.5	13.8	+ 5%
- Discontinuing	-	0.1
Income from associates
- Continuing	0.4	6.5	-94%
- Discontinuing	-	10.9
Reported net borrowing costs	(27.9)	(15.9)	+ 75%
Non-recurring net borrowing costs	(11.8)	(7.7)	n/m
Underlying Net borrowing costs:
- Interest income	4.5	3.7
- Interest on Covenant debt	(8.5)	(8.6)
- Other borrowing costs	(8.6)	(3.3)
- Amortisation of debt restructure
provision/FX and fair value adjustments	(3.5)	-
Total Underlying net borrowing costs:	(16.1)	(8.2)	+ 96%

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• Rural Services up $66.1m

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• Forestry down $13.3m

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Automotive up $8.6m.

• Discontinuing sales revenue of $21.4m for the period relates to discontinued wool tops trading arising from the closure of BWK.

• Depreciation and amortisation from continuing operations was up $0.7m (5%) due to the additional depreciation charges brought by Automotive and Forestry joint ventures that have been consolidated since the pcp.

• Income from continuing joint ventures and associates was down $6.1m to $0.4m:

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• Elders Toepfer Grain (ETG) joint venture (Elders interest 50%) down $7.3m to a loss of $(6.6)m. ETG results for the period were adversely affected by the expansion of grade spreads brought by historically low production of milling grade vs feed grade grain caused by the extended unseasonal rainfall and consequent unprecedented crop quality downgrades during the period

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• Elders Insurance distribution joint venture up $0.3m

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• AWH down $0.2m as a sell down of stocks due to high wool prices resulted in lower wool volumes in storage

• Discontinuing income from associates in the pcp of $10.9m is attributable to the Company’s divested shareholding in Rural Bank.

• Reported net borrowing costs of $27.9m includes underlying ($16.1m) and nonrecurring borrowing costs ($11.8m).

• Non-recurring borrowing costs of $(11.8)m comprising $(9.0)m relates to the partial write-off of debt restructuring provision and fair value adjustments attributable to the debt paid down in the December 2010 refinancing; and interest of $2.8m ($6.7m in pcp) attributable to debt that was compulsorily cancelled following the completion of the sale of the Rural Bank shareholding.

• Underlying net borrowing costs of $(16.1)m were up $7.9m. Interest on debt subject to covenant was essentially unchanged. Other borrowing costs, which includes debtor financing interest, interest on other debt and facility fees rose by $5.3m. Unfavourable movement in fair value and foreign exchange adjustments and amortisation of the debt restructure provision resulted in a charge of $(3.5)m (- in pcp).

6

Cash Flow

$m 6 months to 31 March:	2011	2010
Net operating cash flows	(49.6)	(95.6)
Net investing cash flows	136.6	86.1
Net financing cash flows	(128.7)	(274.8)
Cash movement	(41.7)	(284.3)
Segment analysis (Note 9 of Appendix 4D) of Operating Cash Flows
Rural Services
Op Cash flows before movement in working capital	22.2	(3.9)
Working Capital	(33.2)	13.7
Forestry
Op Cash flows before movement in working capital	(15.2)	8.3
Working Capital	2.9	(11.1)
Automotive
Cash flows before movement in working capital	12.8	17.1
Working Capital	(13.4)	5.6
Investment & other (Corporate)
Op Cash flows before movement in working capital	(21.3)	(16.5)
Working Capital	(4.4)	(108.8)
Total Company
Op Cash flows before movement in working capital	(1.5)	5.0
Working Capital	(48.1)	(100.6)
Total operating cash flows	(49.6)	(95.6)

Cash flow from operating activities

Elders’ cash flow typically demonstrates an intra-year pattern, with half year results being highly influenced by seasonal events. The first half year typically features build up in working capital in preparation for the peak third quarter sales period, which in turn usually generates strong cash inflows in the closing six months of the year. This pattern is evident in the 2011 first half.

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• Rural Services’ cash flow from operating activities improved prior to movements in working capital (up from an outflow of $3.9m to an inflow of $22.2m). Increased sales activity and receivables contributed to a build up in working capital during the period (up $33.2m).

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• Forestry recorded a cash outflow from operations of $12.3m, comprising a $15.2m outflow prior to movements in working capital, partially offset by a $2.9m reduction in working capital.

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• Automotive operations also generated positive operating cash flow prior to movements in working capital. However working capital build-up necessitated by reduced production volume and the commencement of new contracts resulted in a minor outflow of $0.6m.

The improvement in total first half operating cash flow from an outflow of $95.6m to an outflow of $49.6m reflects the impact of recognition of previous off-balance sheet debtor financing of $89.2m on the pcp.

Principal items in the Investing cash flow of $136.6m included proceeds from the sale of the Company’s shareholding in Rural Bank of $163.9m and cash payment of $29.3m for controlled entities being the put option for the Plexicor joint venture and acquisition of the Vet Supplies business.

7

Balance Sheet and Finance

Significant movements during the 6 months to 31 March include:

Balance Sheet: key items
$m as at end:	March 11	Sept 10	March 10
Shareholders’ equity	979.5	1,006.1	1,062.2
Cash and cash equivalents	38.3	80.0	83.6
Inventories: current	250.8	175.2	234.5
Receivables: current	504.7	471.2	476.6
Receivables: non-current	202.7	199.7	216.5
Property, plant & equipment	123.7	129.7	104.3
Investments in associates & JV’s	94.7	240.9	261.6
Investment properties	261.8	265.0	264.3
Intangibles	260.3	257.7	165.3
Provisions	84.5	96.6	108.4
Derivative financial instruments liability	14.8	21.3	19.1
Debt restructuring provision	8.4	21.7	26.4
Borrowings: current	305.3	279.5	118.5
Borrowings: non-current	81.5	218.1	300.0
Gross borrowings	386.8	497.6	418.5
Net debt*	361.9	435.2	347.6
Gearing (%)	37%	43%	33%
NTA per share ($)	1.42	1.50	1.82

• Cash was reduced from $80.0m to $38.3m reflecting lower cash retention requirements following refinancing of corporate debt facilities in December 2010.

• Current inventories rose by $75.6m, principally due to the build-up in farm supplies inventory in preparation for the peak selling season in the third quarter combined with significantly higher prices for key lines such as AgChem and Fertiliser. Increased prices also resulted in a significantly higher wool inventory value. Futuris Automotive inventory rose by $5.4m.

• Current receivables rose by $33.5m, mainly due to the increase in Rural Services sales activity during the period.

• Other non-current receivables of $202.7m includes accrued income from forestry operations of $164.2m (up $7.3m).

• Investments recognised under the equity method reduced by $(146.2)m principally due to the sale of the Rural Bank shareholding. Increments recognising income from AWH, Elders Insurance and Elders Financial Planning were offset by reduction to the carrying value of the Elders Toepfer Grain joint venture.

• Investment properties declined from $265.0m to $261.8m with increment of $4.0m through fair value adjustment being more than offset by divestment and impairment of forestry land.

• Intangibles of $260.3m principally comprise goodwill and intangible value attributed to the Elders brand and rural services network, Plexicor and automotive product development costs.

• Derivative Financial Instruments Liability is largely attributable to interest rate and currency hedging on Elders USPP funding. Movement between the periods reflects AUD:USD exchange rate appreciation and reduced USPP noteholding since the refinancing completed during the year.

• Net tangible assets declined from $1.50 to $1.42. The methodology employed for calculation of NTA figures for the period and prior period comparatives has been changed to exclude deferred tax liabilities, and thereby provide consistency with the treatment of intangible tax assets in NTA calculations.

• Comprises gross borrowings, debt related financial derivatives of $(13.4)m as at 31 March 2011 less cash.

8

Net Debt

Features of net debt movements over the six months to 31 March:

• Gearing down to 37% from 43%.

• Gross borrowings were reduced by $110.8m (22%) to $386.8m due to the paydown in non-current borrowings made under the refinancing completed in December 2010 as part of Elders’ strategy of reducing debt levels and greater reliance on seasonal facilities over term debt.

• Gross debt includes bank debt subject to covenants of $190.1m (down from $313.7m) and debt of $196.7m which is specifically excluded from bank covenant calculations:

• trade debtor financing of $111.2m.

• debt of $51.2m associated with the Plexicor automotive business and

• other borrowings of $34.3m being ancillary facilities and borrowings which are principally associated with offshore operations.

Elders’ bank facilities, principal financial covenants and indebtedness are detailed in the accompanying appendices.

In order to address upcoming maturities and consistent with normal business practice, the Company is actively and constructively engaged in discussions with financiers to renew and extend facilities.

9

Review of Operations Rural Services

Rural Services Results
$m 6 months to 31 March:	2011	2010	Change
Sales – continuing operations	910.8	844.7			+8%
Sales - total	932.3	899.7		+ 4%
Depreciation & amortisation	4.2	5.3		-21%
Gross Margin:	160.7	150.2		+ 7%
Network: Australia	136.4	124.6			+9%
New Zealand	10.5	10.6			- 1%
Trading	13.8	15.0			- 8%
Costs:	(146.4)	(154.5)			- 5%
Network: Australia	(105.1)	(109.0)			- 4%
New Zealand	(9.6)	(11.5)		-	17%
Trading	(10.9)	(10.5)			+5%
Support centres & other	(20.8)	(23.5)		-	11%
Network Related Equity Earnings	(0.2)	5.9	-	103%
Underlying EBIT	14.1	1.6
Non-recurring items	9.0	17.9
Reported EBIT	23.1	19.5
Operating Cash flow	(11.0)	9.8

Sales revenue from continuing operations was up $66.1m (8%):

• Australian network sales revenue up $52.6m (10%):

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• farm supplies up $48.6m

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• livestock agency up $9.0m

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• wool agency down $0.8m

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• real estate down $4.9m

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• banking distribution up $0.1m

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• other up $0.6m

• New Zealand up $4.6m (9%)

• Trading up $8.9m (3%)

Underlying EBIT of $14.1m was up $12.5m:

• Australian network contribution up $15.7m (101%)

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• farm supplies gross margin up $5.7m

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• livestock gross margin up $6.2m

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• wool gross margin up $1.6m

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• real estate gross margin down $1.9m

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• bank distribution gross margin up $0.1m

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• grain accumulation and other gross margin up $0.1m network costs down $3.9m.

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• New Zealand contribution up $1.8m (200%)

• Trading contribution down $1.6m (36%)

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• feedlot gross margin down $1.3m

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• live export gross margin up $1.2m

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• wool trading gross margin unchanged

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• other trading down $1.1m

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  - costs up $0.4m

• Network Related Equity Earnings down $6.1m (103%)

• Support centre costs down $2.7m (11%)

• 1 Contribution=earnings before support centre and other costs, interest and tax; ie gross margin less costs

10

Australian Network

Farm Supplies
$m 6 months to 31 March:	2011	2010	Change
Sales Revenue	443.2	394.6	+10%
Gross Margin	50.6	45.0	+12%

Favourable seasonal conditions in most regions helped Elders increase its income from sale of farm supplies despite disruption brought by extreme weather events in Queensland and poor seasonal conditions in Western Australia.

Strong growth in Ag Chem sales (up 32%) was the principal factor in the increased revenue and gross margin generated by Farm Supplies.

Ag Chem sales benefited from higher average prices and, in southern Australia, increased demand. Demand for Ag Chem in northern Australia was lower than in the previous corresponding period due to the disruption brought by flooding, while Western Australian demand was affected by dry conditions in grain cropping regions.

Livestock Agency
$m 6 months to 31 March:	2011	2010	Change
Sales Revenue	62.5	53.5	+17%
Gross Margin	46.7	40.5	+15%

Livestock agency sales and gross margin rose on strong price increases brought by higher demand and reduced stock availability as growers restocked in the wake of good rainfall and feed availability in most pastoral regions.

Wool Agency
$m 6 months to 31 March:	2011	2010	Change
Sales Revenue	28.8	29.7	-3%
Gross Margin	10.0	8.5	+18%

Wool agency margin generation rose on higher prices during the period. Elders’ average wool price of $1,190/bale was 23% above the pcp average of $966/bale.

Volume of wool sold was down by 4% reflecting the smaller wool clip yielded by the lower production of the smaller national flock.

Real Estate
$m 6 months to 31 March:	2011	2010	Change
Sales Revenue	25.5	30.3	- 16%
Gross Margin	13.9	15.7	- 11%

Real Estate agency generated lower sales and gross margin as a result of reduced activity and lower confidence levels in property markets.

Residential property experienced the more significant reduction, with turnover for the period of $312.5m being 28% lower than in the pcp. Broadacre sales turnover of $428.8m was 4% lower.

Volumes traded were adversely affected by the disruption to transportation linkages caused by flooding and cyclone damage in eastern Australia. This exacerbated the already tight supply from herds that are only commencing recovery from several years of poor seasonal conditions.

11

Financial Services
$m 6 months to 31 March:	2011	2010	Change
Gross Margin	12.8	12.7	+1%

Financial services include income generated in the distribution of banking products and cost recovery from the Elders Insurance joint venture for the network role in distribution.

Trading

Trading operations include Elders’ livestock and wool trading and feedlot operations.

Trading Key Results
$m 6 months to 31 March:	2011	2010	Change
Sales Revenue	280.0	271.0	+ 3%
Gross Margin	13.8	15.0	- 8%
Contribution	2.9	4.5	- 36%

New Zealand Network

Revenue from trading operations was $8.9m or 3% higher:

New Zealand Key Results
$m 6 months to 31 March:	2011	2010	Change
Sales Revenue	55.6	51.0	+ 9%
Gross Margin	10.5	10.6	- 1%
Contribution	0.9	(0.9)	+ 200%

New Zealand network operations achieved a turnaround to positive contribution as a result of increased earnings from wool agency and realisation of cost and improvement measures implemented in prior periods.

Sales revenue generated by wool and livestock agency increased over the pcp. The major share of the revenue growth is attributable to higher prices for wool and livestock.

• feedlot trading revenue rose by $7.9m principally due to the Killara feedlot where Elders moved to 100% ownership and the impact of higher cattle prices on turnover.

• live export revenue fell by $42.9m principally due to the ongoing impact of permit restrictions for the Indonesian market

• wool trading revenue rose by $43.3m. Strong demand for wool brought rising prices and increased volumes traded

• China and other trading revenue rose by $0.6m.

Margin and contribution generated by Feedlot Trading and Live Export were adversely affected by external events. In Feedlot Trading, returns were reduced by the lower feed conversion rates brought by the unseasonal cool and wet weather during the period. Live Export contribution was adversely affected by demurrage and other costs brought by the disruption to previously scheduled trading and charter from restrictions to the Indonesian market.

The higher sales revenue from agency operations offset lower farm supply sales. Costs for the period were reduced 17% enabling contribution to be lifted from the pcp loss of $(0.9)m to $0.9m.

12

Network Related Equity Earnings

Equity earnings are recognised in respect of Elders’ network related joint ventures, which include its financial services joint ventures, the Australian Wool Handlers (AWH) logistics operation and the Elders Toepfer Grain joint venture.

Contributions
$m 6 months to 31 March:	2011	2010	Change
Elders Insurance	3.1	2.8	+11%
Australian Wool Handlers	2.2	2.4	- 8%
Elders Toepfer Grain	(6.6)	0.7	n/m
Other	1.1	-	n/m
Total Network Related	(0.2)	5.9	-103%

Total contribution from Network related joint ventures declined to a loss of $(0.2)m from the pcp contribution of $5.9m.

The deterioration is due to the equity accounted loss of $(6.6)m from Elders Toepfer Grain. The loss arose from the expansion of grade spreads brought by historically low production of milling grade vs feed grade grain following unseasonably wet weather during the period.

AWH income was affected by the reduction to wool storage volumes as growers moved to capitalise on high prices.

13

Forestry

Forestry Financial Results
$m 6 months to 31 March:	2011	2010
Continuing Sales Revenue	32.8	46.2
Total Continuing Revenue	38.9	53.2
Underlying EBITDA	5.2	8.1
Depreciation & Amortisation	1.2	0.7
Underlying EBIT	4.0	7.4
Non-recurring items	(9.2)	(174.4)
Reported EBIT	(5.2)	(167.0)
Revenue analysis:
Establishment income	0.6	3.4
Deferred fees (rental & management)	24.0	25.9
Harvest & port fees	8.2	16.9
Total forestry revenue	32.8	46.2
Investment Property & SGARA	4.7	4.4
Other revenue	1.4	2.6
Total Continuing Revenue	38.9	53.2
Net operating cash flows	(12.3)	(2.8)
Net investing cash flows	9.5	90.8

Non-recurring items

Non-recurring items are as detailed on page 3 of this document and comprise impairments arising from cyclone damage to North Queensland Red Mahogany plantations and gain on sale of ex-plantation land divested during the period.

Underlying results

Underlying EBIT was $3.4m lower due to the flow-on impact of lower MIS sales in the previous year and reduced income from handling of third party woodfibre.

Sales revenue from continuing operations was $13.4m lower:

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• establishment income was $2.8m lower due to lower MIS sales in 2010 and 2009.

==> picture [10 x 12] intentionally omitted <==

• deferred fees fell $1.9m due to the reduced income projections from cyclone affected plantations in Northern Queensland and diminution in estate size.

==> picture [10 x 12] intentionally omitted <==

• Harvest and port fee revenue fell $8.7m largely as third party woodfibre volumes were reduced significantly to provide capacity availability for Elders Forestry project wood. Elders' woodchip sales for the period of 203,519t (including 16,000t of third party wood sales) compares with 208,538t in the pcp (which included 131,000t of third party wood sales).

Land lease costs rose $3.0m in comparison with the pcp due to a larger area under lease and higher lease charges.

Depreciation increased due to the additional charges brought by the move to 100% ownership of Albany Chip Terminal.

Income of $3.9m recognised from investment property revaluation was slightly lower than the pcp figure of $4.4m. SGARA income on owned trees of $0.8m was recognised during the 2011 first half (nil in pcp).

Overhead costs were reduced by $3.2m (-25%).

Cash outflow of $12.3m from operating activities was partially offset by inflows from property sales ($5.3m) and grower loan repayments ($3.4m).

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Automotive

Automotive Financial Results
$m 6 months to 31 March:	2011	2010
Continuing Sales revenue	142.7	134.2
Underlying EBITDA	13.8	16.6
Depreciation & Amortisation	(9.1)	(8.0)
Underlying EBIT:
Futuris Automotive	4.7	8.0
Associates (equity acc)	0.0	0.6
Underlying EBIT	4.7	8.6
Non-recurring items	-	-
Reported EBIT	4.7	8.6
Operating cash flow	(0.6)	22.8
Capital expenditure	2.5	2.9

Automotive operations comprise 100%-owned Futuris Automotive (Futuris) and its subsidiaries and joint ventures. The principal joint venture is Futuris Automotive Interiors (Anhui) (70% interest) which operates in the Chinese automotive market.

Automotive operations recorded EBIT of $4.7m compared with the $8.6m in the pcp. The movement in earnings reflects the impact of lower passenger vehicle build volumes in Australia, which declined by 17% compared with the pcp in total with some OEM build falling by as high as 33%.

Sales revenue increased by $8.5m to $142.7m due to the incremental contribution of $35.6m to FY11 sales from the Plexicor operations and Feltex (South Africa) which were equity accounted joint ventures in the pcp but consolidated in H1 11. Sales revenue excluding the incremental sales attributable to these operations fell by 20% in comparison with the pcp.

Joint ventures and associates contributed a breakeven result. This includes a breakeven contribution from the Futuris Automotive Interiors (Anhui) JV (H1 10 contribution $0.7m). The reduced earnings from China reflects lower build volumes.

15

Corporate (Investment & Other)

Corporate Financial Results
$m 6 months to 31 March:	2011	2010
Continuing Sales Revenue	-	-
Equity accounted income	0.6	-
Other income	0.1	(0.2)
Costs	(3.5)	(7.1)
Underlying EBIT	(2.8)	(7.3)
Non-recurring items	(5.6)	(6.0)
Reported EBIT	(8.4)	(13.3)

Corporate and other includes Elders’ corporate operations and investments, including Agricultural Land Trust.

Underlying EBIT improvement of $4.5m against the pcp reflects:

• equity accounted income of $0.6m from Elders’ shareholding in Agricultural Land Trust (zero contribution in pcp)

savings in corporate costs of $3.6m.

Non-recurring items attributable to Corporate were $(5.6)m at the EBIT level and $(17.4)m at the profit before tax level with the difference between the two figures accounted for by non-recurring borrowing costs detailed on page 6 of this document.

Non-recurring items at the EBIT level of $5.6m comprise the impairment of non-core assets, legal costs associated with tax cases and costs associated with the debt refinancing during the period.

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Appendices

Elders Performance Summary

Six Month Performance	Rural Services	Forestry	Automotive	Corporate & Other	Elders Group
$m 6 months to 31 March	2011 2010 Change	2011 2010 Change	2011 2010 Change	Corp Corp Change	Group Group Change
Revenue - Continuing Operations Sales Revenue	910.8 844.7 8%	32.8 46.2 -29%	142.7 134.2 6%	- - **- **	1,086.4 1,025.0 6%
Profit & Loss - Underlying Underlying EBITDA Depreciation & Amortisation	18.3 6.7 173% (4.2) (5.1) -18%	5.2 8.1 -36% (1.2) (0.7) 71%	13.8 16.6 -17% (9.1) (8.0) 14%	(2.8) (7.3) -62% - - -	34.5 24.1 43% (14.5) (13.8) 5%
Underlying EBIT	14.1 1.6 781%	4.0 7.4 -46%	4.7 8.6 -45%	(2.8) (7.3) -62%	20.0 10.3 94%
Cash Flows
Total Operating Cash Flows	(11.0) 9.8 212%	(12.3) (2.8) -339%	(0.6) 22.7 103%	(25.7) (125.3) 79%	(49.6) (95.6) 48%

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Elders Finance Facilities

Facility Maturity	As At 31 March 2011	As At 30 September 2010
$m balances:	Facility Drawn Available	Facility Drawn Available
COVENANT DEBT Secured Notes Note 1 Tranche A2 - Series A November 2014 Tranche A2 - Series B May 2015 Tranche A3 - Series C November 2014 Note 3 Tranche A3 - Series D May 2015 Note 3 Tranche A4 - Series E November 2014 Secured Loans Tranche A1 Term Loan September 2012 Tranche D1 Revolver December 2011 Note 2	8.0 8.0 - 15.5 15.5 - 5.2 5.2 - 10.2 10.2 - 12.4 12.4 - 37.1 37.1 - 101.8 101.7 0.1	17.0 17.0 - 33.6 33.6 - 12.6 12.6 - 25.0 25.0 - 28.1 28.1 - 122.4 122.4 - 116.8 75.0 41.8
Total Covenant Debt Note 5	190.2 190.1 0.1	355.5 313.7 41.8
TRADE DEBTOR FINANCING Trade Debtor Finance - Argo Trust #2 June 2011 Note 4	182.6 111.2 71.4	182.6 111.2 71.4
Total Trade Debtor Finance	182.6 111.2 71.4	182.6 111.2 71.4
OTHER BORROWING Secured Loans China Facilities December 2011 New Zealand Facilities December 2011 Plexicor Facilities December 2011 Feltex Facilities October 2012 Tranche D2 Ancillary - A December 2011 Note 4 Tranche D2 Ancillary - B December 2011 Note 4 Tranche D2 Ancillary - C May 2011 Note 4 Cost to be amortised over loan Unsecured Loans Others in Rural Services On demand with 12 months notice Lease liabilities Comprises of a number of motor vehicle and IT finance leases of varyingduration	3.5 2.5 1.0 12.5 7.8 4.7 66.5 51.2 15.3 3.2 1.3 1.9 20.0 8.8 11.2 15.0 10.5 4.5 30.0 10.4 19.6 (8.5) (8.5) - 1.0 1.0 - 0.5 0.5 -	3.5 2.6 0.9 14.0 2.4 11.6 64.3 64.3 - - - - 20.0 9.2 10.8 15.0 14.0 1.0 - - - (21.7) (21.7) - 1.6 1.6 - 0.3 0.3 -
Total of Other Borrowings	143.7 85.5 58.2	97.0 72.7 24.3
TOTAL GROSS BORROWING	516.5 386.8 129.7	635.1 497.6 137.5

Note 1: The USPP Notes Tranche A2, USPP Notes Tranche A3 and USPP Notes Tranche A4 give holders of those notes the right to require Elders to redeem their notes ("Noteholder Put Right"). The Noteholder Put Right is exercisable up to and including 30 September 2012, for cash redemption on 30 September 2012. The Noteholder Put Right in respect of Tranche A3 Notes is also exercisable, at least in part, at other times, but only if, and proportionally to the extent that, the Tranche D1 Revolver becomes due and payable, or refinanced or a Lender exits the Revolver upon a review event.

Note 2: Subject to review event should the Company not meet a mandatory cancellation or repayments of this facility by $15m by 30 June 2011.

Note 3: Subject to a repayment cancellation or prepayment in an amount equivalent to the proportion of the mandatory cancellation or prepayment in Note 2 above (circa $2.3m) by 30 June 2011. Note 4: Facilities for non-cash advances available for specific purposes.

Note 5: On or before 30 September 2011 the company must permanently retire debt totalling $10m pro-rata across these facilities

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Elders Borrowings & Net Borrowing Costs

Nature of Borrowing		Mar-10	Apr-10	May-10	Jun-10	Jul-10	Aug-10	Sep-10	Oct-10	Nov-10	Dec-10	Jan-11	Feb-11	Mar-11
$m Month end balances		A$m	A$m	A$m	A$m	A$m	A$m	A$m	A$m	A$m	A$m	A$m	A$m	A$m
Covenant Debt - USPP		125.4	125.4	125.4	134.0	134.1	132.8	116.3	116.9	116.9	56.6	56.6	56.6	51.3
Covenant Debt - Bank: Term		125.1	125.1	125.1	125.1	125.1	122.4	122.4	122.4	122.4	37.1	37.1	37.1	37.1
Covenant Debt - Bank: Revolver		75.0	75.0	75.0	50.0	75.0	75.0	75.0	96.0	96.0	95.5	105.5	116.7	101.7
Covenant Debt		325.5	325.5	325.5	309.1	334.2	330.2	313.7	335.3	335.3	189.2	199.2	210.4	190.1
Trade Debtor Finance	note 1	89.2	118.4	142.0	98.1	108.3	96.1	111.2	115.9	109.5	109.4	102.4	109.1	111.2
Other Borrowings	note 1	3.8	(3.1)	(0.3)	(4.6)	(5.5)	(1.8)	72.7	63.0	64.4	70.2	73.8	71.6	85.5
Gross Borrowings		418.5	440.8	467.2	402.6	437.0	424.5	497.6	514.2	509.2	368.8	375.4	391.1	386.8

Note 1: Excluded from covenant calculations.

19

Equity Accounted Associates & Joint Ventures

Associate or Joint Venture	Segment	Ownership %	Contribution to Profit(Loss) $m	Contribution to Profit(Loss) $m
Name of Entity	Category	2011	2011	2010
Continuing Operations
Elders Insurance (Underwriting Agency) Pty Ltd	Rural Services	25.0%	3.1	2.8
Elders Financial Planning	Rural Services	49.0%	0.2	-
Elders Toepfer Grain Pty Ltd	Rural Services	50.0%	(6.6)	0.7
AWH Pty Ltd (formerly Australian Wool Handlers Pty Ltd)	Rural Services	50.0%	2.2	2.4
Futuris Automotive Interiors (Anhui) Company Ltd (Chery)	Automotive	70.0%	-	0.7
MCK Holdings Pty Ltd (Plexicor)	Automotive	consolidated 30/9/10	-	(0.1)
Agricultural Land Trust	Investment & Other	49.9%	0.6	-
Other			0.9	-
Total Continuing Operations			0.4	6.5
Discontinuing Operations
Rural Bank Limited	Rural Services	previously 40%	-	10.9
Total Discontinuing Operations			-	10.9
Total Equity Accounted Earnings			0.4	17.4

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Elders Network Business Indicators

Rural Services Australian	Trading Indicators
6 months to 31 March:		2011	2010
Livestock Agency
Cattle sold	Million head	0.92	0.98
Sheep sold	Million head	4.96	5.40
Cattle price	Average $/head	764.08	628.00
Sheep price	Average $/head	114.54	85.79
Farm Supplies
AgChem price	$/unit	8.43	7.31
Fertiliser Price	$/t	704.69	606.86
Wool Agency
Bales sold	000s	255	266
Wool price	average $/bale	1,190.28	966.21
Real Estate
Broadacre turnover	$m	429	447
Residential turnover	$m	312	432
Livestock Trading
Livestock export	000s head	70	123
Feedlot throghput	000s head	50	42

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