ELDERS LIMITED - Investor Presentation 2024

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29 May 2024

Elders Limited Investor Presentation

Attached is a presentation to be given today, 29 May 2024, to the Australasian AgFood Conference, hosted by PAC Partners. The presentation will be given by Elders Limited’s ( ASX:ELD ) Executive General Manager – Network, Tom Russo.

Further Information:

Mark Allison, Managing Director & Chief Executive Officer, 0439 030 905

Authorised by:

Peter Hastings, Company Secretary

Elders Limited ABN 34 004 336 636. Registered Office: Level 10, 80 Grenfell Street, Adelaide SA Australia 5000

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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.

Elders Limited

E LDE RS LI MI T E D

A GE NDA

Agenda

Global context

Business model - diversification

Financial results through the cycles

Eight point plan strategic priorities

Sustainability

Questions

E LDE RS LI MI T E D

Global Context

The current world population of 7.6 billion is expected to reach 8.6 billion in 2030 and 9.8 billion in 2050

The evolving energy and nutrition requirements of a growing and increasingly affluent global population will remain key drivers of demand for agricultural commodities.
Growth in the global use of staples and fish will primarily be determined by population growth.
Consumption growth of higher value products (eg dairy, meat, and sugar) will be fuelled by income-driven growth.
Growth in the non-food use of crops is expected to continue to outpace growth in food use, due to intensifying livestock practices and increasing demand for biofuel.
Asia will continue to play the most significant role in shaping global demand. Whilst the Chinese population will decline, significant growth in per capita incomes in China and South East Asia will contribute significantly to growth in food consumption, particularly animal proteins.
Participation in the supply response is an attractive investment proposition. The weight of capital looking to be deployed into Australian primary production remains significant, particularly from North American institutions.
Sustainably increasing productivity is the key challenge and opportunity.

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Source: Tables: OECD/FAO (2023), OECD-FAO Agricultural Outlook 2023-2032, OECD Publishing, Paris, https://doi.org/10.1787/08801ab7-en.

E LDE RS LI MI T E D

Business Model

Geographic and product diversification mitigate impact of individual market volatility and create multiple pathways to growth

	Rural Products Agency Services *Retail* *Wholesale*	Rural Products Agency Services *Retail* *Wholesale*	Rural Products Agency Services *Retail* *Wholesale*	Real Estate Services	Financial Services	Feed and Processing Services	Digital and Technical Services
Product and service offerings	Rural Products	Rural Products	Livestock	Broadacre	Agri Finance	Killara Feedlot	Fee for Service (256 agronomists)
	Fertiliser	Pet Supplies	Wool	Residential	Elders Insurance(20%)		AuctionsPlus(50%)
	Agcrest(33%)		Grain	Property Management	LIT Delivery Warranty and Livestock Funding Products		Elders Weather
				Franchise	Home and Commercial Finance		Clear Grain Exchange(30%)
Key metrics	$2.4b retail sales	$0.5b wholesale sales	9.8m head sheep	$2.0b broadacre sales	$3.1b loan book¹ $1.4b deposit book¹ $42.2m own balance sheet lending $108.0m StockCo book	57k Killara Feedlot cattle head exited	AuctionsPlus 104k head cattle 841k head sheep
	242 stores	382 member stores	1.3m head Cattle	$1.7b residential sales	$1.2b insurance gross written premiums²		7.8m Elders Weather unique visitors
	>450 APVMA registrations		350k wool bales	13.6k properties under management	44% LIT penetration rate		0.8m CGX tonnes influenced
	1.1m tonnes fertiliser
Gross margin	$306.9m	$71.1m	$113.7m	$59.5m	$53.5m	$13.7m	Included in products
Working capital	$463.8m	$116.1m	$40.8m	$1.3m	$10.4m	$54.5m	Other – ($54.1m)

Statistics and financial information based on FY23 full year

Relates to Elders’ relationship with Rural Bank, which ceased in December 2023
Relates to Elders Insurance gross written premiums

E LDE RS LI MI T E D

Expansive footprint

Our brand strategy

Geographic, segment and channel diversification

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QLD/NT
54 8 29 24 6
$21.0m
NSW
WA
41 26 52 33 13
48 3 1 12 14 $44.6m
SA
$50.5m
51 11 4 17 16
$36.4m
VIC/RIV
50 16 13 28 12
KEY
TAS $57.1m
Elders Branded
10 1 3 0 1
Non-Elders Branded
$5.0m
Real Estate Franchises
Insurance Franchises
Other points of presence
$m Values refer to Underlying EBIT
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Primary: leveraging and reinforcing our position as the most trusted agribusiness brand in Australia

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Secondary: utilising other brands to grow market share[1]

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Non-exhaustive

6 6

E LDE RS LI MI T E D

Earnings Resilience Through Seasonal Volatility

Guidance reflects first quarter weakness from below average seasonal conditions, balanced with an improved outlook for cropping and livestock

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First Eight Point Plan Second Eight Point Plan Third Eight Point Plan Fourth FY24 Guidance
EBIT¹ +37.5% EPS¹ +735.2% ROC¹ 25.7% EBIT¹ +22.8% EPS¹ +12.8% ROC¹ 20.9% EBIT¹ +17.0% EPS¹ +13.6% ROC¹ 21.6%
Underlying EBIT
Range
232.1 $120m - $140m
_______
166.5 170.8 Key Drivers
140m
1. Q1 impacted by El Niño
120.6 forecast which negatively
120m impacted client sentiment,
especially in cropping and
70.4 74.5 73.7 livestock
56.2 2H24
40.5 2. Outlook for H2 improved
27.3 with good moisture
6 6 6 14 11 10 13 9 10 profiles in many winter
Acquisitions Acquisitions Acquisitions Acquisitions Acquisitions Acquisitions Acquisitions Acquisitions Acquisitions crop regions and a
promising recovery in
FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
livestock prices
Points of Presence Growth² +2 +8 +4 +6 +20 +13 +10 +15 +12
Seasonal backdrop
2015 – 2017 El Niño
2017 – 2019 Drought
2019 – 2023 La Niña
2023 - 2024 El Niño
2024 >>> Average
(EBIT $’m)
Baseline Year
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Average EBIT and EPS growth and average ROC over the Eight Point Plan period
Growth generated from acquisitions

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Five Year Financial Performance

Strong track record of delivering 5-10% EBIT and EPS growth through the cycles

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Sales Revenue ($m)
+19.6%
3,445 3,321
2,549
2,093
1,626
FY19 FY20 FY21 FY22 FY23
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Underlying EBIT ($m)
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+23.4%
232
167 171
121
74
FY19 FY20 FY21 FY22 FY23
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Adjusted Underlying Earnings per Share (cents)¹
+13.6%
134.1
96.7
87.6
69.9
52.6
97.3
66.3
FY19 FY20 FY21 FY22 FY23
Adjusted underlying EPS
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Costs ($m) vs Cost to Earn (%)
+12.6%
448
421
363
317
278
72% 72%
69%
64%
79%
FY19 FY20 FY21 FY22 FY23
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CAGR calculated on full year performance

Adjusted for underlying tax expense recognised from 1 October 2021

E LDE RS LI MI T E D

Cost Growth Excluding New Business: Year to Date

FY24 cost target on track through disciplined cost management

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Cost Increase excl. Growth Growth Adjusted Cost Movement² ($m)
and Transformational
Initiatives ($m)
247.4
4.6
4.8
6.0
+1.8%
5.0
227.0
3.9
223.0
HY23 Base HY24 excl FY23 FY24 Elders Wool Transformational FY24 YTD
Base Growth New Business Acquisitions¹ Acquisitions Projects Act
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Commentary

Base Target:

CPI increase to be partially funded through $10m pro-rata cost saving initiatives

FY24 YTD:

FY24 YTD is inclusive of acquisitive SG&A, CPI increase and recurring transformational growth expenditure
135 Additional FTE relating to FY24 acquisitions

Acquisitions and Transformational Projects:

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 1HY balance date
Transformational projects including toll formulation facilities in WA and additional depreciation and amortisation costs pertaining to these projects

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.
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

Option 3 – New Format, simplified priorities

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Compelling shareholder returns

Industry leading sustainability outcomes across health and safety, community, environment and governance

Most trusted Agribusiness brand in rural and regional Australia

5-10% EBIT and EPS growth through the cycles at minimum 15% ROC

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RURAL AGENCY REAL ESTATE FINANCIAL TECHNICAL FEED AND
PRODUCTS SERVICES SERVICES SERVICES SERVICES PROCESSING
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 4 Streamlining our supply chain to fully optimise 6 Growing our portfolio of products, services,
loyalty and growth all parts of our integrated value chain geographic footprint and channels
2 Investing in our people to ensure we have the 5 Modernising our systems with leading 7 Enhancing margins through value chain
right people in the right places who are set up technology solutions to enhance customer expansion and integration
for success experience, drive efficiencies and support growth
8 Innovating to create sustainable solutions for
3 Maintaining unflinching financial discipline and our customers and communities
commitment to cost and capital efficiency
CUSTOMER FOCUSED INNOVATION TEAM WORK INTEGRITY ACCOUNTABILITY
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10 10

Our Strategic Priorities – Streamline our Supply Chain

Our Rural Products supply chain optimisation program

Multi-year program to deliver group-wide supply chain planning processes, systems and capability
Supports front-end expansion, backwards integration, and channel diversification
Drives financial and operational excellence
Aligns with our systems modernisation program

Annualised gross benefits at full run-rate1,2	($m)
Capital
Inventory reduction (safety stock)	50-80
NPAT
Interest saving	1-2
Reduced risk of write-downs (factor of less inventory)	1-2
Sourcing derived margin improvement	3-5
Increased owned brand throughput	3-5
Net saving from consolidation of storage sites	1-2
Logistics & freight efficiencies	1-2
Gross NPAT Uplift2	10-18

Streamline benefits from external consultant analysis, September 2022

Excludes incremental costs (principally resourcing, estimated to be immaterial based on external consultant analysis, September 2022)

Our Strategic Priorities – Growth

Strategic intent to fill gaps and grow our geographical footprint

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Key strategic gap areas
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FY23: 9 Acquisitions , the largest being Emms Mooney and Rockingham
FY24 YTD: 10 Acquisitions , the largest being Eureka! and Charles Stewart and Knight Frank Tasmania

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Industry leading toll formulator with research
and development capabilities
Completed 1 October, $2m annual EBIT
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Victoria
EBIT Scale
Rural Products
4m+
<1m 2m 3m Real Estate
Agency
Indicative view of size of opportunity
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Livestock and real estate agency operations
across south west Victoria
Completed 1 November, $5m annual EBIT [1]
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Based on forecast livestock prices for the next 12 months

E LDE RS LI MI T E D

S T RA T E GY

Our Strategic Priorities – Transform

Gross margin growth and efficiency through product expansion

ELDERS WOOL¹

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Enhanced client experience through state-of-the-art wool handling facility

Modern, efficient, and scalable

Business Model

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

Enhanced Efficiency

Optimises logistics, sales and storage through automated warehousing
Centralised model insulated from cost pressures benefiting growers
Provides opportunity to generate revenue from additional avenues

Financial Creation

Increased earn per bale and gross margin
EBIT accretive by approximately $4-$5 million per annum

Over 52,000 bales received since November 2023

Projects are expected to deliver a ROC greater than 15% once operating at scale
AGV – Automated guided vehicle

E XE CUT I V E OV E RV I EW

E LDE RS LI MI T E D

Sustainability Performance

Meaningful progress towards Scope 1 and 2 emission targets

CLIMATE TARGETS[1]

Targets set to reduce our Scope 1 and 2 greenhouse gas emissions:

Engaged centralised waste management services provider,

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23.9
21%
Reduction vs 25%
baseline Reduction vs
18.8 baseline
17.9
64,772
60,828
59,551
Baseline
FY21 FY22 FY23
Bar Chart - (tCO2e/$m revenue) tCO2e
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Implementation of an ethical sourcing platform, enhancing
Partnering with Big Bag Recovery to promote enhanced
Targeted solar and LED lighting site upgrades to reduce
Solar array development at Killara Feedlot installed and near

Targets

100% renewable electricity in all Australian sites by 2025[3]

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 2050[2 ] (tCO2e)

Our Sustainability principles & priorities

Creating sustainable solutions for our customers and communities

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OUR We provide our We support our people We do our part to look We operate ethically and PRINCIPLES customers and clients and industries and after the environment to the highest standard with the goods and communities in which and animals in our care services they need we operate

1 HEALTH AND SAFETY 2 SUSTAINABLE FARMING 3 EMPLOYEE ATTRACTION 4 CLIMATE CHANGE

Prioritise the safety and wellbeing of our people OUR PRIORITIES 5 ANIMAL WELFARE

Safeguard the wellbeing of animals in our care and collaborate with our industry to promote livestock welfare and responsible stewardship

AND RETENTION Reduce our carbon footprint and Invest in our people and cultivate support our customers in climate diversity, inclusion and growth for adaptation and resilience collective empowerment and success

Enable customers to achieve AND RETENTION sustainability and productivity goals Invest in our people and cultivate amid diverse and demanding diversity, inclusion and growth for conditions, leveraging innovation collective empowerment and and technology success

6 CORPORATE

7 COMMUNITY IMPACT

8 WASTE MANAGEMENT

Collaborate with industry to minimise waste for positive environmental outcomes

GOVERNANCE AND INVESTMENT Secure our standing as the most Support rural and regional Australia trusted agribusiness brand by to positively impact our communities upholding ethical operations

Innovation – Thomas Elder Sustainable Agriculture Helping drive the ongoing evolution of farming in Australia

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Partnering with leading Providing a leading source of research agencies, creating trusted advice, supporting onknowledge and technologies farm practice change through for Elders and clients extension services

Enabling new AgTech solutions for farming clients

Supporting farmers on their sustainability journey through carbon farming services

Elders Limited

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ELDERS LIMITED — Investor Presentation 2024

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29 May 2024