Monday 11 November 2019 Appendix 4E and Annual Report for the Financial Period Ended 30 September 2019 Elders Limited (ASX:ELD) today reports its results for the financial year ended 30 September 2019. Attached is the Appendix 4E (Results for announcement to the market), and Annual Report for the 12 month financial period ended 30 September 2019. Peter Hastings Company Secretary For personal use only 1 ELDERS LIMITED APPENDIX 4E (RULE 4.3A) FINAL FINANCIAL REPORT RESULTS FOR ANNOUNCEMENT TO THE MARKET For the year ended 30 September 2019 Attached is the final report for the year ended 30 September 2019. The consolidated profit after tax and non-controlling interests was $68.9 million (2018: $71.6 million). Additional Appendix 4E disclosure requirements and further details on the results and operations are included in the Annual Report provided to the Australian Securities Exchange. Result $000 Revenue from continuing operations up 4% to 1,667,347 Profit from continuing operations after tax attributable to members down 3% to 75,959 Profit/(loss) from discontinued operations after tax attributable to members n/m* (7,024) Profit after tax for the year attributable to members down 4% to 68,935 * percentage movement in result not meaningful Dividends Amount per security Franked amount per security 2019 Final dividend 9 cents 9 cents Interim dividend 9 cents 9 cents 2018 Final dividend 9 cents 9 cents Interim dividend 9 cents 9 cents The record date for the final dividend is 19 November 2019; and payable on 13 December 2019. Net tangible assets 2019 2018 $ $ Net tangible asset backing per ordinary security (141,650,621 ordinary shares) 1.61 0.86 For personal use only 2019 Elders Limited — APPENDIX 4E (RULE 4.3A) Final Financial Report Results For personal use only CONTENTS From your Chair 2 CEO’s Report 4 Year in Brief 6 A Year of Progress 7 180 Years of Service 10 Operating and Financial Review 12 Material Business Risks 20 It’s More than a Business – It’s Personal, Too 22 Review of Operations 24 Board of Directors 33 Executive Management 36 For personal use only The Wadlows’ Story 41 Cover (clock-wise): Alison Ross (staff), Katherine NT Directors’ Report 42 Peter and David Lehmann (clients), Caltowie SA Don and Kelly White (clients), Bridge Creek Station, Adelaide River NT Remuneration Report 48 Tahir Rashid (staff), Northam WA Annual Financial Report 66 Shareholder Information 122 Company Directory 123 From your Chair F R O M Y O U R C H A I R It is an honour to have recently been appointed Growth and Innovation Corporate Governance, Looking ahead Chair of Elders, a company that has been We invested significantly in growing Risk and Compliance Your Board has some clear priorities proudly serving Australia’s agricultural our business in financial year 2019. Our five values – integrity, accountability, for the year ahead. industries for 180 years. Our branch network continues to expand customer focus, innovation and teamwork – We will focus on continuing to meet our Your company is an iconic Australian through a combination of organic initiatives underpin all we do at Elders. Those values are strategic targets as our second Eight Point institution, having grown from humble and acquisitions, with a number of new reflected in the strong corporate governance Plan enters its final year and confirm the beginnings in 1839 to today’s position as locations added to our national footprint, and risk and compliance practices we next strategic plan which will guide us the country’s largest listed rural services and with 12 additional businesses extending demonstrate every day. through to 2023. business. our customer reach. Our ambition is to have governance practices, The purchase of AIRR and its successful Few companies can lay claim to that We expanded our product range with the tailored to Elders’ specific needs and integration will demonstrate our commitment heritage or longevity. Although we’ve faced introduction of our Livestock-in-Transit circumstances, equal to those demonstrated to grow our business not just organically, but and overcome many challenges in that Delivery Warranty, providing important by Australia’s very best companies. In 2019 we through disciplined acquisitions that meet our 180 years, our commitment to Australia’s financial protection for our customers. entered the ASX 200 and we aspire to match the strict financial criteria, ensuring they create rural communities has been constant. best governance and sustainability standards value for shareholders. In July, we announced the proposed practised by ASX 100 and above companies. In There is no doubt conditions remain acquisition of Australian Independent Rural 2020 we will pay particular regard to enhancing We will continue to grow our branch network extremely difficult for many of our customers, Retailers (AIRR). Once finalised, this key our competence in all aspects of sustainability to enable us to better serve our customers, with drought continuing to impact businesses investment will deliver Elders enhanced to ensure we prosper well into the future, with the ongoing pursuit of operational across much of the country. scale and growth opportunities, with its meeting the legitimate interests of our clients, improvements and efficiencies across our Despite those challenges, Elders has provided well-established wholesale business, access employees, investors, communities and other business ensuring we remain competitive. to the pet and produce market segments solid returns for our shareholders in the 2019 stakeholders. And our ongoing drive to seek innovative financial year, with our second Eight Point Plan and portfolio of animal health product Our Board is well-structured with an solutions will see us expand our technical underpinning continued improvements across registrations. appropriate depth and balance of skill, and digital services. our business. Our proposed investment in AIRR was knowledge and experience. As our business endorsed by institutional investors, who grows, it is likely we will further broaden the In closing Financial Results strongly supported the capital raising for the Board’s skill set through the appointment of Our continued success would not be possible Elders has delivered on its earnings guidance, acquisition. I also thank the large number of a new Non-Executive Director. without the dedication and commitment of recording an underlying after-tax profit of retail shareholders who chose to participate our 1,900 employees, who work tirelessly We are committed to compliance, It is an honour to have recently been appointed Chair of $63.6 million for the 2019 financial year. in the retail offer component of the capital to serve and support our customers and transparency, disclosure, and acting lawfully, raising. their communities. Even as we celebrate 180 Elders, a company that has been proudly serving Australia’s Underlying Earnings Before Interest and ethically and responsibly. We believe that years of helping build Australia’s great rural Tax (EBIT) was $73.7 million, marginally Our continued investment in R&D and digital identifying risks allows us to not only manage agricultural industries for 180 years. industries, your Board is already looking to the below the result achieved in FY18. technologies will help Australian agricultural them, but to highlight opportunities for further future, confident that we have the people and The strength of those results can be attributed industries improve productivity and enhance improvement and innovation. We believe this the passion to continue creating real value for to our diversified business model, together their competitiveness in global markets. approach builds resilience and strengthens shareholders. with management’s highly disciplined approach Partnerships during the year included the our business. to managing and allocating costs and capital. South Australian Research and Development The Board has declared a final dividend of Institute, the Bureau of Meteorology, Western 9 cents per ordinary share, taking dividends Sydney University, the Grains Research and for the year to 18 cents fully franked. Development Corporation, Meat and Livestock Australia, Wine Australia, AgriFutures, and Safety performance Primary Industries Regions SA with our Struan Research Farm partnership. Ian Wilton Your Managing Director, Mark Allison, will Chair of the Board expand on initiatives being taken to improve Workplace Health & Safety (WHS) outcomes in his report, and I firmly believe that genuine leadership is a key factor and driver of change. Our WHS governance remains robust and both For personal use only our Board and Executive teams continue to be committed to placing the highest priority on the well-being of our people in all that we do. 2 2019 Annual Report — Elders 3 CEO's Report C E O ’ S R E P O R T Safety performance Efficiency and Growth Our People Our communities In FY19, Elders held its inaugural Safety The last year has seen consolidation, and Our annual Employee Effectiveness survey, Our community giving program, Elders Give Summit day. The purpose of the Summit was growing interest from offshore investors in conducted by consulting firm Korn Ferry, again It, continues to partner with the Royal Flying to identify and understand any barriers and our industry sector. Rather than be distracted showed pleasing results, with an increase Doctor Service Central Operations. Our Big distractions that might exist that could prevent by those events, Elders has reaffirmed our in Employee Engagement of 1% to 76% and BBQ month in February raising over $60,000, the achievement of optimum Work Health and commitment to growing our business and Employee Enablement remaining steady at with branches across the Elders network Safety outcomes, and to devise strategies to exceeding the expectations of our customers. 77%. 70% of our people took part in the survey. supporting local events to help raise funds rejuvenate current practices or implement for this valuable service. We continue to expand our footprint in regional These results place Elders well above new initiatives.