Malcolm Jackman Elders Limited

Malcolm Jackman Elders Limited

The New Elders Refocused Reorganised Recapitalised ASX Small & Mid Cap Conference 29 October 2009 Malcolm Jackman Chief Executive Officer Chief Executive Officer 2 The New Elders ASX Small to to Mid Cap Conference Hong Kong October 29 29 2009

Elders is a leading Australian agribusiness offering exposure to: Australian farmers via the premium distribution brand supply of food and fibre to Asian and global markets value accretion arising from business renewal and transformation programs. 3

Favourable sectoral outlook Elders growth plans are underpinned by strong sectoral demand fundamentals TREND OVERVIEW IMPLICATIONS Population Growth UN forecasts world population growth of 390 million from 2010 to 2015 with Asia accounting for 58% Fundamentals supporting the soft commodity cycle remain intact Consumption Patterns Renewable Energy Increased wealth in emerging Asian economies driving change in consumption towards safe, high value agricultural products Growing biofuel industry and associated demand for key commodity inputs & outputs impacting overall demand-supply balance Continued food supply/ demand imbalance Structural change in demand for farm inputs/outputs and advice Competitive advantage of Australian producers vis-à-vis Asia & food Decreasing arable land per capita due to urbanisation and traceability Arable Land environmental contamination (particularly in emerging Continued demand and The New Elders economies) ASX Small to Mid Cap Conference Hong Kong October 29 2009 growth opportunities for Elders Elders has a leading position at the intersection of Australasian production and global markets 4

Recent events the foundations of business recovery have been put in place Change in financial year end to Sept 30 (FY09 a 5 qtr transitional year) Refinancing completed 30 September with 3 year term on core debt Recapitalisation approved by shareholders: $400 million institutional issue completed 20 October $150 million SPP to settle 30 October Issued share capital increasing from 819.2 million at 19 October to 4,486 million by 2 November (consolidation likely) Net debt reduced from $1 billion to pro-forma $200 million as at 30 June HiFert sales process continuing Market capitalisation increases from circa $300 million to ~$850 million Elders is now ready to push on with its business turnaround The New Elders ASX Small to Mid Cap Conference Hong Kong October 29 2009 5

Income streams concentrated on agribusiness from which over 80% of sales and EBIT is generated Sales * EBITDA* EBIT* Agribusiness^ 1,983 Agribusiness^ 88 Agribusiness^ 73 Forestry 16 Forestry 14 The Forestry New Elders ASX Small 121 to Mid Cap Conference Hong Kong October 29 2009 Automotive 232 2,336 ^ includes Banking and insurance * FY2010 Prospectus forecast Automotive 22 Corporate & other (10) 116 Automotive 7 Corporate & other (10) 84 6

Rural Services Operations unmatched brand, with business model and strategic position that confers competitive advantage Goodwill from 170 years of service Network of over 390 points of presence distributing farm inputs, financial services and providing marketing, technical and advisory services Network related supply chain assets that leverage distribution/accumulation capabilities in: Grain Livestock Wool Competitive advantage in intelligence through position at farm-gate Relationships with 100,000 farmers Points of presence Australia New Zealand Total Rural branches 267 18 285 Real Estate & Insurance 91 4 95 Franchise Real Estate (rural and regional) 33-33 Franchise Real Estate (metropolitan) 132-132 The New Elders ASX Small to to Mid Cap Conference Hong Kong October 29 29 2009 7

Rural services financial results & outlook 2009 impacted by year s events, rebound forecast for 2010 $ million^ FY08 12 mths June 2009 FY10P* Sales 2,691 2,439 1,983 EBIT 79.8 32.3 73.4 12 months to 30 June 2009: Collapse of demand volumes & prices post GFC Commencement of Elders Transformation Project Disruption brought by ReFi/Recap process Prospectus forecast: 12 months to 30 Sept 2010: Cost savings from 2009 initiatives Stabilisation of prices, recovery of volumes Continuation of Business Transformation gains ^ Includes banking and insurance The * New Prospectus Elders forecast ASX Small to to Mid Cap Conference Hong Kong October 29 29 2009 8

Shifting focus to performance & growth through a structured program addressing totality of operations The New Elders ASX Small to Mid Cap Conference Hong Kong October 29 2009 9

Go to market more effective sales performance based on reappraisal of client needs and Elders sales proposition Element Renew market understanding & structure Client needs analysis Re-organise around the customer Key Account Management Price book Re-engineer distribution model & customer interface Status Updated understanding of modern Australasian agriculture market needs Restructuring of Elders value proposition based on needs of identified customers Reform of City-centric sales & operations management to regional structure Bidding and winning on large and corporatised accounts where Elders previously ineffective Tighter price discipline, pricing for customer value, margin control & integrity More effective, lower cost, performance-driven branch model The New Elders ASX Small to Mid Cap Conference Hong Kong October 29 2009 10

Operational Excellence establishing cost effective standardised process that focus on the customer Essential ingredient for operation of large distributed network DMAIC* & Lean 6 Sigma structured program to reduce operating costs & improve efficiency First 6 months focussed on Branch operations (including Farm supplies, Livestock & Real Estate) and HR High strategic significance central to Go to Market, Supply Chain & Cost initiatives Standardisation of service and process across Elders network will bring efficiency gains, reduce risk, rework and non-conformances and increase sales staff capacity to sell The New Elders ASX Small to Mid Cap Conference Hong Kong October 29 2009 **DMAI C= Define, Measure, Analyse, Improve, Control 11

Supply chain cost-downs through better buying, reduced working capital and efficiencies in physical logistics Element Previous Benefit Status Consolidate the spend ~300 individual branch-based deals Buying power Negotiation power Control of offering Cost-downs progressively captured. More robust tender processes implemented. Increased control on product direction. Develop DC infrastructure Supplier-to-store direct Inventory Admin costs Transport costs Infrastructure implemented. Driving service improvements & freightrate cost-downs. Service levels Forecasting & functional alignment via Operations Planning loose alignment Planning, through single demand figure Forecasting software implemented. Sales and Operations Planning beginning to deliver better alignment between Supply Chain, The Sales New Elders & ASX Small to Mid Cap Conference Hong Kong October 29 2009 Marketing, Sales & Finance. Responsiveness Service Inventory The New Elders 12

Cost improvement.significantly reduced operating and overhead structure leading to improved cost performance HEAD COUNT SUPPORT CENTRE COSTS ($m) - Quarterly Down 11% Down 12% Down 20% 3,008 2,666 1,162 Down 43% 660 2,940 2,593 16 19 13 14 16 22 18 17 Permanent Casual FTE NETWORK COSTS ($m) - Quarterly September December March June SG&A ($m)¹ - Quarterly Down 8% Down 7% Down 8% Down 4% Down 3% Down 11% 61 63 58 59 59 53 55 54 82 85 75 72 79 85 77 76 The New Elders ASX Small to Mid Cap Conference Hong Kong October 29 2009 September December March June September December March June The New Elders 13

The margin improvement opportunity. targeting 2% - 3% improvement in rural services* margin from initiatives in train The New Elders ASX Small to Mid Cap Conference Hong Kong October 29 2009 Earnings improvement on $2 billion pa sales + additional sales brought by Go to Market gains * excluding banking and insurance The New Elders 1. FY2010 defined as the 12 month period ending 30 September 2010. 2. FY2008 (margin normalised to remove effect of operations discontinued in FY2009 (12 months ended 30 June 2009)). 3. Includes margin changes for cost initiatives from 1 July 2009 to 30 September 142010. 4. Includes margin changes for trading improvements from 1 July 2009 to 30 September 2010.

Forestry strategically significant assets, offering long term cash flows, positioned to benefit from industry rationalisation Establishment and management of FSC certified hardwood plantations 165,000 ha under management Ownership of 47,000 ha of plantation land Ownership and operation of port handling infrastructure 13.5% interest in Forest Enterprises Australia 49.9% shareholding in Agricultural Land Trust Owns 24,320 ha land, 17,000 of which hold ITC forests The New Elders ASX Small to to Mid Cap Conference Hong Kong October 29 29 2009 15

Forestry results to improve after tough year 2009 sales impacted by GTP, TIM failures & Elders refinancing $ million FY08 12 mths June 2009 FY10P Sales 191.3 184.9 121.1 EBIT 61.4 10.6 14.1 EBIT margin % 32.1% 5.7% 11.6% Sales ($m) MIS Industry Sales ($m) Market Share (%) ITC Market Share (%) 1,200 12% 12 months to 30 June 2009: Collapse of MIS demand post GFC, industry failures, & Govt review Margins impacted by fertilizer & other costs Disruption brought by ReFi/Recap process 900 600 300 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 9% 6% 3% 0% Prospectus forecast: 12 months to 30 Sept 2010: Recovery in MIS sales, investor confidence The New Elders ASX Small to to Mid Cap Conference Hong Kong October 29 29 2009 16

Cashflow from pulpwood harvest set to grow ITC estate is 10 years into 12 year establishment cycle GMT (000s) 3,000 2,500 2,000 1,500 1,000 500 Projected Annual Harvest Volumes 0 2006A 2008A 2010F 2012F 2014F 2016F 2018F 2020F Ramp-up in harvest volume forecast to turn cashflow positive 2011F onwards ITC model features greater retained equity in harvested tree Dedicated to forestry with no capex intensive horticultural projects Small loan book (~$20m) with negligible non-performing loans Source: Company announcements. 17

Automotive cash flow positive, developing non-core asset held for sale when shareholder value merits $ million 2008 12 mths June 2009 FY10P Sales revenue 384 270 232 Underlying EBIT Futuris Automotive 23.8 5.6 6.5 Associates 2.3 (21.1) - Total 26.2 (15.5) 6.5 Comprises Futuris Automotive & 35% owned associate Air International thermal systems Futuris Automotive has profitable China operations supplying Chery, JAC Impacted by contraction in global vehicle build in 2009 Operating cash flow positive in 2009 FY10 to improve as volume, costs stabilised Identified for divestment to natural owner when values return to market The New Elders ASX Small to to Mid Cap Conference Hong Kong October 29 29 2009 18

FY2010 financial outlook Rural services to drive turnaround as markets stabilise and transformation gains begin to emerge Underlying EBIT $m $ million 12 mths June 2009 2010P* Sales revenue 2,628 2,336 EBITDA 54.6 116.6 EBIT 16.8 84.2 Interest (51.7) (26.7) Underlying NPAT (26.9) 55.7 Increased EBIT across operations and reduced interest expense to drive turnaround in profit generation Factors responsible for 2009 decline to stabilise, recover 30 June 2009 pro-forma debt reduced to 14% Rural services gains expected to compound from 2010 The New Elders ASX Small to Mid Cap Conference Hong Kong October 29 2009 * Prospectus forecast 19

Gaining Momentum recapitalisation sets Elders to address and realise organic value gains projected to accrue from 2010 The Elders Makeover is all but complete with strategy, finances, organisation structure, management changes all achieved Divestment program in place for non-core assets Balance sheet position post-recapitalisation leaves Elders management free to concentrate on the margin and performance improvements that have been identified in the business Earnings profile and targets provide for: Partial recovery in 2010 Break-out subsequent as through gains targeted by transformation program addressing identified value accretion in go to market, costs, system and supply chain Outlook supported by demand fundamentals for Australian farm produce and capabilities of Australian farm sector The New Elders ASX Small to to Mid Cap Conference Hong Kong October 29 29 2009 20

The New Elders Refocused Reorganised Recapitalised ASX Small & Mid Cap Conference 29 October 2009 Malcolm Jackman Chief Executive Officer Chief Executive Officer 21 The New Elders ASX Small to to Mid Cap Conference Hong Kong October 29 29 2009