Annual Meeting Presentation

Allied Farmers LimitedAnnual General MeetingTuesday, 27 November 2018

Welcome & Introduction

Annual Financial Statements

Allied Farmers Limited
2018
2017
$m
$m
Income
18.6
17.4
Expenses
16.2
15.0
Ta x a t i o n
0.2
0.2
Net Profit
2.2
2.2
Parent Owners Share
1.5
1.6

2018
2017
$m
$m
LIVESTOCK
Revenue
18.2
17.3
Pre-Tax Profit
2.6
2.7
INVESTMENTS
Revenue
0.4
0.0
Impairments
--
Profit (Loss)
0.4
0.0
CORPORATE
Costs
0.5
0.3
Interest
0.1
0.1
Profit (Loss)
(0.6)
(0.3)
CONTINUING DIVISIONS
Allied Farmers Limited
Income
0.0
0.1

Allied Farmers Limited
* Does not include assessed value of investment
in subsidiaries or increase in value of
rural fixed assets
2018
2017
$m
$m
ASSETS
Receivables
14
8
Cash
1
2
Fixed Assets
4
4
Other Assets
1
1
20
15
LIABILITIES & EQUITY
6
Other incl. Creditors
11
8
Equity
3*
2*
20
15
GROUP BALANCE SHEET
Borrowings
5

Significant Milestones
Acquired further share in Redshaws Livestock – now 52%

Continued expansion in South Island

NZ Farmers Livestock – Good 2
nd
half after reduced 1
st
half

One off gain for Asset Management Services

Finance subsidiary ahead of plan

ON TRACK TO BE SIGNIFICANTLY AHEAD OF FIRST HALF OF LAST YEARCurrent Performance
Livestock mixed - some regions ahead of last year
- some behind – M bovis impact
Meat Processing ahead of last year
- expanded into Manawatu
Corporate / AFIL costs lower than last year

Dividend
0.2
cents per share
161.5 M shares $323,000Fully ImputedGross Dividend 0.278 cents per shareRecord Date 14 December 2018Payment Date 18 January 2019

Allied Farmers - Rural
CEO - Steve Morrison

• NZ Farmers Livestock Agency• MyLivestock platform and App• Redshaw Livestock • Farmers Meat Export Ltd - expanded• Livestock Finance – Bullplan and general• Associated Auctioneers JV interests (SML)
Working with Farmers for Farmers

• Experienced and growing team• Adding value for clients - every day• Sales/purchase channel & Deal closure• Win-Win business• Moving with (or ahead of) the timesWorking with Farmers for Farmers

Today:• Ongoing Growth – recruitment, acquisition, Northland,
South Island, yards
• NZFLL Group EBT • Dairy challenges• Solid livestock agency performance • FMEL growth – tally and price, trial • Redshaws in line with acquisition basis• M bovis challenge• Financial management• Very good bank support• Financially robust

Looking Forward:• Building & supporting teams• Developing new agents• Building networks• Robust contracting arrangements• DevelopingFMEL business• Building value• Enhancing control and process
Working with Farmers for Farmers

• Health and Safety of our staff a key priority• Significant efforts to ensure compliance

Future Focus- Informed Growth- Market share- MyLivestock/App/CRM - Bottomline performance- A platform and support for wider Allied
Farmers progress
Working with Farmers for Farmers

Thank you
Working with Farmers for Farmers

Questions

Business Resolutions

Resolution 1.
Re-election of Andrew McDouall
(retiring by rotation)

Resolution 2.
Election of Marise James

Resolution 3.
Remuneration of Auditors

General Business