Thank you for standing by, and welcome to the Elders Limited FY23 Results Investor Briefing. All participants are in a listen-only mode. There will be a presentation, followed by a question-and-answer session. If you wish to ask a question, you will need to press the star key, followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Mark Allison, Managing Director and CEO. Please go ahead. Thank you very much, and welcome to all for the Elders Full Year results presentation for the FY23 year. Thank you for joining Paul and myself for the session today. From an Elders viewpoint, this is the final year of our third Eight Point Plan. The Elders philosophy since the first Eight Point Plan in 2014 has been to control what we control and not to dwell on what we can't control. To have a cost and capital structure to allow us to make good returns in bad years and to make great returns in good years. The FY23 results are an example of acceptable returns in very difficult market and cost conditions. In fact, this result is the second highest result in the last 10 years for Elders. We use our multiple diversifications by product, service, geography, crop segment, commercial model, and channel to market, and our financial discipline to deliver consistent and high returns for our stakeholders. In summary, we aim to control what we can control. Over the first two years of our third Eight Point Plan, and more specifically in FY22, we experienced exceptionally strong and early market conditions across most production enterprises and geographies. We also had positive livestock prices, winter crop and summer crop conditions with unseasonal rainfall, all resulting in a record profit last year. Our view in November last year was that the exceptional FY22 results would normalize to average conditions in FY23. Although we expected a reduction in livestock prices, we did not foresee a near 60% drop in cattle and sheep prices over a very short period of time. In this context, the performance of Elders with its clear and consistent strategy, multiple diversifications, high financial discipline, hardworking and committed team, and enduring customer anchor as the most trusted brand in Australian agriculture, the result is very solid. As mentioned, our second highest profitability in 10 years. The result is strong in safety, sustainability, profit, return on capital, and cash conversion, maintaining a strong balance sheet through a very difficult year and setting us up for the next Eight Point Plan. Our commitment is to provide 5%-10% growth in EBIT and earnings per share at a minimum of 15% return on capital in a sustainable manner through a safe and inclusive workplace. The results today are consistent with our 5%-10% growth through the cycles commitment, with the annual growth for the last 5 years, with a CAGR approaching 25%. Our approach for today is that I will provide an overview of the results, Paul will go through to the detail of our financial performance, and then I'll provide an update on our outlook and growth and transformation initiatives as we commence our fourth Eight Point Plan. So with that, I'd like to move to the key investment drivers. And you can see as we run through, the key investment drivers, in terms of EPS growth, the, a commitment of 5%-10% of growth of, EPS and EBIT through the cycles at above 15%, return on capital. So over the three eight-point plans, the last nine years, EPS CAGR of 57%, with ROC greater than 15% throughout the period, and a dividend payout between 40%-60%. This year, as you'll see in the notes, above that, for the payment. When we look at the geographical product and channel diversification, I think we talk a lot about our diversified model, and this allows us to make money through the cycles, as we've mentioned. When we go to slide, the GM slide on page 20, that Paul will go into detail, you will see the impact of the multiple diversifications, our products and service, and then the following slide at geographical level. In terms of attractive market and company outlook, it's a very, very positive outlook for food and agri. We talked about the cycles and the impacts of various uncontrollables, but in reality, as we can see by the slides coming up, we've had strong and high quality growth through the cycles. In terms of transformational initiative benefits, again, we'll talk to the detail, but we do have the two biggest projects around our systems modernization project and our rural product supply chain optimization project are looking to provide benefits towards the end of FY24 and into 25. Significant pipeline of new opportunities. So this year we talked about, we reported in on nine acquisitions, bolt-on acquisitions. There are some 16 candidates in our pipeline, and as we've mentioned previously, a universe of 1,800 rural service branches around Australia, 900 of which are independent, and therefore, are opportunities for us for our bolt-on acquisition strategy. At a market share of roughly across all of our products and services of around 20%, significant room for growth for the business. Then finally, on our robust balance sheet and supporting growth, we've often talked about our high financial discipline. You've seen us make commitments at the half year with regard to cash conversion, with regard to cost management and efficiency, and they have been delivered and exceeded as we come into the full year. Paul will talk to that detail later. It's worth noting that we've finished the year at 1.5 x leverage with our guiding range. Sorry, 1.4 leverage with our guiding range 1.5x to 2x. So moving to the next slide, and again, just to emphasize what's happened with the Eight Point Plans over multiple El Niños, La Niñas, geopolitical issues, and many pandemics, et cetera, over the period of the first three Eight Point Plans. You can see the slides or the headings down the bottom, talking about the uncontrollables, the climatic events. You can also see under each Eight Point Plan, how we've performed against a commitment of 5%-10% growth in EBIT and earnings per share at above 15% return on capital. So the first Eight Point Plan, 30-year, sorry, 735% growth from business from turnaround, ROC of 25.7%. Second Eight Point Plan, as we ran through drought years, so significant drought years, we've had, the EBIT growth, a CAGR of 22.8% and ROC of 20.9% through that period. And then the third Eight Point Plan, as we ran from drought into La Niña and then finished off with a shadow of El Niño predictions. As you can see, the EBIT growth of 17% through the cycles, EPS 13.6, and ROC of 21.6%. So, obviously highlighting a highly resilient business model that we've put in place through the Eight Point Plan period. The fourth Eight Point Plan, we'll talk about later, is cut from the same cloth, in the same market and with largely the same executive team to deliver. If you look at the next slide. From an operational viewpoint, you've seen a reduction in both lost time injuries and total recordable injury frequency rate. It's great progress. We've held our very strong Net Promoter Score at 48. We go across with holding at 43% women in the workforce, but importantly, up to 20% women in senior positions. A long way to go, but it's also a long pathway from our first Eight Point Plan, when we started with 4% of women in management positions. Our employee engagement remains above high performing through the Korn Ferry assessment mechanism at 77%. So very strong engagement and enablement. And then, of course, right in the middle, for the fourth year in a row, the number one most trusted agribusiness brand amongst farmers. So going to the next slide, and you can see the pathway in lost time injuries. In fact, when you go right back to the first Eight Point Plan, there were 34 lost time injuries, and so we've seen great progress there. And then with total recordables, you also see a clear trend line. And it's worth noting that there's been great progress within the wholesale business, AIRR, and we continue to make strong progress. The next slide in our sustainability performance. We issued our first report a few years ago and have made good progress across a number of the climate targets we set. Where we launched our... In terms of progress, we launched our sustainability framework, established Thomas Elder Sustainable Agriculture, which does support the front end and many other clients in terms of innovation efforts and sustainability. Joined the Big Bag Recovery Program, which is an equivalent program to drum MUSTER, and drum MUSTER over the years, having recycled some 53 million containers. Our targeted solar and LED lighting upgrades, and also the solar farm development at Killara Feedlot. So then taking to the financial highlights for the next slide. The above the middle of the range that we gave in terms of underlying EBIT of AUD 170.8. Down on FY 2022, but as mentioned, the second highest in 10 years. 16% return on capital with a target of 15%. Weighted average cost of capital is in the realm of 8%, so significant shareholder value driving performance. Cash conversion, that we exceeded our commitment of 90%, that we made, at the half year, and we, we do have in policy, and, that has been another great result. And as mentioned, leverage ratio at 1.4x against our target of 1.5x to 2x. So, in summary, before I hand over to Paul, in a very difficult year, it's a solid outcome, second best profit in 10 years, and high quality return on capital and cash generation. So with that, I'll hand over to Paul. Thanks, Mark, and, and welcome everybody today. I'll commence on slide 12 of the pack, which displays, Elders' five-year financial performance from FY 2019. Over this period, sales have increased from AUD 1.626 billion in FY 2019 to AUD 3.321 billion in FY 2023. A five-year compound annual growth rate or CAGR of 19.6%. Gross margin has increased from AUD 352 million in FY 2019 to AUD 619 million in FY 2023 at a CAGR of 15.1%. Comparatively, costs have increased at a five-year CAGR of 12.6%, reducing Cost to Earn from 79% in FY 2019 to 72% in FY 2023. Underlying EBIT has increased from AUD 74 million in FY 2019 to AUD 171 million in FY 2023, at a five-year CAGR of 23.4%. I'll move now to slide 13, which focuses on shareholder returns over that same period. Over the period, underlying earnings per share increased from AUD 0.526 in FY 2019 to AUD 0.876 in FY 2023, at a five-year CAGR of 13.6%, adjusting for the impact of company tax expense, which was only recognized from FY 2022. Dividends per share increased from AUD 0.18 in FY 2019 to AUD 0.46 in FY 2023. The dividend payout ratio, I note, is currently elevated above Elders policy of 40%-60% of underlying NPAT, but is considered maintainable given high cash conversion in FY 2023, which is forecast to continue into FY 2024. Moving to slide 14 now, which contrasts FY 2023 against prior corresponding period. As noted in recent presentations, FY 2022 was characterized by historically high livestock prices, high real estate turnover, and inflated crop protection fertilizer prices following supply chain disruption. These market forces supported Elders performance in FY 2022. By comparison, FY 2023 saw steeply declining sheep and cattle prices, which reduced livestock agency commission, along with declining fertilizer and crop protection prices, which placed downward pressure on rural products margins. Consequently, there are very material differences between the operating environment across the two financial periods. Notwithstanding these market impacts, Elders has been able to deliver its second-highest result in the past 10 years, with a number of highlights evidenced. Looking at the comparison, sales revenue decreased AUD 123.9 million, down 4%. However, most of the negative impacts from declining commodity and input prices was offset by growth in the volume of products sold. We will explore this further in the presentation. Gross margin decreased AUD 33.7 million to AUD 619 million, down 5% year-on-year, negatively impacted by lower sheep, cattle, glyphosate and fertilizer prices. Gross margin percent decreased 0.3%, due primarily to margin pressure from declining crop input prices, especially glyphosate, and particularly in the second and third quarters. Pleasingly, the margin impact was softened by the increase in backward integration to 54% of the addressable market. Costs increased AUD 27.6 million to AUD 448.2 million due to acquisitions, new points of presence, and support for transformational projects, including Systems Modernisation and Elders Wool. Pleasingly, costs have been held flat from the second half of FY 2022, despite the inflationary backdrop. Underlying EBIT decreased to AUD 170.8 million, with a five-year CAGR of 23.4%, exceeding Elders' target range of 5%-10% through the agricultural cycles. Operating cash flow was positive AUD 169.2 million, with cash conversion of 163.1%, above Elders' target of >90%. The average cash conversion over FY 2022 and FY 2023 was 110%. A full year dividend of AUD 0.23 per share has been declared, unchanged from the FY 2023 interim dividend. Over to slide 15 now, where the impact of market volatility is evident across several products. Elders agency business was negatively impacted by significant declines across sheep and cattle prices, as producers adjusted forecasts of drier spring and summer conditions. These drivers will be further explored in subsequent slides. Falling cattle prices also negatively impacted Elders Feed and Processing business, although mostly in the second and third quarters. Retail and wholesale products were impacted by a decline in crop protection prices in key actives, especially Glyphosate, which compressed gross margin. The full impact of this market dynamic was mitigated by volume growth across several product categories and continued progress with Elders Backward Integration strategy. Financial Services performed well throughout the period, with strong growth, particularly from Elders Insurance investment. Real Estate showed pleasing resilience following a very strong result in FY 2022 and in the context of rising interest rates. I'll move now to slide 16 to review key performance trends. The four charts on the left demonstrate the material decline in sheep and cattle prices, and in the case of cattle, the absence of a volume uplift, as would typically be expected. The four charts on the right demonstrate areas of continued growth in the business as Elders continues to diversify by both geography and products. We'll further explore these areas of growth as we move through the pack. Moving on to the next slide, which takes a closer look at sheep and cattle prices over the past decade. The charts demonstrate the statistical materiality of price movements in sheep and cattle markets in FY 2023 a nalysis of prices over a 10-year period indicate that volatility of this magnitude is historically unusual, and also, the current pricing remains one to two standard deviations below 10-year median prices, unadjusted for inflation. This time last year, Elders forecast a softening in livestock prices for FY 2023, but not of the magnitude experienced. Turning to slide 18, we review the market volatility over time for fertilizer and glyphosate. Market volatility had a significant impact on rural products gross margins, especially in the second and third quarters of FY 2023. The genesis of fertilizer price volatility emanated from the Russian invasion of Ukraine, which resulted in increased natural gas prices in FY 2022, which subsequently subsided in FY 2023. Global prices for glyphosate and other crop protection products increased in FY 2022 due to limited supply from China ahead of the Beijing Winter Olympics. Prices across several key products subsequently declined in FY 2023, placing downward pressure on gross margin percent across the industry. The charts demonstrate that the scale of price volatility over FY 2022 and FY 2023 is historically unusual. Pleasingly, much of this impact was offset by volume sales growth, as well as further progress in Elders Backward Integration, demonstrating the resilience in Elders' business. Moving on to the next slide, we further explore the negative impact of sales from declining product prices and the extent of offsets and continued volume growth within the business. The charts below demonstrate that declining fertilizer and crop protection prices would have had a much more significant impact on rural products sales and gross margin, had it not been for the continued growth in the volume of products sold. The chart bottom left shows that volume growth added AUD 315 million to rural product sales, or 11%. This was more than offset by the negative impact on sales from declining crop protection prices, estimated at AUD 340 million. Moving to slide 20 now, which displays Elders product diversification. Overall, gross margin decreased by AUD 33.7 million, from AUD 652.7 million in FY 2022 to AUD 619 million in FY 2023. Despite the significant market volatility, many products performed strongly in FY 2023. Ag Chem gross margin decreased AUD 14.1 million to AUD 158.8 million due to margin compression from key actives, but increased AUD 28.4 million on FY 2021, with continued volume growth. Animal health gross margin increased AUD 7.6 million to AUD 47.3 million, with continued growth from Elders private label products. Other retail gross margin increased AUD 15.3 million to AUD 54.5 million, due to continued growth in seed and general farm supplies products. Wholesale products decreased AUD 1.4 million to AUD 71.7 million, impacted by the flooding in Q1 and declining glyphosate prices, but increased AUD 10.5 million on FY 2021. Real estate services gross margin decreased AUD 2.1 million, with Broadacre sales negatively impacted by rising interest rates and falling cattle prices, but increased by AUD 8.8 million from FY 2021. Financial services gross margin increased by AUD 9.3 million to AUD 53.5 million, with a strong result from Elders Insurance investment. Moving to slide 21, which displays Elders geographic diversification. This slide shows geographic contribution to EBIT, excluding the wholesale business as well as corporate overheads. In comparison to FY 2022, both states were negatively impacted by the market and price volatility previously discussed, but showed great evidence of resilience. Over to slide 22 to discuss costs, which we continue to manage closely. Costs grew AUD 27.6 million, up 7% YoY, to support future business growth as well as our transformational projects. In terms of key drivers, people contributed an additional AUD 11.8 million, acquisitions AUD 9.6 million, motor vehicles AUD 4.8 million, and property AUD 3.2 million. Breaking this down, the Elders branch network added 65 FTE, of which 29 were graduates, and acquisitions added 94 FTE. Transformational projects added 25 FTE, mostly from Elders Wool Rockingham, which commenced operations in July. Costs were stable through FY 2023 at similar levels to the second half of FY 2022, notwithstanding the inflationary environment, due to continued focus on discretionary spend, operational efficiency, and supported also by reduced staff incentives. I note that Elders is targeting AUD 10 million of cost reduction in FY 2024 to mitigate the impact of inflation on the cost base. Moving to slide 23 to discuss capital allocation. Return on capital decreased from 26.2% to 16% period on period, but remains above Elders target hurdle rate of 15%. I note the three-year average return on capital is 21.6% key drivers of the decline in FY 2023 include product mix, most notably a lower contribution from agency services, which generates comparatively higher return on capital. Elevated average working capital due to quickening supply chains in the first half of FY 2023, which increased average working capital and reduced EBIT compared to the corresponding period due to market and price volatility, as discussed. We'll now move to slide 24 and cash flow, where we see operating cash inflow of AUD 169.2 million. Cash conversion in FY 2023 was 163%, with an average over FY 2022 and FY 2023 of 110%. The outlook for operating cash flow and cash conversion in FY 2024 is favorable, with Project Streamline forecast to release approximately AUD 50 million in capital in FY 2024. I note also that the physical payment of company tax for Elders Limited is not expected to recommence until 2025. I'll now move to slide 25, where we see balance date net debt increase by AUD 183 million, with AUD 84.7 million of this increase coming from AASB 16, primarily due to new lease commitments for Elders Wool and a general increase in duration across the property lease portfolio. Net debt, excluding AASB 16, increased by AUD 98.3 million, driven by nine acquisitions, as well as Elders' AUD 38 million investment in PGG Wrightson and capital expenditure on transformational projects, notably the AUD 25 million investment in Elders Wool. Balance date leverage, excluding AASB 16, increased from 0.7x to 1.4x, but remains below Elders' target range of 1.5x to 2x. Balance sheet strength, combined with significant undrawn bank facilities and covenant headroom, provides flexibility for Elders to pursue growth opportunities in FY 2024 and beyond. This concludes the financial section of the presentation. I'll now pass back to Mark, who will review the performance of our third Eight Point Plan, introduce our fourth Eight Point Plan, and discuss the market outlook. Okay, thanks, Paul, and we'll just move to slide 27. When we look at the first three Eight Point Plans, and I think the points that have been made earlier in the presentation on the commitment of 5%-10% growth through the cycles at 15%+ ROC for EBIT and earnings per share, and the over delivery on those metrics over the first three Eight Point Plans. The fourth Eight Point Plan, as mentioned, has a similar direction in terms of commitment to metrics through the cycle and, and as mentioned earlier, is cut from the same cloth, in the same market, and with largely the same executive management team and team across Australia, delivering the fourth Eight Point Plan. So if we go to the next slide on page 28 and the fourth, when we look at the fourth Eight Point Plan, it's unchanged in terms of ambition, in terms of the compelling shareholder returns, industry-leading sustainability outcomes, and most trusted agribusiness brand. Unchanged in terms of the business units and also the values. What we have done for the fourth Eight Point Plan is to focus the eight points into three key areas of run, transform, and innovate and grow, given we're at that stage in the development of Elders across Australia. So moving to the first component, which is our strategic priority of run, and I won't go into the detail, but happy to take any questions later on in terms of the deepening customer relationships heading, financial discipline heading, and investing in our people heading. And these are the three core anchors of Elders over the last 10 years. As I say, I won't go to the detailed dot points, but happy to take any questions as we go through the question time. Going to the next slide in terms of transform, and this is a very strong focus area for us. Quite interestingly, the cost and capital that we've put into the transformational parts that will get returns towards the end of FY 2024 and into 2025, but were a cost and capital burden in FY 2023 in the result. So if we look at the streamlining our rural supply chain, we flagged this at the half year. We've now, with our acquisition strategy, have multiple points along the rural products supply chain, from the formulation all the way through to retail and obviously with supply, procurement, wholesale, et cetera, in between. And so we thought that it was a time, particularly running parallel with the evolution of our new Systems Modernisation, to target a streamlining of the supply chain. So we're looking over multiple years, a AUD 10million - AUD 18 million dollar EBIT benefit, a AUD 50 million-AUD 80 million capital reduction benefit as per the original review that we did 18 months ago. And that's progressing quite well. When we look at systems modernization, and we've mentioned that we—there are seven waves, including the first one, which is the zero, so six waves after that. Now, we're in the second wave. We communicate and disclose to the market the cost and capital involved in each wave as it's approved by the board, but not ahead of time because we haven't had the business cases finalized, et cetera, et cetera, and they're not approved. But when you look at this year, this is the peak spend year in wave two, and that's worth noting. We can go into greater detail of that with discussions later on. The benefits flow really kick off in FY 2025, but a very, very important project for us with multiple benefits, as we transform Elders with its multiple products and services to allow systems wise, the customer to be the center, which allows significantly greater average areas to add value and to digitalize various services, products, and align the products and the share of wallet. Now, the third project that's not there, but we have talked about, we, we disclosed at the half year, was Elders Wool, which is the, automated, wool handling, facility. Twenty-five million of CapEx, eighty percent return on capital, by FY 2025. Flat in FY 2024, although a cost in FY 2024. Perth facility was opened in July this year. Melbourne facilities planned to be open in February next year, and a capacity of some 380,000 bales. So another great project for us to gain share and add further value to both clients and our shareholders. In moving to the next slide, which is the innovate and grow, and it's broken into two areas, one being the portfolio, and the second being, sustainability solutions. So we'll deal with the portfolio to start with. I think, firstly, I'd comment that, from a business development viewpoint, with our bolt-on acquisitions, FY 2023 has continued to be strong. 59 financial models developed, 20 non-binding indicative offers, 11 detailed due diligence assessments, nine acquisitions, and AUD 9.1 million annualized EBIT for the year. Adjusting for livestock price reduction, we're thinking that for FY 2024, this is an AUD 8milliom to AUD 10 million EBIT range of bolt-on acquisitions, where we currently have 16 in the pipeline. So, very positive and clearly with the balance sheet to be able to continue to make these bolt-on acquisitions, where the EBIT multiple we're paying is converted into significant shareholder value against our multiples. So that's, that's a very positive and, and ongoing, addition for the business. Then looking at backward integration, just broadly, so we targeted, 55%, of share of off patent products to be, Titan or Apparent, branded, in FY 2023. We got up to 54%, which is a great effort, and we're targeting now 60%. You may recall that we said we'd go from, I think back then, maybe 30%, we take it up to 70%, which, leaves room for, proprietary, companies that have, generic portfolios still to have bundled business with us. So that movement of 54% to 60%, is in the realm of, 5%-10%, EBIT, for, FY 2024 as we go forward. Moving then to the second area of our strategic priorities, which is innovating and growing through sustainable solutions. These are all Eight Point Plan key priority areas, where we go from a health and safety, sustainable farming, employee attraction and retention, our management of climate change impacts, animal welfare focus, corporate governance, community impact and investment, and our waste management. All being actively managed and expressed in detail in the sustainability report that you'll receive with this year's accounts. Moving to market outlook, and the slide 34 has the ABARES' September report. There's a December report due, and I think it's worth noting that we run on an average season view, and that's how we run the business. If there are clear indicators that there will be fundamental changes in prices, commodity prices, et cetera, that's factored in the way we look at the market. If you convert that, the ABARES report, and I think in the update of that report, we may see some more positive commentary around the summer crop, around dryland summer crop, in particular, when the report comes out in December. But if you convert that to page 35, which is our view on the impact, and I think it's worth noting that at something we as we say, across all the products and services, we say somewhere around 20% of the market. So the market going up and down, particularly given the number of self-help initiatives, where we're in control, we're not relying on weather or commodity prices, that there is significant room for growth. So we're thinking across summer crop, obviously, irrigated summer crop looks solid, and there it looks like there with the heavy clay soils through the summer cropping areas, a rainfall coming through, and that has come through. It's put some moisture in the profile, although it has been dry in some of the western areas. In terms of livestock price recovery, our thinking is that there's an 18-24 month recovery period in front of us. But having said that, again, when you go to the gross margin slides on page 20 that Paul spoke to, you can see that the history of Elders being a livestock business, and particularly cattle business, is a long way from the reality, where livestock now is, in particularly cattle, is something like 8%-10% of our gross margin, as we've developed a number of other areas with our portfolio management approach. So, in terms of winter crop, we're saying average season and we'll see what happens. There tends to be. Paul will talk to the weather maps, as I still refuse to, but there is a theory that the El Niño impacts will dilute coming into autumn and, as we run into winter crop, and, as I mentioned, significant room to grow across many areas in the business. So with that, let's open it up for questions, and we'll hone in on any of the issues that you may consider of interest. Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Evan Karatzas with UBS. Please go ahead. Hi, guys. Just two for me. It just sounds like from that outlook commentary, you are expecting, I guess, earnings growth in FY 2024. Is that the way to sort of summarize those various comments there? I think the way I'd put it is, you know, we're running our 5%-10% through the cycles and, you know, a cycle that has livestock prices going down also has it going up. And our view is we control what we can control. We're targeting 5%-10% through the cycles, and we actually see we're viewing the market in a relatively optimistic and positive way. Okay. All right. Fair enough. And then, just second question for me. I'm trying to understand the big difference between average working capital and the end balance date working capital. You know, how come so much of that working capital unwind or reduction was skewed towards the end of the half? And maybe just ask it, I guess, fully directly: Was any of that unwind driven by increases in receivable facilities or anything like that? No, no, nothing like that, Evan. It was, as discussed at the half, we had accelerating supply chains in the first half, which exaggerated our working capital position at the first half. Also, we had higher livestock prices, so net livestock working capital was elevated through the first half. You know, all, all of those things, you know, they take a while to come through. There's actually additional benefits still to come through from, you know, lower commodity and market prices in FY 2024. The example I'd give there is in receivables, where some of those are deferred from winter crops, so from February, March to, you know, December and January even. And, you know, there's about AUD 125 million in deferred receivables, which are at higher prices than what they would be today. Okay, great. So it's pretty clean, working capital performance there. Okay, thanks. I'll pass it on. Thank you. Your next question comes from Richard Barwick with CLSA. Please go ahead. Oh, good day, Mark and Paul. Just want to clarify a couple of things in terms of some of the moving parts as we go into 2024, particularly from acquisitions. So just want to make sure I'm sort of, if I've got everything right. So Charles Stewart, you talked about that would be AUD 5 million in the first full year, and effectively you've got the best part of a full year into FY 2024. Eureka said AUD 2 million. You would look from Emms Mooney, that you talked about that being 4.3 for a full year, so that's crudely, an incremental AUD 2 million in FY 2024. So that gets me to AUD 9 million. And then I was just wanting to double-check on what you'd said, Mark, on the backward integration moving from 54%-60%. Did you say that should equate to about an extra AUD 5 million-AUD 10 million of EBIT in FY 2024? Are there any other moving parts that I've missed there? Yeah. No, no, you, you're spot on. It's roughly AUD 5 million-AUD 10 million. Obviously, it depends if it's above average, it'll be more of the season- Yeah. B ecause there'll be a greater component of off-patent products being sold. But that's broadly our view. And on the bolt-on acquisitions, as you've rightly done very quickly, the cumulative of currently delivered bolt-on acquisitions is very close to the range. So we're obviously giving ourselves a lot of room to move there. What do you mean very close to the range? Well, with the range I gave of AUD 8 million to AUD 10 million in terms of acquisitions- Ah. - annualized. Yeah. If we do no more for the next twelve months, we're approaching the range. Yeah. Clearly, we've gone- Uh, right. We've gone later. Gotcha. And is there anything else I've missed in that, other than obviously yet to be announced, we yet to be delivered bolt-ons? No, I don't think so. We've said the benefits of our Streamline project, the EBIT and capital benefits are over two years. Although- Mm. For that project Yeah It's likely that they'd fall into this, into FY 2024, equally or more so than FY 2025, where Systems Modernization, the benefits largely come through, start to flow through in 2025. Yeah. Okay. All right, that's helpful. And then the last one I just want to clarify with you, I mean, you talked about, you know, crudely 20% market share, but and- Mm. How do you reconcile that with slide 31, where you talk about Elders 5.8% of the total farm input market, or what would be roughly about 11% of the current addressable market? Yeah. So, the total input market includes fuel and the finance, where we're not obviously players in fuel and tiny players in finance. So that's the whole input market, and our percentage- Yeah Is not of that because we don't do fuel and finance. No, I know, but still, if I restated of just of the 34, I end up closer to 11%, not 20%. Yeah, I'd say, Richard, that, you know, there's a real disparity there, so it's a percentage that we use internally, but there is, within that number, you know, certainly higher market share for something like sheep, but much lower market share for real estate. So it is really just a rule of thumb. Yeah, it is. Yeah. Okay. All right, all right. Thanks, guys. Our next question comes from Philip Pepe with Shaw and Partners. Please go ahead. Hey, guys, thanks for taking the question, and, yeah, well done on hitting your guidance. Look, a lot, a lot of my questions have been answered. Perhaps, any commentary on how year-to-date has begun? As you mentioned earlier, livestock prices continued to fall since September, but how is the first sort of six or seven weeks performing, for the company? Yeah. Thanks. Thanks, Philip. I'd describe it this way. I'll start with livestock. And you are correct that prices have been a little softer. Volumes were very close to budget in October. Outside of that, yeah, most other business units were in line with budget. We have seen some, you know, some softness in retail sales, but not of any sort of magnitude. But as Mark suggested, I'd say a slow start to the summer crop in dry land areas. If you do look at the BOM, in terms of the Bureau of Meteorology, in terms of outlook for the East Coast, it is somewhat improved from what it was previously, with a three-month outlook of median rainfall. So, you know, I think that that is a theme that is one to watch. Understood. And I guess, just following on from the earlier question, as we stand at the moment, you've, you've given medium-term guidance, favor, but you are expecting EBIT to be up somewhat, in FY 2024, not backwards because of potential droughts or livestock prices, et cetera, given what we know today. Yeah. So, I'm Paul, we're not honing in on 2024 because we can't. So we're sticking to our 5%-10% through the cycles. And if we look at the areas that we control ourselves, like backward integration, bolt-on acquisitions, all the efficiency projects, we're very confident that we'll be delivering those as committed. In terms of growth and, you know, timing of rainfall, et cetera, I mean, we can't just punt and make up a view. But through the cycles, as we see El Niño fade away, and we go back through another cycle over the next three years, we're confident that we can deliver that 5%-10% at above 15% return on capital. Excellent. Thank you. Well done. Your next question comes from James Ferrier with Wilsons Advisory. Please go ahead. Hi, Mark and Paul. Thanks for your time today. Can I ask a question for Paul? Firstly, in your earlier comments, you referred to a target, a cost out target for FY 2024 of AUD 10 million to... I guess, help combat some of the inflationary pressures you're seeing. Is that a part of the Systems Modernization cost out benefit, or is that just a completely separate goal that you have for the business? No, it's a completely separate goal, you know, focused on discretionary spend or spend that we, you know, can switch off easily without, you know, disrupting the transformation that's happening in the business. Yep. Okay. And then, probably related, in a related sense, the change or any potential change in STI-type payments would be excluded from that? That's more of a structural cost out you're looking for? Yeah, a-absolutely. Okay, thanks. And perhaps, Paul, while you do have the floor, so a couple of comments you made about the cash flow, for FY 2024, and in particular, the capital release from the systems modernization program. Is it fair to say that you would be targeting that sort of normal 90% conversion, operating cash or NPAT to operating cash flow, and then a AUD 50 million-AUD 80 million release on top of that? I think that's, I think that's reasonable, James. Yeah, absolutely. Yeah, we expect. Yeah, if I was to guess, I'd say, you know, cash conversion, there's no reason why FY 2024 wouldn't be similar to, to FY 2023. Yeah, and I think, James, it's worth noting that the major internal projects, we've ensured that we're not double-counting benefits. And so the Streamline benefit of capital reduction, et cetera, is separated out from the SysMod benefits, even though they're running parallel. Yeah. Yep, got it. That makes sense. And Paul, also going back to one of your earlier remarks there, you said something about not expecting cash tax, as in operating cash flow, cash tax payments until FY 2025. I think I might have misheard you, though. Yeah, we still have deferred tax assets. So, whilst we're recognizing company expense, company tax expense for Elders Limited, it's offset against the deferred tax asset. And, you know, the timing of when we commence physically paying tax for Elders Limited is somewhat uncertain, but there won't be material payments in FY 2024. Okay. Yeah, that, that's helpful. And then the last question from me, slide 22, you're talking about cost drivers there. Property and lease costs increased by just over AUD 3 million in the year. That includes the right-of-use assets, and, or the right-of-use depreciation, but the right-of-use depreciation YoY increased AUD 10 million. So ex that other property and lease costs went backward AUD 7 million. Can you shed some light on why that would be the case? Yeah, I'll take that one offline. Yeah, I'd need to go underneath that and look further into that, James. Yep. Okay. Thanks, Paul. Appreciate your time. Thank you. Your next question comes from Ben Wedd with Macquarie. Please go ahead. Hi, Paul and Mark. Thanks for taking the question. Just on the first question around CapEx, you've said the Systems Modernisation will be, you know, sort of in the range of AUD 26 million for FY 2024. So, should we still think about CapEx as going up at a total level by AUD 18 million or so, given the Systems Modernisation spend in 2023? Can you just repeat the number there? Was that AUD 18 million? Uh, AUD 18 million. So just double. Yeah. Yeah. We expect the full CapEx for wave two is estimated at AUD 40 million-AUD 45 million. Yeah. Yeah, I'm not sure where the AUD 18 million comes from there. AUD 18 million, sorry. This is a peak wave. Yeah. I'd add as well, that this is the most significant wave in this project. So, certainly, you know, waves three and four will not be of any sort of magnitude similar to wave two. Yep, got it. Thank you. And then just on the Charles Stewart acquisition, which you sort of previously disclosed, you know, AUD 5 million of earnings in the first 12 months. Is that sort of assuming current levels of livestock prices or and volumes, or you're assuming some recovery there? No. So that range that I gave was adjusted for livestock prices for FY 2024. Got it. Thank you. Then just on the Killara feedlot as well, if I can squeeze another one in there. You've referenced higher grain costs, and higher feed costs there, as well as a lot of loan costs for the cattle. What do you sort of see the grain and feed costs doing in 2024? Or we cannot really forecast that. Yeah. So Killara produces a lot of its own feed, so it has some insulation to whatever the grain costs might be. They have blended rations. I think in terms of FY 2023, the major impact on that business was around declining livestock prices, which impacted the ultimate margin achieved on backgrounding cattle. But I think the outlook for Killara is pretty favorable. Yeah, it is. It is. And there's been, in terms of the producing our own forage in particular, we've invested in pivot irrigation systems that has made that more efficient as well. And as Paul says, with the reduction in cattle prices, the COGS in the margin has extended, as... And we've also expanded our grass-fed program with Coles and Woolworths. Got it. Thanks, guys. That's all from me. Once again, if you wish to ask a question, please press star one on your telephone. Your next question comes from Jonathan Snape with Bell Potter. Please go ahead. Jonathan Snape, your line is now live. Please proceed with your question. Oh, sorry, I had myself on mute. Hey, guys, can I just ask a couple questions on these system modernization charges? And I'm looking at your slide there. I think it was what? 20 whatever. So the component that's gonna be capitalized and component is gonna be expensed by the looks of it. Am I reading that right, that, you know, there's an aspect that's gonna come through your P&L next year and your, I'm assuming in your network charges, that AUD 16 million-AUD 18 million type number? Yeah. So in terms of capitalized costs, John, so you can work on sort of 60% capitalized, 40% non-capitalized over the life of the project. Then within that, in terms of the OpEx, there'll be a portion that will be underlying, so where it's recurring type expenditure and a portion that's non-underlying. So we've put the 16-18 there in non-underlying. The reality will be that some of those costs will fall that way, but the capitalized costs are typically costs associated with the system integrator and Elders employees that are full-time on the project. Okay, but I, what I'm trying to understand is the AUD 16million-AUD 18 million that's gonna flow through the P&L, I'm assuming most of it next year, as a non-underlying charge. Is there an aspect of OpEx in underlying that's gonna be there in, like, 2025 and 2026, that I have to kinda be on top of? And then you're gonna start depreciating all that CapEx, so I assume over a five- or six-year period. Yeah, the depreciation will be more like 10 years on that CapEx. Yes, there'll be a portion of underlying costs, so things like license fees, but ultimately there'll be a runoff of, you know, the previous systems' license fees as well. So-... You know, it's there. There's, yeah, there's a tail of runoffs and new costs coming on board. Okay. So if I went back and did that waterfall episode, I think a few people have been trying to do. I mean, obviously, you said your acquisitions are AUD 8 million-AUD 10 million. There's your costs out that you talked of are AUD 10 million. Some Backward Integration of AUD 5 million-AUD 10 million. There's a few other things in there, I think that add up to five or nine. Then there's gonna be some additional costs in Systems Modernisation that, looking at it year-on-year, looks like it's anywhere from AUD 13 million-AUD 15 million bucks. As a, you know, maybe a one-off next year, and then drops away in 2025. And then there's the, the inflationary cost pressures, so I think you're calling out are probably gonna be about AUD 10 million as well as in the controllables that you guys have. Is that an accurate description of that aspect of it, if you're trying to do a waterfall? Yeah, I think close enough. Yep. Yep. And then after that, all I've got is, like, livestock's a headwind, summer crop's a headwind, pricing in Ag Chem. So it looks like it's probably turned from the worst and starting to go maybe the right way. And then, you know, pray to the rain gods in March. Yeah. All right. Great. Thank you. Yeah. Thank you. We've got a hard close at 10:30 Adelaide, so maybe one more question. Thank you. There are actually no further questions at this time, so I'll hand back to Mr. Allison for closing. Thank you. Okay. Oh, thank you very much. Thank you, thank you all for coming into the call, and look forward to speaking with you in the one-to-one discussions. But, the summary being really tough market conditions on multiple fronts and a result which is the second highest for Elders over the last 10 years, at a 16% EBIT and a very strong cash conversion. So, we'll look forward to speaking with you all shortly. Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.