FY23 Annual Meeting – Presentation Slides

Allied Farmers Limited
210 Broadway, Stratford 4332, New Zealand
Phone +64 6 765 6199
alliedfarmers.co.nz
ANNUAL SHAREHOLDER MEETING
23 November 2023

Allied Farmers Limited
210 Broadway, Stratford 4332, New Zealand
Phone +64 6 765 6199
alliedfarmers.co.nz
Agenda
1. Chair’s Introduction
2. Presentation to Shareholders
3. Shareholder Discussion
4. Resolutions
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Allied Farmers Limited
210 Broadway, Stratford 4332, New Zealand
Phone +64 6 765 6199
alliedfarmers.co.nz
•Allied Farmers reported a Net Profit After Tax (NPAT) of $3.338m (+16.06%) in FY 2023 vs. $2.876m in FY 2022
•The increased FY23 profit was driven by increased returns from NZ Farmers Livestock (NZFL) - largely from meat processing - but offset
by lower transaction and performance fees from NZ Rural Land Management (NZRLM).
•Allied Farmers’ earnings per share (EPS) increased by +16.1% to 11.59 cents per share (FY22 9.98 cps), and Net Tangible Assets (NTA)
per share, based on 67.8% direct ownership of NZFL and 100% ownership of NZRLM, equals $0.21 per share (FY22 $0.48 per share).
FY 2023 Results Commentary and Operational Update
Five Year Earnings Summary:
Financial Year Ending 30 June
FY2023FY2022FY2021FY2020FY2019
Allied Farmers Net Profit After Tax (NPAT) - attributable to Allied Farmers shareholders - $ 000’s3,3382,8762,0217671,258
Allied Farmers Earnings Per Share –cents per share11.599.988.574.307.58
Allied Farmers Dividend Per Share –cents per share---1.22.0
Comprising:
NZFL incl. Finance -earnings attributable to Allied Farmers shareholders* - $ 000’s
2,4071,7221,3701,1751,764
NZRLM - earnings attributable to Allied Farmers shareholders -$ 000’s1,1381,6241,152--
Asset Management (Legacy Finance Co’s) - $ 000’s-----
Allied Farmers Holding Co (Parent)** - $ 000’s(207)(470)(501)(408)(506)
Allied Farmers NPAT – attributable to Allied Farmers shareholders - $ 000’s3,3382,8762,0217671,258
* Recognises Allied Farmers’ 67.8% NZFL ownership and 52% Redshaw Livestock ownership.
** In FY 2023 from Parent Operations loss of $779,000 (FY 2022: $699,000) disclosed in Note A1 of the Financial Statements, tax benefits of $572,000 (FY2022: $230,000) received by the Parent
arising from tax losses are deducted.
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Allied Farmers Limited
210 Broadway, Stratford 4332, New Zealand
Phone +64 6 765 6199
alliedfarmers.co.nz
FY 2023 Results Commentary and Operational Update
•NZRLM is the external manager of NZX listed New Zealand Rural Land Company (NZL). NZL currently owns 14,847 hectares of rural
land and forest estates, an increase of 3,137 hectares during FY23.
•The value of NZL’s portfolio increased +0.94% in FY23 compared to +16.7% in FY22. As a result, NZRLM’s income from performance
fees was lower in FY23 than FY22. NZL also completed fewer acquisitions in FY23 than FY22 leading to reduced transaction related
income.
•Allied Farmers currently owns 2,803,617 NZL shares (~2% of NZL shares on issue). 50% of these shares are restricted (escrowed) for 5
years from the date of issuance.
•On 27 March 2023 Allied Farmer’s acquired the 50% of NZRLM not already owned, having exercised its call option on 19
December 2022. The purchase price was $8.3m as determined by an independent valuation undertaken by PwC in accordance
with the terms of the call option agreement. The purchase price was satisfied by the payment to the vendors of $6.55m of cash
(funded by a loan from Heartland Bank), and the transfer to the vendors of 1,800,227 NZL shares owned by Allied at their 20-day
volume weighted average price prior to completion date of $0.9721 per share, being a total of $1.75m.
•Allied Farmers' total acquisition cost for 100% of NZRLM is $10.8m ($2.5m for the initial 50% in December 2020, and $8.3m for the
remaining 50%), compared to the PwC valuation of $16.6m. Coupled with the return on investment to date, this has been a
significantly value accretive investment for Allied.
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Allied Farmers Limited
210 Broadway, Stratford 4332, New Zealand
Phone +64 6 765 6199
alliedfarmers.co.nz
FY 2023 Results Commentary + Operational Update
•Each of the NZ Farmers Livestock business areas – Livestock Agency, Veal and Finance – improved on the prior year to
achieve consolidated earnings 41.1% ahead of the prior year.
•That said, the performance has been overshadowed by the loss of our livestock agent Mark Howells in a road accident in
June. Directors and staff reiterate our deepest sympathies to his family and friends.
•The livestock agency business was again challenged, with difficult weather, some reduction in meat and dairy market
prospects, the impact of stock processing space constraints, and plenty of grass through the summer making for an
unusual year.
•The business’s primary exposure to Cyclone Gabrielle was via our interest in Redshaw Livestock, and it is notable that this
team performed extremely well as it supported clients through the major disruptions involved.
•While slightly behind expectations, the agency business saw encouraging progress on yard market shares, and continued
to progress the online auction and other digital developments that are increasingly important tools for our team and
clients, and future-proof this core area of our activity.
•The veal business, reflecting good product market returns, again returned an excellent result, appreciably ahead of both
expectations and last year.
•The NZ Farmers Livestock livestock financing activity combines a referral business funded by Heartland Bank and short-
term bull, lamb and other livestock financing conducted with the support of our main business banker.
•We are pleased with progress across all aspects of this business and contemplate ongoing growth in lending, and
important support of clients in the challenging farming environment.
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Allied Farmers Limited
210 Broadway, Stratford 4332, New Zealand
Phone +64 6 765 6199
alliedfarmers.co.nz
FY 2023 - Tax Loss Update
Allied Farmers Available Tax Losses (2018 – 2023)
•Allied Farmers has a valuable tax loss asset which was the result of legacy investments in the finance sector. During FY23
Allied obtained a Private Ruling from Inland Revenue under s 91E of the Tax Administration Act 1994 that significantly
increased these tax losses - unrecognised back to FY2021.
•As a result of the ruling, Allied Group unrecognised deferred tax assets comprise unused tax losses as at 30 June 2023
total$180,785,199 gross (2022: $36,288,403).
•The ability to utilise the tax losses is dependent on meeting shareholder continuity requirements of prevailing tax
legislation, and the Allied Farmers’ Board is acutely aware of maintaining both business and shareholder continuity to
preserve this valuable asset for shareholders and any future transactions will be structured with this in mind.
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Allied Farmers Limited
210 Broadway, Stratford 4332, New Zealand
Phone +64 6 765 6199
alliedfarmers.co.nz
Group Structure
Allied Farmers Rural
Ltd.
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NZ Farmers Livestock
Finance Ltd.
Redshaw Livestock
Limited (52%)
Farmers Meat Export
Ltd.
67.1%
52.0%
100.0
%
100.0
%
100.0
%
Manage
100.0
%
•Allied Farmers full corporate structure is detailed in appendices in the presentation provided to the NZX
this morning.
•The Directors are looking to amalgamate legacy companies to simplify the corporate structure in FY2023
and are working with Deloitte at present on this matter alongside the Company’s tax loss position.

Allied Farmers Limited
210 Broadway, Stratford 4332, New Zealand
Phone +64 6 765 6199
alliedfarmers.co.nz
Governance Structure
Philip was appointed a Director of Allied Farmers Limited in
December 2005 and is Chair of New Zealand Farmers
Livestock Limited. As a former Agricultural Research Scientist,
and with a broad farming background, he has extensive
experience in the agricultural sector.
He is a shareholder and Chair of the Argyll Dairy Farm group
of farms in Otago, a partner in the family dairy farm in
Taranaki, and has interests in farm forestry. He is a trustee of
The Massey-Lincoln and Agricultural Industry Trust, and is an
Independent Director of dairy farming business, Te Rua O Te
Moko Limited.
He is a former director of PKW Farms Ltd, Kiwi Cooperative
Dairies Limited, Kiwi Milk Products Limited, Dairy Insight,
Dexcel, and NZAEL Limited. Mr Luscombe is an independent
director. He has the following qualifications: BAgSci(Hons).
Richard was appointed Managing Director of Allied Farmers
Limited in April 2023. Richard is one of the founders and
executives of New Zealand Rural Land Management and
NZX-listed New Zealand Rural Land Company.
He was previously a consultant at global investment
management firm Elevation Capital Management, where he
focused on special situation investments.
Richard has been involved in a number of industries including
tourism, agriculture/ biotechnology and fine art auction
houses – in functions ranging from finance, to marketing,
strategy, strategic review and implementation.
Richard was previously on the board of the Institute of Finance
Professionals New Zealand (INFIZ) and was recognised within
the financial services industry by being awarded the INFINZ
Emerging Leader Award 2017. Richard is not an independent
director.
He holds a BCom in finance and economics from the
University of Canterbury, with post-graduate certificates in
value investing from Columbia University (New York), and
agricultural businesses and leadership from Harvard Business
School (Boston).
Shelley was appointed a Director of Allied Farmers Limited in
November 2022, and Chair in April 2023. Prior to her Director
appointment, Shelley was the Independent Chair of NZ
Rural Land Management GP and LP.
Shelley is a Company Director and Investor with 30 years’
experience across a variety of industries. She Chairs
PaySauce and TaxGift and is a director of Heartland Bank,
Hobson Wealth, Partners Life, and 9 Spokes.
Previous directorships include Paymark, JB Were and The
Icehouse. Shelley has a Bachelor of Commerce.
Philip Luscombe
Independent Director
Richard Milsom
Managing Director
Shelley Ruha
Independent Chair
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Allied Farmers Limited
210 Broadway, Stratford 4332, New Zealand
Phone +64 6 765 6199
alliedfarmers.co.nz
ASM Resolutions
# 1 Director re-election: That Richard Milsom be re-elected as Managing Director of the Company.
# 2. Auditor’s fees: That the re-appointment of RSM Hayes Audit as the auditor of the Company be
recorded and the Directors be authorised to fix the auditor’s remuneration for the ensuing year.
# 3. Other Business: To consider any other matters that may lawfully be considered at the Meeting.
Resolutions & Other Business:

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Allied Farmers Limited
210 Broadway, Stratford 4332, New Zealand
Phone +64 6 765 6199
alliedfarmers.co.nz
ASM Proxy Votes
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Allied Farmers Limited
210 Broadway, Stratford 4332, New Zealand
Phone +64 6 765 6199
alliedfarmers.co.nz
Appendix #1: Allied Farmers Full Corporate Structure - as at
23 November 2023 - Pre-Amalgamations
Allied Farmers Rural
Ltd.
NZ Farmers Livestock
Ltd. (67.1%)
Rural Funding
SolutioNZ Limited
NZ Rural Land
Management GP Ltd.
(100%)
NZ Rural Land
Management Limited
Partnership (100%)
ALF Nominees Ltd.
Allied Farmers (New
Zealand) Ltd.
Clearwater Hotel
2004 Ltd.
QWF Holdings Ltd.
Lifestyle of New
Zealand
Queenstown Ltd.
LONZ 2008 Ltd.
LONZ 2008
Holdings Ltd.
Allied Farmers
Property Holdings
Ltd.
NZ Farmers
Livestock Finance
Ltd.
Saleyard
Management
Limited ( 33%)
Redshaw
Livestock Limited
(52%)
Farmers Meat
Export Ltd.
UFL Lakeview Ltd.
5M No 2 Ltd.
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Allied Farmers Limited
210 Broadway, Stratford 4332, New Zealand
Phone +64 6 765 6199
alliedfarmers.co.nz
www.alliedfarmers.co.nz
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