Investor Presentaiton

Sheep and Wool National Sheep flock Million heads Shorn wool production Thousand tonnes greasy NTLI and EMI +1% Ac/kg cwt & Ac/kg clean +3.2% 74 72- +3% 350 1 650 1,800 1,600 70- 600 +4.3% 300 68 66 64 62 250 450 2014 2015 2016 2017 2018f 2019f 2014 2015 2016 2017 2018f 2019f 1,400 550 1,200 500 1,000 800 2014 2015 2016 2017 2018f 2019f 2020F " Lambs (LHS) Wool (RHS) The national flock is expected to increase by 3% in 2018-19 to 72m, representing a third continuous year of expansion. Most of the increase in the Australian flock is expected to be in sheep meat breeds. High lamb prices and assumed average seasonal conditions will provide producers with an opportunity to increase flock numbers. Wool production is forecast to grow slowly, on the back of increased segmentation of the industry. In 2018-19 shorn wool production is forecast to be 350,000 tonnes, a 1% increase from 2017-18. ☐ ☐ Sheep and lamb prices are forecast to increase by a further 3.2% in 2018-19. This reflects strong competition at saleyards from restockers and processors, driven by strong demand in major export markets, particularly China. The EMI is forecast to increase by another 4.3% to $1,700 in 2018-19. This has been driven by global consumer demand for woollen apparel. Source: ABARES Agricultural Commodities Outlook, March 2018 Elders 38

View entire presentation