Morning, everyone. My name is Ian Wilton, and I am the Chair of your company. As it is now past 10:00 A.M. Adelaide time, I'd like to welcome you to the 2022 Annual General Meeting of Elders Limited. I'm advised by the company secretary that we have the required quorum for the meeting to proceed. I therefore declare the 2022 annual general meeting of Elders open. Welcome, thank you for attending. We meet today in person and online. I'd like to begin by acknowledging the Kaurna people, traditional custodians of the land on which we gather today, and pay my respects to their elders, past and present. I extend that respect to Aboriginal and Torres Strait Islander peoples here today. In the spirit of reconciliation, Elders Limited acknowledges the traditional custodians of the country throughout Australia and their connections to land, sea, and community.
Before commencing the formal business of the meeting, I would like to introduce my fellow directors and our company secretary. With me on the stage this morning are, from my far right, Raelene Murphy. Raelene was elected to the board last year and is a member of each board committee. Robyn Clubb. Robyn was reelected to the board last year and is Chair of the Audit, Risk, and Compliance Committee and a member of each other board committee. Mark Allison, our Managing Director and CEO. From my far left, Matthew Quinn. Matthew is a member of each of our board committees. From the beginning of next year, Matthew will also Chair our Safety and Sustainability Committee. Diana Eilert. Diana is Chair of the Remuneration and Human Resources Committee and a member of each other board committee. Peter Hastings, our Company Secretary.
If appropriate, during the course of the meeting, I may call upon specific directors to address questions you have that relate to their specific skills. Marcus Laithwaite of PricewaterhouseCoopers, the company's auditor, is also present to answer any questions you have relevant to the conduct of the audit and preparation and content of the auditor's report. A number of Elders senior executives are also with us today. Welcome to you. I encourage shareholders to mingle with your directors and senior executives after the meeting and chat with them about the company's affairs. I'll now turn to the matters of business. Voting and questions are now open. Today, Elders host its first hybrid AGM. We're very pleased to be able to join you in person for the first time since 2019 and to continue to host our meetings online to connect with as many shareholders as possible.
Our meeting today involves five items of business and four resolutions. I will read all resolutions as they are set out in the notice of meeting. They will also be displayed on the slides visible in the room here and in the webcast, along with tallies of the votes received before the meeting from proxies and direct voting. All resolutions will be decided by poll. The polls for all resolutions will close at the conclusion of questions. Questions on all items of business and matters relevant to shareholders as a whole will be addressed in the Q&A session towards the end of the meeting. It is my intention to vote all open votes available to me in favor of all items. I appoint Stacey Spence from Boardroom Pty Limited as returning officer.
The returning officer's duties are to arrange for the collection of all votes, having regard to the voting exclusions set out in the notice of meeting, and to advise me of the results of the polls. Final voting results will be released to the ASX following the conclusion of today's meeting. Voting will remain open until I declare the polls closed at the end of the question and answer session. Only shareholders, their attorneys, proxyholders, and authorized company representatives are entitled to vote on each poll. If you are joining us online, voting takes place on the Lumi platform through which you have joined this meeting. To submit your votes online today, you must be logged in using your voter access code. If you're logging into the meeting as a guest, you are unable to vote.
The voting icon is the three-bar icon that appears at the top of your screen. Please refer to the slide displayed on your screen for visual instructions. To cast your vote, simply elect one of the voting options. Your vote will be automatically recorded. You do not need to press Submit or Send to lodge your vote. To change your vote, simply select a different option to override your original selection. If you choose to vote early in the meeting and you then experience technical difficulties after you've voted, your vote will still be received and counted in the poll. Those voting in the room today have been provided with a Lumi handset. If you experience any difficulty using the handset, please signal to one of the Boardroom representatives in the room today, and they're mainly at the rear. They're here to assist you.
On the handset screen, you will see the list of resolutions. Select the resolution you would like to vote on using the wheel to scroll and green square to select. Your selected resolution will appear on the handset screen. Press the green square to bring up the voting options. Press one to vote for the item, two to vote against or three to abstain. Use the green square to move to the next resolution or the red triangle to return to the full list. Votes cast today will be added to those already cast by shareholders who voted before the meeting using the direct voting facility. Your vote may be changed at any time until I declare the polls closed. Please note that if you have already voted and choose to vote again today, it is your final vote during the meeting that will be counted.
I would like to remind you that this is a shareholders' meeting. Only shareholders, their attorneys, proxies, and authorized representatives are entitled to speak. If you have joined us online and would like to ask a written question, select the Messaging tab at the top of your screen. Type your question into the box and press the arrow symbol to send. Alternatively, you may ask your question verbally by clicking the Request to Speak button at the bottom of the broadcast window. A new page will be displayed, prompting you to confirm your name and enter the topic of your question. Click Submit Request and follow the instructions to allow access to your microphone and connect to the queue. For those in the room today, we have a microphone located towards the front of the room.
If you wish to ask a question, please make your way to the microphone when we open the Q&A session later in the meeting. Please then show your voting handset or red shareholder card. When asking verbal questions, either online or in the room, please start by stating your name and whether you are a shareholder in your own right or an attorney, proxy, or corporate representative of a shareholder. After the final item of business, we will endeavor to answer all questions and read out the comments that have been submitted. I'm sure you will all be courteous and respectful when asking your questions. I'd like to remind you that shareholders are attending today's meeting to discuss matters of interest to shareholders as a group.
If you have questions specific to your own shareholding that are not relevant to the group, we are happy to take your questions after the meeting, either through Boardroom or our Company Secretary. I have been advised by the Company Secretary that the notice of meeting has been properly circulated. With your consent, I will take the notice as read. A copy of the minutes of last year's AGM, which was held on Thursday of the 16th December, 2021, is available for inspection by shareholders. If you wish to inspect the minutes, please contact our Company Secretary after the meeting. Before the financial report is tabled, Mark and I would like to make some comments. Australian agriculture has experienced another year of solid growth on the back of good seasonal conditions, strong commodity prices, and record demand for Australian produce.
Elders, with its expanding national network, has played an integral part in this growth. This time last year, we were working through a period of unprecedented challenges and disruptions, which included the impact of the COVID-19 pandemic and supply chain disruptions. I'm pleased to note that Elders has been able to manage these challenges to our people and supply chains, allowing us to continue to serve our customers successfully. Although many of these challenges have lessened somewhat in their impact, we continue to maintain a safety-first approach to protecting both our customers and employees as we continue to reconnect with customers and industry. Our commitment to supporting and driving the growth of agricultural production across the country has allowed Elders to record an exceptional financial result.
For the year ended 30th September 2022, we recorded an underlying profit before tax of $223.5 million, which is up 42% on the previous year, declared a total dividend for the year of AUD 0.56, a 33% increase from the AUD 0.42 paid in respect to the previous year. Our Managing Director and CEO, Mark Allison, will speak further on the company's operational achievements in his address. However, from the board's perspective, the results demonstrate Elders' ability to leverage excellent seasonal and market conditions in accordance with the Eight Point Plan to create value for shareholders. Reinvestment plays an important role in Elders' growth strategy. Earlier in the year, Elders announced its new wool handling business, which will be launched mid-next year.
In making this $25 million investment in Australian wool, which is the largest single investment in wool handling this century, we stand with our customers to deliver the best sustainable wool supply globally. This is a long-term commitment to Australian wool growers and a clear demonstration of our confidence in the future of the sheep and wool sector. We're continuing a legacy for the next generation to come. During the course of the financial year, we acquired 13 businesses in 10 new locations with 115 new employees, improving our geographic spread to service more customers. The business development pipeline for the coming year is encouraging, with numerous successful businesses expected to join Elders in the next 12 months and furthering our growth.
As we announced yesterday, to further our geographic diversification, we have also taken an 11.3% interest in PGG Wrightson Limited, the New Zealand-based rural services business, which was acquired by private sale. Elders does not currently intend to initiate a proposal to acquire control of PGW. It does support our diversification strategy as part of our pure-play agribusiness. We continue to invest in our people. In a challenging labor market, where demand for talent is increasing and organizations across most sectors are facing difficulties in acquiring quality employees, I commend our leadership team for their ongoing commitment to attracting and developing the very best people in our business. Our people represent our most important assets. It was very pleasing that Elders achieved all-time high results in our employee effectiveness survey, well above the global high benchmark, high performing benchmark.
In addition, adherence to our One Elders values of integrity, accountability, teamwork, innovation, and customer focus has led to Elders again being ranked as the most trusted agribusiness brand in Australia according to independent research. I would like to thank all Elders people for their contribution to making Elders a great place to work and for your tireless efforts supporting our year. Elders also made considerable investments in the sustainability of the business this year, as reported in our third sustainability report, which is now available online at the Investor Centre. We continue to make progress on our ambitions to be a leader in sustainability for Australian agriculture and an adopter of the best governance and sustainability standards practiced in corporate Australia. I now turn to the recent announcement of Mark Allison's planned retirement. This will occur on or before November next year.
The board is overseeing the search and evaluation process of both internal and external candidates for his replacement. Mark's retirement will conclude many years of outstanding leadership at Elders. He originally joined Elders as a non-executive director in December 2009. Between July 2013 and 2014, he served as Elders Chairman, then Executive Chairman, before being appointed Managing Director and Chief Executive Officer in May 2014, at a time when Elders was in significant financial distress. His outstanding leadership brought purpose and direction both to the senior management team and the company as a whole, and drove the creation and execution of the first Eight Point Plan in 2014, which has been instrumental in returning Elders to a pure-play agribusiness. Since 2014, Elders has grown from a market capitalization of around AUD 50 million to where it is today.
By bringing the business back to its roots in agribusiness, implementing strict financial discipline, and reinstating a customer and safety-focused culture within the business, Elders has grown to what today is a company delivering excellent shareholder returns and proudly representing agriculture as the safe and profitable asset class that it can be through all seasons. He has ensured the business has the foundations of a strong and capable leadership team, more recently augmenting the team with outstanding individuals equipped to carry on the Elders legacy and take it into the future through a new and exciting phase of growth. He will leave an indelible mark on this iconic Australian business. On behalf of all shareholders, I would like to thank Mark wholeheartedly for his leadership and dedication, and to wish him every success for the future once he leaves us next year.
I would also like to say thank you to my fellow directors for their contribution and all shareholders for your continuing support. With this, I will pass over to our CEO, Mark Allison.
Thank you, Ian. Great to be here. Good morning, thank you to everyone for joining us in person and online today for our 2022 annual general meeting. I'm pleased to be in a position to once again share with you that the business has performed remarkably well this year, making significant progress on its strategic ambitions. In partnership with our customers, we've continued to contribute to the thriving agriculture sector. I'm proud that Elders has maintained its position as rural Australia's most trusted agribusiness by farmers, according to Roy Morgan Brand Trust Research. Elders is a trusted partner to Australian farming enterprises, delivering products, services, and advice to assist them to improve the productivity of their businesses.
We occupy this privileged position as a result of the passion and commitment of our industry-leading workforce, which is there for our customers and communities in every season. In the second year of our third Eight Point Plan, we've continued success with the achievement of outstanding financial results. In FY 2022, our underlying earnings before interest and tax were AUD 232.1 million, an increase of some 39% on the previous year. Steady growth across all of our core product and geographical areas has contributed to this result, which is a testament to our business improvement initiatives. Elders' performance this year reflects our continued commitment to improvement and growth in accordance with our Eight Point Plan, coupled with excellent seasonal and market conditions. We have made both product and geographical strategic acquisitions and continue to grow our business organically across the country.
Our ongoing rural products backward integration strategy and execution of supply chain efficiency initiatives have continued to deliver excellent margin growth. We have not compromised our unflinching financial discipline in achieving this growth with our commitment to cost and capital efficiency reflected in the underlying return on capital of 26.2%, up from 22.5% in FY 2021 and outperforming our benchmark target of 15% set in our Eight-Point Plan. Safety remains fundamental to everything that we do at Elders. Elders reported six lost time injuries in FY 2022. Any harm to our employees is unacceptable, and we strive for a zero-harm workplace. At Elders, we live by the mantra that nothing is so important that it cannot be done safely.
Our commitment to safety has been backed by a $3.3 million investment in network safety initiatives, including sufficient chemical storage controls, manual handling controls and upgrading racking. Elders is also trialing improved in-vehicle safety systems. This year, with the assistance of our employee wellbeing committee, we reviewed our current risk controls around psychosocial hazards and trained selective staff in mental health first aid. This initiative is particularly important during a time when extreme weather conditions are affecting rural and regional communities in parts of Eastern Australia. In line with our commitment to the health of our rural communities, this year, the Elders network allocated some $2.7 million to sponsorships and donations, directing much needed funds to local community groups, agriculture industry, innovation and health and wellbeing initiatives.
We remain firmly on track with the five strategic priorities set out in our Eight Point Plan of winning market share, capturing more gross margin, strengthening and expanding our service offerings and optimizing our feed and processing businesses, and further developing our sustainability program. I'm pleased to share that we have made significant inroads across all facets of our sustainability strategy. Our dedication to managing our environment, environmental impact deepened in 2022, with Elders joining the Australian Packaging Covenant Organisation and undertaking analysis of our waste management approach with the objective of developing a national waste management strategy. We are also investing in the wool sector, as Mr. Wilton mentioned, announcing the launch of Elders Wool Handling, which will significantly improve the wool supply chain and offer end-to-end service for clients with great efficiency and greater ease.
Our three enablers for the third Eight Point Plan include our systems modernization program, developing the best people in a safe and inclusive environment, and maintaining unflinching financial discipline. Reinvestment in our people, business and industry is an important part of ensuring that Elders continues to grow and thrive. Systems modernization is on track to change our ways of working to enable better customer experiences and achieve significant operational efficiency. Early in 2023, Elders will unveil a brand new website which will deliver a seamless and convenient experience with the customer at the center and e-commerce capabilities in the future. The Elders values of teamwork and innovation will be brought to the forefront with a transformed internal digital landscape through a new intranet that will significantly improve our communications and operations.
Our core business systems will be evolving, future-proofing us, and laying solid foundations to maintain growth and strong relationships with customers, community and with our people. Pleasingly, this year, Elders achieved all-time high records in our employee effectiveness survey and above the global high-performing benchmark. I'm encouraged by these results and motivated to ensure that they are maintained and improved upon. Elders has once again generated excellent results for you as shareholders in 2022 and deepened its position as the most trusted partner for Australian farmers. This is a credit to the leadership group in the business, and I thank them for their commitment to our people.
As Mr. Wilton mentioned, you would all be aware that my planned retirement was announced at the time of the full year financial results, signaling that FY 2023 would be my last year as CEO and the conclusion of almost 10 years at the helm of Elders. As this is my last AGM speech as Managing Director and CEO of your company, I'd like to say that it has been a privilege to lead this iconic Australian business and brand. There is no business quite like Elders. It holds a unique history and plays an important part in rural Australia, assisting Australian farmers to be the most productive in the world.
As I speak to you today, there's one more year left of that plan, and the tremendous results we've achieved while executing it has demonstrated that we have the right infrastructure, people and resource prioritization in place to deliver what we have set out and now and into the future. Our FY 2022 results show that we are on track, and our pipeline of projects give assurances that our business will continue to grow and strengthen in the right way. It has been both an honor and a pleasure to lead Elders to where we are today, thriving as a pure play agribusiness integral to rural communities, employing the next generation of agricultural professionals and to delivering value to its shareholders. Thank you.
Thank you, Mark. Let's turn now to the first item of business. I table the financial report for the company, together with the director's report and the independent audit report for the year ended thirtieth of September 2022. I note there is no formal resolution for this item. Shareholders are welcome to ask questions. As noted earlier, all questions will be addressed later in the meeting. Now to the resolutions before the meeting. The first resolution relates to the Elders' 2022 Remuneration Report, which can be found on pages 51 to 69 of the annual report. This resolution is displayed on the screens in the room and in the webcast. It is the same as the resolution in agenda item two of the notice of meeting.
The resolution states that the Remuneration Report, which forms part of the Directors' Report for the 12-month period ended 30 September 2022, be adopted. Corporations Act provides that the vote on this resolution is advisory only and does not bind the company or its directors. Elders and the Elders board respect the views of our shareholders. We welcome your feedback about the Remuneration Report. If 25% or more of the votes cast are against this resolution, the Remuneration Report will receive what is called a first strike. If that happens, a resolution to spill the board will be included in the 2023 Notice of Annual General Meeting, as required by the Corporations Act. Any votes by key management personnel and their closely related parties will be disregarded, except for votes exercised as a proxy for other shareholders who are entitled to vote.
I now hand over to Robyn Clubb, who will chair the meeting for agenda item three.
Good morning, everybody, and thank you, Ian. I now move to the second resolution, an ordinary resolution which relates to the re-election of Ian Wilton as a director. The resolution is displayed on the screens in the room and in the webcast. The resolution is the same as the resolution in agenda item three in the notice of meeting. The resolution states that Ian Wilton, being a director of a company who retires pursuant to rule 8.1.5B of the Constitution and being eligible, is re-elected as a director of the company. Ian has been a non-executive director since April 2014 and was elected by shareholders in December of that same year. He was last re-elected by shareholders in December 2019. Ian's skills and experience are set out in the notice of meeting.
He is currently chair of the board and of two board committees, the Work Health and Safety Committee and the Nomination and Remuneration Committee. Ian is a member of all other board committees. The board considers Ian to be an independent director and unanimously supports his re-election. I now invite Ian to make a statement regarding his re-election.
Thank you, Robyn. Fellow shareholders, it's been my great privilege to serve as a non-executive director of Elders since April 2014, and I'm immensely proud of what has been achieved by Mark and his team under the guidance of the board of directors during that time. Under normal circumstances, I would have stood down as a director at this meeting, having served my three terms, as I'm a great believer in continuous board renewal. My fellow directors and I thought it appropriate for me to stay on for a further period while we transition to a new CEO. I therefore seek your support for my re-election to what will be my final term as a non-executive director of Elders. Thank you.
Thank you, Ian. I'll pause briefly now to allow time for voting and for written questions to be submitted. Thank you, everyone. I now invite Ian to resume as chair of the meeting. Thank you.
Thank you again, Robyn. I now move to the third resolution, which relates to the approval of the issue of securities under the Long-Term Incentive Plan. The resolution is displayed on the screens in the room and in the webcast. The resolution is the same as the resolution in agenda item four of the notice of meeting. The resolution states that the grant of 107,000 performance rights to the Managing Director and Chief Executive Officer, Mr. Mark Charles Allison, on the terms specified in the explanatory notes to the notice of meeting, be approved. Your Board believes that incentive arrangements for our MD and CEO are an essential component to achieving our long-term goals, and that the conditions of the grant are both balanced and challenging and aligned to shareholder interests. The terms of the proposed grant are set out in the notice of meeting.
Votes cast on this item by or on behalf of Mark Allison and any of his associates, or by a member of key management personnel and their closely related parties acting as proxy, will be disregarded. Exceptions to this are set out in the notice of meeting. I now move to the fourth and final resolution. This resolution relates to an increase in the aggregate non-executive director fee pool. The resolution is displayed on the slides shown in the room and in the webcast. It is the same as the resolution in agenda item 5 of the notice of meeting.
The resolution states that for the purposes of ASX Listing Rule 10.17, rule 8.6.1 of the company's constitution, and for all other purposes, the maximum aggregate amount of remuneration that may be paid to the company's non-executive directors be increased by AUD 300,000 from AUD 1.2 million per annum to AUD 1.5 million per annum. Given the interest each non-executive director has in this item, the board has not made a recommendation on this resolution. Shareholders last approved a maximum aggregate limit for directors' fees in 2006. Since that time, the board has voluntarily reduced the limit to AUD 1.2 million, which includes superannuation. The increase in the fee pool is proposed to ensure directors' fees can continue to be set at competitive rates to attract and retain non-executive directors with the skills and experience required by the company.
In particular, the board has identified a need to appoint another non-executive director for succession planning purposes. Additionally, upon expanding the oversight responsibilities of the Work Health and Safety Committee to include sustainability, the board determined it was appropriate to equalize the fees paid to the chairs and to the members of all committees. Votes cast by or on behalf of a director and any of their associates or key management personnel and their closely related parties will be disregarded. The exceptions to this are set out in the notice of meeting. This brings us to our question and answer session. Your views as shareholders are very important to us, and we are always eager to receive your feedback. I will endeavor Excuse me. I will endeavor to ensure that all relevant questions are answered during this time.
I would like to remind those joining us online using a voting access code. Excuse me for one second. I'd like to remind excuse me. I'd like to remind those joining us online using a voting access code that you may continue to submit questions until I advise the Q&A session is closed. Written questions will be read out before they are answered, beginning with questions received in writing prior to the meeting. If you have joined the meeting in person and would like to ask a question, please come to the microphone now and ask your question. I will call on you shortly. Before the meeting, the board received one submission for which answers have been prepared. I would like to take the opportunity to advise that the polls will close shortly unless additional questions are received.
Noted earlier, Mr. Marcus Laithwaite from PwC is also in the room to answer any questions you have relevant to the conduct of the audit and the auditor's report. Prior to the meeting, no questions have been addressed to Mr. Laithwaite. Will the moderator please read out the first question?
Chair, the first question comes from the MKI Family Super Fund. The question is: What is Elders' strategy in the aquaculture sector?
Thank you very much for your question. Elders does not currently have any direct exposure to the aquaculture sector, and while we're always addressing adjacent opportunities, we have no present intention to enter aquaculture. Moderator, are there any further questions?
Thank you, Chair. There are no further questions.
Since there are no further questions, I will allow a short time for you to finalize your votes before I close the polls. While you do that, here is a short video. I now declare that the polls are closed. That concludes the formal business of the meeting. We thank you very much for your support and welcome your ongoing feedback. I will arrange for the results of all polls to be announced via ASX. A replay of the webcast will be available for viewing on the company's website. On behalf of your board, thank you for your attendance this year. I look forward to seeing you again next year. Please join us now outside for some light refreshments. Thank you.