Slide 1: Half Year ending 31 December 2014 - Results Presentation
For personal use only Select Harvests Limited (“SHV”) Half Year ending 31 December 2014 - Results Presentation 26 February 2015
Slide 2: Disclaimer & Basis of Preparation
Disclaimer & Basis of Preparation For personal use only This presentation is provided for information purposes only and has been prepared using information provided by the company. The information contained in this presentation is not intended to be relied upon as advice to investors and does not ta
Slide 3: Agenda
Agenda For personal use only Overview Results Discussion & Analysis Outlook Appendices 3 3
Slide 4: Overview
Overview For personal use only 1H15 Reported Net Profit after Tax (“NPAT”) of $18.8m, compared to Reported 1H14 NPAT of $18.4m 1H15 Underlying NPAT of $21.5m (excluding the impact of acquisition transaction costs), compared to 1H14 NPAT of $18.4m - up 17% 1H15 Underlying Earnings before Intere
Slide 5: Overview
Overview For personal use only Strong group performance - capitalising on the benefits of integrated and more diversified business model Almond Division EBIT $32.3m (based on 2015 crop estimate) - up 29% on 1H14 EBIT of $25.0m larger productive base & better prices, greater geographic spread,
Slide 6: Financial Results - Income Statement
Financial Results - Income Statement For personal use only Financial Result ($m) 1H14 1H15 ($m) ($m) EBIT of $33.3m (1H14 $26.9m) - up 23% Almond Div. $32.3m (1H14 $25.0m) Revenue 100.7 100.6 up 29% EBITDA - Underlying 28.7 35.5 Food Div. $4.1m (1H14 $4.0m) Depreciation (1.8) (2.2) EBIT - Un
Slide 7: Financial Results - Balance Sheet
Financial Results - Balance Sheet For personal use only ($m) Period 31/12/2013 31/12/2014 ending Current Assets excl. Cash 114.1 144.0 Net Debt $98.7m Cash 3.3 3.3 Non Current Assets 195.4 279.5 Gearing (Net Debt to Equity) of 37.6% Total Assets 312.7 426.8 Down from 1H14 of 45.3% Current Liab
Slide 8: Financial Results - Cash Flow
Financial Results - Cash Flow For personal use only ($m) 1H14 1H15 Operating cash flow down by $5.1m Working Capital increase of $14.8m EBITDA 28.7 35.5 Cash required for new farm Hort Programs Change in Working Capital (2.6) (14.8) Rising commodity prices has put pressure on working capital
Slide 9: Results - Almond Division
Results - Almond Division For personal use only Underlying EBIT ($m) 1H14 1H15 Variance Almond Division 25.0 32.3 +29% FY14 Crop completed Fully processed and 80% sold Crop has been further downgraded due to insect & moisture damage – negative EBIT impact ($3m) pre-tax in 1H15 FY15 Crop Upda
Slide 10: Results - Food Division
Results - Food Division For personal use only Reported EBIT ($m) 1H14 1H15 Variance Food Division 4.0 4.1 - Positive result in tough environment Revenue of A$70.6 million was up 9.4% (A$64.5 million 1H14) Astute trading and price increases have protected bottom line Marketing investment has
Slide 11: Summary – US (California) Status
Summary – US (California) Status For personal use only US Crop Update (2013/14) – harvested – 300 million pounds smaller than first anticipated Market estimate of USA 2013/14 Almond crop - now 1.8 billion pounds (Ref: CAB Position Report – 12 Feb 2015) Down 300 million pounds on original NASS
Slide 12: Thank you
For personal use only Thank you Please direct any queries to: Paul Thompson Paul Chambers Andrew Angus Managing Director Chief Financial Officer Investor Relations +61 3 9474 3544 +61 3 9474 3544 +61 402 823 757 Please note that background material/data regarding the global almond industry can be fo
Slide 13: Appendix
For personal use only Appendix 13 13
Slide 14: Strategic Objectives & Activities
Strategic Objectives & Activities For personal use only FY13 INITIATIVES FY14 INITIATIVES FY15 INITIATIVES 1. CONTROL CRITICAL MASS Secure the critical mass of nuts • Acquired 1,286 acres almond orchard • Acquired 680 acres planted orchard • Acquired 2,481 acres planted orchard OF ALMONDS needed to
Slide 15: Global Supply - US Drought
Global Supply - US Drought For personal use only Orange States = Severe Drought Red States = Extreme Drought Dark Brown States – Exceptional Drought SHV 1H14 2014 – 10% Exceptional Drought, 67% Extreme Drought, 94% Severe Drought SHV 1H15 2015 – 41% Exceptional Drought, 67% Extreme Drought, 93% Seve
Slide 16: Select Harvests - Financial History
Select Harvests - Financial History For personal use only SHV Historical Summary Units 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Sales (A$M) 217.9 229.5 224.7 248.6 238.4 248.3 251.3 191.1 188.3 EBIT (A$M) 38.4 40.5 27.1 26.8 26.0 22.6 19.6 37.7 41.8 EBIT Margin (EBIT/Sales - %) (%) 17.6% 1
Slide 17: Acquisitions – Geographic Diversity, Scale & Future
Acquisitions – Geographic Diversity, Scale & Future. For personal use only Allinga – Loxton, SA (A$16.3M) • 680 acres mature almond • 1,000 acres suitable for planting to almonds (FY15) • Gained SA water buyback/efficiently funding (Net $5m) to support new plantings Amaroo – Paringa, SA (A$52.5M) –
Slide 18: SHV - Almond Division - Risk Mitigation
SHV - Almond Division - Risk Mitigation For personal use only Area Action Farming Practices • Empowered farm management • Introduced Harvest guidelines to reduce weather exposure Management Tools • Great on-farm KPI’s & reporting • Introduction of Leaf Bomb Pressure Test technology Processing Standa
Slide 19: Global Demand – Diverse. High Growth
Global Demand – Diverse. High Growth For personal use only Almonds have held the No.1 position in global tree nut innovations since 2006 (35% market share 2013). Long term US per capita consumption of almond outpaces all other tree nuts (376% growth since 1980) 19 19