Slide 1: FY2020 Full Year Results Presentation
Click to edit Master title style Select Harvests Limited (ASX:SHV) FY2020 Full Year Results Presentation 30 November 2020 Click to edit Master text styles 1
Slide 2: Disclaimer & Basis of Preparation
Disclaimer & Basis of Preparation Click to edit Master title style 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
Slide 3: FY2020 Overview
Click to edit Master title style FY2020 Overview Wemen Farm – October 2015 Click to edit Master text styles Bunargool Orchard Blossom 2018 3 33
Slide 4: FY2020 Financial Overview
FY2020 Financial Overview Click to edit Master title style Strong earnings, solid margins and low net debt. Timing of operating cash flows impacted by COVID-19 NPAT EBITDA1 EPS $25.0m $57.8m 26.0 cps 10.1% Margin 23.3% Margin Final dividend of 4c fully franked DRP with 2.5% discount Net Bank Debt/Eq
Slide 5: FY2020 Operating Overview
FY2020 Operating Overview Click to edit Master title style A record almond crop was offset by lower almond prices and higher water costs Almond Volume Average Almond Price Annual Water Costs 23,250 MT $7.50/kg $21.5m 560 MT 12.8% $8.7m 3rd consecutive year of increasing volume. Estimated record U.S
Slide 6: FY2020 Results in Context
FY2020 Results in Context cycle’Click FY2020 to edit Master title style Higher volumes and contained production costs per kg enabled a strong ‘through the performance Almond Volume Almond Price Total Almond Production Cost NPAT Click to edit Master text styles 5 Yr. Average 6 66
Slide 7: Impact of COVID-19
Impact of COVID-19 Click to edit Master title style Select Harvests continued to operate throughout the pandemic period as a designated essential business Our People Our Business Looking Ahead ■ Safety of our people is the number ■ No impact on the 2020 harvest, or ■ Market access issues have now on
Slide 8: Group Financial Results
Click to edit Master title style Group Financial Results Wemen Farm – October 2015 Click to edit Master text styles Bunargool Orchard Blossom 2018 8 88
Slide 9: Income Statement
Income Statement Click to edit Master title style Earnings underpinned by another solid performance from the Almond Division Income Statement ■ Decreased revenue reflects lower 2020 crop value and delayed $ millions FY2020 FY2019 Variance % Change shipments Almond Volumes MT 23,250 22,690 560 2.5% ■
Slide 10: Group EBIT Movement
Group EBIT Movement Click to edit Master title style FY2020 Group EBIT impacted by lower almond prices and higher water costs Click to edit Master text styles 10 1010
Slide 11: Balance Sheet
Balance Sheet Clickforto edit Master title style Balance sheet remains in a strong position, with low net bank debt and sufficient headroom growth Year Ending Balance Sheet ■ Increased current assets – working capital of $169.6m is $ millions FY2020 FY2019 higher due to value of 2020 growing crop (i
Slide 12: Cash Flows
Cash Flows Click to into edit Master title style Operating cash flows impacted by COVID-19 market access issues, with customer payments pushed H1 FY2021 Cash Flow ■ Lower EBITDA1 of $57.8m - operational performance $ millions FY2020 FY2019 EBITDA 57.8 95.2 ■ Increase in tax paid reflects return to n
Slide 13: Almond Division Results
Click to edit Master title style Almond Division Results Click to edit Master text styles 13 1313
Slide 14: FY2020 Almond Division Overview
FY2020 Almond Division Overview Click to edit Master title style A record almond crop helped mitigate against the impact of lower almond prices and higher water costs Almond Division EBIT Almond Volume Almond Price $41.8m 23,250 MT $7.50/kg $40.4m 560 MT 12.8% − Higher almond volume − Better than in
Slide 15: Yield Performance
Yield Performance Click to an delivered edit Master additional 2,029 MTtitle style standard yields in FY2020 A second consecutive year of yield outperformance across all age cohorts. Immature orchard above industry Immature Mature Click to edit Master text styles 15 1515
Slide 16: Almond Costs
Almond Costs Clickcosts to edit Master title style Cost management and yield outperformance helped contain orchard, harvest and processing Total Almond Costs per Kilogram Click to edit Master text styles 16 1616
Slide 17: Almond Market Outlook
Almond Market Outlook Click toduring editQ2Master title style More definitive pricing unlikely until a clearer picture of U.S. almond shipments and 2021 US crop indicators FY2021 Almond Prices Almond Shipments ■ An estimated record U.S almond crop and challenges related ■ The U.S. accounts for aroun
Slide 18: Water Market Outlook
Water Market Outlook Click to averages edit Master title style The 2020/21 water season has seen higher allocations and a movement of prices back towards long-term Water Prices Climate Outlook ■ The start of the 2020/21 water season has seen a movement of temporary ■ The current forecast is for abov
Slide 19: Almond Division Outlook
Almond Division Outlook Click to edit Master title style Too early in the horticultural cycle to be able to confidently forecast the 2021 crop Crop Volume Sales Horticulture ■ Good pollination and growing ■ Demand has responded strongly to ■ Additional investment in risk conditions to date historica
Slide 20: Food Division Results
Click to edit Master title style Food Division Results Click to edit Master text styles 20 2020
Slide 21: Industrial Almond Market Outlook
Industrial Almond Market Outlook Click foodto edit Master title style Lower almond prices should drive the use of value-added almonds as a key ingredient in consumer products New Product Launches Categories of Almond Use Almond Dairy Alternatives Global NPD’s launched using almond Categories in whic
Slide 22: FY2020 Food & Corporate Division Overview
FY2020 Food & Corporate Division Overview Click almonds to edit Master title style Operating in a challenging domestic retail market, however strong demand for industrial value-added continues Food Division EBIT Industrial Sales Consumer Sales $3.3m ■ The Industrial business increased sales by 19% i
Slide 23: FY2020 Food & Corporate Division Outlook
FY2020 Food & Corporate Division Outlook Click to edit Master title style Management is currently undertaking a comprehensive review of the Food Division Management Review Industrial Sales Consumer Brands ■ The Thomastown processing facility, ■ Demand for industrial products ■ Expecting a large dome
Slide 24: Strategy and FY2021 Priorities
Click to edit Master title style Strategy and FY2021 Priorities Wemen Farm – October 2015 Click to edit Master text styles Bunargool Orchard Blossom 2018 24 2424
Slide 25: People Planet Profit
Triple Bottom Line Click to edit Master title style Committed to reporting our sustainability performance biennially, with annual snapshots on progress People People 23% reduction 32% reduction $100k donated 100% of labour in Total in Medical in bushfire providers have Recordable Treatment relief to
Slide 26: Select Harvests Strategy
Select Harvests Strategy Click to edit Master title style Select Harvests – in control of our destiny Click to edit Master text styles 26 2626
Slide 27: Piangil Almond Orchard
Piangil Almond Orchard 2020 Click to edit Master title style The Piangil Almond Orchard acquisition is expected to settle in the 3 week of December rd Optimise the ■ The Acquisition aligns with SHV’s strategy to grow our almond base almond orchard base ■ Piangil Almond Orchard is a high yielding ‘to
Slide 28: Volume Growth
Volume Growth Click to edit Master title style Our investment in greenfield developments and orchard acquisitions will platform long- term growth Select Harvests Theoretical Harvest Volume (2021 – 2028)1 Click to edit Master text styles 1 The almond crop is biennial in nature with expected +/- 10% p
Slide 29: FY2021 Top Priorities
FY2021 Top 10 Priorities Click assets to edit Master title style Continue to execute on our growth strategy, underpinned by a world class portfolio of almond 1. Safety and Wellbeing - Ensure the safety and wellbeing of our employees during the COVID-19 pandemic 2. 2021 Horticultural Program – Delive
Slide 30: Thank You & Questions
Click to edit Master title style Thank You & Questions Please direct any queries to: Paul Thompson Brad Crump Andrew Angus Managing Director CFO and Company Secretary Investor Relations +61 3 9474 3544 +61 3 9474 3544 +61 402 823 757 Please note that background material/data regarding the global alm
Slide 31: Appendix
Click to edit Master title style Appendix Wemen Farm – October 2015 Click to edit Master text styles Bunargool Orchard Blossom 2018 31 3131
Slide 32: Financial History
Financial History Click to edit Master title style Select Harvests – Financial History SELECT HARVESTS CONSOLIDATED 2009 2010 2011 2012 2013 * 2014 2015 2016 2017 2018 2019 2020 RESULTS FOR YEARS ENDED 30 SEPTEMBER/JUNE 30-June 30-September Total sales 248,581 238,376 248,316 246,766 190,918 188,088
Slide 33: Orchard Portfolio
Orchard Portfolio Click orchard to edit Master title style One of the worlds largest almond growers, with a geographically diverse 9,262 hectare portfolio 1 Select Harvests Orchard Map1 Benefits of Geographic Diversity & Scale ■ Geographic diversity limits exposure to: − Weather − Disease spread − I
Slide 34: Orchard Profile
Orchard Profile Click to edit Master title style 2.6x growth in planted hectares since 2012 1 Select Harvests Orchard Profile Select Harvests Planted Almond Hectares2 Select Harvests Total Planted Almond orchard portfolio (as at 30 September 2020) hectares acres Central Region Company Owned 1,693 4,
Slide 35: Orchard Age
Orchard Age Click age willto edityearsMaster title style Following the Piangil Almond Orchard acquisition, Select Harvests weighted average orchard be 12.3 Age Profile of Select Harvests Almond Orchards1 (95% of current planted hectares are cash generative) Click to edit Master text styles 1 Tree ag
Slide 36: Target Yield
Target Yield Click upsideto edit Master title style Achieved above industry standard yields per hectare in FY2020, resulting in significant tonnage Select Harvests Yield Performance Points to Note ■ Biennial Nature of Crop Tree Age Select Harvests FY2020 − The almond crop is biennial in nature with
Slide 37: Almond Shipments Update
Almond Shipments Update Click to edit Master title style Shipments have responded strongly to lower almond prices U.S. and Australian Almond Shipments Points to Note U.S Shipments: 2020/21 Crop YTD (Million Lbs.) 2019/20 Crop YTD (Million Lbs.) ■ Shipments and forward commitments have Aug 2020 to Oc
Slide 38: Tree Nut Pricing
Tree Nut Pricing Click to edit Master title style Almonds have been the best value of the major tree nuts for over a year Selected Tree Nut Pricing Click to edit Master text styles Source: Select Harvest Company Data 38 3838
Slide 39: Water Markets Inquiry
Water Markets Inquiry Click to edit Master title style SHV is pleased to see that the ACCC has taken on board the feedback provided in our initial inquiry submission ■ Select Harvests initial submission to the ACCC’s Murray-Darling Basin water markets inquiry highlighted: Murray Darling Basin − The
Slide 40: Useful Almond Industry Websites
Useful Almond Industry Websites Click to edit Master title style Industry Associations Californian Almond Board www.almondboard.com Almond Board of Australia www.australianalmonds.com.au Industry Reports US Crop Forecasts (Subjective, Objective) https://www.almonds.com/tools-and-resources/crop