Select Harvests Limited · ASX:SHV
Select Harvests — Shareholder Meeting (October 2006)
29 slides from Select Harvests's shareholder meeting presentation, Oct 30, 2006
Slide 1: Annual General Meeting 30 October 2006
A CT HARVESTS nnual General Meeting 30 October 2006
Slide 2: Managing Director's Presentation
Managing Directors Presentation Our Business Today Year in Review Our Market Position Our Competitive Position Almond Market The Year Ahead A SELECT HARVESTS nnual General Meeting 30% October 2006
Slide 3: Performance Indicators 1998-2006
PERFORMANCE INDICATORS 1998 - 2006 4998 1999 2000 2001 2002 2003 2004 2005 2006 “= EBIT PAT $0.80 $0.70 $0.60 $0.50 $600 $500 $400 $300 $200 $100 $0 our business today —rrr—C—C—“C“( ’COCOCCCLCLCLCLCLCULLG Ur $14.00 $12.00 $10.00 $8.00 r $6.00 r $4.00 - $2.00 1998 1989 2000 2001 2002 2003 2004 2005 2
Slide 4: Integrated Agri-Food
INTEGRATED AGRI-FOOD our business today _ BUSINESS 2468 acres ovened ‘Temptations A SELECT HARVESTS
Slide 5: Select Managed Orchards
SELECT MANAGED ORCHARDS our business today * 26,853 acres under management * 64% of Australia’s 2006 developments + 57% of Australia’s total acreage A SELECT HARVESTS
Slide 6: Performance Indicators
PERFORMANCE INDICATORS year in review « Group sales revenue increased to $217.9 million +25% « 2006 new almond developments 8,300 acres +102% « Expansion of total acres under management +48% * Food products division increased revenue to $152 million +16% Net profit from continuing operations increas
Slide 7: Almond Division
ALMOND DIVISION year in review EBIT — Almond Operations EBIT FY 2005 - $26.270m BRS & AS million oa Ga EBIT FY 2006 - $32.075m 22.1% 1998 «1999 «2000 «2001 «62002 «2003 «2004 «= 2005 2008 « Established 3 new almond projects, approximately 8,300 acres in 2006 (4,100 acres in 2005) + Largest annual pl
Slide 8: Almond Division Continued
ALMOND DIVISION CONTINUED year in review ~ Similar results were experienced across the industry and the major impact was on mature trees SHV crop down by 33% on previous year with the lightest crop for several years (1,624 MT Vs 2,419 MT in 2005) - Investor crop (4,606 MT Vs 3,721 MT in 2005) - Tota
Slide 9: Food Products Division
FOOD PRODUCTS DIVISION year in review EBIT — Food Products 0 ae Ae ae EBIT FY 2005 - $9.341m AS million o Nk oO EBIT FY 2006 - $9.212m 11.4% 1998 «19989 2000 «2001 2002 2003 2004 2005 2006 « Sales up for the year by 16% to $152 million as we continue to develop our sales base * Some impact of higher
Slide 10: Food Products Division Continued
FOOD PRODUCTS DIVISION CONTINUED year in review * Increased consumption of nuts and associated products continues particularly in natural food / and healthy snacking areas — market is growing « Aggressive private-label strategies continue to impact business in terms of margin and competition to bran
Slide 11: Expanding Our Farm Management Operations
EXPANDING OUR FARM MANAGEMENT OPERATIONS year in review « Established 3 new almond projects, approximately 8,300 acres in 2006 (4,100 acres in 2005) Australia’s Annual Almond Plantings Number of Acres. 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 HV piantings © Total plantings ] \\» SELECT HARV
Slide 12: Expanding Our Farm Management Operations
EXPANDING OUR FARM MANAGEMENT OPERATIONS year in review + Expanded nursery operation to produce over 900,000 trees for 2006 and 2007 projects * Currently increasing nursery capacity to grow 1.3 million trees for 2007 and 2008 projects
Slide 13: Expanding Our Farm Management Operations
EXPANDING OUR FARM MANAGEMENT OPERATIONS year in review * Land, water and climate review conducted to identify suitable areas to support our future expansion program Climate zones based on lemperature and huntidity A SELECT HARVESTS
Slide 14: Expanding Our Farm Management Operations
EXPANDING OUR FARM MANAGEMENT OPERATIONS year in review « Established tissue culturing laboratory - facilitates rapid multiplication of plant tissue « Identified alternative root stocks - improve yields - increase options on soil types for almond production « Protocols established for culturing of a
Slide 15: Expanding Our Farm Management Operations
EXPANDING OUR FARM MANAGEMENT OPERATIONS year in review Developed methodology to commercially use soil mounding techniques in almond developments Soil mounding increases the level of top soil around the root zone * Increases use of soils increasing land availability cs JOU C A SELECT HARVESTS
Slide 16: Expanding Our Farm Management Operations
EXPANDING OUR FARM MANAGEMENT OPERATIONS « Investments made in key technical appointments year in review - Farm Operations Research & Development Tim Kennedy {Bsc} dane Finch {Bsc) Guizhen Li {PhD) TBA Chengi {Lane) Li (Ba) 2 ZA SELECT HARVESTS Horticultural Narender Research & Program Pathania “| D
Slide 17: Increasing Nut Consumption
INCREASING NUT CONSUMPTION year in review “Nuts = Health” message has gained momentum and has lead to increased consumption domestically and internationally Increased interest among key influencers — health professionals, dietary specialists Increased promotional activity by suppliers and industry g
Slide 18: Australia Our Market Position
« Australia our market position - Australia’s almond acreage approx 47,000 acres — We manage in excess of 26,000 acres, over 57% of Australian orchards USA 400,000 mt | _81% — We will handle approximately 40% of Spain 40,000 mt 8% Australia’s 2006 crop Australia 16,000 mt 3% — We expect to handle ov
Slide 19: Food Products
FOOD PRODUCTS $22m industrial 10m superma other retailers $18m « Distribution Z Major supermarkets Independents Route trade Health food stores Food manufacturers Other distributors -™ SELECT HARVESTS our market position Annual sales $152 million « Major supplier of nut products to Australian superma
Slide 20: Why Almonds
WHY ALMONDS competitive position « Australia is able to compete in the global market « Increasing nut consumption * Strong fundamentals of international almond market A SELECT HARVESTS
Slide 21: Competitive Almond Producer: Cost Advantage
COMPETITIVE ALMOND PRODUCER COST ADVANTAGE Yields Per Acre competitive position SS sv s e v —e— US kg/acre —m— SHV kg/acre * Translates to a lower cost per kilogram produced A SELECT HARVESTS
Slide 22: Competitive Almond Producer: Quality Advantage
COMPETITIVE ALMOND PRODUCER competitive position QUALITY ADVANTAGE * Translates to a higher average price A SELECT HARVESTS
Slide 23: Global Supply and Demand
GLOBAL SUPPLY AND DEMAND almond market 1600 1400 3 = 1200 — z as ec 1000 & = 800 - E = 600 400 200 9 4905 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 ——World Supply 714 758 | 1021 779 | 1123 | 1093 | 1150 | 1387 | 1314 | 1258 | 1188 | 1360 jae Consumption 621 710 849
Slide 24: USA Almond Crop
USA ALMOND CROP almond market” IIE LAME ) | Le a 7 Le Le _ 7) oe a Wy, Veiee Lo | 7) uh 1 _ yy , Le _ 7. ye a | _ 7 1063 Mere Gs OG iy os _ Yo Vy a Le yy Ve Ly _ ihe Wa, gy 7” a 7 | — — i. LD y Le LL ee LD 9 Ce ay _ Ly co yy L |) 196 16 Ly 19 a 7 y ay Loy a y ae 7 LL oe ye . a. _ y i a) 1 _ _ oD _.
Slide 25: International Almond Price
3 = ‘das Ss & = 6 < eS E | INTERNATIONAL ALMOND PRICE Almond Price USD/LEB SELECT HARVESTS
Slide 26: Australian Almond Industry Acres and Tonnage Projections
AUSTRALIAN ALMOND INDUSTRY almond market ACRES AND TONNAGE PROJECTIONS 55,000 50,000 45,000 + 40,000 35,000 30,000 25,000 20,000 15,000 10,000 $e itil 5,000 4 til nn aera aes ca ee ee 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 *2006 *2008 *2010 *2012 nim ACCES te Tonnage A SELE
Slide 27: Plans for Coming Year
PLANS FOR COMING YEAR the year ahead « Establish a further 11,000 acres of new almond projects, taking area under management to 38,000 acres. Investor partners have secured sufficient land to facilitate this program « Continue to identify and evaluate suitable land reserves to support ongoing develo
Slide 28: Plans for Coming Year
PLANS FOR COMING YEAR the year ahead Further develop our branded food business Expand domestic distribution for our food products outside the grocery channel Continue to develop and expand our export business Continue to look for further expansion opportunities by acquisition which would complement
Slide 29: Annual General Meeting October 2006
A CT HARVESTS nnual General Meeting 30 October 2006