Select Harvests Limited · ASX:SHV

Select Harvests — Morgans AgriFood Investment Seminar 2015

21 slides from Select Harvests's conference presentation, Apr 16, 2015

  1. Slide 1: Select Harvests Limited (SHV) – Morgans AgriFood Investment Seminar

    For personal use only Select Harvests Limited (“SHV”) Paul Thompson, Managing Director Morgans AgriFood Investment Seminar 16 April 2015

  2. 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

  3. Slide 3: Overview

    Overview For personal use only  Select Harvests has undergone significant transformation in last 5 years  Undertook a deliberate move to more directly expose shareholders to the compelling fundamentals of almonds & healthy eating  Select Harvests has transition from predominantly a manager of 3rd

  4. Slide 4: 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

  5. Slide 5: Snapshot of Select Harvests Key Drivers Today

    Snapshot of Select Harvests Key Drivers Today For personal use only  Existing portfolio – 18,000 acres  Circa 13,000 acres almond trees  60% owned, 40% leased  Average age 11 years old  Unplanted land bank of 5,000 acres  Orchard  Investment in risk mitigation and capex relate productivity is

  6. Slide 6: Productivity – Controllable Improvements

    Productivity – Controllable Improvements For personal use only  People/OHS/Safety – Right people, right training, right systems, right resources  Intangible impact – difficult to measure entire specific impact – collectively reveals itself in improved productivity & results  Orchard Productivity

  7. Slide 7: Global Supply - US Almond Production & Drought

    Global Supply - US Almond Production & Drought For personal use only 14% - North Counties % of US Almond Prod’n 86% Orange States = Severe Drought 86% South Counties South Counties % of US Red States = Extreme Drought % of US Almond Prod’n Dark Brown States – Exceptional Drought Almond Prod’n Too ea

  8. Slide 8: US Update

    US Update For personal use only  Californian Almond Board – March 2015 Position Report  http://www.almonds.com/sites/default/files/content/newsletters/attachments/2015.03posrptmarch.pdf  US Shipments  March US shipments - 190 million lbs - a record and 26% higher than March 2014  US Export ship

  9. Slide 9: 2015 Crop Update

    2015 Crop Update For personal use only  Harvest Progress Update  85% of crop harvested (this time last year 65%)  All Non-Pareil (premium value nuts) harvested  Volume Update  13,400 tonnes  In line with previous guidance from 1H15 Results on 26 Feb 2015  Processing Update  25% of est. crop

  10. Slide 10: Business Focus

    Business Focus For personal use only 1. Acquire mature cash generating almond orchards 2. Develop green field almond orchards 3. Invest in orchard productivity 4. Invest in energy savings and sustainability: Cogen 5. Invest in new products (Food business) 6. Invest in manufacturing and supply chain

  11. Slide 11: 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

  12. Slide 12: 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

  13. Slide 13: Geographic Diversity & Scale

    Geographic Diversity & Scale For personal use only Geographic diversity limits exposure to: − Weather − Disease spread − Insect infestation Amaroo to Robinvale Distance: 225 km Drive Time: 2.5 hours Grewal to Robinvale Distance: 140 km Drive Time: 1.8 hours Mendook to Robinvale Distance: 40km Drive

  14. Slide 14: Orchard Profile – Young Orchards PLUS Longevity

    Orchard Profile – Young Orchards PLUS Longevity For personal use only Land bank Planted acreage age profile 50.0% (% of total land holding) 45.0% 40.0% 35.0% 25% 67% 8% Planted orchards are Planted orchards in economic sweet spot - Planted orchards post 30.0% low capex & high cash generation economi

  15. Slide 15: Orchard Profile

    Orchard Profile For personal use only Almond orchard Planted Orchard Planted Orchard Bearing Orchard Bearing Orchards portfolio Area (acres) Area (hectares) Area (acres) Area (hectares) Northern Region Owned 1,491 604 1,423 576 Leased 3,017 1,221 3,017 1,221 Total 4,508 1,825 4,440 1,798 Central Reg

  16. Slide 16: Orchard Profile

    Orchard Profile For personal use only AREA BY TREE AGE Years 0-7 Years 8-26 Years 26+ TOTAL PLANTED AVAILABLE TO PLANT TOTAL (acres) (ha) (acres) (ha) (acres) (ha) (acres) (ha) (acres) (ha) (acres) (ha) Northern Region Company Owned 312 126 1,179 477 - - 1,491 604 - - 1,491 604 Leased 1,332 539 1,68

  17. Slide 17: 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

  18. Slide 18: 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) For the first time in 2013, Almonds be

  19. Slide 19: Commodity Price Trend 2008-2015

    For personal use only Price Per KG CFR $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $50.00 $0.00 $5.00 Feb-08 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 California Walnuts LH&P Apr-10 Chinese Pinenut 600 Count Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr

  20. Slide 20: Key 2015 Divisional Activities

    Key 2015 Divisional Activities For personal use only Orchards  Larger investment in orchard programs  Staff training and up skilling  Further upgrades of existing orchard infrastructure  Further increase harvest equipment matrices / Redevelopment/Development / Electronic farm management system O

  21. Slide 21: Key 2015 Divisional Activities

    Key 2015 Divisional Activities For personal use only Trading & Industrial  Strong demand - global almond industry new product development remains buoyant  Uncertain supply - drought continues in the USA causing uncertainty of crop sizes in coming years  Continue to invest in innovation growth Hum

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