Rural Funds Group · ASX:RFF

Rural Funds — Rural Funds Management — Corporate Update (August 2016)

15 slides from Rural Funds's corporate update, August 2016

  1. Slide 1: RFM Almond Funds (AF06, AF07 & AF08) Grower update

    RFM Almond Funds (AF06, AF07 & AF08) Grower update Presented by: James Powell & Daryl Winter August 2016 1

  2. Slide 2: Disclaimer

    Disclaimer RFM AFSL 226701 as Responsible Entity (RE) for RFM Almond Fund 2006 (ARSN 117 859 391), RFM Almond Fund 2007 (ARSN 124 998 527) and RFM Almond Fund 2008 (ARSN 127 947 960), has prepared this presentation based on information available to it. Although all reasonable care has been taken to

  3. Slide 3: Agenda

    Agenda RFM attendees RFM Almond Funds: 2016 1. Grower & Adviser update Andrea Lemmon Executive Manager – – Industry update Funds Management – 2015 harvest overview – 2016 distributions – 2016 harvest update Daryl Winter National Manager - – Key projects Almonds – Conclusion 2. Appendix James Powell

  4. Slide 4: Industry update - California

    Industry update - California Californian drought conditions – as at 27 July 20161  California grows 80% of the world’s almonds  Continues to experience drought conditions despite some relief in 2015/16 winter snowpack  Delivered higher than expected crop yields in 2015 and impacted the almond pri

  5. Slide 5: Industry update - price

    Industry update - price Almond price 2005 – 2016 (AUD)1-5  Almond price dropped significantly $16.00 in 2015 following record highs $14.00  Price has recovered ~20% from $12.00 lows in April 2016 $10.00 $8.00  Lower AUD has provided some $6.00 protection to Australian growers $4.00 $2.00  Lower

  6. Slide 6: Industry update - outlook

    Industry update - outlook Value of tree nut exports, Australia, 1989–90 to 2014–151  Australia well placed to capitalise on growth in Asian middle class incomes  Free Trade Agreements with Asian trading partners to benefit export demand for Australian products  Production capacity over 80,000t in

  7. Slide 7: 2015 harvest overview

    2015 harvest overview Almond Fund 2006 2007 2008 Project year 9 8 7 Yield - t/ha 4.18 4.34 4.28 Almond price - ($/kg) $11.26 $11.27 $11.28  Key observations from 2015 crop and harvest: – Biennial bearing nature of almonds resulted in a larger crop for all varieties following smaller 2014 crop – Dri

  8. Slide 8: 2016 distribution

    2016 distribution Almond Fund 2006 2007 2008 Harvest proceeds from 2015 crop $11,763.55 $10,543.34 $10,415.27 Interest revenue $68.54 $42.99 $37.65 Less estimated operating costs for 2016 crop: Management Fee ($231.83) ($249.84) ($249.84) Licence Fee ($1,540.08) ($1,374.95) ($1,374.92) Operating Cos

  9. Slide 9: 2016 harvest update

    2016 harvest update Almond Fund 2006 2007 2008 2015 Yield - t/ha 4.18 4.34 4.28 2015 Almond price - ($/kg) $11.26 $11.27 $11.28 2016 Total benefit to growers $6,086 $4,673 $4,780 2016 Estimated yield - t/ha1 2.70 3.00 3.15 2016 Estimated almond price - ($/kg)2 $7.60 $7.60 $7.60 2017 Total benefit to

  10. Slide 10: Key projects

    Key projects • FY16 projects included: – New bores and bore replacement – Fences – Harvest equipment – Scientific equipment trials • FY17 projects: – Expansion of scientific equipment use – Upgrade to pump shed technology Special equipment is used to measure how much and when water is used by the al

  11. Slide 11: Conclusion

    Conclusion • 2016 crop will be lower following the significant 2015 harvest which coincided with a record almond price • Distributions to be processed in October following project audits – this will be the third distribution received by Growers • Sector outlook continues to be positive for Australia

  12. Slide 12: Appendix: Varroa Mite

    Appendix: Varroa Mite Presenter: Daryl Winter August 2016 12

  13. Slide 13: Varroa mite overview

    Varroa mite overview  A strain of Varroa mite (Varroa jacobsoni) has been detected on Asian honey bees in Townsville  Asian honey bees are not affected by the mite  Varroa jacobsoni does not readily move to European honey bees used in almond orchard pollination Source: Queensland Department of 

  14. Slide 14: Varroa mite overview (cont.)

    Varroa mite overview (cont.)  If a national outbreak of the Varroa destructor were to occur it is not likely to lead to an extinction of the domestic bees  It is more likely to have an impact on the cost of agricultural production  Biosecurity Queensland is undertaking surveillance activities in

  15. Slide 15: Corporate information

    Corporate information Rural Funds Management Ltd ACN 077 492 838 AFSL 226701 Canberra Office Level 2, 2 King Street Deakin ACT 2600 Telephone: +61 2 6203 9700 Facsimile: +61 2 6281 5077 Website: www.ruralfunds.com.au 15

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