Slide 1: Investing for a Healthy Future
For personal use only Investing for a Healthy Future Results Presentation Year Ended 30 June 2008
Slide 2: Financial Results Year Ended 30 June 2008
FINANCIAL RESULTS YEAR ENDED 30 JUNE 2008 For personal use only Year Year % increase (A$’000) ended ended (decrease) 30/06/07 30/06/08 Sales Revenue 229,498 224,655 -2.1% Operating EBIT 40,549 28,964 -28.6% Restructuring costs - -1,845 EBIT 40,549 27,119 -33.1% Interest Expense -535 -1,735 Net Profi
Slide 3: Earnings History
EARNINGS HISTORY For personal use only Ordinary Dividend Per Share Earnings Per Share 45.0c 46.7c 70 +7.5% 80 +6%+6% +26%+8% +18% +18% +26% 70 60 +42% +42% +62% -21% 60 50 +62% -34% 50 +28% 40 +28% cents cents +41% 40 +23% +41% +23% 30 +37% +37% 30 20 20 10 10 0 0 2003 2004 2005 2006 2007 2008 2003
Slide 4: Balance Sheet
BALANCE SHEET For personal use only 2007 2008 $’000 $’000 Current Assets 64,059 72,960 Cash On Hand 6,924 4,054 Non Current Assets 89,170 118,934 Total Assets 160,153 195,948 Current Liabilities 52,281 37,375 Borrowings 1,636 50,787 Non Current Liabilities 10,732 13,715 Total Liabilities 64,649 101,
Slide 5: Funding
FUNDING For personal use only Projected Net Debt Levels 80.0 70.0 60.0 50.0 $Am 40.0 30.0 20.0 10.0 0.0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun '07 / '08 '08 / '09 Estimate
Slide 6: Our Business Today
OUR BUSINESS TODAY For personal use only Orchard Development Operating EBIT 2007 -$5.1m 2007 - $44.2m Nursery 2008 - $2.7m 2008 – $32.3m Orchard establishment Orchard Management Managed Orchards Owned Orchards 2007 -$16.1m Almond Growing 2007 -11.6m 2008 -$18.7m Harvesting 2008 - $2.8m Processing 20
Slide 7: Divisional Performance
DIVISIONAL PERFORMANCE For personal use only Group EBIT 2003 2004 2005 2006 2007 2008 $’000 Owned orchards 7,687 8,804 13,706 14,147 11,567 2,853 Managed orchards 6,099 9,460 12,564 17,928 25,260 26,661 Total Almond Division 13,786 18,264 26,270 32,075 36,827 29,514 Food Division 4,598 7,027 9,342 9
Slide 8: Almond Orchards
ALMOND ORCHARDS For personal use only Temporary water purchased to 2008 2007 make up shortfall from reduced EBIT EBIT allocations Current Crop 6.396 9.164 Drought management plan adopted Previous Crop (0.536) 2.403 Similar crop to large 2007 crop approx 2,300mt Temporary Water (3.007) - Incr
Slide 9: Orchard Development
ORCHARD DEVELOPMENT For personal use only FUTURE DEVELOPMENTS Select Harvests has developed 37,000 acres of new almond orchards over the last ten years Diversification to alternative Orchard Development (acres) water source in WA 12000 Support current customer to 11000 10000 develop new orchar
Slide 10: Orchard Management
ORCHARD MANAGEMENT For personal use only Acres under Reduced water allocations management 38,644 Acres Higher farm costs Managed Owned/leased Drought management plan adopted 91% 9% - 20% reduction in water application % of Australia’s - reduced farm inputs Almond Acreage 60% Delivered normal
Slide 11: Processing - Almond Processing
PROCESSING - Almond Processing For personal use only Invested $32million in a new Future Tonnage from Existing Trees 60,000 processing facility 50,000 Sale of the art facility – one site 40,000 operation 30,000 Significantly improve efficiency, 20,000 flexibility and product quality 10,000 0
Slide 12: Processing - Added Value Processing
PROCESSING - Added Value Processing For personal use only Decommissioning of Brisbane processing facility on time and in line with estimate cost of $1.8million Consolidation of Food Division processing operations on one site in Melbourne Forecasted cost savings of $3.0million per annum Some
Slide 13: For personal use only
For personal use only $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 Feb-93 Aug-93 Feb-93 Feb-94 Aug-93 Aug-94 Feb-94 Feb-95 Aug-94 Aug-95 Feb-95 Feb-96 Aug-95 Aug-96 Feb-96 Feb-97 Aug-96 Aug-97 Feb-97 Feb-98 Aug-97 Aug-98 Feb-98 Feb-99
Slide 14: Sales and Marketing - Almond Pool Management
SALES AND MARKETING -Almond Pool Management For personal use only USA ANNUAL PRODUCTION Increased USA crop in 2007 offset by 1600.0 1400.0 a commensurate increase in 1200.0 1000.0 shipments 800.0 600.0 400.0 200.0 Forecasting an 8% increase in supply 0.0 for 2008 1982 1983 1984 1985 1986 1987 19
Slide 15: Sales and Marketing - Added Value
SALES AND MARKETING - Added Value For personal use only Range rationalisation Focus on key products and brands Further develop almond sales both domestic and export Plan for increased almond sales volumes in the future Rebuild profit contribution of Food Division
Slide 16: Outlook
OUTLOOK Key growth areas For personal use only 80000 70000 (Estimated fee revenue Increase in management services 60000 50000 based on current plantings) revenue as orchards mature and 40000 30000 20000 crops increase 10000 0 2008 2009 2010 2011 2012 2013 2014 2015 New development in WA 5000 I