Slide 1: Results Presentation - Half Year Ended 31 December 2006
SELECT HARVESTS Results Presentation - Malf Year Ended - 31 December 2006
Slide 2: Financial Results Half Year 31/12/2006
ZS. Ez gerne FINANCIAL RESULTS HALF YEAR 31/12/2006 6 Months 6 Months Ended Ended 31/12/06 31/12/05 #039;000 $’000 Total Revenue 414,580 113,636 Operating EBIT 48,627 7,704 | interest Expense -284 Profit from Pesticides Division 4,355 | Profit before tax 24,775 Tax expense 6,118 | Net profit after tax
Slide 3: Balance Sheet
ZA SELECT HARVESTS BALANCE SHEET As at 34/42/06 $000 As at 31/12/05 $000 | Current Assets 59,188 55,257 80,775 79,825 139,963 135,062 21,113 21,735 5,515 5,288 Non Current Liabilities 10,099 10,541 | Total Liabilities 36,727 | TOTAL Equity 103,236 7 7 | Debt to E 5% 5
Slide 4: Financial Results Half Year 31/12/2006
ZA CT HARVESTS FINANCIAL RESULTS HALF YEAR 31/12/2006 6 Months Ended 31/12/06 $000 6 Months Ended 31/12/05 $000 % change arnings per share (basic) ~ continuing operations 33.0 cents 31.6 cents 44% Interim dividend 22.0 cents 20.0 cents 10% Special dividend 10.0 cents Total shareholders’ equity (AG°0
Slide 5: EBIT Contribution
ZA SELECT HARVESTS EBIT CONTRIBUTION 618,627 EBIT 6 Months Ended 31/12/06 m@ Almond Operations m Food Products 17,704 EBIT 6 Months Ended 31/12/05 @ Almond Operations @ Food Products 6 Months Ended 6 Months Ended Operating EBIT 34/12/06 34/12/05 % change Almond 14,979 12,946 +18% Operations Food Pro
Slide 6: Almond Operations
Ez vr coe ALMOND OPERATIONS EBIT HY Dec 06 - $14.979m EBIT HY Dec 05- $12.946m 4 16% Development of Almond Operations New orchards Company orchards | 2,368 2,368 2,368 3,368 Investor orchards 11,674 15,782 24,485 35,185 Company crop 1,624 2,300 Investor crop
Slide 7: Almond Operations
2 EE ce esr ALMOND OPERATIONS Increased area under management Increased recurring fee income base Increased size of annual projects 2007 Projects — approx 11,700 acres Increased 2007 crop for both company and investor orchards Almond prices remain buoyant although impacted by strong Australian dolla
Slide 8: Almond Operations
ZS. Ez vr coe ALMOND OPERATIONS Management Services Projected Growth in crop and fee income 70,000 60,000 50,000 40,000 30,000 ie i) 20,000 iid: 10,000 vs 0 ps aah Wii i a i Wheat Tia a pa 2007 2008 2009 2010 2014 2012 2013 2014 2015 f@ Mgt services revenue $M Tonnage
Slide 9: World Almond Market
ZS. Ez vr coe WORLD ALMOND MARKET Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Feb- 93 94 95 96 oF 98 gg 00 01 02 03 04 05 06 07
Slide 10: MIS Debate
2 a sei MES DEBATE What has changed? « ATO has reconsidered its interpretation of the current laws in relation to MIS projects entered into after 30'" June 2007 * The government has announced it does not intend to introduce specific arrangements for agri-MIS as they did for forestry + As a result MI
Slide 11: MIS Debate
2 a sei MES DEBATE The Issues * A view that MIS projects disadvantage or have an advantage over traditional farming enterprises + MIS does not have any preferential tax treatment over smaller farming enterprises * The major difference is in resources and scale which allows them to compete effectivel
Slide 12: MIS Debate
2 a sei MES DEBATE MiS industry has asked the government to consider the following proposal: * That the announced new legislative framework for forestry MIS be extended to non forestry MIS undertakings subject to a sunset clause of 3 years + It will work with the ATO to run a test case on the “carry
Slide 13: MIS Debate
Zz A | sei MES DEBATE Where do almonds fit? « Australia is a world competitive almond grower able to compete with the major player “USA” on global markets on quality and price + Almonds are an internationally traded commodity and Australia at 3% of world supply does not influence the price + Almond
Slide 14: Food Products
2 sei FOOD PRODUCTS EBIT HY Dec 06 - $5.331m EBIT HY Dec 05 - $ 6.213m | 14% Difficult trading conditions in the retail sector applying pressure to revenue and margins Nut consumption continues to increase Consumer trend towards natural whole foods and healthy snacks continues Division remains an in
Slide 15: Food Products - New Products
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Slide 16: Food Products - Marketing Program
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Slide 17: Food Products - Marketing Program
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Slide 18: Business Drivers
ZS. Ez vr coe BUSINESS DRIVERS Scale of SHV almond operations: — top 2 growers internationally — manages over 55% of Australia's orchards — Australia set to overtake Spain as #2 almond producer behind USA in next 10 years — We expect to produce approximately 50% of the Australian 2007 crop Australia
Slide 19: SHV Business Model
ZS. Ez LA. SHV BUSINESS MODEL SELECT HARVESTS Objectives « Diversify and expand our income stream to deliver sustainable earnings growth with less volatility from agricultural risk « Transform the company from an almond grower to a fully integrated food company « Leverage core skills of almond growi
Slide 20: Key Activities in 2007
ZS. Ez vr coe KEY ACTIVITIES IN 2007 Established almond bud site to guarantee supply of almond buds to our almond tree nurseries « Established a tissue culture laboratory to grow more productive almond rootstocks and facilitate our move into other nut crops « Increased nursery capacity « Pursue the