Select Harvests Limited · ASX:SHV

Select Harvests — Conference Presentation (April 2013)

29 slides from Select Harvests's conference presentation, Apr 10, 2013

1. Slide 1: Select Harvests Limited Conference Presentation April 2013

   For personal use only Select Harvests Limited (“SHV”) Conference Presentation April 2013

2. Slide 2: Disclaimer & Basis of Preparation

   Disclaimer For personal use only Disclaimer & Basis of Preparation 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

3. Slide 3: SHV Background

   SHV Background  Listed on ASX in 1978 For personal use only  History  Developer and manager of orchards & almonds  Service provider to Managed Investment Schemes (“MIS”)  Developed a significant portion of the current Australian almond industry  Heavily reliant on government, MIS and a single

4. Slide 4: SHV Board

   SHV Board For personal use only Name Title Date joined Board Michael Iwaniw Chairman November 2011 Paul Thompson Managing Director July 2012 Fred Grimwade Non-Executive Director July 2010 Ross Herron Non-Executive Director January 2005 Michael Carroll Non-Executive Director March 2009 Paul Riordan N

5. Slide 5: SHV Executive Team

   SHV Executive Team For personal use only Name Title Paul Thompson Managing Director Peter Ross GM Horticulture Bruce Van Twest GM Operations Mark Eva GM Consumer Sales & Marketing Laurence Van Driel Group Trading Manager Paul Chambers CFO/Company Secretary Tom Kite HR Manager 5

6. Slide 6: Select Harvests Snapshot

   Select Harvests Snapshot • SHV is Australia’s leading integrated almond business with significant positions throughout the entire almond value chain. For personal use only Orchards Processing Sales & Marketing Summary of Capability Portfolio 11,449 acres (4,635 hectares “ha”) Primary Processing 30KT

7. Slide 7: Brands Customers & Capability

   Brands Customers & Capability  MARKET LEADING BRANDS  KEY CATEGORIES For personal use only  Nuts  Snack Foods  Private Label  Health Foods  Fresh Produce  Muesli  Blends  Dried Fruits  PROCESSING CAPABILITY  KEY CUSTOMERS  Blanching Slicing  Retail  Slivering Meal  Food Service  Pas

8. Slide 8: SHV Orchard Profile - A Competitive Advantage

   SHV Orchard Profile - A Competitive Advantage SHV Company Orchards (Owned & Leased) - Age Profile (Years) - % For personal use only 30.0% . 43% of SHV Company Orchards will reach 15% of SHV Company Orchards economic maturity in next 2 have passed peak economic maturity years 25.0% 42% of SHV Company

9. Slide 9: Almond Trees Long Life & Lead Time to Maturity

   Almond Trees Long Life & Lead Time to Maturity  For personal use only Almond trees take 7 years to mature, then produce at that level for approx. 18 more years before tapering 1.60 1.50 1.40 1.30 Yield (Tonnes/Acre) 1.20 1.10 1.00 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 Year 4 Year 1 Year

10. Slide 10: Why Almonds? - Sustainable Positive Fundamentals

    Why Almonds? - Sustainable Positive Fundamentals For personal use only  Tight Supply  Long lead time to mature production (7 years)  18-21 years of subsequent mature production  Strong Demand  Developed Economies - healthy eating  Developing Economies - affluence shift from carbohydrate to pro

11. Slide 11: Why Almonds? - Aust. Production Counter-Cyclical

    Why Almonds? - Aust. Production Counter-Cyclical Global Almond Consumption 2011/12 For personal use only Global Almond Production 2011/12 EU-27 27% United States United States 7% India 9% 3% EU-27 United Arab Emirates 5% 2% Australia Vietnam 1% Turkey 4% Turkey 0% Chile 3% Canada 86% 35% Other 3% Ja

12. Slide 12: Why Almonds? - US Almond Production Plateauing

    Why Almonds? - US Almond Production Plateauing Californian Almond Acreage, Yield & Production For personal use only Year Bearing Area Non- Bearing Area Yield Production (acres) (acres) (lbs/acre) (tonnes/acre) (lbs) (tonnes) 1995 418,000 65,700 885 0.4 370,000,000 168,182 1996 428,000 72,400 1,190 0

13. Slide 13: Why Almonds? – Global Super Food

    For personal use only 0.00 0.25 1.25 1.50 0.50 0.75 1.00 1.75 2.00 2.25 Fromage Frais Light - 150 g Reduced fat yoghurt - 200 g Tofu - 120 g Cooked rice - 400 g Lentils - 150 g Cooked pasta - 330 g Small eggs - 2 Lean lamb - 35 g * Lean chicken - 40 g * Cottage cheese - 70 g Grilled fish - 50 g Whol

14. Slide 14: Why Almonds? - Health & Economic Benefits

    Why Almonds? - Health & Economic Benefits Nutrient Content (%) & Price (A$/Kg) of a Range of Tree Nuts For personal use only 30.0% $60 $53 25.0% $50 21.2% 21.0% 20.0% $40 $33 $32 15.3% 15.2% $31 15.0% 15.0% 14.3% $30 13.7% 12.2% $25 $20 $22 $20 9.9% $20 9.7% 9.2% 9.6% 10.0% $20 7.5% 7.8%8.0% 6.7% 5.

15. Slide 15: Why Almonds? - Both Dominate & Versatile

    Why Almonds? - Both Dominate & Versatile Global Tree Nut Production 2006-2011 For personal use only 1,200,000 Almond Share of Global Tree Nut Production 2006 2011 Increase 1,000,000 Volume - Tree Nuts 2.77MT 3.10MT 0.32MT Volume - Almonds 0.67MT 1.11MT 0.44MT % of Global Tree Nut Production - Almond

16. Slide 16: Why Almonds? - Supply-Demand Dynamic Attractive

    Why Almonds? - Supply-Demand Dynamic Attractive  Global market worth an estimated For personal use only US$4.5 billion  Supply and demand have grown at 8% CAGR over past decade  Current demand growth trending above average growth rate; average supply growth cannot be maintained due to slow-down i

17. Slide 17: Almond Price History

    Almond Price History Long Term Almond Price (NPS 23/25) and Exchange Rate For personal use only $14.00 $1.5000 $1.3000 $12.00 $1.1000 $10.00 Almond Price (A$/Kg, US$/Kg, US$/lb) $0.9000 AUD/USD Exchange Rate $8.00 $0.7000 Note: this chart is for indicative $6.00 purposes only – it represents $0.5000

18. Slide 18: Australian Almond Industry Snapshot

    Australian Almond Industry Snapshot For personal use only Company Orchards Processing Sales & Marketing Select Harvests 11,449 acres (4,635 ha) – Primary Processing 30KT Consumer, Foodservice & 15% market share Robinvale Vic Industrial businesses Global Nut Trader Vic & NSW Value Added Processing Ro

19. Slide 19: SHV Recent Activity

    SHV Recent Activity  Reviewed strategy For personal use only  Restructured executive responsibilities  Merged horticultural and processing offices  Acquired of 1,286 acres of mature orchards  Gained additional 3rd party processing business  Debt reduction: water sale and working capital manage

20. Slide 20: SHV Risk Mitigation

    SHV Risk Mitigation Area Action For personal use only 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 Standards • Re-introductio

21. Slide 21: SHV Path Forward – Phases

    SHV Path Forward – 3 Phases LEGEND For personal use only •Done Consolidation Business Improvement Growth •Underway •Future One Select Restore the Basics Build foundations Expand and grow  Exit Olam  Improve returns in Food Div  Leverage core competencies  Improve farm practices yield  Acquire a

22. Slide 22: Growth Opportunities

    Growth Opportunities  Orchards For personal use only  Better horticultural performance across all trees  Maturing of immature trees  Replant older trees  Replant more productive varieties & at higher densities  Processing  New processing contracts  Farm gate purchasing  Orchard acquisitions

23. Slide 23: Why Select Harvests?

    Why Select Harvests? For personal use only 1. Excellent Industry Fundamentals 4. Competitive Advantage: Quality Assets  Supply/Demand  85% orchards mature in 2 years  Counter-cyclical to USA  State of Art Carina West processing 2. Integrated Business Model facility  Orchards  Market leading br

24. Slide 24: What we are building

    What we are building For personal use only  A strong and trustworthy company that looks after stakeholder interests  A business that can manage the dynamic agricultural cycle and can mitigate the inherent risks  A company that responds to the challenges and learns from the experience  A cash gen

25. Slide 25: Thank you

    For personal use only Thank you Please direct any queries to: Paul Thompson, Managing Director, +61 3 9474 3544 Paul Chambers, Chief Financial Officer, +61 3 9474 3544 Andrew Angus, Investor Relations, +61 402 823 757 25

26. Slide 26: Select Harvests Financial History

    Select Harvests Financial History 2006 2007 2008 2009 2010 2011 2012 For personal use only SHV Historical Summary Units Total Sales (A$M) 217.9 229.5 224.7 248.6 238.4 248.3 246.8 EBIT (A$M) 38.4 40.5 27.1 26.8 26.0 22.6 19.6 EBIT Margin (EBIT/Sales - %) (%) 17.6% 17.6% 12.1% 10.8% 10.9% 9.1% 7.9% P

27. Slide 27: Almond Division – Orchards & Processing

    Almond Division – Orchards & Processing Farmed Orchard Area Almond Processing Area For personal use only Controlled Orchards Acres Hectares Acres Hectares Owned 4,013 1,624 4,013 1,624 Leased 1,481 600 1,481 600 Victoria 5,494 2,224 5,494 2,224 Owned 1,511 612 1,511 612 Leased 3,017 1,221 3,017 1,22

28. Slide 28: Orchards – Geographic Diversity

    Orchards – Geographic Diversity Robinvale (Ouyen) January July For personal use only Temp - Avge Min (Deg C) 15.7 4.3 Robinvale to Hillston - Avge Max (Deg C) 32.4 15.2 382km Avge Annual Rainfall (mm) 333.5 4 hours drive time Hillston January July Temp - Avge Min (Deg C) 18.3 3.7 - Avge Max (Deg C)

29. Slide 29: Key Drivers - Weather - Annual Almond Cycle

    Key Drivers - Weather - Annual Almond Cycle Adverse weather is biggest threat For personal use only Dormancy Nuts Mature Almond Trees are dormant between Formation of Fruit/Kernel, Hull, •Pollination – Wet weather & Wind impacts May-July Leaves •Petal fall to early nutlet development – Frost impacts

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