Slide 1: Select Harvests Limited Annual General Meeting
For personal use only Select Harvests Limited (“SHV”) Annual General Meeting Paul Thompson, Managing Director 20 November 2012
Slide 2: Disclaimer & Basis of Preparation
Disclaimer For personal use only Disclaimer & Basis of Preparation This presentation is provided for information purposes only. The information contained in this presentation is not intended to be relied upon as advice to investors and does not take into account the investment objectives, financial
Slide 3: Agenda
Agenda For personal use only First Impressions Financial Performance The Path Forward Almond Division Food Division New Structure & Team Outlook Appendices 3
Slide 4: First Impressions
First Impressions For personal use only Industry Almonds are a global growth industry underpinned by outstanding fundamentals Natural barrier to supply entry through long lead times to mature production (7 years) Australian almond industry has experienced challenges outside of its control Business Q
Slide 5: Financial Performance – FY12
Financial Performance – FY12 For personal use only Reported FY12 EBIT (loss $2.5M) Underlying FY12 EBIT $19.6M (up 27% vs Underlying FY11 EBIT $15.4M). Reported FY12 NPAT (loss $4.5M) (vs Reported FY11 NPAT $17.7M) Underlying FY12 NPAT $9.5M (up 6.7% vs Underlying FY11 NPAT $8.9M) Reported Earnings
Slide 6: SHV Path Forward – Phases
SHV Path Forward – 3 Phases For personal use only Consolidation Business Improvement Growth 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 almond orchards at Orchard Industry top qu
Slide 7: Almond Division Top Priorities
Almond Division For personal use only Top 5 Priorities 1. Optimise 2013 Crop Yield & Quality - Individual farm plans based on crop set 2. Horticultural Review Major Recommendations - Agree Key Activities & Performance Indicators 3. Improve Return per KG - Benchmarking 4. Secure additional almond vol
Slide 8: WA Review Process
WA Review Process For personal use only Overview • SHV’s WA orchards located in Central West region, on Dandaragan Plateau • Current 3,949 acres planted Implementation issues have resulted in $20m write down Horticultural Review - completed Economic review underway - due 1H CY2013 8
Slide 9: Food Division Top Priorities
Food Division For personal use only Top 5 Priorities 1. Food quality, safety & hygiene initiatives (e.g. pasteuriser) 2. Optimising equipment efficiency on a prioritised payback hierarchy (e.g. 1 year payback) 3. Regain and strengthen customer/consumer trust post recall 4. Reduce operations and go t
Slide 10: Recall
Recall For personal use only • Voluntary precautionary recall of some Australian natural almond kernel products supplied to Woolworths • Select potential identified source and additional precautionary recalls made • Select maintains high standards of quality assurance: • HACCP and SGF2000 accreditat
Slide 11: New Structure & Team
New Structure & Team For personal use only Managing Director (Paul Thompson ) GM Sales & Marketing Group Trading Manager GM Horticulture GM Operations – Trading & Industrial CFO/Company Secretary HR Manager – Consumer Sales (Peter Ross) (Bruce van Twest) (Paul Chambers) (Tom Kite) (Mark Eva) (Lauren
Slide 12: Almond Price & Crop Update
Almond Price & Crop Update For personal use only • US Crop • USA 2012 Almond crop est. 1.9 billion pounds • Down 200 million pounds on earlier projections (equivalent to total Australian & Spanish almond crop) • SHV Crop Update • Good almond blossom & pollination • Weather conditions throughout have
Slide 13: Why Select – Reasons
Why Select – 10 Reasons For personal use only 1. Industry - Excellent industry fundamentals/global supply & demand 2. Company - Building a replenished & balanced team (Board & Management) 3. Model – Integrated business model 4. Culture Improvement - One Select 5. Performance Excellence - Initiatives
Slide 14: 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 generating
Slide 15: Appendix – Thank you
Appendix 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 15
Slide 16: Select Harvests & The Almond Industry Value Chain
Select Harvests & The Almond Industry Value Chain For personal use only Farming & Farm Management Processing Sales & Marketing Summary of Capability 17,151 acres (6,940 hectares “ha”) Primary Processing 30KT Consumer, Foodservice & Robinvale Vic Industrial businesses Diversified across Vic, NSW & WA
Slide 17: SHV Financial History
SHV Financial History For personal use only 2006 2007 2008 2009 2010 2011 2012 SHV Historical Summary Units Total Sales ($M) 217.9 229.5 224.7 248.6 238.4 248.3 246.8 EBITDA ($M) EBIT ($M) 38.4 40.5 27.1 26.8 26.0 22.6 (2.5) EBIT Margin (EBIT/Sales - %) (%) 17.6% 17.6% 12.1% 10.8% 10.9% 9.1% (1.0%)