Slide 1: FY15 Results Presentation
For personal use only Select Harvests Limited (“SHV”) FY15 Results Presentation 21 August 2015
Slide 2: Disclaimer & Basis of Preparation
Disclaimer & Basis of Preparation For personal use only 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 does not ta
Slide 3: Agenda
Agenda For personal use only Overview & Highlights Results Discussion & Analysis Strategy & Projects Crop Update Outlook Appendices 3 3
Slide 4: FY15 Financial Overview
FY15 Financial Overview For personal use only Reported FY15 Net Profit after Tax (NPAT) of $56.8m is a record - up 163% (Note: Restated FY14 Reported NPAT* of $21.6m) Reported EBIT $85.9m (FY14 EBIT* $31.3m) - up 174% Operating cash flow $34.2m (FY14 $23.1m) - up 32% Net Debt $109.7m - Gea
Slide 5: Understanding FY15 Result
Understanding FY15 Result For personal use only Reported FY15 Net Profit after Tax (NPAT) $56.8m Impact of non-recurring items $2.6m Acquisition costs per Amaroo and Mullroo Underlying FY15 Net Profit after Tax (NPAT) $59.4m Impact of change to accounting standards $3.8m The company has early ad
Slide 6: Business Highlights
Business Highlights For personal use only Record almond crop & price Acquisition of 2 orchards Funding initiatives - Equity Raising, Sale and Leaseback Growth of branded and industrial sales Improve productivity of processing facilities Benefits of risk mitigation strategy Further inve
Slide 7: Changes to Accounting Standards
Changes to Accounting Standards For personal use only SHV has elected to early adopt changes to Accounting Standards AASB 116, Property, Plant & Equipment, and AASB 141, Agriculture, which are required to be implemented no later than reporting period commencing 1 July 2016 The changes impact the
Slide 8: Income Statement
Income Statement For personal use only Restated FY14 FY15 FY14 result restated for changes to Accounting Standards Financial Result ($m) ($m) Reported Result FY15 Underlying EBIT $89.6m (FY14 $31.3m) EBIT - Reported 31.3 85.9 Almond Division Underling EBIT $87.5m (FY14 $30.3m) Interest (4.5) (
Slide 9: Balance Sheet
Balance Sheet For personal use only Restated Jun-14 Jun-15 Equity raising (Aug 2014) to fund growth & acquisitions Year Ending Balance Sheet ($m) ($m) Net Debt $109.7m (FY14 $94.8m) Current Assets excl. Cash 130.3 207.5 Cash 6.3 0.3 Gearing (Net debt/equity) 38.2% Non Current Assets 194.1 280.
Slide 10: Cash Flow
Cash Flow For personal use only FY14 FY15 Increased working capital due to acquired orchards Cash Flow ($m) ($m) and increased value of unsold 2015 crop EBITDA 45.6 96.4 The majority of the 2015 crop held at 30 June Change in Working Capital (17.8) (61.0) expected to convert to cash in FY16 Net
Slide 11: Almond Division
Almond Division For personal use only Almond Division ($m) FY14 FY15 Underlying EBIT 30.3 87.5 Financials Volume: FY15 crop volume est. 14,500 tonnes (FY14 10,500 tonnes) - up 38% - in line with guidance Processing: Hulling & shelling complete mid August – yield and quality good Price: FY15 pr
Slide 12: Food Division
Food Division For personal use only Food Division ($m) FY14 FY15 Underlying EBIT 5.6 6.4 Financials Revenue of A$138.8 million was up 17.7% (A$117.9 million FY14) Improved sales mix driven margin improvement Industrial sales up 28% Branded consumer sales – up 9% Highlights Industrial sales
Slide 13: SHV - Strategic Objectives & Activities Overview
SHV - Strategic Objectives & Activities Overview For personal use only FY13 INITIATIVES FY14 INITIATIVES FY15 INITIATIVES FY 15 + 1. CONTROL CRITICAL Secure the critical mass of • Acquired 1,286 acres almond • Acquired 680 acres planted • Acquired 2,481 acres planted • Acquire mature orchards MASS O
Slide 14: Almond Orchard Expansion
Almond Orchard Expansion For personal use only Strategic Objective: Grow the critical mass of almonds 20,000 tonnes by FY24/25 Project Objectives Identify & secure suitable funding methods to fund the development of greenfield almond orchards. Develop existing infrastructure at Amaroo, Mullroo
Slide 15: Project H2E – Hull to Energy
Project H2E – Hull to Energy For personal use only Strategic Objective: Substantially improve the almond processing plant’s competitiveness and ongoing viability by reducing its cost base by 20% Project Objectives: Stage 1 Bundle Carina West Processing and 2 nearby dams by laying connecting cabl
Slide 16: Project Parboil – Almond Value Add
Project Parboil – Almond Value Add For personal use only Strategic Objectives: Address the current capacity shortfall of “value add” almond products Open sales opportunities from customers demanding peanut-free processing environments Project Objectives: Establish a new state-of-the-art ‘value
Slide 17: Global Market Update
Global Market Update For personal use only Demand 2014/15 Global supply has been absorbed by demand, with US carryover stock between seasons remaining flat. US and Indian demand remains strong Australia - March 2014-Feb 2015: 212 products with almond ingredients were launched in Australian sup
Slide 18: Select Harvests Crop Update
Select Harvests Crop Update For personal use only There was sufficient time for good post harvest programs to be applied after 2014/15 harvest. Colder than normal temperatures has ensured adequate chill hours in all regions. Bloom has commenced in all regions and all bees are in place. Polli
Slide 19: 2016 Business Objectives
2016 Business Objectives For personal use only 1. Roll out Zero Harm OH&S strategy – deliver 25% y.o.y. reduction in LTI’s 2. Improve mature tree yield equal to / greater than 1.3 tonnes/acre (3.2 tonnes/ha) 3. Acquire orchards at the right price 4. Implement greenfield program 5. Implement Biomass/
Slide 20: Thank you
For personal use only Join us on Instagram for Thank you regular snaps on Orchards, Food Business & Products Please direct any queries to: Paul Thompson Paul Chambers Andrew Angus Managing Director Chief Financial Officer Investor Relations +61 3 9474 3544 +61 3 9474 3544 +61 402 823 757 20 20
Slide 21: Select's Financial history
Select’s Financial history For personal use only 2006 2007 2008 2009 2010 2011 2012 2013 2014* 2015 SHV Historical Summary Units Total Sales (A$M) 217.9 229.5 224.7 248.6 238.4 248.3 251.3 191.1 188.1 223.5 EBIT (A$M) 38.4 40.5 27.1 26.8 26.0 22.6 19.6 37.7 31.3 89.6 EBIT Margin (EBIT/Sales - %) (%)
Slide 22: SHV orchard profile (as at June 2015)
SHV orchard profile (as at 30 June 2015) For personal use only Almond orchard Planted Orchard Planted Orchard Bearing Orchard Bearing Orchards portfolio Area (acres) Area (hectares) Area (acres) Area (hectares) Northern Region Owned 1,491 604 1,423 576 Leased 3,017 1,221 3,017 1,221 Total 4,508 1,82
Slide 23: Global Supply & Demand
Global Supply & Demand For personal use only Worldwide demand for almonds has doubled over the past ten years Global almond production has increased from 900 million pounds in 2000 to 2.4 million pounds in 2015 The increase in global supply represents an averaged increase of 100 million lbs pe
Slide 24: Almond price
Almond price For personal use only Note: this chart is for indicative purposes only – it represents one premium almond grade (of the many that Select Harvests produce and sell) and its sole reason for inclusion is to give the reader an understanding of the historical relativity of the current almond
Slide 25: Global Demand – Diverse. High Growth
Global Demand – Diverse. High Growth For personal use only Almonds have held the No.1 position in global tree nut innovations since 2006 (35% market share 2013). Long term US per capita consumption of almond outpaces all other tree nuts (376% growth since 1980) 25 25
Slide 26: US Snowpack
US Snowpack For personal use only 1976/77 was previous worst snowpack on record – current situation is consistent with that 26 26
Slide 27: Global Supply - US Almond Production & Drought
Global Supply - US Almond Production & Drought For personal use only 14% - North Counties % of US Almond Prod’n 86% Orange States = Severe Drought 86% South Counties South Counties % of US Red States = Extreme Drought % of US Almond Prod’n Dark Brown States – Exceptional Drought Almond Prod’n 26 Aug
Slide 28: US Reservoirs
US Reservoirs For personal use only All reservoirs are well below their historical average levels, some considerably. 28 28
Slide 29: US Groundwater
US Groundwater For personal use only Groundwater Basins designated High Priority (Brown) for monitoring & conservation – location of US almond industry 29 29
Slide 30: SHV Key Assets - Food - Brands
SHV Key Assets - Food - Brands For personal use only • Market leader in the cooking nut category. • Cooking Nut product range: almonds, walnuts, cashews, hazelnuts, brazil nuts, pine nuts, pistachios, macadamias, sunflower seeds and pepitas (Value share 36.8% as at 20/7/14. Source Aztec National Cha
Slide 31: Thank you
For personal use only Thank you Please direct any queries to: Paul Thompson Paul Chambers Andrew Angus Managing Director Chief Financial Officer Investor Relations +61 3 9474 3544 +61 3 9474 3544 +61 402 823 757 31 31