Select Harvests Limited · ASX:SHV
Select Harvests — Shareholder Meeting (October 2010)
16 slides from Select Harvests's shareholder meeting presentation, Oct 27, 2010
Slide 1: Annual General Meeting
For personal use only Annual General Meeting 27th October 2010 John Bird, Chief Executive
Slide 2: Strategy to deliver growth
Strategy to deliver growth For personal use only § Expand Company Orchards, geographic diversification : COMPANY § Acquire or lease established orchards across established growing ORCHARDS regions (e.g. Hillston, Lake Powell) (WA, VIC, NSW) § Develop orchards in WA where new plantings are economical
Slide 3: Solid EBIT performance in year of transition
Solid EBIT performance in year of transition For personal use only OPERATING EBIT ORCHARD DEVELOPMENT 2009: $30.0m* • Nursery 2010: $29.6m • Orchard Establishment COMPANY ORCHARDS EBIT 2009: $2.7m MANAGED ORCHARDS EBIT ORCHARD MANAGEMENT 2010: $6.8m 2009: $13.7m* • Almond growing ACRES: 3,600 2010:
Slide 4: Almond division – Managed Orchards
Almond division – Managed Orchards For personal use only § 3 year management agreement with Olam now well established § 2010 crop lower than earlier estimate and normal yield expectations due to: § Legacy transition issues following transition to new ownership § Cumulative impact of three years of r
Slide 5: Expansion of Company Orchards
Expansion of Company Orchards For personal use only § Increased Company Orchards through: § Lease of 3,000 acres established orchards in Hillston, NSW § Planting of 2,000 acres in WA § 300 acres transitioned from Managed to Company Orchards § Acquisition of 530 acres at Lake Powell § Company Orchard
Slide 6: Improved water position
Improved water position For personal use only § Murray River water license allocations for 2010 /2011 at 100% § Hume Dam currently at 99% vs 40% last year § Orchard water applications returned to normal levels after three years of a restricted program § Long-term Murray Darling Basin Plan still in d
Slide 7: Food division
Food division For personal use only § Continued improvement in EBIT performance following re-alignment of business § Almond marketing fee income impacted by 2010 crop volume and timing of harvest § Focus on growing almond sales, up 15% on last year § Significant improvement in ‘value added” EBIT, up
Slide 8: Global demand expected to exceed supply by 2013/14
Global demand expected to exceed supply by 2013/14 For personal use only § Global market worth an estimated US$4.5 billion § Stable market: 9% annual average consumption growth since 2000 § Restricted supply § Slow down in plantings - lack of suitable growing conditions, land and water § Long lead t
Slide 9: Stable almond price
For personal use only Stable almond price 9
Slide 10: Australian almond industry
Australian almond industry For personal use only Australia is set to become the world’s no.2 global almond producer by 2015 ü Advantageous natural environment ü Premium quality crop – 50% of Australia’s crop is the premium nonpareil variety ü Well positioned to serve increasing demand from emerging
Slide 11: Compelling drivers of growth
Compelling drivers of growth For personal use only Volume growth from existing orchards reaching full maturity § 43,300 acres under management, including 9,100 acres Company Orchards § Expected to generate over 52,000 mt at full maturity based on industry standard yield projections Expand company or
Slide 12: Volume growth from maturity profile
Volume growth from maturity profile For personal use only § Australian almond industry is set to grow significantly as orchards reach maturity § Over 70% planted 2004 onwards § Production expected to grow at 17.5% annual growth rate (2008-2015) § Australia set to surpass Spain as the number two prod
Slide 13: Expanded footprint in Victoria and NSW
Expanded footprint in Victoria and NSW For personal use only § Expanded footprint in NSW via long lease agreements with Rural Funds Management § 3,000 acres near Hillston, NSW § 20 year lease, annual rental payment § Expected to deliver first crop in 2011 § 3,600 acres of Company Orchards in Robinva
Slide 14: Growth in Western Australia
Growth in Western Australia For personal use only § 4,300 acres plus 22,000 ML of permanent water licenses § Dandaragan plateau region is in the northern wheat belt Dandaragan of WA Plateau § Entry cost below replacement cost in Victoria and New South Wales § Stage 1 development of 2,000 acres of gr
Slide 15: WA greenfield development - Phase One
WA greenfield development - Phase One For personal use only
Slide 16: Outlook
Outlook For personal use only “The fundamentals of the global almond industry remain very attractive with demand expected to outstrip supply within five years. Through the initiatives we’ve undertaken this year Select Harvests is well positioned to grow and diversify its portfolio of owned, leased a