Select Harvests Limited · ASX:SHV

Select Harvests — Investor Presentation (May 2015)

34 slides from Select Harvests's investor presentation, May 19, 2015

1. Slide 1: Select Harvests Limited Investor Presentation May 2015

   For personal use only Select Harvests Limited (“SHV”) Paul Chambers, Chief Financial Officer Investor Presentation May 2015

2. 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

3. Slide 3: Agenda

   Agenda For personal use only • SHV- Key Drivers & Assets • SHV - Strategy & Activities Update • SHV- Review • SHV - 2015 Crop Update • Almond Market Global Trends • SHV – Business Focus 3 3

4. Slide 4: SHV - Overview

   SHV - Overview For personal use only  Select Harvests is listed on the Australian Securities Exchange (ASX:SHV)  SHV market capitalisation is A$662 million  71,435,801 shares @ A$9.27/share as at 6 May 2015  SHV is headquartered at Thomastown in Melbourne’s Northern suburbs  SHV employs approx.

5. Slide 5: SHV Key Assets - Almond

   SHV Key Assets - Almond For personal use only  Existing portfolio – 18,000 acres  Circa 13,000 acres almond trees  60% owned, 40% leased  Average age 11 years old  Unplanted land bank of 5,000 acres  Geographically diversified – orchards spread across NSW/VIC/SA  Orchard  Investment in risk

6. Slide 6: SHV Key Assets - Orchards - Geographic Diversity & Scale

   SHV Key Assets - Orchards - Geographic Diversity & Scale For personal use only Geographic diversity limits exposure to: − Weather − Disease spread − Insect infestation Amaroo to Robinvale Distance: 225 km Drive Time: 2.5 hours Grewal to Robinvale Distance: 140 km Drive Time: 1.8 hours Mendook to Rob

7. Slide 7: SHV Key Assets - Orchard Profile - Young Orchards PLUS Longevity

   SHV Key Assets - Orchard Profile - Young Orchards PLUS Longevity For personal use only Land bank Planted acreage age profile 50.0% (% of total land holding) 45.0% 40.0% 35.0% 25% 67% 8% Planted orchards are Planted orchards in economic sweet spot - Planted orchards post 30.0% low capex & high cash g

8. Slide 8: SHV Key Assets - Food

   SHV Key Assets - Food For personal use only  Food Business Sales 1H15 – A$71M  Industrial & Trading Sales 1H15 A$35M  Packaged Food Sales 1H15 A$36M  Branded sales $19M  up 14% on 1H14 - 13% from new products  Lucky Brand market position  39.1% share-12 month MAT 31 March 2015  Unbranded sal

9. Slide 9: 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

10. Slide 10: Recent New Product Development - Packaged Food

    Recent New Product Development - Packaged Food For personal use only 10 10

11. Slide 11: Recent New Product Development - Trading & Industrial

    Recent New Product Development - Trading & Industrial For personal use only 11 11

12. Slide 12: SHV - Review

    SHV - Review For personal use only  Select Harvests has undergone significant transformation in last 5 years  Undertook a deliberate move to more directly expose shareholders to the compelling fundamentals of almonds & healthy eating  Select Harvests has transition from predominantly a manager of

13. Slide 13: SHV Strategy - Objectives & Activities

    SHV Strategy - Objectives & Activities For personal use only FY13 INITIATIVES FY14 INITIATIVES FY15 INITIATIVES 1. CONTROL CRITICAL MASS Secure the critical mass of nuts • Acquired 1,286 acres almond orchard • Acquired 680 acres planted orchard • Acquired 2,481 acres planted orchard OF ALMONDS neede

14. Slide 14: SHV Productivity - Controllable Improvements

    SHV Productivity - Controllable Improvements For personal use only  People/OHS/Safety – Right people, right training, right systems, right resources  Intangible impact – difficult to measure entire specific impact – collectively reveals itself in improved productivity & results  Orchard Productiv

15. Slide 15: 2015 Crop Update

    2015 Crop Update For personal use only  Harvest Progress Update  100% of crop harvested  Volume Update  13,400 tonnes (In line with previous guidance)  Processing Update  36% of est. crop has been processed  Quality is good as expected  Level of insect damage is lower than 2014  Higher in-s

16. Slide 16: Global Trends

    Global Trends For personal use only  Demand has been Nuts growing for the last 5 years and continues to grow:  Almonds offer a unique matrix of nutrients and have been clearly linked with improved heart health.  Significant promotion by Industry  Programs focused on promoting the nutritional ben

17. Slide 17: 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

18. Slide 18: Demand – Developing World Remains a Massive Opportunity

    Demand – Developing World Remains a Massive Opportunity For personal use only Population Growth and Demand from Developing Markets  Global demand for almonds is being driven by population growth in destinations such as India, Middle East and China. CAGR (2008/09-2013/14) – 5 Years – 6.9%  Americas

19. Slide 19: Demand - Asia has only Just Started

    Demand - Asia has only Just Started For personal use only 2005/06 2009/10 2013/14 Increase 2005/06 - 2009/10 Increase 2005/06 - 20013/14 USA Export Million lbs % of Total Million lbs % of Total Million lbs % of Total Million lbs % Million lbs % Shipments Shipments Shipments Shipments China 17 2% 133

20. Slide 20: Supply – Difficult to substitute

    Supply – Difficult to substitute For personal use only Global Tree Nut Production 2006-2012 1,200,000 Almond Share of Global Tree Nut Production 2006 2012 Increase 1,000,000 Volume - Tree Nuts 2.77MT 3.41MT 0.64MT Volume - Almonds 0.67MT 1.06MT 0.39MT % of Global Tree Nut Production - Almonds 24% 31

21. Slide 21: Supply Future

    Supply Future Annual Almond Planting (USA & Australia) - acres For personal use only 80,000 70,000 60,000 Annual Planting Area (acres) 55,712 50,000 40,000 38,300 30,000 20,887 20,000 10,000 0 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 20

22. Slide 22: Price – Affordability - 2015

    Price – Affordability - 2015 For personal use only Source: Protein Data - Australian Institute of Sport (AIS) . Pricing based on company survey (on-line Australian retail pricing, April 2015). Almonds are one of the most affordable protein sources across all food types 22 22

23. Slide 23: 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 Too ea

24. Slide 24: US Update

    US Update For personal use only  Californian Almond Board – April 2015 Position Report  http://www.almonds.com/sites/default/files/content/newsletters/attachments/2015.04posrpt.pdf  US Shipments  April US shipments - 151 million lbs - a record and 10% higher than April 2014  US Export shipments

25. Slide 25: SHV- Business Focus

    SHV- Business Focus For personal use only 1. Acquire mature cash generating almond orchards 2. Develop green field almond orchards 3. Invest in orchard productivity 4. Invest in energy savings and sustainability: Cogen 5. Invest in new products (Food business) 6. Invest in manufacturing and supply c

26. Slide 26: 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 Please note that background material/data regarding the global almond industry can be fo

27. Slide 27: SHV - Almond Division - Risk Mitigation

    SHV - Almond Division - Risk Mitigation For personal use only Area Action 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 Standa

28. Slide 28: Select Harvests - Financial History

    Select Harvests - Financial History For personal use only SHV Historical Summary Units 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Sales (A$M) 217.9 229.5 224.7 248.6 238.4 248.3 251.3 191.1 188.3 EBIT (A$M) 38.4 40.5 27.1 26.8 26.0 22.6 19.6 37.7 41.8 EBIT Margin (EBIT/Sales - %) (%) 17.6% 1

29. Slide 29: Almond Pre-Cleaner & Crop Dryer

    Almond Pre-Cleaner & Crop Dryer For personal use only  Background  In 2014, Carina West Processing Plant received 56% of field product with a hull moisture level higher than the desired 15% moisture  This impacted quality, efficiency and cost  Solution  Install Almond Pre-Cleaner and Crop Dryer

30. Slide 30: Project H2E – Hull to Energy

    Project H2E – Hull to Energy For personal use only “Abates 23,645 tonnes of greenhouse gas emissions equivalent to removing 8,210 cars off the road” “Provides enough energy to power 2984 homes” Stage 1  Bundle Carina West Processing + Carina Dam 1 + Carina Dam 2 by laying connecting cable into one

31. Slide 31: Costs - SHV Orchards

    Costs - SHV Orchards For personal use only SHV FY2014 Horticulture Costs Forecast Actual by Percentage Others 14% Labour 19% Harvest 11% Fert & Chem Fixed 20% 11% Water 6% Bee Energy 5% 14% Labour Fert & Chem Bee Energy Water Fixed Harvest Others A significant portion of our horticultural costs are

32. Slide 32: 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) 32 32

33. Slide 33: SHV - Board

    SHV - Board For personal use only Michael Iwaniw Michael Iwaniw was appointed as Chairman of Select Harvests in November 2011 following a career spanning 40 years in Australian agribusiness. He became Chairman Managing Director of the Australian Barley Board (ABB) in 1989, retiring from the role som

34. Slide 34: SHV – Executive Team

    SHV – Executive Team For personal use only Paul Chambers Joined Select Harvests as Chief Financial Officer and Company Secretary in September 2007. He is a Chartered Accountant and has over 25 years experience in senior CFO & Company financial management roles in Australian and European organisation

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