Select Harvests Limited · ASX:SHV
Select Harvests — H1 2009 Earnings Presentation
14 slides from Select Harvests's earnings presentation, Mar 3, 2009
Slide 1: Investing for a Healthy Future: Half Year Results Presentation
For personal use only Investing for a Healthy Future Results Results Presentation Presentation YearEnded Half Year Ended3130 June 2008 December 2008
Slide 2: Highlights
HIGHLIGHTS For personal use only Net profit after tax growth +10%, earnings per share growth +9.4% Net sales growth +14.8% Earnings before interest and taxes growth +17.3% 2009 crop estimate up 35% Food business turnaround on track Capital management plan developed to fund growth in West
Slide 3: Financial Results Half Year Ended 31 December 2008
FINANCIAL RESULTS HALF YEAR ENDED 31 DECEMBER 2008 For personal use only Half Year Half Year % increase (A$’000) ended ended (decrease) 31/12/07 31/12/08 Sales Revenue 115,191 132,233 +14.8% EBIT Management Services 12,151 12,195 Almond Orchards 1,176 2,261 Almond Division 13,327 14,456 +8.4% Food D
Slide 4: Divisional Performance
DIVISIONAL PERFORMANCE For personal use only Group EBIT 2003 2004 2005 2006 2007 2008 2009 Half Year $’000 Owned orchards 7,687 8,804 13,706 14,147 11,567 2,853 2,261 Managed orchards 6,099 9,460 12,564 17,928 25,260 26,661 12,195 Almond Division 13,786 18,264 26,270 32,075 36,827 29,514 14,456 Food
Slide 5: Balance Sheet
BALANCE SHEET For personal use only 2007 2008 $’000 $’000 Current Assets 60,976 73,044 Cash On Hand 7,458 3,671 Non Current Assets 105,071 123,871 Total Assets 173,505 200,586 Current Liabilities 24,570 28,532 Borrowings 44,122 62,704 Non Current Liabilities 12,432 13,796 Total Liabilities 81,124 10
Slide 6: Almond Division
ALMOND DIVISION For personal use only EBIT up 8.4% on previous year Company continues to produce good crops utilising 20% less water Water allocations similar to last year but lower pricing for temporary water reduced impact on company orchards Initial estimates for 2009 harvest are +35% for a
Slide 7: Food Products Division
FOOD PRODUCTS DIVISION For personal use only Revenue up 7.6% on previous year EBIT up 45.4% on previous year Improved performance Ability to grow margins remains difficult in current environment The benefits of consolidation of processing sites beginning to flow through Focus is now on: Su
Slide 8: Select Harvests Business Model
SELECT HARVESTS BUSINESS MODEL For personal use only Select Harvests is a solid company with a good history of performance Developed 36,600 acres of new almond orchards over last 10 years and is a major global player in the almond industry Core to Select Harvests business model is the receipt
Slide 9: Select Harvests Current Position
SELECT HARVESTS CURRENT POSITION For personal use only History of performance and growth Demonstrated ability to manage business through drought, cost increases and other difficulties Business model is receipt of annuity – type management service fees Income stream is reliable as not directl
Slide 10: Select Harvests Growth Plans
SELECT HARVESTS GROWTH PLANS For personal use only Select Harvests objective is to continue to develop and expand its business Select Harvests key growth strategy is to establish an orchard foot print in Western Australia Provides diversification of growing regions and use of more secure water
Slide 11: West Australia Project
WEST AUSTRALIA PROJECT For personal use only Select Harvests plan to develop 5,500 acres of almond orchards over next few years Stage 1 – 2,000 acres to be planted in Winter 2009 Land acquired and all planning completed 10,000ml water license has been approved Stage 2 – 3,500 acres Land
Slide 12: Capital Management
CAPITAL MANAGEMENT For personal use only Select Harvests to date has had a sound business strategy with a policy of conservative capital management Select Harvests increased core debt in last financial year primarily to fund new almond processing facility, which provides capacity to process futu
Slide 13: Almond Price and Exchange Rate Charts
For personal use only $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 Jan-93 Jul-93 Jan-94 Jul-94 Jan-95 Jul-95 Jan-96 Jul-96 Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 Jan-93 Jul-02 Jul-93 Jan-03 Jan-94
Slide 14: USA Supply Position
For personal use only (million lbs) 0.0 200.0 400.0 600.0 800.0 1000.0 1200.0 1400.0 1600.0 0.0 200.0 400.0 600.0 800.0 1000.0 1200.0 1400.0 1600.0 19 82 1982 19 83 1983 19 84 1984 19 85 1985 19 86 1986 19 87 1987 19 88 1988 19 89 1989 19 90 1990 19 91 1991 Production 19 92 1992 19 93 1993 Crop (mil