Select Harvests Limited · ASX:SHV
Select Harvests — Shareholder Meeting (November 2018)
45 slides from Select Harvests's shareholder meeting presentation, Nov 29, 2018
Slide 1: Select Harvests Limited 2018 Annual General Meeting - Capitalising on Growth
Select Harvests Limited (ASX:SHV) 2018 Annual General Meeting - Capitalising on Growth 29 November 2018
Slide 2: Disclaimer & Basis of Preparation
Disclaimer & Basis of Preparation 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 take into account the in
Slide 3: Michael Iwaniw, Chairman
Z SELECT HARVESTS Michael Ilwaniw Chairman tat Suiiscl. Sony £ <1(/\> INGA FARMS. ALLINGA
Slide 4: Agenda
Agenda ▪ Chairman’s Address ▪ Managing Director’s Address ▪ AGM Resolutions 4
Slide 5: Select Harvests Board
Select Harvests Board ▪ Michael Iwaniw, Chairman, Appointed Chairman November 2011 ▪ Michael Carroll, Non-Executive Director, Appointed March 2009* ▪ Fred Grimwade, Non-Executive Director, Appointed July 2010* ▪ Nicki Anderson, Non-Executive Director, Appointed January 2016 ▪ Fiona Bennett, Non-Exec
Slide 6: FY18 Financial Overview
FY18 Financial Overview Almond Volume EBITDA1 Operating Cashflows 15,700 MT $51.7 m $18.3 m ↑ 11.3% ↑ 62.3% ↑ $13.6 m Maturity profile continues to deliver Due to higher almond volumes, pricing Result of higher earnings and working underlying volume growth and lower costs capital management NPAT Net
Slide 7: Select Harvests – Orchard Age Profile
Select Harvests – Orchard Age Profile Growth and improvement occurred in SHV orchard portfolio in recent years - acquisition, replants, greenfields 7
Slide 8: Almond Division - Yield Performance
Almond Division - Yield Performance Impacted by frost Industry Average Yield Industry Average Yield Strong performance vs Industry Standard across all immature age cohorts 8
Slide 9: Almond Volume Growth
Almond Volume Growth Investment in almond orchards ensures underlying organic earnings growth 9
Slide 10: Select Harvests Brand Presence in Asia
Select Harvests Brand Presence in Asia Middle New India China Indonesia Japan Philippines Thailand Malaysia Taiwan PNG Singapore Brunei East Zealand Lucky Sunsol NuVitality Renshaw Allinga Farms (inc. Inshell & Bulk Almonds) Our branded products are currently distributed across 13 countries in Asia
Slide 11: Corporate
Corporate Transition Period (1 July 2018 – 30 September 2018) - This change is being made to align our financial reporting with the Horticultural cycle to provide greater certainty and transparency Estimated Horticultural Cycle and New Reporting Timeframes New FY18/19 FY19/20 Oct-18 Nov-18 Dec-18 Ja
Slide 12: Corporate (cont.)
Corporate (cont.) Change to AASB16 Leasing Standard will impact Select Harvests and the company will adopt AASB16 for the FY2020 year, beginning 1 October 2019. - It will result in lease costs that were previously reported above EBITDA to be split into Depreciation and Finance costs, thereby impacti
Slide 13: Safety, Environment, People and Culture
Safety, Environment, People and Culture Safety FY 2017 FY 2018 FY 2018 measure outcome Safety LTIFR (Lost 15.1 17.4 +15% ▪ SHV’s Zero Harm Safety and Wellbeing Strategy focus is to: Time Injury - Prevent injury before it occurs Frequency - Improve our safety performance & individual wellbeing Rate)
Slide 14: Select Harvests – in control of our destiny
Select Harvests – in control of our destiny To be a Leader in the Supply of Better for You Plant Based Foods Trust & Respect Integrity & Diversity Sustainability Performance Innovation Values Treat all stakeholders with trust and respect All decisions and transactions will not compromise the Our foc
Slide 15: Paul Thompson, Managing Director
Paul Thompson Managing Director
Slide 16: FY18 Movement in SHV Group EBIT ($M)
FY18 Movement in SHV Group EBIT ($M) FY2018 result was positively impacted by the following: - Positive movements in the fair value of prior year crops - Increased volumes through additional bearing acres (15,700 MT in FY18 vs 14,100 MT in FY17) - Higher almond prices ($8.05/kg in FY18 vs $7.43/kg i
Slide 17: SHV Transition Period NPAT Result
SHV Transition Period NPAT Result No 2019 Crop profit has been recognised during the Transition Period: - All 2018 crop profit recognised in FY 30 June 2018 (1,578) - At point of preparing accounts the fair value of # (1.53) the crop cannot be reliably estimated - Full 2019 crop profit recognised du
Slide 18: SHV - Balance Sheet
SHV - Balance Sheet Balance Sheet Comparative Cashflow Jun-17 Jun-18 Sep-18 Full Year Three Months $M $M $M Jun-17 Jun-18 Sep-17 # Sep-18 Current Assets (exc. Cash) 135.4 161.7 152.8 $M $M $M $M Cash 1.1 0.4 6.9 Cashflow from Operations 4.7 18.3 23.8 24.9 Non-Current Assets 343.1 354.4 362.9 Cashflo
Slide 19: Almond Division
Z & SELECT HARVESTS »» Almond Division
Slide 20: FY18 & Transition Period - Almond Division
FY18 & Transition Period - Almond Division ▪ 2018 Crop volume increased to 15,700 tonnes (FY2017 14,100 tonnes) - up 11.3% - Crop potential significantly impacted by frost particularly in NSW, with mature tree average yield marginally down - New plantings maturity contributed 700 MT - Jubilee acquis
Slide 21: 2019 SHV Crop Update
2019 SHV Crop Update ▪ Crop - SHV 2019 Theoretical Crop (based on our orchard age profile and industry average yields) is 17,000 MT - Sufficient chill hours between seasons - Similar Frost events in Northern and Central regions to 2018, but the installation of 77 frost fans have provided good protec
Slide 22: Video - Phytech
Video - Phytech Press CTRL and right click on the link below to get the video to appear – then press play. https://vimeo.com/303210123 22
Slide 23: Food Division
Z SELECT HARVESTS Food Division ee. @ Sunsol, NuwVitality.
Slide 24: FY18 & Transition Period - Food Division
FY18 & Transition Period - Food Division ▪ Strong Industrial Sales - Industrial revenue and volumes increased due to higher demand for almonds by Asian food processors - Value-added products (Parboil) attracting strong interest ▪ Sales growth for Sunsol - Strong demand in domestic sales, seek range
Slide 25: China
China Australian roasted almonds mixed nuts ZB, SELECT HARVESTS " Australian roasted mixed nuts Australian roasted almonds NuVitality. daily nuts trail mix Se a SS 25
Slide 26: Singles Day Gift Pack Promotions via Alibaba; China Lucky range
Singles Day Gift Pack Promotions available via Alibaba channels China Lucky product range at China Lucky range at PepsiCo stand during China International Jing Hui Shanghai Supermarket Import Export (CIIE) Shanghai ( >150,000 visitors) 26
Slide 27: Australian Almond Exports to China are Increasing
Australian Almond Exports to China are Increasing Source: Californian and Australian Position Reports SHV has been part of this growth, with strong value-added sales into food processors 27
Slide 28: Australian vs. US Almond Exports to China
Australian vs. US Almond Exports to China Source: Californian and Australian Position Reports Market demand is strong despite US/China disruption 28
Slide 29: Ongoing Demand for plant-based foods
Ongoing Demand for plant-based foods Baby Boomer staples Millennials staples Per 100g/100ml Per 100g/100ml Sugars (g) Protein Sat Fat Sodium Sugars (g) Protein (g) Sat Fat (g) Sodium (g) (g) (mg) (mg) 90.4 70.4 28.8 4.21 137.9 37.2 43.4 1,120 -34.5% +89.2% -33.7% -62.5% * Source: Product packing Alm
Slide 30: Business Outlook
SELECT HARVESTS Business Outlook NuvVitality.
Slide 31: Prepared for the Future
Prepared for the Future Closing the Loop Waste for H2E is potash. Potash is being composted with other orchard waste and returned to orchards to ameliorate the soil Objective: Sustainability & cost savings New Varieties Trial New local high-yielding and/or self-pollinating variety trials have been p
Slide 32: Video – H2E
Video – H2E Press CTRL and right click on the link below to get the video to appear – then press play. https://vimeo.com/303210589 32
Slide 33: Key Take Outs
Key Take Outs ■ Fundamentals of the business & industry remain strong – Global consumption of plant protein & almonds continues to grow at 6-8% per annum ■ Orchard health – Strong crop potential that should be above industry standard yield and no quality concerns ■ Cost Focus – Focus continues to re
Slide 34: Consideration of The Financial Statements & Reports
Annual General Meeting 29 November 2018 Consideration of The Financial Statements & Reports 34
Slide 35: Resolution #1: Remuneration Report
Resolution #1: Remuneration Report 35
Slide 36: Resolution #1: Remuneration Report
Resolution #1: Remuneration Report For: Against: Open-Usable: 36
Slide 37: Resolution #2(a): Election of Michael Carroll
Resolution #2(a): Election of Michael Carroll 37
Slide 38: Resolution #2(a): Election of Michael Carroll
Resolution #2(a): Election of Michael Carroll For: Against: Open-Usable: 38
Slide 39: Resolution #2(b): Election of Fred Grimwade
Resolution #2(b): Election of Fred Grimwade 39
Slide 40: Resolution #2(b): Election of Fred Grimwade
Resolution #2(b): Election of Fred Grimwade For: Against: Open-Usable: 40
Slide 41: Discussion
Discussion NY ZB, SELECT HARVESTS (172) Suiniiol HOE luVitality. Se a SS
Slide 42: Thank you
Thank you Please direct any queries to: Paul Thompson Brad Crump 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 found on the Select Harvest
Slide 43: Select Harvests - Financial History
Select Harvests - Financial History 2006 2007 2008 2009 2010 2011 2012 2013 2014* 2015 2016 2017 2018 SHV Historical Summary Units Total Revenue (A$M) 218.0 229.8 224.8 248.7 239.1 250.0 251.3 191.1 188.3 223.6 286.2 242.1 210.2 EBIT (A$M) 38.4 40.5 27.1 26.8 26.0 22.6 19.6 37.7 31.3 89.6 41.3 17.0
Slide 44: Useful Almond Industry websites Definitions & Explanations
Useful Almond Industry websites Industry Associations ▪ Californian Almond Board www.almondboard.com ▪ Almond Board of Australia www.australianalmonds.com.au ▪ Nuts for Life www.nutsforlife.com.au ▪ Nuts for Life – Almond Health Facts www.nutsforlife.com.au/nut-fact-sheets/almondhealthfacts/ Industr
Slide 45: Thank you
Thank you Please direct any queries to: Paul Thompson Brad Crump 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 found on the Select Harvest
Select Harvests — Shareholder Meeting (November 2018) on 6ix