Select Harvests Limited · ASX:SHV
Select Harvests — Shareholder Meeting (February 2021)
48 slides from Select Harvests's shareholder meeting presentation, Feb 26, 2021
Slide 1: 2020 Annual General Meeting – Platformed for Growth
Click to edit Master title style Select Harvests Limited (ASX:SHV) 2020 Annual General Meeting – Platformed for Growth 11am Friday 26 February 2021 Click to edit Master text styles 1
Slide 2: Michael Iwaniw – Chairman
Click to edit Master title style Michael Iwaniw – Chairman Wemen Farm – October 2015 Click to edit Master text styles Bunargool Orchard Blossom 2018 2 22
Slide 3: Select Harvests Board
Select Harvests Click to Boardtitle style edit Master 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 Januar
Slide 4: Disclaimer & Basis of Preparation
Disclaimer & Basis Click to edit of title Master Preparation style 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
Slide 5: Agenda
Agenda Click to edit Master title style Chairman’s Address • FY2020 Review • Strategy Update • Company and Market Outlook Managing Director’s Address • Sustainability Report • Almond Division Outlook • Food Division and Corporate Outlook • 2020/21 Priorities AGM Resolutions Click to edit Maste
Slide 6: Virtual Meeting Guidelines
Virtual Meeting Click to Guidelines edit Master title style Today’s meeting is being held online via the Lumi platform. This allows Shareholders, Proxies and Guest to attend the meeting virtually. All attendees can watch a live webcast of the meeting. In addition, shareholders and proxies have the a
Slide 7: Online Attendees – Question Process
Online Attendees Click to – Question edit Master Process title style Click to edit Master text styles 7 77
Slide 8: Online Attendees - Voting Process
Online Attendees Click to - Voting edit Master Process title style Click to edit Master text styles 8 88
Slide 9: Chairman’s Address
Click to edit Master title style Chairman’s Address Click to edit Master text styles 9 99
Slide 10: FY2020 Financial Overview
FY2020 Financial Overview Click to The edit Master title stylesupport. Stable earnings, solid margins and low net debt. Timing of operating cash flows impacted by COVID-19. company did not receive Job Keeper 1 Earnings per Share (Basic) $25.0m $57.8m 26 cents Final dividend of 4c fully franked 10.1%
Slide 11: FY2020 Operating Overview
FY2020 Operating Overview Click to edit Master title style A record almond crop was offset by lower almond prices and higher water costs Almond Crop Average Almond Price Annual Water Costs 23,250 MT $7.50/kg $21.5m Estimated record US crop and Record, or near record, water COVID-19 market access iss
Slide 12: Optimise Our Almond Base - Yield Performance
Optimise Our Almond Base - Yield Performance Click to edit Master title abovestyle A second consecutive year of yield outperformance across all age cohorts. Immature orchards delivered an additional 2,029 MT industry standard yields in FY2020 Immature Mature Click to edit Master text styles 12 1212
Slide 13: Expand strategically - Orchard Profile
Expand strategically - Orchard Profile Company owned orchards 56% and leased orchards 44% Click to edit Master title style Piangil Acquisition Select Harvests Planted Almond Hectares • 1,566HA of almond orchards (25% immature) • 2,499 ML of water entitlements Update • Settlement concluded 18th Dec 2
Slide 14: Balance Sheet
Balance Sheet Clickforto edit Master title style Balance sheet remains in a strong position, with low net bank debt and sufficient headroom growth Year Ending Balance Sheet ■ The book value of SHV owned orchards, the Carina West $ millions FY2020 FY2019 Processing Facility (CWPF) and permanent water
Slide 15: Food Division Review & Restructure
Food Division Review & Restructure Click to edit Master title style Management and the Board undertook an extensive review of the Food Business. This review included assessments on: • Upgrading the existing Thomastown facility • Developing a new production facility • Outsourcing value-added produc
Slide 16: Almond Prices
Almond Prices Click toand pounds edit Master uncertainty aroundtitle style2021 U.S. almond crop Almond prices remain subdued with the realisation that the 2020 US crop will exceed 3.0 billion the upcoming Almond Prices Almond Shipments An estimated record US almond crop and challenges related to
Slide 17: Mike Carroll Retirement
Click Mike to edit Carroll Master title style Retirement Director 2009 - 2020 • Chair Nominations and Remuneration Committee • Former member of Audit & Risk Committee • Member of Mergers and Acquisitions Committee Click to edit Master text styles 17 1717
Slide 18: Paul Thompson – Managing Director
Click to edit Master title style Paul Thompson – Managing Director Wemen Farm – October 2015 Click to edit Master text styles Bunargool Orchard Blossom 2018 18 1818
Slide 19: Select Harvests Strategy
Select Harvests Strategy Click to edit Master title style Select Harvests – in control of our destiny Click to edit Master text styles 19 1919
Slide 20: People Planet Profit
Triple Bottom Line Click to edit Master title style Committed to reporting our sustainability performance bi-annually People Ethics & Integrity, OHS & Wellbeing, Inclusion & Diversity, Human Health & Nutrition, Food Safety, Sourcing Sustainability Profit Planet Positive absolute shareholder returns,
Slide 21: Triple Bottom Line
Triple Bottom Line Click to edit Master title style Committed to reporting our sustainability performance bi-annually 1. Occupational Health and Safety 2. Food Safety, Product Labelling and Quality 3. Water Management and Stewardship 4. Environment Impact 5. Climate Change 6. Financial Performance a
Slide 22: Sustainability Scorecard
Sustainability Scorecard Click to edit Master title style PLANET PEOPLE 20% reduction in 100% of labour lost time injury providers have severity rate complied with Select Harvests policies • Repatriation and PROJECTS • management of wet areas Upgrade dripper lines • On orchard solar energy generatio
Slide 23: Almond Division Outlook
Almond Division Outlook Click to edit Master title style 2020/21 Crop Estimate 2021 Crop Crop Marketing Status Current estimate is Favorable water price will To mitigate the risk of a wet subject to ongoing deliver YOY savings of $3m. harvest, SHV has entered favorable conditions and into an a
Slide 24: FY2020 Food & Corporate Division Outlook
FY2020 Food & Corporate Division Outlook Click to edit Master title style Management is currently undertaking a comprehensive review of the Food Division Corporate Industrial Sales Consumer Brands Capital and cash management Demand for industrial products Woolworths has agreed to range an rema
Slide 25: FY2021 Top Priorities
FY2021 Top Priorities Click assets to edit Master title style Continue to execute on our growth strategy, underpinned by a world class portfolio of almond 1. Safety and Wellbeing - Ensure the safety and wellbeing of our employees 2. Horticultural Program – Deliver optimal tree health and production
Slide 26: Annual General Meeting
Click to edit Master title style Annual General Meeting 26 February 2021 Consideration of The Financial Statements & Reports Click to edit Master text styles 26 2626
Slide 27: Q&A Session
Click to edit Master title style Q&A Session Click to edit Master text styles 27 2727
Slide 28: Resolution #1: Remuneration Report
Click to edit Master title style Resolution #1: Remuneration Report Click to edit Master text styles 28 2828
Slide 29: Resolution #1: Remuneration Report
Click to edit Master title style Resolution #1: Remuneration Report For: 66,922,116 Against: 819,947 Open-Usable: 571,121 Click to edit Master text styles 29 2929
Slide 30: Resolution #2: Director Elections
Click to edit Master title style Resolution #2: Director Elections Click to edit Master text styles 30 3030
Slide 31: Resolution #2(a): Election of Michael Iwaniw
Resolution #2(a): Click to edit Master title style Election of Michael Iwaniw Click to edit Master text styles 31 3131
Slide 32: Resolution #2(a): Election of Michael Iwaniw
Click to edit Master title style Resolution #2(a): Election of Michael Iwaniw For: 68,132,669 Against: 305,574 Open-Usable: 671,068 Click to edit Master text styles 32 3232
Slide 33: Resolution #2(b): Election of Fred Grimwade
Click to edit Master title style Resolution #2(b): Election of Fred Grimwade Click to edit Master text styles 33 3333
Slide 34: Resolution #2(b): Election of Fred Grimwade
Click to edit Master title style Resolution #2(b): Election of Fred Grimwade For: 46,534,923 Against: 22,139,733 Open-Usable: 674,534 Click to edit Master text styles 34 3434
Slide 35: Resolution #3: Approval of issued securities
Click to edit Master title style Resolution #3: Approval of issued securities Click to edit Master text styles 35 3535
Slide 36: Resolution #3: Approval of issued securities
Click to edit Master title style Resolution #3: Approval of issued securities For: 46,585,627 Against: 547,519 Open-Usable: 610,220 Click to edit Master text styles 36 3636
Slide 37: Resolution #4: Remuneration Arrangements for the Managing Director
Click to edit Master title style Resolution #4: Remuneration Arrangements for the Managing Director Participation by the Managing Director in the Long Term Incentive Plan Click to edit Master text styles 37 3737
Slide 38: Resolution #4: Remuneration Arrangements for the Managing Director
Resolution Click #4:Master to edit Remuneration Arrangements for the title style Managing Director Participation by the Managing Director in the Long Term Incentive Plan For: 67,095,504 Against: 1,323,881 Open-Usable: 614,081 Click to edit Master text styles 38 3838
Slide 39: Thank You
Click to edit Master title style Thank You Please direct any queries to: Paul Thompson Brad Crump Andrew Angus Managing Director CFO and Company Secretary 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
Slide 40: Appendices
Click to edit Master title style Appendices Wemen Farm – October 2015 Click to edit Master text styles Bunargool Orchard Blossom 2018 40 4040
Slide 41: FY2020 Results in Context
FY2020 Results in Context cycle’Click FY2020 to edit Master title style Higher volumes and contained production costs per kg enabled a strong ‘through the performance Almond Volume Almond Price Total Almond Production Cost NPAT Click to edit Master text styles 5 Yr. Average 41 4141
Slide 42: Group EBIT Movement
Group EBIT Movement Click to edit Master title style FY2020 Group EBIT impacted by lower almond prices and higher water costs Click to edit Master text styles 42 4242
Slide 43: Volume Growth
Volume Growth Click to edit Master title style Our investment in greenfield developments and orchard acquisitions will platform long- term growth Select Harvests Theoretical Harvest Volume (2021 – 2028)1 Click to edit Master text styles 1 The almond crop is biennial in nature with expected +/- 10% p
Slide 44: Almond Shipments Update
Almond Shipments Update Click to edit Master title style Shipments have responded strongly to lower almond prices U.S. and Australian Almond Shipments Points to Note 2020/21 Crop YTD (Million Lbs.) 2019/20 Crop YTD (Million Lbs.) U.S Shipments: Aug 2020 to Jan 2021 Aug 2019 to Jan 2020 % Change Sh
Slide 45: Tree Nut Pricing
Tree Nut Pricing Click to edit Master title style Almonds are the best value of the major tree nuts Selected Tree Nut Pricing Click to edit Master text styles Source: Select Harvest Company Data 45 4545
Slide 46: Almond Prices
Almond Prices Click toand pounds edit Master uncertainty aroundtitle style2021 U.S. almond crop Almond prices remain subdued with the realisation that the 2020 US crop will exceed 3.0 billion the upcoming Almond Prices An estimated record US almond crop and challenges related to market access issu
Slide 47: Company and Market Outlook
Company and Market Outlook Click to edit Master title style Plant based foods and especially almond consumption continues to grow Global Supply Global Demand & Pricing Select Harvests Large US and Spanish crops Despite market assess issues We will pursue value accreditive are well sold. demand
Slide 48: Grow Our Brands – Sunsol
Grow Our Brands – Sunsol Click to edit Sunsol Muesli sales in Master the Australiantitle grocerystyle segment grew strongly in F2020 supported by product innovation and brand advertising. AU Grocery scan Total Sunsol Dollars (000s) Active Products Share of Total Muesli/Cluster/Granola 3000.0 4.5 4.0
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