Select Harvests Limited · ASX:SHV

Select Harvests — Shareholder Meeting (November 2008)

28 slides from Select Harvests's shareholder meeting presentation, Nov 5, 2008

  1. Slide 1: Annual General Meeting 2008

    SELECT HARVESTS LIMITED For personal use only ANNUAL GENERAL MEETING 2008 John Bird Managing Director 5 November 2008

  2. Slide 2: Our Business Model

    OUR BUSINESS MODEL For personal use only Orchard Development EBIT Operating EBIT 2007 - $44.2m Nursery 2007 -$5.1m 2008 – $32.3m 2008 - $2.7m Orchard Establishment Investor Orchards Orchard Management Owned Orchards EBIT EBIT 2007 -$16.1m Almond Growing 2007 -11.6m 2008 -$18.7m Harvesting 2008 - $2.

  3. Slide 3: Key Issues and Outcomes for the Year

    KEY ISSUES AND OUTCOMES FOR THE YEAR For personal use only ƒ Water restrictions, higher farming costs and a strong Australian dollar impacted results ƒ 2008 almond crop up 25% using 20% less water and reduced farm inputs ƒ Tree health and productive capacity maintained ƒ New almond processing facili

  4. Slide 4: New Processing Facility

    NEW PROCESSING FACILITY For personal use only

  5. Slide 5: Site / Increased Acres

    For personal use only SITE INCREASED ACRES

  6. Slide 6: Increasing Tonnages

    For personal use only INCREASING TONNAGES

  7. Slide 7: Current Facility

    For personal use only CURRENT FACILITY

  8. Slide 8: New Almond Processing Facility

    NEW ALMOND PROCESSING FACILITY For personal use only ƒ State of the art facility ƒ Competitive position on cost and quality ƒ Capacity for future growth ƒ Scale ƒ Efficiency ƒ Quality ƒ Food Safety

  9. Slide 9: Managing Water Supply

    MANAGING WATER SUPPLY For personal use only

  10. Slide 10: Managing Water Supply

    MANAGING WATER SUPPLY For personal use only ƒ Purchase of permanent and temporary water last year ƒ Operating a water management strategy (80%) ƒ Can operate this year a 40% allocation without further water purchases ƒ Storages currently 22% above last year ƒ Current allocations 19% v 20% last year

  11. Slide 11: Managing Water Supply

    MANAGING WATER SUPPLY For personal use only ƒ Water is our most important resource ƒ In a long dry cycle ƒ Period of water restrictions not seen before by Victorian irrigators ƒ Permanent water licenses being supplemented by temporary water purchases ƒ Reform of Murray Darling Basin to drought proof

  12. Slide 12: Managing Water Supply: On farm efficiencies

    MANAGING WATER SUPPLY On farm efficiencies For personal use only ƒ Direct correlation between water delivered to a tree and crop yield ƒ Last ten years has seen substantial improvement in crop yields and increased water usage ƒ Our aim is to maintain yields at reduce water usage by improving the con

  13. Slide 13: Almonds the State of Play

    ALMONDS THE STATE OF PLAY For personal use only

  14. Slide 14: Future Growth

    FUTURE GROWTH Estimated Fee revenue based on current planting For personal use only 80000 70000 60000 50000 40000 30000 20000 10000 0 2008 2009 2010 2011 2012 2013 2014 2015 Crop projections from company orchards 5000 4000 3000 2000 1000 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

  15. Slide 15: Strong Business Fundamentals

    STRONG BUSINESS FUNDAMENTALS For personal use only ƒ Australia is a world competitive almond grower ƒ Almond consumption continues to increase globally ƒ Almonds are natural, healthy, versatile and taste good ƒ Barriers to future supply increases ƒ Market fundamentals are sound ƒ Almonds remain an a

  16. Slide 16: Increasing Global Demand

    INCREASING GLOBAL DEMAND For personal use only 2000 (million lbs) 1500 1000 500 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 carry in world production annual supply consumption carry out

  17. Slide 17: Australian Competitive Advantage

    AUSTRALIAN COMPETITIVE ADVANTAGE Comparison of crop yields For personal use only 1.4 1.2 1.0 T onnes /Ac re 0.8 0.6 0.4 0.2 0.0 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 US 0.6 0.7 0.9 0.9 0.8 0.7 0.9 1.0 1.0 A us tralia 1.3 1.2 1.1 1.0 1.0 1.0 0.9 1.3 1.0 A verag e A g

  18. Slide 18: Australian Scene: Plantings by Region

    AUSTRALIAN SCENE For personal use only Total: Plantings by Region 27,300 hectares Adelaide Region: 700 hectares Riverland Region: 4,750 hectares Riverina Region: 2,500 hectares Sunraysia Region: 19,350 hectares

  19. Slide 19: Australian Scene

    For personal use only AUSTRALIAN SCENE

  20. Slide 20: Australian Scene

    AUSTRALIAN SCENE For personal use only • Total plantings 27,300 hectares (67,500 acres) • 50% non‐bearing (less than three years) • Less than 20% plantings are fully mature (8 years and older)

  21. Slide 21: Australian Scene

    AUSTRALIAN SCENE For personal use only • Current production in excess of 26,000 tonnes • Production to triple by 2015 to reach 80,000 tonnes • 2009 projected crop 34,500 tonnes • Estimate based on current plantings

  22. Slide 22: Australian Scene

    For personal use only AUSTRALIAN SCENE

  23. Slide 23: USA Scene: Annual Production

    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 1982 82 19 1983 83 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

  24. Slide 24: Almond Price (USD/lb)

    For personal use only $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 Oct-93 Apr-94 Oct-94 Apr-95 Oct-95 Apr-96 Oct-96 Apr-97 Oct-97 Almond Apr-98 Oct-98 Apr-99 AlmondPrice Oct-99 Apr-00 Price non Oct-00 Apr-01 NPSSR Oct-01 Apr-02 Oct-02 pareil23/25 Apr-03 Oct-03 Apr-04 Oct-04 USD/Ib 23/

  25. Slide 25: AUD/USD Exchange Rate

    For personal use only $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 Oct-93 Apr-94 Oct-94 Apr-95 Oct-95 Apr-96 Oct-96 Apr-97 Oct-97 Apr-98 Oct-98 Apr-99 Exchange Oct-99 Exchange Apr-00 Oct-00 Rate Apr-01 Oct-01 Apr-02 Oct-02 Apr-03 AUD/USD Oct-03 RateAUD/USD Apr-04 Oct-04 Apr-05 Oct-05 Apr-06 Oct-06 Apr-

  26. Slide 26: Almond Price (AUD/kg)

    For personal use only $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 Oct-93 Apr-94 Oct-94 Apr-95 Oct-95 Apr-96 Oct-96 Almond Apr-97 Almond Oct-97 Apr-98 Oct-98 Price Apr-99 Oct-99 Apr-00 Oct-00 Apr-01 PriceAUD/KG Oct-01 Apr-02 Oct-02 Apr-03 Oct-03 non pareil NPSSR Apr-04 Oct-04 23/25 AUD/Kg Apr-

  27. Slide 27: Future Growth

    FUTURE GROWTH Estimated Fee revenue based on current planting For personal use only 80000 70000 60000 50000 40000 30000 20000 10000 0 2008 2009 2010 2011 2012 2013 2014 2015 Crop projections from company orchards 5000 4000 3000 2000 1000 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

  28. Slide 28: New Almond Developments

    NEW ALMOND DEVELOPMENTS For personal use only ƒ New almond developments are engine room of business ƒ Developments have stalled due uncertainty about water supply ƒ Short-term - WA diversification to alternative water supply ƒ Long-term -Murray Darling Basin supply will stabalise providing future gr

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