Select Harvests Limited · ASX:SHV
Select Harvests — Investor Presentation (September 2024)
39 slides from Select Harvests's investor presentation, Sep 20, 2024
Slide 1: Business Update & Capital Raising Presentation
BUSINESS UPDATE & CAPITAL RAISING PRESENTATION September 2024 Select Harvests (ASX:SHV) 1
Slide 2: Important Notice & Disclaimer
Important Notice & Disclaimer The following notice and disclaimer applies to this investor presentation (Presentation) and you are therefore advised to read this carefully before reading or making any other use of this Presentation or any information contained in this Presentation. By accepting this
Slide 3: Important Notice & Disclaimer
Important Notice & Disclaimer SUMMARY INFORMATION This Presentation contains summary information about Select Harvests and its subsidiaries (Group) and their respective activities which is current only as at the date of this Presentation (unless otherwise stated). The information in this Presentatio
Slide 4: Important Notice & Disclaimer
Important Notice & Disclaimer FORWARD LOOKING STATEMENTS (CONTINUE) Any such indications of, and guidance on, future operating performance, earnings, financial position and performance or production are also forward-looking statements. Forward-looking statements, opinions and estimates in this Prese
Slide 5: Important Notice & Disclaimer
Important Notice & Disclaimer FINANCIAL INFORMATION AND REFERENCES TO SELECT HARVESTS In this Presentation, unless otherwise stated or the context requires otherwise, references to 'dollar amounts', '$', 'AUD' or 'A$' are to Australian dollars. This Presentation includes certain historical financial
Slide 6: Contents
Contents 1 Company Update 7 Strategic Priorities & Near-Term 2 12 Growth Opportunities 3 Capital Raising 17 4 Key Risks 22 5 Underwriting Agreement 31 6 Foreign Selling Restrictions 37 6
Slide 7: Company Update
COMPANY UPDATE 7
Slide 8: Unlocking a Stronger Select Harvests
Unlocking a Stronger Select Harvests • Select Harvests’ operational review has developed a strategy that delivers a disciplined path to execute its growth strategy and enact identified cost reduction initiatives • The strategy creates near-term organic growth opportunities have been identified to im
Slide 9: Crop and Price Update
Crop and Price Update 2024 Annual Select Harvests Contracted Sales • Select Harvests’ 2024 crop expected to be approximately 29,500MT 40,000 MT 35,000 MT • Record volume of almonds sold to date supported by a strong Select 30,000 MT Harvests crop and an increasing pool of external grower almonds 25,
Slide 10: FY24 Trading Update
FY24 Trading Update • FY24 Underlying EBIT is expected to be in the range $17m to $19m 1 (FY23 $149.3m loss), with a – Record volume of almonds sold – Almond price increase that is expected to be in the range of $7.70/kg to $7.75/kg (FY2023 $6.42/kg) – Lower overall cost of production per kg • FY24
Slide 11: Balance Sheet Reset
Balance Sheet Reset Balance sheet flexibility to facilitate strategy execution Delayed cash receipts Increased headroom • Approximately $56m of delayed 4 cash receipts are expected to be 2 0 • Forecast September 2024 Net Debt received between 1 October 2024 (midpoint) higher than expected due to 1 a
Slide 12: Strategic Priorities & Near-Term Growth
STRATEGIC PRIORITIES & NEAR-TERM David Surveyor - Managing Director and CEO GROWTH 12
Slide 13: Strategic Priorities | Disciplined Execution
Strategic Priorities | Disciplined Execution Strategy is focused on delivering increased Shareholder returns through improved performance and growth To be a leader in the supply of ‘better for you’ and ‘better for the planet’, VISION plant-based foods Our mission is to deliver sustainable returns to
Slide 14: Strategic Refresh | Horticulture Productivity
Strategic Refresh | Horticulture Productivity Leverage the core – improve the productive capacity of the company’s core assets through yield, quality and efficiency SELECT HARVESTS HORTICULTURE PRODUCTIVITY STRATEGY Consistently produce high quality almonds Leverage Efficiency and Scale Ambition at
Slide 15: Value-Creation Upside Opportunities | Processing
Value-Creation Upside Opportunities | Processing New notional 50,000 capacity (MT)1 Manufacturing excellence is at Select 40,000 Current notional Harvests’ core capacity (MT)1 • 2024 saw a 10,000MT increase in operating capacity. • A further, low-cost capex program (approximately $5m) identified opp
Slide 16: Strategic Refresh | Sales
Strategic Refresh | Sales Maximise the return from the Company’s crops through focusing on four key initiatives SELECT HARVESTS SALES STRATEGY Increase crop value through: Ambition Maximise return from the crop • Maximise pricing through key customers and geographies 1 2 3 4 Value chain Value-add •
Slide 17: Capital Raising
CML V EST S CAPITAL RAISING »
Slide 18: Capital Raising Overview
Capital Raising Overview • A fully underwritten Capital Raising of approximately $80.0 million which comprises: • a 1 for 9.2 pro-rata accelerated non-renounceable entitlement offer (Entitlement Offer) to existing eligible shareholders to raise Offer structure and approximately $50.0 million; and si
Slide 19: Capital Raising
Capital Raising Select Harvests is raising approximately $80.0m via a Placement and Entitlement Offer Sources of Funds $’m • Approximately 7.9m New Shares to be issued under the Placement (equivalent to Placement 30.0 6.5% of existing Shares on issue) Entitlement Offer 50.0 • Approximately 13.2m New
Slide 20: Abbreviated Pro Forma Balance Sheet
Abbreviated Pro Forma Balance Sheet $ millions Proforma (except where indicated) 31-Mar-24 Capital Raising1 Debt Repayment2 Project Optimus3 As at 31-Mar-24 Property, Plant And Equipment 444.5 5.0 449.5 Cash 0.3 80.0 (75.0) (5.0)4 0.3 Borrowings (238.2) 71.64 (166.6) Total Net Debt (237.9) 80.0 (3.4
Slide 21: Capital Raising Timetable
Capital Raising Timetable Event Date Trading halt, Institutional Entitlement Offer and Placement opens Friday, 20 September 2024 Institutional Entitlement Offer and Placement closes Saturday, 21 September 2024 Announcement of results of Institutional Entitlement Offer and Placement Monday, 23 Septem
Slide 22: Key Risks
KEY RISKS 22
Slide 23: Risks
Risks This section sets out some of the key risks associated with an investment in Select Harvests which may affect the future operating and financial performance of Select Harvests and the value of Select Harvests’ shares. The risks set out below are not listed in order of importance and do not con
Slide 24: Capital Raising Risks
Capital Raising Risks Equity underwriting risk ▪ Select Harvests has entered into an underwriting agreement with Bell Potter Securities Ltd and Barrenjoey Markets Pty Limited (together, the Underwriters) which have agreed to fully underwrite the Capital Raising, subject to the terms and conditions o
Slide 25: Select Harvests Limited Specific Risks
Select Harvests Limited Specific Risks Sales margins, almond price and costs risk ▪ Sales are impacted by the market price of products sold which are subject to market forces of supply and demand. Specifically, the sales of almonds owned by Select Harvests are subject to global pricing patterns. ▪ M
Slide 26: Select Harvests Limited Specific Risks
Select Harvests Limited Specific Risks Key suppliers risk ▪ In addition to water, crop size and quality is heavily reliant on a number of key suppliers including but not limited to access to a sustainable annual supply of bees for tree pollination. The loss of any one or more of its suppliers may ha
Slide 27: Select Harvests Limited Specific Risks
Select Harvests Limited Specific Risks Competition risk ▪ Select Harvests' financial performance or operating margins and the value of Select Harvests could be materially adversely affected by existing competitors increasing market share or new competitors entering the market. ▪ Such competition may
Slide 28: Select Harvests Limited Specific Risks
Select Harvests Limited Specific Risks Information technology risk ▪ Failure to manage Select Harvests' IT infrastructure, systems and security (including cyber threats) and ensure Select Harvests’ IT environment is able to support its business could potentially affect Select Harvests’ ability to de
Slide 29: General Risks
General Risks Share price and volume fluctuations ▪ Securities may experience extreme price and trading volume fluctuations. Following the Capital Raising, there may not be an active trading market in Select Harvests’ shares. If a market is not sustained, it may be difficult for investors to sell th
Slide 30: General Risks
General Risks Changes in accounting policy ▪ Select Harvests is subject to the usual business risk that there may be changes in accounting policies which impact on Select Harvests. ▪ Australian Accounting Standards are subject to amendment from time to time, and any such changes may impact on Select
Slide 31: Underwriting Agreement
Bs is . 4 SELECT HARVESTS. LASS | AGREEMENT is
Slide 32: Underwriting Agreement Terms
Underwriting Agreement Terms Barrenjoey Markets Pty Limited (Barrenjoey) and Bell Potter Securities Limited (Bell Potter) are acting as underwriters and joint lead managers (Joint Lead Managers) of the Placement and the Entitlement Offer. SHV has entered into an underwriting agreement with the Joint
Slide 33: Underwriting Agreement Terms
Underwriting Agreement Terms • an application is made by ASIC for an order under Part 9.5 of the Corporations Act in relation to the Offer or the Offer Documents, or ASIC commences any investigation or hearing under Part 3 of the ASIC Act in relation to the Offer or the Offer Documents; or Regulator
Slide 34: Underwriting Agreement Terms
Underwriting Agreement Terms • the Company is or will be prevented from conducting or completing the Offer by or in accordance with the Listing Rules, ASIC, ASX, any Unable to proceed applicable laws or an order of a court of competent jurisdiction or other Governmental Agency. • the S&P/ASX 200 Ind
Slide 35: Underwriting Agreement Terms
Underwriting Agreement Terms • any event specified in the Timetable is delayed: • in respect of events up to and including the Institutional Issue Date, for more than 1 Business Day; or Timetable • in respect of events up to and including the Retail Issue Date, for more than 2 Business Days, without
Slide 36: Underwriting Agreement Terms
Underwriting Agreement Terms • Any of the following occurs: • the commencement of legal proceedings against the Company, any other Group Member or against any director of the Company or any other Group Member in that capacity, or there is a materially adverse development from the perspective of the
Slide 37: Foreign Selling Restrictions
FOREIGN SELLING RESTRICTIONS 37
Slide 38: Foreign Selling Restrictions
Foreign Selling Restrictions This document does not constitute an offer of new ordinary shares (New Shares) of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any count
Slide 39: Foreign Selling Restrictions
Foreign Selling Restrictions Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other document or materials in connec
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