Select Harvests Limited · ASX:SHV
Select Harvests — Shareholder Meeting (October 2007)
16 slides from Select Harvests's shareholder meeting presentation, Oct 26, 2007
Slide 1: Annual General Meeting 26th October 2007
For personal use only Annual General Meeting 26th October 2007
Slide 2: Earnings History
EARNINGS HISTORY For personal use only Ordinary Dividend Per Share Earnings Per Share 57.0c EPS year-end 72.5c 71.0c 60 +7.5% 80 +6% +26% +18% 70 50 +42% +62% 60 40 50 +28% cents cents 30 +41% 40 +23% +37% 30 20 20 10 10 0 0 2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007
Slide 3: Business Fundamentals
BUSINESS FUNDAMENTALS For personal use only • International competitiveness of Australian almonds • Scale and mechanisation opportunities • Strong local and international consumer demand • Stable pricing and returns
Slide 4: Business Fundamentals - International Competitiveness
BUSINESS FUNDAMENTALS -International Competitiveness For personal use only • Australia is a competitive almond grower with a significant advantage in crop yield and product quality allowing us to compete effectively in global markets Comparison of USA yields against Australian yields 1600 1400 1200
Slide 5: Business Fundamentals - Scale and Mechanisation
BUSINESS FUNDAMENTALS -Scale and Mechanisation For personal use only • Almond farming is highly mechanised, providing economies of scale opportunities to maximise efficiency and competitiveness
Slide 6: Business Fundamentals - Strong Local and International Demand
BUSINESS FUNDAMENTALS -Strong Local and International Demand For personal use only • Almonds are experiencing continuous growth in consumer demand driven by an increasing awareness of the health benefits of regular consumption WORLD SUPPLY USA ANNUAL PRODUCTION 1800 1400 1600 1200 1400 1000 1200 (mi
Slide 7: Business Fundamentals - Stable Pricing and Returns
BUSINESS FUNDAMENTALS -Stable Pricing and Returns For personal use only • International almond pricing remains buoyant and in AUD terms remain within historical ranges Almond Price USD/lb Almond Price AUD/KG $4.50 $14.00 $4.00 $12.00 $3.50 $3.00 $10.00 $2.50 $8.00 $2.00 $6.00 $1.50 $4.00 $1.00 $0.50
Slide 8: Emerging Australian Industry
EMERGING AUSTRALIAN INDUSTRY For personal use only Production Outlook • Total acreage now in excess of 60,000 acres 80,000 70,000 60,000 • Total investment $1.3 billion 50,000 40,000 • Areas: Riverland, Sunraysia and Riverina 30,000 20,000 • 2007 production 26,000 mt 10,000 Future production capacit
Slide 9: Our Business Today
OUR BUSINESS TODAY For personal use only 2006 2007 8,355 Acres 11,809 Acres Orchard Development Nursery 2006 2007 24,400 Acres 35,296 Acres Orchard establishment 2007 EBIT $5.1 M Orchard Management Managed Orchards Owned Orchards 2007 EBIT Almond Growing 2007 EBIT $16.1 M Harvesting $11.6 M Processi
Slide 10: Orchard Development
ORCHARD DEVELOPMENT For personal use only Activities • Tree supply Orchard Development (acres) • New varieties 12000 • Orchard feasibility studies 11000 10000 • Land acquisition 9000 8000 • Orchard design 7000 6000 • Irrigation installation 5000 4000 • Land preparation 3000 2000 • Tree planting 1000
Slide 11: Orchard Management
ORCHARD MANAGEMENT For personal use only Develop Strategies Acres under management • Enhanced technical team 38,644 Acres • Water Management Managed Company orchards - Develop strategies for handling reduced 91% 9% water availability in 2007/2008 while % of Australia’s maintaining crop and tree prod
Slide 12: Processing - Primary Processing
PROCESSING - Primary Processing For personal use only Key Strategies • Construction of stage 1 of a processing facility in Robinvale at a cost of $32 million • Increase total capacity to 40,000 mt • Highly mechanised of almond kernel • Pasteurisation capacity • Commissioning in February 2008 • State
Slide 13: Processing - Added Value Processing
PROCESSING - Added Value Processing For personal use only Key Strategies • Rationalisation, consolidation and alignment of core capabilities over the next 12 months • Focus on cost efficient production • Upgrade of processing and packaging technology • “Fit for purpose” warehousing and distribution
Slide 14: Sales and Marketing - Almond Pool
SALES AND MARKETING - Almond Pool For personal use only • 2007 Almond Pool increased from 6,200 mt in 2006 to 12,000 mt in 2007 • 2007 almond crop 85% sold • Increased domestic sales by 30% over 2006 • Increased export focus - 2007 export percentage to increase to approximately 55% from 40% in 2006
Slide 15: Sales and Marketing - Added Value
SALES AND MARKETING - Added Value For personal use only Key Strategies • Re-alignment of business to a nut/almond nut focus • Focus on maximising added value opportunities from almond pool • Concentration of investment in key brand “Lucky” • Re-launch of Lucky brand in spring 2007 • House brand focu
Slide 16: Outlook
OUTLOOK Key growth areas For personal use only 80000 70000 (Estimated fee revenue 60000 Increased revenue from existing managed 50000 based on current plantings) orchards 40000 30000 20000 10000 0 2008 2009 2010 2011 2012 2013 2014 2015 Development of new almond orchards & other tree nut crops 5000