Limoneira Co · NASDAQ:LMNR
Limoneira — Shareholder Meeting (April 2025)
57 slides from Limoneira's shareholder meeting presentation, Apr 9, 2025
Slide 1: Annual Shareholder Meeting, April 9th, 2025
APRIL 9TH, 2025 ANNUAL SHAREHOLDER MEETING Harold Edwards President & Chief Executive Officer
Slide 2: The Limoneira Transformation: Unlocking premium value
MARCH 2025 THE LIMONEIRA TRANSFORMATION Unlocking premium value
Slide 3: Non-GAAP Financial Measures and Forward-Looking Statements
3 Non - GAAP Financial Measures Due to significant depreciable assets associated with the nature of the Company's operations and interest costs associated with its capital structure, management believes that earnings before interest, income taxes, depreciation and amortization ("EBITDA") and adjuste
Slide 4: Overview
4 OVERVIEW
Slide 5: Limoneira is unlocking significant shareholder value
5 through transformative land - use conversion and water monetization while growing avocado and citrus returns LIMONEIRA IS UNLOCKING SIGNIFICANT SHAREHOLDER VALUE
Slide 6: Strategic Value Drivers
6 Expand citrus operations Growing integrated services across growing, packing, marketing and distribution to drive higher margins Accelerate California avocado leadership Scaling our position as the Country’s largest avocado grower Realize premium asset value Monetizing our land and water portfolio
Slide 7: Here's what we have today
7 21,000+ ACRE FEET 10,500 TOTAL ACRES 5,300 U.S. FRUIT - BEARING ACRES Agricultural land Water rights Development portfolio OWNED WATER RIGHTS USAGE RIGHTS PUMPING RIGHTS STRATEGIC CA / AZ LOCATIONS 1,200 ACRES OF AVOCADOS MATURING CA AZ Chile Argentina GLOBAL FOOTPRINT 550 ENTITLED DEVELOPMENT ACR
Slide 8: Here's what we have today (cont.)
$50M Remaining assets Identified for sale $165M Cash proceeds from Harvest at Limoneira residential development over next 6 fiscal years $1.3M Annual revenue from 3 - year fallowing program in Yuma, AZ with additional opportunities by the end of 2026 $1.7M Water pumping rights sold in the adjudicate
Slide 9: Windfall Farms: Central Coast development opportunity
9 WINDFALL FARMS EXTRAORDINARY CENTRAL COAST DEVELOPMENT OPPORTUNITY • 724 acres located in the acclaimed Paso Robles AVA – voted USA Today’s best wine region of 2023 • 389 ± acres planted with high - quality wine grapes • Significant water resources with 7 wells (4 active, 3 cased); approx. 7,000 G
Slide 10: Windfall potential development opportunities
MONETIZING • 400+/ - ACRE VINEYARD - WINDFALL FARMS • WATER UTILITY • VINEYARD ESTATES • WINERY/ TASTING ROOM • 8 - BEDROOM HOSPITALITY CENTER / BED AND BREAKFAST • POLO / EQUESTRIAN CENTER WINDFALL POTENTIAL DEVELOPMENT OPPORTUNITIES 10 • WATER FEATURES: LAKE & POND • WINEMAKING BULK CRUSH FACILITY
Slide 11: Pan de Azucar & San Pablo, La Serena, Chile
11 PAN DE AZUCAR & SAN PABLO LA SERENA, CHILE MONETIZING
Slide 12: Pan de Azucar and San Pablo Ranch
San Pablo Pan de Azucar PAN DE AZUCAR Acquired in 2017 SAN PABLO RANCH Acquired in 2018 3,317 total acres on two parcels ---- ranch outline MONETIZING
Slide 13: Santa Clara, Jujuy, Argentina
13 SANTA CLARA JUJUY, ARGENTINA Acquired in 2019 MONETIZING
Slide 14: Three-Pronged Growth Strategy
14 Accelerate California avocado leadership Expand One World of Citrus THREE - PRONGED GROWTH STRATEGY Lemon grower Full vertical integration; targeting 1,000 acres of lemon production over next 4 - 5 years Lemon packer Packing, marketing and selling services for other lemon growers Citrus marketer
Slide 15: Expect to generate $50M EBITDA by FY2030
15 Analyst Consensus Lemon Packing Growth Citrus Agency Growth Organic Recycling Avocado Expansion $4M $3M $ 5M EXPECT TO GENERATE $50M EBITDA BY FY 2030 INCREMENTAL GROWTH $15M FY25 $50M FY30 $23M
Slide 16: Asset Monetization
ASSET MONETIZATION EIMONEARA’
Slide 17: Fair market value greater than net book value
FAIR MARKET VALUE GREATER THAN NET BOOK VALUE NET BOOK VALUE FMV 1 ACRES AS OF OCTOBER 2024 $87M $100M – $150M 200 Real estate development assets $162M $450M – $550M 10,500 Agricultural assets LAND | BUILDINGS | ORCHARDS | WATER $13M $25M – $30M Other assets ($40M) ($40M) Less estimated current net
Slide 18: Future conversion of select land
FUTURE CONVERSION OF SELECT LAND Select land / water conversion assets $180M worth of assets identified for sale 550 acres entitled for residential / commercial development (Harvest at Limoneira) for $ 180M in expected proceeds over 7 fiscal years 12,000 acre - feet of Class III Colorado River right
Slide 19: Limco Del Mar
CIMONCIRA LIMCO DEL MAR
Slide 20: Limco Del Mar
LIMCO DEL MAR The Limco Del Mar Ranch consists of approximately 221 . 4 acres of agriculturally zoned Ventura County land located on the east end of Ventura, California . This property has approximately 208 . 4 acres of agricultural plantings consisting of 136 . 8 acres of lemons and 71 . 6 acres of
Slide 21: Limco Del Mar APN acreages
Open Row Crops Specialty Avocados Lemons Total APN Acres County/State Ranch Name - - - 71.6 136.8 221.4 Ventura, CA Limco Del Mar APN ACREAGES NON - BEARING TOTAL ACREAGE ROW CROPS AVOCADO VARIETIES SPECIALTIES OPEN GROUND LEMON VARIETIES TOTALS TOTALS AVOCADOS LEMONS TOTALS AGROMIN SPECIALTIE S ROW
Slide 22: SOAR vote
SOAR (Save Open Space and Agricultural Resources) is a series of voter initiatives that require a vote of the citizens of Ven tur a County or that city before agricultural land or open space areas can be rezoned for development. SOAR VOTE County of Ventura or City of Ventura Vote Needed Limco Del Ma
Slide 23: LAFCO
The Local Agency Formation Commission (LAFCO) of Ventura County is an independent commission that regulates the boundaries of cities and special districts. LAFCO works to ensure that local governments provide effective public services like water, sewer, and parks. LAFCO LAFCO has a stated goal of el
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Slide 25: Slide 25
Slide 26: Limco Del Mar
LIMCO DEL MAR
Slide 27: Limco Del Mar APNs
enscoreaz 035-001-022 Limco Del Mar APNs Printed: Mar 03, 2014 sed arse Se
Slide 28: Limco Del Mar orchard chart
LIMONEIRA | LEMONS & AVOCADOS SINCE 1893 ORCHARD CHART LIMONEIRA COMPANY SANTA PAULA, CA 2010 ‘November 17, LIMONEIRA LIMCO DEL MAR DIVISION AVOCADO amin BLOCKS P aa } ! [ melon sooeto oto
Slide 29: City of Ventura, Limco Del Mar Campbell Parcel
CITY OF VENTURA LIMCO DEL MAR CAMPBELL PARCEL
Slide 30: Limco Del Mar Campbell Parcel, City of Ventura
LIMCO DEL MAR CAMPBELL PARCEL CITY OF VENTURA
Slide 31: Limco Del Mar Campbell Parcel, Harmon Canyon Preserve
LIMCO DEL MAR CAMPBELL PARCEL HARMON CANYON PRESERVE KIMBALL SPORTS PARK
Slide 32: Limco Del Mar Campbell Parcel
LIMCO DEL MAR CAMPBELL PARCEL
Slide 33: $180M pipeline land monetization progress
$180M PIPELINE LAND MONETIZATION PROGRESS Identified near - term asset sales $8M $19M $2.6M $98M $128M TOTAL RECEIVED $50M TOTAL ANTICIPATED Commercial Property in Harvest at Limoneira OCT 26, 2022 Oxnard Lemon Property OCT 31, 2022 Santa Maria Property NOV 30, 2022 Northern Agricultural Properties
Slide 34: Real estate assets
LIMCO DEL MAR REAL ESTATE ASSETS ORCHARD FARM LA CUESTA LIMONEIRA HQ / OLIVELANDS LA CAMPANA IN PICTURES MALIBU HARVEST AT LIMONEIRA 34 SANTA BARBARA
Slide 35: Harvest at Limoneira
HARVEST AT LIMONEIRA PREMIUM REAL ESTATE DEVELOPMENT PHASE 3 | IN PROGRESS 550 units 300 apartments PHASE 1 | COMPLETE 707 units $180M OVER 7 YEARS $15M RECEIVED IN FY24 2,050 units TOTAL PROJECT 1,261 closings CURRENT PROGRESS NATIONALLY RECOGNIZED HOMEBUILDER PARTNERS PHASE 2 | COMPLETE 554 units
Slide 36: Cash flow projections
CASH FLOW PROJECTIONS Total annual projected distribution HARVEST AT LIMONEIRA $8 $15 $8 $18 $34 $41 $22 $42 2022A 2024A 2025E 2026E 2027E 2028E 2029E 2030E DOLLARS IN MILLIONS FISCAL YEARS 36
Slide 37: East Area, Harvest at Limoneira
EAST AREA HARVEST AT LIMONEIRA 1 2 RESIDENTIAL COMMERCIAL 37
Slide 38: Harvest Medical Pavilion, East Area 2
Entered into letter of intent with Pacific Coast Investments, Inc. JULY 14, 2021 HARVEST MEDICAL PAVILION EAST AREA 2 Lot 1 to be dedicated medical office buildings Lot 2 to an acute care hospital East area 2 strategically located close to Harvest at Limoneira development project 35 Acres INTENDED F
Slide 39: Significant valuation in water rights ownership
HOLDING SIGNIFICANT VALUATION IN OWNERSHIP OVER WATER RIGHTS WATER ASSETS ~21,000+ Acre feet of owned water rights Water rights, usage rights, and water pumping rights associated with Limoneira land $10k – $70k per acre foot Range of recent water rights sales in CA/AZ 5.9% Southern California water
Slide 40: Water assets beginning to monetize
WATER ASSETS BEGINNING TO MONETIZE Yuma, AZ Current fallowing program 3 - year deal that will drive APPROX. $1.3M of additional revenue from not farming 571 of 1,300 acres Next fallowing program potentially could be 25 - year deal that must be in place by end of 2026 Limoneira believes it can drive
Slide 41: Water assets beginning to monetize
WATER ASSETS BEGINNING TO MONETIZE 41 Sold 58 af of Santa Paula basin pumping rights @ $30,000/ af - $1.7 million Upcoming fallowing program for Colorado River water rights. Current fallowing program generating $1.3 million Formation of a water utility in the Santa Paula basin
Slide 42: Avocado Production
42 AVOCADO PRODUCTION
Slide 43: Positioned for growth in a thriving avocado market
$15.4 B $26.2 B 2022 2028E POSITIONED FOR GROWTH IN A THRIVING AVOCADO MARKET U.S. MARKET DEMAND 3B lbs consumed annually STRATEGIC TIMING California harvest falls between Mexican seasons PREMIUM POSITION U.S. consumers prefer California avocados MARKET ACCESS Proximity to high - consumption Rocky M
Slide 44: Avocado expansion is biggest growth driver
$5 $9 $7 $17 $7 $25 1,800 8,000 5,700 8,200 3,800 15,100 AVOCADO EXPANSION IS BIGGEST GROWTH DRIVER 2024 2023 2022 2021 2020 2019 Revenue DOLLARS IN MILLIONS Production POUNDS IN THOUSANDS 44
Slide 45: Strategic acreage shift to expand avocado production
826 735 2,000 500 FY19A FY24A FY30E STRATEGIC ACREAGE SHIFT TO EXPAND AVOCADO PRODUCTION Leverage industry - leading yields and ideal geographic location to capitalize on growing U.S. avocado demand ACREAGE SHIFT TO AVOCADOS FY24A U.S. Avocado Acreage Yield (1) (lb. per acre) LEVERAGING SUPERIOR A
Slide 46: Avocado highlights
AVOCADO HIGHLIGHTS Anticipated planting 250 ADDITIONAL ACRES IN FY25 800 Current producing acres 1400 Planted acres 2.2% U.S. market share ONE OF THE LARGEST GROWERS 750 735 750 865 885 1,150 1,500 1,750 2,000 130 500 735 870 1,115 850 500 250 2023A 2024A 2025A 2026E 2027E 2028E 2029E 2030E 2031E 88
Slide 47: Driving profitability: optimized avocado operations
DRIVING PROFITABILITY OPTIMIZED AVOCADO OPERATIONS 17,000 lbs production PER ACRE $8,500 Operating / Harvest costs PER ACRE $25,500 Net revenue PER ACRE ($1.50/pound x 17,000 pounds) Total operating profit by 2030 APPROX. $ 34M 2,000 acres x $17,000 per acre 90 TREES/ACRE 180 TREES/ACRE CURRENT ENHA
Slide 48: Avocado volumes by origin in the US
48 AVOCADO VOLUMES BY ORIGIN IN THE US
Slide 49: One World of Citrus
ONE WORLD OF CITRUS™ . s © 4 * LIMONEIRA’ .
Slide 50: One World of Citrus expansion
ONE WORLD OF CITRUS EXPANSION THREE - PRONGED GROWTH STRATEGY Lemon grower Full vertical integration Own growing operations Internal packing Direct marketing & sales Target Source Volume 20% 60% 20% Citrus marketer & seller Network distribution Marketing & sales of third - party citrus Lemon packer
Slide 51: Lemon market leader within a highly fragmented space
APPROX. 15% of total U.S. Lemon crop marketed and distributed in 2023 were +275% from 2011 (~4%) LEMON MARKET LEADER WITHIN A HIGHLY FRAGMENTED SPACE High - quality products Integrated farm - to - customer supply chain Low - cost production Diverse global sourcing and distribution network Superior p
Slide 52: Farm management services division
FARM MANAGEMENT SERVICES DIVISION Best - in - class grower services to drive top and bottom line and recruit and retain grower partners Established a cross - functional grower services team to recruit and retain grower partners Focused on providing specialty services to farm managers & grower part
Slide 53: Limoneira Catalysts
LIMONEIRA CATALYSTS LAND USE CONVERSION HARVEST AT LIMONEIRA • $10 million distribution from partnership to Limoneira announced today • Phase 3 buildout - $155 million anticipated proceeds back to Limoneira in next 6 years • Sale of 550 single - family home lots • Development partnership for 300 mul
Slide 54: Limoneira Catalysts
AVOCADO EXPANSION • 2,000 acres by 2027 • 34 million pounds by 2030 WATER MONETIZATION • Sold 58 af of Santa Paula basin pumping rights @ $30,000/ af - $1.7 million • Upcoming fallowing program for Colorado River water rights. Current fallowing program generating $1.3 million • Formation of a water
Slide 55: Agromin joint venture
AGROMIN JOINT VENTURE • 50% / 50% joint venture between Agromin and Limoneira • Expansion of project to 70 acres with permit to process 295,000 tons annually • Anticipated EBITA = $8 million / annually LIMONEIRA CATALYSTS 55
Slide 56: Strategic Value Drivers
56 Expand citrus operations Growing integrated services across growing, packing, marketing and distribution to drive higher margins Accelerate California avocado leadership Scaling our position as the Country’s largest avocado grower Realize premium asset value Monetizing our land and water portfoli
Slide 57: In Memoriam: John Blanchard
57 IN MEMORIAM JOHN BLANCHARD APRIL 17, 1943 – JUNE 12, 2024 57