Select Harvests Limited · ASX:SHV

Select Harvests — Octa Phillip Agricultural Land Round Table (September 2012)

23 slides from Select Harvests's conference presentation, Sep 25, 2012

1. Slide 1: Select Harvests Limited – Octa Phillip Agricultural Land Round Table

   For personal use only Select Harvests Limited (“SHV”) Octa Phillip Agricultural Land Round Table Paul Thompson, Managing Director 26 September 2012

2. Slide 2: Disclaimer & Basis of Preparation

   Disclaimer For personal use only Disclaimer & Basis of Preparation This presentation is provided for information purposes only. The information contained in this presentation is not intended to be relied upon as advice to investors and does not take into account the investment objectives, financial

3. Slide 3: Select Harvests & The Almond Industry Value Chain

   Select Harvests & The Almond Industry Value Chain For personal use only Farming & Farm Management Processing Sales & Marketing Summary of Capability 17,151 acres (6,940 hectares “ha”) Primary Processing 30KT Consumer, Foodservice & Robinvale Vic Industrial businesses Diversified across Vic, NSW & WA

4. Slide 4: Key Drivers to Value Creation

   Key Drivers to Value Creation Industry Select Harvests For personal use only Demand Global demand growing 10%+ SHV supplying both markets Local demand 8% + Supply Last 2 years demand greater than supply, despite Last 3 years Australia has had very poor seasons, off up record US crops to 30% Price US

5. Slide 5: Key Drivers - Global Supply & Demand

   Key Drivers - Global Supply & Demand  Global market worth an estimated US$4.5B For personal use only  Demand grew at 8% p.a. over last 10 years  Slow-down in recent planting activity means historical supply growth won’t be maintained  Annual consumption has exceeded production over past two year

6. Slide 6: Key Drivers - Long Supply Response Time & Substantial Cash Generating Capacity

   Key Drivers - Long Supply Response Time & Substantial Cash Generating Capacity  Almond trees take 7 years to mature, but can then produce at that level for approx. 18 more years before For personal use only tapering off Almond Tree Life Cycle & Yield 1.50 18 years of 1.40 substantial free 1.30 cash

7. Slide 7: Key Drivers - Tree Maturity - Orchard Age Profile

   Key Drivers - Tree Maturity - Orchard Age Profile  Australia will be the 2nd largest almond producing nation globally by 2015 For personal use only  Select Harvests is Australia’s 2nd largest almond producer  Growth - 69% (8,816 acres / 3,568 ha) of Select Harvests’ Company Orchards are yet to re

8. Slide 8: Key Drivers - Weather - Annual Almond Cycle

   Key Drivers - Weather - Annual Almond Cycle Adverse weather is biggest threat For personal use only Dormancy Nuts Mature Almond Trees are Formation of dormant between Fruit/Kernel, Hull, •Pollination – Wet weather & Wind impacts May-July Leaves •Petal fall to early nutlet development – Frost impacts

9. Slide 9: What we are building

   What we are building: For personal use only  A strong and trustworthy company  A business that can manage the dynamic agricultural cycle and can mitigate the inherent risks  A company that responds to the challenges and learns from the experience  A cash generating company that will be positione

10. Slide 10: SHV Strategy

    SHV Strategy For personal use only Consolidation Business Improvement Growth One Select Restore the Basics Build foundations Expand and grow  Exit Olam  Improve returns in Food Div  Leverage core competencies  Improve farm practices  Acquire almond orchards at  Orchard Industry top quartile at

11. Slide 11: Key Steps to Cash Generation

    Key Steps to Cash Generation For personal use only  Global Supply & Demand - strong, long term, global consumption growth  Demand is now outpacing supply  Long lag for supply has positive implications for price and cash flow  Tree Maturity – 69% of Select Harvests’ Company Orchards are yet to ma

12. Slide 12: Key Steps to Cash Generation

    Key Steps to Cash Generation For personal use only  Integrated Business Model  Allows SHV to capture margin along the entire value chain in a short supply market  Improvements in Food Business  Some of these initiatives are already well advanced, business now break even  Additional opportunitie

13. Slide 13: Why Select?

    Why Select?  Select Harvests is a fully integrated business operating across the entire almond value chain For personal use only  Largest developer of almond orchards in Australia  driving force behind Aust. almond industry growth from 10KT in 2003 to 90KT (est.) in 2017  2nd largest producer of

14. Slide 14: Summary

    Summary  For personal use only Good industry – healthy product with strong, historical & forecast long term growth prospects (8% p.a.)  Good position in industry  Australia will be 2nd largest almond producer by 2015  Countercyclical to Californian Northern Hemisphere production  Good business

15. Slide 15: Appendix – Thank you

    Appendix For personal use only Thank you Please direct any queries to: Paul Thompson, Managing Director, +61 3 9474 3544 Paul Chambers, Chief Financial Officer, +61 3 9474 3544 Andrew Angus, Investor Relations, +61 402 823 757 14

16. Slide 16: Why Almonds?

    Why Almonds?  Compelling Long-Term Supply & Demand (“S & D”) Fundamentals For personal use only  Fast growth - Global almond demand grew at a Compound Annual Growth Rate of 8% p.a. over the last decade  Tight S & D - delicately balanced in a long-term high growth market  Demand increasingly driv

17. Slide 17: Australian Almond Industry

    Australian Almond Industry For personal use only  Australian Almond production has undergone significant growth since 2003, increasing by approx. 45,000 tonnes to 55,000 tonnes in 2012 Australian Almond Production 100,000 90,000 80,000 70,000 60,000 Tonnes 50,000 40,000 30,000 20,000 10,000 0 2003

18. Slide 18: Long-term almond price dynamics

    Long-term almond price dynamics For personal use only 17

19. Slide 19: Key Markets (Production & Consumption)

    Key Markets (Production & Consumption) Global Almond Production 2011/12 Global Almond Consumption 2011/12 For personal use only EU-27 27% United States United States 7% India 9% 3% EU-27 United Arab Emirates 5% 2% Australia Vietnam 1% Turkey 4% Turkey 0% Chile 3% Canada 86% 35% Other 3% Japan 3% 2%

20. Slide 20: Key Drivers – Domestic Market Premiums captured by Integrated Businesses

    Key Drivers – Domestic Market Premiums captured by Integrated Businesses  With the strong growth in Australian almond production in recent years, exports now account for nearly 59% For personal use only of current production.  As Australian production continues to increase with tree maturity & a r

21. Slide 21: Select Harvests Food Products - Brand Summary

    Select Harvests Food Products - Brand Summary • Market leader in the cooking nut category. For personal use only • Cooking Nut product range: almonds, walnuts, cashews, hazelnuts, brazil nuts, pine nuts, pistachios, macadamias, sunflower seeds and pepitas (value share 37% in the MAT to 22.07.12) • S

22. Slide 22: Financial Results Summary

    Financial Results Summary  For personal use only Financial Result ($m) FY11 FY12 FY12 Underlying EBIT of $19.6m (up 27% on prior year ) ($m) ($m)  Underlying EBIT includes a fair value Reported Result adjustment of $2.5m (FY11 $2.3m) EBIT - Reported 21.9 (2.5)  Good year on year performance from

23. Slide 23: Balance sheet

    Balance sheet For personal use only ($m) Year ending 30/06/2011 30/06/2012 Current Assets excl. Cash 83.9 75.9 Cash 7.4 1.0 Non Current Assets 214.3 202.4 Total Assets 305.6 279.3 Current Liabilities (excl. Borrowings) 30.0 28.8 Borrowings 80.5 68.0 Non Current Liabilities (excl. Borrowings) 26.3 22

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