Select Harvests Limited · ASX:SHV
Select Harvests — Shareholder Meeting (November 2013)
19 slides from Select Harvests's shareholder meeting presentation, Nov 22, 2013
Slide 1: Select Harvests Limited Annual General Meeting
For personal use only Select Harvests Limited (“SHV”) Annual General Meeting Paul Thompson, Managing Director 22 November 2013
Slide 2: Disclaimer & Basis of Preparation
Disclaimer & Basis of Preparation For personal use only This presentation is provided for information purposes only and has been prepared using information provided by the company. The information contained in this presentation is not intended to be relied upon as advice to investors and does not ta
Slide 3: Overview
Overview – For personal use only • Financial Performance & Achievements • Almond Division – Acquisition update • Food Division • Demand & Supply • 2014 Crop • Strategy and Outlook
Slide 4: FY13 - Financial Performance
FY13 - Financial Performance Earnings Before Interest & Tax (“EBIT”) For personal use only Reported FY13 EBIT $5.3M Underlying FY13 EBIT $33.7M (up 92% vs Underlying FY12 EBIT $19.6M) Net Profit after Tax (“NPAT”) Reported FY13 NPAT $2.9M (vs Reported FY12 Net Loss After Tax $4.5M) Under
Slide 5: FY13 - Achievements
FY13 - Achievements For personal use only Almond Division - began to demonstrate its potential Better conditions (weather, markets, price, exchange rate) Better management and decision making (tools, techniques & cost control) Better outcomes (volumes, quality, profits) Acquisitions – acqu
Slide 6: Almond Division - Activities & Outlook
Almond Division - Activities & Outlook For personal use only Activities 2014 SHV Crop - Horticultural program well underway & water management plan implemented Orchard maturity profile - Largely offsets orchard replant program NSW - Improving maturity profile of SHV Company Orchards VIC - sh
Slide 7: SHV Orchard Profile - A Competitive Advantage
SHV Orchard Profile - A Competitive Advantage SHV Company Orchards (Owned & Leased) - Age Profile (Years) - % For personal use only (as at 19 Nov 2013 - basis Feb 2014 Crop Harvest) . 35.0% 17% of SHV Company 10% of SHV Company Orchards yet to mature Orchards have passed (15% in next year) peak econ
Slide 8: Acquisition - Update
Acquisition - Update For personal use only • South Australian Acquisition • 2430 acres (983 hectares) • Located outside Loxton • Direct river frontage • Good sound irrigation infrastructure • 680 mature acres (7-13 year old trees) • Similar amount of land available to develop • Additional geographic
Slide 9: Food Division - Activities & Outlook
Food Division - Activities & Outlook For personal use only Activities Performance improvement program to right size supply chain Consumer products price increases Scoping new markets both local and export Deliver initial innovation & consumer insights Increase reporting & measurement Exi
Slide 10: Sunsol - Renovation
Sunsol -Renovation For personal use only – New Packaging – New Formulation – New pricing
Slide 11: Demand - Drivers & Facts
Demand – Drivers & Facts What is Driving Demand For personal use only Developed Economies - Healthy eating & the movement to proteins Developing Economies - Increased wealth & the movement to proteins based Westernised diet Australian & Californian Almond Boards - Opening new markets and suppo
Slide 12: Supply - Drivers & Facts
Supply – Drivers & Facts What is Driving Supply For personal use only Concentrated Supply - 80% of the global almond supply is from California USA 2nd & 3rd Largest Producers - Australia and Spain each represent a month’s supply Substitute nuts - Similar agronomic challenges & insufficient sup
Slide 13: Supply - US Drought
Supply - US Drought For personal use only Red states = extreme drought - 11% of California (1 year ago – 1%) – 23% of US almond crop Orange states = severe drought – 84% of California (1 year ago – 19%) – 77% of US almond crop 13
Slide 14: Strategy Towards 2018
STRATEGY TOWARDS 2018 Status For personal use only 1. CONTROL CRITICAL MASS Secure the critical mass of nuts needed to maximise Commenced OF ALMONDS profitability and leverage the global almond opportunity. 2. IMPROVE YIELD & CROP Improve yield and overall crop value by perfecting on- VALUE farm and
Slide 15: Almond Price & Crop - Update
Almond Price & Crop - Update US Crop For personal use only USA 2012 Almond crop est. 1.9 billion pounds Down 200 million pounds on earlier projections (equivalent to total Australian & Spanish almond crop) SHV (FY14) Update Crop • Good almond blossom & pollination – similar crop to 2013 •
Slide 16: Why Select Harvests?
Why Select Harvests? For personal use only Excellent Industry Fundamentals • Competitive Advantage: Quality Assets Supply/Demand Mature orchard profile with land bank Counter-cyclical to USA State of Art Carina West processing Integrated Business Model facility Orchards Market leadin
Slide 17: 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 17
Slide 18: Business - Risk Mitigation Focus
Business - Risk Mitigation Focus Area Action For personal use only Food Division • New reporting processes • Improve customer service and quality • Manage mix Farming Practices • Empowered farm management • Introduced Harvest guidelines to reduce weather exposure Management Tools • Great on-farm KPI
Slide 19: Select Harvests - Financial History
Select Harvests - Financial History For personal use only 2006 2007 2008 2009 2010 2011 2012 2013 SHV Historical Summary Units Total Sales (A$M) 217.9 229.5 224.7 248.6 238.4 248.3 251.3 191.1 EBIT (A$M) 38.4 40.5 27.1 26.8 26.0 22.6 19.6 37.7 EBIT Margin (EBIT/Sales - %) (%) 17.6% 17.6% 12.1% 10.8%
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