Select Harvests Limited · ASX:SHV

Select Harvests — Investor Presentation (November 2014)

19 slides from Select Harvests's investor presentation, Nov 11, 2014

  1. Slide 1: Select Harvests Limited Investor Presentation

    For personal use only Select Harvests Limited Investor Presentation 12 November 2014

  2. 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

  3. Slide 3: FY14 Performance

    FY14 Performance For personal use only Earnings Before Interest & Tax (“EBIT”)  Reported FY14 EBIT $41.8M* - vs Reported FY13 EBIT $5.2M  Underlying FY14 EBIT $41.8M* - up 11% vs Underlying FY13 EBIT $37.7M Net Profit after Tax (“NPAT”)  Reported FY14 NPAT $29.0M* - vs Reported FY13 NPAT $2.9M 

  4. Slide 4: FY14 Performance

    FY14 Performance For personal use only OHS & Environment ─ OHS - Another improved safety result with group Lost Time Injuries (LTI) down 72.7%, year on year ─ Zero major environment incidents Acquisitions ─ Allinga & Mendook Other Achievements ─ Consumer complaints down 20% ─ Processing damage at Ca

  5. Slide 5: Almond Division – Performance, Activities & Outlook

    Almond Division – Performance, Activities & Outlook For personal use only Performance –  Wet harvest significantly diminished yield & quality  Price - A$8.50/kg (FY13 A$6.38/kg) - up 33% - offsetting for reduced volume & quality  Costs - increased due to impact of wet harvest  $6.0m revaluation

  6. Slide 6: Food Division – Performance, Activities & Outlook

    Food Division – Performance, Activities & Outlook For personal use only Performance  Industrial delivers another record result - 24% up on FY13  Revenue reduction driven by loss of major retailer private label almond contracts  Branded business remains strong  Improved sales mix has driven margi

  7. Slide 7: Acquisitions – Geographic Diversity, Scale & Future

    Acquisitions – Geographic Diversity, Scale & Future. For personal use only Allinga – Loxton, SA (A$16.3M) • 680 acres mature almond • 1,000 acres suitable for planting to almonds (FY15) • Gained SA water buyback/efficiently funding (Net $5m) to support new plantings Amaroo – Paringa, SA (A$52.5M) •

  8. Slide 8: Orchard Profile – Young Orchards PLUS Longevity

    Orchard Profile – Young Orchards PLUS Longevity For personal use only Land bank Planted acreage age profile 50.0% (% of total land holding) 45.0% 40.0% 35.0% 25% 67% 8% Planted orchards are Planted orchards in economic sweet spot - Planted orchards post 30.0% low capex & high cash generation economi

  9. Slide 9: Global Supply - US Drought

    Global Supply - US Drought For personal use only Orange States = Severe Drought Red States = Extreme Drought Dark Brown States – Exceptional Drought SHV AGM 2013 – 0% Exceptional Drought, 11% Extreme Drought, 84% Severe Drought SHV AGM 2014 – 55% Exceptional Drought, 80% Extreme Drought, 94% Severe

  10. Slide 10: Global Supply - Crop Outlook

    Global Supply -Crop Outlook For personal use only  US Crop Update (2013/14) - harvested  Market estimate of USA 2013/14 Almond crop - now 1.7-1.8 billion pounds (Ref: Hilltop Ranch – 2 Nov 2014)  Down 300-400 million pounds on original NASS Objective Estimate of 2.1 billion pounds  SHV Crop Upda

  11. Slide 11: Outlook – Business Focus

    Outlook – Business Focus For personal use only Almond Division  Maximise 2015 crop  Integrate acquisitions  Prepare for 2015 & 2016 greenfield plantings & funding options  Development of orchard benchmarking  Secure further mature orchards Food Division  Continue innovation stream in industria

  12. Slide 12: Thank you

    For personal use only Thank you Please direct any queries to: Paul Thompson Paul Chambers Andrew Angus Managing Director Chief Financial Officer Investor Relations +61 3 9474 3544 +61 3 9474 3544 +61 402 823 757 12 12

  13. Slide 13: Select Harvests - Financial History

    Select Harvests - Financial History For personal use only SHV Historical Summary Units 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Sales (A$M) 217.9 229.5 224.7 248.6 238.4 248.3 251.3 191.1 188.3 EBIT (A$M) 38.4 40.5 27.1 26.8 26.0 22.6 19.6 37.7 41.8 EBIT Margin (EBIT/Sales - %) (%) 17.6% 1

  14. Slide 14: Why Select Harvests? - 2015 Orchard Profile

    Why Select Harvests? - 2015 Orchard Profile For personal use only Almond orchard Planted Orchard Planted Orchard Bearing Orchard Bearing Orchards portfolio Area (acres) Area (hectares) Area (acres) Area (hectares) Northern Region Owned 1,491 604 1,423 576 Leased 3,017 1,221 3,017 1,221 Total 4,508 1

  15. Slide 15: Why Select Harvests? - 2015 Orchard Profile

    Why Select Harvests? - 2015 Orchard Profile For personal use only AREA BY TREE AGE Years 0-7 Years 8-26 Years 26+ TOTAL PLANTED AVAILABLE TO PLANT TOTAL (acres) (ha) (acres) (ha) (acres) (ha) (acres) (ha) (acres) (ha) (acres) (ha) Northern Region Company Owned 312 126 1,179 477 - - 1,491 604 - - 1,4

  16. Slide 16: Significant Orchard Growth. Double plantings by 2018

    Significant Orchard Growth. Double plantings by 2018 For personal use only 25,000 20,000 350 406 2,850 (1,072) 350 1,650 2,350 15,000 7,939 1,465 (42%) Acres 1,018 1,463 21,659 10,000 2,282 (21%) 10,871 5,000 8,547 (58%) Utilising current and (79%) acquisition land bank - Current Acquisitions FY15 F

  17. Slide 17: Global Supply – US Reservoirs/Temp/Snowpack

    Global Supply – US Reservoirs/Temp/Snowpack For personal use only Temperature  Six Months In and Sizzling California Sets Record - Andrea Thompson, Climate Central, 16 July 2014 ─ California just finished the hottest first half year on record, a period going back 120 years, according to the nationa

  18. Slide 18: Global Supply - US Groundwater Levels

    Global Supply - US Groundwater Levels For personal use only This trio of images depicts satellite observations of declining water storage in California as seen by NASA's Gravity Recovery and Climate Experiment satellites in June 2002 (left), June 2008 (center) and June 2014 (right). Colors progressi

  19. Slide 19: Global Demand – Diverse. High Growth

    Global Demand – Diverse. High Growth For personal use only Almonds have held the No.1 position in global tree nut innovations since 2006 (35% market share 2013). Long term US per capita consumption of almond outpaces all other tree nuts (376% growth since 1980) 19 19

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