Select Harvests Limited · ASX:SHV
Select Harvests — H1 2004 Earnings Presentation
16 slides from Select Harvests's earnings presentation, Mar 1, 2004
Slide 1: Select Harvests Limited Results Presentation - Half Year - 31 December 2003
Select Harvests Limited Results Presentation - Half Year - 31 December 2003
Slide 2: Financial Results Half Year 31/12/2003
FINANCIAL RESULTS HALF YEAR 27/12/2003 6 Months 6 Months Ended Ended 31/12/03 31/12/02 $7000 $7000 64,764 41,918 13,954 11,750 TATE 20.0 cents | Interim Dividend 10 cents Total Shareholders’ Equity 69,968
Slide 3: Balance sheet at 31/12/2003
6 Months Ended 6 Months Ended 31/12/03 31/12/02 $000 $000 _| Current Assets 33,357 27,457 | Non Current Assets 69,145 62,746 | Total Assets 102,502 90,203 i Current Liabilities 11,464 13,079 Debt 19,605 19,666 Non Current Liabilities 1,465 1,201 | Total Liabilities 32,534 33,946 TOTAL EQUITY 69,968
Slide 4: 891g a1eUS
891g a1eUS Date
Slide 5: Diversify and expand our income stream to deliver sustainable earnings growth
SRLLETT ARIENTA * Diversify and expand our income stream to deliver sustainable earnings growth with less volatility from agricultural risk. « Transform the company from an almond grower to a fully integrated food company. * Leverage core skills of almond growing and knowledge of edible nuts and the
Slide 6: The business model has been further developed in 2003
Ee “KEY DRIY i, Va bad oo SRLLETT ARIENTA * The business model has been further developed in 2003. — establishment of a further 2780 acre orchard in June 2003 for Timbercorp Limited increasing area under management and fee base by 52% to 8070 acres. — acquisition of Meriram food business in July 200
Slide 7: EBIT by division, six months ended 31/12/03
SRLLETT ARIENTA $12,722 EBIT 6 Months Ended 31/12/03 2% 29% 36% GAlmond Production AManagement Services OFood Products 3% 34% $9,723 EBIT 6 Months Ended 31/12/02 36% B Almond Production @ Management Service: O Food Products OPesticides O Pesticides 33% 27% 6 Months Ended | 6 Months Ended | , EBIT In
Slide 8: Management Services EBIT HY Dec $4.235m
r= EBIT HY Dec 03 - $4.235m EBIT HY Dec 02 - $2.626m & 57% * Increase in EBIT over last year driven by: — increased area under management. 8070 acres (2003) vs. 5290 acres (2002) — higher orchard establishment fees. 2780 acres developed in 2003 520 acres developed in 2002 — higher processing and mar
Slide 9: Projected Recurring Fee Income
SRLLETT ARIENTA Projected Recurring Fee Income 20000 16000 wz, $000's —@=Tonnes 16000 12000 $000's 8000 4000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Includes 2004 projects
Slide 10: Food Products EBIT HY Dec $4.632m
EBIT HY Dec 03 - $4.632m EBIT HY Dec 02 - $3.268m & 42% EBITA - $5.423m EBITA - $3.952 Initial contribution from Meriram business acquired in July 2003. Nut sales in supermarkets continue to grow. Consumer trend is towards natural whole foods. Improved sales and market share for branded business in
Slide 11: Almond Production EBIT HY Dec $3.640m
EBIT HY Dec 03 - $3.640m EBIT HY Dec 02 - $3.565m & 2.1% * Tonnes sold during period approximately 10% below previous year due to reduced 2003 crop. * Compensated by higher per kilogram prices achieved, resulting in similar revenues to the previous year. « Production costs maintained at previous yea
Slide 12: World Almond Consumption
World Almond Consumption 1500 a 4 1000 im 2 A 500 0 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 ——World Supply | 714 | 758 | 1021 | 779 |1123| 1093] 1150 | 1387 | 1300 Note: ——Consumption | 621 | 710 | 849 | 687 | 918 | 966 | 1069 | 1217 | 1200 2003 is a forecast Almond Price Exchan
Slide 13: Bearing Acres
SRLLETT ARIENTA Bearing Acres 1200 Bs 1000 @ bearing acres —m— crop Oo 800 Ko 3 2 600 A VAN ry 4 = 400 lege byes eebee vreteoseoe?? a ww §=200 g 0 a 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 0 1 2 140 Plantings 120 4 it 131 (25%) Annual plantings 100 4 (000’s) ay | 174 (33%) acres 60 5 4
Slide 14: World Almond Supply and Demand
WORLD ALM OP (million Ibs) Supply and Demand A> AN. —_—, AS =a T T T T T T T T T T T T T 93 94 95 96 97 98 99 0 141 2 3 4 5 6 —— production ———-bearing acres shipments
Slide 15: Pesticides EBIT HY Dec $0.215m
SRLLETT ARIENTA EBIT HY Dec 03 - $0.215m EBIT HY Dec 02 - $0.264m ¥ 18% * Unfavorable conditions for snail baits impacted on sales for first half. * Initial indications for rodent bait season are favorable. * Projecting similar full year result to last year.
Slide 16: Strong fundamentals of international almond market
SRLLETT ARIENTA Strong fundamentals of international almond market. Scale of SHV almond operations: — top 5 grower internationally — over 50% of Australia's orchards Australia has competitive advantage as an almond producer. — higher yields — quality Increased awareness of health benefits on nut con