Slide 1: Select Harvests FY2017 Results Presentation
Click to edit Master title style For personal use only Select Harvests (ASX:SHV) - FY2017 Results Presentation Paul Thompson – Managing Director Vanessa Huxley, Acting CFO & Company Secretary 25 August 2017 Click to edit Master text styles Select Harvests Limited © Copyright 2017 1
Slide 2: Disclaimer & Basis of Preparation
Disclaimer & Basis Click to edit of Preparation Master title style 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 ad
Slide 3: FY2017 Overview - Financials
Click Overview FY2017 - Financials to edit Master title style For personal use only ■ FY2017 Reported Net Profit after Tax (“NPAT”) of A$9.2m compares to the FY2016 Reported NPAT of A$33.8m ̶ FY2016 Underlying NPAT1 of A$27.9m ■ FY2017 Earnings Before Interest and Tax (EBIT) is A$17.0 m compared to
Slide 4: FY2017 Overview – Key Facts
FY2017 Click Overview – Keytitle to edit Master Factsstyle For personal use only ■ Almond crop volume of 14,100 MT (FY2016 14,200 MT) ■ Average almond price of A$7.43/kg (FY2016 A$8.08/kg) ■ Project H2E (biomass electricity cogeneration plant) revised commissioning date Q3 FY2018. ̶ FY2017 capex A$6
Slide 5: FY2017 Income Statement
Click Income FY2017 to edit Master title style Statement For personal use only Financial Result FY16 FY17 ■ FY17 Underlying EBIT1 A$17.0m (FY16 A$41.3m) (A$m) (A$m) Reported Result EBIT - Reported 49.8 17.0 ■ Almond Division Underlying EBIT1 A$13.7m (FY16 A$36.1m) Interest (5.5) (5.0) NPBT 44.3 12.0
Slide 6: Movement in SHV Group EBIT (A$M)
Movement in SHV Group EBIT (A$M) Click to edit Master title style For personal use only 49.8 8.5 Movement in SHV Group EBIT (A$M) FY16 Reported => FY16 Underlying => FY17 Reported 41.3 10.0 6.1 4.9 2.3 4.9 2.3 1.5 17.0 0.9 1.2 FY16 Reported Gain on Asset FY16 2017 Crop Prior Crop Orchard Rent Orchar
Slide 7: FY2017 Balance Sheet
FY2017 ClickBalance Sheet title style to edit Master For personal use only Year Ending Balance Sheet Jun-16 Jun-17 ■ Debt at top end of targeted range (A$m) (A$m) Current Assets excl. Cash 154.1 139.1 ■ Net debt of A$104.4m (FY2016 A$25.5m) ̶ Gearing (net debt/equity) is 37.6% (FY2016 8.8%) Cash 1.4
Slide 8: FY2017 Cash Flow
Click to FY2017 editFlow Cash Master title style For personal use only FY16 FY17 ■ 2016 crop realised in FY2017 at significantly lower values Cash Flow (A$m) (A$m) than the 2015 crop (realised in FY2016) EBITDA 62.4 31.8 Change in Working Capital 36.3 6.9 ■ Decreased working capital due to lower 201
Slide 9: Almond Division
Almond Division Almond Division For personal use only 9
Slide 10: Almond Division
Almond Division Click to edit Master title style Almond Division (A$m) Reported Underlying1 For personal use only FY16 FY17 FY16 FY17 EBIT 44.6 13.7 36.1 13.7 Financials ■ Volume: FY17 crop volume est. 14,100 tonnes (FY16 14,200 tonnes) ■ Processing: Net processing cost increase (net of hull revenue
Slide 11: Bunagool Orchard
Click to edit Bunagool Orchard Master title style For personal use only Click to edit Master text styles 11 11
Slide 12: Volume Growth
Click to edit Volume Growth Master title style For personal use only *Yields by tree age - refer slide 24 Click to Investment edit Master in almond text styles orchards & processing assets largely complete = increase future earnings 12 12
Slide 13: Food Division
Food Division Click to edit Master title style For personal use only Click to edit Master text styles 13 13
Slide 14: Food Division
Food Division Click to edit Master title style For personal use only Food Division (A$m) Reported Underlying FY16 FY17 FY16 FY17 EBIT 10.3 8.0 10.3 8.0 Financials ■ Revenue of A$146.9 million was down 9.2% (FY16 A$161.8m) ■ Industrial sales down ■ Branded sales mix maintained Comments ■ Commodity pr
Slide 15: Project Update
Project Update Click to edit Master title style For personal use only ■ Greenfield Orchard Plantings ̶ 844 ha (2,084 acres) planted under lease agreement with First State Super (FSS) ̶ A$27.0m Year 1 investment - on time and budget ̶ Project managed by Peter Ross ■ Project H2E (Biomass electricity c
Slide 16: FY2017 Overview – Safety, Sustainability & Diversity
Click to FY2017 edit Master Overview title Sustainability – Safety, style & Diversity For personal use only Safety SAFETY FY2016 FY2017 FY17 Outcome ■ Agriculture is one Australia’s most dangerous industries LTIFR (“Lost Time 18.4 15.1 -18% ■ Select Harvests Zero Harm Safety and Wellbeing Strategy f
Slide 17: Corporate
Corporate Click to edit Master title style For personal use only ■ Board ̶ Fiona Bennett appointed to Board 6 July 2017 ■ Finance ̶ Paul Chambers (CFO & Company Secretary) has resigned, effective as at 8 November 2017 ̶ Vanessa Huxley (Deputy CFO & Deputy Company Secretary) is Acting CFO ̶ Search un
Slide 18: Strategy & Priorities
Strategy & Priorities Click to edit Master title style HO RIZO N 1 – PERFECT T HE CURRENT M O DEL For personal use only Maximize Build our Optimise & Improve supply commodity systems & grow grow almond chain efficiency value through our people agri assets innovation VISION HO RIZO N 2 – T RANSIT IO
Slide 19: Outlook
Outlook Click to edit Master title style For personal use only ■ Fundamentals of the business and industry remain strong – global consumption of plant protein and almonds continues to grow ■ Select Harvests has invested in high quality orchards, processing assets and brands – the business has the gr
Slide 20: Thank you
Click to edit Master title style For personal use only Thank you Please direct any queries to: Paul Thompson Vanessa Huxley Andrew Angus Managing Director Acting Chief Financial Officer Investor Relations +61 3 9474 3544 +61 3 9474 3544 +61 402 823 757 Please note that background material/data regar
Slide 21: Select Harvests - Financial History
Click to edit Master title style For personal use only Select Harvests - Financial History Click to edit Master text styles Source: Company Data 21 21
Slide 22: EBIT Sensitivity
ClickSensitivity EBIT to edit Master title style For personal use only Assuming 2017 crop variables of: ■ Volume: 14,100 tonnes ■ Almond Price: A$7.43/kg ■ Exchange Rate (AUD/USD): 0.75 Key Variable Impact on EBIT ($m) Volume +/-200 tonnes +/- A$1.5M Almond Price (A$/kg) +/- A$0.10/kg +/- A$1.4M Exc
Slide 23: Select Harvests – Orchard Profile
Select Harvests – Orchard Profile Click to edit Master title style For personal use only Total Planted & Under Select Harvests Planted* Under Development Development Almond orchard portfolio (as at 30 June 2017) (as at 30 June 2017) (as at 30 June 2017) Acres Hectares Acres Hectares Acres Hectares C
Slide 24: Targeting Above Average Yield Per Acre @ Maturity
Targeting anedit Click to Above Average Master title Yield style Per Acre @ Maturity For personal use only Harvest Volume (tonnes) per acre Harvest Volume (tonnes) per acre Year based in 1.2 Tonnes per Acre @ based on 1.3 Tonnes per Acre @ Maturity Maturity 1 0.0 0.0 2 0.0 0.0 3 0.3 0.3 4 0.5 0.5 5
Slide 25: Select Harvests – Orchard Age Profile
Select Harvests – Orchard Age Profile Click to edit Master title style For personal use only Significant growth Click & improvement to edit occurred Master text stylesin SHV orchard portfolio in recent years - acquisition, replants, greenfields 25 25
Slide 26: Tree Nut Pricing
Tree NuttoPricing Click edit Master title style For personal use only Click to edit Master text styles Almonds are currently the best value in the basket - driving consumption 26 26
Slide 27: Growing Costs
Growing Costs Click to edit Master title style For personal use only SHV FY2017 Orchard Costs by Percentage Others 11% Labour 17% Havest 16% Fert & Chem 22% Fixed 8% Water Bee 11% 5% Energy 10% Labour Fert & Chem Bee Energy Water Fixed Havest Others Click to edit Master text styles Note: exclude orc
Slide 28: Almond Market Outlook – US Shipments July 2017
Almond Market Outlook – US Shipments July 2017 Click to edit Master title style For personal use only US Export Shipments US Domestic Shipments US Total Shipments Last Year This Year Growth Growth Last Year This Year Growth Growth Last Year This Year Growth Growth (million lbs) (million lbs) (millio
Slide 29: Useful Almond Industry websites
Useful Almond Click to Industry edit Master titlewebsites style For personal use only Industry Associations ─ Californian Almond Board www.almondboard.com Industry Reports ─ US Crop Forecasts (Subjective, Objective) http://www.almonds.com/growers/resources/crop-forecasts ─ Monthly Almond Position Re
Slide 30: Definitions & Explanations
Definitions & Explanations Click to edit Master title style For personal use only ■ Underlying Earnings Before Interest and Tax (“EBIT”) is a non-International Financial Reporting Standards (“IFRS”) measure calculated by adding back interest expense and any non-recurring adjustments to Profit Before
Slide 31: Thank you
Click to edit Master title style For personal use only Thank you Please direct any queries to: Paul Thompson Vanessa Huxley Andrew Angus Managing Director Acting Chief Financial Officer Investor Relations +61 3 9474 3544 +61 3 9474 3544 +61 402 823 757 Please note that background material/data regar