Rural Funds Group · ASX:RFF
Rural Funds — Rural Funds Management — Corporate Update (August 2014)
21 slides from Rural Funds's corporate update, August 2014
Slide 1: 2014 RFM Grower update
2014 RFM Grower update RFM Almond Fund 2006 (AF06) RFM Almond Fund 2007 (AF07) RFM Almond Fund 2008 (AF08) August 2014
Slide 2: Agenda
Agenda Industry outlook 2013 harvest overview Grower distributions Projects outlook Spanish almond industry study tour Conclusion 2
Slide 3: Industry outlook
Industry outlook Global demand for almonds has now surpassed global production and consumption is increasing 2013 Californian crop was approximately 2 billion pounds (up 6.7% from 2012) and 2014 crop estimated at 2.1 billion pounds Californian drought is causing concern around the reliability
Slide 4: Industry outlook
Industry outlook SOURCE: Almond insights 2013-14, Almond Board of Australia 4
Slide 5: Industry outlook
Industry outlook SOURCE: Almondco 5
Slide 6: 2013 harvest overview
2013 harvest overview Almond Fund year 2006 2007 2008 Project year 8 7 6 Yield - t/ha 3.62 4.26 4.11 Almond price - ($/kg) $6.63 $6.63 $6.67 Observations – First mature crop – Yield out performance against industry average – High crackout ratio (kernel to field weight) 6
Slide 7: 2014 distribution (2013 harvest)
2014 distribution (2013 harvest) Almond Fund year 2006* 2007 2008 Management Fee -$220.66 -$238.99 -$238.99 Licence Fee -$1,347.64 -$1,166.50 -$1,166.91 Operating Costs -$3,691.93 -$3,446.41 -$3,206.10 Performance fee n/app -$144.91 -$202.33 Total costs (inc. GST) -$5,260.23 -$4,996.81 -$4,814.33 Pl
Slide 8: 2014 harvest update
2014 harvest update Almond Fund year 2006 2007 2008 Project year 9 8 7 Estimated yield - t/ha 3.20 3.42 3.14 Almond price - ($/kg) $8.50 $8.50 $8.50 Observations – Smaller crop following large 2013 crop (biennial bearing) – High yield compared to industry standard for 2014 – 90% hulling and shelli
Slide 9: 2015 cash flow estimates
2015 cash flow estimates Almond Fund year 2006 2007 2008 Project year 9 8 7 Yield - t/ha 3.20 3.42 3.14 Almond price - ($/kg) $8.50 $8.50 $8.50 Pre-tax Grower cashflow (ex GST) $1,637 $1,540 $1,250 GST -$479 -$442 -$419 Disclaimer The information included in the above table is not a financial foreca
Slide 10: Communications
Communications April – harvest update June – harvest completion August – adviser and investor teleconferences October – periodic and distribution statement March and September – half and full year financials made available on RFM website 10
Slide 11: 2015 key projects
2015 key projects Key projects for FY15 include: – frost fans installation – drip tube replacement – new bore – fences – irrigation system upgrade – harvest equipment Frost fans provide a significant enhancement to the ongoing risk management of the orchard 11
Slide 12: 2015 outlook
2015 outlook Excellent bud development All varieties showing positive initial signs Increased tree bulk Anticipating higher water usage (and delivery costs) and have available substantial carryover water Plan to use contract shake and catch machine to assist harvest speed 12
Slide 13: Spanish almond Industry Study Tour
Spanish almond Industry Study Tour Presented by: Daryl Winter August 2014
Slide 14: Spanish almond industry insights
Spanish almond industry insights Almond Board of Australia conducted tour 12 local growers and representatives Toured around Catalonia in north east Spain Objectives included increased awareness of global market and industry collaboration
Slide 15: Almond world production
Almond world production Production (%) Production (tonnes of kernel) Countries 1990-99 2000-10 2012 2013 1. USA 71.9 80.0 857,000 907,000 2. Australia 0.0 2.4 49,896 69,627 3. Spain 16.9 6.3 46,103 32,053 Other 11.2 11.3 - -
Slide 16: Examples of old orchards
Examples of old orchards
Slide 17: Examples of new orchards
Examples of new orchards
Slide 18: Sophisticated propagation
Sophisticated propagation
Slide 19: New infrastructure ideas
New infrastructure ideas 19
Slide 20: Conclusion
Conclusion First distributions for all projects to be processed in October following project audits 2013 and 2014 harvests outperformed industry average All orchards now mature Industry fundamentals positive - evidenced in price Early signs suggest a good crop for 2015 20
Slide 21: Disclaimer
Disclaimer RFM AFSL 226701 as Responsible Entity (RE) for RFM Almond Fund 2006 (ARSN 117 859 391), RFM Almond Fund 2007 (ARSN 124 998 527) and RFM Almond Fund 2008 (ARSN 127 947 960), has prepared this presentation based on information available to it. Although all reasonable care has been taken to
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