Slide 1: FY2023 Full Year Results Presentation
FY2023 Full Year Results Presentation 24 November 2023 David Surveyor – Managing Director and CEO Brad Crump – CFO and Company Secretary 1
Slide 2: Webcast
WEBCAST This presentation deck accompanies a live webcast at 10:30am AEDT on Friday 24th November 2023 You can participate in the webcast by using the following link https://us02web.zoom.us/webinar/register/WN_En5MSucbSnm3CYQbR0K0hw You are advised to log on at least 15 minutes before 10:30am. If yo
Slide 3: Disclaimer and Basis of Preparation
DISCLAIMER AND BASIS OF PREPARATION 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 take into account the
Slide 4: Agenda
AGENDA 1. Business Update 2. Financial Results 3. Strategy & Transformation 4. Outlook • Picture from SHV required 5. Questions 4
Slide 5: Business Update
BUSINESS David Surveyor - Managing Director and CEO UPDATE 5
Slide 6: Safety – Strong and Rapid Improvement
Safety – Strong and Rapid Improvement Total Recordable Injury Frequency Rate1 Key Areas of improvement: Injuries per million hours worked • “Felt Leadership” & increased safety visibility 35.8 • Building safety processes MTIFR – Safety conversations, Hazard identification & action before 30.1 LTIFR
Slide 7: FY23 Financial Results
FY23 Financial Results Full year financial results are in line with first half guidance • Lower 2023 crop volume ($74.5m) NPAT ($114.7m) • 2022 crop inventory quality ($24.5m) • Goodwill written off non-cash ($26m) Net Bank Debt/ 46.2% • Debt levels will be reduced sensibly overtime Equity Ratio • C
Slide 8: Key Results Drivers – Volume
Key Results Drivers – Volume The lower volume in FY23 has significantly impacted SHV financial results Almond Volume FY22 Crop Selldown MT • Actively managed and sold low quality 2022 crop carryover 28,250 28,312 kernel and inshell 22,690 23,250 • Remaining volume allocated to value added processing
Slide 9: Key Results Drivers – Almond Price
Key Results Drivers – Almond Price SHV almond price reduced by (6%) in FY23, driven by market prices and crop quality Almond Market Price 1 In-shell US$/kg High-grade Kernel Depressed FY23 Prices 8 Low-Grade Kernel 7 • In 2023 global prices increased in the 6 first half, but fell as the year 5 progr
Slide 10: Key Drivers – Production Cost
Key Drivers – Production Cost Total Almond Production Cost1 Increased Production Costs $/kg 10.18 • Invested to grow 30,000MT but only produced 19,771MT so production 6.72 costs per kg spiked 5.37 5.63 5.88 4.73 • Increase in production costs $25m driven by: – Fertiliser costs ($12.3m) due to global
Slide 11: Financial Results
FINANCIAL Brad Crump – CFO and Company Secretary RESULTS 11
Slide 12: Income Statement
Income Statement FY23 income was significantly impacted by fair value crop loss A$ Millions FY23 FY22 Variance Many Factors Contributed To Lower Earnings Almond volume (MT) 19,771 28,312 (8,541) • FY23 EBITDA loss of A$117.1m (FY22 $40.4m) Almond price (A$/kg) 6.4 6.8 (0.4) – 2022 Crop fair value ad
Slide 13: Group EBITDA: Sources of Change
Group EBITDA: Sources of Change Lower volume and higher growing costs were the main contributors to adverse FY23 outcome Millions AUD 40 EBITDA is Impacted by: 63 • Lower 2023 crop volume (19,771MT) • Ongoing lower global 8 almond prices • Write-off of 2022 31 inventory due to quality issues 25 • Wr
Slide 14: FY23 Second Half NPAT Change
FY23 Second Half NPAT Change Second half NPAT consistent with first half results presentation Millions AUD Second Half NPAT impacted by: • Second half NPAT was positively impacted by: – Higher 2023 volume in the second half – Increased tax benefit • Second half NPAT was negatively impacted by: 17 –
Slide 15: Balance Sheet
Balance Sheet SHV balance sheet has remained in line with first half expectations A$ Millions FY23 FY22 Key Features of the Balance Sheet Current assets ex. cash 203.4 260.8 • Inventory levels lower than FY22, due to a lower 2023 crop volume and increased Cash 1.1 1.1 sales velocity Right of use ass
Slide 16: Bank Facilities – Debt and Cash
Bank Facilities – Debt and Cash Net debt increased but sufficient coverage from debt facilities remains FY23 Increase in Net Debt Drivers of Higher Net Debt: Millions, AUD 260 • Less volume of almonds available to sell due to reduced 2023 crop • Reduction in price impacting 2023 12 23 190 crop value
Slide 17: Asset Valuations and Net Assets
Asset Valuations and Net Assets Asset valuations are 67% higher than book value at 30 September 2023 Net Asset Value vs Market Value Market Value Variances to Book Thousands, AUD 688.6 Value 90.0 • Net Assets per share increases from $3.40/share to $5.69/share using market 60.7 value 126.4 • Book va
Slide 18: Cash Flows
Cash Flows Second half cashflow from operations was $18.5m $ Millions FY23 FY22 Main Cash Movements Customer recents 212.7 269.0 Supplier & employee payments (200.6) (229.9) • Negative operating cash flows for the full year driven by: Tax refund 1.4 4.0 – Lower 2022 and 2023 crop sales volumes and p
Slide 19: Strategy & Transformation
STRATEGY & David Surveyor - Managing Director and CEO TRANSFORMATION 19
Slide 20: Strategy – four strategic priorities delivered across three horizons
Strategy – four strategic priorities delivered across three horizons Vision To be a leader in the supply of ‘better for you’ and ‘better for the planet’, plant-based foods Mission Deliver sustainable returns to our shareholders by marketing premium almond products to the world Horizons HORIZON 1 HOR
Slide 21: Strategic Priorities - Disciplined Execution
Strategic Priorities - Disciplined Execution Progress being made across each strategic priority and each of the 3 horizons Strategic priorities executed via PMO with disciplined financial management & individual tracking Leadership in Substantially greater Maximise return Innovate to drive processin
Slide 22: Third Party Processing - Improving Profitability
Third Party Processing - Improving Profitability Third party processing is helping drive sustainable profit growth and will account for ~25% of 2024 volume SHV Almond Processing Volume Thousands, MT Leadership in Processing Scale Third Party SHV • Carina West notional processing capacity New increas
Slide 23: PMO – Strategy Execution and Discipline
PMO – Strategy Execution and Discipline Execution momentum building with growing profit impact and cash benefit Strategic Priorities Execution Profit Impact Count of initiatives Millions A$ Range 15-25 FY23 H1 FY23 H2 FY24+ 10 Substantially greater 40 9 almond volume 15 FY23 Future Leadership in pro
Slide 24: Sustainability – People, Product & Planet Focus
Sustainability – People, Product & Planet Focus Total emissions have been reduced by 25% since 2021 Emissions Reductions • From FY21 to FY23 total emissions have been reduced by 25%: – Scope 1 change: - 34% – Scope 2 change: - 13% – Scope 3 change: +1% • Investment into new fumigation chambers reduc
Slide 25: Outlook
SELECT HARVESTS. © . OUTLOOK’
Slide 26: FY24 Outlook - Positive
FY24 Outlook - Positive Positive outlook for Australian crop. Californian crop quality likely to be impacted by delayed harvest • Improved our forecast yield approach given 2023 • Yield looks set to rebound – very strong bloom intensity, good beehive strength SHV Crop • Forecast shift to El Nino wea
Slide 27: Key Messages
Key Messages FY24 benefits expected from price recovery, transformation delivery & disciplined financial management Challenging • Poor result due to lower volume and lower price FY2023 • Full year result consistent with first half expectations • Positive long term industry growth (CAGR of ~5-6%) Pos
Slide 28: Questions
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