Select Harvests Limited · ASX:SHV
Select Harvests — Shareholder Meeting (October 2009)
22 slides from Select Harvests's shareholder meeting presentation, Oct 29, 2009
Slide 1: CEO John Bird
For personal use only CEO John Bird
Slide 2: Operational and Strategic Milestones
Operational and Strategic Milestones For personal use only • Record 2009 crop up 40% • Successfully managed another year of reduced water supply • New processing plant fully operational • 2009 crop processing completed • Successful 2009 crop selling program – Developed and expanded export markets –
Slide 3: Capabilities and Competitive Position
Capabilities and Competitive Position For personal use only • Grown almonds for over 30 years • Driven growth in the Australian almond industry – Developed 36500 acres of new orchards – Currently manage 38500 acres, the second largest area globally – Developed capability and capacity to manage all f
Slide 4: Almond Division
Almond Division For personal use only • Record crop + 40% EBIT $m 2009 2008 % • 65% of Australia,s production Management Services* 27.6 26.7 3.4% • Focus on water management and cost control Owned Orchards 2.7 2.8 (5.2%) •Successful processing and sales Total Almond Division 30.3 29.5 2.6% program •
Slide 5: Future Almond Production
For personal use only Future Almond Production SHV Almond Production Forecast 60,000 50,000 40,000 Tonnes 30,000 20,000 10,000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 SHV Owned Investors
Slide 6: Water
Water We have experienced a third consecutive year of water restrictions For personal use only which has increased the cost of almond production. Crop Year Murray Allocation Average Cost of Cost Per Acre Temporary Water 2007 95% $80/ml Nil 2008 43% $900/ml $1,680 2009 38% $305/ml $690 2010 estimate
Slide 7: New Almond Processing Facility
New Almond Processing Facility • State of the art facility near Robinvale, Victoria, with an investment of $35 million • Annual capacity of around 40,000 tonnes For personal use only • This facility consolidates the full production process from nut receival to finished product dispatch • Together wi
Slide 8: Almond Sales
Almond Sales For personal use only • 40% increase in volume • Competing against record USA crop and impact of global financial crisis • Successful sales program 93% sold and 83% shipped • Export sales up by 53% • Increased sales to key growth markets India, China and Middle East • Domestic sales vol
Slide 9: Almond Industry Fundamentals
Almond Industry Fundamentals For personal use only •World competitive in yield and quality •Level playing field •Right product and proximity to growth markets •World consumption continues to grow •Limited scope for future supply growth •Fundamentals of growing almonds in Australia remain in tact
Slide 10: Almond market update
Almond market update For personal use only • USA almonds • Australian almonds • Global supply and demand and future outlook • Almond price
Slide 11: USA Almonds – Supply
USA ALMONDS – Supply For personal use only USA Annual Production 1,800 1,600 1,400 (Million lbs) 1,200 1,000 800 600 400 200 0 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Crop (million lbs) Bearing Acres
Slide 12: Monthly USA Almond Shipments (Domestic and Export)
MONTHLY USA ALMOND SHIPMENTS (DOMESTIC AND EXPORT) USA ALMONDS 180 For personal use only -Demand 160 140 120 Million lbs USA 2008 crop year 100 80 record shipments of 60 1.380 million lbs up 10% 40 20 0 2009 commenced with Aug Sept Oct Nov Dec Jan Feb Mar Apr May June Jul record shipments. 2006/07 2
Slide 13: Australian Almonds Supply Position
Australian Almonds Supply Position Australian Almond Plantings For personal use only SHV Industry 80,000 70,000 60,000 50,000 Acres 40,000 30,000 20,000 10,000 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 • Australia’s competitive position, due to
Slide 14: Australian Almonds Supply Position
Australian Almonds Supply Position Australian Almond Production Forecast For personal use only 90,000 80,000 70,000 60,000 Tonnes 50,000 40,000 30,000 20,000 10,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 SHV Almond Industry At full maturity Australia’s almond pr
Slide 15: Australian Almonds - Market position
Australian Almonds - Market position For personal use only Australia is achieving strong sales growth into the key markets of India, China and the Middle East, all consumers of natural almonds which is well aligned to Australia’s quality advantage.
Slide 16: Global Almonds Future Supply and Demand
GLOBAL ALMONDS Future Supply and Demand Million lbs use only World Almond Supply vs Demand 3,000 2,500 2,000 For personal 1,500 1,000 500 - 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 World Production Annual Supply Consumption Carry-out
Slide 17: Global Almonds Pricing
For personal use only $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 Mar-93 Sep-93 Mar-94 Sep-94 Mar-95 Sep-95 Mar-96 Sep-96 Mar-97 GLOBAL ALMONDS Pricing Sep-97 Mar-98 Sep-98 Mar-99 Sep-99 Mar-00 Sep-00 Mar-01 Sep-01 Mar-02 Sep-02 Mar-03 Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Almond Price AUD/KG No
Slide 18: Global Almonds Pricing
For personal use only $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 Mar-93 Mar-93 Sep-93 Sep-93 Mar-94 Mar-94 Sep-94 Sep-94 Mar-95 Mar-95 Sep-95 Sep-95 Mar-96 Mar-96 Sep-96 Sep-96 GLOBAL ALMONDS Pricing Mar-97 Mar-97 Sep-97 Sep-97 Mar-98 Mar-98 Sep-98 Sep-98 Mar-99 Ma
Slide 19: Food Division
Food Division For personal use only $m 2009 2008 % Net Sales 132.1 124.3 +6.5% EBIT 4.5 0.9 +382% • Return to sales growth • Best ‘Lucky’ market share since 2006 • Almond sales increased by 22% • Integration of Brisbane manufacturing facility into Melbourne site complete and benefits beginning to fl
Slide 20: Western Australian Expansion
Western Australian Expansion For personal use only • Diversification to new growing area •Soils and climatic conditions suitable for almond production •Reliable and cost effective water resource •4 year investigation and project development •Water licenses for 22,000 ml ($40 million at Victorian PWR
Slide 21: Outlook
Outlook • Immediate focus to ensure continuity of farm operations and enter For personal use only management agreements with new owners of Timbercorp almond orchards •Amounts due under crop funding arrangements will be recovered progressively to end of January 2010 • Water outlook is improving and c
Slide 22: Select Harvests - Building a healthy future
For personal use only Select Harvests Building a healthy future