Select Harvests Limited · ASX:SHV
Select Harvests — Shareholder Meeting (October 2005)
30 slides from Select Harvests's shareholder meeting presentation, Oct 24, 2005
Slide 1: Annual General Meeting 24th October 2005
Annual General Meeting 24% October 2005 A SELECT HARVESTS
Slide 2: Managing Directors Presentation
Managing Directors Presentation Where We Came From Our Model Our Business Today e Year in Review Our Market Position Competitive Position The Year Ahead zB A Annual General Meeting 24% October 2005 SELECT HARVESTS
Slide 3: Where we came from
where we came from 1998 2005 EBIT $5.9 MILLION EBIT $33.3 MILLION 12% % Pesticides Pesticides @ Almond B Almond Operations Orchards Food Products 88% 73% Sales $15.8 Million $ 178.0 Million Total Assets $33.6 Million $132.3 Million Market Capitalisation $29.6 Million $379 Million Share Price $1.00 (
Slide 4: Our model
our model ©)” OUR PLAN: To build a significant integrated agri-food business: - Sustainable earnings - Reduced volatility from agricultural risk - Growth prospects HOW: - Develop and manage externally owned orchards on a long-term fee for service basis - Become more involved in the processing and ma
Slide 5: Our business today
Almond Sales our business today + [Bomesie] 60% Farm Management os —. [Processing 35% INTEGRATED AGRI-BUSINESS Orchard <—— Establishment Supply to Food Manufacturers Supply to Supply to Retailers Other Distributors
Slide 6: Performance indicators
year in review PERFORMANCE INDICATORS « Increased acres of new almond developments +17% « Expansion of total acres under management +29% « Increased production from managed orchards +121% * Increased yields from SHV owned orchards +26% ¢ Higher almond price achieved from owned orchards +11% ¢ Growth
Slide 7: Divisional performance
DIVISIONAL PERFORMANCE $000 Ce MIX EBIT 2004 GROWTH Almond Division 74% 18,264 +44% Food Products 2340 6,813 +19% Pesticides 3% 752 +67%o Operating EBIT 100% 25,829 +38% Corporate Expenses (1,993) Total Z SELECT HARVESTS 23,836
Slide 8: Almond Division
ALMOND DIVISION year in review EBIT FY 2004 - $18.264m EBIT FY 2005 $26.297m 4 43.9% * 4100 acres of new investor owned orchards planted in 2005 compared with 3500 acres in 2004 increasing establishment fees * 2005 crop 6070 tonnes up from 3570 tonnes in 2004 SHV 2005 crop production costs per kilog
Slide 9: Food Products Division
FOOD PRODUCTS DIVISION year in review EBIT FY 2004 - $6.813m EBIT FY 2005 - $8.115m 19.1% EBITA FY 2004 - $8.226m EBITA FY 2005 - $9.629m || 17.0% * Consumption growth continues particularly in natural / health areas « Sales up 48% for the year as a result of Chiquita Nibbles business and growth of
Slide 10: Activities in the last year: new orchards planted
year in review ACTIVITIES IN THE LAST YEAR : « Planted 4100 acres of new managed orchards for investors uu mn me a a. . ee
Slide 11: Activities in the last year: facility upgrade
ACTIVITIES IN THE LAST YEAR year in review Completed $2.0 million upgrade of shelling and sorting facility increasing capacity to approximately 10,000 tonnes p.a. to accommodate 2006 and 2007 crops
Slide 12: Activities in the last year: nursery site
year in review ACTIVITIES IN THE LAST YEAR « Established nursery site to produce 1 million trees for 2006 and 2007 developments NUE =U NUNLUSHUUU SELECT HARVESTS
Slide 13: Activities in the last year: export markets
year in review ACTIVITIES IN THE LAST YEAR « Expanded almond export markets and increased sales tonnage by 98% to 2589 tonnes Ts OF 4 ie 4 = SELECT HARVESTS
Slide 14: Activities in the last year: Chiquita Nibbles acquisition
year in review ACTIVITIES IN THE LAST YEAR « Acquired Chiquita Nibbles business to improve distribution into the fresh produce category Category handles around 35% of supermarket nut sales around 15% of domestic almond consumption . A SP rer = SELECT HARVESTS
Slide 15: Activities in the last year: branded products
year in review ACTIVITIES IN THE LAST YEAR « Launched a number of branded products targeting natural snacking and health sectors SELECT HARVESTS
Slide 16: Activities in the last year: microbiological laboratory
year in review ACTIVITIES IN THE LAST YEAR « Established in-house microbiological laboratory to enhance food safety program PMN MI HACCP ERTIFIED SELECT HARVESTS
Slide 17: Activities in the last year: pesticides divestment
year in review ACTIVITIES IN THE LAST YEAR « Divestment of Pesticides business to concentrate focus on our core business SELECT HARVESTS
Slide 18: Our market position: almonds
our market position ALMONDS « Australia — We manage over 60% of Australian orchards USA 390,000 mt 80% . . } — We will handle approximately 38 % of Spain 40,000 mt 8% Australia’s 2005 crop 1 7 — We expect to handle over 60% of Australia _| 16,000 mt 3% Australia’s crop in the future Italy 15,000 mt
Slide 19: Food products: our market position
FOOD PRODUCTS our market position other Annual sales $131 million retailers $15m * 35% of almond production processed in-house « Major supplier of nut products to Australian industrial $22m supermarkets $94m supermarkets ~ Produce * Distribution ~ Health Major supermarkets ~ Cooking Independents ~ S
Slide 20: Competitive position
competitive position” < © WHY ALMONDS * Australia is able to compete in the global market « Increasing nut consumption * Strong fundamentals of international almond market \» SELECT HARVESTS
Slide 21: Competitive almond producer
competitive almond producer oe e Cost of production per acre comparable with USA Yield per acre higher than USA average Lower cost per kg produced Less defects and damage to crop Higher average return Equal access and competitive freight costs to market \» SELECT HARVESTS
Slide 22: Increasing nut consumption: international
increasing nut consumption” «& © INTERNATIONAL « Most consuming countries are reporting ongoing consumption growth « Firming prices for all tree nuts indicates strong demand « USA domestic consumption of almonds continues to increase at higher prices * Increase marketing activity on the theme of goo
Slide 23: Increasing nut consumption: Australia
increasing nut consumption” «& © AUSTRALIA * Continuing evidence of a move towards “natural whole foods” and increased snacking of natural nut products. Greater focus being given to health and natural snacking categories in supermarkets « Cooking / natural snack supermarket category grew by 24% in 1
Slide 24: World market: almond consumption
world market WORLD ALMOND CONSUMPTION * Last 10 years consumption t 84% * Annual compound growth + 5% p.a. « Growth now constrained by supply 1500 3 1000 c 2 = 500 — Estimate eee World Supply | 714 | 758 |1021) 779 |1123) 1093) 1150] 1387 | 1314) 1258] 1188 =<=Consumption | 621 | 710 | 849 | 687 | 9
Slide 25: World market: USA almond crop age of trees
world market “<0” USA ALMOND CROP — AGE OF TREES 160000 140000 + 140 (23%) : 80000 + 211 (34%) —_——— Estimate = y Zz 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 9899 0 1 2 3 4 @ Annual plantings Zz CAAS Almond Acreage Report May, 2005 AM SELECT HARVESTS
Slide 26: World market: USA almond crop
world market USA ALMOND CROP 4200 - Estimate 1063 870 980 6-998 1000 o)] fee] Oo Oo Oo Oo | | Million Ibs
Slide 27: World market: USA almond crop annual shipments
world market USA ALMOND CROP ANNUAL SHIPMENTS (Million Ibs) 1996 1997 1998 1999 2000 2001 2002 2003 2004 SELECT HARVESTS
Slide 28: World market: international almond price
world market INTERNATIONAL ALMOND PRICE a — = oo US$/Ib iil Te ie _ it oe i ea a ee oe i ea a Fee a iil ee ae ee a _ _ Boe . _ . . . . . . . . . . . . . . | _ oe SELECT HARVESTS
Slide 29: The year ahead: plans for coming year
the year ahead” << ~ PLANS FOR COMING YEAR ¢ Establish further 7000 acres of new almond orchards taking area under management to 25,000 acres and future tonnage to over 30,000 tonnes « Progress scale-up of tree nursery and development resources to support future almond developments * Complete plans
Slide 30: Annual General Meeting 24th October 2005
Annual General Meeting 24% October 2005 A SELECT HARVESTS