Slide 1: Annual General Meeting
For personal use only Annual General Meeting 25th October 2011 John Bird, Chief Executive Officer
Slide 2: Agenda
Agenda For personal use only FY11 Performance Olam contract Strategy Strong Fundamentals Outlook 2
Slide 3: FY11 Performance
FY11 Performance For personal use only § NPAT $17.7m including discount on acquisition of $5.6m § NPAT $12.5m, excluding discount on acquisition and one-off costs related to food business § EPS 33.7 cents per share (FY10: 43.3 cents per share) § Final dividend of 3 cents resulting in fully franked f
Slide 4: Reduced yields across industry
Reduced yields across industry For personal use only 2010: SHV â16% 2011: SHV â30% Standard Industry Yields – standard yield per acre applied by Almond Board of Australia to project annual industry crops 4
Slide 5: Almond price impacted by strong AUD
Almond price impacted by strong AUD For personal use only 5
Slide 6: Agenda
Agenda For personal use only Financial & Operating Performance Olam contract Strategy Strong Fundamentals Outlook 6
Slide 7: Olam Contract
Olam Contract For personal use only In May 2011 we announced that Olam would not extend orchard management contract beyond the 2012 crop: § Decision consistent with their strategy to manage their nuts businesses in- house § Initial three-year contract gave us time to expand our Company Orchards port
Slide 8: Agenda
Agenda For personal use only Financial & Operating Performance Olam contract Strategy Strong Fundamentals Outlook 8
Slide 9: Strategy
Strategy For personal use only § Select Harvests’ strategy is to increase orchards under management, broadening our access to the full almond value chain: § Expand Company Orchards through acquisition, long-lease or by establishing new orchards § Leverage our world-leading management capabilities, a
Slide 10: Strategy implementation
Strategy implementation For personal use only 2009 Today Wheatbelt Region, WA: Riverina Region, Company Orchards: NSW: 2,000 acres – Stage 1 Company Orchards: 2,300 acres – Stage 2 4,500 acres Sunraysia Region, VIC: Managed Orchards: 34,900 acres Company Orchards: 3,400 Sunraysia Region, VIC: acres
Slide 11: Crop profile
Crop profile For personal use only Standard Industry Yields – standard yield per acre applied by Almond Board of Australia to project annual industry crops 11
Slide 12: Agenda
Agenda For personal use only Financial & Operating Performance Olam contract Strategy Strong Fundamentals Outlook 12
Slide 13: Global supply-demand outlook
Global supply-demand outlook For personal use only § Global market worth an estimated US$4.5 billion § Supply and demand have grown at 8% CAGR over past decade § Current demand growth trending above average growth rate; average supply growth cannot be maintained due to slow-down in recent planting a
Slide 14: Supply expected to tighten
Supply expected to tighten For personal use only • US and Australian plantings have slowed since 2006 • Bulk of new plantings are reaching maturity with supply expected to plateau • Select Harvests has continued to invest for growth to meet future demand 14
Slide 15: Growth across mature and emerging markets
Growth across mature and emerging markets For personal use only 600 500 400 Million lbs 300 200 100 0 Americas Western Europe Asia Pacific Middle East/Africa Eastern Europe 2005 2009 2010 Source: Almond Board of California, 2011 15
Slide 16: Almonds vs other nut categories
Almonds vs other nut categories For personal use only § Almonds are currently trading below other edible nut categories which have tighter supply scenarios 16
Slide 17: Agenda
Agenda For personal use only FY11 Performance Strategy Olam contract Strong Fundamentals Outlook 1 7
Slide 18: Strong foundations
Strong foundations For personal use only § Intellectual property and expertise across value chain § Unique integrated business model § Enables us to control costs § Provides access to full almond value chain § State of the art processing facility with capacity to meet industry demand § Established r
Slide 19: Future revenue drivers
Future revenue drivers For personal use only § Volume growth from existing orchards under management as they reach full maturity: § 17,600 acres under management excluding Olam § Potential to yield 23,000 tonnes at full maturity; strong cash generation § Continued investment in Company Orchards § Ex
Slide 20: Outlook
Outlook For personal use only FY12 performance expected to be better than FY11 based on “standard” growing and harvesting conditions § Flowering and pollination conditions supportive an improved crop set § Cumulative effect of higher water allocations § Expanded acreage and improved maturity profile