Slide 1: FY2025 Half Year Results Presentation
FY2025 Half Year Results Presentation 29 May 2025 Select Harvests Limited David Surveyor – Managing Director and CEO Liam Nolan – Chief Financial Officer
Slide 2: Webcast
WEBCAST This presentation deck accompanies a live webcast at 10.30am AEST on Thursday 29th May 2025. You can participate in the webcast by using the following link. https://us02web.zoom.us/webinar/register/WN_7Bra_LGETq6LMEQuHbSiWg You are advised to log on at least 15 minutes before 10.30am. If you
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 sourced 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 i
Slide 4: Agenda
AGENDA 1. Business Update 2. Financial Results 3. Strategy & Transformation 4. Outlook & Key Messages 5. Questions 3
Slide 5: Business Update
BUSINESS UPDATE David Surveyor – Managing Director and CEO 4
Slide 6: Operating Leverage - Safety and Sustainability
Operating Leverage - Safety and Sustainability Total Recordable Injury Frequency Rate Injuries per million hours worked 28.6 30.1 22.2 17.2 6.7 7.1 6.3 FY19 FY20 FY21 FY22 FY23 FY24 Today 5
Slide 7: Strong Almond Macro Economics
Strong Almond Macro Economics Almond Market Price California almond tree vs plantings acreage Global almond demand CAGR of 5-7%. US$/kg (FAS basis) • Food mega trends favour healthy Bearing Non-bearing Planting $8.00 1.80 0.12 foods and convenience foods, both of $7.00 which are almond positive. Pla
Slide 8: 1H FY2025 Financial Results
1H FY2025 Financial Results • NPAT improvement of $31.1m YOY. • Crop 25,250 MT @ 75% of fair value recognised in 1H FY2025. • Total production costs remain tightly managed. NPAT • One-off water right sale profit of $5.8m recognised. $28.7m • Superannuation Guarantee historic underpayment results in
Slide 9: Key Results Drivers – Volume
Key Results Drivers – Volume 2025 Crop • Reduced 2025 crop due to: – Nonpareil producing larger hull sizes relative to kernel size therefore lower crack-out percentage – 2025 crop bloom below the strength of the previous bloom – Approximately 500MT losses due to frost events – Pollinator processing
Slide 10: Key Results Drivers – Almond Price
Key Results Drivers – Almond Price Prices have increased in 1H FY2025 across all grades • Low US inventory and USDA 2025 Subjective Forecast of 2.8B lbs supports pricing. • Indian demand remains strong, with tight US supply making Australian almonds essential for meeting peak Diwali demand. • Custom
Slide 11: Key Drivers – Total Production Costs
Key Drivers – Total Production Costs Production Costs • Discipline cost control with cost of Total Almond Production Costs 1 production held over the last 3 years on Normalised $/kg 10.18 a normalised 29,000MT basis. 7.77 6.60 6.94 6.73 6.77 5.63 5.88 5.37 • Improvements delivered across – Horticult
Slide 12: Financial Results
FINANCIAL RESULTS Liam Nolan – Chief Financial Officer 11
Slide 13: Income Statement
Income Statement Higher profitability in 1H FY2025 driven by strong demand and a 37.6% increase in almond price $ millions 1H 1H Factors driving 1H FY2025 earnings (except where indicated) FY2025 FY2024 Variance % Change Almond volume (Mt) 25,250 29,000 (3,750) (12.9%) • FY2025 almond price forecast
Slide 14: Group EBITDA: Sources of Change
Group EBITDA: Sources of Change Higher almond prices and the recognition of 2024 crop sales and water rights sale profits were the main contributors to an improved 1H FY2025 result. 70.0 5.8 60.7 60.0 1.7 (2.0) 3.9 1.8 1.5 (3.0) 53.6 50.0 40.0 $ millions 30.0 20.0 18.6 10.0 - (21.2) (10.0) 13
Slide 15: Balance Sheet
Balance Sheet SHV Balance Sheet well placed following 2024 capital raise. $ millions 1H 1H Key Features of the Balance Sheet (except where indicated) FY2025 FY2024 • Inventory balance higher than 1H FY2024, due to higher 2025 crop price (37.6% Current assets ex. cash 335.7 308.7 increase in SHV crop
Slide 16: Cash Flows
Cash Flows Higher 2024 crop sales and pricing and the collection of FY2024 delayed logistics receipts impacting 1H FY2025 cash flows positively. $ millions 1H 1H Main Cash Movements (except where indicated) FY2025 FY2024 Customer receipts 173.4 87.0 • Positive operating cash flows for the half year
Slide 17: Financial Items – Debt Re-Finance
Financial Items – Debt Re-Finance Select Harvests has completed binding agreements with lenders regarding the renegotiation and extension of its facilities to durations of 3 and 5 years1. Subsequent Event Notable aspects of the new facilities include: The Company has successfully refinanced its exis
Slide 18: Financial Matters – Issues from Previous Periods
Financial Matters – Issues from Previous Periods Superannuation underpayment Error in the 2024 Audited Financial Statements In an internal payroll review, SHV discovered an error While preparing the half-year accounts for 2025, in Superannuation Guarantee (‘SG’) payments to management identified an
Slide 19: Strategy & Transformation
STRATEGY & TRANSFORMATION 18
Slide 20: Strong Strategy Execution
Key On track Strong Strategy Execution At risk Behind schedule Not previously considered Strategic Pillars Safety & Enablers Substantially greater Leadership in processing Maximise returns from Innovate to drive Safety, efficient and almond volume scale and efficiency almond crops step-out growth sc
Slide 21: PMO – Strategy Execution and Discipline
PMO – Strategy Execution and Discipline Execution Profit Impact 1H 2025 P&L Impact Millions AUD Millions AUD FY23 FY24 1HY25 20
Slide 22: Outlook & Key Messages
OUTLOOK & KEY MESSAGES 21
Slide 23: FY2025 Outlook
FY2025 Outlook • 2025 Crop forecast 24,000MT – 26,500MT: – Nonpareil larger hull sizes relative to kernel size reduces crack-out – 2025 crop bloom below the strength of the previous bloom SHV Crop – Approximately 500MT losses due to frost events – Pollinator crack-out commenced. • 2025 crop volumes
Slide 24: Key Messages – Select Harvests
Key Messages – Select Harvests Growing, Processing & Selling as efficiently as we can……. • Profitability increasing. • Substantive progress on transformation initiatives. • Strong balance sheet to be maintained. • Continuing strong macro-economic environment. 23
Slide 25: Questions
QUESTIONS 24