Slide 1: FY2021 Full Year Results Presentation
Click to edit Master title style Select Harvests Limited (ASX:SHV) FY2021 Full Year Results Presentation 26 November 2021 Paul Thompson Managing Director & CEO Brad Crump CFO & Company Secretary Click to edit Master text styles 1
Slide 2: Webcast details and contact
Click to edit Master title style This presentation deck accompanies a live webcast at 11.30am AEDT on Friday 26 November 2021 You can participate in the webcast by using the following link ■ https://us02web.zoom.us/webinar/register/WN_vCpIWsPXRmKs8oskD7QlSQ Insert Title You are advised to log on at
Slide 3: Disclaimer
Disclaimer Click to edit&Master Basis title of Preparation style 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 do
Slide 4: Overview
Click to edit Master title style Overview Click to edit Master text styles 4 4
Slide 5: FY2021 Financial Overview
FY2021 Financial Overview flows Click to edit Master improved title timing ofstyle A lower almond price has impacted earnings. Gearing remains low, with operating cash strengthening due to the export shipments Reported Reported Earnings per Share (Basic) $15.1m $40.4m 12.7 cents Final dividend of 8.
Slide 6: Discontinued Operations
Discontinued Operations Click toBusiness edit currently Master title style Discontinued operations include the Lucky, Sunsol and NuVitality Consumer Brands and non- almond Industrial manufactured at the Thomastown Production Facility FY2021 Discontinued Operations ($m) ■ Following a detailed strateg
Slide 7: FY2021 Operating Overview
FY2021 Operating Overview Click to edit Master titlea style A third consecutive year of yield outperformance across all age cohorts and growing regions , 1 with the acquisition of Piangil helping to deliver record almond crop, 22% higher than FY2020 Almond Crop Average Almond Price Water Costs 28,25
Slide 8: FY2021 Results in Context
FY2021 Results in Context Clickprice. the almond toSelect editHarvests Masterdid not title style Strong production volume and contained production costs per kg were offset by a reduction in receive any JobKeeper payments in FY2021 or FY2020 Almond Volume (MT) Almond Price ($/kg) 28,250 8.60 22,690 2
Slide 9: Financial Performance
Click to edit Master title style Financial Performance Click to edit Master text styles 9 9
Slide 10: Income Statement
Income Statement Click to edit Master title style Results impacted by a lower almond price, despite a record crop volume and contained production costs $ millions ■ Increase in revenue due to the opening of export markets following (except where indicated) FY2021 FY2020 Variance % Change COVID-19 re
Slide 11: EBIT Movement
EBIT Movement Click to edit Master title style FY2021 EBIT from continuing operations impacted by lower almond price Movement in EBIT from Continuing Operations ($m) 44.6 6.7 1.0 32.6 1.2 1.1 (5.7) (16.3) FY2020 EBIT 9.3% Almond Price 21.5% Tonnage 4.5% Higher Almond 4.0% Lower Value Added Other FY2
Slide 12: Cost Performance
Cost Performance Click to edit Master title style Cost management and yield outperformance helped contain orchard, harvest and processing costs Total Almond Production Cost ($/kg) ↑ 2.9% 5.63 5.47 ↓ 4.0% 0.99 0.95 Orchard Water Harvest Processing Rents Depreciation Total FY2020 FY2021 Click to edit
Slide 13: Balance Sheet
Balance Sheet Click to edit Master title style Balance sheet remains in a strong position, with low net bank debt and sufficient capacity for growth ■ Increased current assets – inventory/biological assets balance increase $ millions due to larger crop. Trade receivables higher due to increased sale
Slide 14: Capital Management
Capital Management peak, Click to edit Master title style Consistent and sustainable capital expenditure, improvement in net working capital post COVID-19 gearing within target range and a +50% dividend payout ratio maintained Capex for continuing operations ($m)1 Working capital ($m) 82.5% 0.9 35.0
Slide 15: Cash Flows
Cash Flows Click to edit Master title style Operating cash flows strengthening due to the improved timing of export shipments ■ Improved operating cash flow position due to: $ millions (except where indicated) FY2021 FY2020 − Higher almond production levels EBITDA1 40.4 57.8 − Faster sales vs. last
Slide 16: Operational Performance
Click to edit Master title style Operational Performance Click to edit Master text styles 16 16
Slide 17: Health, Safety and Wellbeing
Health, Safety and Wellbeing Click to edit Master title style Focused towards achieving Zero Harm, with annual targets to improve year on year performance Injury Frequency Rate Strategic Priorities in FY2021 ■ COVID-19 management and response plan Recordable Injury Frequency Rate Lost Time Injury Fr
Slide 18: Yield Performance
Yield Performance Click to edit Master title style A third consecutive year of yield outperformance across all age cohorts and growing regions . 1 Immature orchards delivered an additional 1,876 MT above industry standard yields in FY2021 FY2021 Yield Performance (MT/Hectare) Points to Note Mature ■
Slide 19: Almond Pricing and Market Conditions
Almond Pricing and Market Conditions Click totheedit end of Master title style Market participants are awaiting a clearer indication of the 2021 Californian almond crop, which will emerge towards CY2021 Farm Gate Almond Prices (US$/Lb) Market Conditions ■ Market prices have recovered from their ten-
Slide 20: Operating Outlook
Operating Outlook Click to edit Master title style Too early in the horticultural cycle to be able to confidently forecast the 2022 crop Crop Volume Sales Horticulture Favorourable conditions to date, with trees There continues to be delays in available Committed to increasing the use of technology
Slide 21: Strategy & Priorities
Click to edit Master title style Strategy & Priorities Click to edit Master text styles 21 21
Slide 22: Triple Bottom Line Focus
Triple Bottom Line Focus Click toPeople editandMaster title style Sustainability is a core value underpinning our business strategy and centres across three platforms: Planet, Profit People Ethics & Integrity, OHS & Wellbeing, Inclusion & Diversity, Human Health & Nutrition, Food Safety, Sourcing Su
Slide 23: 2021/22 Triple Bottom Line Focus Areas
2021/22 Triple Bottom Line Focus Areas Click to edit Master title style Sustainability is embedded in everything we do Planet Water Efficiency Sustainability Co-Waste Projects 100% of our orchards use drip Develop sustainability targets to build Continue developing three promising irrigation tree an
Slide 24: Triple Bottom Line in Action: Co-Waste Projects
Triple Bottom Line in Action: Co-Waste Projects Click tocommercial edit Master title style Select Harvests is undertaking three co-waste projects to increase sustainability and generate positive outcomes for the business Almond Hull Almond Hull Fly Ash Waste Ash to Energy to Fertiliser to Liquid Fer
Slide 25: Select Harvests Strategy
Select Harvests Strategy Click to edit Master title style Select Harvests – in control of our destiny Click to edit Master text styles 25 2525
Slide 26: Delivering on our Strategic Priorities
Delivering on our Strategic Priorities Click to edit Master title style Strategic Priorities – the pathway to achieving our vision Delivered ■ Three consecutive years of yield outperformance across all tree age cohorts and growing regions1 Optimise the ■ Record almond volume of 28,250 MT achieved in
Slide 27: Volume Growth
Volume Growth Click to edit Master title style Our investment in greenfield developments and orchard acquisitions will underpin long term growth Select Harvests Theoretical Harvest Volume (MT) 33% 30,980 22% 29,537 28,250 23,250 22,690 15,700 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 Th
Slide 28: Industrial Value-Add Almond Business
Industrial Value-Add Almond Business Clickacrossto edit Master titlewithstyle Demand for our value-added industrial almond products continues to increase. +600 customers globally, multiple customer categories net sales approaching $60m Australian New Almond Product Introductions Multiple Customer Ca
Slide 29: FY2022 Priorities
FY2022 Priorities Click to edit Master title style Continue to execute on our growth strategy, underpinned by a world class portfolio of almond assets VISION To be a Leader in the Supply of Better for You Plant Based Foods STRATEGIC Food Division Carina West Strategic Growth PRIORITIES Restructure D
Slide 30: Thank You & Questions
Click to edit Master title style Thank You & Questions Please direct any queries to: Paul Thompson Brad Crump Andrew Angus Managing Director CFO and Company Secretary Investor Relations +61 3 9474 3544 +61 3 9474 3544 +61 402 823 757 Please note that background material/data regarding the global alm
Slide 31: Appendix
Click to edit Master title style Appendix Click to edit Master text styles 31 31
Slide 32: Historical Financial Summary
Historical Financial Summary Click to edit Master title style Select Harvests consolidated results for year ended 30 September/June SELECT HARVESTS CONSOLIDATED 2009 2010 2011 2012 2013 * 2014 2015 2016 2017 2018 2019 2020 2021 RESULTS FOR YEARS ENDED 30 SEPTEMBER/JUNE 30-June 30-September Total sal
Slide 33: Orchard Portfolio
Orchard Portfolio Click to edit Master title style One of the world’s largest almond growers, with a geographically diverse 9,262-hectare orchard portfolio Select Harvests Orchard Map Benefits of Geographic Diversity & Scale ■ Geographic diversity limits exposure to: − Weather − Disease spread − Ins
Slide 34: Planted Hectares
Planted Hectares Click to edit Master title style 2.6x growth in planted hectares since 2012 1 Select Harvests Orchard Profile Select Harvests Planted Almond Hectares1 Select Harvests Total Planted Almond orchard portfolio (as at 30 September 2021) hectares acres 9,262 9,262 Central Region Company O
Slide 35: Orchard Age Profile
Orchard Age Profile acres Click to edit Master title style Select Harvests weighted average orchard age is 13.5 years, with 100% of current planted cash generative 1 Age Profile of Select Harvests Almond Orchards1 (100% of current planted hectares are cash generative) 25% 71% 4% Planted orchards are
Slide 36: Orchard Acquisition & Development History
Orchard Acquisition & Development History Click to edit Master title style 26 separate almond orchard acquisitions and greenfield developments since 2010: 7,968 hectares in total 1 Pre 2010 (1,294 ha) 2011 2014 2016 • Kyndalyn Park (405 ha) • Belvedere (603 ha) • Allinga (253 ha) • Mountview (81 ha)
Slide 37: Almond Export Update
Almond Export Update are upClick 34% for to edittoMaster title style Exports continue to be impacted by shipping and logistics issues. Despite this, Australia exports the season date U.S. and Australian Almond Shipments Points to Note 2021/22 Crop YTD (Thousand MT) 2020/21 Crop YTD (Thousand MT) ■ U
Slide 38: Tree Nut Pricing
Tree Nut Pricing Click to edit Master title style Almonds have been the best value of the major tree nuts for two years Selected Tree Nut Pricing (A$/kg CFR) 18.00 16.00 14.00 12.00 10.00 8.00 6.00 4.00 Dec-17 Dec-18 Dec-19 Dec-20 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21 Jun-17 Aug-17 Jun-18 Jun-20 Oct-17
Slide 39: Australian Water and Climate Update
Australian Water and Climate Update Click of prices belowto the edit Master long-term average title style The 2020/21 Murray-Darling Basin water season has seen higher allocations and a movement Water Prices Climate Outlook ■ The 2021/22 water season has seen favourable weather conditions, higher MD
Slide 40: Californian Water and Climate Update
Californian Water and Climate Update Click storage The combined to editlevel Master of California’stitle style is only at 31% of total capacity 80% of California remains in Extreme Drought, with 38% of the state in Exceptional Drought. major reservoirs California Drought Monitor California Reservoir
Slide 41: Useful Almond Industry Websites
Useful Almond Industry Websites Click to edit Master title style Industry Associations Californian Almond Board www.almondboard.com Almond Board of Australia www.australianalmonds.com.au International Nut and Dried Fruit Council www.nutfruit.org/about-us/history Industry Reports US Crop Fore