Select Harvests Limited · ASX:SHV

Select Harvests — H1 2012 Earnings Presentation

27 slides from Select Harvests's earnings presentation, Feb 29, 2012

1. Slide 1: Select Harvests 1H12 Results

   For personal use only Select Harvests 1H12 Results 29th February 2012 Michael Iwaniw, Chairman Paul Chambers, Chief Financial Officer

2. Slide 2: Agenda

   Agenda For personal use only Results highlights Financial performance Operational performance Industry fundamentals Strategy & outlook 2

3. Slide 3: Results Highlights

   Results Highlights For personal use only • First-half reported EBIT $9.4m, (1H11:$13.5m) • First-half adjusted EBIT $10,5m, (1H11$ 7.7m)) FINANCIAL PERFORMANCE • First-half reported NPAT $6.0m, (1H11:$10.1m) • First-half adjusted NPAT $6.8m, (1H11$5.5m) • 5c interim fully franked dividend • Crop pro

4. Slide 4: Agenda

   Agenda For personal use only Results highlights Financial performance Operational performance Industry fundamentals Strategy & outlook 4

5. Slide 5: Income Statement

   Income Statement Reported Adjusted Change For personal use only (A$m) 1H11 1H12 1H11 1H12 % Sales revenue 132.7 129.8 132.7 129.8 EBIT Managed 6.0 5.4 6.0 5.4 Orchards Company 5.8 2.5 - 3.5 Orchards Almond Division 11.8 7.9 6.0 8.9 +48% Food Division 3.5 3.5 3.5 3.5 Corporate (1.8) (2.0) (1.8) (2.0)

6. Slide 6: Crop forecasts and reporting cycle

   Crop forecasts and reporting cycle For personal use only Prior year crop finalised Half-year end Half-year results Full-year results announcement Full-year end announcement Initial crop estimate Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Almond harvest Almond Crop Processed Almond Crop sales

7. Slide 7: Adjustments

   Adjustments For personal use only (A$ ms) 1H11 1H12 EBIT 13.5 9.4 Lower realisation on Company Orchards 2011 crop (3.8) 1.1 Discount on acquisition of orchards acquired during the period (2.0) - Adjusted EBIT 7.7 10.5 7

8. Slide 8: Balance sheet

   Balance sheet 30 June 31 Dec For personal use only (A$m) 2011 2011 Current Assets excl. Cash 80.6 80.5  Investment in Cash 7.4 0.3 WA/acquisitions, tree Non Current Assets 214.4 232.6 development and working Total Assets 302.3 313.4 capital Current Liabilities (excl. Borrowings) 27.5 32.8 Borrowing

9. Slide 9: Cash flow

   Cash flow For personal use only (A$m) 1H11 1H12 EBITDA (excluding discount on 13.9* 9.2 acquisition) Change in Working Capital (17.1) 4.1  Positive EBITDA/cash conversion Taxes Received 1.5 -  Working capital plateau Net Interest (1.6) (1.6)  No Tax (R and D, Cash flow from operating activities (

10. Slide 10: Agenda

    Agenda For personal use only Results highlights Financial performance Operational performance Industry fundamentals Strategy & outlook 10

11. Slide 11: Almond division: harvest update

    Almond division: harvest update For personal use only  Current crop estimate is for 2012 to be higher than 2011 crop  More accurate estimate will be possible once harvest has been completed  Almonds have already been processed and packaged for sale to domestic and international markets  30% of 2

12. Slide 12: Almond division: Company Orchards

    Almond division: Company Orchards For personal use only  Reported EBIT 1H12:$2.5m (1H11: $5.8m)  Adjusted EBIT 1H12: $3.5m (1H11: $ -)  FY12 crop estimated ~7,300mt (FY11: 4,040mt)  Estimated price for 2012 crop up 10% on 2011 crop price  Crop estimate reflects expansion of Company Orchards por

13. Slide 13: Almond division: Managed Orchards

    Almond division: Managed Orchards For personal use only  1H12 EBIT: $5.5m (1H11: $6.0m)  Full water allocations in place, tree health good driving uplift in volumes  Increased processing and marketing volumes anticipated in FY12 13

14. Slide 14: Food division

    Food division For personal use only  1H12 EBIT $3.5m (1H11: $3.5m)  Improved performance against 2H11  Full operational and product review completed  Consolidate business  Focus on almond sales and core brands  Reduced cost base and improved efficiencies  Reduced working capital usage  Impro

15. Slide 15: Agenda

    Agenda For personal use only Results highlights Financial performance Operational performance Industry fundamentals Strategy & outlook 15

16. Slide 16: Almond fundamentals strong

    Almond fundamentals strong  Supply and demand have grown at 8% CAGR over past decade For personal use only  Current demand growth trending above growth rate at 11%  Average supply growth cannot be maintained due to slow down in recent plantings 16

17. Slide 17: Demand Shift towards China and India

    Demand Shift towards China and India For personal use only  Record January shipments + 28% driven by demand from China and India US shipments by destination Eastern Middle Europe Eastern Europe Eastern Europe East/Africa Middle 3% Middle 3% 3% 6% East/Africa East/Africa 11% 12% Americas Americas 30

18. Slide 18: Global almond production

    Global almond production For personal use only 2000 2010 2015 Australia Australia Australia 2% 5% 9% Others Others Others 22% 14% 12% USA USA USA 76% 81% 79% 18

19. Slide 19: Almond price

    For personal use only Almond price 19

20. Slide 20: Agenda

    Agenda For personal use only Results highlights Financial performance Operational performance Industry fundamentals Strategy & outlook 20

21. Slide 21: Company Orchards strategy on-track

    Company Orchards strategy on-track  Expansion of Company Orchards delivering For personal use only increased volumes  New South Wales and Victorian orchards on track for significant volume uplift  Maturity profile  Growing conditions  Water allocations  Expanded footprint enables access to add

22. Slide 22: Key focus areas for 2H12

    Key focus areas for 2H12  For personal use only Ongoing review cost structure  reduce working capital  strengthen balance sheet  Food Division restructure  realign cost base across the business  Investment in existing Company Orchards  improved yields  water allocations  tree health  Secur

23. Slide 23: Integrated business model

    Integrated business model For personal use only 23

24. Slide 24: Projected crop profile

    Projected crop profile  Post 2013 Select Harvests will manage 25% of Australia’s almond For personal use only acreage  Equates to 2% of global production Projections based on standard industry yields 50,000 40,000 30,000 Tonnes 20,000 10,000 0 Standard Industry Yields – standard yield per acre app

25. Slide 25: Select Harvests' growth drivers

    Select Harvests’ growth drivers  Global food security For personal use only  Strong world consumption growth  Plateauing global supply  Upside in international almond price  Increasing nut consumption in Australia and internationally  Increased future tonnages: yield, maturity of trees, increa

26. Slide 26: Outlook

    Outlook For personal use only  Outlook for the remainder of the year positive  Higher crop volumes anticipated for 2012 crop across Company Orchards  Firm almond price and sound fundamentals  Well placed to meet growing global demand for almonds  Strong Australian dollar continues to present ch

27. Slide 27: Questions

    For personal use only Questions 27

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