Slide 1: Unlocking Significant Value of Long-Term Assets
Unlocking Significant Value of Long - Term Assets June 8, 2022
Slide 2: Disclosure: Forward-Looking Statements
2 Disclosure Forward - Looking Statements This presentation contains forward - looking statements, including guidance for fiscal years 2022 and beyond, within the meaning o f Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Th
Slide 3: Limoneira is an agricultural and development company
Limoneira is an agricultural and development company that seeks to not only maximize value for its customers and shareholders, but to enhance its legacy as a steward of both its natural and human resources. To that effect, Limoneira employs sustainable practices in all aspects of operations.
Slide 4: Founded in 1893, Limoneira Has a Strong Asset Base
8,500 U.S. FRUIT - BEARING ACRES 1 4 Founded in 1893, Limoneira Has a Strong Asset Base and Is Well - Positioned for Continued Global Expansion. Year - round global supplier of citrus that eliminates seasonality for customers Real Estate Development Project expected revenue during the next five fisc
Slide 5: Strategic Objectives and Priorities
5 2 3 4 1 5 Strategic Objectives and Priorities Expanding One World of Citrus ΠAsset Light Business Model Improve ESG Efforts Unlocking Market Value of Balance Sheet Assets Digital Transformation Plan Real Estate Developments
Slide 6: Expected Outcomes of New Strategic Objectives and Priorities
Streamline operations and sell non - strategic assets 6 Expected Outcomes of New Strategic Objectives and Priorities Increase EBITDA and Dividend Per Share Reduce debt and right - size the balance sheet Improve return on invested capital (ROIC) Transition One World of Citrus to an “asset light” mode
Slide 7: Experienced Senior Management Team
Experienced Senior Management Team. Harold Edwards President / CEO Mark Palamountain Chief Financial Officer John Carter Vice President of Sales 32 years industry experience Joined Limoneira in 2003 Member of one of the farming families associated with the Company over its long history 24 years fina
Slide 8: Expanding One World of Citrus with an Asset Light Model
New business model to focus on growth of “asset light” sales 8 Expanding One World of Citrus with an Asset Light Model Focus on growth of “asset light” sales using more Grower Partner fruit in order to reduce impact of pricing volatility and challenging farming costs – In lemons targeting 70% Grower
Slide 9: Expanding One World of Citrus
Expanding One World of Citrus 1 Œ
Slide 10: A Vertically Integrated Player Within a Highly Fragmented Space
Increased operating leverage and flexibility Enhanced customer service and satisfaction Higher growth and margins High - quality products Integrated farm - to - customer supply chain Low - cost production Diverse global sourcing and distribution network Superior product mix Global scale and customer
Slide 11: Year-round global supplier of citrus
Year - round global supplier of citrus that eliminates seasonality for customers. 11 FARMING Lemons Avocados Oranges Global End Markets DAYS PER YEAR DAYS PER WEEK HOURS PER DAY 300k MEXICAN & SOUTH AFRICAN SOURCED GROWERS 365 / 24 / 7 6.2M CARTONS OF FRESH LEMONS SOLD IN 2021 1 Billion Lemons
Slide 12: International Presence: A Hub of Key Services
Limoneira processes, packages, ships, markets and distributes lemons from its farms and other growers. 12 INTERNATIONAL PRESENCE A Hub of Key Services to a Growing Portion of the Global Lemon Farming Industry. 100k Mexico/South Africa Sourced Growers 4.2 M USA LEMON CARTON ACTUALS FY21 2.1 M 2.1 M 1
Slide 13: Critical Partnerships
End Customers We enable outside and affiliated citrus/produce growers to gain access to the most rewarding end markets and key customer points of entry. 13 CRITICAL PARTNERSHIPS Providing a Critical Link Between Highly Fragmented Citrus Growers and Diverse End Markets. Growers Packers Marketers / Di
Slide 14: Highly Automated Packing Platform
14 PACKING PLATFORM Transformed Our Packing Facility Into a Highly Automated Packing Platform. Current Packing Facility $29 M was spent modernizing and streamlining facilities to be state - of - the - art (in 2016) 14% more lemons packed 25% increase in third - party packings Now able to grow throug
Slide 15: Expect Long-Term Growth in Avocados
7.2 7.1 8.3 8.4 8.9 2016 2017 2018 2019 2020 15 AVOCADO GROWTH Expect long - term Growth in Avocados. REVENUE $10.8 $9.5 $6.6 $5.4 $8.8 $6.8 2016 2017 2018 2019 2020 2021 U.S. Pounds per Person Dollars in Millions 4% of 2021 agricultural revenue 2.2% U.S. Market Share one of the largest growers 800
Slide 16: Specialty Crops
16 SPECIALTY CROPS Limoneira’s specialty crops open doors to customers looking for varietal, local, organically - grown produce. PINK LEMONS MINNEOLA TANGELOS SATSUMA MANDARINS PUMMELOS PISTACHIOS WINE GRAPES Limoneira Pink Lemons
Slide 17: Expect Long-Term Increase in Global Demand for Fresh Citrus
4.1 4.3 4.3 4.8 5 .0 2016 2017 2018 2019 2020 $85 $94 $104 $150 $138 $143 2016 2017 2018 2019 2020 2021 Expect Long - Term Increase in Global Demand for Fresh Citrus. CONSUMPTION CONSUMPTION $6.1 $7.1 $8.9 $6.0 $7.7 $4.4 2016 2017 2018 2019 2020 2021 U.S. Pounds per Person Dollars in Millions Dollar
Slide 18: Global Demand for Fresh Citrus Continues to Grow
7.2 7.2 7.3 7.4 2016 2017 2018 2019 U.S. Pounds per Person Dollars in Millions $4.0 $5.0 $5.1 $5.2 $5.8 $7.3 2016 2017 2018 2019 2020 2021 Global Demand for Fresh Citrus Continues to Grow. GLOBAL DEMAND SPECIALTY CITRUS CONSUMPTION REVENUE Sources: US Department of Agriculture; Economic Research Ser
Slide 19: Brokered Fruit Revenue Showed Massive Gains in FY21
This success with Brokered Fruit draws even more third - party growers to the Limoneira packing, processing and sales system 19 BROKERED FRUIT Revenue for Brokered Fruit, with Limoneira as the Principal Party in the Transaction, Showed Massive Gains in FY21. BENEFIT: Offsets seasonally slower quarte
Slide 20: Unlocking Market Value of Balance Sheet Assets
2 Unlocking Market Value of Balance Sheet Assets
Slide 21: Have Identified $100 Million of Near-Term Asset Sales
21 PORTFOLIO VALUE Have Identified $100 Million of Near - Term Asset Sales AS OF AUGUST 31, 2021 ACRES FMV 1 NET BOOK VALUE Real estate assets 600 $100M – $150M $87M Agricultural assets (land, buildings, orchards, water) 15,400 $475M – $600M $245M Other assets $25M – $30M $19M Less estimated current
Slide 22: Holding Significant Valuation in Water Rights
22 WATER RIGHTS Holding Significant Valuation in our Ownership Over Water Rights. Water Assets Water rights, usage rights, and water pumping rights associated with Limoneira land ~ 28,000 ACRE FEET OF OWNED WATER RIGHTS $10k – $40k PER ACRE FOOT Range of recent water rights sales in CA/AZ Substantia
Slide 23: Real Estate Ownership
23 REAL ESTATE OWNERSHIP Owns Premium Land in Central/Southern California, Arizona, Chile, Argentina, and a Variety of Commercial Properties. Land in Chile & Argentina Office Buildings District I, II & III Packinghouses Premium land Commercial property Premium land and commercial property assets La
Slide 24: Community Wellbeing
Reducing our Carbon Footprint 24 COMMUNITY WELLBEING Serving Our Surrounding Communities to Develop More Productive Relationships with our Stakeholders. Feeding Farmers Providing Land for Medical Pavilion Sponsoring Communities Building Housing for Workers Reducing Pesticides
Slide 25: Real Estate Developments
LIMONEIRA Real Estate Developments
Slide 26: Real Estate Partners & Closings
Diversified Revenue Stream Includes Monetizing Non - Core Agribusiness Land. 26 REAL ESTATE PARTNERS & CLOSINGS Limoneira entered a partnership with the Lewis Group of Companies to develop “Harvest at Limoneira” — a residential and commercial real estate project. Nationally Recognized Homebuilder Pa
Slide 27: New Development: Harvest at Medical Pavilion
27 NEW DEVELOPMENT Harvest at Medical Pavilion EAST AREA 2 STRATEGICALLY LOCATED CLOSE TO HARVEST AT LIMONEIRA DEVELOPMENT PROJECT Provides upside to initial expected cash flow of $95 M + ~25 ACRES OF EAST AREA 2 INTENDED FOR MEDICAL CAMPUS LOT 1 TO BE DEDICATED MEDICAL OFFICE BUILDINGS LOT 2 TO AN
Slide 28: Financial Status & Projections: Harvest at Limoneira
28 FINANCIAL STATUS & PROJECTIONS Harvest at Limoneira CURRENT HARVEST AT LIMONEIRA CASH FLOW PROJECTIONS Fiscal Years 2022E 2023E 2024E 2025E 2026E Total Annual Projected Distribution $8M $15M $27M $30M $15M PROJECT STATUS Cash Flow Potential Approximately $115M over the life of the project (of whi
Slide 29: Future Conversion of Select Non-Core Land
Profits from sale of non - essential assets and real estate development will be used to reduce existing debt, fund acquisitions, as investment to increase farming efficiencies and to expand packing capabilities 29 Future Conversion of Select Non - Core Land.
Slide 30: ESG Efforts
LIMONEIRA ESG Efforts WihAAAae NEP Oe
Slide 31: Continued Commitment to Improve ESG Scores
31 Invest in regenerative agricultural practices Invest In Focus on sustainability Focus On Evolve governance structure Evolve RESPONSIBLE PRACTICES Limoneira remains committed to enhancing and improving ESG scores Continued Commitment to Improve ESG Scores. Expand Expand relationship with Agromin
Slide 32: Evolution of Board Structure and Composition
32 RESPONSIBLE PRACTICES Evolution of Board Structure and Composition to Enhance Effectiveness. Evolving Governance Structure 1 2 3 4 New committee leadership to affect positive change Key Milestones Establishing best governance practices 1 2 3 4 5 Unanimous board approval of strategic plan and ESG
Slide 33: Commitment to ESG is Deeply Embedded in Our Culture
Limoneira has been treading lightly on the land since its founding 129 years ago — long before sustainability entered the modern lexicon. 33 RESPONSIBLE PRACTICES Commitment to ESG is Deeply Embedded in Our Culture. Leader for Ventura County in the use of responsible water management practices Worki
Slide 34: Housing & Community Support
34 HOUSING & COMMUNITY SUPPORT Investing in the Power of People Through Properties. One of the first agricultural employers to offer on - campus housing to their workers Donated over $2.5 million to support schools, community and industry organizations in Ventura, Santa Barbara, San Luis Obispo, and
Slide 35: Digital Transformation Plan
Digital Transformation Plan 5
Slide 36: A Real-Time Digital Information System
A Real - Time Digital Information System to Increase Efficiency Across the Supply Chain. Greater yield and quality Improved efficiencies within harvest and packing teams Sales team able to improve fresh utilization 36 DIGITAL MONITORING Sensors located in every block of Limoneira’s ranches to gather
Slide 37: Water Management: Innovating New Methods of Protecting Water
We address water scarcity and potential negative impacts on community water resources by maintaining a careful balance between water demand and supply — and by driving efficiencies in water use. 37 WATER MANAGEMENT Innovating New Methods of Protecting Water. Moisture sensors determine when trees nee
Slide 38: Financial Performance & Outlook
Financial Performance & Outlook 6
Slide 39: Driving DPS Growth Through Increased Revenue
DIVIDENDS PER SHARE GROWTH Driving DPS Growth Through Increased Revenue and Operational Efficiencies. $112 $121 $129 $171 $165 $166 2016 2017 2018 2019 2020 2021 REVENUE ($M) $0.20 $0.22 $0.25 $0.30 $0.30 $0.30 2016 2017 2018 2019 2020 2021 DIVIDENDS PER SHARE Annual dividend has increased by over t
Slide 40: Expected Outcomes of New Strategic Objectives and Priorities
Streamline operations and sell non - strategic assets 40 Expected Outcomes of New Strategic Objectives and Priorities Increase EBITDA and Dividend Per Share Reduce debt and right - size the balance sheet Improve return on invested capital (ROIC) Transition One World of Citrus to an “asset light” mod
Slide 41: Financial Outlook: Positioned to Realize Financial Growth in FY 2022
41 FINANCIAL OUTLOOK Positioned to Realize Financial Growth in FY 2022. Projections THE COMPANY EXPECTS TO RECEIVE from Harvest at Limoneira during next five fiscal years, beginning in FY22. $95 M + 1,000 Additional acres of non - bearing lemons estimated to become full bearing over the next four ye
Slide 42: Q&A
Q&A
Slide 43: Thank You.
Thank You.