Select Harvests Limited · ASX:SHV
Select Harvests — Shareholder Meeting (February 2022)
54 slides from Select Harvests's shareholder meeting presentation, Feb 25, 2022
Slide 1: 2021 Annual General Meeting – Delivering on Growth
2021 Annual General Meeting – Delivering on Growth 11am Friday 25 February 2022
Slide 2: Michael Iwaniw - Chairman
Michael Ilwaniw - Chairman Za SELECT HARVESTS cin LD ,
Slide 3: Board of Directors
Board of Directors Michael Iwaniw Fred Grimwade Nicki Anderson Fiona Bennett Chairman Non-Executive Director Non-Executive Director Non-Executive Director Appointed November 2011 Appointed July 2010 Appointed January 2016 Appointed July 2017 Guy Kingwill Travis Dillon Paul Thompson Non-Executive Dir
Slide 4: Disclaimer & Basis of Preparation
Disclaimer & Basis of Preparation 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 does not take into account the in
Slide 5: Agenda
Agenda ■ Chairman’s Address − FY2021 Review − Piangil Investment Performance − Processing Upgrades and Co-waste Projects − Strategy Update − Company and Market Outlook ■ Managing Director’s Address − Almond Pricing and Market Conditions − Business Outlook − FY2022 Priorities ■ Business of the AGM 5
Slide 6: Technology & Procedural Matters
Technology & Procedural Matters
Slide 7: Virtual Meeting Guidelines
Virtual Meeting Guidelines Today’s meeting is being held online via the Computershare meeting platform. This allows Shareholders, Proxies and Guest to attend the meeting virtually. All attendees can watch a live webcast of the meeting. In addition, shareholders and proxies have the ability to ask qu
Slide 8: Online Attendees – Questions Process
Online Attendees – Questions Process − To ask a written question select the Q & A icon − Select the topic your question relates to from the drop-down list Michael Iwaniw - Chairman − Type your question in the text box and press the send button − To ask a verbal question follow the instructions below
Slide 9: Online Attendees – Voting Process
Online Attendees – Voting Process − When the poll is open, select the vote icon at the top of the screen − To vote, select either For, Against or Abstain − You will see a vote confirmation Michael Iwaniw - Chairman − To change or cancel your vote “click here to change your vote” at any time until th
Slide 10: Michael Iwaniw - Chairman
Michael Iwaniw - Chairman Z SELECT HARVESTS Gls Gx)
Slide 11: Chairman's Address
Chairman’s Address Za SELECT HARVESTS in Qu
Slide 12: FY2021 Financial Overview
FY2021 Financial Overview A lower almond price has impacted earnings. Gearing remains low, with operating cash flows strengthening due to the improved timing of export shipments Reported Reported Earnings per Share (Basic) $15.1m $40.4m 12.7 cents Final dividend of 8.0c fully franked NPAT from conti
Slide 13: Discontinued Operations
Discontinued Operations Discontinued operations include the Lucky, Sunsol and NuVitality Consumer Brands and non-almond Industrial Business currently manufactured at the Thomastown Production Facility FY2021 Discontinued Operations ($m) ■ Following a detailed strategic review, Select Harvests commen
Slide 14: FY2021 Operating Overview
FY2021 Operating Overview A third consecutive year of yield outperformance across all age cohorts and growing regions1, with the acquisition of Piangil helping to deliver a record almond crop, 22% higher than FY2020 Almond Crop Average Almond Price Water Costs 28,250 MT $6.80/kg $26.8m Continue to m
Slide 15: Almond Price
Almond Price Almond prices have returned to the low levels seen last year, with excess inventory in key markets, stock carryover of Californian inventories and global shipping and logistics disruption impacting prices Farm Gate Almond Prices (US$/Lb) $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $
Slide 16: Piangil Investment Review
Piangil Investment Review Yield, quality and operating costs inline with expectations Almond Crop Operating Costs Capex In line with expectations Operating costs inline Upfront capex and above industry with business case investments are being standards yields assumptions executed to plan Staff Safet
Slide 17: Processing Upgrades
Processing Upgrades An extensive capital program is underway at the Carina West processing plant ■ Significant upgrade of Carina Wests almond sorting and packing capabilities, in time for the Increase Processing 2022 season. Benefits include: Capacity and − Lower labour costs and increased automatio
Slide 18: Co-Waste Projects
Co-Waste Projects Select Harvests is undertaking three co-waste projects to increase sustainability and generate positive commercial outcomes for the business Almond Hull Waste Ash Almond Hull Fly Ash to Energy to Compost to Fertiliser to Liquid Fertiliser Select Harvests co-generation Waste ash by-
Slide 19: Long Term Almond Price
Long Term Almond Price Over the last 30 years the linear trend USD almond price has increased by 2.9% CAGR, with a 9-to-12-year cycle between peaks and troughs Long Term Farm Gate Almond Price (US$/Lbs) $4.50 $4.00 $4.00 $3.50 $3.00 $2.81 $2.48 $2.50 $2.00 $1.83 $1.50 $1.45 $1.00 $0.93 $0.86 $0.50 $
Slide 20: Select Harvest Strategy
Select Harvest Strategy Select Harvests – in control of our destiny 20
Slide 21: Triple Bottom Line Focus
Triple Bottom Line Focus Sustainability is a core value underpinning our business strategy and centres across three platforms: Planet, People and Profit People Ethics & Integrity, OHS & Wellbeing, Inclusion & Diversity, Human Health & Nutrition, Food Safety, Sourcing Sustainability Profit Planet Pos
Slide 22: Delivering on our Strategic Priorities
Delivering on our Strategic Priorities Strategic Priorities – the pathway to achieving our vision Delivering ■ 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 FY2021, an +80% increase since
Slide 23: Allinga and Renshaw
Allinga and Renshaw Leading brands in the wholesale and industrial almond market 23
Slide 24: Board Changes
Board Changes Nicki Anderson Travis Dillon Non-Executive Director Non-Executive Director Appointed January 2016 Appointed November 2021 24
Slide 25: Chairman's Address
Chairman’s Address Za SELECT HARVESTS in DP rs
Slide 26: Paul Thompson – Managing Director
Paul Thompson – Managing Director 26
Slide 27: Almond Pricing and Market Conditions
Almond Pricing and Market Conditions Market pricing continues to remain volatile, with attention now turning to the California almond bloom next month Farm Gate Almond Prices (US$/Lb) Market Conditions $4.00 ■ Almond prices have retracted back to H1 CY2021 levels, with excess $3.50 holding of invent
Slide 28: 2022 Outlook
2022 Outlook ■ Excluding some isolated storm damage, all Select Harvests’ growing regions have had good growing conditions to date Crop Estimate ■ Based on historical average yields and current maturity profile we anticipate a crop of 29,500 MT, 4% higher than last year ■ The current crop estimate i
Slide 29: 2022 Outlook
2022 Outlook ■ Cost pressures are expected to increase in 2022, with: − External labour cost pressures Costs − Increasing fertiliser input costs − Higher freight and logistics costs ■ Lower annual entitlement water prices will offset some of the cost inflation ■ In 2022 we will undertake an extensiv
Slide 30: FY2022 Priorities
FY2022 Priorities Continue to execute on our growth strategy, underpinned by a world class portfolio of almond assets 1. Safety and Wellbeing- Ensure safety and wellbeing of all stakeholders 2. Food Division Restructure- complete the exit from Thomastown and expansion of Carina West. 3. Horticultura
Slide 31: Paul Thompson – Managing Director
Paul Thompson – Managing Director 31
Slide 32: Business of the AGM
Business of the AGM Z SELECT HARVESTS Gls Gx)
Slide 33: Business of the AGM
Business of the AGM Ordinary Business − Consideration of Financial Statements and Reports Resolutions − Resolution 1: Adoption of Remuneration Report − Resolution 2: Election of Directors − Resolution 3: Increase in maximum annual remuneration of non- executive directors − Resolution 4: Participatio
Slide 34: Consideration of Financial Statements and Reports
Consideration of Financial Statements and Reports 34
Slide 35: Q&A Session
Q&A Session avests qo GD 35
Slide 36: Resolution #1: Remuneration Report
Resolution #1: Remuneration Report 36
Slide 37: Resolution #1: Remuneration Report
Resolution #1: Remuneration Report For: 71,111,841 Against: 1,135,927 Open-Usable: 442,518 37
Slide 38: Resolution #2: Election of Directors
Resolution #2: Election of Directors Travis Dillon Guy Kingwill Non-Executive Director Non-Executive Director Appointed November 2021 Appointed November 2019 38
Slide 39: Resolution #2(a): Election of Guy Kingwill
Resolution #2(a): Election of Guy Kingwill For: 71,275,670 Against: 2,108,857 Open-Usable: 508,881 39
Slide 40: Resolution #2(b): Election of Travis Dillon
Resolution #2(b): Election of Travis Dillon For: 71,462,382 Against: 1,914,827 Open-Usable: 510,881 40
Slide 41: Resolution #3: Increase in maximum remuneration of non-executive directors
Resolution #3: Increase in maximum remuneration of non-executive directors 41
Slide 42: Resolution #3: Increase in maximum remuneration of non-executive directors
Resolution #3: Increase in maximum remuneration of non-executive directors For: 72,003,082 Against: 887,075 Open-Usable: 441,837 42
Slide 43: Resolution #4: Participation by the Managing Director in the Long-Term Incentive Plan
Resolution #4: Participation by the Managing Director in the Long-Term Incentive Plan 43
Slide 44: Resolution #4: Participation by the Managing Director in the Long-Term Incentive Plan
Resolution #4: Participation by the Managing Director in the Long-Term Incentive Plan For: 70,293,150 Against: 1,342,323 Open-Usable: 443,827 44
Slide 45: Thank You
Thank You 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 almond industry can be found on the Select Harve
Slide 46: Appendices
Appendices Z SELECT HARVESTS Gls Gx)
Slide 47: Historical Financial Summary
Historical Financial Summary 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 sales 248,581 238,376 248,316 246,76
Slide 48: Yield Performance
Yield Performance A third consecutive year of yield outperformance across all age cohorts and growing regions1. Immature orchards delivered an additional 1,876 MT above industry standard yields in FY2021 FY2021 Yield Performance (MT/Hectare) Points to Note Mature ■ Biennial Nature of Crop Immature 4
Slide 49: Volume Growth
Volume Growth 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 Theoretical Volume 1 1 2 Yield from
Slide 50: Orchard Portfolio
Orchard Portfolio 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 − Insect infestation ■ Positions the c
Slide 51: Planted Hectares
Planted Hectares 2.6x growth in planted hectares since 20121 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 Owned 1,693 4,183 20% Piangil Orcha
Slide 52: Orchard Age Profile
Orchard Age Profile Select Harvests weighted average orchard age is 13.5 years, with 100% of current planted acres cash generative1 Age Profile of Select Harvests Almond Orchards1 (100% of current planted hectares are cash generative) 25% 71% 4% Planted orchards are Planted orchards in economic swee
Slide 53: Orchard Acquisition & Development History
Orchard Acquisition & Development History 26 separate almond orchard acquisitions and greenfield developments since 2010: 7,968 hectares in total1 Pre 2010 (1,294 ha) 2011 2014 2016 • Kyndalyn Park (405 ha) • Belvedere (603 ha) • Allinga (253 ha) • Mountview (81 ha) • Boundary Bend (127 ha) • Banner
Slide 54: Useful Almond Industry Websites
Useful Almond Industry Websites Select Harvests Internal Video https://vimeo.com/680215981 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 Indus
Select Harvests — Shareholder Meeting (February 2022) on 6ix