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Macquarie Small Cap Conference
20th July 2022
Paul Thompson
Managing Director & CEO
Disclaimer & basis of preparation
onlyThis 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 investment objectives, financial situation or needs of any particular investor. Investors should consider their own individual investment and financial circumstances in relation to any investment decision.
Certain statements contained in this presentation may constitute forward-looking statements or statements about future matters that are based upon information known and assumptions made as of the date of this presentation.
useThese statements are subject to risks and uncertainties. Actual results may differ materially from any future results or performance expressed, predicted or implied by the statements contained in this presentation.
The Select Harvests Limited financial statements are prepared in accordance with Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the Corporations Act 2001. This includes application of AASB 141 Agriculture in accounting for the current year almond crop, which is classified as a biological asset. In applying this standard to determine the value of the current year crop, the Company makes various assumptions at the balance date as the selling price of the crop can only be estimated and the actual crop yield will not be known until it is completely processed and sold. The resulting accounting estimates will, by definition, seldom equal the related actual results, and have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
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Select Harvests Overview
One of the worlds largest almond growers, with a geographically diverse 9,262-hectare orchard portfolio
▪ Listed on the ASX (SHV), with a market capitalisation of A$ 636m (14 July 2022) and 611 employees. | |||
Company | ▪ Australia's second largest almond producer and marketer with core capabilities across: Horticulture, Orchard Management, Nut | ||
Processing, Sales and Marketing. | |||
Overview | |||
▪ We supply the retail and industrial markets, exporting almonds globally. Continuing to build relationships in the fast-growing | |||
markets of India and China, as well as maintaining established routes to market in Asia, Europe and the Middle East. | |||
only | ▪ Geographically diverse almond orchards located in Victoria, South Australia and New South Wales, with a portfolio that includes | ||
more than 9,262 hectares of company owned and leased almond orchards and land suitable for planting. | |||
▪ Select Harvests weighted average almond orchard age is 13.5 years, with 100% of current planted hectares cash generative. Almond | |||
Orchard | |||
Profile | orchards remain economically viable for +25 years, providing Select Harvests with a solid foundation for long term growth. | ||
▪ Our state-of-the-art Carina West processing facility has the capacity to process above 30,000 MT of almonds in the peak season and | |||
is capable of meeting the ever-increasing demand for in-shell, kernel and value-added product. | |||
▪ The global almond market was valued at U.S.$ 8.6bn in 2020/21. The U.S. (California) accounted for 79% of world production in | |||
use | |||
2020/21, followed by Australia and Spain at 7% each. Australia has more than doubled its almond production in the last 10 years. | |||
▪ | The underlying fundamentals of our business remain strong. Demand for almonds, both in their natural form and as a value-added | ||
Almond | |||
Market | food ingredient, in products such as plant-based milks and yogurts, continues to grow. | ||
▪ We expect to see good consumption of almonds during the upcoming festive seasons of Diwali, Christmas and Chinese New Year. | |||
Customers will need to plan shipments earlier to ensure supply can meet demand. | |||
▪ Select Harvests remains well positioned through its low operating costs, ability to deliver large scale value-added production and | |||
strong balance sheet to benefit from the growing global demand for almonds. | |||
Growth | ▪ Our investment in greenfield developments and orchard acquisitions, including the December 2020 acquisition of the 1,566-hectare | ||
Strategy | Piangil Almond Orchard, will platform long term growth. | ||
ersonal | ▪ We continue to assess opportunities to increase our almond production base through acquisitions, if suitable orchards become | ||
available.
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SHV is growing almonds in a closed loop
We utilise everything that comes from our orchards
30,000MT | 130,000MT | ||||||||||||
Compost returned | Biomass produced | ||||||||||||
only | to orchards | by our orchards | |||||||||||
9,262 HA | |||||||||||||
Orchards | |||||||||||||
use | Fruit Forests | ||||||||||||
ersonal | 10,000MT | ||||||||||||
10,000MT | |||||||||||||
Biomass Energy | Inshell | ||||||||||||
Plant | Exported | ||||||||||||
60,000MT | 20,000MT | ||||||||||||
Stockfeed | Kernel Sales |
1: Marvinn y, E., Kendall, A. A scalable and spatiotemporally resolved agricultural life cycle assessment of California almonds. Int J Life Cycle Assess
2: Fulton, J., Norton, M. and Shilling, F. (2019). Water-indexed benefits and impacts of California almonds. Ecological Indicators.
2: March 2021 Report on the 'Economic contribution of the Australian Almond Industry' by RMCG Consulting for Horticulture Innovation Australia
- Almond trees in California absorb more C02 than they produce during their lifetime1
- Almonds provide a very high nutritional value, ranking the highest amongst all crops2
- The direct economic benefits of almond production based on market sales are larger than any other crops3
- Research is being undertaken in Australia to establish Australian Almond Industry position.
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Maintaining our values and delivering on our strategy
Select Harvests - in control of our destiny
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Select Harvests Limited published this content on 19 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 July 2022 06:43:06 UTC.