Select Harvests Limited

AGM – Chairman's Presentation

21 November 2014

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 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. These 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

Select Harvests – Financial Performance

Select Harvests - Strategy

Select Harvests - Brands

Orchards

Carina West Processing Facility & Laterals

Carina West Processing Facility – Hulling & Shelling

2014/15 Acquisition video available on our website www.selectharvests.com.au

Select Harvests Limited

AGM – Managing Directors Presentation

21 November 2014

Disclaimer & Basis of Preparation

Agenda

Business Performance

Almond Division
Food Division

Strategy Update

Overview
Acquisitions
Biomass / Cogeneration Plant
Almond Dryer

Supply & Demand Drivers

Global Update
SHV, Crop & Price Update

FY14 Performance

Earnings Before Interest & Tax ("EBIT")

Reported FY14 EBIT $41.8M* vs Reported FY13 EBIT $5.2M
Underlying FY14 EBIT $41.8M* up 11% vs Underlying FY13 EBIT $37.7M

Net Profit after Tax ("NPAT")

Reported FY14 NPAT $29.0M* vs Reported FY13 NPAT $2.9M
Underlying FY14 NPAT $29.0M* up 27% vs Underlying FY13 NPAT $22.9M

Cash flow/Gearing/Funding

FY14 Operating cash flow $23.1M (FY13 $4.1M) strong conversion
Dual banking arrangement was agreed with NAB & Rabo including acquisition facility

Earnings Per Share ("EPS")

Reported FY14 EPS 50.2 cents per share ("cps") - up 25% vs Underlying FY13 EPS 40.1 cps

Dividends

Final Dividend (unfranked) 9 cps last year Final Dividend 9 cps
Full Year Dividends total 20 cents per share last year Full Year Dividends totalled 12 cps

* FY14 includes $6.0M pre-tax revaluation of almond trees

Increased profit and strong cash flow generation despite lower than anticipated crop volumes

FY14 Performance

OHS & Environment

OHS Another improved safety result with group Lost Time Injuries (LTI) down 72.7%, year on year
Zero major environment incidents

Acquisitions

Allinga & Mendook

Other Achievements

Consumer complaints down 20%
Processing damage at Carina West processing facility down 22%
Processing cost flat at Thomastown

Post Year End Events

Amaroo acquisition (including water acquisition 6,215 ML)
Mullroo (Grewal) acquisition
Capital raising $46.5M placement, $19.7M Share Purchase Plan
Seven year high 41.7% Market Share Aug 2014 for Lucky Brand
Industrial sales continue to grow

Performance improvement extends beyond the financials

Almond Division – Performance & Activities

Performance

Price A$8.50/kg (FY13 A$6.38/kg) up 33% offsetting for reduced volume & quality
Costs increased due to impact of wet harvest
$6.0M revaluation of trees supported by higher almond price
FY14 Acquisitions Allinga & Mendook (680 planted acres & 2,600 unplanted acres)
FY15 Acquisitions Amaroo & Mullroo 2,481 planted acres & 2,865 unplanted acres in FY15 to date.

Activities

Commenced orchard replant program 512 acres. Largely offset by Orchard maturity profile of portfolio
Due diligence, bedding down and integration of acquisitions
Improving on farm productivity and execution
Planning orchards (replants/greenfields)
Growing and supporting 2015 crop

SHV well positioned to take advantage of Supply & Demand fundamentals

Food Division – Performance & Activities

Performance

Industrial delivers another record result 24% up on FY13
Revenue reduction driven by loss of major retailer private label almond contracts
Branded business remains strong
Improved sales mix has driven margin improvement
Production cost per kg remained flat year-on-year in spite of private label volume loss

Activities

Brand relaunches (reformulate, relaunch) Sunsol Mueslis, Lucky Smart Snax
Absolute focus on margin management and return on investment
Multiple Consumer products price increases
Scoping new markets both local and export

Emergence of a Brand driven Food Business

Strategy - Sunsol & Lucky Smart Snax Relaunch

New Branding & Packaging, New Formulation, Improved Margins

17 17

Strategic Objectives & Activities

			FY13 INITIATIVES	FY14 INITIATIVES	FY15 INITIATIVES
1.	CONTROL CRITICAL MASSOF ALMONDS	Secure the critical mass of nutsneeded to maximizeprofitability and leverage theglobal almond opportunity.	•Acquired 1,286 acres almond orchard•Ceased WA investment	•Acquired 680 acres planted orchard•Acquired 1,000 acres unplanted•Replanted 512 acres @ higher densities	•Acquired 2,481 acres planted orchard•Acquired 4,465 acres unplanted•Acquired 6,215 ML high security water•Planting 948 acres Allinga
2.	IMPROVE YIELD & CROPVALUE	Improve yield and overall cropvalue by perfecting on-farmand farm to factory practices.	•Restructured Horticulture Division•Investments in Benchmarking/Tech.•Improve efficiency/protect yield•$500K frost fans	•Total review of Horticultural assets15%•Further $500K frost fansROCE•Additional harvest equipment	•Additional harvest equipment•Biostimulantstrial•Trial catch & shake harvest technology
3.	BE BEST IN CLASS SUPPLYCHAIN	Continuously improve oursupply chain, achieving highquality, low cost and optimumcapital utilisation.	•Restructured Operations Division	•Evaluate operational improvements&refine proposals•New Optical Sorter at Thomastown	•Biomass ElectricityCogen. Plant•Carina West Dryer
4.	INVEST IN INDUSTRIAL &TRADING DIVISION	Allocate resources to leverageour trading skills and growsales in the industrial channel	•Grew Industrial Division 40%	•Grew Industrial Division 24% throughlocal and SE Asia customer base•Innovations assisted growth	•Expandingbusiness with foodprocessors in local and SE Asianmarkets
5.	TURN AROUNDPACKAGED FOODBUSINESS	Develop a new model for thepackaged food category thatwill deliver sustainable returnsabove the cost of capital.	•Exited unprofitable RetailBrandbusiness•Product Research/Collect Insights	EPS•Product Development -7-10% paInnovation/Renovation/Reformulation/Repackaging•Brand relaunch -Sunsol& Lucky SmartSnax	•Multiple relaunches & new products•Range rationalisation•New distributors -Thailand & Malaysia
6.	FIX OUR SYSTEMS &PROCESSES	Develop the business systemsand processes required to be aglobal industry leader.	•OHS improvement -LTI's dropped 60%	•OHS improvement -LTI's dropped 73%•New risk management framework•New OHS policies/procedures	•IT upgrade
7.	ENGAGE WITH OURPEOPLE & OURSTAKEHOLDERS	Engage with investors and ourindustry while developing theteam required to be a globalindustry leader.	•Investor engagement –conferences, sitetours and road shows	10%•Hort3 training for Farm Management•Refreshed company websiteEBIT pa•Introductionof employeenewsletters/intranet	•Further development of PerformanceReview process•Diversity Committee

Significant progress on implementation of company's 7 strategic platforms & transition to a fully integrated agribusiness

Acquisitions – Geographic Diversity, Scale & Future.

Allinga – Loxton, SA (A$16.3M)

680 acres mature almond
948 acres suitable for planting to almonds (plant FY15)
Gained SA water buyback/efficiency funding (Net $5m) support new plantings

Amaroo – Paringa, SA (A$52.5M)

2,046 acres almond (1,288 acres mature, 758 acres immature)
1,500 acres suitable for planting to almond (plant FY16,17)*
6,215ML high security water entitlements
764 acres citrus (leased out)

Mullroo (Grewal) – Lake Cullulleraine, VIC (A$8.5M)

435 acres almond (175 acres mature, 260 acres immature)
1,365 acres suitable for planting to almond (plant FY16, 17)*

Mendook – Euston, NSW (A$2.0M)

1,600 acres suitable for planting to almonds (plant FY16)*
* Subject to business case

Geographically diversified portfolio of 13,311 acres of planted almond orchard

Strategy - Carina West Biomass Boiler

Project:

1. To use almond prunings, hull & shell to generate steam to supply a turbine which will generate of electricity & steam for Carina West facility & neighbouring farms.
1. Replace existing low voltage infrastructure with high voltage infrastructure, reducing buy price of electricity

Technology/Performance:

Technology (EX Belgium) over 4,000 installations globally, first with almond hull
Turn key contract with Vyncke & Obrien's Boiler Services completed by Nov 2016
Consumes 30,000 tonnes of orchard & production waste
Operates 328 days 24/7
Generates 2.5MW electricity p.a., 17.5 tonnes steam/hour
Abates 23,500 tonnes of Greenhouse gases
Requires 8 skilled FTEs to operate
Bi product 1,500 tonnes of potash
Excess energy to be feed into grid offset against other facility usage
Vic Gov't has indicated support post election

Funding:

Annual CAPEX Budget (On Balance Sheet)
In the process of applying for financial support from Victorian Government

$11.9m with annual saving of $2m per annum once fully operational

Strategy - Field Stock Drying at Carina West

Project:

To allow field crop harvested to be green or wet then secured and stored with out quality deterioration

Technology/Performance:

Grain dryer which will reduce moisture by 5% per cycle
15 tonnes per hour of field or kernel weight
Energy source: Diesel then direct stream from Biomass plant
Commissioned Jan 2015 in time for next season
Example from 2014 season:
- 32,000 tonnes dried @ direct cost $320k
- New drying direct cost projected savings over 50%

Funding:

Annual CAPEX Budget ( On Balance Sheet)

New Dryer $720k at Carina West Processing will assist yield/quality retention in wet harvests

Global Supply - US Drought

SHV AGM 2013 – 0% Exceptional Drought, 11% Extreme Drought, 84% Severe Drought

SHV AGM 2014 – 55% Exceptional Drought, 80% Extreme Drought, 94% Severe Drought

ENTIRE US ALMOND INDUSTRY IS IN EXCEPTIONAL DROUGHT REGIONS

Global Supply - Crop Outlook & Price Update

US Crop Update (2013/14) - harvested

Market estimate of USA 2013/14 Almond crop now 1.7-1.8 billion pounds (Ref: Hilltop Ranch 2 Nov 2014)
Down 300-400 million pounds on original NASS Objective Estimate of 2.1 billion pounds

Free Trade Agreement (FTA)

Recent FTA's between Australia and Japan, Korea & China almond tariff reductions 2.4%, 8% and 10% respectively
China is 2nd largest market for almonds globally rapid growth in last decade majority supplied from US
Improves Select Harvests competitive position against current suppliers (mainly USA)

SHV Crop Update (2014/15) - growing

Good blossom & pollination
Growing conditions have been good
Current estimate is for a good average crop
2014/15 crop estimate: approx. 13,000 tonnes (based on maturity profile of orchards & condition of acquired orchards)

Price (A$)

SHV current FY15 pool price estimate is 10-15% above SHV FY14 average price (A$8.50/kg)
Anticipate price to remain stable for the foreseeable future

Outlook – Business Focus

Almond Division

Maximise 2015 crop
Integrate acquisitions
Prepare for 2015 & 2016 greenfield plantings & funding options
Development of orchard benchmarking
Implement CAPEX: Dryer, Biomass etc
Secure further mature orchards

Food Division

Continue innovation stream in industrial/packaged goods segments
Raise the bar on quality and increase velocity of new product development
Increase focus on SE Asia customer base

Corporate

Invest in business systems and IT platform
Undertake strategy review

Significant opportunity to improve the base business

Thank you

Please direct any queries to:

Paul Thompson Paul Chambers Andrew Angus Managing Director Chief Financial Officer Investor Relations +61 3 9474 3544 +61 3 9474 3544 +61 402 823 757

Income Statement

	FY13	FY14
Financial Result	($m)	($m)
Reported Result
EBIT -Reported	5.2	41.8
Interest	(5.0)	(4.5)
NPBT	0.2	37.4
Tax (Expense)/Benefit	2.7	(8.3)
NPAT-Reported	2.9	29.0
Pre-Tax Adjustments*	32.5	-
Underlying Result
EBIT -Underlying	37.7	41.8
Interest	(5.0)	(4.5)
NPBT	32.7	37.4
(Tax Expense)	(9.8)	(8.3)
NPAT –Underlying	22.9	29.0

FY14 EBIT $41.8m (FY13 $37.7m)
Almond Division EBIT $40.8m (FY13 $36.4m)
- Strong performance
  - ─ 2014 crop yield below expectations
  - ─ Higher than anticipated yields and prices for 2013 crop
  - ─ Benefit of tree valuation of $6m
- 2014 costs up due to wet harvest season
Food Division EBIT $5.6m (FY13 $5.5m)
- Industrial sales up 24%
- Improved sales mix towards branded products
- Improved price management and cost control
Corporate costs $4.6m (FY13 $4.1m)
Tax expense includes R&D tax credit $1.8m
NPAT up 27% to $29m

* WA impairment and discount on acquisition

Strong Result – opportunity for growth from increased yield potential and food turnaround

Balance Sheet

Year EndingBalance Sheet	Jun-13($m)	Jun-14($m)
Current Assets excl. Cash	114.4	130.3
Cash	8.9	6.3
Non Current Assets	180.5	204.6
Total Assets	303.8	341.2
Current Liabilities (excl. Borrowings)	35.9	25.7
Borrowings	88.1	101.1
Non Current Liabilities (excl. Borrowings)	20.3	31.7
Total Liabilities	144.3	158.5
Total Equity	159.5	182.8
Net Debt	79.2	94.8
Net Debt /Equity	49.7%	51.9%

	Banking refinance, increase & extension complete
•	NAB & Rabobank -$135m
•	$50m term expiring 2018
•	$60m line -working capital & business projects
•	$25m acquisition line
•	Additional $50m acquisition bridge facilityapproved on 22 August 2014
	Timing of new crop sales & receipts
•	Straddles 30 June balance date
•	Significant receipts since then
Net Debt $94.8m (includes funding of $16.3m Allingaacquisition in FY14)
	Gearing 51.9% (debt/equity)
•	Long term target to be below 40%

• September 2014 equity raising to maintain current gearing

Achieve & maintain a prudent and flexible balance sheet to support growth strategy

Cash Flow

CashFlow	FY13($m)	FY14($m)
EBITDA –(FY13 Underlying)	42.5	45.6
Change in Working Capital	(34.2)	(17.8)
Taxes Received	0.9	-
Net Interest	(5.1)	(4.7)
Cash flow from operating activities	4.1	23.1
Investing cash flows	(13.9)	(29.9)
Increasein Debt	19.3	12.5
Dividends Paid	(2.4)	(8.8)
Net Increase/(Decrease) in Cash/Cash Equivalents	7.0	(3.1)

The majority of the 2014 crop held at 30 June expected to convert to cash in 1HFY15
Investing cash flows driven by:
- Orchard acquisitions $16.3m (Allinga)
- PPE $8.6m
- Water $3.5m
- Trees $1.5m

Capex - FY15

Trees commence investment in planting out greenfield land bank
Increased harvest matrix and mechanical drying

Strong operating cash flow conversion from existing assets

Financial History

SHV Historical Summary	Units	2006	2007	2008	2009	2010	2011	2012	2013	2014
Total Sales	(A$M)	217.9	229.5	224.7	248.6	238.4	248.3	251.3	191.1	188.3
EBIT	(A$M)	38.4	40.5	27.1	26.8	26.0	22.6	19.6	37.7	41.8
EBIT Margin (EBIT/Sales -%)	(%)	17.6%	17.6%	12.1%	10.8%	10.9%	9.1%	7.8%	19.7%	22.2%
PBT	(A$M)	37.9	40.0	25.4	23.0	23.6	18.5	13.4	32.7	37.4
Underlying NPAT	(A$M)	26.5	28.1	18.1	16.7	17.3	17.7	9.5	22.9	29.0
Issued Shares	No. of Shares	39.7	38.7	39.0	39.5	39.8	56.2	56.8	57.5	58.0
Earnings Per Share	(AUD Cents per Share)	67.1	71.0	46.7	42.6	43.3	33.7	16.8	40.1	50.2
Dividend per Share	(AUD Cents per Share)	53.0	57.0	45.0	12.0	21.0	13.0	8.0	12.0	20.0
Payout Ratio	(%)	80.0%	80.0%	96.7%	28.2%	48.5%	38.6%	47.6%	29.9%	39.8%
Net Tangible Assets per Share	(A$/Share)	1.83	1.57	1.41	1.56	1.87	2.17	2.19	2.14	2.47
Net Interest Cover	(times)	82.3	75.8	15.6	7.1	10.7	6.7	3.2	7.5	9.3
Net Debt	(A$M)	1.3	1.6	46.8	52.4	45.0	73.1	66.8	79.3	94.8
Shareholder Equity	(A$M)	101.5	95.5	94.1	100.9	113.6	168.8	160.3	159.5	182.8
Net Debt to Equity Ratio	(%)	1.3%	1.7%	49.7%	51.9%	39.6%	43.3%	41.7%	49.7%	51.9%
Share Price	(A$/Share)	13.02	11.60	6.00	2.16	3.46	1.84	2.40	3.9	5.14
Market Capitalisation	(A$M)	517.0	449.4	234.1	85.4	137.6	103.5	120.0	224.3	298.12
P/E Ratio		19.5	16.0	12.9	5.1	8.0	5.8	12.6	9.8	10.2

Source: Company Data

Orchard Profile – Young Orchards PLUS Longevity

Select Harvests almond orchards have an average age of 10.9 years. On track to double acreage by 2018.

2015 Orchard Profile

Almond orchard	Planted Orchard	Planted Orchard	Bearing Orchard	Bearing Orchards
portfolio	Area (acres)	Area (hectares)	Area (acres)	Area (hectares)
Northern Region
Owned	1,491	604	1,423	576
Leased	3,017	1,221	3,017	1,221
Total	4,508	1,825	4,440	1,798
Central Region
Owned	4,165	1,686	3,554	1,439
Leased	1,481	600	1,481	600
Total	5,646	2,286	5,035	2,039
Southern Region
Owned	3,156	1,278	2,467	999
Leased	-	-	-	-
Total	3,156	1,278	2,467	999
Total All Regions
Owned	8,812	3,568	7,444	3,014
Leased	4,498	1,821	4,498	1,821
Total	13,311	5,389	11,943	4,835

Land bank (unplanted)	Acres	Hectares
Northern Region	-	-
Central Region	1,600	648
Southern Region	3,865	1,565
Total all Regions	5,465	2,213

Source: Company Data

2015 Orchard Profile

	AREA BY TREE AGE
		Years 0-7	Years 8-26			Years 26+	TOTAL PLANTED		AVAILABLE TO PLANT		TOTAL
	(acres)	(ha)	(acres)	(ha)	(acres)	(ha)	(acres)	(ha)	(acres)	(ha)	(acres)	(ha)
Northern Region

Company Owned	312	126	1,179	477	-	-	1,491	604	-	-	1,491	604
Leased	1,332	539	1,685	682	-	-	3,017	1,221	-	-	3,017	1,221
Total	1,644	666	2,864	1,160	-	-	4,508	1,825	-	-	4,508	1,825
CentralRegion
Company Owned	638	258	2,455	994	1,072	434	4,165	1,686	1,600	648	5,765	2,334
Leased	-	-	1,481	600	-	-	1,481	600	-	-	1,481	600
Total	638	258	3,936	1,594	1,072	434	5,646	2,286	1,600	648	7,246	2,934
SouthernRegion
Company OwnedLeased	1,018-	412-	2,138-	866-	--	--	3,156-	1,278-	3,865-	1,565-	7,021-	2,843-
Total	1,018	412	2,138	866	-	-	3,156	1,278	3,865	1,565	7,021	2,843
TOTAL
Company Owned	1,968	797	5,772	2,337	1,072	434	8,812	3,568	5,465	2,213	14,277	5,780
Leased	1,332	539	3,166	1,282	-	-	4,498	1,821	-	-	4,498	1,821
Total	3,300	1,336	8,938	3,619	1,072	434	13,311	5,389	5,465	2,213	18,776	7,601

Source: Company Data

Significant Orchard Growth. Double plantings by 2018

Growth - 5,465 acres of unplanted land suitable for almonds will be planted over the next 4 years

Global Supply – US Reservoirs/Temp/Snowpack

Temperature

Six Months In and Sizzling California Sets Record - Andrea Thompson, Climate Central, 16 July 2014
- ─ California just finished the hottest first half year on record, a period going back 120 years, according to the national climate overview for June released by the National Oceanic and Atmospheric Administration (NOAA).
- ─ http://www.climatecentral.org/news/california-warmest-year-record-17774

Snowpack

California drought: Sierra snowpack is barely there - Peter Fimrite, SFGate, San Francisco Chronicle , 2 May 2014
- ─ The snow levels in the Sierra were only 18 percent of average on Thursday, when the last of the season's once-a-month measurements was taken by the California Department of Water Resources. That's worse than last month, when the snowpack was 32 percent of normal for the date. Conditions get worse the farther north one goes in the Sierra and Cascade ranges. The snowpack is a paltry 7 percent of average in the northern part of the state, according to the measurements
- ─ http://www.sfgate.com/science/article/California-drought-Sierra-snowpackis-barely-5446649.php

Reservoir Conditions: Most storages have less than half of their historical average water levels

Temperature: Hottest 6 months on record drives evaporation/transpiration

Snowpack: Historically low snowpack which provide the surface water / ground water recharge is concerning

Global Supply - US Groundwater Levels

This trio of images depicts satellite observations of declining water storage in California as seen by NASA's Gravity Recovery and Climate Experiment satellites in June 2002 (left), June 2008 (center) and June 2014 (right). Colors progressing from green to orange to red represent greater accumulated water loss between April 2002 and June 2014. California's Sacramento and San Joaquin River basins, including the Central Valley, have suffered the greatest losses, in part due to increased groundwater pumping to support agricultural production. Between 2011 and 2014, the combined river basins have lost 4 trillion gallons (15 cubic kilometers, or 12 million acre-feet) of water each year, an amount far greater than California's 38 million residents use in cities and homes annually.

Source: NASA (http://www.jpl.nasa.gov/spaceimages/details.php?id=PIA18816)

Source 2: Dept of Water Resources, California (http://www.water.ca.gov/waterconditions/docs/Drought\_Response-Groundwater\_Basins\_April30\_Final\_BC.pdf)