SELECT HARVESTS LIMITED — Capital/Financing Update 2023

May 11, 2023

Select Harvests Limited (ABN 87 000 721 380) Level 3, Building 7 Botanicca Corporate Park 570-588 Swan Street Richmond VIC 3121 Australia Telephone +61 3 9474 3544 www.selectharvests.com.au

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12 May 2023

Updated Crop Forecast

Select Harvests Limited (‘SHV’ or ‘Company’) announced today that the 2023 almond crop volume is expected to be lower than previously forecast. Lower volumes across the weighbridge in addition to lower crack-out rates, have reduced the 2023 crop volume forecast to 17,500MT (2021: 28,250MT, 2022: 29,000MT).

This revised position is based on harvest being 97% complete, weighbridge data received from over 90% of the total 2023 crop delivered to the processing facility and 30% of the Nonpareil and 5% of the pollinator varieties having been hulled and cracked. While there remains a significant amount of crop yet to be processed, the underlying trends of lower orchard yield and lower crack-out rates are sufficient to indicate the current forecast.

Climatic conditions have materially impacted the 2023 crop with cold and wet weather resulting in unusual growing patterns and lower yields. Crop performance is understood to be consistent with the broader Australian almond industry.

Managing Director, David Surveyor, said “Assuming a return to more normal weather conditions we expect yields for the 2024 crop to bounce back to 2021/2022 levels (or better given the maturity profile of our trees). Assuming the status quo on almond and water prices, we expect a return to profitability.”

Mr. Surveyor continued, “We expect the financial impact of the volume downgrade is likely to be partly offset by recent increases in almond prices, from increasing world demand and an expected below average 2023 US crop, however, our focus now is firmly on our 2024 crop and returning to normal yields.”

Early indications are that the 2024 crop is on track to return to normal yields. Following 3 years of the wet La Nina weather patterns, the Bureau of Meteorology has forecast that Australia is likely to move into an El Nino pattern which is typically favourable for growing almonds. The 2024 growing program has commenced and the Company is executing a full horticultural plan. Water allocations remain favourable, dam storage levels are high and temporary market water pricing is expected to remain at below average levels. Additionally, fertiliser pricing has reduced as expected.

As Agent for: Select Harvests Food Products Pty Ltd (ABN 17 058 752 846) As Agent for: Kyndalyn Park Pty Ltd (ABN 76 006 360 194)

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Select Harvests Limited (ABN 87 000 721 380) Level 3, Building 7 Botanicca Corporate Park 570-588 Swan Street Richmond VIC 3121 Australia Telephone +61 3 9474 3544 www.selectharvests.com.au

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Balance Sheet

Banking facilities have increased with $30M of additional funding and the Company is forecast to remain within its banking limits and covenants. Forecast available headroom in facility limits range between $85M and $35M during the Company’s annual cashflow cycle with an average excess capacity of $60M. Debt to equity at 1H FY2023 is expected to be approximately 44% (based on market value of assets, gearing would be approximately 31%). This shows the financial strength of the business to manage a poor crop year. The Company also has a portfolio of permanent water rights with a current market value of over $120m, which adds to the Company’s financing flexibility and liquidity.

The Company’s Net Asset Position in total is $189M higher than reported book values (based on valuations completed in September 2022) with the market value of properties being $119M higher and water assets carrying value being $70M higher.

Mr. Surveyor said, “From my review of the business there are a number of profit and cash improvement initiatives underway that are already delivering favourable results, and this will positively contributing to our cash position. “

Market Conditions and Outlook

Global almond pricing has recently increased in line with world demand and an expectation that the 2023 US crop will be materially lower than average. There have been a number of market reports published on the Californian crop and this is likely to be again confirmed when the USDA 2023 Californian Almond Subjective Forecast is released on the 12[th] of May 2023. March 2023 shipments from the Australian Almond Board position report (60% higher than March 2022) were strong and continued the trend of improved market activity and increased stock movements.

Buyers in key export markets remain active and following recent increases, pricing remains firm. The market is waiting on the USDA Subjective Estimate to confirm a lower 2023 US crop which may lead to a further increase in price. Based on recent contracted sales, the Company has increased its forecast net average pricing for the 2023 crop to be in the range of A$7.40 – A$7.80/kg with further potential increases.

In summary, the Company expects the 2024 crop to deliver improved yields in a favourable pricing and cost environment.

As Agent for: Select Harvests Food Products Pty Ltd (ABN 17 058 752 846) As Agent for: Kyndalyn Park Pty Ltd (ABN 76 006 360 194)

ME_207796668_1

Select Harvests Limited (ABN 87 000 721 380) Level 3, Building 7 Botanicca Corporate Park 570-588 Swan Street Richmond VIC 3121 Australia Telephone +61 3 9474 3544 www.selectharvests.com.au

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1H FY2023 Results

The Company’s half year financial results will be released on the 29[th] of May 2023. As a result of the current crop forecast the net realizable value of the crop will be lower than the total costs of farming and processing the crop. Therefore, the Company will be recognising an estimated full year loss resulting from the reduced forecast 2023 crop within the half year result, and this will skew the half year result. No loss (or profit) from the 2023 crop will be recognised in the second half (unless there are adjustments related to changes in 2023 crop loss assumptions).

This announcement has been approved by the Board of Select Harvests Limited.

FOR FURTHER INFORMATION, PLEASE CONTACT:
David Surveyor, Managing Director & CEO	03 9474 3544
Brad Crump, Chief Financial Officer & Company Secretary	03 9474 3544
Andrew Angus, Investor Relations	0402 823 757

About Select Harvests:

Select Harvests Ltd (ASX:SHV) is an ASX-listed, fully integrated almond business consisting of orchards (company owned, leased, joint venture and managed), primary processing (hulling & shelling), secondary value-added processing (blanching, roasting, slicing, dicing, meal and paste) under the Renshaw & Allinga Farms industrial brands. Australia is a significant global almond producer and Select Harvests are one of Australia’s largest almond companies, supplying almonds domestically and internationally, to supermarkets, health food stores, other food manufacturers, retailers, and the almond trade.

The company is headquartered at Richmond, in Melbourne, Australia, while its orchards are in North West Victoria, Southern New South Wales and South Australia. Its almond processing and value-adding facility (Carina West) is located at Wemen in North West Victoria.

For more information, visit www.selectharvests.com.au

As Agent for: Select Harvests Food Products Pty Ltd (ABN 17 058 752 846) As Agent for: Kyndalyn Park Pty Ltd (ABN 76 006 360 194)

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