SELECT HARVESTS LIMITED — Interim / Quarterly Report 2016

Feb 24, 2016

SELECT HARVESTS LIMITED ABN 87 000 721 380 AND CONTROLLED ENTITIES

HALF-YEAR INFORMATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2015 PROVIDED TO THE ASX UNDER LISTING RULE 4.2A

This half-year financial report is to be read in conjunction with the financial report for the year ended 30 June 2015.

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Rule 4.2A.3

Appendix 4D

Half Year Report for the six months to 31 December 2015

Name of entity Select Harvests Limited ABN 87 000 721 380

1. Reporting period

Report for the half year ended 31 December 2015 Previous corresponding period is the financial year ended 30 June 2015 and half year ended 31 December 2014

2. Results for announcement to the market

2. Results for announcement to the market	2. Results for announcement to the market	2. Results for announcement to the market
(Allamounts inthis report are expressed in$’000 unless otherwise stated)
Revenues from continuing ordinary activities_(item 2.1) Up 65.3% to 166,440 Profit from continuing ordinary activities after tax attributable to members (_item 2.2) Profit after tax excluding acquisition costs Acquisition costs relate to the one off duties, legals & registration fees paid in relation to the almond orchards purchased. Up Up 41.0% 15.4% to to 23,913 23,913
Dividends(item 2.4)	Amount per security	Franked amount per security
Interim dividend	21.0 ¢	Nil ¢
Previous corresponding period Interim dividend	15.0 ¢	11.0 ¢
Record date for determining entitlements to the interim and special dividend (item 2.5)	4 March 2016
Brief explanation of any of the figures reported above necessary to enable the figures to be understood (item 2.6): Pleasereferto the attached announcement.

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3. Net tangible assets per security (item 3)

Net tangible asset backing per ordinary security

(item 3)
Current period	Previous corresponding period
$3.39	$3.35

4. Details of entities over which control has been gained or lost during the period: (item 4)

Control gained over entities

Name of entities (item 4.1) - Date(s) of gain of control (item - 4.2)

Contribution to consolidated profit (loss) from ordinary $ - activities after tax by the controlled entities since the date(s) in the current period on which control was acquired (item 4.3)

Profit (loss) from ordinary activities after tax of the controlled entities for the whole of the previous corresponding period (item 4.3)

$ -

5. Dividends (item 5)

5. Dividends(item 5)
Interim dividend – year ended 30 June 2016 Interim dividend – year ended 30 June 2015	Date of payment	Total amount of dividend ($’000)
	15 April 2016	15,135
	16 April 2015	10,641

Amount per security

	Amount per security	Franked amount per security at 30 % tax	Amount per security of foreign sourced dividend
Total dividend:Currentyear(interim)	21.0 ¢	Nil ¢	Nil ¢
Previousyear(interim)	15.0 ¢	Nil ¢	Nil ¢

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Total dividend on all securities

Total dividend on all securities
Ordinary securities_(each class separately) Preference securities(each class separately) Other equity instruments(each class separately)_ Total	Current period $'000	Previous corresponding Period -$'000
	15,135 - -	10,641 - -
	**15,135 **	10,641

6. Details of dividend or distribution reinvestment plans in operation are described below (item 6) :

The interim dividend may be reinvested in ordinary shares under the company’s Dividend Reinvestment Plan.

The last date(s) for receipt of election notices for 7 March 2016 participation in the dividend or distribution reinvestment plan

7. Details of associates and joint venture entities (item 7)

Name of associate or joint venture entity %Securities held

N/A

Aggregate share of profits (losses) of associates and joint venture entities

Group’s share of associates’ and joint venture entities’: Profit (loss) from ordinary activities before tax Income tax on ordinary activities Net profit (loss) from ordinary activities after tax Adjustments Share of net profit (loss) of associates and joint venture entities	2016 $	2015 $
	- -	- -
	- -	- -
	-	-

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8. The financial information provided in the Appendix 4D is based on the half year condensed financial report (attached), which has been prepared in accordance with Australian accounting standards.

9. Independent review of the financial report (item 9)

The financial report has been independently reviewed. The financial report is not subject to a qualified independent review statement.

10. Matters relating to a qualified independent review statement A description of the dispute or qualification in respect of the independent review of the half-year financial report is provided below (item 17)

N/A

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SELECT HARVESTS LIMITED ABN 87 000 721 380 AND CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2015

SELECT HARVESTS LIMITED AND CONTROLLED ENTITIES ABN 87 000 721 380 FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2015

TABLE OF CONTENTS

	Page
Directors' report	1
Auditor’s independence declaration	3
Financial report for the half-year ended 31 December 2015
Consolidated Income Statement	4
Consolidated Statement of Comprehensive Income	5
Consolidated Balance Sheet	6
Consolidated Statement of Changes in Equity	7
Consolidated Statement of Cash Flows	8
Notes to the financial statements	9
Directors' declaration	14
Independent auditor’s review report	15

This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the Annual Financial Report for the year ended 30 June 2015 and any public announcements made by Select Harvests Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001

SELECT HARVESTS LIMITED AND CONTROLLED ENTITIES ABN 87 000 721 380

DIRECTORS’ REPORT

The directors present their report together with the financial report of Select Harvests Limited and controlled entities (referred to hereafter as the “consolidated entity” and “group”) for the half-year ended 31 December 2015 and independent review report thereon.

Directors

The names of the directors in office at any time during or since the end of the half-year are:

M Iwaniw (Chairman) P Thompson (Managing Director) R M Herron M Carroll F S Grimwade P Riordan N Anderson (Appointed 21 January 2016)

The directors have been in office since the start of the financial period to the date of this report.

Review of Operations

The consolidated profit of the group for the half year amounted to $23.91 million (half-year restated 31December 2014 $16.96 million).

On 20 August 2015, the Company announced the sale and leaseback of three existing properties in Victoria and South Australia, to First State Super. The transaction comprised selling 995 hectares (2,458 acres) of planted almond orchards, 292 hectares (722 acres) of planted citrus orchards, and 1,012 hectares (2,500 acres) of land suitable for the planting out of new greenfield almond orchards. Net proceeds of the sale were $63.28 million. A pre - tax gain on sale of $4.09 million is included within the 1H 16 result. The orchards are leased back to Select Harvests under a 20 year lease term with options to extend the lease.

On 10 December 2015, the Company announced the sale of its Western Australian assets for $9.5 million. Proceeds will be settled in April 2016.

Interim Dividend

On 25 February 2016, the directors declared an unfranked interim dividend of 21 cents per ordinary share to be paid on 15 April 2016 to shareholders registered at 5.00pm on 4 March 2016.

Subsequent Events

On 12 February 2016, the Company renegotiated its financing facilities with its banks. The new facilities are held with National Australia Bank (NAB), Rabobank (Rabo) and Commonwealth Bank (CBA) with a combined core and working capital facility of $115 million.

No other significant events have occurred subsequent to reporting date.

Auditor’s Independence Declaration

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 3.

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SELECT HARVESTS LIMITED AND CONTROLLED ENTITIES ABN 87 000 721 380

Rounding of amounts to nearest thousand dollars

The amounts contained in the report and in the financial report have been rounded to the nearest $1,000 (where rounding is applicable) under the option available to the company under ASIC Class Order 98/0100. The company is an entity to which the Class Order applies.

Signed in accordance with a resolution of the directors:

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Michael Iwaniw Chairman Dated this 25[th] day of February 2016

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Auditor’s Independence Declaration

As lead auditor for the review of Select Harvests Limited for the half-year ended 31 December 2015, I declare that to the best of my knowledge and belief, there have been:

• a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• b) no contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Select Harvests Limited and the entities it controlled during the period.

Andrew Cronin Partner PricewaterhouseCoopers

Melbourne 25 February 2016

PricewaterhouseCoopers, ABN 52 780 433 757 Freshwater Place, 2 Southbank Boulevard, SOUTHBANK VIC 3006, GPO Box 1331, MELBOURNE VIC 3001 T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

SELECT HARVESTS LIMITED AND CONTROLLED ENTITIES ABN 87 000 721 380

CONSOLIDATED INCOME STATEMENT FOR THE HALF-YEAR ENDED 31 DECEMBER 2015

Note Revenue Sales of goods and services Other revenue Total revenue Other income Inventory fair value adjustment Gain on sale of assets Total other income Expenses Cost of sales Distribution expenses Marketing expenses Occupancy expenses Administrative expenses Finance costs Other expenses Acquisition costs PROFIT BEFORE INCOME TAX Income tax expense 5 PROFIT ATTRIBUTABLE TO MEMBERS OF SELECT HARVESTS LIMITED Earnings per share for profit attributable to the ordinary equity holders of the company: Basic earnings (cents per share) Diluted earnings (cents per share)	Half-year 2015 $ ‘000 Restated* 2014 $ ‘000 166,384 100,582 56 93
	166,440 100,675
	(27,239) 20,303 4,089 -
	(23,150) 20,303
	(102,537) (82,364) (2,149) (2,537) (343) (530) (646) (647) (3,533) (2,721) (2,648) (2,627) (1,234) (1,560) - (3,766)
	30,200 24,226 (6,287) (7,268)
	23,913 16,958
	33.4 27.4 32.9 26.6

The above Consolidated Income Statement should be read in conjunction with the accompanying Notes.

• Refer to note 1 for details regarding the restatements.

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SELECT HARVESTS LIMITED AND CONTROLLED ENTITIES ABN 87 000 721 380

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2015

Profit for the half-year Other Comprehensive Income Items that may be reclassified to profit or loss Changes in fair value of cash flow hedges, net of tax Other Comprehensive Income for the half-year TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO MEMBERS OF SELECT HARVESTS LIMITED	Half-year 2015 $ ‘000 Restated* 2014 $ ‘000 23,913 16,958
	1,147 (1,556)
	1,147 (1,556)
	25,060 15,402

The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying Notes.

• Refer to note 1 for details regarding the restatements.

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SELECT HARVESTS LIMITED AND CONTROLLED ENTITIES ABN 87 000 721 380

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2015

Note CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories Derivative financial instruments Other assets Assets held for sale TOTAL CURRENT ASSETS NON CURRENT ASSETS Other assets Property, plant and equipment (includes bearer plants) Intangible assets TOTAL NON CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Interest bearing liabilities Lease liabilities Derivative financial instruments Current tax liabilities Provisions TOTAL CURRENT LIABILITIES NON CURRENT LIABILITIES Interest bearing liabilities Lease liabilities Deferred tax liabilities Provisions Others TOTAL NON CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Contributed equity 8 Reserves Retained profits TOTAL EQUITY	31 December 2015 $ ‘000 30 June 2015 $ ‘000 12,754 270 39,484 58,308 112,844 142,354 1,459 76 4,445 1,774
	170,986 202,782 5,000 5,000
	175,986 207,782
	234 349 225,517 231,442 50,494 48,339
	276,245 280,130
	452,231 487,912
	28,338 31,273 4,339 21,051 2,329 1,367 32 288 18,951 5,473 2,342 2,441
	56,331 61,893
	24,000 88,927 34,716 4,534 37,366 44,064 1,243 1,107 3,459 -
	100,784 138,632
	157,115 200,525
	295,116 287,387
	177,370 170,198 11,192 12,818 106,554 104,371
	295,116 287,387

The above Consolidated Balance Sheet should be read in conjunction with the accompanying notes

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SELECT HARVESTS LIMITED AND CONTROLLED ENTITIES ABN 87 000 721 380

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2015

Balance at 1 July Profit for the half-year Other Comprehensive Income Total comprehensive income for the half-year Transactions with equity holders in their capacity as equity holders: - Dividends paid (note 7) - Contributions of equity (note 8) - Employee performance rights reserve Total equity at the end of half-year	Half-year 2015 $ ‘000 Restated 2014 $ ‘000 287,387 175,406*
	23,913 16,958 1,147 (1,556)
	25,060 15,402
	(25,003) (5,219) 7,174 66,900 498 372
	(17,331) 62,053
	295,116 252,861

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying Notes.

• Refer to note 1 for details regarding the restatements.

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SELECT HARVESTS LIMITED AND CONTROLLED ENTITIES ABN 87 000 721 380

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2015

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers (inclusive of goods & services tax) Payments to suppliers and employees (inclusive of goods & services tax) Interest received Interest paid Net Cash Inflow From Operating Activities CASH FLOW FROM INVESTING ACTIVITIES Proceeds from Government grants Proceeds from sale of property, plant and equipment Payment for water rights Payment for property, plant and equipment Proceeds from sale and leaseback Payment for orchard acquisitions 6 Payment for tree development costs Net Cash Inflow/ (Outflow) From Investing Activities CASH FLOW FROM FINANCING ACTIVITIES Proceeds from sale and leaseback Proceeds from issue of shares Proceeds from borrowings Repayments of borrowings Repayment of finance lease Dividends payment on ordinary shares, net of Dividend Reinvestment Plan Net Cash (Outflow)/ Inflow From Financing Activities Net increase/ (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the half-year Cash And Cash Equivalents At The End Of The Half- Year Reconciliation of cash and cash equivalents Cash and cash equivalents as per consolidated balance sheet Bank overdraft included in interest bearing liabilities Cash and cash equivalents as per consolidated statement of cash flows	Half-year 2015 $ ‘000 2014 $ ‘000 190,195 115,879 (107,203) (95,236)
	82,992 20,643 57 76 (2,224) (2,331)
	80,825 18,388
	4,118 - 366 - (4,953) (10,961) (22,048) (11,246) 34,922 - (5,285) (58,366) (3,254) (2,687)
	3,866 (83,260)
	28,362 - - 63,950 68,500 46,000 (149,109) (45,850) (1,100) - (17,829) (2,964)
	(71,176) 61,136
	13,515 (3,736) (5,100) 4,011
	8,415 275
	12,754 3,302 (4,339) (3,027)
	8,415 275

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes

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SELECT HARVESTS LIMITED AND CONTROLLED ENTITIES ABN 87 000 721 380

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2015

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation of half-year report

This general purpose interim financial report for the half-year ended 31 December 2015 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001 .

This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual financial report for the year ended 30 June 2015 and any public announcements made by Select Harvests Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 .

The accounting policies adopted are consistent with those of the previous annual financial report.

As a result of the changes in the entity’s accounting policies in the previous financial year relating to the early adoption of amendments made to Accounting Standards AASB116 Property, Plant and Equipment and AASB141 Agriculture, prior year financial statements have been restated. The following table show the adjustments recognized for each individual line item. Line items that were not affected by the change have not been included.

	Prior Year Restatement	Prior Year Restatement	Prior Year Restatement
Statement of profit and loss (extract)	31 Dec 2014 $’000	Increase/ (Decrease) $’000	31 Dec 2014 (Restated) $’000
Cost of sales	(79,711)	(2,653)	(82,364)
Profit beforeincome tax	26,879	(2,653)	24,226
Income taxbenefit/(expense)	(8,064)	796	(7,268)
Profit attributable to members of Select Harvests Limited	18,815	(1,857)	16,958
Basic earnings pershare (cents pershare)	30.4	(3.0)	27.4
Diluted earnings pershare (cents pershare)	29.6	(3.0)	26.6

New standards and interpretations not yet adopted

Certain new accounting standards and interpretations have been published that are not mandatory for the 31 December 2015 reporting periods and have not been early adopted by the Company. The Company's assessment of the impact of these new standards and interpretations is set out below.

(i) AASB 9 Financial Instruments (effective from 1 January 2018)

AASB 9 Financial Instruments addresses the classification, measurement and derecognition of financial assets and financial liabilities, introduces new rules for hedge accounting and a new impairment model for financial assets. The standard is not applicable until 1 January 2018 but is available for early adoption. The Company is yet to assess its full impact and has not yet decided when to adopt AASB 9.

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SELECT HARVESTS LIMITED AND CONTROLLED ENTITIES ABN 87 000 721 380

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2015

(ii) AASB15 Revenue from Contracts with Customers (effective from 1 January 2018)

The new standard is based on the principle that revenue is recognised when control of a good or service transfers to a customer – so the notion of control replaces the existing notion of risks and rewards. The standard is not applicable until 1 January 2018 but is available for early adoption. The Company is yet to assess its full impact and has not yet decided when to adopt AASB 15.

(iii) IFRS 16 Leases

IFRS 16 (effective for annual periods starting on or after 1 January 2019) eliminates the classification of leases as either operating leases or finance leases and requires entities to recognise assets and liabilities on the balance sheet for the majority of leases. The company is currently evaluating the impact of the new standard."

2. COMPARATIVE INFORMATION

The Statement of Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows provide comparative information for the half-year ended 31 December 2014. The Balance Sheet provides comparative information as at 30 June 2015.

Where necessary, the comparatives have been reclassified and repositioned to be consistent with the current year disclosures.

3. CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS

The consolidated entity makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. In addition to those critical accounting estimates and assumptions disclosed in the Group's previous annual financial report, the estimates and assumptions that have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Inventory - Current Year Almond Crop

The current year almond crop is classified as a biological asset and valued in accordance with AASB 141 "Agriculture". In applying this standard, the consolidated entity has made various assumptions at the interim balance date as the current year almond crop is only partially through the growing season and the actual crop yield will not be known until it is completely processed and sold. The assumptions are the estimated average almond selling price at the point of harvest of $9.00 per kg and almond yield based on a crop estimate for Company Orchards of 13,700 metric tonnes.

Fair Value of Acquired Assets

In calculating the fair value of acquired assets, in particular almond orchards, the company has made various assumptions. These include future almond price, long term yield and discount rates. The valuation of almond trees is sensitive to these assumptions and any change may have a material impact on these valuations.

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SELECT HARVESTS LIMITED AND CONTROLLED ENTITIES ABN 87 000 721 380

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2015

4. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

On 12 February 2016, the Company renegotiated its financing facilities with its banks. The new facilities are held with National Australia Bank (NAB), Rabobank (Rabo) and Commonwealth Bank (CBA) with a combined core and working capital facility of $115 million.

On 25 February 2016, the Directors declared an unfranked interim dividend of 21 cents per ordinary share to be paid on 15 April 2016 to shareholders registered at 5.00pm on 4 March 2016.

No other significant events have occurred subsequent to reporting date.

5. NUMERICAL RECONCILIATION OF INCOME TAX EXPENSE TO PRIMA FACIE TAX PAYABLE

Profit from continuing operations before income tax expense Tax at the Australian tax rate of 30% (2014 – 30%) Over provision of previous year Income tax expense	Half-year 2015 $ ‘000 Restated 2014 $ ‘000 30,200 24,226
	(9,060) (7,268) 2,773 -
	(6,287) (7,268)

6. BUSINESS COMBINATIONS

(a) Summary of Acquisitions

On 18 September 2015, Select Harvests acquired 370 acres of land, which includes 200 acres of almond orchards, in New South Wales for $5.3 million cash consideration.

The provisional fair values of assets and liabilities recognised as a result of the acquisitions are as follows:

Plantation land and irrigation systems Buildings Biological assets – trees Permanent water rights Net Identifiable Assets Net cash outflow on acquisition Total purchase consideration	$’000 1,792 200 2,340 953
	5,285 5,285
	5,285

(b) Revenue and profit contribution

The acquired businesses contributed earnings before interest and tax of $186,000 to the group for the period from acquisition date to 31 December 2015.

If the acquisition had occurred on 1 July 2015, consolidated profit after tax for the half year ended 31 December 2015 would have remained unchanged from the reported results.

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SELECT HARVESTS LIMITED AND CONTROLLED ENTITIES ABN 87 000 721 380

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2015

7. DIVIDENDS

7. DIVIDENDS
	Half-year
	2015	2014
	$ ‘000	$ ‘000
(a) Dividends paid during the half-year
Total dividends paid during the half-year	25,003	5,219
(b) Dividends not recognised at the end of the half-year:
In addition to the above dividends, since the end of the half-year
the directors have declared the payment of an unfranked interim
dividend of 21 cents per fully paid ordinary share (2014 – 15.0
cents fully franked per fully paid ordinary share). The aggregate
amount of the declared dividends expected to be paid on 15 April
2016 out of retained profits at 31 December 2015, but not
recognised as a liability at the end of the half-year, is:	15,135	10,641

8. EQUITY SECURITIES ISSUED

Half-year 2015 Shares No. 2014 Shares No. Issues of ordinary shares during the half- year Dividend reinvestment scheme issues 633,671 399,613 Long term incentive plan – tranche vested - 152,943 Ordinary shares issued under equity raising (net of transaction costs and deferred tax) - 12,388,891 Contributions to equity	Half-year 2015 $’000 2014 $’000 7,174 2,245 - - - 64,655
	7,174 66,900

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SELECT HARVESTS LIMITED AND CONTROLLED ENTITIES ABN 87 000 721 380

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2015

9. SEGMENT INFORMATION

The segment information provided to the Chief Executive Officer is referenced in the following table:

	($'000) Food Division	($'000) Food Division	($'000) Almond Division	($'000) Almond Division	($'000) Almond Division	($'000) Eliminations and Corporate	($'000) Eliminations and Corporate	($'000) Eliminations and Corporate	($'000) Consolidated Entity	($'000) Consolidated Entity
	31 Dec 2015	31 Dec 2014	31 Dec 2015#		Restated 31 Dec 2014*	31 Dec 2015		31 Dec 2014	31 Dec 2015	Restated 31 Dec 2014*
R evenue Total revenue from external customers Intersegment revenue T o tal segment revenue Other revenue T o tal revenue	91,694 -	70,623 -	74,690 20,079		29,959 11,560	- (20,079)		- (11,560)	166,384 -	100,582 -
	91,694	70,623	94,769		41,519	(20,079)		(11,560)	166,384	100,582
	-	-	14		65	42		28	56	93
	91,694	70,623	94,783		41,584	(20,037)		(11,532)	166,440	100,675
EBIT Interest received Finance costs expensed P ro fit befo re inco me tax	6,724 - -	4,091 - -	29,058 14 (702)		25,910 - (50)	(2,990) 42 (1,946)		(3,175) 27 (2,577)	32,792 56 (2,648)	26,826 27 (2,627)
	6,724	4,091	28,370		25,860	(4,894)		(5,725)	30,200	24,226
					353,351 (68,089) 82,594 4,658	11,999 (36,807) 974 24			452,231 (157,115) 35,540 5,988	424,124 (163,899) 83,260 4,901
Segment assets(excluding intercompany debts)	78,286 (10,377)	70,773	361,946 (109,931)					-
Segment liabilities(excluding intercompany debts)		(8,124)						(87,686) 127 15
A cquisitio n o f no n-current segment assets	72 242	539	34,494 5,723
D epreciatio n and amo rtisatio n o f segment assets		228

• Almond division includes a gain on sale of assets of $4.1 million.

• Refer to note 1 for details regarding the restatement; Almond Division includes acquisition costs of $3.8 million.

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SELECT HARVESTS LIMITED AND CONTROLLED ENTITIES ABN 87 000 721 380

DIRECTORS’ DECLARATION

In the directors’ opinion:

• a) the financial statements and notes set out on pages 4 to 13 are in accordance with the Corporations Act 2001 including:

• i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

• ii) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and of its performance for the half-year ended on that date; and

• b) there are reasonable grounds to believe that Select Harvests Limited will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the directors.

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Michael Iwaniw Chairman Dated this 25[th] day of February 2016

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Independent auditor's review report to the members of Select Harvests Limited

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Select Harvests Limited (the company), which comprises the consolidated balance sheet as at 31 December 2015, the consolidated income statement and consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, selected explanatory notes and the directors' declaration for Select Harvests Group (the consolidated entity). The consolidated entity comprises the company and the entities it controlled during that halfyear.

Directors' responsibility for the half-year financial report

The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement whether due to fraud or error.

Auditor's responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Australian Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of Select Harvests Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 .

PricewaterhouseCoopers, ABN 52 780 433 757

Freshwater Place, 2 Southbank Boulevard, SOUTHBANK VIC 3006, GPO Box 1331, MELBOURNE VIC 3001 T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

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Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Select Harvests Limited is not in accordance with the Corporations Act 2001 including:

• a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and of its performance for the half-year ended on that date;

• b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

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PricewaterhouseCoopers

Andrew Cronin Partner

Melbourne 25 February 2016