SELECT HARVESTS LIMITED — Investor Presentation 2014

Jan 19, 2014

Select Harvests Limited (ASX:SHV)

Asia Investor Briefing

January 2014

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

Rationale - Why Select Harvests?

• 1. Excellent Industry Fundamentals

  • Supply/Demand
  • Counter-cyclical to USA

• 2. Integrated Business Model

  • Orchards
  • Processing & Packaged goods
  • Large nut, seed and dry fruit trader

• 3. Culture for Improvement

  • Refreshed Leadership
  • One Select

• 4. Competitive Advantage: Quality Assets

  • 88% of SHV orchards will mature in 1 year
  • State of Art Carina West processing facility
  • Market leading brands

• 5. Market Environment

  • Price and currency favourable
  • SHV FY13 volumes up 106% (inc. acquisitions.)

• 6. Growth

  • Business positioning itself to grow

An integrated agribusiness that controls almonds - positioned to deliver

Why Almonds? - Sustainable Positive Fundamentals

Tight Supply

• Long lead time to mature production (7 years)
• 18-21 years of subsequent mature production

Strong Demand

• Developed Economies healthy eating
• Developing Economies affluence shift from carbohydrate to protein
• World's most versatile nut
• Agronomics
  • Efficient economic converters of water compared to other potential agricultural land uses
  • Australia counter cyclical to the ROW

Growth: Global almond demand 8% Compound Annual Growth Rate ("CAGR")

• What is Driving Demand?
  • Developed Economies Healthy eating & the movement to proteins
  • Developing Economies Increased wealth & the movement to proteins based Westernize diet
  • Australian & Californian Almond Boards Opening new markets and supporting health platform
  • Innovation More ways of eating almonds
• Demand Facts
  • Not just developing markets 52% of all almonds are consumed in US & Europe
  • US Domestic shipments 11 out of the last 12 Months have been records
  • US exports to Western Europe up 25% YTD on last year
  • US exports to Middle East/Africa up 37% YTD on last year
  • Asian middle class population growth 525 million in 2009 => 1.7 billion in 2020 => 3 billion in 2030
  • Growth China has grown from low levels 5 years ago to 50% of the USA (largest market)

Demand is being driven by multiple motivations across a range of global markets

• What is Driving Supply?
  • Concentrated Supply 83% of the global almond supply is from California USA
  • 2nd & 3rd Largest Producers Australia and Spain each represent a month's supply
  • Substitute nuts Similar agronomic challenges & insufficient supply available to replace almonds
  • Drought US currently in the grip of a serious drought, which just exacerbates the situation
• Supply Facts
  • US average non-bearing acres down 2005-08 (125,000 acres) vs. 2009-12 (83,000 acres)
  • Yields US yields per acre plateauing @ 1.2 tonne per acre
  • Current US crop is equal to 2nd largest crop ever
  • Carry in crop 5% down on last year
  • Alternatives US almond farmers have alternate annual crops

2 nd largest crop in history is struggling to keep up with demand

Why Almonds? - Supply & Demand – High Growth

Global market worth an estimated US$4.5 billion

Supply and demand have grown at 8% CAGR over past decade

Current demand growth trending above average growth rate; average supply growth cannot be maintained due to slow-down in recent planting activity

Annual consumption has exceeded production over past two years

Post GFC carry-over stock has softened upward price pressure so far

Source: Almond Insights 2012-13, Almond Board of Australia

Global almond market fundamentals are compelling

Why Almonds? - Concentrated Supply, Broad Demand

The USA dominates the global almond production industry with 83% of the market, followed by Australia with 7%

Australia (counter cyclical to USA) became the 2nd largest global Almond producer in 2013

Why Almonds? - High & Diverse Demand Growth

Australian production (Global No. 2) is dwarfed by global demand growth of last 5 years

Why Almonds? - Almond Price

Note: this chart is for indicative

Source: Company Data

Price has remained strong despite substantial production increases and A$ appreciation

Why Almonds? - Historical Farm Gate Pricing (US)

Source: Almond Board of California, August 2013 Almond Industry Position Report. Note: Volumes in millions of pounds, Prices in US$/pound

Almond pricing has steadily increased in recent years, despite the production of record crops of increasing magnitude

Why Almonds? - Annual Almond Cycle

Almond trees take 7 years to mature, then produce at that level for approx. 18 more years before tapering

Select Harvests secure supply chain & yield opportunities - average tree age is 10.1 years

Why Almonds? - Global Super Food

Source: Protein Data - Australian Institute of Sport (AIS) . Pricing based on company survey (on-line Australian retail pricing, April 2013).

Almonds are one of the most affordable protein sources across all food types

Why Almonds? - Health & Economic Benefits

Source: Nutrient Content - Global Statistical Review 2006-2011, International Nut & Dried Fruit Council Foundation (INC). Pricing based on company survey (on-line Australian retail pricing, April 2013).

Almonds are the highest protein, highest fibre & affordable tree nut

Why Almonds? - Both Dominate & Versatile

Source: Global Statistical Review 2007-2012, International Nut & Dried Fruit Council Foundation (INC), 2013

Almonds are the most versatile and highest volume nut, substitution is difficult

Why Almonds? - US Almond Production Plateauing

		SELECT HARVESTS

Californian Almond Acreage, Yield & Production
Year	Bearing Area	Non- Bearing Area		Yield	Production
	(acres)	(acres)	(lbs/acre)	(tonnes/acre)	(lbs)	(tonnes)
1995	418,000	65,700	885	0.4	370,000,000	168,182
1996	428,000	72,400	1,190	0.5	510,000,000	231,818
1997	442,000	63,000	1,720	0.8	759,000,000	345,000
1998	460,000	120,000	1,130	0.5	520,000,000	236,364
1999	485,000	115,000	1,720	0.8	833,000,000	378,636
2000	510,000	100,000	1,380	0.6	703,000,000	319,545
2001	530,000	75,000	1,570	0.7	830,000,000	377,273
2002	545,000	65,000	2,000	0.9	1,090,000,000	495,455
2003	550,000	60,000	1,890	0.9	1,040,000,000	472,727
2004	570,000	70,000	1,760	0.8	1,005,000,000	456,818
2005	590,000	110,000	1,550	0.7	915,000,000	415,909
2006	610,000	145,000	1,840	0.8	1,120,000,000	509,091
2007	640,000	125,000	2,170	1.0	1,390,000,000	631,818
2008	680,000	115,000	2,400	1.1	1,630,000,000	740,909
2009	720,000	90,000	1,960	0.9	1,410,000,000	640,909
2010	740,000	85,000	2,220	1.0	1,640,000,000	745,455
2011	760,000	75,000	2,670	1.2	2,030,000,000	922,727
2012	790,000	80,000	2,390	1.1	1,890,000,000	859,091
2013	810,000	*	2,470	1.1	2,000,000,000	909,091

Source: United States Department of Agriculture, National Agricultural Statistics Service, 2013 California Almond Forecast, 2 May 2013 * 2013 Non-Bearing Acres data to be released April 2014

US crop yields similar to Australia & less bearing acres coming into maturity

Why Almonds? - Outlook - Global Crop (Dec Update)

• US Crop – Almond Board California – Almond Industry Position Report DEC 2013
  • Smaller crop US 2013 Crop est. 2.0 billion lbs similar to 2012
    • US 2013 Crop is = 2nd largest crop in history
  • Faster harvest harvest conditions near perfect
  • Faster shipping program up 5.8% YTD
    • US Domestic market up 11%
    • Exports up 4%
    • 40% of total crop shipped
  • Commitments (sold, not delivered) – up 14% YTD
  • Quality of crop (kernel size) smallest average kernel size ever (source: Almond Insights 15/10/13)
  • Carry- in down 5% on 2012/13
• Spain
  • 2013 crop affected by frost and rain during bloom one of the worst crops in ten years
• Australia
  • 2013 crop harvested Feb-May 2013 Record crop
  • 2014 crop no significant negative weather events YTD Crop similar to 2012/13

Why Almonds? - Outlook - Supply - US Drought

Jerry Brown declares California drought emergency, urges 20 percent cut in water use

By David Siders, Phillip Reese and Matt Weiser The Sacramento Bee

Published: Friday, Jan. 17, 2014 - 10:54 pm

Copyright 2014 The Sacramento Bee. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

SAN FRANCISCO -- Gov. Jerry Brown announced a state of emergency Friday that has been all but official for weeks: California is in a drought.

Brown urged Californians to reduce water use by 20 percent, saying "we're facing perhaps the worst drought that California has ever seen since records began being kept about 100 years ago." The emergency declaration comes as the state suffers through dry conditions for a third straight year. It follows weeks of consideration by the Brown administration amid pressure to act from lawmakers and water officials.

The Democratic governor had suggested for days that he was close to declaring the emergency, a measure aimed at focusing the attention of the public as well as federal officials who could accelerate some relief efforts.

Brown directed state agencies to hire more seasonal firefighters, use less water and prepare a water conservation public awareness campaign.

His appeal to residents to reduce water consumption is voluntary, but he suggested at a news conference in San Francisco that the state could impose mandatory restrictions if the drought persists. "As we go down the road – you know, January, February, March – we will keep our eye on the ball and intensify, even to the point of mandatory conservation," Brown said. "But we're not going to do that quite yet."

California is entering one of the driest winters on record after two dry years already parched the state. Many reservoirs are depleted, and streams and rivers are running low. American River flows are at their lowest level in two decades, while Folsom Lake has receded so dramatically that remnants of a Gold Rush-era mining town, long submerged, have been exposed.

Sacramento has had no rain since Dec. 7 and will likely soon break the record of 44 consecutive days without rain during the "rainy" season of November through March.

The U.S. Climate Prediction Center forecasts below-average precipitation in California for the rest of January and all of February, according to figures released Thursday, while the National Weather Service predicts no precipitation in the Sierra Nevada, which supplies much of the state's water, during the next seven days.

The dry weather is due to high pressure off the coast that is preventing storm systems from developing, said Brad Pugh, a meteorologist with the U.S. Climate Prediction Center.

"We're expecting drought conditions across California to intensify over the next few months," Pugh told The Bee.

About three-quarters of the fresh water used in California goes toward irrigating farms, according to the U.S. Geological Survey, and the counties that use the most water – Fresno, Kern, Tulare and Imperial – all are focal points for agriculture in the state. Together, those counties use five times as much water as Los Angeles County.

Karen Ross, secretary of the California Department of Food and Agriculture, said 200,000 or more acres of farmland could be fallowed this year due to drought. "That's a lot of miles of open land," she said.

Brown, governor before from 1975 to 1983, called for a 25 percent reduction in personal water use when drought gripped the state in 1977, but conservation efforts have picked up in the years since. Agricultural water use declined by about 23 percent from 1980 to 2005, even as production increased, according to the Public Policy Institute of California. Urban residential water use per capita is

also declining, though most of the drop has been offset by population growth.

Brown said Friday that weathering the drought will take "a coming together of all the people of California to deal with this serious and prolonged event of nature."

Yet for generations the limitations of California's water supply have caused rifts, and the current drought is likely to accentuate debate over a $25 billion water project that Brown has made a priority of his third term.

At his appearance in San Francisco, Brown sought to use the drought to his advantage, arguing long-term water management will be improved by his plan to build two tunnels to divert water around the Delta to the south.

"I think it makes the case that more water can be saved if you have a Delta facility," he said.

Brown also suggested the state will press the federal government to accelerate environmental reviews of the project.

Restore the Delta, a group opposed of Brown's plan to build the tunnels, said in a statement that with California now in its third straight dry year, there is no surplus water to export.

California appears to be facing similar calls for catchment wide, water management reform that Australia began dealing with last decade (e.g. Murray Darling Basin Plan)

Why Almonds? - Outlook - Supply - US Drought

Red states = Extreme Drought – 63% of California (1 year ago – 0%) – 100% of US almond crop

Orange states = Severe Drought – 90% of California (1 year ago – 22%) – 100% of US almond crop

Why Almonds? - Outlook - Supply - US Drought

100% of US Almond producing counties were in Extreme Drought as at 14 Jan 2014

Why Almonds? - Australian Almond Industry

Company	Orchards	Processing	Sales & Marketing
Select Harvests	11,560 acres (4,680 ha) –15%market shareVic,SA& NSW	Primary Processing30KT RobinvaleVicValue Added ProcessingRobinvale & Thomastown Vic	Consumer, Foodservice &Industrial businessesGlobal Nut Trader
Olam	30,000 acres (11,949 ha) –40% market shareVic	Primary Processing40KTCarwarp Vic	Consumer, Foodservice &Industrial businessesGlobal Nut Trader
Almondco(Simarloo)	Nil direct145 grower suppliers	Primary Processing30KTRenmark, SAValue Added Processing	Consumer, Foodservice &Industrial businessesGlobal Almond Trader
Nut Producers Australia(Riverland Almonds)	Yes –acreage unknown	Primary Processing10KTLoxton, SA	Consumer, Foodservice &Industrial businessesAlmond & Pistachio Trader

Australia has 74,742 acres (30,260 ha) of almond orchards (Australian Almond Insights 2012-13, Almond Board of Australia).

Table as at 1 Jan 2013

SHV is the only stock exchange listed, pure-play almond opportunity globally

SHV - Background

History

• Listed on ASX in 1978
• Developer and manager of orchards & almonds
• Service provider to Managed Investment Schemes ("MIS")
• Developed a significant portion of the current Australian almond industry
• Heavily reliant on government, MIS and a single MIS operator
• Today
  • Diversified, vertically integrated agribusiness
  • Positioned to benefit from healthy eating and the growth of developing economies underpinned by outstanding almond market fundamentals
  • 50% of Board and Executive have changed in last 18 months

An integrated agribusiness underpinned by almonds

SHV - Snapshot - as at 1 Jan 2014

SHVSEGMENTS	ALMOND DIVISION		FOOD DIVISION
BusinessFunctionsAsat 1/1/2014	Almond Orchards& Trading	Processing –Carina West	Processing–Thomastown	Sales & Marketing
Summary ofCapability	Almond OrchardPortfolio•Bearing -11,560 acres (4,680 hectares "ha")•Planted -11,779 acres (4,769 ha)•Additional Plantable-1,000 acres (405 ha)Global & Local Almond Trader	Primary Processor•Up 30KTper annum•Robinvale Vic	Value Added Processor•12KTper annum•Thomastown Vic	Food Division Units•Consumer•Foodservice•Industrial•Local nut & seed trader
Key Attributes	Owned/Leased -Bearing•5,635 acres (2,281 ha) owned•4,498 acres (1,821 ha) leasedManaged –Bearing•1,427 acres (578 ha) VICGeographic Diversity –Bearing•6,352 acres (2,572 ha) VIC•4,528 acres (1,833 ha) NSW•680 acres (275 ha) SA	Primary Processing•Hulling & Shelling•Inshellbagging•Bulk cartons & bags	Value Added•Blanching•Slicing•Dicing•Meal•Pastes•Roasting•Blending	Brands•Lucky: Cooking (No.1)•Sunsol: Snacking•Soland: Health Food•Nuvit: Health Food•Renshaw: Industrial•AllingaFarms: IndustrialCustomers•Coles•Woolworths•Mars•Unilever•Export

SHV – an integrated agribusiness that controls almond Supply Chain

SHV - Orchards - Geographic Diversity

SHV - Orchard Profile - A Competitive Advantage

As at 1 Jan2014 Note: SHV's WA orchards are excluded from this summary

At 2014 Harvest (Feb 2014), 73% of SHV Orchards will be economically mature

SHV - FY13 - Financial Performance Overview

Earnings Before Interest & Tax ("EBIT")

• Reported FY13 EBIT A$5.3M
• Underlying FY13 EBIT A$33.7M (up 92% vs Underlying FY12 EBIT A$19.6M)
• Net Profit after Tax ("NPAT")
  • Reported FY13 NPAT A$2.9M (vs Reported FY12 Net Loss After Tax A$4.5M)
  • Underlying FY13 NPAT A$22.9M (up 141% vs Underlying FY12 NPAT A$9.5M)
• Cash flow
  • FY13 Cash flow A$4.1M (vs FY12 A$22M)
  • A$48M of working capital as at 30 June 2013 majority will be converted to cash by 31 Dec
• Earnings Per Share ("EPS")
  • Reported EPS 5.0 cents per share ("cps")
  • Underlying EPS 40.1 cps (up 139% on FY12 Underlying EPS 16.8cps)
• Dividends
  • Final Dividend 9 cps
  • Full year dividend totals 12 cps (up 50% on previous full year dividend of 8cps)

SHV Board, Management & Employees focussed on delivering improved performance

SHV - FY13 - Income Statement

Financial Result (A$m)	FY12	FY13FY13 Underlying EBIT A$37.7m(FY12 A$19.6m)
Reported Result		Includes a fair value adjustment of A$20.2m
EBIT -Reported	(2.5)	(FY12 A$2.5m)5.3
Interest	(6.2)	80% of sales exported(5.1)
NPBT/(Net Loss before Tax)	(8.7)	Almond Division EBIT A$36.4(FY12 A$17.4m)0.2
(Tax Expense)/Benefit	4.2	Strong performance led by Company Orchards2.7
NPAT/(Net Loss after Tax) -Reported	(4.5)	-return to normal conditions2.9
Pre-Tax Adjustments *	22.1	Managed Orchards have declined as Olaminsourced 29,500 acres of almond orchards 132.5July 2012.
Underlying Result		Food Division EBIT A$5.5m(FY12 A$6.0m)
EBIT -Underlying	19.6	Very competitive domestic landscape37.7
Interest	(6.2)	Loss of private label almond business(5.1)
NPBT	13.4	32.7Branded business & Industrial sales delivered
(Tax Expense)	(3.9)	positive growth(9.8)
NPAT –Underlying	9.5	Underlying NPAT up 141% to A$22.9m22.9

* Detailed breakdown – Appendix - FY12 & FY13 Adjustments

(A$m)	Year ending	30/06/2012	30/06/2013
Current Assets excl. Cash		75.9	114.4
Cash		1.0	8.9
Non Current Assets		202.4	180.5
Total Assets		279.3	303.8
Current Liabilities (excl. Borrowings)		28.8	35.9
Borrowings		68.0	88.1
Non Current Liabilities (excl. Borrowings)		22.1	20.3
Total Liabilities		118.9	144.3
Total Equity		160.4	159.5
Net Debt		67.0	79.2

Net Debt /Equity 41.8% 49.7% NTA Per Share A$2.19 A$2.14

• NAB & Rabobank A$135m
  • A$50m term expiring 2018
  • A$60m line working capital & business projects
  • A$25m acquisition line

Timing of new crop sales & receipts

• Straddles 30 June balance date
• Significant receipts since then
• Net Debt A$79.2m
• Gearing (Net Debt/Equity) 49.7%
  • Anticipate <40% end FY14

Capital Management & Funding Plan

Achieve & maintain a prudent balance sheet to support growth strategy

(A$m)	FY12	FY13
EBITDA -Underlying	25.7	42.5
Change in Working Capital	(4.5)	(33.8)
Taxes Received	4.9	0.9
Net Interest	(4.1)	(5.5)
Cash flow from operating activities	22.0	4.1
Investing cash flows	(12.3)	(13.9)
Increase/(Decrease) in Debt	(12.0)	19.3
Dividends Paid	(3.6)	(2.4)
Net Increase/(Decrease) in Cash/Cash Equivalents	(5.9)	7.0

• A$48m of 2013 crop in inventory at 30 June => convert to cash in 1HFY14
• Working capital has peaked
• Investing cash flows driven by:
  • Acquisition A$6.3m
  • Capex A$4.0m
  • Trees A$6.4m
  • Proceeds from asset sales primarily water (A$2.4m)
• Capex FY14
  • Trees replant investment
  • NSW water purchases
  • Minimal replacement capex

ALMONDDIVISION	Reported		Underlying
EBIT (A$m) –pre Corporate Costs	FY12FY13		FY12	FY13
Managed Orchards	9.3	4.7	14.2	4.7
Company Orchards	(12.9)	(0.9)	3.1	31.7
Almond Division	(3.6)	4.2	17.3	36.4

FOODDIVISION	Reported		Underlying
EBIT (A$m) –pre Corporate Costs	FY12	FY13	FY12	FY13
Food Division	6.0	5.5	6.0	5.5

Almond Division -Transforming & Delivering. Food Division – Work in Progress

SHV - FY13 - Achievements

Almond Division - began to demonstrate its potential

• Better conditions (weather, markets, price, exchange rate)
• Better management and decision making (tools, techniques & cost control)
• Better outcomes (volumes, quality, profits)
• Acquisitions acquired 1,286 acres (521 ha) of almond orchards
• Food Division - undergoing review
  • Record year in Industrial
  • Brands require innovation & investment. Unprofitable SKU's exited
  • Trading conditions with major retailers remain challenging
  • Short term performance improvement program delivering & working capital down
• Past 12 months - establishing foundation
  • Comprehensive review of business (internal & independent) decisions taken, future strategy set, being implemented
  • Structures
  • People
  • High Performance Culture underpinning the result was a 68% reduction in Lost Time Injuries (LTI)
  • Balance Sheet banking facility refinance, increase & extension NAB & Rabobank year on year saving A$0.5M

Successful transition from orchard manager for 3rd parties into fully integrated agribusiness

Activities

• 2014 SHV Crop Horticultural program well underway harvest will commence mid Feb
• Orchard maturity profile Largely offsets orchard replant program
  • NSW Improving maturity profile of SHV Company Orchards
  • VIC short term yield constraints as SHV Company orchard replant program implemented
• Nil Olam contribution in FY14 impact approx. $5m less across SHV Group EBIT than FY13
• Actively seeking growth opportunities new processing volumes, orchard acquisitions etc
• WA Assets focus on maximising value
• Global Demand almond pricing remains firm, driven by healthy eating and healthy snacking

2014 Crop

• Crop similar size to 2012/13
• Price between 10%-15% up on 2013

Green - positive & well advanced, Orange - positive but less advanced, Red - Negative

SHV well positioned to take advantage of Supply & Demand fundamentals

SHV - Almond Division - Risk Mitigation

Area	Action
FarmingPractices	•Empowered farm management•IntroducedHarvest guidelines to reduce weather exposure
Management Tools	•Great on-farmKPI's & reporting•Introduction of Leaf Bomb Pressure Test technology
Processing Standards	•Re-introduction of LEANmanufacturing processes•Higher quality standards & testing across the business•Pasteuriser commissioned and operational
Labour Skill& Management	•Improved training of harvest contractors•Quality & productivity based remuneration for labour
Capex	•Investment in pasteuriser & freefall metal detectors•Investment in frost mitigation technology
Orchard Development	•Total review of existingorchard potential•Long term development plan inc. plant density & variety
Water	•Water purchase for NSW orchards•New water policy -exposure over 3 years (1/3 long term lease, 1/3 annual, 1/3 spot)
Frost mitigation	•Installed frost fans on more highly exposed orchards in NSWand VIC
Bees	•Long term Bee Supply Agreement -3 years (Victorian orchards)
	Maximise: Yield, Price and Quality

SHV - Food Division - Brand Summary

SHV - Food Division - Activities & Outlook

Activities

• Performance improvement program to right size supply chain
• Consumer products price increases
• Scoping new markets both local and export
• Deliver initial innovation & consumer insights
• Increase reporting & measurement
• Exited unprofitable SKU's

Outlook

• Focus on margin management, innovation & insights and costs/kg
• Plan to restructure business

Green - positive & well advanced, Orange - positive but less advanced, Red - Negative

SHV - Growth Opportunities

Orchards

• Better horticultural performance across all trees
• Maturing of immature trees
• Replant older trees
• Replant more productive varieties & at higher densities

Processing

• New processing contracts
• Improve processing: safety, processing & performance
• Orchard acquisitions

Food business

• Improve manufacturing safety, processes and performance
• New Markets e.g. Food Services & NZ
• Rationalise and replace with innovative SKU's
• Insight driven strategies and products

Focus: Productive Economic Outcomes - Best Cost

SHV - Strategy towards 2018

38

		Status
1.CONTROL CRITICAL MASSOF ALMONDS	Secure the critical mass of nuts needed to maximizeprofitability and leverage the global almond opportunity.	Commenced
2.IMPROVE YIELD & CROPVALUE	Improve yield and overall crop value by perfecting on-farmand farm to factory practices.	Commenced
3.BE BEST IN CLASS SUPPLYCHAIN	Continuously improve our supply chain, achieving highquality, low cost and optimum capital utilisation.	UnderDevelopment
4.INVEST IN INDUSTRIAL &TRADING DIVISION	Allocate resources to leverage our trading skills and growsales in the industrial channel.	UnderDevelopment
5.TURN AROUND PACKAGEDFOOD BUSINESS	Develop a new model for the packaged food category thatwill deliver sustainable returns above the cost of capital.	Commenced
6.FIX OUR SYSTEMS &PROCESSES	Develop the business systems and processesrequired to bea global industry leader.	UnderDevelopment
7. ENGAGE WITH OUR PEOPLE& OUR STAKEHOLDERS	Engage with investors and our industry while developing theteam required to be a global industry leader.	Commenced

SHV - Summary

Leadership

Sharper focus on delivering performance and improvement

Integrated business model

• Source of strategic advantage
• Confident SHV has the right strategy

SHV is well positioned

• Good industry healthy product with strong, historical & forecast long term growth prospects (8% p.a.)
• Good position in industry Australia is 2nd largest almond producer
• Countercyclical to Californian Northern Hemisphere production
• Good business integrated, geographically diversified, strong market shares across the business
• Good assets relatively new, globally competitive processing facility. Maturing orchards in sweet spot
• Good opportunities increase volumes by leveraging advantages of integrated business model i.e. utilising production, processing and marketing capabilities and knowledge

Well positioned to benefit from the trends to healthy eating and improved Asian diets

Thankyou

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

SHV - Financial History

		2006	2007	2008	2009	2010	2011	2012	2013
SHV Historical Summary	Units
Total Sales	(A$M)	217.9	229.5	224.7	248.6	238.4	248.3	251.3	191.1
EBIT	(A$M)	38.4	40.5	27.1	26.8	26.0	22.6	19.6	37.7
EBIT Margin (EBIT/Sales - %)	(%)	17.6%	17.6%	12.1%	10.8%	10.9%	9.1%	7.8%	19.7%
PBT	(A$M)	37.9	40.0	25.4	23.0	23.6	18.5	13.4	32.7
NPAT	(A$M)	26.5	28.1	18.1	16.7	17.3	17.7	9.5	22.9
Issued Shares	No. of Shares	39.7	38.7	39.0	39.5	39.8	56.2	56.8	57.5
Earnings Per Share	(AUD Cents per Share)	67.1	71.0	46.7	42.6	43.3	33.7	16.8	40.1
Dividend per Share	(AUD Cents per Share)	53.0	57.0	45.0	12.0	21.0	13.0	8.0	12.0
Payout Ratio	(%)	80.0%	80.0%	96.7%	28.2%	48.5%	38.6%	47.6%	29.9%
Net Tangible Assets per Share	(A$/Share)	1.83	1.57	1.41	1.56	1.87	2.17	2.19	2.14
Net Interest Cover	(times)	82.3	75.8	15.6	7.1	10.7	6.7	3.2	7.5
Net Debt	(A$M)	1.3	1.6	46.8	52.4	45.0	73.1	66.8	79.3
Shareholder Equity	(A$M)	101.5	95.5	94.1	100.9	113.6	168.8	160.3	159.5
Net Debt to Equity Ratio	(%)	1.3%	1.7%	49.7%	51.9%	39.6%	43.3%	41.7%	49.7%
Share Price	(A$/Share)	13.02	11.60	6.00	2.16	3.46	1.84	2.40	3.90
Market Capitalisation	(A$M)	517.0	449.4	234.1	85.4	137.6	103.5	120.0	224.3
P/E Ratio		19.5	16.0	12.9	5.1	8.0	5.8	12.6	9.8

Name	Title	Date joined Board
Michael Iwaniw	Chairman	November 2011
Paul Thompson	Managing Director	July 2012
Fred Grimwade	Non-ExecutiveDirector	July 2010
Ross Herron	Non-Executive Director	January 2005
MichaelCarroll	Non-ExecutiveDirector	March 2009
Paul Riordan	Non-ExecutiveDirector	October 2012

Name	Title
Paul Thompson	Managing Director
Peter Ross	GM Horticulture
Bruce Van Twest	GM Operations
Mark Eva	GMConsumer Sales & Marketing
Laurence Van Driel	GroupTrading Manager
Paul Chambers	CFO/Company Secretary
Tom Kite	HR Manager

		Bearing	Planted
SHV Controlled Orchards	Acres	Hectares	Acres	Hectares
Owned	3,444	1,394	3,663	1,483
Leased	1,481	600	1,481	600
Victoria	4,925	1,994	5,144	2,083
Owned	1,511	612	1,511	612
Leased	3,017	1,221	3,017	1,221
NSW	4,528	1,833	4,528	1,833
Owned	680	275	680	275
Leased	-	-	-	-
South Australia	680	275	680	275
Total Controlled Orchards	10,133	4,102	10,352	4,191
Managed Orchards	1,427	578	1,427	578
Total Portfolio	11,560	4,680	11,779	4,769
Orchard Category
Owned	5,635	2,281	5,854	2,370
Leased	4,498	1,821	4,498	1,821
Managed Orchards	1,427	578	1,427	578
Total Portfolio	11,560	4,680	11,779	4,769
Orchard Geography
VIC	6,352	2,572	6,571	2,661
NSW	4,528	1,833	4,528	1,833
SA	680	275	680	275
Total Portfolio	11,560	4,680	11,779	4,769

SHV has an additional 1,000 acres (405 hectares) suitable for planting

SHV - Almond Division - Performance

	Reported		Underlying
EBIT ($m)	FY12	FY13	FY12	FY13
Managed Orchards	9.3	4.7	14.2	4.7
Company Orchards	(12.9)	(0.9)	3.1	31.7
Almond Division	(3.6)	4.2	17.3	36.4

Performance

• FY13 crop volume est. 12,000 tonnes (FY12 5,830 tonnes) up 102% in line with guidance
• FY13 price est. $6.38/kg (FY12 A$5.08/kg) up 26%
  • Avge. FY13 AUD/USD Rate = 0.97
• FY13 crop Improved, more normal seasonal conditions after 3 years of abnormal weather:
  • Yield averaged 1.2 tonnes/acre full horticultural program ,good pollination, dry harvest
  • Quality shift back to premium size & grade, quality focus in processing
  • Price general market increase, currency plus quality improvement boosted average price
  • Costs tight management whilst supporting larger crop and changing some horticultural practices
  • Volume total volume processed 17,000 tonnes (No Olam)
• Acquisition of 1,286 acres (520 ha) in Feb 2013

Future Managed Orchards will represent less than 5% of SHV Group EBIT

SHV - Food Division - Performance

		Reported		Underlying
EBIT (A$m)	FY12	FY13	FY12	FY13
Food Division	6.0	5.5	6.0	5.5

Performance

• Very competitive domestic market in all sectors
• Industrial deliver record result 40% up on FY12
• Loss of private label almond contracts with major retailers
  • -ve Food Division impact
  • +ve Almond Division impact
• Branded business remains strong
• Quality improved
• Working capital & headcount down 25%
• Outlook
  • Industrial will continue to grow

Food Division not creating sufficient value

SHV - Food Division - Sunsol - Renovation

48

New Packaging. New Formulation. New Pricing

SHV - FY12 and FY13 Adjustments

Item (A$)	Amount		Explanation
	FY12	FY13
Corporate	1.2		Restructuring costs and R&D Tax consulting costs in FY12
Gain on Sale of Water	(4.0)		Gain on sale of 11GL of permanent water rights in FY12
Processing asset write-down	4.9		Write –down of redundant/obsolete processing assets in FY12
WA Project Impairment	20.0	39.9	Asset write-down on WA Greenfield Project
Discount on Acquisition		(7.4)	Discount on FY13 orchard acquisitions (net transaction costs)

TOTAL (PRE-TAX)	22.1	32.5
TOTAL (POST-TAX)	14.0	20.0

WA Asset write-down

• As reported at 1HFY13 Result, the Company wrote down the WA Greenfields Almond Project by $39.9m ($27.9m post-tax)
• Book value of WA assets at 30 June 2013 $5.0m

Gain on acquisition of almond orchards

• Acquired 1,286 acres (520 ha) of almond orchards in Feb 2013
• It resulted in an after tax gain on acquisition of the almond orchard assets of $7.4m (net of transaction costs)
  • Gains arise from requirement in Accounting Standards to value assets on acquisition at fair value
  • Acquired assets are valued consistently with other existing company almond orchard assets
• In addition, there was a gain on valuation rights of the acquired almond crop of $1.0m included in Underlying EBIT

SHV - WA Sale Process Update

• WA Greenfields Project -13,700 acres (5,546 ha) across 3 properties
  • 3,949 acres (1,598 ha) planted
  • High quality irrigation infrastructure
  • 22GL water entitlements secured to support 4,000 acres at maturity
• Capital invested A$61m (A$4m feasibility, A$36m land & infrastructure, A$21m trees)
• Current book value A$5m, following write downs at FY12 and 1HFY13 Results
• Sales process conducted to gather initial expressions of interest
• Opportunities currently being evaluated

Company committed to maximise value of assets and investments made to date

Why Almonds? - Outlook - US Drought

THE PRESS-ENTERPRISE

Published: January 04, 2014; 08:00 PM

A record dry year offers a grim reminder to California about the perpetual peril of drought — and the need for preparedness. The state cannot escape the weather patterns that threaten water shortages, but can protect against that menace. Residents will need to boost conservation efforts, but legislators should also take steps to ensure a reliable supply of water for the state.

California marked 2013 as the driest calendar year in state history, with precipitation well below normal across much of the state. Riverside, for example, saw a mere 3.36 inches of rain in 2013, breaking the old record of 3.43 inches in 1961. Los Angeles saw 3.6 inches of rain last year, about half an inch less than the previous record. Many of the state's reservoirs are less than half full, and well below historical averages, after two consecutive dry winters. More than 94 percent of California is in moderate drought or worse, according to the U.S. Drought Monitor, a collaboration of federal agencies and the University of Nebraska.

That outlook could improve if the remaining winter months provide more rain and snow. But drought is never far away in California, and the state requires a more dependable approach to meeting water needs than hoping for rain.

The state's capacity to survive dry periods requires a comprehensive strategy. Average Californians can help by further reducing water use. Conservation is the easiest and most efficient way to stretch water supplies, and can be as simple as only running full loads of laundry and dishes, fixing leaky faucets promptly and sweeping sidewalks instead of hosing them off.

But the Legislature also needs to act to safeguard California's water supplies. Water that flows through the Sacramento-San Joaquin Delta serves two-thirds of the state's population and irrigates millions of acres of farmland. But continued water exports are threatened by the environmental ills in the delta, which have already prompted periodic cutbacks in water deliveries. The many conflicting interests in the delta make reaching consensus tough, and solutions are likely to be expensive. But abandoning the water exports that are crucial to much of the state would be reckless public policy.

California will also need to boost water storage capacity in reservoirs and underground aquifers. Collecting and storing water during wet years for use later is a critical element in any anti-drought approach. Some long-range forecasts also predict the state will see more winter rain and less snow, making improved efforts to catch winter storm runoff a priority for the state.

The state also has to step up monitoring of groundwater pumping, increase water recycling and clean up polluted supplies, among other needs. Paying for those efforts, however, will require the Legislature to craft a realistic, affordable water bond. The pork-laden $11.1 billion measure on the November ballot stands little chance of passage, which is why legislators have repeatedly postponed sending it to voters. Legislators should trim the pork and focus the bond tightly on the highest-priority water needs.

California will never escape drought, given the state's climate and geography. But careful policy and sensible practices can enable the state to survive — and thrive — even in the driest years

California appears to be facing similar calls for catchment wide, water management reform that Australia began dealing with last decade (e.g. Murray Darling Basin Plan)

California (which produces 83% of global almond supply) is experiencing drought of considerable historical significance