Select Harvests : Bell Potter Conference

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Bell Potter Conference

8th June 2022

Paul Thompson

Managing Director & CEO

Disclaimer & Basis of Preparation

onlyThis presentation is provided for information purposes only and has been prepared using information provided by the company. The information contained in this presentation is not intended to be relied upon as advice to investors and does not take into account the investment objectives, financial situation or needs of any particular investor. Investors should consider their own individual investment and financial circumstances in relation to any investment decision.

Certain statements contained in this presentation may constitute forward-looking statements or statements about future matters that are based upon information known and assumptions made as of the date of this presentation.

useThese statements are subject to risks and uncertainties. Actual results may differ materially from any future results or performance expressed, predicted or implied by the statements contained in this presentation.

The Select Harvests Limited financial statements are prepared in accordance with Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the Corporations Act 2001. This includes application of AASB 141 Agriculture in accounting for the current year almond crop, which is classified as a biological asset. In applying this standard to determine the value of the current year crop, the Company makes various assumptions at the balance date as the selling price of the crop can only be estimated and the actual crop yield will not be known until it is completely processed and sold. The resulting accounting estimates will, by definition, seldom equal the related actual results, and have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

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Almond Industry Carbon Facts from California

Almond trees in California absorb more C02 than they produce during their lifetime.

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				Total Biomass produced by Almond crop in California per Ha
				during the life cycle
				= 181MT Kernel + 220 MT Hull & shell + 40-50 MT of woody
				biomass
				= Total 450 MT Organic biomass
				= CO2 absorption by the crop during the life cycle 960 MT
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CO2 & methane emission		Burning woody biomass

• Feed stock

ersonal		•	Emissions = > 440 MT CO2e		Woody		• Emissions = >100 MT CO2e
	Hull & Shell		Soil Carbon Sequestration		Biomass
	(220 MT/Ha)		•	Compost production
				Whole orchard recycling
		•	Biochar/Cogen plant		(40-50 MT)
					• Cogen plant
			•	Hull digested liquid				• Potential Soil Carbon credits =
			•	(potential for soil carbon credits)
						> 100MT CO2e
			•	Emissions = > 440 MT CO2

Sou ce: A scalable and spatiotemporally resolved agricultural life cycle assessment of California (Elias Marvinney, Alissa
Kendall; The International Journal of life cycle assessment, March 2021);
A comparative assessment of greenhouse gas emissions in California almond, pistachio, and walnut production (Elias	3
Marvinn y, Alissa Kendall, Sonja Brodt; 9th International conference LCA of food San Francisco, USA 2014)

Almond Growing a Closed Loop

30,000MT

130,000MT

Compost returned

Biomass produced

to orchards

by our orchards

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9,262 HA

Orchards

Fruit Forests

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10,000MT

10,000MT

Biomass Energy

Inshell

Plant

Exported

60,000MT

20,000MT

Stockfeed

Kernel Sales

1: Marvinn y, E., Kendall, A. A scalable and spatiotemporally resolved agricultural life cycle assessment of California almonds. Int J Life Cycle Assess

2: Fulton, J., Norton, M. and Shilling, F. (2019). Water-indexed benefits and impacts of California almonds. Ecological Indicators.

2: March 2021 Report on the 'Economic contribution of the Australian Almond Industry' by RMCG Consulting for Horticulture Innovation Australia

• Almond trees in California absorb more C02 than they produce during their lifetime1
• Almonds provide a very high nutritional value, ranking the highest amongst all crops2
• The direct economic benefits of almond production based on market sales are larger than any other crops2
• Research is being undertaken in Australia to establish Australian Almond Industry position.

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Triple Bottom Line Focus

Sustainability is a core value underpinning our business strategy and centres across three platforms: Planet, People and Profit.

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1. ROCE: R turn on Capital Employed. WACC: Weighted Average Cost of Capital