Good morning, and welcome to Select Harvests' 2021 annual general meeting. I'm Michael Iwaniw, Chairman of Select Harvests Limited. I'll be chairing today's AGM with the assistance of Brad Crump, Chief Financial Officer and Company Secretary of Select Harvests, and Paul Thompson, our Managing Director. Both Paul and I will be making presentations today, following which Paul, Brad, myself, and my fellow directors will be happy to answer your questions before overviewing the company's resolutions. This presentation will be recorded and uploaded onto the Select Harvests website. Joining me today in this virtual annual general meeting are your directors, Fred Grimwade, Nicki Anderson, Fiona Bennett, Guy Kingwill, and Travis Dillon. Please note the disclaimer and the basis of preparation of this presentation.
Today, Paul and I will provide an overview of our financial year 2021 financial and operational performance, our current and future strategy, our overall company and market outlook, and our financial year 2022 priorities. The AGM resolutions will follow the presentations and after questions have concluded. We have some questions submitted prior to the meeting. Any questions that are not covered by the presentation, I will address at the start of the Q&A session. Brad will provide an outline of today's procedures covering the meeting, questions, and voting guidelines. Brad, over to you.
Thanks, Michael. The virtual meeting guidelines. Today's meeting is being held online via the Computershare meeting platform. This allows shareholders, proxies, and guests to attend the meeting virtually. All attendees can watch a live webcast of the meeting. In addition, shareholders and proxies have the ability to ask questions and submit votes. On the question guidelines, questions can be submitted at any time. To ask a question, select the Q&A icon, type your question into the text box. Once you've finished typing, please hit the Send button. To ask a verbal question, please follow the instructions written below the broadcast. Please note that while you can submit questions from now on, they will not be addressed until the relevant time in the meeting. Please also note that your questions may be moderated, or if we receive multiple questions on one topic, amalgamated together.
Finally, due to time constraints, we may run out of time to answer all of your questions. If this occurs, we'll answer them in due course via email, posting, or posting responses on our website. The voting guidelines. Voting today will be conducted by way of a poll on all items of business. In order to provide you with enough time to vote, we will shortly open voting for all resolutions. Once voting opens, press the Vote icon and all resolutions will be activated with voting options. To vote, select either For, Against, or Abstain. You will receive a vote confirmation notification on your screens. There's no need to hit a Submit or Enter button, as the vote is automatically recorded. To change or cancel your vote, click here to change your vote at any time until the poll is closed. Thanks, Michael.
Thank you. Thanks, Brad. I now declare voting open on all resolutions. Please submit your votes at any time. I'll give you warning before I move to closing voting at the end of the meeting. In presenting my chairman's address today, I will spend most time discussing Select Harvests' ongoing strategy and highlight the work we have done to position the company to take advantage of the lift in almond prices that we believe will inevitably come. The global almond price is volatile. It's important to note, however, that there's an upward trend in the medium to long-term almond price, which has grown by a compound annual growth rate of 2.9% over the past 30 years. Over the last 10-year cycle, the average almond price has been $8.15 per kilogram.
Select Harvests has acquired and leased orchards with a planted area now over 9,000 hectares and a 2022 crop expected of close to 30,000 tons. Additionally, we have developed and implemented world's best practice orchard management, mitigated risks in foreign exchange and water supply, invested in value-added almond products, and grown the value of our assets. All this has not only resulted in improved baseline profitability, but also an increase in the underlying asset values. Based on valuations completed at the end of financial year 2020, the market value of Select Harvests' orchards is currently AUD 78 million higher than their recorded book value. Our water assets, based on current market valuations, are currently AUD 80 million higher than their recorded book value. Combined, that is AUD 158 million of asset value growth.
Overall, our underlying net asset value AUD 685 million. Select has demonstrated that it can remain profitable at the low point in the almond cycle. When almonds return to the longer run average price of AUD 8.15 per kilogram, our result and profitability will significantly increase. At this price, with our current production levels and production costs, it's not unreasonable to suggest our NPAT would be around AUD 50 million. Our financial year for 2021, which for Select was October 1, 2020 to September 30, 2021, have been well covered since their release in November. Our headline NPAT of AUD 15.1 million, EBITDA of AUD 40.4 million, and EPS of AUD 0.127 were all down on the previous year.
While the dividend was lower than last year at 8 cents per share, fully franked. The board chose to increase the payout ratio to 62.9% and continue the dividend reinvestment plan with a 2.5% discount. Importantly, the company's operating cash flow increased substantially from AUD 13.2 million to AUD 38.2 million. This was predominantly due to key markets coming out of lockdown and increased levels of shipments delivered, albeit still in a congested logistical environment. Our balance sheet remains strong with a net bank debt to equity at 18.6% excluding our lease liabilities. Last year's AGM, I described the findings of a comprehensive strategic review of the growth options and supply chain solutions for the food division and the subsequent actions we intended to take.
We followed through over the course of the year, completing the sale of the Lucky and Sunsol brands to Prolife Foods on the September 30. The sale meant a one-off cost that is recognized in our accounts under discontinued operations in addition to the earnings related to the sold portion of the business. This slide illustrates the composition of the AUD 10.2 million difference between our reported NPAT of AUD 15.1 million and what I think is far more representative NPAT for the continuing operations of AUD 25.3 million. As we move through the 2022 financial year, the effect of our operational realignment will steadily become more apparent.
Financial year 2021 saw our production increase to 28,250 tons, a new record for the business with the addition of the Piangil orchard, generating most of the uplift. Our orchards continued to produce yields above industry standards. As young trees grow, the yields increase, and it's pleasing to note the rate of increase for our immature trees has been above our business case expectations. The fact that our young trees perform well early is a strong vote of confidence in both our orchards and their management. A fall in the world almond price was a principal driver of Select's reduced financial performance. California is the world price setter, produced a record crop of 3.2 billion pounds that was aggressively sold in 2021 to exports, driving prices to extremely low levels.
Low prices did have the upside of generating new demand and record U.S. shipments month after month that helped clear U.S. stocks. These stocks, shipping to Europe, China, and India, went partly into inventory, and today the market is still rebalancing. However, they are clearly being consumed, and that is important. The price over the year can be seen in this chart of U.S. almond values. You will note a period of higher prices for a few months later in the year, some of which we were able to capture in our sales program. Importantly, with Select's focus on quality in growing and processing almonds, we achieved a much higher portion of our sales in the premium in-shell market, increasing our volume from 6,575 tons to 15,719 tons.
Our almond production costs for 2021 were AUD 5.63 per kilogram. Increases in orchard input costs, mainly due to additional expenditure on orchard hygiene, lifted this figure slightly above the previous year. However, our overall production costs were well controlled and below the five-year average. Also down, and perhaps the most pleasing reduction to mention of all, was a 25% drop in our lost time injury frequency rate. I've commented on safety issues extensively in previous years. In 2020 and 2021, a major part of workplace safety was our COVID-19 management and response plan. While obviously an issue, our other programs continued with a particular focus on hazard identification and risk eradication to avoid incidents. Select Harvests values a strong safety culture. It's something every workplace should promote. It's why our policy is zero harm.
Identifying hazards, improve systems, and processes do better. This must be part of our culture and is the responsibility of everyone who works in or visits any of our facilities. At last year's AGM, our purchase of the Piangil orchard was only two months in, whereas now, a year later, we're in a better position to confirm our confidence in this investment. The point of this investment, which increased our crop area by 20%, was clearly that of acquiring a good orchard we could make better and entirely consistent with the strategy we've outlined numerous times in optimizing our almond base. Piangil's yield performance, operating costs, and quality levels were all in line or better than our financial year 2022 business case. The staff team are now integrated with Select. The capital we plan to spend is on track.
Farm safety has improved, and we see scope to improve the quality of the almonds from this block. Ongoing improvement is expected over the next few years. In August, we announced the sale of the Lucky and Sunsol brands, the consumer branded and non-almond segments of our business. This involves two important relocations, the transfer of all almond processing operations from Thomastown to our facility at Carina West, and the relocation of our offices to Richmond in Melbourne. The office move was completed in mid-December, and the necessary upgrades to increase its processing capacity at Carina West are complete and operational for the current harvest. Concentrating our processing at Carina West considerably closer to our orchards is a logical step. Our new facilities will lift our processing capacity, capability, and efficiency through more automation, better systems, and reduce waste.
To put this into perspective, some lines will double in throughput, and the completed works at our value-added facilities would allow us to run at least 20% of our crop through this process. Select is very enthusiastic about almonds, that's obvious. This crop has so much to offer today's health-conscious consumers. The value-added sector has the potential to take this further and is a significant target market. Industry analysis forecasts the regional value-added almond markets being targeted by Select at a compounded annual growth rate of 6.1%, estimating that this global market to grow to $5 billion in value over the next 10 years. Select's current suite of products, including various cuts and pastes, will be added to through the introduction of emerging products such as providing the ingredients for almond flour and butters.
With this and the overall work at Carina West, we are creating an opportunity to Select to service more markets with a strong range of products, and we are clearly focused on doing so. Producing 30,000 tons of almond kernels means we produce 90,000 tons of husk and shell, most of which is currently used to generate electricity through our H2E plant, around 22,000 tons, or sold to the livestock feed market. We're investing in three significant co-waste projects, each utilizing these on-site resources and repurposing them to either make compost or reclaim fertilizer. As an example, our composting program from waste ash, skins, and other organic matter this year yielded 30,000 tons of compost for our orchards. A significant amount that is set to increase. This leads to less requirement for external fertilizer inputs and adds to our closed loop production process.
We are also currently investigating additional commercial opportunity to utilize this by-product, which is rich in nutrients and sugar, to generate new income streams that will add to Select's increased focus on sustainability. At Select, the key platform in our strategy is to be in control of our destiny. We grow trees on one of the driest continents in the world, make food products and sell them in a world market where Australia is a small supplier. What that means is that in seeking to control our destiny, we must be very good at recognizing what we can control, doing the best with it we can, and creating, managing it around everything else to maximum effect. Our strategy on a page here lists five values, trust and respect, integrity and diversity, sustainability, performance, and innovation.
Sustainability is in the center, and it's there for a reason. To help explain this further, earlier today, Select released this environmental statement. I encourage you to read this statement, which is on our website, because it sets out, in short form, both Select's commitment to responsible, environmental, and sustainable operational practice, as well as the elements of our strategy to deliver this commitment. Select remains committed through its strategic priorities to deliver ongoing value creation for its shareholders by generating acceptable returns through effective capital allocation. This will be delivered through continuing to assess opportunities to purchase existing orchards when they are shareholder accretive, for example, the successful acquisition of Piangil, optimizing our current almond base for improved yields, efficiency, and quality uplift, and assessing the option of commercially growing almonds in alternate locations.
Determining the commercial returns and options of growing and processing alternate nuts such as macadamias, leveraging our expertise. Continuing to investigate additional value-add opportunities for both increasing throughput volumes and adding new products to our Allinga Farms and Renshaw brands. Those brands you can see at the bottom right-hand of all our slides today. I want to move now to the changes in your board, with Travis Dillon appointed as director on the November 29 and Nicki Anderson stepping down today. Travis was welcomed to the board almost three months ago now, and I'm sorry that with this virtual meeting, shareholders are unable to meet him in person. At the time of his appointment, outlining Travis's extensive experience in the agricultural industry, both at board and management levels, which is repeated in today's notice of meeting as he stands for election.
In January, I announced Nicki Anderson's advice that she'll retire by rotation and does not seek re-election today. Nicki joined the board as a non-executive director in 2016 and has been both Chair of the Remuneration and Sustainability Committee and a member of the Nomination Committee. In her six years with Select, we have been through much change and many challenges, during which time her positive contribution has been recognized, particularly with respect to occupational health and safety, sustainability, and human resources. On your behalf, I thank Nicki for her contribution and commitment to Select Harvests and wish her every success in her future endeavors. Board succession, which will be implemented over the next two years, is important for every company. It requires planning and careful consideration and should be seen as a positive for the business.
Select Harvests Board charter includes the expectation that non-executive directors should not serve more than a maximum of 12 years. Our director succession plan recognizes all these points, and accordingly, I advise that Fred Grimwade will retire from the Board at our annual general meeting in 2023, having been director and a substantial contributor to the company since July 2010. To conclude today, I want to thank Paul and all his staff for the work they've put in during the 2021 financial year and ongoing, and we are now well advanced into 2022.
None of us should underestimate just how disruptive the effects of COVID have been, and indeed still are, across the community, impacting how people go about their work and their daily lives. In my view, and I know I can speak for all of Select's directors here, the team of people who work at Select have defined themselves extraordinarily well in handling the challenge of the past year. On your behalf as shareholders, I want to formally acknowledge our people and their contribution individually and collectively, including those people at our Thomastown facility who will leave Select this year. I hope you have seen as I worked with this address today, it is due to the efforts of our team, your team, that this company is in a strong position to progress its strategy for the future.
The 2022 harvest is upon us and is being approached with enthusiasm and commitment as always. I thank my fellow directors for their time, effort, and cooperation as we farewell Nicki Anderson and welcome Travis. Finally, thank you to our shareholders. One of the pleasures in reporting to you at a normal AGM is the opportunity to talk to people in person, and I hope this may return in 2023.
Thank you, Michael. Good morning, everyone. Michael's covered the financial results extensively, so my intention is to provide you with an update on the market conditions and the status of the 2022 crop. The almond market has been very challenging over the last two years due to a combination of factors. Record crops in Australia and California, supply chain disruption, and channel switching during lockdowns. The Indian and European markets invested in inventory at these lower prices. Inventories are now returning to normal, and we are seeing more buyers reentering the market. Globally, there are positive signs of increased demand in the away-from-home and food service sectors due to people moving out of lockdown and entertainment, travel, and business rebuilding. Lower prices increased opportunities for almond consumption in both the snacking and the ingredients market segments.
The United States, specifically California, represents 80% of the world's almond supply. California is currently facing several challenges. A multi-year drought, escalating cash input costs, changes to water legislation, and significant supply chain disruption, with the port of L.A. and Long Beach heavily congested. This can be seen in the Almond Board of California’s January Industry Position Report, with year-to-date exports down 22% and total shipments down 16%. The Australian industry's marketing and shipping program has not been as dramatically impacted. The Almond Board of Australia’s December position report reported export shipments up 14.5% year to date. The California shipment delays and congestions are forecast to create larger than normal carry over inventory between seasons.
As a result, almond prices have recently returned back to the low levels we saw last year, as we announced to the ASX on the January 31, 2022. Our crop outlook. Slide 28. Our crop this season has been grown in wetter than normal conditions. To date, there has been isolated, unseasonably heavy rains across our growing regions. For the most part, these have had little effect. With normal conditions and accounting for our improved maturity profile, we estimate our 2022 crop will be higher than last year at 29,500 tons, up from 28,250 tons. Harvest update. Fortunately, we've been able to get our seasonal labor in place to support our harvest during our operational peak. COVID definitely made this a challenge.
This week, the Carina West processing facility commenced processing the 2022 crop. Our harvest started on February 14 in Victoria and South Australia. Anecdotally, the quality and the yields are meeting our expectations, but it's far too early to be definitive. Harvest in New South Wales commenced this week. We expect to see some quality and in-shell impacts due to the wetter weather within this region. As the size and the quality of the crop becomes apparent, we'll provide an update via an announcement to the ASX. Market demand. Today's market, almond buyers are paying a premium for high quality in-shell, larger sizes, and prompt delivery. We've sold more than 20% of our 2022 crop into the export markets.
We're focused on the Asian markets, where there is no need for transshipment through the concurrently congested ports like Singapore, and freight costs have not increased as significantly as, say, to the European market. We've covered over 85% of our currency at $0.73 . Market supply. The 2022 supply outlook is less clear, with California in the middle of pollination. To date, their weather has been favorable, but it's too early to determine the impact of another year of drought, unexpected events like frost, and of course, the impact of acreage that has been removed between seasons due to the age of the orchards or the access to water. Currently, all the reservoirs in California are well below their historical averages for this time of year.
The snowpack is sitting at 73% of the historical average for this time of year. All the impacts of this will become clearer over the next quarter. The Australian crop is projected to be 20% higher in 2022. Given the size of the Australian almond industry, this 20% growth will contribute less than 2% to global supply. Nurseries in both California and Australia are experiencing lower demand for trees, and as growers are concerned about secure water availability and the more recent lower returns and costs. We are not in a position to give guidance around future costs as we are currently tendering our 2023 input requirements.
Our goal, as always, is to minimize and control the absolute costs as we strive to deliver the lowest cost per kilogram while delivering the best quality product, ensuring we realize the best price per kilogram. Historically, our largest uncontrollable cost has been water, with temporary water prices reaching AUD 700 in 2020. Today, temporary water is trading for less than AUD 100. Lower water costs will flow through into the 2022 result, with estimated savings of between AUD 6 million and AUD 8 million. I'm sure you would all be aware of the recent dramatic increase in horticultural input cash costs, fuel, fertilizer, herbicides, and weed control products. Fortunately, these costs have not impacted the 2022 crop, and assuming we hit our volume target, our cost per kilogram will be close to last year. The environment.
As Michael said, we are custodians and operate in a very important part of regional Australia. Today, we are releasing our environmental statement, which is an important platform of our triple bottom line focus. Select Harvests supports the United Nations Framework Convention on Climate Change and the UN Sustainable Development Goals and the Paris Agreement and COP 21. The environmental statement outlines our goals in the following areas, water stewardship, air and land stewardship, reducing and recycling waste, carbon neutrality, and working with internal and external stakeholders on environmental issues. I'd like to focus on a couple of significant projects we're undertaking this year. We've just commenced a project to measure our carbon footprint. We know from U.S. studies that almond production-associated composting does have a positive impact on the environment.
The challenge is to understand the impact of our activities based on our total biomass, not just the kernel produced, which is the current way it's measured. We're now a much more environmentally focused company and are going to invest more in understanding their supply chain and communicating more clearly our expectations, targets, and governance. I know we can take a leadership role in our region, and more particularly in our industry. As Michael said, the statement is available on our website. People and community. As you know, Select Harvests is a significant employer in regional Australia. Accordingly, we recognize our role and responsibilities to support our people and communities in which we live. In the last year, we've reviewed many of our policies, including parental leave, flexible work practices, and community service.
All Select Harvests employees are entitled to take two days community service leave to support an authorized community service, for example, the Country Fire Authority. As Michael said, we've updated and introduced a more automated workplace health and safety reporting system, increasing the emphasis on forward-oriented measures such as habit-hazard identification. As a result of this proactive rather than reactive strategy, for the third year in a row, we've reduced our lost time injury frequency rate. Like every workplace, Select Harvests has been impacted by COVID. One initiative our team did take with Bendigo Health and the Murray Valley Aboriginal Co-op was to set up five vaccination hubs for our workforce, their families, seasonal workers, and the local community. Over 350 vaccinations were provided at our Carina West facility. Operating across three states during COVID has been extremely challenging.
I'd like to thank our employees for their commitment and ask for unity across our governments when legislating around workplace safety, food regulations, critical infrastructure, and the management of national assets like the Murray-Darling Basin. Managing varying legislative requirements is exhausting and just adds unnecessarily financial and psychological costs during already challenging times. The Thomastown closure, as Michael advised, the sale of the consumer brands business and the exiting of non-almond products has resulted in the need to close the Thomastown production facility. The production of retail and non-almond products will cease in Thomastown over the next five months, leading to a full exit by the November 30. All affected staff and customers and suppliers have been advised, and the transfer of production is underway to Carina West.
I'd like to express my thanks to the affected staff members on the way they have responded and conducted themselves. Our 2022 priorities. Our priorities for 2022 is to continue to execute our growth strategy, underpinned by a world-class portfolio of almond assets and outstanding teams. Our nine priorities are, one, safety and well-being. Ensure the safety and well-being of all stakeholders. Two, food division restructure. Complete the exit from Thomastown and expansion of Carina West. Three, horticultural program. Complete the 2022 harvest and invest in the 2023 crop. Four, control costs. Maintain a focus on absolute cost to minimize cost per kilo. Five, sustainability reporting. We'll be publishing another report, including a map of our carbon footprint. Six, our marketing program.
Maximize the price per kilogram, recognizing the supply chain congestion. Seven, strategic growth. Assess options to deliver profitable growth. Eight, manage cash position, maintain a strong balance sheet. Nine, capital. Manage to improve the return, our returns through the cycle. To conclude, this morning I'd like to thank all our staff right across the business for the effort they have put in during a year that has presented many challenges. I wanna make a special mention of our people in the food division at Thomastown, who have worked through uncertainty whilst we realign our business. Although it has been some months until we cease production.
Although it is still some months until they cease to be part of the Select Harvests team, today is the last formal shareholder meeting before then, and I think it's important to acknowledge the contribution the people at Thomastown have made to the business of Select Harvests over the past few years, especially to Suzanne Douglas and her leadership team. I'd also like to thank our staff at Robinvale and the Robinvale community, the CFA, and the many suppliers who helped fight the whole fire between Christmas and New Year, and then go on to prepare for the 2022 crop. Many of these people left their families and returned from annual leave. That speaks volumes about our team, our local community, our suppliers, and all our stakeholders. I wanna thank Nicki Anderson for her time as a director over the last six years.
As Managing Director, my role, I gain input from the board members, both as a group and individually. Nicki has always been a passionate member of the board, and I wish her well. I look forward to working with our new Director, Travis Dillon, who brings a wealth of experience to Select Harvests. I'd like to thank my executive, Brad, Peter, Suzanne, Nicole, and Dan. Thank you, Michael, for your earlier kind words in relation to the Select Harvests team. The Select Harvests team thank you and the board for your support and guidance over the last 12 months. Finally, on behalf of all the team, I'd like to thank our shareholders for the faith you put in us. Thank you.
Well, thank you, Paul, and thank you very much for your presentation. I'll now move to the ordinary business outlined in the notice of annual general meeting. The first item of ordinary business on today's agenda is to receive and consider the financial statements of the company and its controlled entities for the financial year ended September 30, 2021, and the related directors' reports and auditors' reports. Company secretary has been monitoring questions from shareholders. Brad, are there any online questions relating to the financial statements or any other aspects of the company's operations?
Thanks, Michael. We have a few questions. The first one is, Select Harvests have claimed to have certain advantages with the Southern Hemisphere alternative season marketing. With its large harvest and aggressive marketing, has the Californian almond marketing affected Select Harvests alternative season sales or timing of those sales?
Well, thank you. I think the obvious effect with the Californians is the logistics problems that Paul referred to in moving almonds out from California to their markets, and this has had a negative effect, forcing prices down. This obviously has an impact on the prices that we received for our almonds.
Thank you. The next one, it covers OH&S. In OH&S, there's been a marked increase in total recordable incidents and hazards. Apart from noting the increases, could the board provide further information about the underlying reasons and what will be taken to reduce them in 2023?
Thanks, Brad. Paul here. Look, we did make a significant change in our reporting, going to an online mobile phone app for the reporting. I think previously we probably had underreported incidents and hazards. You know, it's much more user-friendly, so we're collecting more data. The good positive about that is the gathering of that data gives us more diagnostics, so we can invest in training and eradicating any issues that are there. The other thing is that we have been encouraging people to report hazards in advance. We're, as I said during my presentation, using proactive measures rather than reactive measures. If someone can identify a hazard, and we can sort out a hazard before it becomes an accident, that is our preference.
Brad, can I just come back to that first question? Whilst maybe not direct, it's indirectly the importance of the Chinese market because it alludes to where we've sent our product. Chinese market, size of the market in China is about 120,000 tons, which coincidentally is about the size of the total Australian crop. It's very important to us because we have a advantage in terms of tariffs. We don't pay tariffs into China, and also we have a freight advantage in shipping into China as against almonds coming from California. This year, in addition to those advantages, our quality is better. We have a better kernel size than the Californians. So we do have advantages, and that's where we're into that particular market.
Whereas in a market like Europe, we have a very distinct freight disadvantage over the Californians. Obviously we'll be focusing a lot of our sales into China.
That pretty much answers the next question we had, which was, are the U.S.-China trade tariffs still ongoing? If so, what effect does that have on our market pricing?
Yes, they are ongoing, and I think I've, you know, covered they give us a price advantage. The other thing is that in the Chinese market being the quality market, that they do take a sizable amount of in-shell, which at this point in time delivers a premium price. It is, as I said earlier, it is a very important market to us, and it's a market which we can service at a cost advantage.
I might just make one other comment there that the whole Asian market is clearly an important pool for us because of location and that. India as well is a critically important market for us.
One final question: how does the team see current input cost risk regarding fertilizer, considering what's happening geopolitically around Russia and Ukraine?
Look, we're obviously very concerned about it. I mean, it is a global commodity that has had some pretty dramatic price increases. We're actually in the market today tendering for next year's crop, and we'll know within the next couple of weeks what sort of impact we'll have there. You know, we are still heavily reliant on purchasing in those inputs. We're less reliant than we were five years ago because we're doing a lot more composting and recycling and re-yielding stuff from our biomass plant. It's one of those uncontrollables that we just have to try and manage as well as we can.
Thank you. Thanks, Michael. There's no more questions.
We will now move to the resolutions outlined in the notice of annual general meeting. The explanation of the Corporations Act and background to this resolution will be outlined in the explanatory notes. Shareholders should note that in accordance with the Corporations Act, members of the company's key management personnel whose remuneration details are included in the remuneration report for the financial year ended September 30, 2021, and their closely related parties are prohibited from voting on this resolution. Any votes cast by those persons are void and must not be counted. Exceptions apply to me as the Chairman voting as proxy on behalf of eligible shareholders who have directed me on how to vote on the resolution. If proxy votes are open, I advise that I'll vote in favor. Resolution one, the remuneration report.
The remuneration report has been provided to shareholders, and I now propose the following resolution: To adopt the remuneration report for the financial year ended September 30, 2021, submitted as part of the directors' report for the financial year ended September 30, 2021, pursuant to sections 250R(2) and 250R(3) of the Corporations Act 2001. Brad, are there any online submitted questions or comments?
No.
The company secretary will now provide the final proxy votes submitted.
Outcome of the proxy votes are as follows: Those in favor, 71,111,841. Those against, 1,135,927. Open and usable votes, 442,518.
Thank you. Director elections, the election of Guy Kingwill. The first part of this resolution is to elect as director Mr. Guy Kingwill, who retires in accordance with rule 63.1 of the company's constitution and, being eligible, offers himself for re-election to be re-elected as director. Brad, are there any online questions submitted on this resolution?
No.
The company secretary will now provide the final proxy votes submitted.
Outcome of the proxy votes is as follows. Those in favor, 71,275,670. Those against, 2,108,857. Open and usable votes, 508,881.
Thanks, Brad. Resolution 2B, the election of Travis Dillon. I now move to the second part of this resolution, which is to elect as a director Mr. Travis Dillon, for having been appointed by directors of the company as a director on the November 29, 2021 in accordance with clause 62 of the company's constitution and, being eligible, offers himself for election to be elected as director. Are there any online questions relating to this resolution?
No.
The Company Secretary will now provide the final proxy votes submitted.
Outcome of the proxy votes are as follows. Those in favor, 71,462,382. Those against, 1,914,827. Open and usable votes, 510,881.
Resolution three, approval of increase in maximum remuneration of non-executive directors. I now move to resolution number three, which is that for the purpose of ASX Listing Rule 10.17 and clause 66 of the company's constitution and for all other purposes, the maximum aggregated annual remuneration that may be paid by the company as remuneration for the services of the company's non-executive directors in each year to be increased by 2.5% or AUD 23,750 from AUD 950,000 to AUD 973,750. Brad, are there any submitted questions relating to this resolution?
No.
The Company Secretary will now provide the final proxy votes submitted.
Outcome of the proxy vote are as follows: Those in favor, 72,003,082. Those against, 887,075. Open and usable votes, 441,837.
Thanks, Brad. Resolution four, participation by the Managing Director in the Long Term Incentive Plan. I now move to resolution four, which is to approve the participation by the Managing Director in the Long Term Incentive Plan under ASX Listing Rule 10.14. The company is proposing to issue awards with fully vested face value of AUD 1,148,542 to Mr. Paul Thompson. The number of awards will be determined by dividing that fully vested face value by the volume weighted average market price of fully paid ordinary shares in the company over the 10 days preceding the date of the AGM. As per ASX Listing Rule 10.14, no director can acquire securities under an employee incentive scheme without shareholder approval. This resolution is seeking that approval.
Shareholders should note that members of the company's key management personnel and their closely related parties, as well as a director of the company who is eligible to participate in the Long Term Incentive Plan are prohibited from voting on this resolution. Brad, are there any submitted questions relating to this resolution?
No.
Brad, would you state the outcome of the vote, please?
Outcome of the proxy votes are as follows. Those in favor, 70,293,150. Those against, 1,342,323. Open and usable votes, 443,827.
Ladies and gentlemen, that concludes our discussion on the items of business. In a couple of minutes, I will close the voting system. Please ensure that you have cast your vote on all resolutions. I will now pause to allow you time to finalize those votes.