Seafarms Group Limited · ASX:SFG
Seafarms — Shareholder Meeting (February 2016)
37 slides from Seafarms's shareholder meeting presentation, Feb 1, 2016
Slide 1: ASX announcement: AGM addresses to shareholders
Our Ref: SFG ASX Announce AGM Presentation 2015 (459) For personal use only 1 February 2016 ANNOUNCEMENT 459 Company Announcements Office Australian Securities Exchange Level 4 By ASX Online 20 Bridge Street Number of pages: 37 SYDNEY NSW 2000 (including this page) Dear Sir RE: ANNUAL GENERAL MEETIN
Slide 2: Annual General Meeting February 2016
For personal use only Annual General Meeting February 2016 Transformation of Australia’s largest aquaculture prawn producer into a global player Seafarms Group Limited
Slide 3: Disclaimer
Disclaimer For personal use only This presentation has been produced by Seafarms Group Limited (SFG or the Company) only and may contain forward looking statements that are based on management’s current expectations and beliefs and are subject to a number of factors and uncertainties that could caus
Slide 4: Overview
Seafarms Group Limited For personal use only Overview 1. Chairman’s Overview 2. Operations 3. Project Sea Dragon 3
Slide 5: Chairman's Overview
For personal use only Chairman's Overview 4
Slide 6: Chairman's Letter
Chairman's Letter For personal use only Welcome Ladies & Gentleman to the Seafarms Group Limited AGM. 2016 will be a big year for your company as we anticipate securing the necessary licenses to operate for the funding and development of Project Sea Dragon. The Sea Dragon journey commenced some 4.5
Slide 7: Chairman's Letter
Chairman's Letter For personal use only Cardwell Operations have provided the platform for better understanding the challenges and risks involved in growing black tiger prawns and developing risk management programs to manage biological risks. It has also provided the opportunity to develop staff tr
Slide 8: Chairman's Letter
Chairman's Letter For personal use only In summary there have been a number of positive factors for Project Sea Dragon including; • Substantially reduced engineering and earthmoving costs (the largest capital spend of the project) directly related to the decline in the mineral commodities cycle; • T
Slide 9: Chairman's Letter
Chairman's Letter For personal use only Costs per tonne of product are forecast to fall from A$7,500 per tonne to around A$4,500 per tonne over 6 to 7 years as additional production ponds are added. Based upon 100,000 tonne per annum production profile this relates to a $300 million per annum operat
Slide 10: Chairman's Letter
Chairman's Letter For personal use only So in summary (refer to graph above) the Project Sea Dragon development is all about driving operating costs down through economies of scale and generating increasing yield through known science research technology applications. These two factors have the pote
Slide 11: Chairman's Letter
Chairman's Letter For personal use only Finally all the necessary project approvals and indigenous land agreements are progressing to plan and remain on schedule for the project to be investment ready by the end of 2016 calendar year. With regard to our CO2 Australian operation, this business unit r
Slide 12: Operational Overview
For personal use only Operational Overview 11
Slide 13: Current Operations
Current Operations For personal use only Consolidation of the company’s investment in its Queensland operations. Hatcheries Innisfail Capacity of 27 million PL’s per run (up 68%) Domestication program R&D Project with ARC Research Hub for Advanced Prawn Breeding Exmouth Biosecure breeding facility F
Slide 14: Production Overview
Production Overview For personal use only Calendar year production up 28% to 1,400 tonnes Black tiger production increased to target mix (74%) 13
Slide 15: Operational Challenges
Operational Challenges For personal use only Black Tiger yields were up 10% for CY2015 but challenges remain: Between‐pond variances appear due to a combination of factors. They include: Unseasonably cool temperatures for part of the crop‐cycle; An unavoidable requirement for the company to obtain a
Slide 16: Research & Development
Research & Development For personal use only Training, research and development trials have added costs to the company’s operations. Activities included: Early recruitment of technical expertise and the initiation of a Graduate Employment Program. Trials of different stocking densities and feeding r
Slide 17: Research & Development
Research & Development For personal use only ARC Hub for Advanced Shrimp Breeding To –date 71 families in total have been produced at Seafarms, consisting of 7 inbred families, 60 commercial families and 4 individual families. RNA libraries from 8 tissue types have been subjected to next‐generation
Slide 18: Hatchery Outcomes
Hatchery Outcomes For personal use only External PL sources on target Domestication advancing Domesticated broodstock ponds activated at Innisfail 2nd generation domesticated animals harvested in November 2016 Further G2 families stocked in broodstock ponds at Innisfail Target for G3 families to be
Slide 19: Safety
Safety For personal use only Incidents continue to decline Further work needed to improve behavioural outcomes in a rural context Dedicated Health Safety & Environment Manager to start in February 2015 18
Slide 20: Employment & Productivity
Employment & Productivity For personal use only 93 FTE across the organisation Productivity 15.3 tonnes per FTE Systems are in place and focus now turns to improving productivity Increase yield and outputs Investing in efficiency 19
Slide 21: Marketing Activities Driving Brand Growth
Marketing Activities Driving Brand For personal use only Growth Key Marketing Successes 2015 Crystal Bay brand has the highest recall Nationally Brand positioning , strategies & activity plans established Activation of positioning in all communications Website, Facebook, Linkedin assets and video co
Slide 22: Sales & Distribution
Sales & Distribution For personal use only CY sales up 68% to $24.7 million ASP up 6% 50% of sales in November / December for Christmas supply Healthy distribution mix Positive uptake by major retailers Maintenance of volume to the wholesale market 21
Slide 23: Export Markets
Export Markets For personal use only Export approval completed in April 2015 Export to Asia Limited volumes available due to high domestic demand Discussions continue Wholesaler / distributor in Europe Global supermarket chain Japanese sashimi wholesaler Distributors in Hong Kong Focus High quality,
Slide 24: 2015 Capital Projects
2015 Capital Projects For personal use only Processing Investments with efficiency and safety focus Increase capacity to 23 tonnes per day New Automated batch weighers installed to remove labour from the packing area Expansion of the pack out area Reduced labour requirements (17% improvement Decembe
Slide 25: 2016 Capital Projects
2016 Capital Projects For personal use only Hatchery Infrastructure upgrades to support domestication and breeding program Farms As required capital replacement Processing Invest in freezing capacity 24
Slide 26: Looking Forward
Looking Forward For personal use only Further improvement in productivity Focus on challenges and reducing variability Capital projects to reduce operating costs Core focus of using domesticated broodstock 25
Slide 27: Project Sea Dragon
For personal use only Project Sea Dragon 26
Slide 28: Project Sea Dragon
Project Sea Dragon For personal use only Previous advice targeting Project Sea Dragon to be investment ready by the end of calendar 2016 holds; As a result of the downturn in the hard commodities cycle, PSD has benefitted from substantially reduced engineering and design costs and expects its BFS co
Slide 29: Project Sea Dragon Unique Attributes
Project Sea Dragon Unique Attributes For personal use only 10,000 hectare aggregation – Completed Concept (April 2013) staged development and Pre‐Feasibility Studies (June Integrated production 2013) Genetics, brood stock Developed country platform Hatchery Biosecurity Grow‐out Provenance Process fo
Slide 30: Favourable changes in key strategic settings since pre-feasibility studies
Favourable changes in key strategic settings since pre‐feasibility studies For personal use only Markets Free trade agreements with key markets completed China Korea Japan Australian exchange rate improves competitive position Global challenge in supplying larger animals Decline in hard commodity pr
Slide 31: Project Sea Dragon – CY15 Progress
Project Sea Dragon – CY15 Progress For personal use only Major progress in 2015 calendar year Design and feasibility Bankable feasibility study commenced April 2015 Recent updates Key high resolution topographic data‐set for Legune captured by Lidar Master Plan outlining siting of Stage 1 Developmen
Slide 32: Project Sea Dragon – CY15 Progress
Project Sea Dragon – CY15 Progress For personal use only Community & Local business Public consultations held Kununurra, Timber Ck, Dundee Beach Solid community support Support is so strong from business community that we will open Industry Collaboration Network gateway early Land tenure and sites E
Slide 33: Seafarms Group FY15 Annual Report Presentation
For personal use only Seafarms Group FY15 Annual Report Presentation 32
Slide 34: Project Sea Dragon – Approvals
Project Sea Dragon – Approvals For personal use only No change to approvals required for project The three key areas for approval are: Environmental Indigenous and cultural Land tenure Significant progress continues to be made Seafarms Group FY15 Annual Report Presentation 33
Slide 35: Project Sea Dragon – Project Funding
Project Sea Dragon – Project Funding For personal use only Strong interest in the project from a number of international companies and now major Australian companies. Discussions continue to be advanced Governments remain very supportive of the project and continue to promote the project at a number
Slide 36: Project Sea Dragon - Outlook
Project Sea Dragon ‐ Outlook For personal use only Still targeting major approvals complete end of Calendar 2016 Government Expect to complete a Project Development Agreement with the Northern Territory Government Agreement to map pathways to 10,000 ha project Use adaptive management approach Indige
Slide 37: Contact Us
For personal use only Contact Us Seafarms Group Limited Level 11, 225 St Georges Terrace Perth WA 6000 PO Box 7312 Cloisters Square WA 6850 T. +61 8 9321 4111 F. +61 8 9321 4411 E. info@seafarms.com.au