Sanford Limited · NZX:SAN
Sanford — H1 2015 Earnings Presentation
16 slides from Sanford's earnings presentation, May 26, 2015
Slide 1: Sanford Limited – Sustainable Seafood
SANFORD LIMITED SUSTAINABLE SEAFOOD Volker Kuntzsch Chief Executive Officer
Slide 2: Disclaimer
Disclaimer This presentation contains not only a review of operations, but also some forward looking statements about Sanford Limited and the environment in which the company operates. Because these statements are forward looking, Sanford Limited’s actual results could differ materially. Media relea
Slide 3: H1 2015 Review
H1 2015 Review 3
Slide 4: H1 2015 Result
H1 2015 Result Consolidated Interim Income Statement Unaudited Unaudited 6 months ended 6 months ended 31 March 2014 3 March 2015 (D restated $000 $000 Revenue 225,980 225,659 EBITDA” 33,896 28,692 Depreciation and amortisation (8942) (9,047) Impairment (6787) - EBIT” 18,167 19,645 Net interest (4,8
Slide 5: H1 2015 In Review
H1 2015 In Review • Highlights – 18% improvement in EBITDA from H1 F14 – Good catches, especially in the deepwater area – New organisation structure gaining traction – Interim dividend maintained at 9 cents per share and fully imputed. Will be paid 19 June 2015 • Lowlights – Mussel business impacted
Slide 6: 2014 – 2015 EBITDA Bridge
2014 – 2015 EBITDA Bridge • Fishing – good catch and better mix of product sales • Aquaculture – demand impacted by strong Euro and high stock level in North America. Supply impacted by environmental conditions • Other – sale of the Vos and Brijs site ($0.7m) in H1 F14 and additional cost relating t
Slide 7: Global Context
Global Context 7
Slide 8: Global Fisheries Production
Global Fisheries Production Share of Capture and Aquaculture Million MT 157 158 163 160 148 143 146 140 134 136 137 141 120 122 126 125 128 127 120 114 100 80 60 40 20 0 '97 '99 '01 '03 '05 '07 '09 '11 13 Capture Aquaculture Source: FAO Fishery Statistics 8
Slide 9: NZ Seafood holds great potential
NZ Seafood holds great potential • Increasing demand for fresh fish globally highlights move towards food made from scratch and an appreciation for quality with reliable provenance • NZ is a tiny player on the global fresh fish market • Global seafood consumption is increasing • Key drivers for incr
Slide 10: Sanford Looking Forward
Sanford Looking Forward 10
Slide 11: Diversified Species Portfolio
Diversified Species Portfolio Sales Revenue by Major Species YTD March 2015 (March 2014) Greenshell Mussels Other Species 28% (30%) 27% (28%) Jack Mackerel 4% (3%) Arrow Squid 4% (3%) Hoki 11% (9%) Ling 4% (3%) King Salmon 7% (9%) Scampi Snapper 6% (4%) 4% (5%) Skipjack Tuna 5% (6%) Greenshell Musse
Slide 12: Diversified Markets
Diversified Markets Sales by Geographical Location 6 months ended 31 March 2015 Other Australia 1% (1%) New Zealand 16% (18%) 20% (19%) Pacific 0% (3%) Europe Middle East 10% (13%) 2% (2%) Africa 6% (3%) North America 18% (17%) Korea 11% (9%) Other Asia China/Hong Kong Japan 5% (5%) 7% (6%) 4% (4%)
Slide 13: Adding Value to our Marine Resources
Adding Value to our Marine Resources • Fresh vs Frozen – Future portfolio to be split across fresh fish, frozen customized and frozen commodity • By-product utilization – Using the whole fish • Extraction of high value ingredients – Oil 13
Slide 14: Brand
Brand • From resource extraction to food processing • Rebranding in progress to support cultural shift internally and communicate customer focus externally • Updated website to be launched during H2 • Social media strategy in process of implementation to improve transparency and support “social lice
Slide 15: Updated Structure to Strengthen Customer Focus
Updated Structure to Strengthen Customer Focus CEO Group Quality CFO COO CPO CCO Manager Finance Processing Human Resource Customer development Compliance Treasury Supply Chain Sustainability New Channels/Markets Quality IT Fishing Retention Auckland Fish Market Enhancement Payroll Farming Culture B
Slide 16: Sanford Limited
Ss SANFORD LIMITED