Sanford Limited · NZX:SAN

Sanford — Shareholder Meeting (December 2018)

26 slides from Sanford's shareholder meeting presentation, December 2018

  1. Slide 1: Annual General Meeting December 2018

    = ANNUAL GENERAL MEETING alg DECEMBER 2018

  2. Slide 2: Steffan Stewart 1992-2018

    Steffan Stewart 1992-2018

  3. Slide 3: Solid business performance despite adverse climatic conditions

    Solid business performance despite adverse climatic conditions CATCH/HARVEST VOLUME REVENUE ADJUSTED EBIT EBIT GWT kg 118k GWT $515M $64.7M 54c* 5.6% 7.7% 1.5% +0.02c/kg RETURN ON AVERAGE NPAT EPS ANNUAL DIVIDEND TOTAL EQUITY $42.3M** 45c 23CPS 7.3 % Up from 6.6% 12.9% +5c Stable Wild Catch GWT 2% A

  4. Slide 4: Strong cash flow and balance sheet

    Strong cash flow and balance sheet GEARING NET DEBT EBITDA* $152.4M $84.4M 26.6% 16% TOTAL EQUITY 2% DEBT / EBITDA down from 32.3% $582M 1.81x 1% FY17 2.25x Operating Cash Flow OPERATING CASH FLOW $100,000 $72.6m NZD $’000 $50,000 44% $- FY16 FY17 FY18 *EBITDA: Earnings before interest, taxation, no

  5. Slide 5: FY18 Headwinds

    FY18 Headwinds  Marine heatwave impacted salmon growth and mortality rates – led to suspended sales for 10 weeks  Algal bloom impacted mussel harvests and yields in Marlborough  Extended shutdown of Havelock plant for earthquake repairs  Lower hoki catch volumes leading to voluntary shelving of

  6. Slide 6: Albert Sanford bought his first boat in 1864

    Albert Sanford bought his first boat in 1864 Established the company in 1881 Listed on the NZX in 1924 ‹6› 6

  7. Slide 7: We satisfy customers globally

    We satisfy customers globally 22 61 8 deep water independent processing, & inshore sharefishers incl. joint ‹7› vessels operations

  8. Slide 8: Diversified revenue, operations and customer base

    Diversified revenue, operations and customer base ‹8›

  9. Slide 9: Sanford's <IR> Journey: Building Trust through Transparency

    SANFORD’S <IR> JOURNEY Building Trust through Transparency

  10. Slide 10: 2018 Strategy in Action – Branding

    2018 STRATEGY IN ACTION – PROGRESS AND DELIVERY ON KEY FOCUS AREAS  Investment in brand development - Big Glory Bay, Sanford Blue and Sanford Black BRANDING  Focus on end customer, replacing third party distributors  “Focus on Fresh“ - 9.2% of Sales are now fresh, up from 8.3%  Acquired Auckland

  11. Slide 11: Slide 11

  12. Slide 12: Slide 12

  13. Slide 13: 2018 Strategy in Action – Innovation

    2018 STRATEGY IN ACTION – PROGRESS AND DELIVERY ON KEY FOCUS AREAS  Developed Sea to Me nutraceuticals range  Marine collagen nano-fibre for skin care products INNOVATION  Selective spat breeding at SPATNZ  Further rollout of PSH across our deep water fleet ‹13›

  14. Slide 14: Reducing the Dependence on Volume: Adding value

    REDUCING THE DEPENDENCE ON VOLUME Adding value 14

  15. Slide 15: 2018 Strategy in Action – Operational Excellence

    2018 STRATEGY IN ACTION – PROGRESS AND DELIVERY ON KEY FOCUS AREAS  Salmon – infrastructure investment, volume growth  Havelock facility upgraded for earthquake strengthening OPERATIONAL  Hoki product cascade improvements moving from fillet frozen in EXCELLENCE blocks to individually frozen fille

  16. Slide 16: $120m investment over 2 years

    $120m investment over 2 years FOUNDATIONAL TRANSFORMATIONAL ASPIRATIONAL Product & Technology Innovation Social License $10M Channel Development Development $4M Operational $3M Excellence Organisational $55M Brand Capability Development $4M SanCore $10M $15M F19 F21

  17. Slide 17: 2018 Strategy in Action – Organisation Capability

    2018 STRATEGY IN ACTION – PROGRESS AND DELIVERY ON KEY FOCUS AREAS  Huge success with “Keeping it Fresh”, “San Ignite”, and “San Activate” development programmes. ‘Highly commended employer’ by Tertiary Education ORGANISATION Commission Skills Highway for our “Keeping it Fresh” programme CAPABIILTY

  18. Slide 18: Health & Safety

    Health & Safety Continuous reduction in injury numbers from 2016- 2018 Our 2019 safety strategy will  Drive a formal safety management system  Adopt a risk based approach  Provide confidence, clarity and certainty to our people and stakeholders  Deliver strategic initiatives to reduce the risk o

  19. Slide 19: Think Safe, Be Safe, Home Safe

    THINK SAFE, BE SAFE, HOME SAFE

  20. Slide 20: Climate Change

    C L I M AT E C H A N G E © COLMAR BRUNTON BETTER FUTURES REPORT 2017 EDITION

  21. Slide 21: Value strategy driving adjusted EBIT improvement

    Value strategy driving adjusted EBIT improvement Key Drivers of YOY ADJUSTED EBIT change $m Climate -11m Value +6m Strategy in Action +6m ‹21›

  22. Slide 22: Plastic Waste

    18 PLASTIC WASTE ˃ Studies estimate that the world’s oceans will contain more plastics than fish by 2050 ˃ Estimates are that at least 2/3 of the world’s fish stocks suffer from plastic ingestion, and 90% of seabirds ingest plastic daily

  23. Slide 23: Sanford mobilising positive action

    Sanford mobilising positive action  Identify, quantify, set impact reduction targets  Internal and external engagement - personal pledge  Reducing plastic packaging  Developing operational alternatives to plastic  Engaging in strategic partnership ‹23›

  24. Slide 24: What's Coming for Sanford in 2019

    WHAT’S COMING FOR SANFORD IN 2019 ‹24›

  25. Slide 25: Slide 25

  26. Slide 26: Sanford

    SS) SANFORD - BEAUTIFUL NEW ZEALAND SEAFOOD -

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