Slide 1: Annual Meeting 2007
fen ki ANNUAL MEETING 2007 WY WS :
Slide 2: Chairman's Agenda
Chairman’s Agenda > Open Meeting > Minutes of 2006 Meeting > Apologies
Slide 3: Business of Meeting
Business of Meeting > Annual Report and Accounts »Chairman’s Address »CFO Stuart McKinstry will address Financial matters »CEO Michael Franks will address Operational matters »Discussion, comments and questions »Resolutions
Slide 4: Chairman's Address
Chairman’s Address Brian Allison
Slide 5: Chairman's address
Chairman’s address > 2006/07 a challenging year with exceptional fruit loss > $2.84m NPAT > Result did not meet objectives > Extensive programme of operational improvements > Mandatory Convertible Notes repaid
Slide 6: Chairman's address
Chairman’s address > Total Assets exceeded $100m > Dividend maintained at 20 cents per share > Finished year in strong financial position > Great support from growers > Support Zespri’s marketing role > Supply chain needs to improve > Requires vocal support from shareholders and growers
Slide 7: Financials 2006 / 2007
Financials 2006 / 2007 Stuart McKinstry CFO
Slide 8: Overview
Overview > $95.5m total revenue > $11.9m EBITDA > $4.0m earnings before tax »$1.3m lower than 2006 »Fruit loss - packed volumes – OGR > Operating cashflow $4.2m > Associates performed well adding $522,000
Slide 9: EBITDA
EBITDA 2006 2007 Variance Orchard Operations Lease & Orchard Operations -$1,230,456 -$553,607 $676,850 Long-term Leases $914,833 $1,665,113 $750,280 Total EBITDA Orchard Operations -$315,623 $1,111,507 $1,427,130 Total EBITDA Post Harvest Operations $16,436,618 $15,995,280 -$441,339 Corporate Overhe
Slide 10: Operating contributions
Operating contributions Revenue EBITDA Contribution 2007 Post Harvest 65,600,000 15,995,280 12,627,751 Orcharding 28,200,000 1,111,507 532,309 93,800,000 17,106,787 13,160,060 14.03% 2006 Post Harvest 64,200,000 16,436,618 13,013,816 Orcharding 27,600,000 - 315,623 - 825,493 91,800,000 16,120,995 12
Slide 11: Net Profit
Net Profit 2007 2006 2005 Operating Surplus $13.16m $12.19m $9.45m Less Amortisation of Development $0.79m $0.57m $0.00m Goodwill Amortisation $0.42m $0.39m $0.00m Interest $2.77m $3.40m $1.11m Overheads $5.16m $4.70m $3.90m $9.14m $9.05m $0.00m Gain on Pioneer $0.00m $2.15m $0.00m Net Proft After T
Slide 12: Cashflow
Cashflow Net Operating Cashflow Orchard work in progress Packaging $12m $10.86m $0.67m $10m $10.19m $8.32m $8m $0.71m $3.40m $6m $4m $4.21m $2m $0m 2006 2007
Slide 13: Key performance indicators
Key performance indicators Trays Packed Trays Equivalents Packed Total Income Total Assets & Total Assets & EBITDA EBITDA ($) Total Income 20m Shareholder Equity Ratio $100m 16m $80m 12m $60m 8m $40m 4m $20m 0m $0m 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Slide 14: Operations Profile
Operations Profile Michael Franks
Slide 15: 2006 - A Challenging Year
2006 - A Challenging Year > Second year completed as a significantly larger and more complex Company > Strong orchard performance > Operational performance affected by high fruit loss »Labour supply »Capacity – Green and Gold »Harvest timing »Integrated systems »Supply chain
Slide 16: Fruit loss
Fruit loss Green fruit loss exceptionally Gold Seeka high Green 14% 13.0% 12% 10.6% 10% 8% 6% 5.1% 3.5% 3.7% 4% 2.3% 1.7% 2% 0% 2002 2003 2004 2005 2006 Industry Seeka
Slide 17: 2006 Packing Schedule
2006 Packing Schedule Too much Gold Plan Green fruit Plan harvested after week 22 Gold Actual Green Actual 14.39m main pack 4.20m UFI Trays 14.86m main pack per Day 3.96m UFI 400,000 300,000 200,000 100,000 0 13 14 15 16 17 18 19 20 21 22 23 24 25 ISO Week
Slide 18: Responses - Seasonal Labour
Responses - Seasonal Labour Fully Staffed Operations > Implemented Labour Strategy »AIP Programme > 200 Malaysians > 40 Solomons »Pre-school facilities »Accommodation
Slide 19: Responses - Capacity Issues Addressed
Responses Capacity Issues Addressed > New Gold Grader at Oakside »High specification machine > Colour grading > Advanced robotics > Variable flow technology »Consolidated Gold inventory management »Increased Green and Gold capacity
Slide 20: Responses - New Systems to Enable Business
Responses New Systems to Enable Business > Operational Systems improvement to support the business »Harvest manager refinement »Inventory management systems »Pest monitoring systems »Grower reporting systems
Slide 21: Responses - Timely Harvest
Responses Timely Harvest > New Harvest and Inventory Management Team »Specific focus on the harvest »Inventory knowledge »Technical support to business and growers » Lab operations to underpin our knowledge base
Slide 22: Pack Schedule
Pack Schedule Timely Harvest on Higher Volumes 20.0m 2006 2007 Trays 17.5m 17.5m trays packed + 3.6m UFI by 10 June 15.8m trays packed + 4.1m UFI by 17 June 15.0m 12.5m 10.0m 7.5m 5.0m 2.5m 0 13 14 15 16 17 18 19 20 21 22 23 24 25 ISO Week
Slide 23: Production Volumes
Production Volumes 2006 2007 2008 Trays packed Class I Forecast Green 15,385,698 15,363,162 16,716,157 Gold 3,230,629 3,769,062 4,232,171 Leased Trays Class I Green 4,326,131 4,518,948 5,577,757 Gold 421,582 879,408 881,375 Long-term Leased Trays Green 60,588 151,611 248,281 Gold 421,029 573,934 766
Slide 24: Forward focus on Excellence
Forward focus on Excellence Goal to lift Earnings per Share > Focus remains on achieving excellence in core business > Maximise production efficiency – Gold > Shed consistency > Supply chain efficiency > Systems enhancements
Slide 25: Core Business
Core Business These factors give confidence > Core business remains strong »Strong asset mix »Kiwifruit enjoying strong world wide demand »Loyal grower base »Good people with a quality focus
Slide 26: Vital Foods
Vital Foods Achieved Significant Milestone > Clinically Proven > Products being launched in NZ and Victoria, Australia > Phloe will be launched
Slide 27: Orchard division
een kip Orchard division
Slide 28: Orchard Operations by Region
Orchard Operations by Region SAPAC Coromandel Katikati 60ha Tauranga 134ha Te Puke 71ha Eastern BoP 63ha 758ha 7ha Trays per Average Reject TOTAL Hectares Trays Hectare Size TZG Rate Green 881.73 7,547,811 8,560 34.42 0.48 16.39% Gold 219.52 2,073,721 9,447 33.95 0.54 29.90%
Slide 29: Historical Orchard Operations
Historical Orchard Operations Hectares Orchard Operations Growing Strongly 1,000 GREEN LEASE GREEN LTL GREEN MGNT GOLD LEASE GOLD LTL GOLD MGNT 900 800 700 600 500 400 300 200 100 - 2002 2003 2004 2005 2006 2007
Slide 30: Seeka Lease Income per Hectare
Seeka Lease Income per Hectare Lease financial performance will improve Hectares Seeka Lease Portfolio 750 $1.5m Hectares Acquired Lease Portfolio Hectares EBITDA EBITDA Seeka Lease Portfolio 500 EBITDA Acquired Lease Portfolio $1.0m 250 $0.5m 0 $0 2003 2004 2005 2006 2007 2008 -$0.5m -$1.0m -$1,.5m
Slide 31: Long Term Leases
een kip Long Term Leases
Slide 32: The Developments
The Developments Warner Bowyer Tony de Farias Bryan Grafas THE ARCHITECTS OF THE LONG TERM LEASES
Slide 33: Cumulative Net Position
Cumulative Net Position 1.0m Trays Packed Cumulative Net Position $0m 0.9m Now Cash Positive -$1m 0.8m -$2m 0.7m -$3m 0.6m -$4m 0.5m -$5m 0.4m -$6m 0.3m -$7m 0.2m -$8m 0.1m -$9m 0.0m -$10m 2004 2005 2006 2007 2008 Forecast
Slide 34: The Industry
een kip The Industry
Slide 35: Supply Chain
Supply Chain Goal is Flexible & Efficient Supply Mechanisms > Strong performance of the marketers is acknowledged and appreciated > Grower focus must be on marketer performance > Supply chain provides opportunity for improvement > Suppliers and growers must take more responsibility for the supply of
Slide 36: Business of Meeting
Business of Meeting Brian Allison
Slide 37: Resolutions: Annual Report and Accounts
Resolutions 1. Annual Report and Accounts »To receive, consider and adopt the Annual Report of Seeka and the Financial Statements for the year ended 31 March 2007 together with the Auditor’s Report thereon
Slide 38: Business of Meeting: Election of Directors
Business of Meeting 2. Election of Directors »To re-elect Mr. Malcolm J Cartwright »To re-elect Mr. Christopher R. Morton »To re-elect Mr. Kim R Ellis
Slide 39: Business of Meeting: Appointment and Remuneration of Auditors
Business of Meeting 3. Appointment and Remuneration of Auditors »To record the re-appointment of PricewaterhouseCoopers as auditor of the Company, and to authorise the Directors to fix the remuneration of the auditor for the coming year.
Slide 40: Business of Meeting: General Business
Business of Meeting 4. General Business »To consider, and if considered fit, to pass, the following ordinary resolution: > That the remuneration of directors be increased from $200,000 to $300,000 per annum payable to all the directors taken together
Slide 41: Business of Meeting: Other General Business
Business of Meeting 5. Other General Business »To consider any other matter that may be properly brought before the Annual Meeting
Slide 42: END
END