Seafarms Group Limited · ASX:SFG
Seafarms — Shareholder Meeting (July 2018)
34 slides from Seafarms's shareholder meeting presentation, Jul 16, 2018
Slide 1: ASX announcement: EGM address to shareholders
Our Ref: SFG ASX Announce EGM Presentation 2018 (562) For personal use only 16 July 2018 ANNOUNCEMENT 562 Company Announcements Office Australian Securities Exchange Level 6 By ASX Online 20 Bridge Street Number of pages: 34 SYDNEY NSW 2000 (including this page) Dear Sir RE: EXTRAORDINARY GENERAL ME
Slide 2: About Seafarms Group
About Seafarms Group Seafarms Group Limited (ASX: SFG) is an ASX listed holding company with separate subsidiary businesses operating in nonconventional commodities: aquaculture and carbon. Seafarms Operations Pty Ltd operates aquaculture assets and CO2 Australia Limited the carbon and environmental
Slide 3: Extraordinary General Meeting July 2018
For personal use only Extraordinary General Meeting July 2018 Transformation of Australia’s largest aquaculture shrimp producer into a global player. Seafarms Group Limited 1
Slide 4: Disclaimer
Disclaimer For personal use only This presentation is provided for information purposes only. The information in this presentation is in a summary form, does not propose to be complete and is not intended to be relied upon as advice to investors or other persons. The information contained in this pr
Slide 5: Brief Overview of Seafarms Group
For personal use only Brief Overview of Seafarms Group 3
Slide 6: Overview of Seafarms Group Operations
Overview of Seafarms Group Operations For personal use only Seafarms Group Limited (SFG) is currently Australia’s largest producer of farmed prawns, underlining its operational aquaculture expertise. SFG is an ASX listed Australian agri‐food Crystal Bay Tiger Prawns company, with a current market ca
Slide 7: Overview of Seafarms Group Operations: Project Sea Dragon
Overview of Seafarms Group Operations For personal use only Project Sea Dragon (PSD) PSD Operations and Breeding Facilities Seafarms continues to rapidly advance its world class PSD. PSD represents an industrial scale, fully vertically integrated, sustainable. land‐based shrimp/prawn aquaculture pro
Slide 8: The year of the Dragon – Current Status of Project Sea Dragon
The year of the Dragon – Brief Overview. Current Status of Project Sea Dragon For personal use only Project Sea Dragon is a transformative Project for not only Seafarms Group but also Northern Australia and Australia’s prawn aquaculture industry. PSD enjoys strong support from Native Title Holders,
Slide 9: Project advancing to final investment decision (continued)
The Project is rapidly advancing to final investment decision by making massive strides by (continued): For personal use only Agreeing terms with a major Asian global seafood partner ‐ Nissui, for a14.99% equity stake in Seafarms coupled importantly, with a significant export off‐take and developmen
Slide 10: New Development Timetable – PSD
New Development Timetable ‐ PDS For personal use only Development timetable has slipped due to delays finalising the Nissui Agreement, securing Legune Station with a major agricultural investor and the associated long term lease arrangement with SFG for PSD. These factors in turn have delayed the fi
Slide 11: Queensland Operations Update
For personal use only Queensland Operations Update 9
Slide 12: Current Operations
Current Operations For personal use only Hatchery (A) Innisfail Domestication program R&D Project with ARC Research Hub for Advanced shrimp Breeding Farms Cardwell (B) 128 ha of ponds A B Processing plant Maintenance division Farm administration Ingham (C) 32 ha of ponds Founder Stock Centre Exmouth
Slide 13: Latest Black Tiger Single Crop Results
Latest Black Tiger Single Crop Results For personal use only Farm 3 Crop has been on target Farm 3 Domesticated and NT broodstock Harvest 316 tonnes Single crop (Nov – April) Crop Yield 10.4 tonnes/ha No disease events ABW 32.2 grams AWG 1.41 grams/week Significant production outcomes FCR 1.67 Numbe
Slide 14: Biosecurity Improvements
Biosecurity Improvements For personal use only Broodstock only from domesticated stock and Northern Territory No East Coast stock used All broodstock screened to exclude specific pathogens All PL’s screened prior to stocking to exclude specific pathogens Improved production systems Water settlement
Slide 15: Research and Development: Domestication Breeding Program
For personal use only Research and Development Domestication Breeding Program 13
Slide 16: Breeding Program
Breeding Program For personal use only Delivering significant short and long term financial and bio‐security benefits to existing Queensland and PSD operations. Seafarms establishing a world leading proprietary owned black tiger genetic/selective breeding program Already well advanced with co‐operat
Slide 17: Breeding Program Outcomes
Breeding Program Outcomes For personal use only Founder Stock Facility ‐ Exmouth 1st Generation Specific Pathogen Free (SPF) prawns at Exmouth Significant milestone for Project Sea Dragon Seafarms has achieved several family lines of second generation (G2) specific pathogen free animals Higher preva
Slide 18: Research & Development
Research & Development For personal use only Farm raised broodstock, reached broodstock size in 6 months and were collected from Farm 3 (April ’18) to be conditioned in the new maturation sheds. Completed and commissioned the broodstock facility at FFP. Allows for the on growing and maturation of 2,
Slide 19: Summary of latest ARC Research Hub Outputs
Summary of latest ARC Research Hub Outputs For personal use only 17
Slide 20: PSD – Project ready to go
For personal use only PSD – Project ready to go At full production, PSD will produce up to 150,000 tonnes per annum of black tiger shrimp, in 10,000 hectares of production ponds. Full production to be achieved over several incremental stages. 18
Slide 21: PSD Project Partner – Global seafood giant Nissui
PSD Project Partner – Global seafood giant ‐ Nissui For personal use only Extensive agreement reached with Asian global seafood giant, Nippon Suisan Kaisha (Nissui), after substantial due diligence. Briefly, the agreement includes: A Nissui board representative joining the SFG board A $24.99m equity
Slide 22: PSD Project Partner Nissui Secured
PSD Project Partner ‐ Nissui Secured For personal use only Proceeds from the equity issue – will assist in the development of PSD Nissui Brief Overview Japanese seafood giant formed in 1911. Market capitalisation of US$1.7B, with annual sales over US$6.4B. Employs 9,000 people globally (on a consoli
Slide 23: Governments remain supportive – infrastructure construction commenced
Governments remain supportive – construction of government infrastructure commitments commenced For personal use only Over $100m of road upgrades recently tendered and/or commenced construction. Early works on Keep River Road have commenced Tenders are out NT Government has commenced procurement on
Slide 24: Financing/JV discussions
Financing/JV discussions For personal use only Growing confidence levels in the PSD feasibility study. Program of vendor due diligence now completed. Detailed independent reviews of the PSD feasibility were undertaken by: Engineering – Breeding Program Facilities (Aurecon) Engineering – Grow‐out (GH
Slide 25: PSD yield expectations confirmed at Farm 3
PSD yield expectations confirmed at Farm 3 For personal use only Annualised Yield (t/ha) ‐ Farm 3 v PSD 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 2015 2016 2017 2018 PSD Farm 3, 4 year Average Farm 3 performance provides increased confidence in the feasibility study assumptions around key operating paramet
Slide 26: PSD – De-risked Construction Strategy
PSD ‐ De‐risked Construction Strategy For personal use only Seafarms continues to de‐risk project through final design construction and procurement strategies First construction elements Expand the Exmouth facility to enable planned and expected increase of the number of SPF families being produced
Slide 27: De-risked Construction Strategy
De‐risked Construction Strategy For personal use only Engineering team continues to refine design within approval envelopes to reduce capital Greater use of locally standard elements (e.g. sheds) More accurate bathymetry at Bynoe Harbour has revealed easier and cheaper water intake Fewer simultaneou
Slide 28: De-risked Construction Strategy
De‐risked Construction Strategy For personal use only Engineering team continues to refine design within approval envelopes to reduce capital Greater use of locally standard elements (e.g. sheds) More accurate bathymetry at Bynoe Harbour has revealed easier and cheaper water intake Fewer simultaneou
Slide 29: Grow Out Centre Construction Plan
Grow Out Centre Construction Plan For personal use only Stepped approach provides earlier employment of Operations Personnel Seawater Intake Pumps (sized for full Stage 1) Structure Channel remains 100m wide but lower initial wall height of 2.5m Settlement pond remains 750m wide but lower wall initi
Slide 30: Construction Packages
Construction Packages For personal use only Seafarms is putting together work packages Seafarms continues to work with the Industry Capability Network http://www.icn.org.au/nt_home Initial packages Rock crushing and stockpile (150,000 m3) Upgrade road for construction (47 km) Hardstand areas for lay
Slide 31: Key NT Approvals Schedule – June 2018
Key NT Approvals Schedule ‐ June 2018 For personal use only # Approval Relevant Legislation CBC & BMC HAC Grow‐out Point Ceylon Gunn Point Legune 1 Aquaculture Licence DPIR Fisheries Act 2 Surface Water Extraction (SWE) Licence Water Act, Marine Act (for DENR infrastructure to be located in n.a. n
Slide 32: PSD Employment & Training
PSD Employment & Training For personal use only Graduate program and development continues. 16 graduates employed with a 70% retention rate Input into the National Training Standards provided Ongoing development of internal processes and training systems 30
Slide 33: Seafarms Group – CO2 Australia Limited
For personal use only Seafarms Group – CO2 Australia Limited 31
Slide 34: CO2 Australia Limited
CO2 Australia Limited For personal use only CO2 provides carbon and environmental services 100% owned subsidiary As part of Nissui Agreement – CO2 Australia will be demerged from Seafarms Group. Under the proposed demerger, SFG will undertake an equal capital reduction through the pro‐rata in specie