Seafarms Group Limited · ASX:SFG
Seafarms — H1 FY2020 Earnings Presentation
36 slides from Seafarms's earnings presentation, Feb 29, 2020
Slide 1: Seafarms Group achieves A$21.9m revenue and progresses Project Sea Dragon in H1 FY20
ASX Announcement | 28 February 2020 Seafarms Group Limited (ASX:SFG) (ASX Announcement 642) Seafarms Group achieves A$21.9m revenue and progresses Project Sea Dragon in H1 FY20 Investment Highlights Achieved revenue of A$21.9m (up 24.4% on H1 FY19) while supporting continued investment in Project Se
Slide 2: Progress at shovel ready PSD continues
Seafarms will supply 15% of its Queensland production to Nissui, which is a strategic investor in Seafarms. Once PSD is operational it will supply 10-20% of its production to Nissui. Nissui invested A$24.99 million in Seafarms in 2018 and invested a further A$2.998 million in 2019. Progress at shove
Slide 3: For further information, please contact
For further information, please contact: Seafarms Group Mr Harley Whitcombe Company Secretary P: (08) 9216 5200 Media Enquiries Investor Enquiries True North Strategic Communication The Capital Network Bridget McCue Julia Maguire P: +61 447 298 752 P: +61 419 815 386 E: bridget@truenorthcomm.com.au
Slide 4: Australia's largest prawn producer: Transforming into a high quality, low-cost global producer
Seafarms Group Limited (ASX:SFG) – Overview & Market Update – Six months to 31 December 2019 Australia's largest prawn producer: Transforming into a high quality, low-cost global producer 1
Slide 5: Legal disclaimer
Legal disclaimer 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 presentation was p
Slide 6: Seafarms Group Limited (ASX:SFG)
Seafarms Group Limited (ASX:SFG) Australia's largest prawn producer: Transforming into a high quality, low-cost global producer Seafarms Group Limited (ASX:SFG) ”Seafarms” or “the Company” is a sustainable aquaculture company, producing the premium Crystal Bay® Prawns and developing the Project Sea
Slide 7: Contents
Contents Part 1 Overview Corporate overview Queensland operations Project Sea Dragon FY20 1H financial highlights FY20 1H operational overview Part 2 Project Sea Dragon Overview Project Status Government Support Advancing towards financial close Seafarms operations in Queensland 4
Slide 8: Seafarms' corporate overview
Seafarms’ corporate overview Seafarms has a market capitalisation in the order of A$120 million and is currently Australia’s largest producer of farmed prawns, with significant operational aquaculture expertise and a demonstrated track record of growth and innovation. ASX Listing Code SFG Seafarms e
Slide 9: Existing operations: Queensland
Existing operations: Queensland Seafarms existing Queensland operations are Australia’s largest producer of farmed prawns. The Queensland operations produce premium Black Tiger and Banana prawns marketed under the well-recognised Crystal Bay® Prawn brand. Importantly, the vertically integrated Queen
Slide 10: Project Sea Dragon (PSD): Northern Territory
Project Sea Dragon (PSD): Northern Territory PSD is a world-class industrial scale Tier 1 project with an operating life of 90 years which will be developed and constructed in stages with production ponds located at Legune Station in the Northern Territory. Development has already commenced. PSD wil
Slide 11: Seafarms has successfully de-risked PSD
Seafarms has successfully de-risked PSD Sovereign and regulatory Industry sponsorship & partnership • Major Project Status with Australian, WA and NT Government • Secured industry partner investments totalling approximately • Project Development Agreement (State Agreement) with NT A$110M (Nissui and
Slide 12: Recent significant milestones and major achievements
Recent significant milestones and major achievements Significant progress has been achieved over the last twelve months and more recently in a number of Project Sea Dragon areas including: • Registration of the Legune Indigenous Land Use Agreement (ILUA) by the National Native Title Tribunal • Secur
Slide 13: FY20 Financial overview for six months ending December 19
FY20 Financial overview for six months ending 31 December 2019 Seafarms Group achieved revenue of $21.5m million while supporting continued investment into Project Sea Dragon 10
Slide 14: Financial overview for the six months ending 31 December 2019
Financial overview for the six months ending 31 December 2019 For the six month reporting period ending 31 December 2019, Seafarms has reported revenue of approximately $21.5 million (up 20.1%) and a loss in the order of $12.2 million (down 8.1%). These results reflect the cash contributions of Quee
Slide 15: First Half FY20 Operational Overview
First Half FY20 New settlement ponds at Cardwell Operational Overview Overview • Operating revenue for the 6 months ending 31 December 2019 was $21.5 million (up 25% on 1H FY19) representing improved sales of both fresh and frozen product. • Black Tiger Prawn production for the 6 month period ending
Slide 16: Australia's Most Recognised Prawn Brand
Australia’s Most Recognised Prawn Brand SFG has established a premium and well recognised branded product under which to supply retail customers The Crystal Bay Prawns brand has been sold in Australia since 1988 Production mix has shifted towards BTPs, which now constitute the majority of sales volu
Slide 17: Nissui / Crystal Bay Prawn export packaging
Nissui / Crystal Bay® Prawn export packaging Seafarms completed its first delivery of Black Tiger Prawns to Japanese seafood giant Nissui in October 2019. The delivery is under an offtake agreement announced in May 2018. Seafarms will supply 15% of its Queensland production to Nissui, which is a str
Slide 18: Project Sea Dragon (PSD) Overview
Project Sea Dragon (PSD) Overview Seafarms’ proposed, large-scale, integrated, land-based prawn aquaculture project. Currently being developed in northern Australia. 15
Slide 19: Full Vertical Integration
Full Vertical Integration Complete end to end control of operations will allow SFG to ensure a sustainable business with absolute biosecurity and process control Key Process Steps in PSD Prawn Aquaculture 1 2 3 4 5 Eggs, Genetics Hatching / Sales, marketing Farming Processing & Broodstock juveniles
Slide 20: Limited Number of Suitable Sites Globally
Limited Number of Suitable Sites Globally The ideal site for industrial scale prawn aquaculture has a number of key required characteristics, which significantly constrain the number of suitable sites globally Key Required Characteristics Suitable Prawn Farming Regions Globally 1 Geographic remotene
Slide 21: PSD – Step 1 of Stage 1
PSD – Step 1 of Stage 1 The first step of PSD (S1S1) will involve the construction of 396 Ha of ponds producing 6,000 to 7,000 tonnes p.a. of high quality large Black Tiger Prawns while providing infrastructure for future stages S1S1 of PSD will comprise: Stage 1 Production System (All Steps 1 -3) •
Slide 22: PSD – Step 1 of Stage 1
PSD – Step 1 of Stage 1 Step 1 of Stage 1 of PSD will involve the construction of 36 Nursery Ponds and 36 Large Ponds totalling 396 Ha as well as significant amounts of supporting infrastructure for full Stage 1 and subsequent stages Step 1 of Stage 1 is Key Stage 1 Project Components • Expansion of
Slide 23: Industry-Leading Biosecurity Control
Industry-Leading Biosecurity Control PSD’s strategic choice of locations is one aspect of a holistic approach to make PSD one of the most biosecure aquaculture projects in the world Industry-Leading Biosecurity Standards and Control Natural and Designed Specific Pathogen Free Project Design Consider
Slide 24: PSD: Queensland operations comparison
PSD: Queensland operations comparison Table below highlights a broad comparison between PSD and Queensland operations. It should be noted that PSD yield assumption is made considering Queensland operational results, particularly Farm 3 which more resembles PSD. PSD Queensland Black tiger prawns Bana
Slide 25: PSD: Seafarms Farm 3
PSD: Seafarms Farm 3 A Significant Upgrade on Farms 1 and 2 As highlighted below, from a production perspective Farm 3 more closely simulates PSD farms. Farm 1/2 Farm 3 PSD First new development in Age of Assets +30 years +19 years Australia since circa 2000 Produce own Post Larvae (PLs) Settl
Slide 26: Extensive Design Work Has Been Completed
Extensive Design Work Has Been Completed Through leveraging the knowledge of existing operations in QLD and the completion of bespoke design studies including a detailed feasibility study, SFG has de-risked PSD project development Commentary Significant Research and Resources Invested So Far All req
Slide 27: PSD – Project Status
PSD – Project Status SFG has received all regulatory approvals for Stage 1 (1,120 ha’s) and has also entered into a Project Development Agreement with the Northern Territory Government and an Indigenous Land Use Agreement with the Traditional Owners for the whole project. Received Federal Government
Slide 28: Project Status – FSC at Exmouth
Project Status – FSC at Exmouth The building works and fit-out for building 1 at Exmouth is FSC 1 fitted out and commissioning in progress complete, commissioning has commenced; Founder Stock Centre Buildings 2 & 3 buildings erected. Water treatment systems further developed and upgraded with instal
Slide 29: Project Status – BMC at Bynoe Harbour
Project Status – BMC at Bynoe Harbour Local contractors were engaged to perform earthworks and FSC Earthworks for the1processing fitted out and area commissioning finished incompaction to final levels & progress fencing for the site • Earthwork completed including: - Access roads; - Inlet and outlet
Slide 30: Project Status – Legune Grow Out Centre
Project Status – Legune Grow Out Centre Early works on site and on-going design for critical path activities continues to de-risk construction FSC 1 fitted out and commissioning in progress Stock piles of quarried material Various sizes of rock have been quarried graded and stockpiled to ensure mate
Slide 31: Project Status – Processing Plant
Project Status – Processing Plant Design of the Processing Plant has commenced – site plan Development and works approvals granted. completed. Ground water licence granted. Processing equipment specification for the process plant is Deposited Plan survey lodged. being refined based on feed-back of e
Slide 32: Key Sources of Government Support for PSD
Key Sources of Government Support for PSD Strong Federal and State / Territory Government support for PSD will help facilitate project development and delivery of supporting infrastructure Component Benefit for PSD Description 1 Major Project Status Priority and streamlined access to individual PSD
Slide 33: Government Support for PSD
Government Support for PSD The Federal Government renewed PSD Major Project Status in March 2019, Minister Andrews stating that “the Morrison Government recognises the importance of this Project to northern Australia and to strengthen Australia’s economy”; The project also has Major Project Status w
Slide 34: Project Delivery Strategy
Project Delivery Strategy The project delivery strategy of PSD as a modular project underpins its scalability for future stages Project Delivery Strategy Contract and Procurement Plan Nine stages to complete 10,000 ha ponds with an annual output The key strategies proposed for the Execution Phase in
Slide 35: Project Sea Dragon: Advancing to funding
Project Sea Dragon: Advancing to funding Further offtake agreement secured with Primstar, another important milestone to securing financing of PSD. All major premium markets now for PSD product secured, Japan, Europe and Australia. Seafarms continues to work closely with its Australian marketing par
Slide 36: Seafarms Group Limited (ASX:SFG)
Seafarms Group Limited (ASX:SFG) Media Enquiries T: +61 8 9216 5200 True North Strategic Communication E: info@seafarms.com.au Bridget McCue W: www.seafarms.com.au P: +61 447 298 752 E: bridget@truenorthcomm.com.au Level 11, 225 St Georges Terrace Perth WA 6000 Investor Enquiries The Capital Network