Sanford Limited · NZX:SAN
Sanford — FY2014 Earnings Presentation
24 slides from Sanford's earnings presentation, November 2014
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: 2014 Review
2014 Review 3
Slide 4: Year End Result 2014
Year End Result 2014 Year Ended Year Ended 30-Sep 30-Sep 2014 2013 (Restated) Sales Revenue 452,424 462,644 EBITDA 46,675 49,285 Depreciation & amortisation (17,975) (17,428) Impairment (2,260) (4,227) EBIT 26,440 27,631 Net interest (9,607) (8,692) Net currency exchange gains 13,139 10,349 Net gain
Slide 5: 2014 In Review: Highlights and Lowlights
2014 In Review • Highlights – 10% improvement in PAT from 2013 – Acquisition of GNZ – New organisation structure implemented – Mussel pricing and harvest volume – aquaculture – Final dividend maintained at 14 cents per share and fully imputed – payable 10 December 2014. • Lowlights – Challenging ski
Slide 6: 2013 – 2014 EBITDA Bridge
2013 – 2014 EBITDA Bridge • Fishing – weak demand and a sharp decline in pelagic prices led to a significant downward shift in earnings. One less charter vessel than prior year plus the sale of a purse seiner in Q3 impacted catch rates. • Aquaculture Mussels – improved mussel prices and increase in
Slide 7: Global Outlook
Global Outlook 7
Slide 8: Global Fisheries Production
Global Fisheries Production Capture and Aquaculture Million MT 157 158 148 143 146 134 136 137 141 128 127 120 120 122 126 125 114 Source: FAO Fishery Statistics 8
Slide 9: Global Fisheries Production
Global Fisheries Production Share of Capture and Aquaculture Million MT 157 158 148 143 146 134 136 137 141 128 127 120 120 122 126 125 114 Source: FAO Fishery Statistics 9
Slide 10: Global Groundfish Summary
Global Groundfish Summary Major Species (Cod, Haddock, Hake, Hoki, Pollock etc.) Million MT Source: until 2012 = FAO; 13 - 15 = PANELISTS / OWN ESTIMATES Courtesy: Groundfish Forum 10
Slide 11: World Aquaculture 1994 - 2012
World Aquaculture 1994 - 2012 By Category (including Seaweed) Million MT 90 83 77 72 64 68 61 57 51 54 49 46 42 44 39 34 36 31 28 Source: FAO Fishery Statistics 11
Slide 12: Demand for seafood to come from emerging economies
Demand for seafood to come from emerging economies Asia – Pacific stands out as the region that holds the greatest potential for increases in seafood consumption and an appreciation for quality and provenance
Slide 13: Seafood holds great potential
Seafood holds great potential • Only 45% of NZer’s eat fish once a week, local market too small compared to other islands • Over 80% of our product is exported. Key destinations are Australia, North America, Europe, Korea, China and Japan • Global seafood consumption is increasing • Key drivers for
Slide 14: Sanford Looking Forward
Sanford Looking Forward 14
Slide 15: From a Strong History…
From a Strong History… • Owns ¼ of New Zealand’s fishing quota • Farms a large share of New Zealand's Greenshell mussels and King salmon • Mainly a commodity producer - Sanford’s customers are wholesalers, traders and processors • 100+ years on NZX Mr and Mrs Albert Sanford established Sanford in 18
Slide 16: Diversified Species Portfolio
Diversified Species Portfolio 16
Slide 17: Diversified Markets
Diversified Markets Sales by Geographical Location of Customers YTD September 2014 (2013) NZ$ Australia 16%(17) New Zealand 18%(16) Europe 15%(11) Pacific 2%(2) Middle East North America 2%(2) 17%(15) Africa 3%(4) Other Asia Japan 6%(9) 9710) China/Hong 4%(6) Kong 7%(7)
Slide 18: Vision and Mission
VISION • To be the Best Seafood Company in the World MISSION • Make Sanford the NZ Company of Choice – Sustainably provide innovative, quality seafood and marine products – Delivering value to consumers, customers, employees and shareholders – Social licence to operate 18
Slide 19: Strategic Pillars
Strategic Pillars • Consistently High Quality Products – PSH – Operations Excellence – Quality Control – Fresh is Best – Provenance • Culture of Innovation and Customer Service – R & D Investment – Supply Chain Management – Beyond Commodity – Understand Consumer needs Scope – Develop relevant brand
Slide 20: Enablers: People, Process, Systems
Enablers • People – Right Structure – Right People – Engagement – Performance Management • Process – Internal Alignment – Supply Chain Process – S&OP – Internal Decision Making Process – Strategic Planning and Budgeting • Systems – Stabilise and Fix Foundations – Decision Support Systems • Right Inf
Slide 21: Focus on 2015
Focus on 2015 • TACC increase in hoki and orange roughy, two key deep water species from 1 October 2014 • Strong global demand will support firm prices • Skipjack tuna and blue mackerel pricing will remain under pressure • Improved exchange rate positions from 2014 and well hedged forward • Embed ne
Slide 22: New Structure to Focus the Business
New Structure to Focus the Business CEO Group Quality Group Sales CFO COO CPO GM Innovation GM Brands Manager Manager Finance Processing Human Resource Compliance New Products New Branding Customer Relationship Treasury Supply Chain Sustainability Quality New Processes Site Development Sales IT Fish
Slide 23: Sanford is moving beyond commodity
Sanford is moving beyond commodity • Conserving freshness brings the highest value • New harvesting technology • Finding our ‘New Zealand’ point of difference • Creating high value products for niche markets • We believe our customers will pay for quality, provenance, sustainability, service
Slide 24: Sanford Limited
Ss SANFORD LIMITED