Oceana Group Limited · JSE:OCE
Oceana — Investor Presentation (November 2017)
71 slides from Oceana's investor presentation, November 2017
Slide 1: Investor Presentation Year Ended 30 September 2017
INVESTOR PRESENTATION YEAR ENDED 30 SEPTEMBER 2017
Slide 2: Legal Disclaimer and Basis of Preparation
LEGAL DISCLAIMER AND BASIS OF PREPARATION • For the purposes of this notice, the presentation (the “Presentation”) shall mean and include the slides that follow, the oral presentation of the slides by Oceana Group Limited (the “Company”) and/or its advisers, any question-and-answer session that foll
Slide 3: Agenda
AGENDA 01 GROUP OVERVIEW 02 FINANCIAL & OPERATING PERFORMANCE 03 STRATEGIC OVERVIEW & OUTLOOK 04 GUIDANCE 3
Slide 4: Group Overview
GROUP OVERVIEW 9 4 8 3 5 steel refrigerated steel refrigerated vessels, wholly canneries fishmeal plants seawater vessels seawater vessels owned, co-owned or in South Africa in Namibia joint ventures 11 1 12 fishing vessels production facility spotter planes 1 2 5 1 2 horse mackerel horse mackerel h
Slide 5: Group Overview
GROUP OVERVIEW NATURAL AND TRANSFORMATION / MANUFACTURED CAPITAL HUMAN CAPITAL LOCALISATION • 440,000 tons of fish landed • R1bn in salaries, R22m on • Level 2 B-BBEE skills development • 89% SASSI green listed • Most empowered fishing • 2 million additional working company on JSE • 270,000 tons of
Slide 6: 2017 Performance Summary
2017 PERFORMANCE SUMMARY HEADWINDS • FMO pricing • Exchange rate • SA pilchard landings • Volumes – canned fish, US oil yield and hake vessel utilisation • CCS occupancy TAILWINDS • Daybrook, SA industrial fish and horse mackerel landings • Angola fully operational • Improved debt and cash managemen
Slide 7: Agenda
AGENDA 01 GROUP OVERVIEW 02 FINANCIAL & OPERATING PERFORMANCE 03 STRATEGIC OVERVIEW & OUTLOOK 04 GUIDANCE 7
Slide 8: Group Overview: Increased Diversification Over the Years
GROUP OVERVIEW INCREASED DIVERSIFICATION OVER THE YEARS REVENUE BY GEOGRAPHY REVENUE BY SEGMENT 7,000 7,000 6,000 6,000 42% 5,000 53% 5,000 4,000 4,000 52% 3,000 69% 3,000 35% 17% 2,000 2,000 7% 11% 7% 25% 9% 1,000 5% 9% 1,000 7% 5% 18% 6% 7% 7% - 4% - 2013 2017 2013 2017 Other Africa Far East Lobst
Slide 9: 5 Year Performance
5 YEAR PERFORMANCE 5 YEAR REVENUE* 4,542 3,667 3,478 2,129 2,548 3,465 3,141 2,348 2,222 2,437 2013 2014 2015 2016 2017 First half Second half 5 YEAR HEADLINE EARNINGS* 548 308 385 249 231 242 246 221 265 226 2013 2014 2015 2016 2017 First half Second half *Excluding Lamberts Bay Foods effect 9
Slide 10: Exogenous Factors
EXOGENOUS FACTORS ZAR STRENGTH AVERAGE FEC RATE 17.00 17 16.00 16 15.00 15 14.00 14 13.00 13 12.00 12 Dec Mar Oct Jun Sep Oct-15 Mar-16 Sep-16 Mar-17 Sep-17 2016 2017 GLOBAL FISHMEAL PRICE 1,750 1,500 1,250 1,000 Oct Jan Feb Jun Sep Dec Nov May Aug Mar Apr Jul 2016 2017 10
Slide 11: Income Statement - Group
INCOME STATEMENT - GROUP SEPTEMBER Var SEPTEMBER R'000 2017 % 2016* Revenue 6 807 927 -15% 8 006 760 Cost of sales 4 360 013 -10% 4 868 146 Gross profit 2 447 914 -22% 3 138 614 GP margin 36% 39% Operating profit before forex loss/gain and share-based payments 1 063 886 -35% 1 632 511 Foreign exchan
Slide 12: Revenue - Group
REVENUE - GROUP 317 8,000 403 346 7,000 123 24 34 6,000 5,000 4,000 8,007 7,690 6,808 3,000 2,000 1,000 - September Exchange rate Comparative Canned fish Fishmeal and Horse Lobster and Commercial September 2016 business and fishmeal fish oil (USA) mackerel and squid Cold Storage 2017 (Africa) hake D
Slide 13: Income Statement - Africa
INCOME STATEMENT – AFRICA SEPTEMBER Var SEPTEMBER R'000 2017 % 2016* Revenue 5 369 322 -12% 6 075 837 Cost of sales 3 487 789 -8% 3 809 844 Gross profit 1 881 533 -17% 2 265 993 GP margin 35% 37% Operating profit before forex loss/gain and share-based payments 673 656 -30% 964 359 Foreign exchange (
Slide 14: Revenue - Africa
REVENUE - AFRICA 7,000 84 50 596 339 6,000 313 161 5,000 4,000 6,076 3,000 5,340 5,369 2,000 1,000 0 September Price Volume Exchange September Price Volume Exchange September 2015 effect rate 2016 effect rate 2017 Decrease Increase 14
Slide 15: Income Statement - USA
INCOME STATEMENT – USA SEPTEMBER Var SEPTEMBER $'000 2017 % 2016 Revenue 107 203 -18% 130 349 Cost of sales 65 097 -9% 71 339 Gross profit 42 106 -29% 59 010 GP margin 39% 45% Operating profit 29 128 -36% 45 361 Operating profit margin 27% 35% 15
Slide 16: Revenue - USA
REVENUE - USA 140 4 120 11 8 100 80 130 60 107 40 20 0 September 2016 Fishmeal volumes Fish oil volumes Price September 2017 Decrease 16
Slide 17: Operating Profit
OPERATING PROFIT REVENUE DRIVERS COST DRIVERS SEPTEMBER SEPTEMBER R’000 2016 VOLUMES PRICE FOREX TOTAL COSTS 2017 Total 1 705 234 -9.1% -2.5% -18.3% -8.0% 1 002 946 Canned fish (Africa) -16.1% 5.4% -19.4% -1.6% 582 454 275 305 Fishmeal (Africa) 11.3% -13.6% -38.6% -0.4% Fishmeal & fish oil 668 152 -
Slide 18: Canned Fish and Fishmeal
CANNED FISH AND FISHMEAL REVENUE DRIVERS COST DRIVERS SEPTEMBER SEPTEMBER R’000 2016 VOLUMES PRICE FOREX TOTAL COSTS 2017 Canned fish (Africa) -16.1% 5.4% -19.4% -1.6% 582 454 275 305 Fishmeal (Africa) 11.3% -13.6% -38.6% -0.4% TOTAL CANNED FISH SALES (CTNS’000) TOTAL CANNED FISH SALES – NORMALISED
Slide 19: Canned Fish and Fishmeal
CANNED FISH AND FISHMEAL REVENUE DRIVERS COST DRIVERS SEPTEMBER SEPTEMBER R’000 2016 VOLUMES PRICE FOREX TOTAL COSTS 2017 Canned fish (Africa) -16.1% 5.4% -19.4% -1.6% 582 454 275 305 Fishmeal (Africa) 11.3% -13.6% -38.6% -0.4% SA CANNED FISH SALES (CTNS’000) 1,600 1,400 1,200 H2: 4,265 ctns (2016:
Slide 20: Canned Fish and Fishmeal
CANNED FISH AND FISHMEAL REVENUE DRIVERS COST DRIVERS SEPTEMBER SEPTEMBER R’000 2016 VOLUMES PRICE FOREX TOTAL COSTS 2017 Canned fish (Africa) -16.1% 5.4% -19.4% -1.6% 582 454 275 305 Fishmeal (Africa) 11.3% -13.6% -38.6% -0.4% 16.50 EXCHANGE RATE 15.50 14.50 13.50 12.50 Oct-15 Nov-15 Dec-15 Jan-16
Slide 21: Canned Fish and Fishmeal
CANNED FISH AND FISHMEAL REVENUE DRIVERS COST DRIVERS SEPTEMBER SEPTEMBER R’000 2016 VOLUMES PRICE FOREX TOTAL COSTS 2017 Canned fish (Africa) -16.1% 5.4% -19.4% -1.6% 582 454 275 305 Fishmeal (Africa) 11.3% -13.6% -38.6% -0.4% INDUSTRIAL FISH LANDINGS (TONS) 200,000 180,723 180,000 SEP 15 SEP 16 SE
Slide 22: Canned Fish and Fishmeal
CANNED FISH AND FISHMEAL REVENUE DRIVERS COST DRIVERS SEPTEMBER SEPTEMBER R’000 2016 VOLUMES PRICE FOREX TOTAL COSTS 2017 Canned fish (Africa) -16.1% 5.4% -19.4% -1.6% 582 454 275 305 Fishmeal (Africa) 11.3% -13.6% -38.6% -0.4% FISHMEAL AND FISH OIL PRICE COMPARISON (USD/TON) 2,000 1,900 1,800 1,700
Slide 23: Daybrook
DAYBROOK REVENUE DRIVERS COST DRIVERS SEPTEMBER SEPTEMBER R’000 2016 VOLUMES PRICE FOREX TOTAL COSTS 2017 Fishmeal & fish oil 668 152 -10.9% -7.7% -5.8% -8.1% 390 230 (USA) US FISH LANDINGS FISH LANDINGS PER SEASON 800,000 750,000 735,100 700,000 686,145 700,000 600,000 650,460 650,000 500,000 400,0
Slide 24: Daybrook
DAYBROOK REVENUE DRIVERS COST DRIVERS SEPTEMBER SEPTEMBER R’000 2016 VOLUMES PRICE FOREX TOTAL COSTS 2017 Fishmeal & fish oil 668 152 -10.9% -7.7% -5.8% -8.1% 390 230 (USA) AVERAGE FISH LANDINGS PER FISHING DAY 2015 2016 2017 6,500 SEASON SEASON SEASON 5,928 6,000 Total days 142 142 142 5,500 in sea
Slide 25: Daybrook
DAYBROOK REVENUE DRIVERS COST DRIVERS SEPTEMBER SEPTEMBER R’000 2016 VOLUMES PRICE FOREX TOTAL COSTS 2017 Fishmeal & fish oil 668 152 -10.9% -7.7% -5.8% -8.1% 390 230 (USA) US SALES (TONS) 10 YEAR US OIL YIELD 90,000 18% 80,000 16% 70,000 14% 24,367 60,000 18,301 12% Ave 11.25% 50,000 10% 40,000 8%
Slide 26: Daybrook
DAYBROOK REVENUE DRIVERS COST DRIVERS SEPTEMBER SEPTEMBER R’000 2016 VOLUMES PRICE FOREX TOTAL COSTS 2017 Fishmeal & fish oil 668 152 -10.9% -7.7% -5.8% -8.1% 390 230 (USA) FISHMEAL AND FISH OIL PRICE COMPARISON (USD/TON) 2,000 1,750 1,500 1,250 Oct-15 Feb-16 Mar-16 Aug-16 Jul-16 Sep-16 Oct-16 Feb-1
Slide 27: Horse Mackerel and Hake
HORSE MACKEREL AND HAKE REVENUE DRIVERS COST DRIVERS SEPTEMBER SEPTEMBER R’000 2016 VOLUMES PRICE FOREX TOTAL COSTS 2017 Horse mackerel -17.0% 12.9% -40.3% -11.5% 286 102 199 981 Hake -8.9% 7.6% -34.4% -6.8% DESERT DIAMOND LANDINGS NAMIBIA LANDINGS CATCH RATE CATCH RATE 4% 8% Feb-16 Mar-16 Apr-16 Se
Slide 28: Horse Mackerel and Hake
HORSE MACKEREL AND HAKE REVENUE DRIVERS COST DRIVERS SEPTEMBER SEPTEMBER R’000 2016 VOLUMES PRICE FOREX TOTAL COSTS 2017 Horse mackerel -17.0% 12.9% -40.3% -11.5% 286 102 199 981 Hake -8.9% 7.6% -34.4% -6.8% HORSE MACKEREL AVERAGE EX HATCH PRICES (USD/TON) 1,200 1,100 1,060 1,000 960 900 860 850 895
Slide 29: Horse Mackerel and Hake
HORSE MACKEREL AND HAKE REVENUE DRIVERS COST DRIVERS SEPTEMBER SEPTEMBER R’000 2016 VOLUMES PRICE FOREX TOTAL COSTS 2017 Horse mackerel -17.0% 12.9% -40.3% -11.5% 286 102 199 981 Hake -8.9% 7.6% -34.4% -6.8% HORSE MACKEREL QUOTA USAGE & USAGE FEE (TONS) 90,000 0% 0% 80,000 -3% -5% 70,000 60,000 -10%
Slide 30: Horse Mackerel and Hake
HORSE MACKEREL AND HAKE REVENUE DRIVERS COST DRIVERS SEPTEMBER SEPTEMBER R’000 2016 VOLUMES PRICE FOREX TOTAL COSTS 2017 Horse mackerel -17.0% 12.9% -40.3% -11.5% 286 102 199 981 Hake -8.9% 7.6% -34.4% -6.8% VESSEL UTILISATION HAKE SEA DAYS 200 180 160 65% 140 69% 120 100 80 60 70% 64% 40 20 0 Feb S
Slide 31: Lobster and Squid
LOBSTER AND SQUID REVENUE DRIVERS COST DRIVERS SEPTEMBER SEPTEMBER R’000 2016 VOLUMES PRICE FOREX TOTAL COSTS 2017 Lobster & squid 25 728 38.2% 0.0% -40.4% -3.9% 38 161 LOBSTER AND SQUID (TONS) 1,000 900 800 700 600 500 400 300 200 100 - 2015 2016 2017 Lobster Squid 31
Slide 32: Commercial Cold Storage
COMMERCIAL COLD STORAGE REVENUE DRIVERS COST DRIVERS SEPTEMBER SEPTEMBER R’000 2016 VOLUMES PRICE FOREX TOTAL COSTS 2017 Commercial Cold 142 798 -20.5% 10.3% 2.2% -6.9% 99 269 Storage 150,000 OPERATING PROFIT (R’000) 135,000 18,416 9,156 120,000 34,269 105,000 90,000 75,000 142,798 60,000 99,269 45,
Slide 33: Operating Profit
OPERATING PROFIT 1,700 135 1,500 177 1,300 290 1,100 1,705 100 900 1,103 1,003 700 -R602m -R100m 500 September Forex (GP) Forex Fishmeal Operating Other September 2016 (FEC) prices profit 2017 Decrease 33
Slide 34: Balance Sheet (Key Items)
BALANCE SHEET (KEY ITEMS) SEPTEMBER SEPTEMBER R'000 2017 2016 Property, plant and equipment 1 604 099 1 669 373 Intangible assets 4 434 878 4 605 275 Current assets 2 327 591 3 058 173 Other assets 454 617 461 038 2017 2016 Net cash 1 222 040 1 312 942 Africa R473m R578m Total assets USA $ 55m $ 52m
Slide 35: Cash Flow Statement
CASH FLOW STATEMENT 3,000 191 2,500 567 722 2,000 809 1,500 554 1,000 1,313 1,222 500 - September 2016 Operating cash Working capital Capital Dividends, tax Debt service September 2017 flows expenditure and other cash flows Decrease Increase 35
Slide 36: Working Capital
WORKING CAPITAL 100 90 89 80 75 70 72 60 50 85 81 86 40 30 35 45 48 20 39 39 34 10 0 2015 2016 2017 Inventory days Debtors days Creditors days Cash conversion cycle 36
Slide 37: Long Term Debt: Settlement and Refinance
LONG TERM DEBT: SETTLEMENT AND REFINANCE SA DEBT (R’000) US DEBT (USD’000) 2016: • Additional R300m WCF • Settled R178m amort 2016 & 2017 3,000 • Settled $7m amort 2017: 140 • Refinanced R300m term facility • R255m WCF settled 2,500 • R178m amort settled 120 100 2,000 80 1,500 60 1,000 40 500 20 - -
Slide 38: Long Term Debt: Fixed vs Floating
LONG TERM DEBT: FIXED VS FLOATING 100% 2015 90% • 60% US debt fixed 80% 40% 40% 40% • SA floating 70% 56% 54% 67% 64% 2016 60% 75% • 60% US debt fixed 50% 100% • 33% SA debt fixed 40% 2017 30% 60% 60% 60% • 60% US debt fixed 44% 46% 20% 33% 36% • 36% SA debt fixed 25% 10% 0% SA USA Total SA USA Tota
Slide 39: Agenda
AGENDA 01 GROUP OVERVIEW 02 FINANCIAL & OPERATING PERFORMANCE 03 STRATEGIC OVERVIEW & OUTLOOK 04 GUIDANCE 39
Slide 40: Strategic Overview & Outlook
STRATEGIC OVERVIEW & OUTLOOK OVERVIEW CANNED FISH FISHMEAL & FISH OIL • Canned fish demand and supply • Global outlook • Cannery efficiencies • Fishmeal and fish oil prices • Daybrook update HORSE MACKEREL LOBSTER & SQUID CCS LOGISTICS & HAKE • Lobster FRAP consequences • Gauteng update • Horse mack
Slide 41: Canned Fish
ccc our CANNED FISH
Slide 42: Canned Fish
CANNED FISH 2017 DEMAND • 12 months to September – total food basket volumes down 3.2% (LS normalised down 6%) • Staples pricing impacted volume trends – value share in H2 2017 lower than previous 18 months • Positive start to new financial year, retail channel share above 85% 2017 SUPPLY • Local pi
Slide 43: Canned Fish Demand
CANNED FISH DEMAND 12MM FOOD VOLUME TRENDS 3.0 1.0 0.6 0.8 0.2 0.7 -0.3 -0.7 -0.2 -0.1 -0.8 -1.0 -2.9 -3 -3.2 -3.4 -3.0 -5.0 -7.0 -9.0 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-1 Jun-17 Jul-17 Aug-17 Sep-17 Total market Retail Wholesale 2017 Cumulative Growth vs YA 12MM 6MM 3MM Sep
Slide 44: Canned Fish Demand
CANNED FISH DEMAND SA SALES (CTNS’000) 1,400 1,200 1,000 800 600 400 200 - Apr May Jun Jul Aug Sep Oct 2016 Monthly 2017 Monthly 44
Slide 45: Canned Fish Supply
CANNED FISH SUPPLY HISTORICAL TAC - PILCHARDS PROCESSED IN CANNERIES (TONS) TAC PROCESSING 120,000 60,000 100,000 50,000 80,000 40,000 60,000 30,000 40,000 20,000 20,000 10,000 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 TAC Fresh Frozen 45
Slide 46: Catch Performance
CATCH PERFORMANCE mam Sardine total biomass o---- Long-term average sardine biomass — Total sardine biomass estimated in 3000 - November 2016 Biomass (thousand tonnes) 1984 | 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 46
Slide 47: Canned Fish Supply
CANNED FISH SUPPLY 100% 90% 26% 30% 34% 80% 43% 4% 70% 4% 3% 60% 4% 34% 50% 15% 48% 40% 54% 30% 20% 38% 36% 10% 18% 9% 0% 2015 2016 2017 2018 Planned Own fresh Own frozen Procured SA Procured internationally 47
Slide 48: Cannery Efficiencies
CANNERY EFFICIENCIES EXTRACT FURTHER EFFICIENCIES AT CANNERY • Target of 5% improvement in cannery production costs over financial period • Achievable through • Yield improvement • Standardisation of inputs and processes • Labour re-alignment • Improve handling and storage costs WATER RISK MITIGATIO
Slide 49: Fishmeal and Fish Oil
FF OCEANA/GROUP FISHMEAL AND FISH OIL
Slide 50: Fishmeal & Fish Oil Outlook
FISHMEAL & FISH OIL OUTLOOK SUPPLY SIDE • Peru scientific research cruise still in progress • Biomass estimates lower than expected • Projected season commencement towards the end of November • Well informed sources estimate quota to be 1.8 – 2 million tons (2016 : 2 million tons) • Market expects p
Slide 51: Fishmeal and Fish Oil – Global Outlook
FISHMEAL AND FISH OIL – GLOBAL OUTLOOK WORLD FISHMEAL PRODUCTION X 1,000 TONS 6,000 2017: 8.6% increase in global fishmeal production, Peru increase of 71% 5,000 4,000 3,000 2,000 1,000 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e 2018e Peru China PR Other 51
Slide 52: Fishmeal and Fish Oil – Global Outlook
FISHMEAL AND FISH OIL – GLOBAL OUTLOOK WORLD FISH OIL PRODUCTION X 1,000 TONS 1,200 2017: 6% increase in global fish oil production, lower than expected by market. Peru yield down by 3.2% vs 4% prior year and Menhaden down by 7.5% vs 12.5% prior year 1,000 800 600 400 200 0 2008 2009 2010 2011 2012
Slide 53: Fishmeal and Fish Oil – Global Outlook
FISHMEAL AND FISH OIL – GLOBAL OUTLOOK CHINA – FISHMEAL IMPORTS 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 Imports up 50% due to strong demand from pork products, higher aquaculture inclusions and lower 600,000 local production 400,000 200,000 0 2008 2009 2010 2011 2012 2013 2014 2015
Slide 54: Fishmeal and Fish Oil – Global Outlook
FISHMEAL AND FISH OIL – GLOBAL OUTLOOK CHINESE MONTHLY IMPORTS (TONS) 250,000 200,000 150,000 100,000 50,000 0 January February March April May June July August September October November December 2013 2014 2015 2016 2017 54
Slide 55: Fishmeal and Fish Oil Prices
55 1,000 1,200 1,400 1,600 1,800 2,000 1,250 1,500 1,750 2,000 Oct-15 Oct-15 Nov-15 Nov-15 Fishmeal Fishmeal Dec-15 Dec-15 Jan-16 Jan-16 Feb-16 Feb-16 Fish oil Fish oil Mar-16 Mar-16 Apr-16 Apr-16 May-16 May-16 Jun-16 Jun-16 Jul-16 Jul-16 Aug-16 Aug-16 Sep-16 Sep-16 Oct-16 Oct-16 FISHMEAL AND FISH O
Slide 56: Daybrook
~~. OCEANA/GROUP 56
Slide 57: Daybrook
DAYBROOK OPERATIONS • 2nd best fishing season (in volume terms) and therefore processing in Daybrook’s history, despite losing 14 days of fishing to bad weather • Low oil yield (7.6% in ’17 vs 13.1% in ’16) for the season as a result of lean fish/environmental conditions • Improvement in production
Slide 58: Horse Mackerel and Hake
HORSE MACKEREL AND HAKE 58
Slide 59: Horse Mackerel and Hake
HORSE MACKEREL AND HAKE HORSE MACKEREL SA • Desert Diamond landings continue to improve • Reduction in the proposed PMCL for 2018 • Strong demand resulting in improved pricing 2,500 120.00 • September and October average materially up, back to 2014 levels • Fish caught on historical fishing grounds
Slide 60: Horse Mackerel - Namibia
HORSE MACKEREL - NAMIBIA • Catch rates and size mix under pressure • Pricing positive due to reduced supply • Quota usage fee reductions • Offset by uncertainty with regards to government levies • 2018 rights renewal process • Erongo Marine Harambee Workers Trust launched • Continue to explore appro
Slide 61: Erongo Harambee Workers Trust
ERONGO HARAMBEE WORKERS TRUST • Erongo Marine Harambee Workers Trust launched on 4 November 2017 by the Vice President of Namibia and the Minister of Fisheries • Trust is now a shareholder in a Namibian horse mackerel rights holding company • The beneficiaries consist of only Namibian nationals, emp
Slide 62: Horse Mackerel and Hake
HORSE MACKEREL AND HAKE HAKE • Targeting 6% improvement in utilisation • Fewer planned statutory dry-docks • New maintenance structure in place • Expected volume uptick • Improved utilisation • Efficiencies expected from vessel upgrades and retirements • Healthy stable demand from both local and exp
Slide 63: Lobster and Squid
FF OCEANA/GROUP LOBSTER AND SQUID
Slide 64: Lobster and Squid
LOBSTER AND SQUID LOBSTER • Red listing of West Coast rock lobster • Oceana allocation reduced by 32% • Rationalisation based on reduced quota allocation • Job losses and site closures • Purchase quota to service vessels • Discussions with DAFF on utilisation of excess assets – SSF and new entrants
Slide 65: CCS Logistics
ce oe our CCS LOGISTICS
Slide 66: CCS Logistics
CCS LOGISTICS • Gauteng • Currently in discussions with landlord to reduce fixed costs structure • Secured two significant long term contracts in Gauteng for implementation February 2018 • Pricing still challenged by excess capacity • Bird flu effect on chicken volumes • Coastal • Occupancies good –
Slide 67: Agenda
AGENDA 01 GROUP OVERVIEW 02 FINANCIAL & OPERATING PERFORMANCE 03 STRATEGIC OVERVIEW & OUTLOOK 04 GUIDANCE 67
Slide 68: Guidance
GUIDANCE H1 2018 • Africa • Volumes positive - canned fish, horse mackerel, hake • Exchange rate impact • Euro pricing and FMO pricing improved • Operating profit improvement expected • Daybrook • Better opening volumes of fishmeal • 70% inventory contracted at historical rates • Decline on prior ye
Slide 69: Long Term Debt
LONG TERM DEBT DEBT EXPIRY PROFILE 2018: FIXED VS FLOATING 60% 100% 90% 50% 80% 52% 70% 40% 60% R635m 91% maturing in 30% 2018 of which 50% 100% R590m to be 55% refinanced 40% 20% 30% 48% 20% 22% 10% 16% 10% 7% 9% 0% 0% 2018 2019 2020 2021 SA USA Total Debt expiry profile Fixed Floating 69
Slide 70: US Partner
US PARTNER • Appointment of sub-committee • Existing partnership agreement extended to mid-February 2018 • Selection and finalisation in coming months • Fishing season commences 15 April 2018 70
Slide 71: Questions
QUESTIONS 71