Sanford Limited · NZX:SAN
Sanford — Merger or Acquisition (November 2010)
15 slides from Sanford's merger presentation, November 2010
Slide 1: Acquisition of Pacifica Seafoods' Greenshell Mussels and Pacific Oysters Businesses
Eric Barratt, Managing Director November 2010 Acquisition of Pacifica Seafoods’ GreenshellTM Mussels and Pacific Oysters Businesses | November 2010
Slide 2: Forward looking statements 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 releases, manage
Slide 3: Agenda
1. Transaction overview 4 2. Overview of acquired businesses 5 3. Strategic fit with Sanford 8 4. Financial information 13 Acquisition of Pacifica Seafoods’ GreenshellTM Mussels and Pacific Oysters Businesses | November 2010 3
Slide 4: Transaction overview
Acquisition of Pacifica Seafoods’ GreenshellTM mussel business for $85 million (includes Pacifica Oyster business but excludes Salmon assets) Combines New Zealand’s two largest GreenshellTM mussel producers Consistent with Sanford’s aquaculture strategy outlined in May 2010 Significant potential syn
Slide 5: Overview of acquired businesses
Acquisition of Pacifica Seafoods’ GreenshellTM Mussels and Pacific Oysters Businesses | November 2010
Slide 6: Greenshell Mussels and Pacific Oysters operations
GreenshellTM Mussels Pacific Oysters Operations Operations 2nd largest producer in New Zealand with approximately 20% market share Completing first 2011 production volume of approximately 18,000 greenweight tonnes commercial Marine farms in Marlborough Sounds and Banks Peninsula covering 532ha of ha
Slide 7: Map of farm locations
Wainui inlet spat Outer catching site Pelorus Golden Bay Farms Collingwood Tasman Bay Farms Ring Road Tasman Pig Bay & Farms Bay Inner Melville Cove Farms Pelorus Farms Golden Farms Bay Pelorus Sound Pegasus Bay Pegasus Bay / Pegasus Development Banks Peninsula Christchurch Port Levy Banks Peninsula
Slide 8: Strategic fit with Sanford
Acquisition of Pacifica Seafoods’ GreenshellTM Mussels and Pacific Oysters Businesses | November 2010
Slide 9: Increases Sanford's presence in New Zealand aquaculture sector
Increases Sanford’s presence in New Zealand aquaculture sector Combines New Zealand’s two largest GreenshellTM mussel producers Consolidates #1 position in New Zealand aquaculture Enhanced footprint in export markets Attractive growth prospects Increases exposure to sector with significant growth po
Slide 10: Aquaculture is New Zealand's fastest growing seafood sector
Aquaculture is New GreenshellTM mussels (estimated NZ industry share) Zealand’s fastest growing seafood sector and a major export Others, Sanford, 20% 25% contributor OPC, 5% Globally, FAO predicts Sealord, seafood consumption 10% Pacifica, will increase 35% over Talleys, 20% next 10 years and 10% A
Slide 11: Significant coordination across New Zealand aquaculture industry
Significant coordination across New Zealand aquaculture industry Strong government support for aquaculture industry Coastal Policy Statement announced in October Councils must now consider the potential value of aquaculture and plan for it where appropriate Protects biodiversity and water quality –
Slide 12: Favourable outlook for Greenshell mussel pricing and volumes
Mussel prices recovering from lows1 Favourable outlook for 175 to 100 at 3 December 2001 US Dollar Pricing Indexed 150 GreenshellTM mussel pricing and 125 volumes 100 75 Export mussel prices now back 50 above US$2.00/lb 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Pure New Z
Slide 13: Financial information
Acquisition of Pacifica Seafoods’ GreenshellTM Mussels and Pacific Oysters Businesses | November 2010
Slide 14: Acquisition price and financial outlook for acquired businesses
Acquisition price represents book value of assets Marine farm licenses and structures and crop - $62m Fixed assets (Properties, vessels, other P&E, investments) - $20m Stock (finished goods, raw materials) - $3m Financial outlook for acquired businesses and assets Annualised 2011F revenue approximat
Slide 15: Fully debt funded through new 3-year bank facilities
Fully debt funded through new 3-year bank facilities $90m facility provided by ANZ and Rabobank Pro forma gearing expected to be approximately 2.2x (Net Debt/EBITDA) post- acquisition Well within covenants post-acquisition Earnings accretive from the time of acquisition Transaction expected to close