Sanford Limited · NZX:SAN
Sanford — FY2018 Earnings Presentation
17 slides from Sanford's earnings presentation, 2018
Slide 1: Fiona is happy to do this slide
Fiona is happy to do this slide
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: 2018 integrated report available
2018 integrated report available at https://www.sanford.co.nz/investors/reports-1/company-reports/ The report outlines Sanford's business excellence framework – this enables each part of the business to map out their role in helping to deliver on our goals We strive to inform in a transparent
Slide 4: Solid business performance despite adverse climatic conditions
SOLID BUSINESS PERFORMANCE DESPITE ADVERSE CLIMATIC CONDITIONS CATCH/HARVEST VOLUME REVENUE ADJUSTED EBIT EBIT GWT kg 118k GWT $515M $64.7M 54c* 5.6% 7.7% 1.5% +$0.02/kg RETURN ON AVERAGE NPAT EPS ANNUAL DIVIDEND TOTAL EQUITY $42.3M** 45c 23CPS 7.3 % Up from 6.6% 12.9% +5c Stable Wild Catch GWT 2% A
Slide 5: Strong cash flow and balance sheet
STRONG CASH FLOW AND BALANCE SHEET GEARING NET DEBT EBITDA* $152.4M $84.4M 26.6% 16% TOTAL EQUITY 2% DEBT / EBITDA down from 32.3% $582M 1.81x 1% FY17 2.25x Operating Cash Flow OPERATING CASH FLOW $72.6m $80,000 $60,000 NZD $’000 $40,000 $20,000 44% $- FY16 FY17 FY18 *EBITDA: Earnings before interes
Slide 6: FY18 Headwinds
FY18 HEADWINDS Marine heatwave impacted salmon growth and mortality rates- led to suspended sales for 10 weeks Algal bloom impacted mussels growth and yields in Marlborough Extended shut down of Havelock plant for earthquake repairs Lower Hoki catch volumes leading to voluntary Hoki shelving
Slide 7: Climate change: mitigating the risk
CLIMATE CHANGE: MITIGATING THE RISK Mussels Salmon Wild Catch Sanford’s no. 1 species Creating value with the Diversity of species fish we have Spat NZ Volume independent Geographically Branding Hoki product cascade diverse Oxygenation systems Consumer proximity Development of Net
Slide 8: 2018 strategy in action – progress and delivery on key focus areas
2018 STRATEGY IN ACTION – PROGRESS AND DELIVERY ON KEY FOCUS AREAS Developed Sea to Me nutraceuticals range Marine collagen nano-fibre for skin care products INNOVATION Selective spat breeding at SPATNZ Further rollout of PSH across our deep water fleet Created awareness on plastics pollut
Slide 9: 2018 strategy in action – progress and delivery on key focus areas
2018 STRATEGY IN ACTION – PROGRESS AND DELIVERY ON KEY FOCUS AREAS Salmon - Infrastructure investment, volume growth Havelock facility upgraded for earthquake strengthening OPERATIONAL Hoki product cascade improvements moving from fillet block to individual EXCELLENCE fillet San Granit reach
Slide 10: Value strategy driving adjusted EBIT improvement
VALUE STRATEGY DRIVING ADJUSTED EBIT IMPROVEMENT Key Drivers of YOY ADJUSTED EBIT change $m Climate -11m Value +6m Strategy in Action +6m 10
Slide 11: Portfolio diversity is both our competitive advantage and our challenge
PORTFOLIO DIVERSITY IS BOTH OUR COMPETITIVE ADVANTAGE AND OUR CHALLENGE Sanford 54c / kg Aquaculture Wildcatch Inshore Offshore Nutraceuticals & Other marine Frozen at Sea Salmon extracts Vessels Pelagics Fresh Scampi Longline Mussels Commodity volume FAS FAS Charter FAS H&G High Value volume Fillet
Slide 12: Volume vs. value: operational efficiency vs. innovation & branding
VOLUME VS. VALUE: OPERATIONAL EFFICIENCY VS. INNOVATION & BRANDING Sanford STRATEGIC INTENT 54c / kg Wildcatch Aquaculture Growth Branding Volume through BGB Growth diversification Inshore Offshore Branding Nutraceuticals Operational Sanford Black Fresh & Other efficiency marine Frozen at Sea Salmon
Slide 13: We refreshed our strategy
VISON PURPOSE AMBITION WE REFRESHED OUR STRATEGY To be the Best Seafood Company We share the natural goodness of our oceans $1 EBIT/KG 2023 in the world with uncompromising care Business Excellence Framework Strategic Thrusts FY19 Key Activities Execution Channel Development Consumer Proximity Cro
Slide 14: About Auckland Fish Market
ABOUT wie AUCKLAND FISH MARKET IN PARTNERSHIP WITH THE SEA MANAGED By (69) SANFORD LTD SANFORD
Slide 15: Appendices
APPENDICES SANFORD
Slide 16: GAAP to non-GAAP reconciliation
Non-GAAP Profit measures GAAP TO NON-GAAP RECONCILIATION Sanford's standard profit measure prepared under New Zealand GAAP is net profit. Sanford have used non-GAAP measures when 2018 2017 discussing financial performance in this document. The Directors ($m) ($m) and management believe that these me
Slide 17: USD FX hedging pattern for year
USD FX HEDGING PATTERN FOR YEAR 17