New Zealand King Salmon Investments Ltd. · NZX:NZK
New Zealand King Salmon Investments — H1 2021 Earnings Presentation
24 slides from New Zealand King Salmon Investments's earnings presentation, Feb 1, 2021
Slide 1: 1H21 Half Year Financial Results
1H21 HALF YEAR FINANCIAL RESULTS
Slide 2: Highlights
01 H I G H L I G H TS 1H21 HALF YEAR RESULTS 2
Slide 3: 1H21 Summary
1H21 SUMMARY Profitability impacted by COVID-19. These impacts are expected to be temporary: • Profitability impacted by early calendar year 2020 sales disruption and its flow on impacts: ► Higher airfreight costs. ► Requirement to move excess inventories built up during lockdown – an industry-wide
Slide 4: 1H21 Summary (continued)
1H21 SUMMARY (CONTINUED) Strong domestic and international recovery in sales: • Sales volumes 3,442 MT are consistent with sales during 1H20 (prior to onset of the COVID pandemic) of 3,441 MT. • Branded product has retained its premium positioning and pricing both domestically and offshore. • Develo
Slide 5: Facts and Figures
FACTS AND FIGURES 1H21 REVENUE OF 4,150 $82.3 MILLION NZ$m 1H PRO-FORMA OPERATING EBITDA 25 METRIC TONNES HARVESTED DURING 1H21 20 19.5 15 17.3 16.5 10 10.5 5 7.3 - 1H17 1H18 1H19 1H20 1H21 3% 1% 36% 1H STATUTORY NPAT 4% NZ$m 25 20 4% 20.8 15 15.7 15.1 10 5 8.7 - 7% (5) (10) (4.3) 45% 1H17 1H18 1H19
Slide 6: Financial Overview
02 03 FINANCIAL O V E RV I E W 1H21 HALF YEAR RESULTS 6
Slide 7: Summary Financial Information
SUMMARY FINANCIAL INFORMATION • Performance recovering as new sales channels are developed resulting in total sales volumes consistent with same time a year ago (prior to COVID sales disruption). Some excess inventory cleared at lower prices. • GAAP results are impacted by fair value losses, a funct
Slide 8: Harvest by Farm
HARVEST BY FARM Total harvest was up to 4,150 MT. The new production model sees a slightly higher proportion of harvest taking place in the Pelorus and Queen Charlotte sounds during FY21. Farm Volume Harvested* 1H20 2H20 1H21 Ruakaka 480 MT - - Queen Charlotte Otanerau - - 910 MT Clay Point 565 MT 1
Slide 9: Balance Sheet
Group Financial Position BALANCE SHEET NZ$000s Dec-20 Unaudited Jun-20 Audited Current Assets Cash and equivalents 5,581 7,115 Receivables 14,758 12,777 Inventories 45,783 35,612 New Zealand King Salmon maintains its strong financial position. Biological Assets 69,677 81,784 Other 5,734 907 Our bala
Slide 10: Operational Update
03 O P E R AT I O N A L U P D AT E 1H21 HALF YEAR RESULTS 10
Slide 11: Sales Performance
SALES PERFORMANCE Trends in volumes show a strong recovery in sales, especially in the last 3 months of 2020 Sale volumes have been rebuilt, with volumes of product sold in November and December 2020 higher than the same period in 2019: • A strong recovery in sales volumes particularly during Q4 cal
Slide 12: Sales by Market - Export
SALES BY MARKET - EXPORT Continuing to target branded premium markets North America (MT) Sales to North America have recovered strongly as alternative channels to market have been developed • Record volume of product sold to North America whilst maintaining price in a challenging environment 1,017 1
Slide 13: Sales by Market - Export
SALES BY MARKET - EXPORT Strong performance in other export markets Most markets saw an increase in volumes, premium branded product maintained solid price performance • Australia – a positive result with sales growth as NZKS continues to establish its premium positioning in foodservice markets. • A
Slide 14: Sales by Market - Domestic
SALES BY MARKET - DOMESTIC Strong growth in retail offsets COVID impacted foodservice market Domestic Market(MT) Growth in retail volumes as emphasis placed on smoked products • Disruption to export and foodservice markets has created the opportunity to renew domestic retail interest, grow the marke
Slide 15: Average Sale Prices
AVERAGE SALE PRICES Branding underpins customer loyalty and value to our business New Zealand King Salmon’s core branded and differentiated business continues to attract premium pricing. Pricing for these products has remained firm. Excess product (due to the significant supply and demand imbalance
Slide 16: Fish Performance
FISH PERFORMANCE Fish performance continues to be a key focus for the business • New Aquaculture General Manager, Grant Lovell (20 years King Salmon experience), is combining the best of prior production models. • Harvest volumes increased to 4,150 MT, 11% higher than 1H20. • Harvest rates were inte
Slide 17: Future Farming & Harvest Volumes
FUTURE FARMING & HARVEST VOLUMES This slide provides an update on future farming volumes: Farm relocation (MPI Salmon Relocation Process): • Adoption of the 2017 Panel recommendation would be unlikely to have any material impact on site capacity however it may result in modest fish performance impro
Slide 18: Appendices
04 APPENDICES 1H21 HALF YEAR RESULTS 18
Slide 19: Appendix – 1H21 Reconciliation Between GAAP Results and Pro Forma Financials
APPENDIX – 1H21 RECONCILIATION BETWEEN GAAP RESULTS AND PRO FORMA FINANCIALS Statutory Fair Value IFRS 16 Lease Pro Forma 1H21 Financial Adjustments Adjustments Operating Statements Financial NZD 000s Information Revenue 82,279 82,279 Cost of goods sold (78,350) 31,018 (789) (48,121) Fair value gain
Slide 20: Appendix – 1H20 Reconciliation Between GAAP Results and Pro Forma Financials
APPENDIX – 1H20 RECONCILIATION BETWEEN GAAP RESULTS AND PRO FORMA FINANCIALS Statutory Fair Value IFRS 16 Lease Pro Forma 1H20 Financial Adjustments Adjustments Operating Statements Financial NZD 000s Information Revenue 84,189 84,189 Cost of goods sold (74,830) 29,429 (260) (45,661) Fair value gain
Slide 21: Understanding Our GAAP Results
UNDERSTANDING OUR GAAP RESULTS The impact of NZ IAS-41 Agriculture, NZ IAS-2 Inventory and NZ IFRS-16 Leases Our GAAP results are impacted by Fair Value gains or losses arising from the application of NZ IAS-41 Agriculture, NZ IAS-2 Inventory and the classification of leases under NZ IFRS-16. The im
Slide 22: Appendix – Glossary of Terms
APPENDIX – GLOSSARY OF TERMS 1H20 Financial results for the 6 months from 1 July 2019 to 31 December 2019 1H21 Financial results for the 6 months from 1 July 2020 to 31 December 2020 CAGR Compounding annual growth rate EBITDA Earnings before interest, tax, depreciation and amortisation FCR Feed Conv
Slide 23: Disclaimer
DISCLAIMER The information in this presentation has been prepared by New Zealand King Salmon Investments Limited with due care and attention. However, neither New Zealand King Salmon Investments Limited nor any of its directors, employees, shareholders nor any other person shall have any liability w
Slide 24: 1H21 Half Year Financial Results
1H21 HALF YEAR FINANCIAL RESULTS
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