Seafarms Group Limited · ASX:SFG
Seafarms — H1 FY2019 Earnings Presentation
36 slides from Seafarms's earnings presentation, Feb 28, 2019
Slide 1: Seafarms Group Limited Half Year 2018 Presentation
Our Ref: SFG ASX Announce ‐ Half Year 2018 Presentation (597) 28 February 2019 ANNOUNCEMENT 597 Company Announcements Office By ASX Online Australian Securities Exchange Number of pages: 36 Level 6 (including this page) 20 Bridge Street SYDNEY NSW 2000 Dear Sir RE: Seafarms Group Limited Half Year 2
Slide 2: About Seafarms Group
About Seafarms Group Seafarms Group Limited (ASX: SFG) is an ASX listed holding company with separate subsidiary aquaculture companies., Seafarm Operations Pty Ltd operates aquaculture operations in northern Queensland, producing high‐quality seafood. Seafarms is currently the largest producer of fa
Slide 3: Operational Overview and Market Update
Operational Overview and Market Update (six months to 31 December 2018) February 2019 The transformation of Seafarms from Australia’s largest prawn producer into a global low cost producer is underway Seafarms Group Limited 1
Slide 4: Disclaimer
Disclaimer This presentation is provided for information purposes only. The information in this presentation is in a summary form, does not propose to be complete and is not intended to be relied upon as advice to investors or other persons. The information contained in this presentation was prepare
Slide 5: Contents
Contents Seafarms Group operational summary Major achievements for reporting period First half (FY19) overview Operations overview/outlook Project Sea Dragon – The Project Project Sea Dragon– Step 1 3
Slide 6: Seafarms Group Operational Summary
Seafarms Group Operational Summary 4
Slide 7: Seafarms Group Operational Summary
Seafarms Group Operational Summary Seafarms Group Limited (SFG) is currently Australia’s largest producer of farmed prawns, with significant operational aquaculture expertise and a demonstrated track record of growth and innovation. SFG has a current market capitalisation of circa A$183 Crystal Bay
Slide 8: Seafarms Group Operational Summary
Seafarms Group Operational Summary Project Sea Dragon (PSD) a is shovel ready major project with trilateral government support and multinational partners. Major international seafood equity partner (Nissui) already secured with more partners to come Critical supporting infrastructure underway with S
Slide 9: Recently completed Government sponsored Gunn Point Road Upgrade
Recently completed Government sponsored Gunn Point Road Upgrade Insert photo of GUNN POINT road upgrade here 7
Slide 10: Snapshot of major achievements over the six month reporting period
Snapshot of major achievements over the six month reporting period ending 31 December 2018 8
Slide 11: Recent significant milestones and major achievements
Recent significant milestones and major achievements Significant progress has been made over the six month reporting period in a number of Project Sea Dragon areas including: Finalisation of (equity/project/offtake/board position) agreement with major global seafood industry corporation Nissui and e
Slide 12: Recent significant milestones and major achievements
Recent significant milestones and major achievements Commencement of early works programs at Legune Station Commencement of government sponsored infrastructure support for Project Sea Dragon with the commencement of several major road upgrades – Keep River (commenced) and Gunn Point (completed) Comp
Slide 13: Seafarms Group Financial overview for the six months ending 31 December 2018
Seafarms Group Financial overview for the six months ending 31 December 2018 11
Slide 14: Financial overview for the six months ending December
Financial overview for the six months ending 31 December 2018 For the six month reporting period ending 31 December 2018, Seafarms has reported a loss in the order of $13.2 million, reflecting the positive cash contributions of Queensland aquaculture operations whilst fully expensing all PSD develop
Slide 15: Seafarms Group Limited Corporate Overview
Seafarms Group Limited Corporate Overview ASX Listing Code SFG Market capitalisation (February 2019) Approx. $183 million Fully Paid Shares on Issue 1.67 billion Cash, Debtors and Inventories (at 31 December 2018) $20.4 million Current Liabilities (at 31 December 2018) $11.3 million Net Assets (as a
Slide 16: North Queensland Overview
North Queensland Overview 14
Slide 17: North Queensland Operations
North Queensland Operations Brief Overview Cardwell Operations Queensland farms at Cardwell have been operational since 1988. The Cardwell production ponds are part of a fully vertical integrated operation The Cardwell operations were acquired in 2014. Commencement of redesign work began where pract
Slide 18: North Queensland Operations
North Queensland Operations Operational outcomes since 2014 Seafarms Queensland operations has grown its business from 600 tonnes pa to now circa 1,700 tonnes pa (banana and black tigers) – making it the largest producer of farm prawns in Australia in just three years of operations. This has been ac
Slide 19: North Queensland Operations
North Queensland Operations Operational outcomes since 2014 Queensland operations are also used to undertake R&D programs for Project Sea Dragon. The latest R&D program involved the introduction of nursey ponds to stock grow out ponds at Cardwell. This R&D program has successfully demonstrated signi
Slide 20: First Half FY2019 Operational Overview
First Half FY2019 Operational Overview Operating revenue for the 6 months ending 31 December 2018 was $17.9 million (up 9.1% on 1H FY18) despite the 2018 Christmas crop being adversely impacted by the timing of broodstock availability and associated delays to stocking, resulting in lower yields and
Slide 21: Project Sea Dragon: The Project
Project Sea Dragon The Project 19
Slide 22: Overview of Project Sea Dragon
Overview of Project Sea Dragon Project Sea Dragon (PSD) is a shovel ready major project. Strong working relationship with government sponsors of PSD (NT/WA/Federal) Government support is strong, PSD has received Major Project Status from NT, WA and Federal Governments Government infrastructure spend
Slide 23: Overview of Project Sea Dragon
Overview of Project Sea Dragon Major agreements already in place for the entire 10,000ha PSD project: Project Agreement with the NT Government Indigenous Land Use Agreement (ILUA) with Traditional Owners 90 year Sublease and Co‐operation Agreement at Legune Station Extensive 8 year project evaluatio
Slide 24: Project Sea Dragon – Location of Key Facilities
Project Sea Dragon – Location of Key Facilities 22
Slide 25: Project Sea Dragon: The Project Level – Step of Stage
Project Sea Dragon The Project Level – Step 1 of Stage 1 23
Slide 26: PSD – A fully vertically integrated project
PSD – A fully vertically integrated project Complete end to end control of operations will allow SFG to ensure absolute biosecurity and process control Key Process Steps in PSD Prawn Aquaculture 1 2 3 4 5 Eggs, genetics Hatching / Sales, marketing Farming Processing & broodstock juveniles and logist
Slide 27: Project Sea Dragon – The Opportunity
Project Sea Dragon – The Opportunity Australia has earned a worldwide reputation as a supplier of safe, high quality seafood, produced using environmentally sustainable practices in wild catch fishing and aquaculture (Australian Trade Commission 2015) Project Sea Dragon is the only project globally
Slide 28: PSD Broodstock Facility Layout Design
PSD Broodstock Facility Layout Design 26
Slide 29: Seafarms – Leading industry partners already secured
Seafarms – Leading industry partners already secured Brief overview of existing PSD partners Our existing PSD project partners collectively have over 160 years experience in the seafood industry, employ over 10,000 people and have combined annual net sales of approximately US$6.7billion Major equity
Slide 30: Seafarms – Leading industry partners already secured.
Seafarms – Leading industry partners already secured. Seafarms/Sealord Marketing and Service Agreement Seafarms has entered into a Marketing and Service Agreement with Sealord Sealord provides an exclusive and commission based sales and marketing service in both Australia and New Zealand. This provi
Slide 31: Project Sea Dragon - the market opportunity
Project Sea Dragon ‐ the market opportunity Trade gateway to Asia – this massive opportunity is already underway By 2030 two thirds of the world’s middle class and 50% of the world’s GDP 1 Consumption has become one of the core drivers of China’s economy and will remain one of the world’s fastest gr
Slide 32: Project Sea Dragon - the market opportunity
Project Sea Dragon ‐ the market opportunity Significant growing Australian presence and rapid growth being achieved particularly in Chinese market Current food and beverages imports to China estimated at A$153 billion up 10% from 2016 1 Australia is the 4th fourth largest major supplier of agri‐food
Slide 33: Project Sea Dragon - the market response, more product more quickly
Project Sea Dragon ‐ the market response more product more quickly Ability to leverage off Australia’s reputation as a safe, high quality and sustainable producer of premium food to the Asian markets Growing concern over food safety ‐ the use of antibiotics. Asian shrimp producers remain reliant on
Slide 34: PSD development commenced in the 2018 dry season
PSD development commenced in the 2018 dry season Commencement of PSD phased construction and associated infrastructure is already underway. Government sponsored infrastructure to support PSD has also commenced Stage 1 development (1,120 ha’s of production and nursery ponds) is to be built in three s
Slide 35: Project Sea Dragon – Funding for Step 1 of Stage 1
Project Sea Dragon – Funding for Step 1 of Stage 1 Discussions have continued with commercial banks, government sponsored infrastructure funds and other major corporations regarding funding this initial phase development of Project Sea Dragon. Seafarms remains determined that its shareholders retain
Slide 36: Contact Us
Contact Us Seafarms Group Limited Level 11, 225 St Georges Terrace Perth WA 6000 PO Box 7312 Cloisters Square WA 6850 T. +61 8 9216 5200 E. info@seafarms.com.au