Seeka Limited · NZX:SEK
Seeka — Seeka Kiwifruit Industries — Shareholder Meeting (August 2009)
34 slides from Seeka's shareholder meeting presentation, Aug 18, 2009
Slide 1: Annual Shareholders Meeting 18 August 2009
SEEKA SEEKA Annual Shareholders Meeting 18 August 2009 SEEKA KIWIFRUIT INDUSTRIES LIMITED 1
Slide 2: Kim Ellis, Chairman
SEEKA SEEKA Kim Ellis Chairman SEEKA KIWIFRUIT INDUSTRIES LIMITED 2
Slide 3: Agenda
SEEKA Agenda • Chairman’s introduction • Chief Executive’s review and trading update • Resolutions 3
Slide 4: Proxies
SEEKA Proxies • 40 proxies received by the Company are as follows: Chair 2,961,732 M Franks 97,181 M Cartwright 22,493 J Bourke 250 J Scotland 52,120 NZ Shareholders Association 1,250 J Van Eden 2,769 Total 3,137,795 4
Slide 5: Directors
SEEKA Directors • Peter Dawe, Chairman Audit Committee • Jim Scotland • Dave Emslie • Malcolm Cartwright • Junichi Moriya • Stuart Burns, Absent • Kim Ellis, Chairman 5
Slide 6: Senior Management Team
SEEKA Senior Management Team Chief Executive Michael Franks Business Development Orchards Post Harvest IFSL Terry Richards Bryan Grafas Rob Towgood Kevin Halliday [ Retired ] Information Systems Chief Financial Officer Greg Rodger Stuart McKinstry 6
Slide 7: Fresh MD Holdings
SEEKA Fresh MD Holdings • 18.7% shareholder • Paid $3.60 ex dividend (NZD$8.5m) • A joint venture company in Japan – Fresh System – Fresh Remix • Fresh System – Fresh produce distribution – Ripening and repacking – Including kiwifruit and bananas – Logistics and cool chain management – Pre packing t
Slide 8: Financial Highlights
SEEKA Financial Highlights 2009 2008 % Increase Operating revenue $107.464m $106.868m 0.6% EBITDA $14.042m $10.118m 38.8% NPAT $3.980m $2.576m 54.5% Net operating cashflows $12.591m $5.252m 139.7% (after interest and tax) Earnings per share 32 cents 20 cents 60% Orchard WIP Impairment $ 779k, intere
Slide 9: Operating Highlights
SEEKA Operating Highlights • Total Value Lease has been introduced to remove volatility in Company earnings from orcharding. • Post Harvest business restructured into 5 operating hubs, capacities balanced. • SeekaFresh established as part of fresh business initiatives. • AvoFresh launched. 9
Slide 10: Dividends
SEEKA Dividends June December June 2009 2008 2007 Dividends declared $1.26m $1.5m $1.26m Per share 10 cents 12 cents 10 cents 10
Slide 11: Dividend Policy
SEEKA Dividend Policy • To declare dividends of not less than 20 cents per share each financial year. • Dividends not to exceed 75% of operating cashflow net of maintenance capital and contracted debt reduction. • Dividend timing normally June and December. • Board right to amend. 11
Slide 12: Vital Food Processors Limited
SEEKA Vital Food Processors Limited • Current year impact of $1.794m non cash impairment. • Not regarded as a strategic asset. • Seeka has not participated in funding rounds since 2007. • Latest funding round reduces Seeka’s value to extent where full write down justified. 12
Slide 13: Zespri
SEEKA Zespri • Seeka is a strong supporter of the single point of entry. • We have long held the view that there are significant improvements that could be made within the current system. • In-market supply and cost reduction remain frustrated projects. 13
Slide 14: Seeka Kiwifruit Industries Limited
KIWIFRUIT INDUSTRIES LIMITED
Slide 15: Michael Franks, Chief Executive: Review and Update
SEEKA SEEKA Michael Franks, Chief Executive Review and Update SEEKA KIWIFRUIT INDUSTRIES LIMITED 15
Slide 16: Orchard Operations – EBITDA
SEEKA Orchard Operations – EBITDA 2009 2008 Orchard Operations $4.176m ($1.756m) 16
Slide 17: Orchard Operations – Production
SEEKA Orchard Operations – Production 2008 / 2009 2007 / 2008 Trays per Trays per Product Hectares Trays Hectare Size TZG Rejects Hectares Trays Hectare Coromandel Gold 24 303,006 12,583 31.61 0.62 15% 30 293,759 9,779 Green 30 279,098 9,199 32.77 0.41 15% 30 241,268 7,963 Gold 10 87,077 8,867 31.08
Slide 18: Total Value Lease
SEEKA Total Value Lease 2008 Forecast 2009 Forecast Total Value Leases $3m 200 ACTUAL 190 $2.3m +50 Number of $2m $1.7m Leases $0.8m $1m $0.35m 140 $0m $0.5m -$0.3m -$1m +80 -$2m 60 -$1.7m -$3m -$2.9m -$4m 2009 2010 2011 2012 FORECAST 18 Financial Year
Slide 19: Post Harvest Operations – EBITDA
SEEKA Post Harvest Operations – EBITDA 2009 2008 Post Harvest Division $13.058m $15.654m 19
Slide 20: Post Harvest Fruit Loss
SEEKA Post Harvest Fruit Loss GREEN 2009 Seeka 5.7% 5.7% Industry 6.4% 6.4% 2008 Seeka 10.3% 10.3% Industry 10.3% 10.3% ORGANIC 2009 Seeka 1.5% 1.5% Industry 3.3% 3.3% 2008 Seeka 3.6% 3.6% Industry 2.3% 2.3% GOLD 2009 Seeka 4.2% 4.2% Industry 4.4% 4.4% 2008 Seeka 12.4% 12.4% Industry 14.0% 14.0% 20
Slide 21: Financial Summary
SEEKA Financial Summary 2009 2008 Orchard division $4.176m ($1.756m) Post harvest division $13.058m $15.654m Associates $0.509m $0.392m Overheads net of income ($3.701m) ($4.172m) Total EBITDA $14.042m $10.118m Depreciation $4.630m $4.649m Finance costs $3.823m $3.439m Profit before tax $5.589m $2.0
Slide 22: Focus on Overhead Costs
SEEKA Focus on Overhead Costs 2009 2008 2007 Administration & Business Development Costs $6.671m $7.110m $7.318m • Overall cost reduction achieved despite increased investment by the Company in Information Systems. • Information Systems increasingly an important strategic platform for the business.
Slide 23: Seeka People
SEEKA Seeka People • Seeka’s people the important component of our performance improvement • Base human resources processes reset • Performance and development systems revamped • Training systems upgraded • Safety systems overhauled including drugs testing • Succession planning in place • Offshore p
Slide 24: Business Strategy
SEEKA Business Strategy Delivering Shareholder Value • Grow Company and market capitalisation. • Maintain predictable dividends, by: • Enhancing efficiency and capabilities of core business. • Increasing Company’s market share through performance. • Leverage capability to complementary business area
Slide 25: Current Year Performance
SEEKA Current Year Performance • Hail 11 May – Reduced total volumes • Limited Class 2 packing – Zespri Class 1 to Australia • Orchard returns awaiting market returns – Green cautious, Gold positive • Orchard Volumes – Green hit by hail, Gold positive • SeekaFresh performing well with new retail and
Slide 26: Kim Ellis: Resolutions
SEEKA SEEKA Kim Ellis Resolutions SEEKA KIWIFRUIT INDUSTRIES LIMITED 26
Slide 27: Resolution 1
SEEKA Resolution 1 1. To adopt the Annual Report of the Company and the Financial Statements for the year ended 31 March 2009 together with the Auditor's Report thereon. 27
Slide 28: Resolution 2
SEEKA Resolution 2 2. To re-elect Mr James A Scotland as a director of the Company. Jim Scotland to address the meeting 28
Slide 29: Resolution 3
SEEKA Resolution 3 3. To re-elect Mr Malcolm J Cartwright as a director of the Company. Malcolm Cartwright to address the meeting 29
Slide 30: Resolution 4
SEEKA Resolution 4 4. To record the re-appointment of PricewaterhouseCoopers as auditor of the company and to authorise the Directors to fix the remuneration of the auditor for the coming year. 30
Slide 31: Resolution 5
SEEKA Resolution 5 5. To increase the pool of funds available for remuneration of directors by an amount of $50,000 per annum, from a maximum $300,000 per annum to a maximum of $350,000 per annum payable to all the directors taken together. 31
Slide 32: Resolution 5
SEEKA Resolution 5 • Last review of pool for Directors’ fees in 2007 • Independent review by Sheffield Consulting • Key parameters – 6 Directors; chair; audit / remittance committees – Target all-company similar revenues – Reflects public listing regulatory complexities • Pool will be applied in cur
Slide 33: General Business
SEEKA General Business 33
Slide 34: END
SEEKA SEEKA END SEEKA KIWIFRUIT INDUSTRIES LIMITED 34
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