Sanford Limited · NZX:SAN
Sanford — Shareholder Meeting (December 2016)
18 slides from Sanford's shareholder meeting presentation, Dec 14, 2016
Slide 1: Annual Shareholder's Meeting 2016 CEO's Address
ANNUAL SHAREHOLDER’S MEETING 2016 CEO’S ADDRESS 14 DECEMBER 2016
Slide 2: New Zealand's total seafood industry is tiny from a global perspective
NEW ZEALAND'S TOTAL SEAFOOD INDUSTRY IS TINY FROM A GLOBAL PERSPECTIVE New Zealand <0.4% Rest of World Source: FAO 2015 2
Slide 3: New Zealand seafood – a great reputation
NEW ZEALAND SEAFOOD – A GREAT REPUTATION Infographics from nzstory.govt.nz 3
Slide 4: Making our natural resources more valuable
MAKING OUR NATURAL RESOURCES MORE VALUABLE 1.2 1 0.8 $/kg Greenweight 0.6 0.51 0.4 0.35 0.2 0 2015 2016 $/kg $/kg Target 4
Slide 5: Focus on consumers
FOCUS ON CONSUMERS • ‘Focus on Fresh’ emphasises an increasing allocation of raw material to the chilled sector 5
Slide 6: A major shift towards New Zealand consumers
A MAJOR SHIFT TOWARDS NEW ZEALAND CONSUMERS • ‘Focus on Fresh’ and increasing salmon consumption in New Zealand driving domestic market development 24% 34% 6
Slide 7: Greenshell mussels - the need for diversification
GREENSHELL MUSSELS - THE NEED FOR DIVERSIFICATION • Most of our business is in frozen halfshell mussels, as is the rest of New Zealand’s mussel business. 7
Slide 8: Sanford squid catch and pricing trend
SANFORD SQUID CATCH AND PRICING TREND • 2016 was a successful year in terms of catch and global market prices 4,000,000 300% 3,500,000 250% 3,000,000 200% 2,500,000 2,000,000 150% 1,500,000 100% 1,000,000 50% 500,000 - 0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Catch Price Index 8
Slide 9: Fishing down south
FISHING DOWN SOUTH • Image of the San Aspiring taken by drone 9
Slide 10: Building a capable organization
BUILDING A CAPABLE ORGANIZATION • Value Creation through people engagement, branding and consumer focus requires highly skilled individuals $000 Administration Cost and EBITDA Trend 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2013 2014 2015 2016 Admin Cost EBITDA 10
Slide 11: Sanford – our brands
SANFORD – OUR BRANDS Sanford Blue Sanford Black Big Glory Bay – by Sanford Tiaki – Mainstream Premium Range Super Premium Provenance Premium Sustainable Seafood 11
Slide 12: Sanford – our innovations
SANFORD – OUR INNOVATIONS * * * * Not Sanford product. We are an ingredient supplier only 12
Slide 13: Maximising value of the whole raw material
MAXIMISING VALUE OF THE WHOLE RAW MATERIAL Petfood* Equine Products* Mussel Mince Fat Lined Block & Hoki Oil Pet Treats* • Hoki Skin • Ling Skin Pet Supplement • Mussels Hoki Oil Petfood* • Hoki Mince Freeze Dried Mussels * Not Sanford product. We are an ingredient supplier only 13
Slide 14: The Hauraki Gulf Marine Park
THE HAURAKI GULF MARINE PARK Proposed Fisheries Management Actions include • From 2017 restrict and by 2025 withdrawal of trawling and Danish seining within Marine Park • Establish Marine Park as a separate fisheries management area by 2018 • Address localised depletion, recreational catch and chart
Slide 15: A vision for the ocean around New Zealand
A VISION FOR THE OCEAN AROUND NEW ZEALAND We support any measures that ensure the sustainability of the resources we depend on, e.g. Marine Protected Areas These measures should Involve a multi stakeholder process in developing them Be centred around science to determine the most appropriate
Slide 16: Annual Report 2016
ANNUAL REPORT 2016 UNCOMPROMISING CARE Integrated Reporting Transparency 16
Slide 17: Trident – transparency at sea
TRIDENT – TRANSPARENCY AT SEA Integrated GPS for time and position referenced footage Innovative full-hemisphere cameras provide multiple views Customised data entry panels for collecting observations from the footage directly to a database 17
Slide 18: Sanford – attractive industry
SANFORD – ATTRACTIVE INDUSTRY Global protein consumption growth outlook (2014 – 2020) 18% 16.0% Add per capita 15.6% consumption 14.6% Shortage of 50 -80 15% million tonnes by 12% 2030 8.7% 9% 7.1% 6% Fish Poultry meat Sheep meat Pig meat Beef & veal Source: OECD – FAO Agricultural Outlook Global se