Slide 1: ASX announcement cover letter
Our Ref: SFG ASX Announce 2016 Annual Report Presentation (486) 31 August 2016 For personal use only ANNOUNCEMENT 486 Company Announcements Office Australian Securities Exchange Level 6 By ASX Online 20 Bridge Street Number of pages: 43 SYDNEY NSW 2000 (including this page) Dear Sir Seafarms Group L
Slide 2: Operational Overview (FY16) and Market Update – Project Sea Dragon
For personal use only Operational Overview (FY16) and Market Update – Project Sea Dragon August 2016 Transformation of Australia’s largest aquaculture shrimp producer into a global player Seafarms Group Limited
Slide 3: Disclaimer
Disclaimer This market update has been prepared by Seafarms Group Limited for professional investors. The information contained in this For personal use only presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial pr
Slide 4: Seafarms Group Limited Overview
Seafarms Group Limited Overview For personal use only 1. Overview of Seafarms Group 2. Operations 3. Project Sea Dragon Seafarms Group Financial Year 2016 Presentation 3
Slide 5: Overview of Seafarms Group
Overview of Seafarms Group For personal use only Australia’s largest producer of farmed shrimps Seafarms Group Ltd (“Seafarms”) is an ASX listed Australian agri‐food company, and the largest producer of farmed shrimps in Australia. The farms have been operating since 1988. Seafarms existing aquacult
Slide 6: Financial Outcome for the months ending 30 June 2016
Seafarms Group Limited Financial Outcome for the 9 months ending 30 June 2016 For personal use only The Company’s full year reporting period was changed from 30 September to 30 June at the Company’s last Annual General Meeting in February 2016. For the 9 months reporting period to 30 June 2016, Seaf
Slide 7: Corporate Overview
Seafarms Group Limited Corporate Overview For personal use only ASX Listing Code SFG Market Capitalisation $108m (at 26 August 2016) Shares on Issue 1,029m Convertible Preference Shares 30m Cash, Debtors & Inventories $19.5m (at 30 June 2016) Current Debt (at 30 June 2061) $1.3m Long Term Debt $8.8m
Slide 8: Operational Overview
For personal use only Operational Overview
Slide 9: Current Operations
Current Operations For personal use only Hatchery (A) Innisfail Domestication program R&D Project with ARC Research Hub for Advanced shrimp Breeding A B Farms Cardwell (B) 128 ha of ponds Processing plant Maintenance division Farm administration Ingham (C) 32 ha of ponds C D Founder Stock Centre Exm
Slide 10: Production Overview
Production Overview For personal use only Financial year (9 months) production 1,110 tonnes Black tiger production 69% FY2016 Production FY2016 Production Mix 300,000 250,000 Banana 200,000 31% 150,000 100,000 50,000 ‐ Tiger 69% Oct Nov Dec Jan Feb Mar Apr May Jun Banana Tiger Banana Tiger Seafarms
Slide 11: Operational Outcomes
Operational Outcomes For personal use only Black Tiger yields continue to improve 37% improvement in 2nd half of FY2016 Growth rates, FCR and yield in‐line with expectations Clear feed trial outcomes; providing improved margins Operational processes in place to improve management of East Coast endem
Slide 12: Research & Development
Research & Development For personal use only ARC Hub for Advanced Shrimp Breeding To –date 391 families in total have been produced at Seafarms, consisting of 7 inbred families, 371 commercial families and 13 individual families. RNASeq data has been assembled in early 2016, into a final transcripto
Slide 13: Safety
Safety For personal use only Dedicated Health Safety & Environment Manager appointed 17% improvement in incident numbers Work commenced on corporate system and integration of HSE systems FY2016 Cumulative Performance 80 Incidents per million hours 70 60 50 40 30 20 10 0 Oct‐15 Nov‐15 Dec‐15 Jan‐16 F
Slide 14: Employment & Productivity
Employment & Productivity For personal use only 93 FTE across the aquaculture operations in Queensland QLD operations being utilised as a training platform for PSD Productivity 13.3 tonnes per FTE Continued focus on productivity improvements Increase yield and outputs Organisational Productivity Inv
Slide 15: Marketing Activities Driving Brand Growth
Marketing Activities Driving Brand Growth For personal use only Key Marketing Successes 2016 Brand positioning , strategies & activity plans activated Website, Facebook, Linkedin assets and recipes developed Video content developed New product development trials completed for value added products In
Slide 16: Sales & Distribution
Sales & Distribution For personal use only FY sales to $19.2 million (9 months) Q4 Sales up 21% year on year Healthy distribution mix Positive uptake by major retailers Maintenance of volume to the wholesale market Monthly Sales 500,000 400,000 300,000 Kg 200,000 100,000 0 Oct‐15 Nov‐15 Dec‐15 Jan‐1
Slide 17: Export Markets
Export Markets For personal use only First export shipment to Europe completed Whilst domestic demand remains strong, export markets are offering better pricing and better terms of trade Discussions continue for growth opportunities Wholesaler / distributor in Europe Global supermarket chain Japanes
Slide 18: Why is Cardwell Important for PSD
Why is Cardwell Important for PSD For personal use only When the Cardwell operation was acquired in early 2014, the operation was only producing banana shrimps. Post acquisition Cardwell operations were redesigned (where practical) as a pilot project for the company’s PSD. As such the product shrimp
Slide 19: Project Sea Dragon
For personal use only Project Sea Dragon
Slide 20: Overview
Overview For personal use only Project targets investment ready by the end of calendar 2016. Over $65m spent and five years of work to date. Government support remains strong, evidenced through federal election infrastructure commitments. Investor/Joint Venture partner interest in PSD is strong and
Slide 21: Global Opportunity
Global Opportunity For personal use only Growing population and wealth underpinning global demand for protein particularly in Asia. Large global growth in shrimp aquaculture. Strong demand for larger animals (40‐45grams). Currently being supplied by wild catch only with fisheries delivering variable
Slide 22: Need for New Shrimp Farming
Need for New Shrimp Farming For personal use only Strong underlying demand for shrimp Limited new shrimp farming regions Shrimp is one of the world’s most traded seafood products Major part of the daily Asian diet. A high value seafood product which is benefiting from the growing middle class in dev
Slide 23: Project Sea Dragon – A north Australia Project
Project Sea Dragon A north Australia Project For personal use only Seafarms Group Financial Year 2016 Presentation 22
Slide 24: Project Sea Dragon – Unique Attributes
Project Sea Dragon – Unique Attributes For personal use only North Australia’s natural advantages – aquaculture Biogeography Suitable Climate Disease‐ free High tidal movements Land Availability Lack of competitive uses Strong political support Seafarms Group Financial Year 2016 Presentation 23
Slide 25: Competitive Advantages
Competitive Advantages For personal use only Infrastructure Biosecurity Towns, ports, road and airports Industry leading approach and plan for biosecurity Economies of scale – reduce major cost inputs: Specific pathogen free Broodstock feed, people, power Tight management protocols – quarantine Key
Slide 26: Unique Attributes
Unique Attributes For personal use only Industrial scale land‐based shrimp aquaculture project based in northern Australia 10,000 hectare aggregation At full production – PSD will become the 7th largest producer of shrimp globally, importantly the only developed country offering a significant volume
Slide 27: Bankable Feasibility Study
Bankable Feasibility Study For personal use only Target is still for completion in 4Q of 2016. Stage 1 scope of work has been increased to include headworks for Stage 1 and Stage 2 and subsequent headworks for the full 10,000ha project. This will enable an accelerated development program to occur wi
Slide 28: Project Investment & Outcomes
Project Investment & Outcomes For personal use only 10,000ha project staged over 7 years Stage I and Stage II Construction to commence dry season 2017 Includes headworks for 10,000 hectare project: internal roads, power transmission, port, canals Estimated CAPEX Stage I & II – US$420m Project Sea Dr
Slide 29: Project Sea Dragon - Recap
Project Sea Dragon ‐ Recap For personal use only Completed Concept Study (April 2013) and Pre‐Feasibility Study (June 2013) Secured key PSD operating site Legune Access and Option Agreement (Feb 2015) Selected from multi‐criteria analysis of northern Australia: Port Hedland to Cape York Successful e
Slide 30: Legune Earthworks Trial
Legune Earthworks Trial For personal use only A B Legune Station (NT) A. Earthmoving trial B. Seepage trial C. Pond trial C Seafarms Group Financial Year 2016 Presentation 29
Slide 31: Project Delivery
Project Delivery For personal use only Distinct facilities Development Milestone Timing Quarantine Centre (licenced Stage 1 Feasibility Study Costing Q4 CY16 WA) Investment decision: go/no‐go Q4 CY16 Commence construction Dry Season 2017 Core Breeding Centre & Broodstock Maturation First farm is han
Slide 32: Grow-out Centre Legune
Grow‐out Centre Legune For personal use only Stage 1 footprint shown only 3 farms 1,080 ha production ponds 324 ha of internal recycling ponds Environmental Protection Zones Headworks infrastructure Power station & electricity distribution 59km roads Main water canals Headworks for 10,000 ha Village
Slide 33: Pilot Project
Pilot Project For personal use only Pilot project (160ha) at Seafarm’s Cardwell (QLD) operations commenced shortly after these operations were acquired in June of 2014. Where practical PSD’s production design, operational and management procedures have been utilised and implemented. Development of a
Slide 34: Pilot Project (continued)
Pilot Project (continued) For personal use only Developing and implementing Company’s marketing and merchandising range for both domestic and international markets. Activities include: Increasing domestic product SKU’s by 450% across a full range of retail products – deli, frozen and refrigerated. S
Slide 35: Research and Development (Breeding Program)
Research and Development (Breeding Program) For personal use only Early and strong commitment to Research and Development (Feb 2014) Dr Chris Mitchell leads PSD research programs which focus on producing larger more robust animals more quickly. Science based studies/actions have already demonstrated
Slide 36: Bynoe Harbour Breeding Facilities (Darwin)
Bynoe Harbour Breeding Facilities (Darwin) For personal use only Covered poly tunnels – Broodstock Maturation Centre Polytanks – Core Breeding Centre Seafarms Group Financial Year 2016 Presentation 35
Slide 37: Kununurra Processing Plant
Kununurra Processing Plant For personal use only Location identified – expression of interest to acquire lodged Stage 1 ‐ 70 tonnes per day Full‐scale 420 tonnes per day Processing consists of: removal of any non‐shrimp material separating soft and broken animals size grading weighing freezing packi
Slide 38: Hatchery
Hatchery For personal use only Separate modules Stage 1 will form first module for further stages Buffers between modules Each module capable of dry out Independent water treatment systems Each module is a large shed, with many internal tanks and sections for spawning, hatching, larval rearing, etc
Slide 39: Investment/Financing Overview
Investment/Financing Overview For personal use only Strong and growing interest Positive financing engagement In excess of 60 non disclosure agreements signed to date Parties include strategic and industry ‐ major domestic and international companies (US, Europe – UK and France, Asia – China, Japan,
Slide 40: Community, Social and Indigenous Engagement
Community, Social and Indigenous Engagement For personal use only Consultations & Briefings Completed: Kununurra community Business after Hours General community Shire, State Department offices Indigenous organisations Primary social impact on Kununurra community Strong community support Timber Cree
Slide 41: Seafarms Group: CO2 Australia Limited
Seafarms Group: CO2 Australia Limited For personal use only CO2 provides carbon and environmental services 100% owned subsidiary Profitable business providing cash flow for SFG Continues to secure new business March 2016: additional contracts under Commonwealth 20 Million Trees Programme Appointed A
Slide 42: Directors and Officers
Directors and Officers For personal use only Ian Trahar Executive Chairman Dr Chris Mitchell Executive Director Dallas Donovan Chief Operating Officer Harley Whitcombe Executive Director and CFO Seafarms Group Financial Year 2016 Presentation 41
Slide 43: Contact Us
For personal use only Contact Us Seafarms Group Limited Level 11, 225 St Georges Terrace Perth WA 6000 PO Box 7312 Cloisters Square WA 6850 T. +61 8 9321 4111 F. +61 8 9321 4411 E. info@seafarms.com.au Seafarms Group Financial Year 2016 Presentation 42