Sanford Limited · NZX:SAN
Sanford — FY2013 Earnings Presentation
14 slides from Sanford's earnings presentation, November 2013
Slide 1: Investor Presentation | November 2013
Eric Barratt Managing Director Investor Presentation | November 2013
Slide 2: Forward looking statements
This presentation contains not only a review of operations, but also some forward looking statements about Sanford Limited and the environment in which the company operates. Because these statements are forward looking, Sanford Limited’s actual results could differ materially. Media releases, manage
Slide 3: 2013 profit was up 4% on 2012
2013 profit was up 4% on 2012 Revenue increased by 1% on last year EBITDA down 5% to $47.4m A number of sectors failed to perform to expectations in the second half of the year: Slow growth of Greenshell mussels in Marlborough Sounds Difficult tuna catching conditions in the Pacific Lower-than-expec
Slide 4: 12 months to 30 Sep income statement
NZ$’000 12 months 6 months 6 months 12 months to 30 Sep to 30 Sep to 31 Mar to 30 Sep 2013 2013 2013 2012 Sales revenue 462,644 218,069 244,575 459,957 EBITDA 47,357 19,929 27,440 50,012 Depreciation, amortisation & impairment (20,527) (11,341) (9,187) (18,320) Net interest (8,171) (3,886) (4,285) (
Slide 5: EBITDA (NZ$ millions)
Inshore - $4.9m decrease, jack mackerel volumes Greenshell mussels - $6.4m decrease, Marlborough effect Salmon - $9.2m increase, inventory reduction and price Skipjack tuna - $1.1m decrease, volume and price 55 50.1 50 9.2 0.5 47.4 EBITDA (NZ$ millions) 45 1.1 4.9 40 6.4 35 30 25 20 2012 EBITDA Insh
Slide 6: 2013 revenue of $463m up 1% from $460m in 2012
2013 revenue of $463m up 1% from Sales by Customer Location 2013 (2012) $460m in 2012 Other Pacific 1% (1) New Zealand 16% (13) Australia 17% (17) 2% (2) Revenue down 5.0% in the second Middle East 2% (4) Europe six months of the year Africa 4% (5) 11% (11) Other Asia High NZD remained a challenge 9
Slide 7: Hoki, Orange Roughy and Half Shell Mussel prices
Hoki Fillet prices remained stable for Orange Roughy prices partially reversed most of the year, with an 8% rise in the previous declines, increasing by 15% in second half the latter half of the year Hoki Block prices were stable Half Shell Mussel prices remained throughout the year relatively stabl
Slide 8: Ling, Smooth Dory and Skipjack Tuna prices
Ling Fillet prices remained stable Skipjack Tuna prices dropped throughout the period approximately 40% from record highs Smooth Dory Fillet prices were stable set in late 2012 for the year, increasing slightly in the second half Ling & Smooth Dory Fillets Skipjack Tuna 1.20 1.80 1.60 Index 1 Oct 20
Slide 9: Fishing Year Species October 2013 - September 2014
Effect on Percentage Sanford Sanford 2013/14 Change 2013/14 Quota Fishing Year Species Stock TACC from Catch Ownership % (tonnes) 2012/2013 Entitlement of TACC (tonnes) October 2013 Hoki HOK1 150,000 15% 3,076.0 15% - September 2014 Kingfish KIN7 15 114% 0.1 1% Leatherjacket LEA3 130 30% 0.9 3% Ling
Slide 10: Inshore and deepwater operations
Year for inshore segment started well, but last six months were challenging with results below expectations Strong demand and pricing for pelagic species Poor catches for jack and blue mackerel in last half of year Local market sales remain strong and ahead of expectations Fire in Timaru coldstore i
Slide 11: Aquaculture: Greenshell mussels and Salmon
Improved performance delivered, but still below expectations Positive market signs for Greenshell mussels and Salmon over next two or three years Poor growing conditions in Marlborough Sounds impacted volumes industry wide Mussel farming in Coromandel, Golden/Tasman Bay, Banks Peninsula and Stewart
Slide 12: Disappointing result from Pacific Tuna operation
Disappointing result from Pacific Tuna operation mirrored previous year Record prices not sufficient to offset lack of catch Fisheries closures continued to impact fishing opportunities Lack of vessel fishing time as major upgrades and improvements made: San Nikunau – resumed normal operations Sizea
Slide 13: Australian Seafood and profit improvement projects
Australian Seafood – Another challenging year, but signs that changes made to business model are leading to improved outcomes Returns from Weihai Dong Won Food Company Ltd (50% share) continue to improve Pure NZ Greenshell Mussels – slow growth in Marlborough Sounds meant record volume of orders gen
Slide 14: Sustainable Seafood
“Sustainable Seafood” has been Sanford’s promise to our customers since 1998. Those words remain at the heart of our business – from sea to food – over 100 years of sustained growth Sustainable Development Report has been produced annually over the past 14 years This year’s report includes details o