Sanford Limited · NZX:SAN
Sanford — Shareholder Meeting (2021)
18 slides from Sanford's shareholder meeting presentation, 2021
Slide 1: Annual Shareholders Meeting 2021
ANNUAL SHAREHOLDERS MEETING Sanford CEO: Peter Reidie 2021
Slide 2: FY21 Results Snapshot
FY21 RESULTS SNAPSHOT A continuation of the impacts of Covid-19 1 Catch/Harvest Volume Sales Volume Revenue Adjusted EBIT 103.0k GWT 113.5k GWT $489.6M $23.3M -8.2 % + 7.4% 4.4% -39.1 % EBIT GW kg Adjusted EBITDA1 NPAT2 EPS No Final Dividend 21₵ $52.6M $16.2M 17CPS -15₵ /kg -20.6% -16.5% -3₵ Flat 1.
Slide 3: Covid had a dramatic impact on global foodservice channels
COVID HAD A DRAMATIC IMPACT ON GLOBAL FOODSERVICE CHANNELS 3
Slide 4: Supply Chain
SUPPLY CHAIN ibe SANFORD
Slide 5: Covid caused a sudden drop to previously stable earnings
COVID CAUSED A SUDDEN DROP TO PREVIOUSLY STABLE EARNINGS Adjusted EBIT by financial year 80 -41% 63.4 63.7 64.7 64.8 60 -39% 38.3 $m 40 23.3 20 0 FY 16 FY 17 FY 18 FY 19 FY 20 FY21 5
Slide 6: Revenue (+4% YoY) is recovering but timing varies by division
REVENUE (+4% YOY) IS RECOVERING BUT TIMING VARIES BY DIVISION • Wildcatch: annual growth +2%; H2 growth +9%; Commodity prices recovering but not yet back to pre Covid levels. • Mussels: annual growth -16%; Covid impacts later than other divisions but recovery seen in Q4 in both volume and price. • S
Slide 7: Seafood inventory value reduced, particularly for mussels
SEAFOOD INVENTORY VALUE REDUCED, PARTICULARLY FOR MUSSELS Inventory volume (PWT) Inventory value** YOY decrease -14% YOY decrease -21% $80.0 14.0 $74.8 $72.2 $70.0 $6.3 12.2 $6.4 12.0 0.5 $58.9 10.4 10.4 $60.0 9.8 $20.2 10.0 2.8 0.5 0.3 $6.0 0.1 tonnes 000’s 1.4 $50.0 $45.1 $30.2 2.9 $1.0 $13.4 8.0
Slide 8: EBIT performance heavily impacted by foodservice exposure over first 3 quarters
EBIT PERFORMANCE HEAVILY IMPACTED BY FOODSERVICE EXPOSURE OVER FIRST 3 QUARTERS Key drivers of Adjusted EBIT change 45 Covid Price Impact -$23m Covid Cost Impact -$3m Strategy in Action +$10m 40 35 30 21 $m 25 2 2 3 20 38.3 3 2 15 2 1 4 23.3 10 5 FY20 Adj EBIT Mussel Pricing Salmon stock Increased F
Slide 9: Debt and inventory managed, driving improved operating cashflow
DEBT AND INVENTORY MANAGED, DRIVING IMPROVED OPERATING CASHFLOW Net Debt Inventory 200 $80.0 $184 $75 $179 $72 180 $70.0 160 $152 $60.0 $59 $138 140 $50.0 120 $45 $m $m 100 $40.0 80 $30.0 60 $20.0 40 $10.0 20 - $- Sep-18 Sep-19 Sep-20 Sep-21 Mar-20 Sep-20 Mar-21 Sep-21 9
Slide 10: Framework for Strategic Planning
FRAMEWORK FOR STRATEGIC PLANNING 10
Slide 11: FY22 Business Plan – Initiatives to enable our recovery
FY22 BUSINESS PLAN – INITIATIVES TO ENABLE OUR RECOVERY P R I O R I T I ES K E Y I N I T I AT I V ES • Continue momentum in the US, Asia & Europe building market and country diversification 1. Rebuild mussel • Develop alternate revenue streams – marine extracts profitability • Partner with Kotahi to
Slide 12: Environmental, Social, Governance (ESG) FY21 Highlights
ENVIRONMENTAL, SOCIAL, GOVERNANCE (ESG) FY21 HIGHLIGHTS* Climate • Science aligned emissions reduction pathway prepared.** • Seafood sector wide climate adaptation strategy underway. • Climate risk planning and TCFD a focus for FY22. • Opportunities - Seafood’s light carbon footprint. Ocean and Envi
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Slide 16: Sanford
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Slide 17: Sanford
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Slide 18: Thank you.
SANFORD THANK YOU.