Seafarms Group Limited · ASX:SFG
Seafarms — Shareholder Meeting (November 2019)
46 slides from Seafarms's shareholder meeting presentation, Nov 28, 2019
Slide 1: ASX Announcement: Seafarms releases investor presentation for AGM
ASX Announcement | 28 November 2019 Seafarms Group Limited (ASX:SFG) (SFG Announcement 635) Seafarms releases new investor presentation for AGM Investment Highlights Seafarms Group will present a market update at its Annual General Meeting (AGM) in Melbourne on Thursday, November 2019 The presentati
Slide 2: For further information, please contact
For further information, please contact: Seafarms Group Mr Harley Whitcombe Company Secretary P: (08) 9216 5200 Media Enquiries Investor Enquiries True North Strategic Communication The Capital Network Bridget McCue Julia Maguire P: +61 447 298 752 P: +61 419 815 386 E: bridget@truenorthcomm.com.au
Slide 3: Annual General Meeting & Market Update - November 2019
Seafarms Group Limited (ASX:SFG) - Annual General Meeting & Market Update - November 2019 Australia's largest prawn producer: Transforming into a high quality, low-cost global producer 1
Slide 4: Legal disclaimer
Legal disclaimer This presentation is provided for information purposes only. The information in this presentation is in a summary form, does not propose to be complete and is not intended to be relied upon as advice to investors or other persons. The information contained in this presentation was p
Slide 5: Seafarms Group Limited (ASX:SFG)
Seafarms Group Limited (ASX:SFG) Australia's largest prawn producer: Transforming into a high quality, low-cost global producer Seafarms Group Limited (ASX:SFG) ”Seafarms” or “the Company” is a sustainable aquaculture company, producing the premium Crystal Bay® Prawns and developing the Project Sea
Slide 6: Acknowledgment of Country
Acknowledgment of Country Seafarms would like to begin by acknowledging the Traditional Owners of the land on which we meet today; the Wurundjeri, Boonwurrung, Taungurong, Dja Dja Wurrung and the Wathaurung people of the Kulin nation, and pay our respects to their Elders past and present. Seafarms i
Slide 7: Contents
Contents Part 1 Overview Chairman’s address Corporate overview Queensland operations Project Sea Dragon FY19 financial highlights FY19 operational overview FY19 production overview Operational improvements Part 2 Project Sea Dragon Key milestones Competitive advantages Global opportunity Diversifica
Slide 8: Chairman's address
Chairman’s address “Welcome Ladies and Gentleman to Seafarms Group Limited (ASX:SFG) Annual General Meeting. The 2019 financial year (July 2018 – June 2019) has been a further significant year for the Company. During the year Seafarms Group officially opened its Project Sea Dragon (PSD) development
Slide 9: Chairman's address
Chairman’s address “Project Sea Dragon (PSD) industry partner is Nissui - the world’s second largest seafood company globally continues to provide strong support in the Company’s endeavours of developing its world class PSD – with a further investment of over $3 million bringing Nissui’s total inves
Slide 10: Seafarms' corporate overview
Seafarms’ corporate overview Seafarms has a market capitalisation of over A$170 million and is currently Australia’s largest producer of farmed prawns, with significant operational aquaculture expertise and a demonstrated track record of growth and innovation. ASX Listing Code SFG Seafarms employees
Slide 11: Existing operations: Queensland
Existing operations: Queensland Seafarms existing Queensland operations are Australia’s largest producer of farmed prawns. This has been achieved in its first five years of operational management which has lifted production from around 600 tonnes in 2013 to over 1,770 tonnes today. The Queensland op
Slide 12: Project Sea Dragon (PSD): Northern Territory
Project Sea Dragon (PSD): Northern Territory PSD is a world class industrial scale Tier 1 project with an operating life of 90 years which will be developed and constructed in stages with production ponds located at Legune Station in the Northern Territory. PSD will deliver a significant volume of a
Slide 13: Seafarms has successfully de-risked PSD
Seafarms has successfully de-risked PSD Sovereign and regulatory Industry sponsorship & partnership • Major Project Status with Australian, WA and NT Government • Secured industry partner investments totalling approximately • Project Development Agreement (State Agreement) with NT A$110M (Nissui and
Slide 14: FY19 Financial overview
FY19 Financial overview Seafarms Group achieved revenue of $24.4 million over the 2019 financial year while supporting continued investment into Project Sea Dragon 12
Slide 15: FY19 Financial highlights
FY19 Financial highlights As previously stated the Queensland operations are primarily intended to demonstrate and trial operating concepts for PSD– a commercial pilot approximately 40% of the size of the initial PSD development and most importantly provide the platform to recruit a core operational
Slide 16: FY19 Operational overview
FY19 Operational overview Ongoing improvements across our Northern Queensland operations and production continues Queensland farms at Cardwell are a fully vertically • Undertake PSD R&D research projects in relation to integrated business and have been operational for over stocking rates, feed mixtu
Slide 17: FY19 Production overview
FY19 Production overview Production for the financial year was 1,770 tonnes, up 320 tonnes (22%) on FY2018. Product/species mix was changed to accommodate wild broodstock supply. Second half production in line with expectations with significantly larger animals (15% larger YoY). 2019 Production 400,
Slide 18: Operational improvements
Operational improvements A further A$3.9M of PSD R&D trials were undertaken during FY19 (A$3.4M in FY18). The farms significantly improved biosecurity outcomes with no biosecurity related losses. As a consequence of our on-farm R&D, a major reconfiguration of Farms 1 & 2 has occurred. Broodstock mat
Slide 19: Addressing the wild broodstock challenge
Addressing the wild broodstock challenge Wild broodstock, also known as “breeding prawns” remain the dominant source of breeders for Queensland operations and the industry as a whole. Industry dependence on wild animals is driven by high cost, long-lead times and scale of infrastructure required to
Slide 20: Seafarms' solutions for wild broodstock
Seafarms’ solutions for wild broodstock Seafarms is solving the broodstock challenge through multiple approaches: 1. Domestication program at Flying Fish Point (Qld) as part of the ARC Hub Program; 2. Developing better management and husbandry practices to improve fecundity of broodstock; 3. SPF and
Slide 21: Domestication and breeding
Domestication and breeding Entrance to the Exmouth Founder Stock Centre Exmouth • Seafarms has produced its first generation of SPF families; • This is the second generation of prawns produced at the facility; • Significant milestone for Project Sea Dragon; • Founder Stock Centre (FSC) is at capacit
Slide 22: Breeding research and development (R&D)
Breeding research and development (R&D) World leading research with James Cook University, CSIRO, University of Sydney and Australian Genome Research Facility (ARC Hub): • Work is placed in commercial context focused at FFP hatchery and also on-farm. Domesticated east coast prawns now undergoing tri
Slide 23: Workplace health and safety
Workplace health and safety Further significant improvement in workplace health & safety performance with a 59% reduction in incidents Seafarms Group Jobs Headcount 6 23 21 Seafarms current employment 197 Seafarms currently employs approximately 234 people including consultants, Queensland advisers,
Slide 24: Investment in export market development
Investment in export market development Through its Queensland operations Seafarms commenced significant investment in export market development for PSD (>$4.5M in FY 2019). Noting all initiatives are retrofitted to equipment and processes for Australian market requirements, they are undertaken to e
Slide 25: Nissui / Crystal Bay Prawn export packaging
Nissui / Crystal Bay® Prawn export packaging Seafarms completed its first delivery of Black Tiger Prawns to Japanese seafood giant Nissui in October 2019. The delivery is under an offtake agreement announced last May2018. Seafarms will supply 15% of its Queensland production to Nissui, which is a st
Slide 26: Australian domestic marketing initiatives
Australian domestic marketing initiatives In consideration of the insight that freshness and Australian are key purchase drivers, the “100% Aussie Freshness” message was driven at point of purchase throughout the fresh Crystal Bay® Tigers and Crystal Bay® Prawns seasons. The winter Crystal Bay ® Pra
Slide 27: Project Sea Dragon (PSD) Overview
Project Sea Dragon (PSD) Overview Seafarms’ proposed, large-scale, integrated, land-based prawn aquaculture project. Currently being developed in northern Australia. 25
Slide 28: PSD: Key milestones in 2019
PSD: Key milestones in 2019 Completed first black tiger export to Nissui – a significant Secured a number of PSD partners including: milestone in the PSD development strategy. • Nissui second largest seafood company globally. At the Exmouth Founder Stock Centre: Investment, offtake, technical and in
Slide 29: PSD: Strong competitive advantages
PSD: Strong competitive advantages Strong competitive advantage over the Asian black tiger where sourcing white spot (WSSV) free, genetically diverse broodstock is becoming increasingly difficult. Australia enjoys a genetically diverse wild black tiger population that are distributed over a very bro
Slide 30: PSD: Legune Station
PSD: Legune Station An Ideal Location for Mass-Production of High-Quality Seafood Based upon study originally done by CSIRO from Pilbara to Cape York but Seafarms spent a further A$1M on a more detailed review. Pristine environment with no other aquaculture operations. Multiple crop location as wate
Slide 31: PSD: Estimated annual revenue
PSD: Estimated annual revenue Expected to be more than $3 billion at full production Complete end to end control of operations will allow SFG to ensure absolute biosecurity and process control. A fully vertically integrated project. Key Process Steps in PSD Prawn Aquaculture 1 2 3 4 5 Eggs, Genetics
Slide 32: PSD: Queensland operations comparison
PSD: Queensland operations comparison Table below highlights a broad comparison between PSD and Queensland operations. It should be noted that PSD yield assumption is considered conservative – given current Queensland operational results, particularly Farm 3 which more assembles PSD design features.
Slide 33: PSD: Seafarms Farm 3
PSD: Seafarms Farm 3 A Significant Upgrade on Farms 1 and 2 As highlighted below, from a production perspective Farm 3 more closely simulates PSD farms. Farm 1/2 Farm 3 PSD First new development in Age of Assets +30 years +19 years Australia since circa 2000 Produce own Post Larvae (PLs) Settl
Slide 34: PSD: Exmouth Founder stock centre expansion
PSD: Exmouth Founder stock centre expansion Temporary shade-cloth facilities built last year to be decommissioned at Stage 2, with provision for an extra 3 indoor facilities Nov 2019, three large indoor facilities (FSC 1 2 & 3) under construction. FSC 1 is currently being commissioned Photo taken Ju
Slide 35: Founder stock centre: Construction Nov 2019
Founder stock centre: Construction Nov 2019 The building works and fit-out for building 1 at Exmouth FSC 1 fitted out and commissioning in progress is complete, commissioning has commenced; buildings FSC2/3 erected. Water treatment systems continue to be developed and upgraded with installation of n
Slide 36: Bynoe Harbour - Broodstock Maturation Centre
Bynoe Harbour - Broodstock Maturation Centre Local contractors were engaged to perform Earthworks for the processing area finished to final levels & compaction earthworks and fencing for the site • Earthworks completed including: • access roads; • inlet and outlet ponds with liners; • residential si
Slide 37: Legune Grow-Out Centre Regional Map
Legune Grow-Out Centre Regional Map 35 35
Slide 38: Legune Grow-Out Centre
Legune Grow-Out Centre Planned Early Works Completed Stock piles of quarried material Early Works undertaken to de-risk construction. Various sizes of rock have been quarried graded and stockpiled to ensure material is available for first bulk earthworks contracts. Access road built to enable access
Slide 39: Processing Plant
Processing Plant Progressing Design and Development Design of the Processing Plant has advanced – site plan Development and works approvals granted. completed. Ground water licence granted. Processing equipment specification for the process plant is being refined based on feed-back of east coast pro
Slide 40: Cardwell settlement ponds
Cardwell settlement ponds Farm 1 Farm 2 Newly constructed incoming water settlement ponds at Farm 1 and Farm 2 This retrofit improves water quality and reduces biosecurity risk 38
Slide 41: Seafarms Group's Outlook
Seafarms Group’s Outlook Seafarms Group forecasts strengthening market conditions to underpin demand for our operations as we transform into a high quality, low-cost global prawn producer • Seafarms currently produces around 1,800 tonnes of prawns per annum • Following funding Seafarms expects to ge
Slide 42: Market conditions: Forecast to strengthen
Market conditions: Forecast to strengthen Strong growth in demand for prawns both domestically and internationally, in particular in Asia where distributors are seeking more product more quickly, means Seafarms’ PSD is well poised to take advantage of market conditions. Seafarms has already generate
Slide 43: PSD: The US$200B global opportunity
PSD: The US$200B global opportunity A growout pond at Seafarms’ Cardwell farm Global aquaculture market to grow by US$58 billion up to 2020 to over US$200billion. Middle class population growth and per capita consumption increase of seafood particularly China. Growth of Asian middle class: • Almost
Slide 44: PSD: The US$200B global opportunity
PSD: The US$200B global opportunity Importantly shrimp already part of Asian diet. As at 1st of January 2019 China has removed all tariffs on Australian seafood exports. PSD will be a low cost producer and the only producer in the developed world with significant volume of a premium product (150,000
Slide 45: Project Sea Dragon: Advancing to funding
Project Sea Dragon: Advancing to funding Seafarms has successfully de-risked PSD over the 2019 financial year and secured all the necessary government and indigenous approvals. Seafarms is now ready to progress to commencing the first steps of Project Sea Dragon when funding is secured. Subject to t
Slide 46: Seafarms Group Limited (ASX:SFG)
Seafarms Group Limited (ASX:SFG) Media Enquiries T: +61 8 9216 5200 True North Strategic Communication E: info@seafarms.com.au Bridget McCue W: www.seafarms.com.au P: +61 447 298 752 E: bridget@truenorthcomm.com.au Level 11, 225 St Georges Terrace Perth WA 6000 Investor Enquiries The Capital Network