New Zealand King Salmon Investments Ltd. · NZX:NZK
New Zealand King Salmon Investments — FY2023 Earnings Presentation
24 slides from New Zealand King Salmon Investments's earnings presentation, March 2023
Slide 1: FY23 Financial Results
FY23 FINANCIAL RESULTS FY23 INVESTOR PRESENTATION
Slide 2: Disclaimer
DISCLAIMER The information in this presentation has been prepared by New Zealand King Salmon Investments Limited with due care and attention. However, to the maximum extent permitted by law, neither New Zealand King Salmon Investments Limited nor any of its directors, employees, shareholders nor any
Slide 3: Presenters
PRESENTERS Graeme Tregidga Ben Rodgers Grant Lovell Acting Chief Executive Chief Financial Officer GM Aquaculture Officer FY23 INVESTOR PRESENTATION 2
Slide 4: Executive Summary
EXECUTIVE SUMMARY • FY23 Net profit after tax of $1.9m. Performance was impacted by the mortality event in Q1FY23 this resulted in a higher mortality expense, lower available harvest and a decline in Salmon biomass at sea (Net loss after tax FY23H1 $24.5m). Performance improved in the second half of
Slide 5: FY23 Performance
01 FY23 PERFORMANCE FY23 INVESTOR PRESENTATION 4
Slide 6: FY23 Operational Highlights
FY23 OPERATIONAL HIGHLIGHTS FY23 GAAP NPAT 40.0 20.0 1.9 FY23 11.3 18.0 - 6,014 REVENUE OF (7.1) $167 (20.0) (73.2) (40.0) MILLION METRIC TONNES HARVESTED (60.0) DURING FY23 (80.0) FY19 FY20 FY21 FY22 FY23 (Jun) (Jun) (7 months - (Jan) (Jan) Jan) FY23 PRO-FORMA OPERATING EUROPE EBITDA JAPAN 30.0 4%
Slide 7: Our Sustainability Developments
OUR SUSTAINABILITY DEVELOPMENTS We continue to make progress on our sustainability journey: • Committed to reusable, recyclable or compostable packaging across our business - currently at 52% • Submission of second Modern Slavery Report • Preparation for the incoming Aotearoa New Zealand Climate Rep
Slide 8: Keeping Our Brands Prominent
KEEPING OUR BRANDS PROMINENT Creating innovative strategies for our markets: • Connecting with our end-users through: ► Focus on engagement with Ōra King Ambassadors / key foodservice customers ► Tight management of A&P spend to align with sales growth and margin targets in each market ► In-house di
Slide 9: Sales Performance
SALES PERFORMANCE Sales performance Our sales model continued to improve throughout the financial year. There was a strong focus Continuing to target branded premium markets on managing the supply to meet the demand in FY23 following a reduced harvest associated with the summer mortality. Supply cha
Slide 10: Fish Performance
FISH PERFORMANCE • The altered aquaculture model has been fully implemented with the summer of 2022/2023 being the first year without stocks held in the majority of our warm water sites. • At the end of FY23 the stocks performed well with significantly reduced mortality compared to previous summers.
Slide 11: FY23 Results
02 F Y 2 3 R E S U LT S FY23 INVESTOR PRESENTATION 10
Slide 12: FY23 Headline Financial Performance
FY23 HEADLINE FINANCIAL PERFORMANCE Group Financial Performance Volume Sold/Revenue – decreased on the prior year due to the mortality event which occurred late FY22 GAAP Pro-Forma* and Q1FY23 reducing the available biomass for sale. The impact of this was minimised through price NZ$000s FY23 FY22 %
Slide 13: Pro-forma EBITDA Comparison
PRO-FORMA1 EBITDA COMPARISON • Revenue is down on prior period due to a reduction in available harvest post the summer mortality event (Q4FY22 and Q1FY23) this was partially offset by improvements in pricing and product mix. • Cost of goods benefitted from a decrease in harvest volume on a total bas
Slide 14: Balance Sheet – Recapitalised and Deleveraged
BALANCE SHEET – RECAPITALISED AND DELEVERAGED Group Financial Position Jan-23 Jan-22 NZ$000s Audited Audited Following the $60.1m equity raise NZ King Salmon is now in a net cash position: Current Assets Cash and equivalents 19,221 2,913 • NZ King Salmon’s net bank (debt)/cash position has improved
Slide 15: Strategy Update & FY Outlook
03 S T R AT E G Y U P D AT E & F Y 2 4 OUTLOOK FY23 INVESTOR PRESENTATION 15
Slide 16: Strategic Initiatives - Right Sizing the Business
STRATEGIC INITIATIVES - RIGHT SIZING THE BUSINESS Initiative Update Status Fallow the Pelorus sea farms At the end of January 2023, three farms have been fallowed as • To mitigate mortality risk from warmer waters over planned. The remaining Waitata site is continuing to be used as summer we plan to
Slide 17: Market Guidance – FY24
MARKET GUIDANCE – FY24 Summer Mortality last 6 years in Metric Tonnes Pro-forma EBITDA guidance range for FY24 of $21m to $25m1 In confirming guidance NZ King Salmon notes: • FY24 Mortalities expense to date (1 February 2023 to 22 March 2023 ~$2m) is tracking significantly lower than the prior compa
Slide 18: Pathway to Future Growth - Blue Endeavour Update
PATHWAY TO FUTURE GROWTH - BLUE ENDEAVOUR UPDATE • Our ambition to significantly grow our fish volumes remains. Blue Endeavour is a part of this ambition • We will progress the project in a structured manner to minimise risk. This will include using the knowledge gained from our recent strategy chan
Slide 19: Appendices
04 APPENDICES FY23 INVESTOR PRESENTATION 18
Slide 20: Existing Sea Farm Resource Consents and Expiry
EXISTING SEA FARM RESOURCE CONSENTS AND EXPIRY • Five licenses are due for expiry or renewal at the end of 2024, all of which represent warmer, low Farms Region Expiry date Status flow licenses at lower producing sites • Crail Bay has not been farmed for around 10 years and is currently being used f
Slide 21: FY23 Reconciliation Between GAAP Results and Pro-forma Financials
FY23 RECONCILIATION BETWEEN GAAP RESULTS AND PRO-FORMA FINANCIALS Statutory Financial Fair Value IFRS 16 Lease FX Close-outs Pro Forma Statements Adjustments Adjustments Operating Financial FY23 Information NZD 000s Revenue 167,131 167,131 Cost of goods sold (164,657) 43,040 (1,750) (123,367) Fair v
Slide 22: FY22 Reconciliation Between GAAP Results and Pro-forma Financials
FY22 RECONCILIATION BETWEEN GAAP RESULTS AND PRO-FORMA FINANCIALS Statutory Financial Fair Value IFRS 16 Lease FX Close-outs Pro-Forma Statements Adjustments Adjustments Operating Financial FY22 Information NZD 000s Revenue 174,530 174,530 Cost of goods sold (177,774) 52,050 (1,968) (127,692) Fair v
Slide 23: Understanding Our GAAP Results
UNDERSTANDING OUR GAAP RESULTS The impact of NZ IAS-41 Agriculture, NZ IAS-2 Inventory and NZ IFRS-16 Leases Our GAAP results are impacted by Fair Value gains or losses arising from the application of NZ IAS-41 Agriculture, NZ IAS-2 Inventory and the classification of leases under NZ IFRS-16. The im
Slide 24: Appendix – Glossary of Terms
APPENDIX – GLOSSARY OF TERMS 1HY23 Financial results for the 6 months from 1 February 2022 to 31 July 2022 2HY23 Financial results for the 6 months from 1 August 2022 to 31 January 2023 FY23 Financial results for the 12 months from 1 February 2022 to 31 January 2023 FY22 Financial results for the 1
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