Seafarms Group Limited · ASX:SFG
Seafarms — Shareholder Meeting (November 2016)
40 slides from Seafarms's shareholder meeting presentation, Nov 25, 2016
Slide 1: ASX announcement: Addresses to Shareholders
Our Ref: SFG ASX Announce AGM Presentation 2016 (499) For personal use only 25 November 2016 ANNOUNCEMENT 499 Company Announcements Office Australian Securities Exchange Level 6 By ASX Online 20 Bridge Street Number of pages: 40 SYDNEY NSW 2000 (including this page) Dear Sir RE: ANNUAL GENERAL MEETI
Slide 2: Annual General Meeting November 2016
For personal use only Annual General Meeting November 2016 Transformation of Australia’s largest aquaculture shrimp producer into a global player Seafarms Group Limited
Slide 3: Disclaimer
Disclaimer This presentation is provided for information purposes only. The information in this presentation is in a summary form, does not propose to be For personal use only complete and is not intended to be relied upon as advice to investors or other persons. The information contained in this pr
Slide 4: Seafarms Group Limited Overview
Seafarms Group Limited Overview For personal use only 1. Chairman’s Overview 2. Overview of Seafarms Group 3. Operations 4. Project Sea Dragon Annual General Meeting – November 2016 3
Slide 5: Chairman's Overview
Chairman’s Overview For personal use only Welcome Ladies and Gentlemen to the Seafarms Group Limited Annual General Meeting. The 2016 financial year has been a big year for the Company with numerous significant milestones being achieved both operationally and advancing our world class Project Sea Dr
Slide 6: Chairman's Overview Cont.
Chairman’s Overview Cont. For personal use only Now to 2017 and our companies future. Market settings for Project Sea Dragon remain highly favourable; there is little doubt of strong demand for our planned production tonnage and size of animal. Engagement with potential investing partners, product o
Slide 7: Overview of Seafarms Group
For personal use only OVERVIEW OF SEAFARMS GROUP Annual General Meeting – November 2016 6
Slide 8: Overview of Seafarms Group
Overview of Seafarms Group For personal use only Australia’s largest producer of farmed shrimp/prawn. Seafarms Group Limited (Seafarms) is an ASX listed Australian agri‐food company, and the largest producer of farmed shrimp in Australia. The farms have been operating since 1988. Seafarms existing a
Slide 9: Operational Overview
For personal use only OPERATIONAL OVERVIEW Annual General Meeting – November 2016 8
Slide 10: 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 11: Production Overview
Production Overview For personal use only Production for 12 months to September stable at 1,405 tonnes. Black tiger production 59% of total production mix, adversely effected by externally sourced PL’s in January 2016. This situation has been rectified with all PL’s now being only sourced from Seafa
Slide 12: Operational Outcomes
Operational Outcomes For personal use only Black Tiger yields continue to improve: 19% improvement in AWG (average weekly growth) in last 6 months; 37% improvement in 2nd half (FY2016) yield. Production growth rates, FCR and yield in‐line with expectations and improving. Feed trial outcomes have res
Slide 13: Hatchery Outcomes
Hatchery Outcomes For personal use only Recent stockings completed with in‐house PL’s, no third party hatcheries used – important biosecurity milestone. Domestication commenced : Domesticated broodstock ponds in production at Innisfail; 2nd generation domesticated animals harvested in November 2016:
Slide 14: Domestication
Domestication For personal use only Domestication advancing to 2nd Generation. Domesticated Broodstock ponds activated in Innisfail with 4 Broodstock ponds stocked with 150,000 animals. 5 commercial ponds at Cardwell stocked with 2nd generation animals. Yields comparative to wild, as expected for G2
Slide 15: Safety
Safety For personal use only Dedicated Health Safety & Environment Manager appointed. 36% improvement in TIFR over the last 12 months: Continuing monthly improvements. Work commenced on corporate system and integration of HSE systems. 12 Month Cumulative Performance 80 70 Incidents per million hours
Slide 16: Employment & Productivity
Employment & Productivity For personal use only 96 FTE’s across aquaculture operations in Queensland . Qld operations being utilised as a training platform for PSD: Graduate program continues; 7 staff now either successfully completed or within the program. Continued focus on productivity improvemen
Slide 17: Marketing activities driving growth
Marketing activities driving growth For personal use only New brand tag line “Taste the Deliciousness” captures the brand essence ‐ best tasting and highest quality. Video content centred on “Simple & Delicious Prawn Recipe” videos have promoted ease of use and consumption. Consistent social media s
Slide 18: Sales & Distribution
Sales & Distribution For personal use only Sales to $27.4 million (12 months to September): Up 17% for the same period YoY; September Quarter Sales up 127% YoY; On the back of increased retailer demand. Maintaining year round fresh supply. Healthy distribution mix: Positive uptake by major retailers
Slide 19: Export Markets
Export Markets For personal use only Export shipments to Europe complete and first to Asia in progress. Chinese import authorisation achieved. First shipment in 2017. Whilst domestic pricing and demand remains strong, export markets are offering comparable pricing and significantly better terms of t
Slide 20: Cardwell & Project Sea Dragon
Cardwell & Project Sea Dragon Brief Overview For personal use only Early recruitment of technical expertise and the initiation of a Graduate Employment Program. Trials of different stocking densities and feeding regimes to optimise growth outcomes. Trials of different feeds (local and international)
Slide 21: Research & Development
Research & Development For personal use only The aim of our research and development programs is to establish an internal domestication and breeding program based upon genomics and traditional selective breeding. This links to our biosecurity and sustainable strategy of only placing domesticated (no
Slide 22: Founder Stock Facility - Exmouth
Founder Stock Facility ‐ Exmouth For personal use only Significant milestone for Project Sea Dragon. $1.2 million upgrade complete and site operational. Management & staff recruited. Initial stocking of wild animals completed. 63% animals passed initial disease screening. Spawning planned for Decemb
Slide 23: Project Sea Dragon
For personal use only PROJECT SEA DRAGON Annual General Meeting – November 2016 22
Slide 24: Overview
Overview For personal use only Continued progress since last update with project rapidly approaching investment ready status. Over A$70m spent and 5.5 years of work to date. Licences to operate: Key approvals steps in play as previously announced; Legune and Bynoe Harbour EIS’s lodged; Key secondary
Slide 25: Bankable Feasibility Study (BFS)
Bankable Feasibility Study (BFS) For personal use only The BFS commenced in Aril 2015 and remains on track to be completed by the end of 2016 calendar year. Federal Government has announced funding for the main access road to PSD. Seafarms has secured a lease of a WA Government owned major accommoda
Slide 26: Competitive Advantages
Competitive Advantages For personal use only Biosecurity: Superior product: Most important aspect to our risk management Larger size (28‐50grams rather than 15‐28grams); strategy and sustainability of this project; Only competition from wild catch where supply Industry leading approach and plan for
Slide 27: 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 (28‐50 grams). Currently being supplied by wild catch only with fisheries delivering variabl
Slide 28: 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 de
Slide 29: Project Sea Dragon: A north Australia Project
Project Sea Dragon A north Australia Project For personal use only Annual General Meeting – November 2016 28
Slide 30: Project Sea Dragon - Recap
Project Sea Dragon ‐ Recap For personal use only A$70 million+ invested on PSD to date and 5.5 years. 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 no
Slide 31: Grow-out Centre Legune
Grow‐out Centre Legune For personal use only Stage 1 footprint shown only: 3 farms; 1,120 ha production ponds; 411 ha of internal recycling ponds; Environmental Protection Zones. Headworks infrastructure: Power station & electricity distribution; 59km roads; Main water canals for subsequent stages;
Slide 32: Why is Cardwell Important for PSD
Why is Cardwell Important for PSD For personal use only When the Cardwell operation was acquired in 2014, the operation was only producing banana shrimps. Post acquisition Cardwell operations were redesigned (where practical) as a commercial pilot project for the Company’s PSD. As such the product s
Slide 33: Cardwell and PSD
Cardwell and PSD For personal use only Development of a number of operational management protocols including: Management programs to identify biological risk factors; Staff training programs implemented across all parts of the aquaculture business; Processing management systems; Scalable aquaculture
Slide 34: Cardwell and PSD (continued)
Cardwell and PSD (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
Slide 35: Breeding Program
Breeding Program For personal use only The breeding program delivers high quality, domesticated, selectively bred, specific pathogen free juveniles for PSD production system. Significant investment in infrastructure and associated R&D programs. Total investment will exceed A$125m and will take Seafa
Slide 36: Investment/Financing Overview
Investment/Financing Overview For personal use only Strong and growing interest. Appointment of former Australian Trade and Investment Minister Hon Andrew Robb AO as Strategic Advisor (November 2016). Seafarms being assisted by Pareto Securities (appointed September 2015) – the leading global invest
Slide 37: 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. Timb
Slide 38: 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; Appoin
Slide 39: 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 Annual General Meeting – November 2016 38
Slide 40: 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