Seafarms Group Limited · ASX:SFG
Seafarms — Commodities Group — Shareholder Meeting (February 2015)
27 slides from Seafarms's shareholder meeting presentation, Feb 26, 2015
Slide 1: ASX Announcement: Addresses to Shareholders, AGM
COMMODITIES GROUP LIMITED Our Ref: CGL ASX Announce 2014 AGM Presentations (430) 26 February 2015 ANNOUNCEMENT 430 Market Announcements Office Australian Securities Exchange Level 4 By ASX Online 20 Bridge Street Number of pages: 27 SYDNEY NSW 2000 (including this page) Dear Sir RE: ANNUAL GENERAL M
Slide 2: Chairman's Overview
CO2 Group Limited 2014 Annual General Meeting Presentations Chairman’s Overview. Key messages: Project Sea Dragon is a transformational project that industrialises known production systems, scientific pathways and clear market opportunities The project has demonstrated through our pre-feasibilit
Slide 3: Commodities Group Limited AGM Presentation February 2015
Commodities Group Limited AGM Presentation February 2015
Slide 4: Disclaimer
Disclaimer • This presentation has been produced by Commodities Group Limited (CGL or the Company) only and may contain forward looking statements that are based on management’s current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results
Slide 5: Commodities Group Limited – Corporate Overview
Commodities Group Limited – Corporate Overview Corporate Overview ASX Listing Code COZ Market Capitalisation $52M (at 23 February 2015) Shares on Issue 654 million Convertible Preference Shares 30 million Cash, debtors and inventories $12.2M (at 30 September 2014) Debt (at 30 September 2014) $2.9M F
Slide 6: COZ Operating Businesses
COZ Operating Businesses Commodities Group Limited (CGL) • Holds interests in two emerging internationally traded commodity areas: o Protein (Seafarms) o Carbon (CO2A) • Seafarms & CO2A o have separate operating boards which contain members of the CGL Board o each maintains separate financial accoun
Slide 7: CO2 Australia
CO2 Australia Carbon Business • Met objective of being cash‐positive for the Group. • All projects now successfully transitioned into Carbon Farming Initiative and producing ACCU’s, where required. • All projects have completed establishment phase and now in management phase • Biodiversity Fund proj
Slide 8: Carbon Market – State of Play
Carbon Market – State of Play • Carbon remains in a state of transition. • Australia’s carbon price has been replaced with the Federal Government’s “Direct Action” policy. • Direct Action includes the government auction system called “Emission Reduction Fund”; first auctions in April. • Internationa
Slide 9: Seafarms: Operational Report
Seafarms: Operational Report Contents • Current Operations o Strategy Roll Out o Operational Overview o Safety o Employment & Productivity o Capital Projects o Marketing o Looking Forward • Project Sea Dragon Commodities Group AGM Presentation February 2015 7
Slide 10: Current Operations
Current Operations • Hatcheries o Flying Fish Point Capacity of 27 million Post‐Larvae (PL) per run (up 68%) Domestication program R&D Project with ARC Research Hub for Advanced Prawn Breeding o Exmouth Biosecure breeding facility • Farms o Cardwell (Farms 1 and 2) 128 ha of ponds Proces
Slide 11: Strategy Roll Out
Strategy Roll Out • Acquired the Seafarm business in January 2014 • Began to move production to Black Tiger Prawns o Stocked in July 2014 for Christmas • Acquired Ingham farm in November 2014 o Stocked in November 2014 • Strong focus on data systems to improve visibility, analytics and drive $5/kg G
Slide 12: Operational Overview
Operational Overview Changing of product mix 2014A Harvest (1) 2015F Harvest (1) Black Tiger Prawns 463,680kg 43% Black Tiger Prawns 1,110,000kg 73% Banana Prawns 627,305kg 57% Banana Prawns 400,000kg 27% Total 1,090,985kg Total 1,510,000kg (1) Calendar year 2014 Stocking by Species 2014 Harvest by
Slide 13: Operational Overview
Operational Overview • Strong sales performance for Christmas 2014 – Sales circa $6 million for December – 34,000 retail ready branded packs in mass merchants – Distribution extended to Victoria and South Australia • NT sourced broodstock progeny performing well on Farm 3 and meeting expectations –
Slide 14: Operational Overview
Operational Overview • 3rd party supplied PL’s performed poorly overall o Reinforces the need to further expand hatchery capacity PL Supply Source 2014A 2015F 2016F External Hatcheries 36% 20% 0% Flying Fish Point 64% 80% 100% Commodities Group AGM Presentation February 2015 12
Slide 15: Safety
Safety • Focus on safety introduced to the organisation • 3rd party consultant commissioned • Total Injury Frequency Rate (TIFR) per million hours work target set for business o TIFR is down 75% since January 2014 Commodities Group AGM Presentation February 2015 13
Slide 16: Employment & Productivity
Employment & Productivity • International recruitment completed in January 2015 o Implemented new structure and processes • 74 FTE across the organisation o Productivity 16 tonnes per FTE o 20% above industry average (Source Department Agriculture, Fisheries and Forestry) Tonnes/FTE 18 16 14 12 Tonn
Slide 17: 2014 Capital Projects
2014 Capital Projects • Hatchery o 50% increase in capacity to 27 million PL’s per run o Development of under‐utilised shed space and existing water supply • Processing o Integrated some equipment from Ingham acquisition o Increase capacity to 20 tonnes per day o New Modified Atmosphere Packaging (M
Slide 18: 2015 Capital Projects
2015 Capital Projects On track with our two year refurbishment, maintenance and capital improvement program Achievements to date: o Pond refurbishment o First hatchery upgrade o Increased processing capacity to 20t per day Planned in the coming year: o Hatchery – no dependency on 3rd party, support
Slide 19: Marketing
Marketing • Strategies o Maximise brand exposure and engagement opportunities. o Maximise consumer acquisition opportunities and drive purchase frequency o Develop an innovation funnel which addresses the category barriers to entry and maximises value o Maximise channel performance, delivering true
Slide 20: Sales & Distribution
Sales & Distribution Sales Volume 350,000.00 300,000.00 250,000.00 200,000.00 150,000.00 100,000.00 50,000.00 0.00 Jan‐14 Feb‐14 Mar‐14 Apr‐14 May‐14 Jun‐14 Jul‐14 Aug‐14 Sep‐14 Oct‐14 Nov‐14 Dec‐14 Wholesalers & Distributors Supermarkets Retailers & Restaurants Commodities Group AGM Presentation Fe
Slide 21: Export Markets
Export Markets • Export approval currently pending • Discussions underway o Wholesaler/distributor in Europe o Global supermarket chain o Japanese sashimi wholesaler o Distributors in Taiwan and Hong Kong o Speciality stores in Hong Kong • Focus o High quality, niche supply o Provenance story to be
Slide 22: Looking Forward
Looking Forward • Continued improvement in production processes and outcomes • Efficiency drives and cost reductions in Maintenance Division • Investment in R&D – specifically domestication and breeding • Export market development and trial export orders • Continued brand development in the domestic
Slide 23: Pilot Project
Pilot Project • The Cardwell production hub as a “pilot” for Project Sea Dragon (PSD) has established important building blocks: o Farm Management Team o Systems and processes o Science o Brand product range expansion Commodities Group AGM Presentation February 2015 21
Slide 24: Project Sea Dragon
Project Sea Dragon Project Sea Dragon Creating a new world‐class aquaculture enterprise for northern Australia Commodities Group AGM Presentation February 2015 22
Slide 25: Project Sea Dragon – the Project
Project Sea Dragon – the Project Industrial scale integrated black tiger prawn • The $1.45 billion (capex) project will generate production forecast annual revenue of $1.6 billion and will comprise of a 10,000 hectare grow out • Industrialise production using proven farm supported by: technology ach
Slide 26: Project Sea Dragon – Project Status
Project Sea Dragon – Project Status • Access and Option Agreement finalised on preferred Northern Territory development site o Enables on‐ground work for bankable feasibility study o Enables approvals applications • Facilities will also be located in Northern Western Australia • Project can now proc
Slide 27: Project Sea Dragon – Project Status
Project Sea Dragon – Project Status Change land tenure to permit aquaculture on pastoral lease 3‐4 months Obtain Major Project Status with NT, WA and Federal Governments 6 months Environmental Impact Statement 18‐21 months • Initial approval for 5,000 ha • Agreed pathway for 10,000 ha Engineering Co
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