Slide 1: ASX Announcement: Half Year 2016 Presentation
Our Ref: SFG ASX Announce 2016 Half Year Report Presentation (505) 27 February 2017 For personal use only ANNOUNCEMENT 505 Company Announcements Office Australian Securities Exchange Level 6 By ASX Online 20 Bridge Street Number of pages: 35 SYDNEY NSW 2000 (including this page) Dear Sir Seafarms Gr
Slide 2: Operational Overview and Market Update – Project Sea Dragon
For personal use only Operational Overview for the 6 months ending 31 December 2016 and Market Update – Project Sea Dragon February 2017 Transformation of Australia’s largest aquaculture shrimp producer into a global player Seafarms Group Limited
Slide 3: Disclaimer
Disclaimer For personal use only This market update has been prepared by Seafarms Group Limited for professional investors. The information contained in this presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial pr
Slide 4: Seafarms Group Limited Overview
Seafarms Group Limited Overview For personal use only 1. Overview of Seafarms Group 2. Operations 3. Project Sea Dragon Seafarms Half Year 2016 Update 3
Slide 5: 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 aq
Slide 6: Financial Outcome for the months ending 31 December 2016
Seafarms Group Limited Financial Outcome for the 6 months ending 31 December 2016 For personal use only For the 6 months reporting period to 31 December 2016, Seafarms has reported a loss in the order of $10.86 m, reflecting the contributions of domestic shrimp and carbon operations with the full ex
Slide 7: Corporate Overview
Seafarms Group Limited Corporate Overview For personal use only ASX Listing Code SFG Market Capitalisation $108m (at 13 February 2017) Shares on Issue 1,151m Convertible Preference Shares 30m Cash, Debtors & Inventories $24.82m (at 31 December 2016) Current Debt (at 31 December $0.96m 2016) $8.50m L
Slide 8: Operational Overview
For personal use only Operational Overview Seafarms Half Year 2016 Update 7
Slide 9: 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 10: CY 2016 Production Overview
CY 2016 Production Overview For personal use only Production for the calendar year was 1,728 tonnes, up 304 tonnes on the prior year. Black tiger production 65% of total production. 2016 CY Production CY 2016 Production Mix 500,000 450,000 400,000 350,000 300,000 kgs 250,000 200,000 150,000 100,000
Slide 11: Operational Outcomes
Operational Outcomes For personal use only Black Tiger yields continue to improve: 37% yield improvement for CY 2016; 11% improvement on FCR. Production growth rates, FCR and yield in‐line with expectations and improving on both species. Feed trial outcomes have resulted in improved operating margin
Slide 12: White Spot Syndrome Virus (WSSV)
White Spot Syndrome Virus (WSSV) For personal use only Farms on the Logan River (South East Queensland) have been affected by WSSV and are subject to biosecurity orders and controls by Biosecurity Queensland. The affected area is some 1,200km south of Seafarms operational sites. Seafarms is NOT affe
Slide 13: Hatchery Outcomes
Hatchery Outcomes For personal use only All 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 being used as broodstock in ha
Slide 14: Safety
Safety For personal use only Disappointing outcome in December with 5 reported incidents. Agricultural mindset still continues in some divisions. Further systems and audits implemented to reduce risk in target areas. 12 Month Cumulative Performance 70 60 Incidents per million hours 50 40 30 20 10 0
Slide 15: Employment & Productivity
Employment & Productivity For personal use only 100 FTE’s across aquaculture operations in Queensland . Productivity up 15% across the Queensland Operations. Qld operations being utilised as a training platform for PSD: Graduate program continues; 7 staff now either successfully completed or within
Slide 16: Marketing activities deliver brand presence
Marketing activities deliver brand presence For personal use only Branded point of sale material rolled out Eastern‐Seaboard to Wholesalers and Fishmongers. Continued strong brand support in major supermarkets, including branding behind the glass, retailer point of sale and recipe cards. Establishme
Slide 17: Sales & Distribution
Sales & Distribution For personal use only Sales to $29.3m (12 months to December): December half sales up 50% YoY; On the back of increased production. Maintaining year round fresh supply. Healthy distribution mix: Positive uptake by major retailers; Maintenance of volume to the wholesale market. S
Slide 18: 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. First round of spawnings completed. 1 “clean” family produced. Seafarms Half Year 2016 Update 17
Slide 19: Project Sea Dragon
For personal use only PROJECT SEA DRAGON Seafarms Half Year 2016 Update 18
Slide 20: Project Timetable
Project Timetable For personal use only A number of factors, mainly outside the company’s influence and control, that affected the final investment decision timetable included the following: A change in Northern Territory Government; An unexpected requirement for a Bynoe Harbour Environmental Impact
Slide 21: Brief Overview
Brief Overview For personal use only Significant achievements: All technical work on Bankable Feasibility Study completed; Legune and Bynoe Harbour Supplementary Environmental Impact Statements lodged; Research and development programs continue to deliver enhanced operational performance outcomes. M
Slide 22: Brief Overview cont.
Brief Overview cont. For personal use only Cardwell commercial pilot project for PSD: Continued significant production and operational improvements achieved; Key economic metrics at Cardwell continue to significantly out perform underlying assumptions included in PSD Bankable Feasibility Study. PSD
Slide 23: Test Ponds Wet and Dry Seasons
Test Ponds Wet and Dry Seasons For personal use only A C Photo A & B ‐ trial pond site late January 2017 (Wet Season) Photo C – the site upon completion in August 2016 B Seafarms Half Year 2016 Update 22
Slide 24: 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 (40‐45grams). Currently being supplied by wild catch only with fisheries delivering variable
Slide 25: Need for New Shrimp Farming
Need for New Shrimp Farming For personal use only Strong underlying demand for shrimp 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 developing countries. Future demand g
Slide 26: Project Sea Dragon: A north Australia Project
Project Sea Dragon A north Australia Project For personal use only Seafarms Half Year 2016 Update 25
Slide 27: Competitive Advantages
Competitive Advantages For personal use only Biosecurity: Superior product: Most important aspect to our risk management strategy and Larger size (28‐50grams rather than 15‐28grams); sustainability of this project; Only competition from wild catch where supply Industry leading approach and plan for
Slide 28: Bankable Feasibility Study (BFS)
Bankable Feasibility Study (BFS) For personal use only All technical work on BFS completed, planning for detailed design phase commenced. As previously announced Stage 1 scope of work has been increased to include headworks for Stage 1, Stage 2 and subsequent headworks for the full 10,000ha project.
Slide 29: Grow-out Centre Legune
Grow‐out Centre Legune For personal use only Stage 1 footprint shown only: 3 farms; 1,080 ha production ponds; 324 ha of internal recycling ponds; Environmental Protection Zones. Headworks infrastructure: Power station & electricity distribution; 59km roads; Main water canals; Headworks for 10,000 h
Slide 30: Breeding Program
Breeding Program For personal use only The breeding program delivers high quality, domesticated, selectively bred, specific pathogen free juveniles for the PSD production system. Significant investment in infrastructure and associated R&D programs including programs with CSIRO and other leading inst
Slide 31: Investment/Financing Overview
Investment/Financing Overview For personal use only Strong and growing interest. Finalisation of financing/strategic advisor team consisting of Pareto Securities, Lazard and the Hon. Andrew Robb. Preliminary financing discussions in USA received well. Positive financing engagement: In excess of 60 n
Slide 32: Community, Social and Indigenous Engagement
Community, Social and Indigenous Engagement For personal use only Major Program of Consultations & Briefings during Public Display of EISs Kununurra community Timber Creek Daly (Katherine) Dundee Beach One‐on‐one briefings with key NGOs Legune EIS submissions 2 private citizens 2 Environmental NGOs
Slide 33: 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. Owns a substantial portfolio of emission credits. Well positioned for a resurgence in the carbon economy. Seafarms Half
Slide 34: 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 Seafarms Half Year 2016 Update 33
Slide 35: 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