Sanford Limited · NZX:SAN
Sanford — Investor Day (March 2019)
41 slides from Sanford's investor day presentation, Mar 8, 2019
Slide 1: Sanford AFM Opening Investors & Analysts
EST. 1904 + AUCKLAND NEW ZEALAND SANFORD « SONS -Fishmonger. | Sanford | AFM Opening | Investors & Analysts | 8th March 2019
Slide 2: Disclaimer
DISCLAIMER This presentation contains not only a review of operations, but also some forward looking statements about Sanford Limited and the environment in which the company operates. Because these statements are forward looking, Sanford Limited’s actual results could differ materially. Media relea
Slide 3: Today
TODAY SOCIAL LICENSE • Welcome and introduction Volker The bigger picture BRANDING • Value growth through Sales and Marketing Andre INNOVATION • Asset rejuvenation / operational alignment Clement OPERATIONAL EXCELLENCE • People and Culture Karen ORGANISATIONAL • Our capital framework Katherine CAPAB
Slide 4: Slide 4
Slide 5: Pushing the value chain
Pushing the value chain 2014 2019
Slide 6: Facing interesting challenges and opportunities
Facing interesting challenges and opportunities Culture Infrastructure Consumer Climate Change Preferences New York Times, 4 March 2019
Slide 7: Our integrated approach
Our integrated approach Business Excellence SANFORD STRATEGY Framework PURPOSE VISON We share the natural AMBITION To be the Best Seafood goodness of our oceans with Company in the World $1 EBIT/KG by 2023 uncompromising care ORGANISATIONAL OPERATIONAL BRANDING SOCIAL LICENSE INNOVATION CAPABIILTY E
Slide 8: Great outlook through excellent points of differentiation
Great outlook through excellent points of differentiation New Zealand’s Exclusive Economic Zone - the 4th largest in the world - no overlap with another country’s EEZ Global protein consumption growth outlook (2014 – 2020) 18% 16.0% 15.6% 14.6% 15% Carbon footprint Seafood has less 12% impact on the
Slide 9: Mitigating risk through geographic spread, diversity and innovation
Mitigating risk through geographic spread, diversity and innovation
Slide 10: Value growth through sales, marketing and innovation
VALUE GROWTH THROUGH SALES, MARKETING AND INNOVATION SALMON MUSSELS FRESH FROZEN INNOVATION
Slide 11: Consumer Customer Value
_CONSUMER CUSTOMER VALUE
Slide 12: Knowing and listening to the Consumer
Knowing and listening to the Consumer
Slide 13: Being Deliberate Being Focused Being Brave
Being Deliberate Being Focused Being Brave 13
Slide 14: The Importance of the Story
The Importance of the Story 14
Slide 15: Auckland Fish Market
Auckland Fish Market 15 FRESH
Slide 16: Slide 16
Slide 17: n w x fe} a x @) ira > =) (a)
n w x fe} a x @) ira > =) (a)
Slide 18: Deliberate Execution and Education
Deliberate Execution and Education 18 FRESH
Slide 19: Slide 19
Slide 20: Slide 20
Slide 21: Branding and Product Mix
Branding and Product Mix 21 FROZEN
Slide 22: Mussels all about Diversification
Mussels all about Diversification 22 MUSSELS
Slide 23: Slide 23
Slide 24: Innovation Takes Many Forms
Innovation Takes Many Forms Science Based Technical/Process NPD Based INNOVATION
Slide 25: Asset Rejuvenation / Operational Alignment
ASSET REJUVENATION / OPERATIONAL ALIGNMENT SALMON MUSSELS FRESH FROZEN INNOVATION
Slide 26: ‹#›
‹#›
Slide 27: Salmon Farming and Processing
Salmon Farming and Processing Focus areas - Volume growth and size consistency for USA market - Social licence - Bluff optimisation - Smolt optimisation - Dissolved oxygen management Asset Rejuvenation ⁻ Replacement accommodation and feed barge $5m approved ⁻ In progress– replacement transfer boat ⁻
Slide 28: Slide 28
Slide 29: Mussel Farming and Processing
Mussel Farming and Processing Focus areas - Volume growth for diversification - Algal bloom management - Deployment of SPATnz spat Asset Rejuvenation - Farming assets optimisation – geographical diversification - Farming vessel capacity - Hatchery capacity and diversification MUSSELS
Slide 30: ‹#›
‹#›
Slide 31: Wild catch - Inshore
Wild catch - Inshore Focus areas - Efficiency and quality - Supply chain effectiveness - North Island processing optimisation - South Island processing optimisation - Pelagic sale to Pelco completion Asset Rejuvenation ⁻ San Waitaki rebuild $0.8m winches approved ⁻ Orange Roughy filleting automation
Slide 32: Slide 32
Slide 33: Wild catch - Frozen
Wild catch - Frozen Focus areas - Increase value cascade for Hoki - Product quality - Compliance framework - Crew engagement - Labour shortage and pay issue Asset Rejuvenation - Scampi vessel replacements 2020-2024 - Long liner replacement - Factory trawlers upgrades to focus on efficiency and quali
Slide 34: People and Culture
PEOPLE AND CULTURE SALMON MUSSELS FRESH FROZEN INNOVATION
Slide 35: Creating a safe and high performing workplace culture
Creating a safe and high performing workplace culture Focus on workplace culture and capability to deliver strategy
Slide 36: Our Capital Framework
OUR CAPITAL FRAMEWORK SALMON MUSSELS FRESH FROZEN INNOVATION
Slide 37: $120m investment over 2 years
$120m investment over 2 years FOUNDATIONAL TRANSFORMATIONAL ASPIRATIONAL Product & Technology Innovation Social License $10M Channel Development Development $4M Operational $3M Excellence Organisational $55M Brand Capability Development $4M SanCore $10M $15M F19 F21
Slide 38: Integrated Capital Management Plan
Integrated Capital Management Plan 1. Strong Balance Sheet [Gearing FY18 26.6%) 2. Debt Headroom - $80m NZD + Source of Funds [$152m Debt Sept FY18] $120m capital programme funded by:- Impact on 3. Debt/EBITDA Target 1.75x - Net operating cash-flow - Financing cash-flow Sanford’s Can flex to 2.0x fo
Slide 39: SanCore Investment
SanCore Investment A change management programme and information technology Value driven Commodity and platform that supports the strategy Volume driven Consumer centric Production centric Cost effective model People Processes Lowest cost model Competitive wage Minimum wage Simplify currently comple
Slide 40: Integrated Business Thinking & Reporting: Growing Value
INTEGRATED BUSINESS THINKING & REPORTING: GROWING VALUE Improving our disclosure - a journey of continuous improvement
Slide 41: ns a= SOUTE AMERICAN
ns a= SOUTE AMERICAN cal JAPANESE COCKTAILS- BEER- SHI} with Bieseace ti), jit. \ ee (6000 KAR Ika BOWL ALAND