Seeka provides Taniwhadragon Economic Summit Presentation
Growing, harvesting, packing and producing
premium New Zealand exports
2
Seeka
Taniwha Dragon | February
2017
A full orchard-to-market serviceAn Australasian business founded in rural New Zeala
nd
Grow, handle and market
▪
Kiwifruit
▪
Avocado
▪
Kiwiberry
Manufacture and retail
▪
Kiwi Crush, Kiwi Crushies
▪
Avocado oil
▪
Kiwifruit pollen
Import, ripen and supply
▪
Bananas
▪
Pineapple, Papaya
Wholesale
▪
Seasonal produce
Grow, handle and market
▪
Kiwifruit
▪
Nashi pears
▪
European pears
▪
Other produce
>
Apricots
>
Plums
>
Cherries
Largest grower of kiwifruit in
New Zealand and Australia
Largest grower of kiwifruit in
New Zealand and Australia
Australia’s largest
Nashi grower
Australia’s largest
Nashi grower
AustraliaAustralia
New ZealandNew Zealand
3
Seeka
Taniwha Dragon | February
2017
Publicly5listed companyTe Awanui Huka Pak is our largest New Zealand shareh
older
Nearly all growers are shareholders
▪
Just completed a 35year grower share programme
Large shareholders in our key markets
▪
Farmind Corporation of Japan
▪
Sumifru – Asian produce distributor
Many employees are shareholders
▪
5% of company shares owned by the employee share sc
heme
Our business modelFounded on relationships
4
Seeka
Taniwha Dragon | February
2017
Sustainable and profitable growthFocus on core strengths
▪
Integrated from orchard to market
▪
Kiwifruit business – the platform
Deliver value to stakeholders
▪
Helping landowners grow value
▪
Investments must earn cost of capital
Value accretive acquisitions
▪
Build on core strengths
▪
Pursue vertically integrated opportunities
▪
Extend geographical and produce spread
Target $300m market capitalisation
▪
Our growth aspiration
Our strategyNew Zealand’s “Premier Produce People”
Key operationsKey operations
Orcharding Post Harvest Retail Services
Seeka Australia
Orcharding Post Harvest Retail Services
Seeka Australia
6
Seeka
Taniwha Dragon | February
2017
Growing 10% of national export crop
▪
11m trays 2016
Grow landowner value
▪
900 hectares in production
Long term leases
▪
Develop and operate high5production orchards
Expert grower support
▪
Dedicated orchard managers
▪
Leading technical advice
Avocados and kiwiberry
▪
Diversifying landowner operations
▪
Includes new GEM avocado variety
Orcharding
New Zealand’s largest kiwifruit grower
Experienced managers servicing
all key orcharding areas from
Northland to Hawke’s Bay
Experienced managers servicing
all key orcharding areas from
Northland to Hawke’s Bay
7
Seeka
Taniwha Dragon | February
2017
Packing 22% of national kiwifruit crop
▪
33m trays 2016
Work for landowners to optimise orchard income
▪
High5tech grading and packing systems – Spectrim
▪
Advanced Inventory
Management Systems – AIMS
7 major facilities
▪
$110m in assets
Strong volume growth
▪
Investing in new capacity
Avocados and kiwiberry
Post harvest
A leading New Zealand post harvest operator
7
major facilities
Te Puke (3), Tauranga, Katikati, Coromandel, Kerikeri
8
Seeka
Taniwha Dragon | February
2017
Adding value to our products
▪
Delivering incremental grower returns
▪
Preferred supplier to key Australian retailers
▪
Expanding product mix
>
Avocados, kiwifruit, kiwiberry
Gateways to China and Japan
▪
Partnering with local experts
Domestic retail services
▪
Import and ripen bananas
>
Pineapples and papaya
▪
Auckland wholesale floor
>
Specialist Asian vegetables and seasonal produce
▪
Christchurch supply centre
Kiwi Crush and Kiwi Crushies
Retail services
Expanding product range and geographical reach
9
Seeka
Taniwha Dragon | February
2017
Using our expertise developed in New Zealand to grow our business250 hectares of orchards in Victoria
▪
Largest producer of kiwifruit and nashi
▪
Pears, apricots, cherries and plums
Integrated post harvest servicesHigh5value retail channels
▪
Suppling more products to more retailers
▪
Australia and Asia
100% Seeka New Zealand owned
▪
AUD $27m acquisition in 2015
▪
Includes 100+ hectares of bare land
Investing in growth
▪
New orchards, pack line and coolstores
Seeka Australia
We are Australia’s largest kiwifruit and nashi prod
ucer
Financial performanceGrowing our business
11
Seeka
Taniwha Dragon | February
2017
Seeka financial performanceStrong rebound in revenue on kiwifruit volumes – our
core business
Total kiwifruit
trays packed
Class 2GoldGreen
Revenue
19.4m
17.2m
17.8m
18.3m
22.1m
23.5m
6.3m
3.5m
0.8m
1.8m
4.4m
7.5m
27.1m
21.8m
19.6m
21.4m
27.8m
33.0m
$139 m
$108 m
$97 m
$116 m
$142 m
2011
2012
2013
2014
2015
2016
Australia
12
Seeka
Taniwha Dragon | February
2017
Seeka financial performanceForecasting lift in net profit after tax and earnin
gs per share
Earnings per shareNet profit after tax
$10.6m
$5.9m
$2.3m
$3.2m
$4.3m
$9.5m
$0.66
$0.41
$0.19
$0.22
$0.29
$0.59
2012
2013
2014
2015
2016
$0.59
to
$0.66
EPS guidance range
$0.59
to
$0.66
EPS guidance range
$10.6
m
to
$9.5
m
NPAT guidance range
$10.6
m
to
$9.5
m
NPAT guidance range
Forecast
117%
Forecast growth in EPS
117%
Forecast growth in EPS
Audited financials to be released Monday 27 Februar
y
Growing futuresGrowing futures
Connecting local landowners to high5value marketsConnecting local landowners to high5value markets
14
Seeka
Taniwha Dragon | February
2017
Close working relationship with our growers
▪
Long5term relationships founded on performance
▪
Nearly all growers are shareholders
▪
Open, honest and transparent
Strong connections with key markets
▪
Significant supplier in Australia
▪
Innovative supply programmes into China
▪
Proven working relationships with Asian produce handlers
Supporting vibrant rural communities
▪
Seeka is a rural New Zealand business with rural roots
▪
Supporting Maori landowners
▪
Delivering sustainable wealth for this and future gener
ations
Founded on relationshipsSupplying premium products to high-returning market
s
Questions
END
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