Seeka provides analyst briefing

Analyst Briefing Pack
FY 2016

2
Seeka
Analyst Briefing Pack | February
2017
Integrated orchard-to-market serviceAn international business founded in local New Zeal
and
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
Analyst Briefing Pack | February
2017
Large international shareholders
▪
Farmind Corporation of Japan
▪
Sumifru of Singapore
Te Awanui Huka Pak is our largest New Zealand shareh
older
Nearly all supplying New Zealand kiwifruit growers
are
shareholders
Many employees are shareholders
▪
4% of company shares owned by the employee share sc
heme
Our business modelFounded on relationships

4
Seeka
Analyst Briefing Pack | February
2017
Sustainable and profitable growthFocus on core strengths
▪
Integrated from orchard to market
▪
Kiwifruit business – the platform
Deliver value to stakeholdersValue 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 Business”

5
Seeka
Analyst Briefing Pack | February
2017
$10.4m NPAT
▪
Up 143%
▪
Driven by record New Zealand kiwifruit volumes and insurance settlement
$191m revenue
▪
Up 35%
$25m EBITDA
▪
Up 78%
65 cents EPS
▪
Up 124%
▪
18 cents related to 2015 insurance claim
20 cents dividend
▪
Related to FY2016
Group financial summaryAudited financial results
$Millions
2016
2015
Turnover
1
226.9
184.7
Revenue
191.3
142.1
EBITDA
2
24.8
13.9
Net profit before tax
13.6
5.2
NPAT
10.4
4.3
1. Turnover is revenue plus the value of sales Seeka
makes as an agent.
2. EBITDA is earnings before interest, tax, deprecia
tion, amortisation, impairments and revaluations.
148.6
184.7
226.9
115.7
142.1
191.3
2014
2015
2016
Turnover
1
& Revenue
$Millions
11.3
13.9
24.8
21.2
2014
2015
2016
EBITDA$Millions
EBITDAexcludinginsurance

6
Seeka
Analyst Briefing Pack | February
2017
Seeka financial performanceRevenue and packed kiwifruit volumes
Total kiwifruit
trays packed
Class 2GoldGreen
Revenue
Australia
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
$191 m
2011
2012
2013
2014
2015
2016
32.4mNew Zealand

7
Seeka
Analyst Briefing Pack | February
2017
Seeka financial performanceLift in net profit after tax and earnings per share
Earnings per shareNet profit after tax
$9.5
m
to
$10.6
m
NPAT guidance range
$9.5
m
to
$10.6
m
NPAT guidance range
Normalised EPS excludes 2016 insurance settlementNormalised EPS excludes 2016 insurance settlement
$0.59
to
$0.66
EPS guidance range
$0.59
to
$0.66
EPS guidance range
$5.9m
$2.3m
$3.2m
$4.3m
$10.4m
$0.47
$0.41
$0.19
$0.22
$0.29
$0.65
2012
2013
2014
2015
2016

8
Seeka
Analyst Briefing Pack | February
2017
Earnings accelerating on revenuesEarnings increasing faster than revenue growth
Earnings per shareRevenue
$108m
$97m
$116m
$142m
$191m
$0.47
$0.41
$0.19
$0.22
$0.29
$0.65
2012
2013
2014
2015
2016
+35
%
+62
%
Normalised EPS excludes 2016 insurance settlementNormalised EPS excludes 2016 insurance settlement

9
Seeka
Analyst Briefing Pack | February
2017
$4.1m insurance proceeds from Oakside fire
▪
$3.6m fruit loss mitigation settlement
▪
$0.5m fire insurance
$2.9m cost of grower share scheme
▪
Last year of 3Gyear scheme
Normalised EBITDAUp 46%
$Millions
2016
2015
EBITDA
2
24.8
13.9
Add backAustralian acquisition costs
and stamp duty
G
1.1
Grower relationship payment
1
G
4.0
Grower share scheme
2.9
2.5
DeductInsurance proceeds
4.1
5.5
Gain on sale of investments
0.4
0.1
Normalised EBITDA
3
23.2
15.9
1.In 2015 Seeka and its growers suffered extraordin
ary fruit loss as a result of the Oakside fire. The
associated financial loss was subject to an insuran
ce claim
settled 2016. In 2015 Seeka advanced $4.0m to growe
rs to maintain goodwill. This advance was substanti
ally recovered by insurance proceeds.
2.EBITDA is earnings before interest, tax, deprecia
tion, amortisation, impairments and revaluations.
3.Normalised EBITDA removes both extraordinary and
shortGterm gains and losses from Group EBITDA, such
as the 3Gyear grower share scheme.

10
Seeka
Analyst Briefing Pack | February
2017
65 cents basic EPS
▪
Up 124%
47 cents normalised EPS$73m net debt –
up $20m
▪
Investing in growth
▪
$34m NZ post harvest infrastructure
▪
$6m NZ strategic property
▪
$3m Australian orchards and infrastructure
$197m total assets
Earnings, net debt and net asset backingEarnings up 124%
2016
2015
Earning per share (cents)
65
29
Net debt ($m)
72.8
53.0
Total assets ($m)
197.3
164.3
Net asset backing per share
$ 4.88
$ 4.34
Normalised EPS excludes 2016 receipt of $3.6m insurance proceeds
22
29
6547
2014
2015
2016
Earnings per shareCents

11
Seeka
Analyst Briefing Pack | February
2017
$21.3m operating cash flow$17.7m normalised operating cash flow
▪
Up 177%
Operating cash flowInvesting in new Australian business
1. Seeka and its growers suffered extraordinary fru
it loss as a result of the
Oakside fire. The associated financial loss was sub
ject to an insurance claim
that was resolved in 2016. In order to protect Seek
a's growers from the
claim’s impact on income and cash flow, and to main
tain goodwill, Seeka
paid them $4.04m ahead of the insurance outcome. Th
is was expensed in
2015, with the claim payment of $3.63m recorded as
income in 2016.
$Millions
2016
2015
Operating cash flow
21.3
1.8
Add backAustralian acquisition costs
G
0.6
Grower relationship payment
1
G
4.0
DeductInsurance proceeds
1
3.6
G
Normalised cash flow
17.7
6.4

Key operating segmentsKey operating segments
Orcharding Post Harvest Retail Services
Seeka Australia
Orcharding Post Harvest Retail Services
Seeka Australia

13
Seeka
Analyst Briefing Pack | February
2017
Exceptional Green yields
▪
Impacted Green tray returns
Continued growth in Gold
▪
SunGold volumes recovering from Psa
$5.6m EBITDA
▪
Up 42%
New Zealand orcharding
Volume and market returns
Millions of trays
2016
2015
Green cultivars
(Hayward)
8.9
8.0
Gold cultivars
2.3
1.2
Total
11.2
9.2
Turnover / Revenue ( $m )
47.9
42.3
EBITDA ( $m )
5.6
4.0
GreenGoldTotal
6.2
6.8
6.8
8.0
8.8
1.2
0.1
0.4
1.2
2.3
7.4
6.9
7.2
9.2
11.1
2012
2013
2014
2015
2016
New Zealand kiwifruit grownMillions of class 1 trays

14
Seeka
Analyst Briefing Pack | February
2017
32.4m trays handled
▪
Up 17%
$26.8m EBITDAIncludes $2.9m cost of grower share scheme (2015: $2.5m)
▪
Last year of share scheme
Includes $3.6m insurance proceeds
New Zealand post harvest
Volume and profit increases
Millions of trays
2016
2015
Green cultivars packed
25.0
23.4
Gold cultivars packed
7.4
4.4
Total trays
32.4
27.8
Turnover / Revenue ( $m )
110.8
88.3
EBITDA ( $m )
26.8
13.3
21.8
19.6
21.4
27.8
32.4
2011
2012
2013
2014
2015
Class 1 & 2 kiwifruit traysMillions

15
Seeka
Analyst Briefing Pack | February
2017
$1.9m EBITDA
Avocado export revenue up
on volumes and market returns
Kiwifruit export revenue down on market returns
New Zealand retail servicesFlat earnings
$ millions
December
2015
December
2014
Turnover
53.7
52.2
Revenue
16.8
9.6
EBITDA
1.9
1.7
Seeka markets produce from Group operations plus imports and handles tropical fruits
> Sell all our avocados under our Seeka brand> Market kiwifruit in Australasia and work in collabor
ation
with Zespri to market kiwifruit in Asia
> Import and ripen bananas and other tropical fruits> Operate a wholesale fruit and vegetable market

16
Seeka
Analyst Briefing Pack | February
2017
First year of full operations$1.0m EBITDA$3.3m invested in growth
▪
New packhouse and coolstore
▪
Upgrading orchards
Business integrated into Seeka systemsFully funded by bank debt
Seeka AustraliaIntegrated orchard to market
Tonnes
2016
2015
Kiwifruit (tonnes)
1,915
G
Nash pears (tonnes)
1,432
G
Revenue ( $m )
15.2
1.2
EBITDA ( $m )
1.0
( 1.4)
Seeka is largest grower and supplier of
Australian kiwifruit and nashi pears
> Own the orchards, pack, market and distribute all the
produce throughout Australia
> Also grow European pears, apricots, plums & cherries

17
Seeka
Analyst Briefing Pack | February
2017
10 cents per share
▪
Fully imputed
▪
Payment date: 24 March
▪
Record date: 17 March
Dividend reinvestment plan applies20 cents per share fully imputed dividend relating to the 2016 financial year
Dividend announcement10 cents per share to be paid 24 March 2017
2014
2015
Cents per share
2016
8
8
9
10 10 10
Nov 14 Mar 15 Sep 15 Mar 16 Sep 16 Mar 17

18
Seeka
Analyst Briefing Pack | February
2017
$2.50$2.75$3.00$3.25$3.50$3.75$4.00$4.25$4.50$4.75
1 Feb
1 May
1 Aug
1 Nov
1 Feb
1 May
1 Aug
1 Nov
1 Feb
Share price84% total shareholder return over 2-year period
Announce Australian acquisition
8
cents dividend
$4.60
$2.70
10
cents dividend
9
cents dividend
$1.90 lift in price + 37 cents paid in dividends
10
cents dividend
10
cents
on 24 March

19
Seeka
Analyst Briefing Pack | February
2017
$40.9m capex
▪
$24.5m coolstore and packing infrastructure
▪
$6.0m land for head office and future post harvest site
▪
$2.4m plastic bins
▪
$3.3m Australian orchards and post harvest
▪
$4.7m upgrades for 2017
2017 further investment
▪
New packing machine
▪
Coolstore expansions
Capital expenditure – cash flowExpanding New Zealand infrastructure to support gro
wth
$Millions
2016
2015
Purchase of property, plant and equipment
40.9
16.4
1.0
1.6
5.6
16.4
40.9
2012 2013 2014 2015 2016
Capital expenditure$Millions

Welcome to Seeka

21
Seeka
Analyst Briefing Pack | February
2017
Seeka share performanceOutperforming NZX top 50 fund