Seeka provides stakeholder update

Stakeholder Update
October 2017

2
Chairman’s introduction
Chief Executive’s business performance update
Future direction – new ventures
Questions


Agenda

Introduction
Chairman – Fred Hutchings

4
We grow and supply tasty and nutritious
produce to the world
An international business based in Te Puke
We deliver premium returns to our growers
and stakeholders
To do this, we think of new ways to deliver on
our brand promise
Our commitment: Orchard to market excellence
Safety First Founded on relationships
Inspirational people Quality obsession
Growing futures Independently ingenious

5
Our business
NEW ZEALAND
ORCHARD DIVISION
NEW ZEALAND
RETAIL
SEEKA AUSTRALIA
•Kiwifruit, kiwiberry and
avocados
•Orchard leasing –
short and long term
•Orchard management
•Pollen
•Equipment for harvest
and operational
support
•On orchard technical
advice
•Harvest coordination
•Quality management
•Packing
•Cool storage
•Inventory management
•Logistics
•Laboratory maturity
testing
•Delicious Nutritious
Food Company –
downstream value add
•Bananas, tropical
fruit
•Wholesale
•Retail service
provision
•Delivery to customer
•High value premium
produce, kiwifruit,
nashis, pears and
other fruit
•Integrated fruit supply
to key Australian and
export customers
•Growth focus
•New variety
development
NEW ZEALAND
POST HARVEST

6
The BIG produce numbers in 2017
31m 92.4m 3m
Grow
kilos of
kiwifruit in
New Zealand
kilos of
kiwifruit in
New Zealand
kilos of kiwifruit
in Australia
Pack, store,
send to export
2.5m
kilos of pears
in Australia
8.5m trays 0.8m trays
25.5m trays
Produce,
handle and sell
Produce,
handle and sell
2.7m
kilos of
avocados in
New Zealand
0.5m trays
Pack, store,
send to export

7
Financial performance
Six months to 30 June 2017, unaudited
EBITDA $21.9m increase by 38% on pcp
EPS 69 cents increase by 53% on pcp
NPAT $11.1m increase by 56% on pcp
Full year NPAT from
operations
down by up to 15%

8
Improvements from Seeka Australia’s earnings
▪EBITDA $3.4m vs. $1.52m pcp
▪Successful acquisition and business is in profit
Successful completion of 2016/17 New Zealand avocado season
Drivers of higher net profit

9
Drivers
▪Lower Hayward volumes harvested and in store at 30 June (Week 27)
>6.6m trays in 2017 vs. 10.8m trays in 2016
▪Lower anticipated avocado volumes in 2017/18 harvest

Down by up to 15% on 2017 operational earnings of $7.8m [as
signalled in December 2016].
Forecast unchanged

10
Capital expenditure
$13.2m invested in infrastructure for future growth – in the six months
1.0
1.6
5.6
16.4
40.9
13.2
201220132014201520162017
(six months to June)
Capital expenditure (millions)
$5.8m coolstores $0.8m plastic bins
$3.3m Seeka360 complex $1.5m Seeka Australia
$1.8m New Zealand plant,
property and equipment
Major investment to manage increased crop
Infrastructure not fully utilised in 2017, ready for 2018
(six months to June)
24.8

11
6 MONTHS UNAUDITED YEAR END
JUNE 2017 JUNE 2016 DEC 2016
Net debt $94.5m $76.9m $72.8m
Net asset backing per share $5.49 $4.71 $4.88
69 cents basic earnings per share, up 53% on pcp
$94.5m net debt, up $21.7m

Net bank debt and net asset backing

12
Kiwifruit is our foundation, targeting integrated fruit supply opportunities
that deliver accretive value
Kiwifruit, Avocado, Nashi, European pears are the current core categories
Geographically spread
Delivering to the brand values; safety always, inspirational people, growing
futures, quality obsession, independently ingenious, and founded on
relationships
Delivering superior returns to stakeholders

Our growth strategy continues

13
Planned path to growth
71% shareholder return over two years
Oct 15Dec 15Feb 16Apr 16Jun 16Aug 16Oct 16Dec 16Feb 17Apr 17Jun 17Aug 17Oct 17
$3.34
$5.30
10c 10c 10c 10c
Dividend payments
$1.96 lift in price
40 cents paid in dividends

Business performance update
Chief Executive – Michael Franks

15
Safety first
2017 2016
YTD
(to 30 Sep) (to 31 Dec)
Notifiable injuries 0 1
Notifiable incident or event 1 0
Lost time injuries 19 33
Medical treatment 48 58
First Aid treatment 39 40
Total recordable injury frequency
(Lost time and medical treatment injuries
per 100,000 hours worked)
3.06 3.6
No notifiable injuries, improvement on last year

16
New Health and Safety systems
Permit to work procedure reviewed
System upgrades
Contractor compliance is leading the
industry in safety, contractor and worker
compliance

17
New Zealand
orchard operations

$5.8m EBITDA, up 5% on pcp
6 MONTHS UNAUDITED
JUNE 2017 JUNE 2016
Turnover/ revenue $36.8m $37.7
EBITDA $5.8m $5.5m

18
New Zealand kiwifruit orchard operations
Less Green, Gold returns remain high
Lower Hayward volumes by 33%
▪Forecast $6.06 per tray / $53,250 per hectare (pcp: $4.26/ $54,100)
Gold returns remain high, improving volumes on long term lease orchards
▪Forecast $9.21 per tray/ $120k per hectare


6.2
6.8 6.8
8.0
8.9
5.9
1.2
0.1
0.4
1.2
2.3
2.6
7.4
6.9
7.2
9.2
11.2
8.5
201220132014201520162017
Gold
Green
Total
Class 1 kiwifruit trays (millions)

19
New Zealand
post harvest operations

$17.1m EBITDA up 24% on pcp
6 MONTHS UNAUDITED
JUNE 2017 JUNE 2016
Turnover/ revenue $74.4m $78m
EBITDA $17.1m $13.8m

20
New Zealand post harvest operations
Lower volumes will impact earnings
21.8
19.6
21.4
27.8
32.4
25.5
201220132014201520162017
Class 1 and 2 kiwifruit trays (millions)
6 MONTHS UNAUDITED
JUNE 2017 JUNE 2016
Green trays packed 16.2m 23.7m
Gold trays packed 9m 7.6m
Green UFI storage 0.3m 0.1m
Percent loaded to 30 June 64% 50%

21
New Zealand
retail services


6 MONTHS UNAUDITED
JUNE 2017 JUNE 2016
Turnover $25.8m $22.1m
Revenue $10.9m $5.1m
EBITDA $1.3m $0.5m
Avocado market
▪High volumes in the first half of the year
Competitive banana market

$1.3m EBITDA up 160% on pcp

22
Seeka Australia

$3.4m EBITDA, up 127%
6 MONTHS UNAUDITED
JUNE 2017 JUNE 2016
Turnover/ revenue $11.8m $13.3m
EBITDA $3.4m $1.5m
Significant increase in earnings

23
Seeka Australia
Increase in kiwifruit volumes, lower nashi volumes as trees recover
from hail and mites
30 JUNE 2017 31 DECEMBER 2016
KILOGRAMS TRAYS KILOGRAMS TRAYS
Kiwifruit 2,990,826 826,195 2,374,720 656,000
Nashi 1,172,163 1,523,000
Corella 423,788 623,784
Packham 854,000 996,300
Other pears 83,421 169,454
Plums 25,605 31,500
Apricots (harvest second half of year) - 43,682
Cherries (harvest second half of year) - 16,074

24
Our exciting new venture
Getting more from our existing resources

25
Delicious Nutritious
Food Company

$0.2m EBITDA (six months)
6 MONTHS
UNAUDITED
JUNE 2017
Turnover/ revenue $0.6m
EBITDA $0.2m
New earnings stream to Seeka
EBITDA included in Retail Service Operations segment

26
Healthy and nutritious products that taste great
Kiwi Crush and Kiwi Crushies
▪From waste to functional food
Avocado oil
▪From waste to export markets
Kiwiberry processing
▪High speed processing machine
to deliver to premium markets

27
Surplus fruit in, high value products out
KCG building on Te Matai Road, Te Puke
Bespoke manufacturing plant
Quality and compliance systems for food safety best practice
Eight staff employed in local community

Seeka Australia

29
Australia’s largest Kiwifruit and Nashi grower
Orchards in Shepparton, Victoria
Kiwifruit, Nashi, European pears, plums,
apricots and cherries
Nine orchards on 506 hectares
▪225 hectares in production
▪67 hectares in development
>52 hectares greenfields and bare land
>15 hectares being cutover
Post harvest and coolstore facilities
2650 mega litres of high-priority and
temporary water shares

30
New kiwifruit orchards and new varieties

Orchard development programme
$8m investment from 2016 to 2020

31
Kiwifruit
Greenfield development, planting orchards on bare land
▪Mirrabooka – 13 hectares
▪Tarwin – 22 hectares

32
Pears
Re-grafting European root stock over to brown nashi
Infilling bare sidelands within NPO orchard with new nashi plantings

33
New packing machine, packhouse extension, coolstores and orchard
equipment



Infrastructure and equipment
$5.3m investment from 2016 to 2020

Questions