Seeka Provides Analyst Briefing Pack

Welcome to Seeka
Analyst Briefing Pack

2
Disclaimer
This presentation has been prepared by Seeka Limite
d (“Seeka”) solely to provide interested parties wi
th further information about Seeka and its business
and activities as at the date of
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ation is of a general nature only. It is not a com
plete description of Seeka and does not constitute a
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Zealand. This presentation is not intended as inves
tment, financial or other advice and must not be re
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ke into account any particular
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ion, circumstances or needs, and does not purport t
o contain all the information that a prospective in
vestor may require. Any person who
is considering an investment in Seeka financial pro
ducts should obtain independent professional advice
prior to making an investment decision, and should
make any investment decision
having regard to that person’s own objectives, fina
ncial situation, circumstances and needs.
Past performance information contained in this pres
entation is given for illustrative purposes only an
d should not be relied upon (and is not) an indicat
ion of future performance. This
presentation may also contain forward looking state
ments with respect to the financial condition, resu
lts of operations and business, and business strate
gy of Seeka. Information about
the future, by its nature, involves inherent risks
and uncertainties. Seeka gives no assurance that t
he assumptions upon which Seeka based its forward3l
ooking statements on will be
correct, or that its business and operations will n
ot be affected in any substantial manner by other f
actors not currently foreseeable by Seeka or beyond
its control. Nothing in this
presentation is a promise or representation as to t
he future or a promise or representation that a tra
nsaction or outcome referred to in this presentatio
n will proceed or occur on the basis
described in this presentation. Statements or assu
mptions in this presentation as to future matters m
ay prove to be incorrect.
A number of financial measures are used in this pre
sentation and should not be considered in isolation
from, or as a substitute for, the information prov
ided in Seeka’s financial
statements available at
www.seeka.co.nz/reports
or
www.nzx.com
under ticker code SEK. This presentation includes
non3GAAP financial measures. This information has
been included
on the basis that Seeka management and directors co
nsider that this non3GAAP information assists with
an understanding of the key drivers of Seeka’s perf
ormance which are not
disclosed as GAAP measures in Seeka’s financial sta
tements.
Certain market and industry data used in connection
with this presentation may have been obtained from
research, surveys or studies conducted by third pa
rties, including industry or
general publications. Seeka nor any of its respecti
ve related companies, shareholders, directors, offi
cers, employees, partners, agents or advisers have i
ndependently verified any such
market or industry data provided by third parties o
r industry or general publications.
To the maximum extent permitted by law, Seeka and i
ts respective related companies, shareholders, dire
ctors, officers, employees, partners, agents and ad
visers: make no
representation or warranty, express or implied, as
to the accuracy, content, legality, reliability or
completeness of the information in this presentatio
n, including, without limitation, any
historical financial information and any opinions,
views, forecasts, projections, estimates and other
financial information contained therein or derived
therefrom; do not accept
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y place on the information in this presentation, or
for any opinion or conclusion any person may form
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ed companies, shareholders, directors, officers, em
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ove terms and conditions.

3
Introduction

4
Operations snapshot
Seeka is an international orchard3to3market busines
s based in Te Puke, New Zealand
Grow, handle and market
▪
Kiwifruit
– largest grower & supplier
▪
Nashi pears
– largest grower & supplier
▪
European pears
– major grower
▪
Stone fruit and kiwifruit pollen
Own 505 hectares in Shepparton, Victoria
▪
9 large orchards
▪
Onsite post harvest facilities
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
Grow, handle and market
▪
Kiwifruit
– largest grower and major supplier (to Zespri)
▪
Avocado
▪
Kiwiberry
Lease and manage orchardsManufacturing
(Delicious Nutritious Food)
▪
Kiwi Crush, Avocado oil, Kiwifruit pollen
Import, ripen and supply
▪
Bananas, Pineapple, Papaya
Wholesale seasonal produceDevelop bare land into orchards
▪
Turnkey orchard developments
▪
Long3term land leases
New ZealandNew Zealand

5
Large international shareholders
▪
Farmind Corporation of Japan
▪
Sumifru – Asian produce distributor
Te Awanui Huka Pak is our largest New Zealand shareh
older
▪
100% Māori3owned company with extensive shareholder
land
holdings
Nearly all supplying Seeka kiwifruit growers are sh
areholders
▪
~ 25% of company shares owned by supplying growers
Many employees are shareholders
▪
3% of company shares owned by the employee share sc
heme
Seeka is the NZX entry point to New Zealand’s kiwif
ruit industry
2
▪
Plus gain exposure to the Australian produce indust
ry, and New
Zealand avocados
Our business model
Seeka is a publicly3listed company with 1400+ shareholder
s
1
Group stats
FY16A
3
Revenue
$ 191.3 m
EBITDA
$ 24.8 m
NPAT
$ 10.4 m
Total assets
$ 197.3 m
Shares
17.5 m
Basic EPS
$ 0.65
FTEs
4
1,175
1. Seeka management – Shareholder details2. Turners and Growers own a kiwifruit business in
Kerikeri
3. Seeka Annual Report 2016, p3, p13, p154. Seeka management - FTE

6
We deliver premium returns to our growers and stake
holders.
To do this, we think of new ways to deliver on our
brand promise
Quality obsessionIndependently ingenious
GrowingfuturesInspirationalpeopleSafety always
Founded on
relationships
4
5
6
3
2
1
Our brand attributes – Seeka’s value compass

7
Orchard operationsOperate 224 orchards in the Bay of Plenty, Coromand
el, Northland, Hawkes Bay
and the East Coast under contract for orchard owner
s
Five Seeka interest/ownership orchards
1
Post harvest sites and support servicesSeven post harvest complexesThree support centres in Te Puke region• Seeka 360• VLS testing laboratory• Delicious Nutritious Food CompanyRetail servicesNorth Island service centre and wholesale market• Glassfields AucklandSouth Island service centre• Glassfields Christchurch
1. Seeka orchard ownership share in New Zealand ran
ges from 100% to 7%
NEW ZEALAND
AUSTRALIA
Australian OperationsShepparton, VictoriaOwn and operate 505 hectares• 228 in production• 63 in development Onsite packing and coolstore facilities
Post harvest sitesSeeka Keripack, KerikeriPeninsula, Coromandel Main Road, KatikatiHuka Pak, TaurangaOakside, Te PukeTranspack, Te PukeKKP, Te Puke
Founded on kiwifruit, Seeka is transforming into an
Australasian produce business
adding avocados, nashi and pears to its core produce
lines
We operate in highly productive orcharding regions

8
Australian OperationsRob TowgoodCommercial managerFully integrated orchard, to market3supply serviceOwn 9 large orchardsSell domestically and via direct export to Asia and EuropeOrchard and infrastructure development programme
Orcharding OperationsSimon WellsGM OrchardsGrow all productsKiwifruit, kiwiberry, avocadoManagement, lease and long3term lease contracts224 orchards in 2017
Post Harvest OperationsKevin HallidayGM Post Harvest ServicesHarvest, pack, coolstore and supply all productsFruit from Seeka’s orchard operations plus contract growersHandling fruit from ~700 orchards in 20177 post harvest facilities 3 support facilities
Retail Service OperationsRay HookGM Retail ServicesDomestic marketing of local and imported fruitBananas, tropical fruits and seasonal produce2 retail service centres
3 Auckland, Christchurch
1. Seeka Annual Report 2016, Segment information, p
20
SupplyKate BryantGM SupplyManage the supply chain interface to market clientsIncludes supplying the legislated single3desk exporter Zespri and all other sales
AUSTRALIA
NEW ZEALAND
Financial managementStuart McKinstry
, Chief Financial Officer and Company Secretary. Fi
nancial management reporting services across the fu
ll business
Grower ServicesAnnmarie LeeGM Growers & MarketingManage relationship with orchard ownersIncludes all corporate marketing and communication
Information systemsJason Swain
, GM Information Services. Develop and deliver inf
ormation services across the full supply chain
Michael Franks
, Chief Executive Officer
Revenue
Managed 3 cost recovery
Toll fee per unit handled
Sale
s commission
100% of sales revenue
Leased 3 orchard fruit returns
and ripening fees
Drivers
Yields and fruit returns
Volumes
Volumes and sales va
lue
Volumes and sales value
FY16A
1
Revenue
$ 47.9 m
$ 110.8 m
$ 16.8 m
$ 15.2 m
EBITDA
$ 5.6 m
$ 26.8 m
$ 1.9 m
$ 1.0 m
Assets
$ 33.6 m
$ 111.7 m
$ 4.7 m
$ 35.5 m
Our operating segments collect revenue from each ste
p of value chain
Enabling functions
Led by an experienced management team

9
1987
1992
1997
2002
2007
2012
Growth founded on New Zealand kiwifruit
Revenue
$1.2m
Revenue$191m
Seeka has added new products, new regions, and capt
ured more value from the supply chain
Seeka has delivered significant revenue growth since
1987
Expanding product portfolio
Expanding geographical reach
Expanding along the value chain
ANNUAL REVENUE
Psa
2016
Avocado oilAvocadoKiwiberryPollenKiwi CrushStone fruitPearsNashiBananasTropical fruits
KiwifruitPost harvest
Orchard ownershipOrchard developmentOrchardingManufacturingRetail servicesMarketingLaboratory
Te Puke
NorthlandCoromandelWestern BoPTaurangaEast CapeHawke ’s Bay
Australia

10
9.5
11.3
13.9
24.8
~22.1322.6
21.1
FY13A
FY14A
FY15A
FY16A
FY17F
Total EBITDA
NZ$million
97.4
115.7
142.1
191.3
~172.13173.7
FY13A
FY14A
FY15A
FY16A
FY17F
Market update 22 November 2017
Seeka expects FY17 NPAT to be plus or minus 5% of F
Y16’s NPAT of $7.8 million
Financial snapshot
Seeka has delivered consistent revenue growth over
the past four years as the industry recovered
from the kiwifruit disease Psa. FY17F revenues are
down on a smaller green kiwifruit harvest.
Total revenue
NZ$million
Seeka has delivered growth in revenue and EBITDA si
nce 2013
Insurance
settlement
Seeka has delivered significant EBITDA growth since
2013
1. Seeka Annual Report 2016, Key indicators, p32. FY13A EBITDA was restated down to $9.5m from $9.
9m due to amendments to NZ IAS 41 'Agriculture' and
IAS 16 and 'Property, Plant and Equipment’

11
Our growth outlook

12
Seeka is anticipating volume growth in kiwifruit, a
vocados, nashi and new variety pears
New Zealand avocados are experiencing major growth
in planted area and demand
3 with market access now granted to China
Australian kiwifruit sales anticipated to grow 153%
by 2024, including new red and gold varieties
2
As a grower, packer and distributor, Seeka has a si
gnificant share of New Zealand kiwifruit, New
Zealand avocados and Australian pears, and a domina
nt share of Australian kiwifruit and nashi
The New Zealand kiwifruit industry is predicting ex
port earnings to increase 165% by 2025
1
14
2
53
New ventures expected to deliver material value – De
licious Nutritious Food Company
6
Seeka’s key investment attributes
1. Zespri 5 Year Outlook, November 2017, p52. Seeka management

13
Seeka is a key supplier to the global kiwifruit tra
de and an entry point for investors
•
Through Zespri, New Zealand is the world’s largest kiwi
fruit exporter
capturing 50.5% of the total export market value in
2015¹
•
New Zealand is growing its global kiwifruit trade usin
g plant variety
right protected fruit such as SunGold
•
New Zealand achieves a pricing premium which delivers hi
gher
returns to industry investors
2
•
Seeka had a 19.7% market share of New Zealand kiwifru
it production
in 2017
3
( and more than 80% of Australia’s production )
•
Seeka secures supply in New Zealand through its orchard se
rvice
operations, competitive post harvest pricing, and a grow
er loyalty
programme that resulted in nearly all supplying kiwif
ruit growers
becoming Seeka shareholder investors
Kiwifruit is New Zealand’s largest produce sector e
xport
5
NZ$million, 2015
Kiwifruit
1,461
Apples
630
Vegetables
413
Emerging
fruit 225
Nuts
3
50.5%23.6%
11.6%
14.3%
2005
2006 2007
2008 2009
2010 2011
2012 2013
2014
2015
New Zealand
Italy
Chile
Other countries
NZ is capturing more of the global kiwifruit export
value
4
1,2,4,5. Investors guide to the New Zealand produce
industry 2017, Coriolis Report, p45~p48. Based on a
NZD / USD exchange rate of $0.69
3. Seeka management – NZ kiwifruit market share
Kiwifruit is a premium world fruit poised for significan
t volume growth
NZ is the world’s largest kiwifruit exporter, achie
ving premium pricing

14
1.2
1.4
1.7
2.0
4.5
2013
2014
2015
2016
Zespri
2025 target
Seeka benefits from higher kiwifruit export values
•
18.6% CAGR in export value of New Zealand kiwifruit
from 2013 to
2016¹
•
Zespri has a $4.5 billion export target by 2025 3 9.4%
CAGR over a 93
year period²
•
Strong consumer demand for New Zealand kiwifruit in A
sia
•
214,540 tonnes exported in 2015, NZ’s largest kiwifrui
t market³
•
Strong export value growth in China (18.3% CAGR) an
d Taiwan
(9.4% CAGR ) from 2009 to 2015
4
•
Seeka positioned to benefit from bigger kiwifruit vo
lumes
1,6. Zespri Annual Report 2017, p92,7. Zespri 5 Year Outlook, November 2017, p53,4,5. World kiwifruit review 2016, Belrose Report,
p43
NZ kiwifruit export value
6, 7
NZ$billion
New Zealand fresh kiwifruit exports by destination
5
Thousands of tonnes
2009
2011
2013
2015
CAGR
2009 - 15
Japan
57.9
63.7
68.6
76.9
4.8%
China
21.7
33.0
32.2
59.5
18.3%
Taiwan
19.7
26.1
24.9
33.7
9.4%
Total Asia
137.3
170.7
163.5
214.5
7.7%
European Union
175.0
178.2
162.0
191.7
1.5%
North America
26.1
25.3
10.9
19.9
(4.4%)
Oceania
15.3
18.1
16.1
15.8
0.4%
New Zealand kiwifruit enjoy good consumer demand,
particularly in the high3value Asian markets
The global kiwifruit export trade is growing in vol
ume and value

15
•
Kiwifruit volumes increasing with Zespri planning t
o sell 750 hectares of
gold licences per year for the next 5 years
1
•
New orchards are being developed and converted to g
old
•
Greenfield orchard developments underway
•
SunGold (Gold) kiwifruit yields higher volumes than
Hayward (Green)
once in full production
•
More product available for Seeka’s post harvest ope
rations (total
processing)
•
Gold kiwifruit has commanded premium pricing and a
better market mix
over green kiwifruit
•
Higher revenues to orchard operations
•
Higher revenues to post harvest from a bigger margi
n
•
Seeka has invested in pack lines and coolstores to h
andle more volume
•
$34 million invested in 2016
2
•
Post harvest profitability improves on economies of
scale
•
Zespri and the kiwifruit industry are looking at of
fshore infrastructure to
manage volume growth
3
•
Contains capital expenditure
•
Using offshore infrastructure in peak periods will
improve New Zealand
asset utilisation and revenues
•
Seeka’s New Zealand pack lines and coolstores will o
perate at
capacity for longer periods
•
Packing and coolstorage are tolled revenue points
Seeka has invested in personnel, systems and capacity to han
dle more volume
Seeka benefits from higher kiwifruit volumes
1, 3. Zespri 5 Year Outlook, November 2017, p16, p4
6
2. Seeka Annual Report 2016, p5
The supply of New Zealand kiwifruit is growing

16
0 m
50 m
100 m150 m200 m250 m
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 201
0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 20
23 2024 2025 2026 2027
Trays submit
Harvest year
SunGold/Gold OBGreen OrganicSunGold/GoldGreen/Sweet Green
ZESPRI FORECAST
ACTUALS, NEW ZEALAND CLASS 1 SUBMIT
Seeka is poised for significant volume growth
1. Class 1 submit is the industry-standard measure
of kiwifruit volumes, being kiwifruit graded for ex
port as the crop is harvested measured in trays (~3
.5kg) of kiwifruit.
2. Zespri forecast from Zespri 5 Year Outlook, Nove
mber 2017, p44
New Zealand industry volumes growing with new gold
variety

17
Seeka will maximise its position as Australia's lar
gest producer and supplier of kiwifruit and nashi
•
Own 505 hectares in Shepparton, Victoria with additional hectares under contract
•
228 hectares in production
•
63 hectares in development
•
Orchard investments will deliver growth over the next 5 years
•
Planting green kiwifruit plus new red and gold varieties that are exclusive to Seeka Australia
•
Seeka estimates it has over 80% market share of
Australian kiwifruit, and 90% of Australian nashi
•
Upgraded onsite packing and coolstore facilities to handle growth
•
2,650 mega litres of high priority and temporary water shares
•
EBITDA anticipated to increase ~130% over the next 5 years to exceed AUD$8m
1. 2017 Nashi volumes were reduced due to a hail ev
ent and mites. Seeka has put measures in place to
prevent further mite issues
Nashi volumes
1
Millions of kg
2.1
2.9
FY16A
FY17A
1.5
1.2
FY16A
FY17A
Kiwifruit volumesMillions of kg
Sales by fruit FY16A
Forecast sales by fruit FY17F
Kiwifruit
44%
Nashi
34%
Corella
pears
10%
Packham
pears
7%
Other pears
2%
Stone fruit
3%
Kiwifruit
58%
Nashi
28%
Corella
pears
7%
Packham
pears
4%
Other pears
1%
Stone fruit
2%
NZD15.1 million
~NZD17.6 – 18 million
Pear volumesMillions of kg
Seeka has a dominant market share in Australian
kiwifruit and nashi, and is investing to grow volumes
and margins
1.8
1.5
FY16A
FY17F
Forecast
Seeka Australia production metrics
Australian operations poised for growth

18
Seeka is capturing value in new markets
•
15.4% CAGR in export value of New Zealand avocados fr
om
2013 to 2016
1
•
$155.5m generated from NZ exports from 2016 season
2
•
Seeka handles 8% to 10% of New Zealand’s avocado crop
3
•
Market share growing through orchard syndication
•
Seeka delivers a full orchard3to3market service, drawing

revenue along the full supply chain
•
Seeka exports most of its New Zealand avocados to the high3returning Australian market where they are sold
under
the Seeka brand
•
Phytosanitary protocols agreed with China provide an alternative market (plant disease border controls)
•
Reduces industry dependency on Australia
•
Seeka positioned to benefit from bigger avocado volum
es
1,2. New Zealand Avocado Annual Report 2017, p223,4. Seeka management – Seeka avocado volumes. Volum
es handled refers to volumes packed and marketed by
harvest season, which spans two financial years. V
olumes are measured in
industry standard trays (~5.5kg) of avocados5. Talking Avocados, Spring 2017, Australian Avocad
os state of play: 2016/2017, p16
Seeka avocado volumes handled by season
4
Thousands of avocado trays
Australian avocado production, imports from New Zea
land and consumption
5
-0.51.01.52.02.53.03.54.0
-
102030405060708090
100
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Consumption (kg/capita)
Volume (thousands of tonnes)
Australian production volume
Imports
Consumption / capita
Avocados are prone to biennial bearing
producing larger crops on alternate years
Seeka provides an entry point to NZ avocados;
a true phenomenon in the produce world
443
492
309
707
2013314
2014315
2015316
2016317
Local Market
Export
Avocados are an emerging fruit

19
•
Establishing a kiwifruit orchard requires specialis
t experience,
expertise and partnerships
•
Seeka has 37 years experience as a key player in th
e kiwifruit
industry and strong relationships with orchard owne
rs and
service providers
1. Seeka management - FTE2. Seeka Annual Report 2016, p53. Orchard development timeline depends on the prop
erty
4. 3,200 hectares actively producing includes Seeka
’s contract growers
Seasonal workforce
Time
3
Industry experience , knowledge and relationships
Ca
pital
2
•
Orchard, harvest and packing operations are labour
intensive
•
Seeka’s annual payroll is ~1175 FTEs in New Zealand
and
Australia, employing more than 250 permanent staff
and 3000
seasonal workers
1
•
Workers must be trained and managed according to st
rict
employment, health and safety regulations
•
Seeka has invested in workforce recruitment, traini
ng and
management practises
•
Seeka has invested in advanced information systems,
automated post
harvest technology and new capacity developments
•
The investments will enhance revenues and margins
•
Kiwifruit 3 four to five year gap between initial in
vestment and first returns
•
Avocado, nashi and European pears 3 three to four ye
ar gap between initial
investment and first returns
•
Seeka and its growers have already made this time i
nvestment, with 3,200
hectares actively producing for Seeka across New Ze
aland and Australia
4
2016
$34m
2017
$15m
2015
$13 m
Seeka capital investmentNZ$million
Year 1
Prepare new orchard
Year 2
Plant vines
Year 4
First harvest
Year 4 - 5
First returns
Year 1
Prepare and plant
new orchard
Year 3 - 4
First harvest
Year 3 - 4
First returns
KiwifruitNashi, Pears
Avocado
Barriers to new entrants

20
Operational overview
20

21
New Zealand orchard, New Zealand post harvest, New
Zealand retail services and Seeka Australia
Revenue by segment
1
NZ$million
FY14A
FY15A
FY16A
FY17F
New Zealand Post Harvest
68.5
88.3
110.8
~93.9 – 94.3
New Zealand Orchard
38.0
42.3
47.8
~41.7 – 42.1
New Zealand Retail Services
8.7
9.6
16.8
~18.9 – 19.3
Seeka Australia
3
1.2
15.1
~17.6 – 18.0
Total
115.2
141.4
190.5 ~172.1 – 173.7
FY14A
FY15A
FY16A
FY17F
New Zealand Post Harvest
10.8
13.3
26.8
~23.0 – 23.5
New Zealand Orchard
4.2
4.0
5.6
~5.4 – 5.8
New Zealand Retail Services
1.8
1.7
1.9
~2.5 – 2.7
Seeka Australia
3
(1.4)
1.0
~2.7 – 2.9
Corporate
(5.4)
(3.7)
(10.6)
~(12.2 – 12.4)
Total
11.4
13.9
24.7
~22.1
–
22.6
EBITDA by segment
2
NZ$million
Kiwifruit Avocado Kiwiberry
Contract supply
1,680
375
5
2,060
Managed
401
13
4
418
Orchard lease
402
7
3
412
Long term lease
57
25
82
Total
2,540
420
12
2,972
New Zealand orchard supply arrangements
3
Hectares, FY17A
Production
228
Currently in development
63
Potential development land
151
Bare land
63
Total
505
Seeka Australia owned orchards and land
4
Hectares, FY17A (all fruit)
3,200
Total hectares of
supply across New
Zealand and
Australia
1, 2. Seeka Annual Report 2016, Segment information
p21. Seeka Annual Report 2015, Segment information
p22. Revenue excludes other revenue
3, 4. Seeka management – Orchard operations
Key metrics of Seeka’s four operating segments

22
•
Grew 860 hectares of kiwifruit, 45 hectares of avocado and 7 hectares of kiwiberry in FY17
1
•
Produced 8.4m trays of class 1 kiwifruit in FY17
2
•
Down on FY16 as industry yields were impacted by low Hayward (green) kiwifruit harvest (11.2 million FY16A)
•
Services provided through orchard management, lease, and long term lease contracts with orchard owners
•
Seeka operates a small number of orchards that it direct
ly
owns, or holds an ownership interest
•
Developing new orchards on long3term3leased land
•
Syndicating avocado orchards in the Far North
7.0
7.2
9.2
11.2
8.4
$33.5
$38.1
$42.3
$47.8
~$41.7-
$42.1
FY13A
FY14A
FY15A
FY16A
FY17A
Green
Gold
Orchard operations revenue and class 1 kiwifruit production
4, 5
NZ$million, millions of kiwifruit trays
Orchard Division EBITDA
6
NZ$million
Orcharding services 33.0% of Seeka’s supply base
3
Current
External
– third party growers
Managed orchards
– Seeka is
contracted to grow an orchard cropOrchard lease
– established orchards
leased by SeekaLong term lease
– Seeka leases bare
land, develops an orchard and operates it for a long period
Adding orchard revenue while securing supply to pos
t harvest and retail services
1, 2, 3. Seeka management – Orchard operations4. FY17 production impacted by low green kiwifruit
harvest
5, 6, Seeka Annual Report 2016, p7
2.8
4.2
4.0
5.6
~5.435.8
FY13A FY14A FY15A FY16A FY17F
Seeka is a large kiwifruit grower through managed,
and long term based operations and also grows
avocados in the same arrangement
New Zealand orchard operations
67.0%
15.5%
14.5%
3.0%

23
Revenue driven by the lift in New Zealand kiwifruit
volumes
12.6
10.8
13.3
26.8
23.03
35.5
FY13A FY14A FY15A FY16A
FY17F
Post harvest revenue and packed kiwifruit volumes
3, 4
NZ$million, millions of kiwifruit trays
Post harvest EBITDA
5
NZ$million
1, 2. Seeka Annual Report 2016, Segment information
, p21. Book value
3. FY17 impacted by low green kiwifruit harvest4, 5. Seeka Annual Report 2016, p6
19.6
21.4
27.8
32.4
25.5
$59.7
$68.5
$88.3
$110.8
~$93.9-
$94.3
FY13A
FY14A
FY15A
FY16A
FY17A
Green
Gold
•
Seeka manages the harvest, packing, coolstorage and supply logistics for kiwifruit, avocados and kiwiberries
•
Operate seven post harvest sites
•
1 in Northland (to be replaced)
•
1 in the Coromandel
•
5 in the Bay of Plenty
•
Revenue driven by New Zealand kiwifruit production,
which
is projected to grow
•
Post harvest assets at $112 million¹ following recent infrastructure expansion
•
Modern packing machinery improves site throughput and reduces labour unit costs
•
Post harvest is a toll operator – more volume, more pro
fit
Post harvest assets
2
NZ$million
66.9
83.4
111.7
FY14A
FY15A
FY16A
New Zealand post harvest operations

24
Seeka Australia is Australia’s largest kiwifruit an
d nashi grower
Kiwifruit
103.6
Nashi
Pear
67.5
European
pears
48.2
Other fruit
9.4
Seeka Australia producing hectares 2017
4
Kiwifruit
169.7
Nashi pear
67.9
European
pears
44.1
Other fruit
8.1
Avocado
2.0
Seeka Australia producing hectare 2022 target
5
1,2,3,4,5,7. Seeka management6. Seeka management – Orchard operations. Total Aust
ralian hectares includes 63 hectares of non-horticu
ltural land (pack houses, cool stores, rental house
s etc)
•
Seeka Australia acquired Bunbartha Fruit Packers in 2015
for AUD$23.3m
1
•
Land, orchards and post harvest facilities in Shepparton,
Australia
•
Access to water: 2,650 mega litres of high priority and
temporary water shares
2
•
Produce kiwifruit, nashi, pears, and stone fruit
•
New green, red and gold kiwifruit developments
•
EBITDA forecast to increase as new developments come into
production
•
Seeka Australia’s EBITDA margin increasing from 6.8% in
2016 to ~17% in 2017
3
•
Seeka Australia sells domestically and exports to Europe
and Asia
Grows
Packs
Markets
Distributes
Own 9 orchards with 505 hectares of land
6
Development programme
7
Seeka Australia fully controls the orchard to market value chain
•
228 hectares in production
•
63 hectares in development
•
151 hectares with development potential
•
AUD$8 million being invested over the next 4 years
•
Adds a further 61 hectares of kiwifruit
•
Adds 2 hectares of avocados
•
Ongoing renewal of European pear varieties
•
EBITDA potential of AUD$9m by 2024
•
A further 40 hectares being prepared for syndicatio
n
(bare land orchard development)
Seeka Australia

25
0.7
1.8
1.7
1.9
~2.532.7
FY13A
FY14A
FY15A
FY16A
FY17F
Seeka’s retail services business markets produce fr
om group operations
•
Marketing domestically and for export kiwifruit, av
ocados and other products
under Seeka’s own brand
•
Importing produce and tropical fruit for the New Ze
aland market and
ripening fruit ready for retail
•
Marketing product from Seeka’s Delicious Nutritious
Food Company which
turns waste into premium functional food for hospit
als and retail
International
New Zealand
Kiwifruit, Avocados,
Kiwiberries
Australia
Kiwifruit, Nashi, Pears,
Cherries, Apricots,
Plums
NZ Domestic
Bananas, pineapples and
papayas
Locally sourced fresh
produce
Avocados and kiwifruit,
Kiwi Crush, Kiwi Crushies
and avocado oil
Banana ripening
Glassfields
Retail Services EBITDA
1
NZ$million
Retail Services Operations
1. Seeka Annual Report 2016, p3
Retail services

26
Appendix

27
Risks to productionClimate
• Every year, there is a risk of adverse weather even
ts
• These could damage orchards (e.g. via flooding), d
amage crops (e.g. via hail) or affect
crop yields
• In Australia there is risk of drought which would
reduce water available for crops and
would heighten the risk of fires
Seeka actively seeks to mitigate climate risk:• Geographical dispersion of orchards • Crop protection measures (e.g. frost protection)• Access to weather and frost forecasting technology

• Good communication with orchard managers• Seeka owns permanent water rights in Australia
Disease and pests
• Plant stock and crops could be damaged or destroyed
by disease or pests
• Residue could be found on fruit post harvest• Disease / pests could lead to crops being unable t
o be sold, closure of overseas
markets, loss of market share and revenue
• A quarantine pest could be located in a fruit prod
uction or handling region e.g. the
Queensland Fruit Fly
Seeka actively seeks to mitigate disease and pest r
isk:
• Geographic separation of orchards • Orchard hygiene program and spraying / pest control
program
• Bio3security controls to prevent introduction of d
isease / vectors to orchards
• Active management of fruit drop on the ground spec
ifically works to minimise the risk of
PSA to fire blight pears
Crop yields
• Yield variability needs to be managed to maximise p
rofitability
• Variability in yields can be due to excessive oper
ating costs or poor management
practises
• Inter3orchard variability and inter3region variabi
lity
Seeka actively seeks to mitigate the variability of
crop yields:
• Innovation in growing practises • Production forecasting • Optimised orchard locations and fertiliser applica
tion programs
Strategic risksIndustry structure
• Zespri’s single desk could be continued its efficie
nt operating lifespan
• International trading standards and regulations co
uld negatively impact Seeka through
restrictive laws and regulations; punitive tax regi
mes; product recalls or similar
Seeka actively works to maintain international trad
ing standards and international market
access whilst minimising financial risk; • Monitoring political activity and policy developme
nt; and regular audit and review of
systems to ensure compliance with standards, law an
d regulation
Government / political risk
• Imposition of restrictive laws and regulation; pun
itive tax regimes; and inappropriate
bylaws would negatively impact Seeka
Seeka actively seeks to have a positive influence o
n relevant policy and regulation through;
• Active involvement in industry associations; regul
ar submissions on relevant legislation;
and actively building relationships with regulators
Risks to propertyFire
• Premises occupied or owned by Seeka could be burned
down and the contents
destroyed
To reduce the risk of fire Seeka has:• Approved protection equipment including smoke and
fire detectors, alarms, sprinklers,
fire hoses and extinguishers
• Employ a third party company to regularly service
and maintain fire detection
equipment
Physical security
• Premises, property and assets are exposed to risk o
f unlawful entry, theft and criminal
damage
• In the event of the above there could be loss of c
ritical equipment
To improve physical security Seeka has: • Taken appropriate security measures to prevent una
uthorised access
• Installed monitored alarms in buildings and a prog
ram to increase security of fencing at
sites
• Access to technology equipment and systems is rest
ricts to authorised persons
Risks and mitigants

28
Jason SwainGM Information Services19 years experience in agribusiness, spent 10 years in Post3Harvest operations before moving into the Information Systems Division
Stuart McKinstryChief Financial OfficerCharted accountant , with more than 25 years experience in accounting and 18 years experience in the kiwifruit industry. Became CFO in 2006
Michael Franks CEOMore than 20 years commercial experience and has held numerous senior finance roles. Joined Seeka in 2003 as Chief Financial Officer. Appointed CEO in 2006.
Simon WellsGM Orchards20 years experience in management in kiwifruit industry; having owned both a kiwiberry and avocado orchard. Joined Seeka in 2007
Kate Bryant GM SupplyJoined Seeka in 2015, and has had 19 years experience in the kiwifruit industry, focussing on the kiwifruit supply chainRay HookGM Retail ServicesJoined Seeka in April 2014 following the completion of the Glassfields (NZ) acquisition. Extensive experience in senior management especially in agribusiness
Rob TowgoodCommercial ManagerWorks on the interface with the Seeka Australian operations; also responsible for planning and construction of new infrastructure in New Zealand
.
Kevin Halliday GM Post Harvest Joined Seeka in 2003 through the acquisition of Eleos, Kevin has significant experience in kiwifruit supply chain management.Annmarie LeeGM Growers30 years experience in the kiwifruit industry, with 25 years owning a kiwifruit orchard. Joined Seeka in 2005
Senior management team

29
John BurkeDirector
Appointed April 2012.
Extensive agribusiness experience including in kiwifruit, having been the general manager of KVH and CEO of Te Awanui Huka Pak.
Cecilia Tarrant Independent DirectorElected April 2017.Professional company director, with directorships on Fletcher Building, Payments NZ, and chair of Government Superannuation Fund.
Fred HutchingsIndependent Chairman
Appointed September 2012.
Extensive commercial and business experience as a partner of PwC for 27 years. Chair of Tui Products and a director of Speirs Group and Spiers Limited.
Peter Ratahi CrossDirectorChair of several Trust Boards throughout the Eastern North Island. Chair of Te Awanui Huka Pak and Ngā Tūkairangi Trust, the largest Māori kiwifruit grower.
Ashley Waugh Independent Director
Appointed May 2014.
Extensive experience in fresh foods industry, and was CEO of Australia’s National Foods until its merger with Lion Nathan in 2009.
Martyn BrickDirectorElected April 2013. Extensive experience in agribusiness having worked in rural banking, finance and horticulture. Former director of Te Awanui Huka Pak.Amiel DiazDirector
Appointed August 2009.
30 years executive management experience in the fresh produce industries. Head of the Philippine subsidiaries of Farmind Corporation.
Board members