Seeka Provides Further Information on Acquisition

Northland Acquisition – Briefing Pack
20 April 2018

2
Overview
Introduction
• Seeka has agreed to purchase the Kerikeri Packhouse facility
and related
kiwifruit orchards as a going concern from T&G Horticultur
e, a wholly
owned subsidiary of T&G Global. [in this pack both refer
red to as “T&G”]
• Seeka will also purchase approximately 253,000 Zespri sh
ares at a
market value determined by formula.
• T&G will continue to own the varieties known as ENZAGOL
D and
ENZARED with Seeka granted a Master License in New Zeal
and. T&G
will retain some rights to sell the New Zealand grown
kiwifruit varieties
and citrus as part of the deal.

3
Overview (cont)
• All people directly employed by the acquired business w
ill be offered
employment on terms no less favourable than prior to th
e acquisition.
• T&G and Seeka will seek to transfer the RSE workers dire
ctly used by the
acquired business operations.
• Staff will transfer as each component of the business is a
cquired.
[detailed later in this pack]
• Seeka will provide Post Harvest services to T&G for citrus a
nd other
services as required. T&G will also provide services to Seeka a
s required.
• Purchase consideration is 100% cash with banking support in
place.
• Deal is subject to OIO approval, if required

4
Post-Harvest Detail
Purchase price approx. $8.6m
• 6 Hectare site at 153 Waipapa Road, extensive packhouse, co
olstore, fruit
handling facility.
• Some deferred maintenance, some operational efficienci
es available with
investment.
• Packhouse will operate nearly all year handling kiwif
ruit, avocados and citrus.
• Part year earnings in 2018 due to mid season acquisitio
n
• Settlement due on 30 April and employees transfer fr
om 1 May.
Normal expected annual ebitda range
$1.8m to $2.2m

5
Orchard Detail
Purchase price approx. $31.6m
• 6 Orchards of approximately 120.4 hectares, with 77.85
ha in kiwifruit.
• Settlement on 30 June or when title is transferred fo
llowing subdivision of three orchards
Kapiro, Kerifruit Farm and Whites. Seeka has a long te
rm lease in place in the interim
on these orchards.
• Purchase price is on a crop off basis with 2018 fruit reve
nue attributable to T&G
• Excellent locations and orchards with irrigation scheme sh
ares included.
• Orchard leasing and management business also acquired, Se
eka to merge with its own
orchard operations
• Seeka has tendered for 20 hectares of license in the rece
nt Zespri SunGold tender
round.
Normal expected annual ebitda range
$2.8m to $3.2m
Kiwifruit
Citrus
Gold Crest
244 Kapiro Road
2.39

2.39 ha
Gold Valley
1500 State Highway 10
3.85

3.85 ha
Kapiro
41 Orchard Road
14.06

5.56

9.00

12.62

41.24 ha
Kerifruit Farm
2624 State Highway 10
17.99

6.37

15.47

39.83 ha
Purerua
159 Kapiro Road
4.61

6.72

-

14.49

25.82 ha
Whites
93 Kapiro Road
7.30

7.30 ha
4.61

46.07

12.61

5.56

-

9.00

12.62

15.47

14.49

120.43 ha
Total Land
Orchards/ha included in the sale
Address
Bare Horticultural land
Hayward
Mandarin
Lemon
Rootstock
Enza Gold
Zespri G3
Red
Summer

6
Zespri shares
Purchase price approx. $TBAm
• Approximately 253,000 Zespri shares acquired as part of
the acquisition.
• Valuation set by way of formula• Settlement on 30 April

7
Strategy
• Acquisition is consistent with strategy
• It is focused on Seeka’s foundation variety, Kiwifruit• It spreads Seeka’s geographical reach• It services existing customers [currently without a pack house
], and
introduces new customers to Seeka
• There is real value and earnings improvement potential
in acquiring this
business which is a core competency of the group
• Northland is a very good gold kiwifruit growing regio
n.
• The region is experiencing significant investment in avoca
do orchard
development including by Seeka.

8
Thanks and further information
• Our thanks and appreciation to our corporate and legal
advisers and internal
diligence teams for a job well done. The hard work star
ts now as the transaction
completes and operational managers take over.
• For further information please contact:
• Michael Franks
Seeka Chief Executive
021356516
• Stuart McKinstry
Seeka Chief Financial Officer
021224558
3
• Kim McFadden
Seeka Marketing and Investor Relations
0272029298