Seeka provides retail investor presentation

Seeka Limited

Retail Investors – March 2019

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Orchard-to-market excellence
Seeka is an international fresh produce business
In Australia
Grow, process and market
-Kiwifruit
-Nashi pears
-European pears
-Stone fruit
-Kiwifruit pollen



In New Zealand
Grow, process and market
1

-Kiwifruit
2

-Avocado
-Kiwiberry
-Kiwifruit pollen
Develop, lease and manage orchards
Manufacture
-Kiwi Crush, avocado oil
Import, ripen and supply
-Bananas, tropical fruit
Wholesale
-
Seasonal produce

Largest grower of
kiwifruit in New Zealand
and Australia
Australia’s largest
nashi grower
1. Also process citrus and berries
2. New Zealand kiwifruit mainly marked by Zespri

3
An investment entry point to New Zealand kiwifruit and avocados,
and poised for further growth
-Targeted varieties - kiwifruit, avocados, nashi, pears
-Geographical reach
-Integrated service from orchard to retail
2
Reliable cash-flow, now positioned for further growth

4
Capital already invested to increase supply and fruit handling capacity

3
A premium produce company with the strategy to become
New Zealand’s leading orchard-to market-business
1
Seeka’s key investment attributes and strategy for growth

4
2018 Highlights
Financial year ending 31 December - audited
1. Pcp is previous corresponding period to 31 December 2017
2. Yet to settle $9.8m of the purchase
3. Kiwifruit and pears
Financial
-$203.7m total revenue – up 9% on $186.2m in pcp¹
-$7.4m profit after tax – up 27% on $5.8m in pcp
-$0.37 earnings per share – up 16% on $0.32 in pcp
-$26.2m EBITDA – up 13% on $23.1m in pcp
Performing for our growers
-31.4m trays of New Zealand kiwifruit harvested and packed – up 23% on pcp
Growth
-Acquired T&G Horticulture’s post harvest business and kiwifruit orchards for $42.1m²
-Developing Australian orchards
-Investing in New Zealand post-harvest infrastructure
Recapitalised
-Fully-subscribed rights issue raised $47.9m

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Four operating segments capture the value chain
Orchard operations, New Zealand
Growing export crops of kiwifruit, avocado and
kiwiberry from more than 220 orchards via
management, lease and long-term lease
contracts

Post harvest operations, New Zealand
Contract processing service to harvest, pack,
coolstore and supply kiwifruit, avocado and
kiwiberry from more than 700 orchards, including
all produce from our orchard operations and for
independent growers

Retails services, New Zealand
Markets local and imported produce in New
Zealand, exports to Australia and niche
international markets, plus manufacturers and
sells high value functional foods Kiwi Crush and
avocado oil

Seeka Australia
Owns nine large orchards plus post harvest
facilities that supply Australian retailers with a
large proportion of Australia’s locally grown
kiwifruit, nashi and pears
Orchard
division
$52.8m
Post harvest
$123.8m
Retail
services
$11.5m
Australia
$14.9m
Revenue by operating segment FY2018¹


1. 31 December balance date

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Performance by operating segment

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NZDm 31 Dec
2017 2018
Turnover / revenue
$ 48.6 $ 52.8
EBITDA
$ 6.4 $ 3.4
Millions of trays¹
Hayward (green) 5.9 7.6
SunGold 2.6 3.1
Total 8.5 10.7
7.2
9.2
11.2
8.5
10.7
20142015201620172018
GreenGold
$3.4m EBITDA
▪Down 46% on pcp
▪End of long term orchard leases reduced
EBITDA
▪SunGold progressing to full production
Grew 10.7m trays kiwifruit
(37.9m kilograms)¹
Grew 0.039m trays avocado
(0.21m kilograms)
Orchard operations NZ
Growing 36% of kiwifruit supplied to post-harvest
NZ kiwifruit grown¹

Millions of class 1 trays



1. Kiwifruit volumes exclude crop from T&G acquisition orchards, acquired crop off.

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21.4
27.8
32.4
25.7
31.4
20142015201620172018
$32.1m EBITDA
▪Up 46% on FY17
31.4m kiwifruit trays processed
▪Up 23%
T&G Kerikeri post harvest facility
acquired and integrated April
2018
Post-harvest operations NZ
Generating 61% of Group revenue
NZDm 31 Dec
2017 2018
Turnover / revenue
$ 96.7 $ 123.8
EBITDA
$ 22.0 $ 32.1
Millions of trays
Hayward (green) class1 15.6 19.2
SunGold
class 1 8.7 10.8
Class 2 and other 1.4 1.4
Total 25.7 31.4
NZ kiwifruit processed

Millions of class 1 and 2 trays

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Post-harvest operations in action

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$1.6m EBITDA
▪Down 44% on FY17
Delicious Nutritious Food
Company increased earnings to
$0.46m
▪Up 58%

Retail services NZ
New revenue streams from fruit processing and fruit retailing
NZDm 31 Dec
2017 2018
Turnover
$ 54.2 $ 39.9
Revenue
$ 24.3 $ 11.5
EBITDA $ 2.9 $ 1.6

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2,982
1,201
854
727
2,570
1,250
1,138
690
KiwifruitNashiPackhamOther
20172018
$(0.1)m EBITDA
▪Down 103% on FY17
▪Challenging growing season and
Australian management restructured
83 hectares of new Seeka orchards
in development
▪Kiwifruit and new pear varieties
Seeka Australia
Integrated orchard-to-market with major investments in new orchards
NZDm 31 Dec
2017 2018
Turnover / revenue
$ 16.5 $ 14.9
EBITDA $ 2.3 $(0.1)
Australian-grown fruit

Tonnes

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Seeka is operating in growth industries
New Zealand is one of the fastest growing kiwifruit exporters
▪Exports up 79.4% from 2013 to 2017¹
▪Seeka had 21% market share of production in 2017
New Zealand kiwifruit volumes are increasing
▪Zespri planning to sell 750 hectares of gold licences per year for the next four years²
▪Strong global consumer demand for gold variety
▪Seeka benefits from higher kiwifruit volumes
Export value of New Zealand avocados growing strongly
▪Nearly doubled in the last 5 years over the pcp³
▪Seeka had 10% market share of avocado handling and marketing in 2017/18
1. World Top Exports, July 2018
3. Zespri 5 Year Outlook, November 2017. Note in 2018, Zespri completed the first of the five years of licence sales
3. New Zealand Avocado Annual Report 2018, p22

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0 m
50 m
100 m
150 m
200 m
250 m
199819992000200120022003200420052006200720082009201020112012201320142015201620172018201920202021202220232024202520262027
Trays submit
Harvest year
SunGold/Gold OB
Green Organic
SunGold/Gold
Green/Sweet
Green
ZESPRI FORECAST³
ACTUALS, NEW ZEALAND CLASS 1 SUBMIT¹
²
1. Class 1 submit is the industry-standard measure of kiwifruit volumes, being kiwifruit graded for export as the crop harvested is measured in trays (~3.5kg per tray) of kiwifruit
2. Since forecast, actual 2018 submit figures released of 157.6m trays
3. Zespri 5 Year Outlook, November 2017, p44
New Zealand industry volumes growing with new gold variety

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Expansion through product portfolio,
geographical reach and value chain

1987199219972002200720122017
$1.2m
$203.7m
2018
10 10 10 10
12 12 12
Mar 16Sep 16Mar 17Sep 17Mar 18Sep 18Mar 19
Seeka is a growth company
Increasing revenue
24 cents in the last 12 months

Delivering value to shareholders
Cash dividend

Cents per share¹
Revenue




1. Fully imputed

Seeka’s Analyst Briefing Pack is available at seeka.co.nz
for further information