Seeka provides retail investor presentation

SEEKA LIMITED
26 June 2019
Stuart McKinstry – Chief Financial Officer
RETAIL INVESTORS

DELIVERING ORCHARD-TO-MARKET EXCELLENCE
1.Also process citrus and berries
2.New Zealand kiwifruit mainly marketed by Zespri
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INTERNATIONAL FRESH PRODUCE BUSINESS
New Zealand
Grow, process and market¹
−Kiwifruit²
−Avocado
−Kiwiberry
Develop, lease and manage
orchards
Manufacture
−Kiwi Crush, avocado oil
Import, ripen and supply
−Bananas, tropical fruit
Wholesale
−Seasonal produce

Australia
Grow, process and market
−Kiwifruit
−Nashi
−European pears


Largest grower of kiwifruit
in New Zealand and Australia
Largest nashi grower
in Australia

KEY INVESTMENT ATTRIBUTES AND STRATEGY FOR GROWTH
Strategy to becoming New Zealand’s leading orchard-to-market business
A premium produce company

An investment entry point to New Zealand kiwifruit and avocados
Targeted varieties kiwifruit, avocados, nashi and pears | Geographical reach | Integrated service from orchard to retail

Significant orchard and produce business in Australia


Capital invested to increase supply and fruit handling capacity


Reliable cash-flow, positioned for further growth
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2
3
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5
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New Zealand kiwifruit volumes
growing strongly
−Strong global consumer demand
−20% market share in 2018
−Seeka benefits from higher volumes

Export value of New Zealand
avocados growing strongly
−Nearly doubled in the last five years over
pcp¹
−10% market share of avocado handling
and marketing in 2017/18

1.New Zealand Avocado Annual Report 2018, p22
2.Zespri 5 Year Outlook, November 2017. Note in 2019, Zespri completed the second of its 5 year plan to sell up to 700 hectares of licences per year
OPERATING IN GROWTH INDUSTRIES
$100M INVESTED IN THE LAST FIVE YEARS TO HANDLE INCREASING VOLUMES
Forecast New Zealand kiwifruit exports
Millions of class 1 trays²

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0m
50m
100m
150m
200m
250m
20132015201720192021202320252027
Green kiwifruit
Gold kiwifruit
Zespri forecast Actual

POST-HARVEST IN ACTION
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1. On previous comparable period
2. Yet to settle $9.8m of the purchase
HIGHLIGHTS
Financial
−$203.7m total revenue ↑ 9%¹
−$26.2m EBITDA ↑ 13%¹
−$7.4m profit after tax ↑ 27%¹
−$0.37 earnings per share ↑ 16%¹

Performing for our growers
−31.4m trays of New Zealand kiwifruit harvested and
packed – up 23% on pcp
FINANCIAL YEAR ENDING 31 DECEMBER 2018 (AUDITED)
Growth
−Acquired T&G Horticulture’s post-harvest business
and kiwifruit orchards for $42.1m² in 2018
−Developing Australian orchards
−Investing in New Zealand post-harvest infrastructure

Recapitalised
−Fully-subscribed rights issue raised $47.9m in 2018
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1. 31 December balance date
FOUR OPERATING SEGMENTS
Post-harvest
operations,
$123.8m
Orchard
operations,
$52.8m
Seeka
Australia,
$14.9m
Retail
services,
$11.5m
Revenue by
Operating Segment
FY18
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CAPTURING VALUE IN THE SUPPLY CHAIN
Orchard Operations, New Zealand
Growing kiwifruit, avocado and kiwiberry

Post-harvest Operations, New Zealand
Picking, packing and cool storing fruit

Retail Services, New Zealand
Marketing local and imported produce in NZ,
exports to Australia and around the world,
manufactures functional foods

Seeka Australia
Owns orchards and post harvest facilities
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INNOVATION FOR A COMPETITIVE EDGE
−Seeka app
−Seeka bins
−Post-harvest automation
−Better, faster service. Lower labour costs
−Advanced inventory management systems
−Prioritises loadouts, generates higher market returns
−New varieties
−GEM avocados
−New Products
−Kiwi Crush

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SEEKA IS A GROWTH COMPANY
Increasing revenue
Expansion through product portfolio, geographical reach and value
chain
Delivering value to shareholders
24 cents in the last 12 months
10 10 10 10
12 12 12
Mar
2016
Sep
2016
Mar
2017
Sep
2017
Mar
2018
Sep
2018
Mar
2019
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1. Fully imputed
1987199219972002200720122017
$203.7m
$1.2m
Cash dividend
Cents per share¹
Revenue
2018

LATEST ANNOUNCEMENTS
Current EBITDA Guidance
FY2019 to a range of between $32.5m to $33.5m,
inclusive of the IFRS 16 adjustments of $5.6m.
Seeka continues its heartland growth story in 2019
Purchase of kiwifruit orcharding, packing and coolstore
business, Aongatete Coolstores Limited, for $25m






Analyst Briefing Pack available at seeka.co.nz or contact:
Stuart McKinstry Chief Financial Officer
stuart.mckinstry@seeka.co.nz | +64 21 221 5583
Nicola Neilson Group Financial Accountant
nicola.neilson@seeka.co.nz | +64 7 573 0303
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seeka.co.nz