Seeka provides ASM Presentation

Annual Shareholder Meeting
17 April 2020

Agenda
2
Welcome to Seeka’s online meeting
6
General business
5
Resolutions
4
Chief executive’s report
3
Chairman’s introduction
2
Proxies and voting instructions
1
Directors

Directors
3
Cecilia TarrantJohn BurkeAmiel (Mel) Diaz
Ashley Waugh
Chair audit and risk committee
Fred Hutchings
Chairman
RatahiCrossMarty Brick

Proxies
4
Chair6,527,708
Te HoripoKaraitiana1,714,410
New Zealand Shareholders' Association993,107
Marty Brick83,000
Total9,318,225

Voting and asking questions
5
The voting boxQuestion box

Chairman’s Introduction
Fred Hutchings

Introduction
Protecting our stakeholders in 2020
2019 Review
−Progressing our strategy
−Focus on achieving excellence
−Strategic growth through capacity builds
−Implementation of NZ IFRS 16 Leases
−Financial highlights
−Balance sheet strength
−Dividend and directors’ fees
7

Protecting our stakeholders in 2020
Seeka is a registered essential business
We continue to pick, pack and ship this season’s crop
We are keeping our people safe
COVID-19 will impact 2020 earnings
−Too early to quantify
−Examining all expenditure
−Impact may be offset to some extent by ongoing orchard sales programme
50% of SunGold and 25% of Hayward kiwifruit harvest completed
−Scheduled to finish early June
−Update shareholders once harvest complete
Confidence in Seeka’s leadership team to achieve the best outcomes for all stakeholders
−Industry leaders
Day 23 of Government lockdown

2019 Review
9

Progressed Seeka’s growth strategy
Continuing investment in New Zealand post harvest capacity
−$15.9m Kerikeri new packhouse and grader – with new coolstoresin 2020
−$21.4m Oakside grader upgrade and coolstore expansion
Aongatete acquisition
−$24.5m acquisition including $10.5m assumed debt
−Accretive acquisition performing ahead of expectations
Orchard sales reducing debt as planned, restoring balance sheet strength
−$34.6m Northland orchards sold and settled with term supply to Seeka
−$27.1m held for sale at year end
−$10.1m subsequently settled in 2020
10
Disciplined investment and divestment strategy being enacted
1
2
3

Focused on achieving excellence
Australian sale and lease back project
−Project remains in progress – held up due to COVID-19
−Likely requires Australian Foreign Investment Review Board approval –can take 6 months
Consolidated our business to capture improvements
−Company structure reset, senior management structure reset
−Aongatete team integrated into Seeka
−More synergies in 2020
Debt well positioned
−Continues to reduce
−Sales programme on track – but taking longer
−Disciplined process around investments
11
Positioning a resilient business for growth
2
3
1

Strategic growth through capacity builds
$144m invested in post harvest
over 5 years
−Built to handle forecast volumes
−Supply and demand driven
−Capacity in place for next two seasons
once Kerikeri completed
Next innovation is offshore storage
−Managed by post harvest companies
−Industry innovation
12
Building capacity to handle increasing produce volumes
Capacity builds
Major projects
$18m
KKP &
Transpack
Oakside
Katikati
Coromandel
Northland
20152018201920172016
$16m$41m$21m$31m$35m
Australia
$18m$21m$8m$20m$3m
Oakside

Implemented international accounting standard for leases
All reported results comply with NZ IFRS 16 Leases
−Including 2018 comparatives
Seeka’s reported financial results change
At the start of a lease
−Lease interest costs and lease depreciation are higher than
actual lease costs
−But lower later in the lease period
When Seeka sells then leases back an orchard
−The full gain on sale is not recognised in the statement of
financial performance
−But Seeka still pays tax on the full gain
$1.2m impact on net profit after tax
−Net effect of changes to lease depreciation, lease interest and
the recognition of income and tax on orchard sales
Significant effort by Seeka’s accounting team
13
NZ IFRS 16 Leases
NZD millions
2019
Pre IFRS 16
IFRS 16
adjustment
2019
Reported
Revenue238.2( 1.3)236.9
Gross profit40.66.947.5
EBITDA27.66.934.5
Net profit after tax8.1( 1.2)6.9

All results and comparatives consistent with NZ IFRS 16 Leases
Financial highlights
$237m record revenue – up 16%
−Revenue growth in orcharding and post harvest
$34.5m EBITDA – up 4%
−EBITDA exceeds October guidance ($32.5m ~ $33.5m)
$6.9m Net profit after tax – up 3%
$368m of assets –up $67m –22% increase
−Includes $45m of right-of-use lease assets
14
Year ended 31 December 2019 –audited
20192018Growth
NZD millionsRestated
Revenue236.9 203.7 16%
Cost of sales189.4 158.0 20%
Gross profit47.5 45.8 4%
EBITDA34.533.34%
Net profit after tax6.96.73%
Total assets368.2300.922%
Right-of-use lease assets44.732.737%

$116.8m
$84.7m
$32.1m
December
2019
Orchard assets
held for sale or sold
Debt after
orchard sales
1. $27.1m of assets held for sale plus $5.0m of related debtors
Disciplined focus on bank debt
$116.8m net bank debt at 31 December 2019
−$31.3m repaid since 30 June 2019
$34.6m of asset sales in 2019
$32.1m of assets for sale or sold at year end
−Acquired as part of strategic entry into new regions
−Orchards refurbished for on sale
$10.1m sold at year end and settled February 2020
−$22.0m being marketed and expected to settle in 2020
15
1
3.38x
Debt to EBITDA
2.45x
Debt to EBITDA
Net bank debt

Dividend and directors’ fees
$0.12 per share dividend was declared
−$0.08 from normal operating earnings
−$0.04 from asset sale settled in February
Payment scheduled for 17 April cancelled
−Prudent to cancel due to COVID-19 and associated uncertainty
−To be reconsidered at June Board meeting
Director fees reviewed
−Proposed $80k increase to $530k per annum
−Fee increase was withdrawn
16
Cancellation of the dividend prudent in current business environment
3.38x
Debt to EBITDA
2.45x
Debt to EBITDA

Chief executive’s report
Michael Franks

Safety
3 serious harm injuries in 2019
−Aongatete, Oakside, Bunbartha
18
2019 results
2020 H&S targets2019 Actuals2020 Targets
Total recordable injury
frequency
5.0Less than 4.5
Notifiable injuries30
Notifiable injuries
including incidents
31
Severity rate10.5Less than 4.5
Focus areas
−Traffic management
−Moving plant
−Machine guarding
−Fatigue

Seeka’s value chain
A New Zealand company feeding the world
Orcharding, NZ
Growing kiwifruit, avocado and
kiwiberry
-Owned, leased, managed and
long term leased orchards
-Orchard development
-Largest kiwifruit grower
Post harvest, NZ
Picking, packing, coolstoring
and dispatch of produce
-8 modern facilities
-Delicious Nutritious Food
Company
-Innovation and maintenance
team
Retail services, NZ
Marketing produce in NZ and
Australia
-Adding value
-Marketing and distribution of
produce
-Growing wholesale business in
Auckland and Christchurch
Seeka Australia
Own orchards plus post
harvest facilities
-Adding value
-Kiwifruit, nashi, European pears
-Largest kiwifruit grower
-Fully integrated business
of export kiwifruit
are grown by Seeka
8
%
of export kiwifruit
are packed by Seeka
20
%
Innovative services
and products from
our value chain
Growing and retailing
our Australian fruit
direct to the markets
19
APPROXAPPROX

Financial performance -Orchard operations
20192018Growth
NZD millionsRestated
Revenue72.4 52.8 37%
EBITDA - as reported5.0 4.2 19%
EBITDA - pre NZ IFRS16 Leases3.6 3.4 6%
Total assets54.2 39.0 39%
Right-of-use lease assets13.03.5
Operational performance
New NZ IFRS16 Leases standard implemented FY19, with FY18 results restated.
Orchard operations – New Zealand
$72.4m revenue – up 37% on 2018
−Lift in kiwifruit returns
−Long term leased orchards reaching full production
−Increased demand for management services
−Includes Aongatete
−But Hayward yields 17% down from dry summer
$5.0m EBITDA – up 19%
−Benefited from IFRS 16 Leases standard
New long term leases in development
56 hectares of kiwifruit and avocados
−Term commercial arrangements with land owners
−New income streams from 2020
Growing kiwifruit, avocado and kiwiberry – led by Kevin Halliday and Simon Wells
20
8
8.9
5.9
7.6
7.5
1.2
2.3
2.6
3.1
3.9
9.2
11.2
8.5
10.7
11.4
20152016201720182019
NZ kiwifruit grown
Millions of trays
SunGold
Hayward

New NZ IFRS16 Leases standard implemented FY19, with FY18 results restated.
Values may not always sum due to rounding
Post harvest operations – New Zealand
$140.1m revenue – up 13%
−Includes Aongatete
−Increase in overall trays
−Per tray margins and efficiencies achieved
−But Hayward volumes down on expectation
−DNFC earnings affected by lower kiwiberry volumes
$41.0m EBITDA – up 10%
Capacity in place for next two years
−Once Kerikeri completed
21
Harvesting, packing, coolstoring, dispatching and processing produce –led by Kevin Halliday and Lance Tasker
Financial performance –Post harvest operations
20192018Growth
NZD millionsRestated
Revenue
140.1
123.813%
EBITDA - as reported
41.0
37.2 10%
EBITDA - pre NZ IFRS16 Leases
35.1
32.1 9%
Total assets
222.9
165.435%
Right-of-use lease assets
23.8
22.5
Operational performance
22.1
23.5
15.6
19.2
17.4
4.4
7.4
8.7
10.814.4
27.8
32.4
25.7
31.4
33.5
20152016201720182019
NZ kiwifruit handled
Millions of trays
Class 2 & other
SunGold
Hayward

New NZ IFRS16 Leases standard implemented FY19, with FY18 results restated.
Retail services operations – New Zealand
$8.6m revenue – down 25%
−Lower kiwiberry volumes from dry summer
−Lower avocado volumes
$1.7m EBITDA – down 26%
Business revitalised in 2019
Significant improvement late 2019
−Trading turnaround Q4
Growth in retail services set to continue
22
Marketing produce, retail services and Kiwi Crush marketing –led by Verena Cunningham
Financial performance –Retail services operations
20192018
NZD millionsRestated
Revenue8.611.5(25%)
EBITDA - as reported1.72.3 (26%)
EBITDA - pre NZ IFRS16 Leases1.3 1.6
Total assets11.2 13.3(16%)
Right-of-use lease assets3.84.2

New NZ IFRS16 Leases standard implemented FY19, with FY18 results restated.
Australian operations
$11.6m revenue – down 22%
−Kiwifruit yields down 27% following hot summer
−Green nashi unprofitable – have removed some plantings
Kiwifruit orchards marketed for sale and leaseback
−Includes long-term supply commitment
2020 growing conditions are better
−Removed some unprofitable green nashi
−Improved growing techniques
Planted areas being reset to match market opportunities
96 hectares in development
−Investing in new Club pear varieties – Ricóand Lanya
−Establishing Gold / Red kiwifruit variety
−Renewing varieties
Growing, packing and retailing kiwifruit, nashi and European pears –led by Rob Towgood
23
Financial performance –Retail services operations
20192018
NZD millionsRestated
Revenue11.614.9(22%)
EBITDA - as reported(0.6)(0.1)
EBITDA - pre NZ IFRS16 Leases(0.7) (0.1)
Total assets52.2 49.26%
Right-of-use lease assets0.10.1
Operational performance
2.6
1.8
1.3
0.9
1.8
1.4
5.6
4.2
20182019
Fruit handled
Thousands of tonnes
Other
Pears
Nashi
Kiwifruit

Trends in financial performance
Improvement in EBITDA from $13.9m to $34.5m since 2015
2019 result downsides
−Lower Hayward yields and volumes
−Lower Kiwiberry volumes
−Lower volumes in Australia
−Lower earnings in SeekaFresh
2019 result upsides
−Gains on sales of assets
−Increased volumes arising from Aongatete
−Synergies in the Aongatete purchase
Overall EBITDA is behind expected earnings levels
−Seeka focused on operational improvements
24
EBITDA reflects the cash generated by the business
$13.9m
$24.8m
$23.1m
$33.3m
$34.5m
20152016201720182019
EBITDA

Operating in growth industries
Kiwifruit industry targeting $4.5b global revenue by 2025
−New Zealand industry volume to increase by 25%
Major investments in SunGold production
−750 hectares of licence released each year through to 2022
Avocado industry targeting 10,000 hectares by 2046
−Large commercial developments with a focus on Northland
Seeka’s goal is to efficiently handle the increased volumes
−Avoid inefficient investment in New Zealand
−Evaluate offshore coolstorage
25
Feeding the world with nutritious produce
35.4m
37.1m
38.1m
40.7m
43.7m
45.8m
202020212022202320242025
SunGoldHaywardOther
Seeka’s kiwifruit outlook
SunGold and Hayward trays to post harvest

Seeka is increasingly focused on sustainability
26

COVID-19 Coronavirus pandemic and 2020 commentary
Seeka is an essential service
−Staff and stakeholder safety is not negotiable
−2m distancing initially cut production by 50%
−Innovation lifted production to 85%
−Costs are higher per unit handled
Labour very short
370 experienced Seeka RSE workers not in the country
−Reliable labour an issue with constant staff turnover
−100 to 150 people short a day
−Improved incentives for key staff
Industry challenges
−Industry maturity testing added new complexity
−Seeka’s lab VLS delivering valuable testing service
SunGold crop harvesting to expectations
Hayward yields currently below forecast
27
COVID-19 impacting 2020 operations and earnings
Seeka has the capacity, protocols and staff to safely
harvest, pack and ship the 2020 kiwifruit crop

Resolutions
Fred Hutchings

Resolution 1
"To receive, consider and adopt the Annual Report of Seeka and the Financial
Statements for the year ended 31 December 2019 together with the Auditor’s
Report thereon."
Ordinary resolution
29

Resolution 2
Director elections
3 directors standing for re-election
Board supports the candidates for re-election
Ordinary resolution
30
Cecilia TarrantJohn BurkeMarty Brick

Resolution 2a
2a. “To re-elect Martyn Brick as a Director.”
Marty Brick to address the meeting
3 minutes to address the meeting
31

Resolution 2b
2b. “To re-elect John Burke as a Director.”
John Burke to address the meeting
3 minutes to address the meeting
32

Resolution 2c
2c. “To re-elect Cecilia Tarrant as a Director.”
Cecilia Tarrant to address the meeting
3 minutes to address the meeting
33

Resolution 3
"To record the re-appointment of PwC (PricewaterhouseCoopers) as auditor of
the Company, and to authorisethe Directors to fix the remuneration and
expenses of the auditor for the coming year."
Ordinary resolution
34

Voting
If you have not already done so,
can shareholders now please cast your vote
35

General business

My thanks
Directors
For diligent attention to the company
Management and staff
For an excellent year
Growers and contractors
For ongoing support
Customers and consumers
For buying our produce
Shareholders
For continuing interest in the company
37
You have 5 minutes left to cast your vote

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