Interim Result Announcement

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019
S:\Executive\Stock Exchange\Year Ended 2020\Interim Result\Sanford Results Announcement HY20 5cps.docx


Results for announcement to the market
Name of issuer Sanford Limited
Reporting Period 6 months to 31 March 2020
Previous Reporting Period 6 months to 31 March 2019
Currency NZD

Amount (000s) Percentage change
Revenue from continuing
operations
$245,512 (7.4%)
Total Revenue $245,512 (7.4%)
Net profit/(loss) from
continuing operations
$19,019 (16.8%)
Total net profit/(loss) $19,019 (16.8%)
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.05000000
Imputed amount per Quoted
Equity Security
$0.01944444
Record Date 12 June 2020
Dividend Payment Date 19 June 2020
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.95481433 $1.08758637
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
For explanation on the operational results please refer to the
announcement commentary, the investor presentation and the
Interim Report for the six months ended 31 March 2020
Authority for this announcement
Name of person

authorised
to make this announcement
Dean McIntosh
Contact person for this
announcement
Katherine Turner
Contact phone number 021 470 436
Contact email address kturner@sanford.co.nz
Date of release through MAP

28/05/2020

Unaudited financial statements accompany this announcement.

---

Distribution Notice

Updated as at 18 December 2019
S:\Executive\Stock Exchange\Year Ended 2020\Interim Result\Sanford Distribution Notice HY20 5cps.docx



Please note: all cash amounts in this form should be provided to 8 decimal places

Section 1: Issuer information
Name of issuer Sanford Limited
Financial product name/description Ordinary Shares
NZX ticker code SAN
ISIN (If unknown, check on NZX
website)
NZSANE0001S0
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 12 June 2020
Ex-Date (one business day before the
Record Date)
11 June 2020
Payment date (and allotment date for
DRP)
19 June 2020
Total monies associated with the
distribution
$4,675,307
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution $0.06944444
Gross taxable amount $0.06944444
Total cash distribution $0.05000000
Excluded amount (applicable to listed
PIEs)
$ n/a
Supplementary distribution amount $0.00882353
Section 3: Imputation credits and Resident Withholding Tax
1

Is the distribution imputed Fully imputed
Partial imputation
No imputation
If fully or partially imputed, please
state imputation rate as % applied
2

100%
Imputation tax credits per financial
product
$0.01944444

Resident Withholding Tax per
financial product
$0.00347222
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
%
Start date and end date for
determining market price for DRP
[dd/mm/yyyy] [dd/mm/yyyy]
Date strike price to be announced (if
not available at this time)
[dd/mm/yyyy]
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)

DRP strike price per financial product
$
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
[dd/mm/yyyy]
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Dean McIntosh
Contact person for this
announcement
Katherine Turner
Contact phone number 021 470 436
Contact email address kturner@sanford.co.nz
Date of release through MAP

28/05/2020

---

28 May 2020

Name of Listed Issuer: SANFORD LIMITED (SAN)
INTERIM FINANCIAL RESULTS for the 6 months ended 31 March 2020

Sanford Interim Results – Diversity Providing Resilience for New
Zealand’s Largest Seafood Company in Testing Times
Sanford Limited (NZX: SAN) has reported statutory net profit after tax (NPAT) for the first half
of its 2020 financial year of $19.0 million, 17% behind last year’s result of $22.9 million for
the same period. Adjusted (underlying) Earnings Before Interest and Tax (EBIT) of $23.2
million for the six months to 31 March, 2020. This represents a 29% decrease on adjusted
EBIT from the same period last year ($32.6 million) or a 16% decrease on a comparable
basis, when excluding the pelagic business which Sanford sold in March 2019. Total
revenue was $245.5 million, a 7% decrease on the same period in 2019 ($265.0 million).

Sanford is New Zealand’s largest and oldest seafood company and has a diverse range of
interests across fishing and aquaculture. In recent years, it has made a strategic shift into
higher value products such as Greenshell mussel powders and high end branded salmon.

The company’s first half results were impacted in its fishing division by a shortfall in catch
volumes for toothfish, caused in part by weather factors. Pricing for this species was also
softer globally, following the impact of COVID-19. Coronavirus impacts were also felt in other
areas of the business, particularly toward the end of the reporting period. The sale of Sanford’s
Tauranga-based pelagics business (catching mackerels and tuna) at the end of March 2019,
accounted for the sales volume difference to prior year.
Despite the challenges, the company noted that normalised EBIT per greenweight kilogram
improved across its aquaculture business with salmon at the Stewart Island farm showing
particularly good growth with a 19% increase in bio-mass. However, this wasn’t enough to
counter the shortfall in the highly valuable toothfish catch and softer pricing, leading to an
overall EBIT/kg decrease to $0.46 from $0.57 on the prior year.
CEO Volker Kuntzsch noted that, while the overall interim result was below expectations,
there was clear strength in salmon and Greenshell mussels, demonstrating the benefits of
Sanford’s transition into a more diverse company.
“We were pleased that overall sales volumes for our salmon were up 2% versus the same
period last year and sales revenue increased 6%. Our Big Glory Bay grown salmon are
exceptional and have been highly sought after in some of the world’s finest restaurants.
Unfortunately, food service channels have been severely impacted by COVID-19. Domestic
retail sales have been holding up well and we are hopeful of continuing growth here.”
Mr Kuntzsch pointed out that Sanford’s strategy to address the relatively volatile performance
of the fishing business is a long term one.
“Our aquaculture operations are relatively young but development there, through investments
into operational excellence, market development, a focus on higher value sales channels and
innovation, tend to bear fruit much faster than in fishing. Our mussel hatchery, SpatNZ, our
mussel powder operation, Enzaq, and the activities leading to improved growth of our salmon
are just a few of the highlights. The projects we have underway in our diverse fishing division,
both inshore and in the deep sea fleet are going well, but they are substantial undertakings
requiring significant investment of capital, time and expertise and therefore require our
patience as we tackle the move from commodity to added value, species by species.”
Regarding the impact of the coronavirus on Sanford, the company’s Chief Financial Officer,
Katherine Turner says being an essential business was a privilege, which did provide some
protection against the impacts of the response to the virus, but never the less, the company
was affected.
“We did experience a short interruption to normal operations in March while we put in place
changes right across the business which were necessary to meet Government COVID-19
safety requirements. However, thanks to incredible efforts from our fishing, farming and
processing teams, we were able to return to relatively normal operations and supply levels
within two weeks.

The issues we face now are on the demand side. Consumer behaviour has changed and
the foodservice industry is impacted through restrictions on people’s movements and the
absence of tourism. We are very conscious of the challenges faced by many of our
customers. Retail and on-line sales, although only a small share of our total business, show
strong growth and we are aggressively pursuing further leads in these areas.”
Mr Kuntzsch acknowledges the volatile demand and the uncertain future and believes it is
unlikely that the company will be able to make up the first half earnings shortfall in the second
half of the year.
He says “in the interests of taking a prudent approach, our directors have decided that our
interim dividend payment will be 5c per share (versus 9c for the same period last year).”
But he says despite the global uncertainty caused by the virus and its impacts in the near
future, Sanford has many reasons to be positive about the long term.
“We are a vertically integrated food producer with diverse products on offer through a wide
range of channels and into a variety of markets. Our seafood is a sustainable, healthy and
clean protein. The COVID-19 pandemic has seen our people step up to the challenge,
demonstrating that they are a resilient, determined and caring group. We are very proud of
what our people have already achieved, as we move into a future of challenge and change.”



For more information or to arrange interviews, please contact:
Fiona MacMillan
GM Corporate Communications
Sanford
fmacmillan@sanford.co.nz
021 513 522
For investor relations queries, please contact:
Volker Kuntzsch
Chief Executive Officer
vkuntzsch@sanford.co.nz

---

—
INTERIM REPORT
—

2020

Revenue
$245.5m
▼ 7%
2019 $265.0M
Interim Dividend
5¢
▼ 4¢
2019 9¢
NPAT
$19.0m
▼ 17%
2019 $22.9M
Employee Engagement
73%
▲ 1%
2019 72%
Adjusted EBIT
$23.2m
▼ 29%
2019 $32.6M
EBIT / KG
46¢
▼ 11¢
2019 57¢
2Sanford Interim Report 2020
Key Figures

—
CHAIRMAN AND
CEO REVIEW
—
This report on the half year results to 31 March 2020, reflects the
benefits of Sanford’s diversity in an increasingly demanding landscape.
Visible progress across our aquaculture and fishing units highlights the
effectiveness of our strategy, but this continues to be impacted by our
heavy dependence on global commodities with their associated market
fluctuations, our aging infrastructure and natural conditions.
The consequences of COVID-19 on the foodservice industry globally generally
led to a strong reduction in demand for seafood commodities, resulting in weaker
prices. As some species, in our case toothfish and squid, are primarily consumed
in restaurants, demand and prices for these were negatively affected.
We are reporting statutory net profit after tax (NPAT) for the first half of $19.0 million
which is 17% behind last year’s result for the same period of $22.9 million. Adjusted
(underlying) Earnings Before Interest and Tax (EBIT) was $23.2 million for the six
months to 31 March 2020. This represents a 29% decrease on adjusted EBIT from
the same period last year ($32.6 million) or a 16% decrease on a comparable basis,
when excluding the pelagic business which we sold in March 2019.
Overall sales volume was down 13% for the 2020 first half year against the same
period last year, but total sales revenue decreased by only 7% (total revenue was
$245.5 million versus $265.0 million for the same period in 2019), reflecting a
stronger result in our King salmon and Greenshell mussel businesses, partially
offsetting the poorer than expected numbers in wildcatch. After excluding
pelagics, the divested Tauranga-based mackerel and tuna business, overall sales
volume was down 3% and sales revenue down 4%.
Sir Robert McLeod
CHAIRMAN
Volker Kuntzsch
CEO
The Directors are
pleased to present the
Interim Report of
Sanford Limited for
the six months ended
31 March 2020.
For and on behalf of
the Board of Directors:
Fiona Mackenzie
DIRECTOR
27 May 2020
Sir Robert McLeod
CHAIRMAN
27 May 2020
Chairman and CEO Review
3Sanford Interim Report 2020

COVID-19 affected our first half operationally only towards the end of the period.
Our plants were shut down for a few days to prepare for the requirements to operate
as an essential business during New Zealand’s lockdown period. Some orders from
overseas customers were cancelled and a number of shipments were rolled over into
the second half of the reporting year.
Although normalised EBIT per greenweight kilogram improved across our
aquaculture business, this wasn’t sufficient to counter the shortfall in our highly
valuable toothfish catch and softer pricing, leading to an overall EBIT/kg decrease
to $0.46 from $0.57 in the prior year.
Naturally, we are disappointed with a result that has fallen short of our expectations,
although there are several positives which deserve to be highlighted in this review.
FISHING – TOOTHFISH FALLS SHORT
We experienced generally good catches of fresh fish across our inshore fleet and of
frozen-at-sea product across most of our deep water fleet. Catch volumes, excluding
pelagic species, were up 11% on the same period last year when the San Granit was
out of action for three months. However, a 39% reduction in the high value toothfish
catches in the Ross Sea more than offset this positive result during the year. The
lower toothfish catch was partly a reflection of the limitations of our ice class vessels
which are not rated to venture into some of the more ice bound areas of the Ross
Sea, which other fishing companies were able to access with newer vessels during the
most recent fishing season. This shortfall in our catch was exacerbated by reduced
prices for toothfish as demand was impacted by COVID-19 internationally. The result
was a negative financial impact in excess of $5m EBIT compared to prior year.
Much of the decrease in total sales volume in our fishing business year-on-year
(-22%) is due to the fact that the prior year also included a successful season of our
pelagic business (mackerels, tuna) in Tauranga, which we sold at the end of March
2019. On a like-for-like basis (i.e. excluding pelagic species from last year’s sales
numbers), sales volumes (greenweight) from our fishing business declined 8%. The
underlying decline in sales volumes (-8%) and respective sales revenue drop (-9%) was
the result of softer demand for hoki fillets, smaller sized squid and lower toothfish
volumes and pricing.
GREENSHELL MUSSELS – CONTINUING PROGRESS
The performance of this business unit was very encouraging with a 5% sales volume
and a 13% revenue increase compared to the same period last year. With EBIT and
We experienced generally
good catches of fresh fish
across our inshore fleet and
of frozen-at-sea product
across most of our deep
water fleet.
Chairman and CEO Review
4Sanford Interim Report 2020

EBIT/kg continuing to grow, we are confident that our focus on investing in volume
growth while diversifying our product portfolio through innovation and executing
our sales channel strategy will create more value with every kilogram of mussels.
Progress is also supported through the high performance of the spat we breed at
our mussel hatchery SPAT
nz in Nelson, delivering consistent product of high
quality and yield.
We had expected an even stronger growth in this category but were impacted by
COVID-19 in March as orders were delayed by customers into April. Our harvesting
and processing capacities were also affected by the new requirements for safety
and social distancing when New Zealand moved to Alert Level 4.
In November, we announced our plans to build a new marine extract centre in
Blenheim. This facility will significantly increase our volumes of Greenshell mussel
powder production and will also enable us to drive innovation in other areas of the
extracts business. Work is underway on this project, although we expect there to
be some disruptions caused by COVID-19.
KING SALMON – FROM STRENGTH TO STRENGTH
Our overall salmon result was boosted by an increase in stock in water, with our
biomass up by 19% on September 2019. We are producing larger fish, partly due to
increased oxygenation of the fish enclosures and an enhanced net cleaning regime
which also improves oxygen levels. In addition to the fish being larger, we also
experienced lower salmon mortalities as a result of the above-mentioned activities
and cooler water temperatures throughout the period.
Sales volumes for our salmon were up 2% versus the same period last year and sales
revenue increased 6%.
Foodservice channels, where much of our high-end Big Glory Bay salmon has been
targeted, developed very encouragingly domestically and in overseas markets and
feedback on the quality and performance of our fish was exceptional.
Unfortunately, these channels are now severely impacted by the coronavirus.
However, with changing consumer behaviour retail is trending upwards both locally
and abroad, compensating for the losses experienced in foodservice.
RESPONDING TO MAJOR DISRUPTIONS
In a world where COVID-19 has upended so many of our expectations, it is difficult
to write any message to our people and our investors without the impact of the
virus being the dominant theme. This interim report, covering the 6 months ended
We are producing larger
fish, partly due to increased
oxygenation of the fish
enclosures and an enhanced
net cleaning regime which
also improves oxygen levels. In
addition to the fish being larger,
we also experienced lower
salmon mortalities as a result
of above mentioned activities
and cooler water temperatures
throughout the period.
KING SALMON
GREENSHELL MUSSELS
– REVENUE INCREASE
13%
COMPARED TO
SAME PERIOD 2019
Chairman and CEO Review
5Sanford Interim Report 2020

March 31, 2020, is mostly focused on the period before the main impacts of the virus
began to be felt by us in March and before it changed the trajectory for so many
businesses, governments and citizens globally.
As an essential business we were able to continue fishing, harvesting and processing,
albeit under strict health and safety rules to mitigate the potential spread of the
virus. Our teams managed to successfully implement the changes to their working
environment over a long weekend, while a company-wide communications drive
addressed the fears of our employees associated with returning to work in this
precarious situation.
Our ability to supply returned to relatively satisfactory levels within two weeks,
but global demand was and remains severely impacted by restrictions on people’s
movements, including visiting restaurants. With most seafood being consumed in the
hospitality sector in countries like the US, a large sales channel for seafood collapsed
overnight. Retail and home delivery has certainly been the winner for seafood across
all major markets.
Domestically, we were able to shift sales volumes into fast growing online sales
through our Sanford and Sons outlet and at the time of writing this report, online
sales and home deliveries of our seafood continue to increase strongly.
Internationally, countries in Europe and the US continue to suffer from the effects
of limitations introduced to combat the spread of COVID-19, with the foodservice
sector in those countries largely being in lockdown. Seafood consumption in China,
on the other hand, is improving back to pre-COVID-19 levels.
The speed at which our teams retooled our operations to the new strict requirements
and the level of comfort that was soon expressed by those employees that returned
to work amidst these demanding circumstances highlighted a level of engagement
that we are very proud of. This attitude was also reflected in a pulse survey of our
people engagement taken in February, which showed a further small increase on the
main survey result in 2019 with a score of 73% (up from 72% in September 2019). This
is a pleasing result and indicates our people are in the right frame of mind to take us
forward through shifting waters.
WHAT THE FUTURE HOLDS – CHARTING OUR WAY THROUGH UNCERTAINTY
Much changed when COVID-19 began to make its presence felt and we continue to
face an environment of great uncertainty. At the time of writing this report we are
managing the business to a likely case scenario on our planning horizon, while
remaining alert to a worst case scenario. Close contacts with our customer base
around the globe informs a more regular forecasting discipline, which we maintain
during this time along with weekly board meetings.
The speed at which our teams
retooled our operations to
the new strict requirements
and the level of comfort that
was soon expressed by those
employees that returned to
work... highlighted a level of
engagement that we are very
proud of.
Chairman and CEO Review
6Sanford Interim Report 2020

The longer term future, however, is supported by three core strengths in our business
which provide a strong foundation in these uncertain times.
First, our diversity has once again proven to be of great benefit to us, and particularly
our geographic diversity gives us reason to be optimistic. While we felt the impact of
consumption reductions in Asian markets early in this calendar year, these markets
have begun to strengthen again as other markets, particularly the US and Europe,
have weakened. Our increasing focus on our domestic market and Australia over the
last few years aligns well with consumers focusing more on domestically produced
food. Our recent acquisition of our long time trading partner, Melbourne-based
Saltwater Seafood, complements Sanford’s supply chain in a region known for
discerning consumers.
Our second core strength is rather obvious – we produce food and not just food, but
a sustainable, clean and healthy protein. While demand patterns are changing and will
continue to change, and we are certainly seeing a period of great disruption in global
markets, we know the world did not have enough seafood to go around before this
pandemic took hold. People still need to be fed and we are offering the world beautiful
New Zealand seafood at a time when safety and health are increasingly at the front of
people’s minds. Our nutraceuticals (Greenshell mussel powder) and future innovative
products delivered through our Marine Extracts Centre bode well for this trend.
Finally, our most important strength is our people. They have shown themselves to
be resilient, ambitious, determined and strong throughout the COVID-19 crisis so far.
From just a few hours into the crisis, we had formed a leadership group to help us deal
with the developing situation. They adopted a focused purpose – to continue to feed
New Zealand and the world while keeping our people safe and secure – and this has
guided us very successfully in our crisis management. Our Operations teams have
moved at speed to put in place all the required changes to keep themselves safe at
highest possible productivity and quality, as New Zealand has moved between Alert
Levels. They have been ably supported by our HR, Safety and Communications Teams.
Our Sales and Marketing teams have worked tirelessly to serve existing customers,
secure new ones and develop new product mixes and formats in response to changing
market requirements. As we write, we have several new products in development with
the work on these being done at a rapid pace. We have put together a future focus
group of Sanford people representing a cross section of the business. This highly
diverse group has been looking at where upcoming challenges and opportunities lie
and their work will help keep our eyes on the shifting horizon, as well as the more
immediate ground in front.
All of this has been done with an eye on our values of passion, care, integrity and
achieving together. With all the good work and innovation happening, our share of
commodity product in our portfolio is still significant and at times like these that is
disadvantageous, but our focus remains steadfast and we do not lower our standards
or forget our values in a crisis like this.
We go into these uncertain times with a strong balance sheet. We have a low gearing
ratio and significant debt headroom, which provides resilience in the face of the
storms that lie ahead.
As CEO and Chair of Sanford Limited, we are intensely proud of what our people have
achieved, as we move into a future of challenge and change.
Sir Robert McLeod Volker Kuntzsch
CHAIRMAN CEO
All of this has been done
with an eye on our values of
passion, care, integrity and
achieving together.
Chairman and CEO Review
7Sanford Interim Report 2020

Interim Financial Statements
8Sanford Interim Report 2020
GAAP TO NON-GAAP RECONCILIATION
Sanford’s standard profit measure prepared under New Zealand GAAP is net profit. Sanford have used non-GAAP measures
when discussing financial performance in this document. The Directors and management believe that these measures provide
useful information as they are used internally to evaluate divisional and total Group performance and to establish operating
and capital budgets. Non-GAAP profit measures are not prepared in accordance with NZ IFRS (New Zealand equivalents to
International Reporting Standards) and are not uniformly defined, therefore the non-GAAP profit measures included in this
report are not comparable with those used by other companies. They should not be viewed in isolation or as a substitute for
GAAP profit measures as reported by Sanford in accordance with NZ IFRS.
DEFINITIONS
EBITDA: Earnings before interest, taxation, non-trading currency exchange losses, depreciation, restructuring,
adjusting items, impairment and gain (loss) on sale of investments, intangible and long-term assets.
Reported EBIT: Earnings before interest, taxation, non-trading currency exchange losses and gain (loss) on sale of
investments, intangible and long-term assets.
Adjusted EBIT: Reported EBIT adjusted for impairment, restructuring and other one-off items.
GAAP TO NON-GAAP RECONCILIATION
Unaudited
6 Months ended
31 March 2020
$000
Unaudited
6 Months ended
31 March 2019
$000
Audited
12 Months ended
30 September 2019
$000
Reported net profit for the period (GAAP) 19,019 22,862 41,692
Add back:
Income tax expense 5,064 9,0 0 4 17, 6 31
Net interest expense 4,412 4,209 7, 8 6 6
Non-trading currency exchange losses – 26 26
Net gain on sale of investments, property, plant and equipment
and intangibles (4,047) (3,580) (4,613)
Reported EBIT 24,448 32,521 62,602
Adjustments:
Impairment of assets 527 25 635
Restructuring costs 29 44 1,608
Other one-off items (1,771) – –
Adjusted EBIT 23,233 32,590 64,845
Add back:
Depreciation 13,438 10,317 20,884
EBITDA 36,671 42,907 85,729

9Sanford Interim Report 2020
Consolidated Condensed Income Statement 10
Consolidated Condensed Statement of Comprehensive Income11
Consolidated Condensed Statement of Financial Position12
Consolidated Condensed Statement of Cash Flows13
Consolidated Condensed Statement of Changes in Equity15
Notes to the Interim Financial Statements17
FOR THE SIX MONTHS ENDED 31 MARCH 2020
−
INTERIM
FINANCIAL
STATEMENTS
−

Interim Financial Statements
10Sanford Interim Report 2020
CONSOLIDATED CONDENSED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 MARCH 2020
Note
Unaudited
6 months ended
31 March 2020
$000
Unaudited
6 months ended
31 March 2019
$000
Audited
12 months ended
30 September 2019
$000
Revenue3245,512265,046545,121
Cost of sales( 19 7, 8 6 3 )(210,869)(4 3 7,74 5 )
Gross profit47, 6 4954,1771 07, 376
Other income710,0517, 3 3 712,663
Distribution expenses(5,049)(4,725)(9,6 01)
Administrative expenses(16,247)(15,998)(30,945)
Other expenses( 7, 8 6 4 )(4,797 )(12,853)
Operating profit28,54035,99466,640
Finance income192245678
Finance expense(4,598)(4,474)(8,557)
Net finance expense(4,406)(4,229)( 7, 8 7 9 )
Share of (loss) profit of equity accounted investees(51)101562
Profit before income tax24,08331,86659,323
Income tax expense(5,064)(9,0 0 4)( 17, 6 31 )
Profit for the period19,01922,86241,692
Profit attributable to:
Equity holders of the Company19,01822,85341,696
Non controlling interest19(4)
19,01922,86241,692
Earnings per share attributable to equity holders of the
Company during the period (expressed in cents per share)
Basic and diluted earnings per share (cents)20.324.444.6

Interim Financial Statements
11Sanford Interim Report 2020
CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 MARCH 2020Unaudited
6 months ended
31 March 2020
$000
Unaudited
6 months ended
31 March 2019
$000
Audited
12 months ended
30 September 2019
$000
Profit for the period (after tax)19,01922,86241,692
Other comprehensive income
Items that may be reclassified to the income statement:
Foreign currency translation differences(452)(213)(68)
Change in fair value of cash flow hedges recognised in other
comprehensive income(11,318)2,994(18,642)
Deferred tax on cash flow hedges3,169(838)5,220
Cost of hedging (losses) gains recognised in other
comprehensive income(880)70(752)
Deferred tax on cost of hedging246(20)210
Items that may not be reclassified to the income statement:
Amount of treasury share cost expensed in relation to share-
based payment(150)(99)(1)
Other comprehensive (loss) income for the period(9,385)1,894(14,033)
Total comprehensive income for the period9,63424,75627, 6 59
Total comprehensive income for the period is attributable to:
Equity holders of the Company 9,6 4 4 24,7562 7, 6 6 5
Non controlling interest (10)–(6)
Total comprehensive income for the period9,63424,75627, 6 59

Interim Financial Statements
12Sanford Interim Report 2020
CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2020
Note
Unaudited
6 months
ended
31 March 2020
$000
Unaudited
6 months
ended
31 March 2019
$000
Audited
12 months ended
30 September 2019
$000
Current assets
Cash on hand and at bank8,0703,6698,322
Trade receivables76,63470,93461,241
Derivative financial instruments665 3,410 265
Other receivables and prepayments13,81132,6158,047
Biological assets 46,58432,13129,452
Inventories56,44648,47348,558
Taxation receivable2,534––
Assets held for sale108,0008,5278,527
Total current assets212 ,74 4199,759164,412
Non-current assets
Property, plant and equipment150,910139,6 05141 ,7 74
Right-of-use assets243,184––
Investments1,7801,5781,831
Derivative financial instruments 468 1,524 11
Biological assets14,06112,13420,074
Intangible assets494,779491,903493,111
Total non-current assets705,1826 4 6,74 4656,801
Total assets 917,926846,503821,213
Current liabilities
Bank overdraft and borrowings (secured)456,89268,76155,000
Lease liabilities210,476––
Derivative financial instruments 26,5974,67017, 5 24
Trade and other payables62,73948,39840,779
Taxation payable– 2,313 1,077
Total current liabilities156,704124,142114,380
Non-current liabilities
Bank loans (secured) 4109,000100,00084,000
Lease liabilities228,902––
Contributions received in advance3,1393,3343,305
Employee entitlements1,3561,3481,232
Derivative financial instruments 20,5807, 1 8 014,720
Deferred taxation13,52016,90015,394
Total non-current liabilities176,497128,762118,651
Total liabilities333,201252,904233,031
Equity
Paid in capital94,69094,69094,690
Retained earnings519,059502,705513,132
Other reserves(29,689)(4,381)(20,315)
Shareholder funds584,060593,014587,507
Non controlling interest665585675
Total equity584,725593,599588,182
Total equity and liabilities917,926846,503821,213

Interim Financial Statements
13Sanford Interim Report 2020
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 MARCH 2020
Note
Unaudited
6 months ended
31 March 2020
$000
Unaudited
6 months ended
31 March 2019
$000
Audited
12 months
ended
30 September 2019
$000
Cash flows from operating activities
Receipts from customers240,814245,288555,027
Interest received186239665
Dividends received6 6 13
Payments to suppliers and employees(216,550)(220,944)(483,581)
Income tax paid( 7, 1 3 5 )(9,947)(15,026)
Interest paid(4,652)(4,251)(8,446)
Net cash flows from operating activities12,66910,39148,652
Cash flows from investing activities
Sale of property, plant and equipment3784,786
Sale of intangible assets5,501 1,329 19,175
Sale of investments – 8,958 8,958
Dividends received from associates 208 – –
Purchase of property, plant and equipment and
intangible assets(21,890)(20,261)(38,348)
Purchase of business (1,936) – –
Acquisition of other investments – (9)(9)
Net cash flows utilised in investing activities(18,080)(9,975)(5,438)
Cash flows from financing activities
Proceeds from borrowings445,00015,00048,000
Repayment of term loans4(20,000)(15,000)(64,000)
Lease payments(8,602)––
Dividends paid to Company shareholders5(13,091)(13,091)(21,507)
Net cash flows from (utilised in) financing activities3,307(13,091)(37,507)
Net (decrease) increase in cash and cash equivalents(2,104)(12,675)5,707
Effect of exchange rate fluctuations on cash held(40)(47 )(15)
Cash and cash equivalents at beginning of the period(46,678)(52,370)(52,370)
Cash and cash equivalents at end of the period (48,822)(65,092)(46,678)
Represented by:
Bank overdraft and borrowings (secured)(56,892)(68,761)(55,000)
Cash on hand and at bank8,0703,6698,322
(48,822)(65,092)(46,678)

Interim Financial Statements
14Sanford Interim Report 2020
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS (CONTINUED)
RECONCILIATION OF PROFIT FOR THE PERIOD WITH NET CASH FLOW FROM OPERATING ACTIVITIES
FOR THE SIX MONTHS ENDED 31 MARCH 2020
Note
Unaudited
6 months ended
31 March 2020
$000
Unaudited
6 months ended
31 March 2019
$000
Audited
12 months ended
30 September 2019
$000
Profit for the period (after tax)19,01922,86241,692
Adjustments for non-cash items
Depreciation13,43810,31720,884
Impairment of assets held for sale10 527 – –
Impairment of investments – 25 25
Impairment of property, plant and equipment8 – – 512
Impairment of advance – – 98
Share-based payment expense(150)(99)(1)
Change in fair value of biological assets (11,119)(794)(6,056)
Change in fair value of foreign currency options335(968)(915)
Change in fair value of forward exchange contracts1,543(828)1,713
Share of loss (profit) of equity accounted investees51(101)(562)
Increase in deferred tax1,5408705,653
Unrealised foreign exchange (gains) losses(638)342(911)
5,5278,76 420,440
Movement in working capital
Increase in trade and other receivables and prepayments(18,406)(29,058)(11,089)
Increase in inventories( 7, 8 9 3 )(2,628)(2,697)
Increase in trade and other payables and other liabilities22,24715,9798,131
Decrease in contributions received in advance(167)(135)(164)
Decrease in taxation payable(3,611)(1,813)(3,048)
( 7, 8 3 0 )( 17, 6 5 5 )(8,867)
Items classified as investing activities
Loss (gain) on sale of property, plant and equipment1,341124(910)
Gain on disposal of intangible assets(5,388)(3,911)(3,911)
Loss on disposal of investments– 207 208
(4,047)(3,580)(4,613)
Net cash flows from operating activities12,66910,39148,652

Interim Financial Statements
15Sanford Interim Report 2020
CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 MARCH 2020
Note
Share
Capital
$000
Share
Based
Payment
Reserve
$000
Translation
Reserve
$000
Cash Flow
Hedge
Reserve
$000
Cost of
Hedging
Reserve
$000
Retained
Earnings
$000
Total
$000
Non
Controlling
Interest
$000
Total
Equity
$000
Balance at 1 October 2019
(audited)94,690401410(21,122)(4)513,132587,507675588,182
Profit for the period
(after tax) – – – – – 19,018 19,018 1 19,019
Other comprehensive
income
Foreign currency
translation differences – – (441) – – – (441) (11) (452)
Hedging losses recognised
in other comprehensive
income – – – (11,318) (880) – (12,198) – (12,198)
Deferred tax on change in
reserves – – – 3,169 246 – 3,415 – 3,415
Amount of treasury share
cost expensed in relation to
share-based payment – (150) – – – – (150) – (150)
Total comprehensive income – (150) (441) (8,149) (634) 19,018 9,644 (10) 9,634
Distributions to shareholders5 – – – – – (13,091) (13,091) – (13,091)
Balance at 31 March 2020
(unaudited)94,690251(31)(29,271)(638)519,059584,060665584,725
Balance at 1 October 2018
(audited)94,690402476( 7, 70 0 ) 538 492,943581,349585581,934
Profit for the period
(after tax) – – – – – 41,69641,696(4)41,692
Other comprehensive
income
Foreign currency
translation differences – – (66) – – – (66) (2)(68)
Hedging losses recognised
in other comprehensive
income – – – (18,642)(752) – (19,394) – (19,394)
Deferred tax on change in
reserves – – – 5,220210 – 5,430 – 5,430
Amount of treasury share
cost expensed in relation to
share-based payment – (1) – – – – (1) – (1)
Total comprehensive income–(1)(66)(13,422)(542)41,69627, 6 6 5(6)27, 6 59
Shares issued to non-
controlling shareholders in
subsidiaries – – – – – – – 96 96
Distributions to shareholders5 – – – – – (21,507)(21,507) – (21,507)
Balance at 30 September
2019 (audited)94,690401410(21,122)(4)513,132587,507675588,182

Interim Financial Statements
16Sanford Interim Report 2020
CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE SIX MONTHS ENDED 31 MARCH 2020
Note
Share
Capital
$000
Share
Based
Payment
Reserve
$000
Translation
Reserve
$000
Cash Flow
Hedge
Reserve
$000
Cost of
Hedging
Reserve
$000
Retained
Earnings
$000
Total
$000
Non
Controlling
Interest
$000
Total
Equity
$000
Balance at 1 October 2018
(audited)94,690402476( 7, 70 0 ) 538 492,943581,349585581,934
Profit for the period
(after tax) – – – – – 22,85322,853922,862
Other comprehensive
income
Foreign currency
translation differences – – (204) – – – (204)(9)(213)
Hedging gains recognised
in other comprehensive
income – – – 2,99470 – 3,064 – 3,064
Deferred tax on change in
reserves – – – (838)(20) – (858) – (858)
Amount of treasury share
cost expensed in relation to
share-based payment – (99) – – – – (99) – (99)
Total comprehensive income – (99)(204)2,1565022,85324,756 – 24,756
Distributions to shareholders5– – –––(13,091)(13,091) – (13,091)
Balance at 31 March 2019
(unaudited)94,690303272(5,544)588502,705593,014585593,599

Interim Financial Statements
17Sanford Interim Report 2020
NOTE 1 - GENERAL INFORMATION
Sanford Limited (‘the parent’ or ‘the Company’) is a profit-
oriented company that is domiciled and incorporated in
New Zealand. The Company is registered under the
Companies Act 1993 and listed on the New Zealand Stock
Exchange (NZX). The Company is an FMC entity for the
purposes of Part 7 of the Financial Markets Conduct
Act 2013.
The interim financial statements presented are for Sanford
Limited (‘Sanford’ or ‘the Group’) as at and for the six months
ended 31 March 2020.
The Group comprises the Company, its subsidiaries and its
investments in joint arrangements and associates.
The interim financial statements are prepared in accordance
with NZ IAS 34: Interim Financial Reporting. The interim
financial statements and the comparative information for
the six months ended 31 March 2019, are unaudited. The
comparative information for the year ended 30 September
2019 is audited.
The Group is a large and long-established fishing and
aquaculture farming business devoted entirely to the farming,
harvesting, processing, storage and marketing of quality
seafood products and investments in related activities.
NOTE 2 - ACCOUNTING POLICIES
The Group’s accounting policies have been applied consistently
to all periods presented in these interim financial statements,
and have been applied consistently by Group entities.
There have been no changes in accounting policies or
methods of computation except as detailed below. The
interim financial statements should be read in conjunction
with the financial statements for the year ended
30 September 2019.
NZ IFRS 16 Leases
The Group adopted NZ IFRS 16: Leases, effective from
1 October 2019. The Group applied NZ IFRS 16 using the
modified retrospective transition approach. Comparative
information and opening equity are therefore not restated
and continue to be reported under NZ IAS 17: Leases.
On transition, the Group applied the following practical
expedients available under NZ IFRS 16:
• To not recognise right-of-use assets and lease liabilities for
short-term leases with lease terms ending within 12 months
from the date of transition. The costs related to these
leases are recognised in profit or loss;
• To exclude initial direct costs from the measurement of the
right-of-use asset on initial application; and
• To not reassess whether an arrangement is, or contains a
lease, at the date of transition if such arrangement was
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 MARCH 2020
previously identified as a lease applying NZ IAS 17 and
IFRIC 4: determining whether an arrangement contains a lease.
The adoption of NZ IFRS 16 results in those leases previously
classified as operating leases being recorded on the balance
sheet subject to certain exemptions for short term and low
value leases. All other arrangements will be considered under
NZ IFRS 16 when the contract is amended or renewed.
As a result of applying NZ IFRS 16, the Group recognised
$46.1m of new right-of-use lease assets upon transition,
which included $0.3m of prepayments. Right-of-use assets
are initially measured at cost, and subsequently at cost less
any accumulated depreciation and impairment losses, and
adjusted for certain remeasurements of the lease liability.
These assets are depreciated over the expected lease term.
The expected lease term may include the taking-up of lease
extension options, if the Group is reasonably certain of
exercising such options.
New liabilities of $45.8m were also recognised on transition.
These are classified as lease liabilities on the statement of
financial position and split into current and non-current
portions. Lease liabilities are recognised at the
commencement date of the lease as the present value of the
lease payments over the lease term. Expected lease payments
are discounted to present value using the Group’s incremental
borrowing rates. These rates are set on a lease-by-lease basis,
with key inputs being the expected term of the lease, the
expected security over the lease and the economic
environment of the lease. The weighted average interest
rate used on transition was 3.49%.
In the income statement, application of NZ IRFS 16 for the six
months ended 31 March 2020 decreased Group operating
expenses by $2.4m, increased finance costs by $0.7m and
increased depreciation expense by $2.0m The depreciation of
leased assets of annual catch entitlement (ACE) is recognised
as part of operating expenses, and not within the depreciation
line. These changes meant a net increase in operating profit of
$0.4m, but a net $0.3m decrease in profit before income tax.

18Sanford Interim Report 2020
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 MARCH 2020
Interim Financial Statements
NOTE 2 - ACCOUNTING POLICIES (CONTINUED)
The following table provides a reconciliation of the operating lease commitments disclosed as at 30 September 2019 to the total
lease liabilities recognised on the statement of financial position in accordance with NZ IFRS 16 as at 1 October 2019:
Note
Unaudited
As at 1 October 2019
$000
Operating lease commitments as at 30 September 201953,148
Effect of discounting(a)(8,673)
New leases identified(b)1,529
Modifications to transitional values(223)
Total lease liabilities on adoption of NZ IFRS 1645,781
(a) The amount of the lease liability recognised under NZ IFRS 16 is on a discounted basis whereas operating lease commitments
under NZ IAS 17 were on an undiscounted basis. The discount rates used on transition were appropriate for each lease.
(b) A number of leases have been identified and formalised as part of the Groups transition to NZ IFRS 16. The transitional values
of these additional leases have been included in the value recognised on transition under NZ IFRS 16.
NOTE 3 - SEGMENT REPORTING
Executive management of the Group monitors the operating results of the wildcatch and aquaculture (mussels and salmon)
divisions. Divisional performance is evaluated based on operating profit or loss. Capital expenditure consists of additions of
property, plant and equipment and intangible assets.
The Group’s key operating divisions are:
• wildcatch - responsible for catching and processing inshore and deepwater fish species; and
• aquaculture - responsible for farming, harvesting and processing mussels and salmon.
The Group has determined that the divisions above should be aggregated to form one reportable segment to reflect the farming,
harvesting, processing and selling of seafood products, due to the aggregated manner in which performance is monitored.
Further information on segment reporting is included in the financial statements for the year ended 30 September 2019.
Revenue by geographical location of customers
Unaudited
6 months ended
31 March 2020
$000
Unaudited
6 months ended
31 March 2019
$000
Audited
12 months ended
30 September 2019
$000
New Zealand106,739106,029239,073
Europe43,05134,76967, 0 4 5
Australia25,68926,71248,624
China24,27626,05456,813
North America23,33035,00673,002
Other Asia8,46010,61018,590
South Korea5,2793,7097, 0 41
Japan4,6399,42715,158
Middle East1,9062,9173,910
Hong Kong1,0613,2605,518
Pacific6328621,859
Africa433,2093,802
Other4072,4824,686
Revenue245,512265,046545,121
The revenue information above is based on the delivery destination of sales.
The Group has no customers accounting for more than 10% of total sales for the current period, prior period and September
2019 year.

Interim Financial Statements
19Sanford Interim Report 2020
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 MARCH 2020
NOTE 4 - BANK LOANS, OVERDRAFT AND BORROWINGS (SECURED)
Carrying and face value
Unaudited
31 March 2020
$000
Unaudited
31 March 2019
$000
Audited
30 September 2019
$000
Balance at beginning of period139,000155,000155,000
Bank loans
Proceeds45,00015,00048,000
Repaid(20,000)(15,000)(64,000)
Bank overdraft and short term borrowings
Movement1,89213,761–
Balance at end of period165,892168,761139,000
Interest rates applicable1.38% - 2.32%2.65% - 3.53%1.73% - 2.25%
Bank loans are secured by a general security interest over property and a mortgage over quota shares.
All borrowings are subject to covenant arrangements. The Group has complied with all covenants during the period (March and
September 2019: all covenants were complied with).
The repayment dates of secured term loans outstanding at 31 March 2020 are - 30 April 2020: $55m, 30 April 2022: $15m,
31 October 2022: $39m, 30 April 2023: $25m and 1 October 2024: $30m. On 23 April 2020, the secured term loans expiring
on 30 April 2020 were extended to 30 April 2021.
On 27 May 2020, additional facilities of $40m have been agreed between the Group and its existing banking partners. These
facilities expire as follows – 15 April 2021: $20m, 15 April 2022: $20m. The Group’s total banking facilities are now $270m.
Interest rates for all loans are floating based on the bank bill rate plus a margin. The Group’s policy for term loans is to hedge
between 25% and 75% of floating rate debt by using interest rate swaps.

Interim Financial Statements
20Sanford Interim Report 2020
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 MARCH 2020
NOTE 5 - DIVIDENDS
The following dividends were declared and paid by the Company:
Unaudited
6 months ended
31 March 2020
$000
Unaudited
6 months ended
31 March 2019
$000
Audited
12 months ended
30 September 2019
$000
Ordinary dividend ($0.14 per share) December 2019
($0.14 per share December 2018, $0.09 per share June 2019)13,09113,09121,507
On 27 May 2020 the Directors approved an interim dividend of 5 cents per share (fully imputed) to be paid on 19 June 2020.
This dividend has not been provided for in the accounts at 31 March 2020.
NOTE 6 - CONTINGENT LIABILITIES AND COMMITMENTS
(a) Contingent liabilities
Unaudited
31 March 2020
$000
Unaudited
31 March 2019
$000
Audited
30 September 2019
$000
Guarantees1,029 642 970
The Group has guarantees with its commercial banking partners. In this respect the Group treats the guarantee contracts
as contingent liabilities until such times as it becomes probable that the Group will be required to make payments under
the guarantees.
(b) Commitments
The estimated capital expenditure for property, plant and equipment contracted for at reporting date but not provided is
$17.7m (31 March 2019: $8.1m, 30 September 2019: $6.9m).
NOTE 7 - OTHER INCOME
31 March 2020 -
Sale of Australian fishing quota
On 20 March 2020, the Group disposed of certain of its statutory fishing rights granted under the Australian Fisheries
Management Act 1991 for a total consideration of $5.5m. This included rights to fish blue grenadier and orange roughy.
The gain of $5.4m on this disposal has been recognised within other income at 31 March 2020.
Relocation compensation
In November 2019, the Group received compensation of $2.0m from the Victorian Major Transport Infrastructure Authority
(“the Authority”) for interruption to its business in Melbourne, Australia as a result of the acquisition of its leased premises at
1/29 Youell Street by the Authority. This compensation is recognised within other income at 31 March 2020. The Group’s
Australian operations have been relocated to new premises during December 2019.
30 September 2019 and 31 March 2019 - Sale of Tauranga based pelagic business assets
On 19 November 2018, the Company agreed to sell its Tauranga based pelagic business to Pelco NZ Limited for $24.3m. The
sale included quota of various pelagic species, three fishing vessels and associated processing equipment. The quota sale was
completed on 29 March 2019, with a gain of $4.1m being recognised within other income for the six month period ended
31 March 2019. The remainder of the assets were transferred on 23 April 2019 and a gain on the total transaction of $5.1m was
recognised within other income for the year ended 30 September 2019.
NOTE 8 - IMPAIRMENT OF NON-CURRENT ASSETS
There have been no indicators of impairment identified during the reporting period and no material impairment losses have
been recognised during the period or the periods ending 31 March 2019 and 30 September 2019.

Interim Financial Statements
21Sanford Interim Report 2020
NOTE 9 - FINANCIAL INSTRUMENTS
Carrying amounts and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities at reporting date.
Unaudited
6 months ended
31 March 2020
$000
Unaudited
6 months ended
31 March 2019
$000
Audited
12 months ended
30 September 2019
$000
Non-derivative financial assets not measured at fair value
(i)
Trade receivables 76,634 70,93461,241
Other receivables - sale of pelagic fishing quota– 17, 8 0 0 –
Cash and cash equivalents 8,070 3,6698,322
Other receivables - advances to associates 291 381231
Non-derivative financial assets measured at fair value
(ii)
Shares in other companies (Level 3) 97 9897
Non-derivative financial liabilities not measured at fair value
(i)
Bank overdraft and short term borrowings (secured) (56,892)(68,761)(55,000)
Trade and other payables (54,328)(40,263)(31,940)
Bank loans (secured) (109,000)(100,000)(84,000)
Total non-derivative financial assets (liabilities)(135,128)(116,142)(101,049)
Derivative financial assets (liabilities) measured at fair value
(ii)
Forward exchange contracts (Level 2) (25,191)348( 17, 8 7 5 )
Foreign currency options (Level 2) (5,271)1,290(1,590)
Interest rate swaps (Level 2) (11,800)(9,030)(11,926)
Fuel swaps (Level 2) (3,782)476(577)
Total derivative financial (liabilities) assets(46,044)(6,916)(31,968)
(i) Presented at carrying value which is equivalent to fair value.
(ii) Presented at fair value.
Other payables that are not financial liabilities are excluded above (provisions and employee entitlements: March 2020 $8.4m,
March 2019 $8.1m, September 2019 $8.8m)
NOTE 10 – ASSETS CLASSIFIED AS HELD FOR SALE
Property, plant and equipment classified as held for sale reflects the Christchurch mussel processing facility, which was closed
during the 2015 financial year and continues to be marketed for sale. The property is measured at its fair value less cost to sell,
per level 3 of the fair value hierarchy. An impairment of $0.5m was recognised in the six months to 31 March 2020.

Interim Financial Statements
22Sanford Interim Report 2020
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 MARCH 2020
NOTE 11 - COVID-19
COVID-19 struck the majority of markets served by the Group during the second half of March 2020, and as such has impacted
the results reported for the six months to 31 March 2020.
As an essential business, the Group was able to continue operating during the lockdown restrictions imposed as a result of
COVID-19. Our plants were temporarily shut for a few days to prepare for the requirements to operate as an essential business,
adjusting for the new requirements for safety and social distancing imposed on New Zealand business as the country moved to
Alert Level 4.
Sanford’s value add strategy is to get closer to our customers, which has led to a focus on foodservice, particularly our high-end
Big Glory Bay salmon. Unfortunately this channel has been severely impacted by COVID-19, however changing consumer
behaviours has led to retail trending upwards both locally and abroad and the Group has experienced good growth in salmon
sales in this area. The Group continued fishing, harvesting and processing with our supply returning to relatively satisfactory
levels within two weeks, but demand remains uncertain and volatile.
NOTE 12 - SUBSEQUENT EVENTS
Other than the matters discussed in note 4, no events have been identified between the end of the reporting period and date
of issue of the interim financial statements that require disclosure.

23Sanford Interim Report 2020
Board of Directors
Sir Robert McLeod, Chairman
Peter Cullinane
Abigail (Abby) Foote
Peter Goodfellow
Peter Kean
Fiona Mackenzie
Executive Management
Volker Kuntzsch, Chief Executive Officer
Clement Chia, Chief Operating Officer
Karen Duffy, Chief People Officer
Andre Gargiulo, Chief Customer Officer
Katherine Turner, Chief Financial Officer
Registered Office
22 Jellicoe Street
Freemans Bay
Auckland 1010
New Zealand
PO Box 443
Shortland Street
Auckland 1140
New Zealand
Telephone +64 9 379 4720
Email info@sanford.co.nz
Website www.sanford.co.nz
Principal Bankers
ANZ Bank New Zealand Limited
Bank of New Zealand
Rabobank New Zealand Limited
Solicitors
Chapman Tripp
Russell McVeagh
Group Auditors
KPMG, Auckland
Stock Exchange
The Company’s shares trade on the
New Zealand Stock Exchange (NZX).
NZX Trading Code: SAN.
The minimum marketable parcel on the Exchange
is 100 shares (price $2 to $5 per share) or 50 shares
(price $5 to $10 per share).
Share Registrar
Computershare Investor Services Limited
Private Bag 92 119
Auckland 1142
New Zealand
159 Hurstmere Road
Takapuna
Auckland 0622
New Zealand
Managing your Shareholding Online
To change your address, update your payment
instructions and to view your investment portfolio
including transactions please visit:
www.investorcentre.com/nz
General Enquiries
General enquiries can be directed to:
enquiry@computershare.co.nz
Private Bag 92 119
Auckland 1142
New Zealand
Telephone +64 9 488 8777
Please assist our registrar by quoting your
CSN or shareholder number.
Other queries should be directed to the
General Manager Risk and Corporate Affairs
at the Registered Office.
insight
creative.co.nz
SAN106
Directory

TERIYAKI SALMON,
ASIAN GREENS
AND SOBA NOODLES
PAULIE HOOTON, HEAD CHEF
AUCKLAND SEAFOOD SCHOOL
(SERV E S 4)
R
INGREDIENTS
600g salmon, skin on, bone out
¼ cup soy sauce
2 cloves garlic, minced
10g ginger, minced
2 tbsp vinegar
(e.g. rice, white wine, malt)
2 tbsp brown sugar
150g soba noodles
2 cloves garlic, minced
3 mushrooms, cut into quarters
½ courgette, sliced
1 head bok choy, cut into quarters
100g beans
½ broccoli, trimmed
and cut into florets
1 spring onion,
white part cut into inch pieces,
green part used for garnish
2 tbsp sesame seeds
1 lemon, for garnish
METHOD
1.
Preheat oven to fan grill. Line an oven tray with baking paper.
2.
Place salmon pieces, side by side, on prepared oven tray.
3.
In a bowl combine soy sauce, garlic, ginger, vinegar and brown
sugar. Spoon half of this mixture over salmon. Place salmon in the
middle of the oven and fan grill until just cooked, 6-8 minutes.
4.
Place soba noodles in a pot of salted water,
cook for 3 minutes and then drain and refresh in cold water.
5.
Heat a drizzle of oil in a fry-pan on high heat.
Fry garlic, mushroom, courgette, bok choy, beans, broccoli and
spring onion until just wilted and broccoli is tender, around 2-3
minutes (you can add a splash of water to help cooking).
6.
Add noodles and cook for a further 1-2 minutes,
mix through 1 tablespoon of the sesame seeds
and mix all ingredients gently together.
7.
Add remaining sauce to the vegetables and toss to combine well,
cooking for a further 1-2 minutes.
8.
Place noodles and vegetables onto a large plate.
Flake salmon over the top and spoon over any sauce from the tray.
Garnish with spring onions, lemon and sesame seeds.
Auckland Seafood School
Level 1, Auckland Fish Markets
22-32 Jellicoe Street
Freemans Bay
Auckland 1010
aucklandseafoodschool.co.nz

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This presentation contains not only a review of operations, but also some forward looking statements about Sanford
Limited and the environment in which the company operates. Because these statements are forward looking, Sanford
Limited’s actual results could differ materially. Media releases, management commentary and analysts presentations,
including those relating to the previous results announcement, are all available on the company’s website and contain
additional information about matters which could cause Sanford Limited’s performance to differ from any forward
looking statements in this presentation. Please read this presentation in the wider context of material previously
published by Sanford Limited.
DISCLAIMER

COVID-19: Impacts
•Asian trade impacted in January
•More widespread impacts from
end of March
Operational Impact
•Nervous staff
•Travel restrictions
•Supply chain interruption (borders, freight)
•Some closures (Enzaq, our retail stores)
Demand Impact
•Food service ceased (home and abroad)
•Fresh fish sales restricted (less air freight)
•Domestic retail and online grew

•Sanford responded rapidly to
changing operational requirements
and market conditions
COVID-19: Mitigation
Operational Mitigation
•Distancing measures
•Enhanced hygiene and PPE
•Innovative thinking
•Successful working from home
Demand Mitigation
•New retail product mix and packaging
options
•New retail and online market opportunities

H1 FY20: Antarctic toothfishand impacts of Covid-19 pandemic drove a
result short on expectations, not without positives
-7 %
EBIT GW kg
46c
-11c /kg
CATCH/HARVEST VOLUME
52kGWT
REVENUE
$246M
-13 %
ADJUSTED EBIT
$23.2M
-7%
Down from 20.4%
GROSS PROFIT
19.4%
NPAT
$19.0M
-17 %
INTERIM DIVIDEND
5 CPS
Down 4c
SALES VOLUME
51kGWT
-29 %
Excluding
FY19 pelagic
+ 10 %
Excluding
FY19 pelagic
-3 %
Excluding
FY19 pelagic
-4 %
Excluding
FY19 pelagic
-16 %

Key drivers of H1 Adjusted EBIT change
Mixed performance across the business with aquaculture doing very well
NZD m
Strategy in Action
+9m
Timing
Covid-19Operational
-1m
Divested

Wild Catch
Positives
•San Granit in full operation. Deepwater fleet catch up 18% vs H1 LY
•Vessel optimization program progressing well with increased
uptime
•Crew retention significantly improved
•Strong demand in USA for orange roughyalong with improving
pricing
•Extra Patagonian Toothfish quota in H2
•Acquisition of Australian business and new site in Melbourne
impacted positively at the end of H1
Headwinds
•High value Antarctic toothfishcatch 240 GWT less than prior year
(-39%), plus softening prices due to Covid-19
•Smaller squid suppressed average margins
•Lower hokidemand and smaller squid led to an inventory build
(availability for sale in H2 is potential upside)
0
20
40
H1 18H1 19H1 20
GWT (000’s)
Wild catch GWT sales volume
excl. Pelagics -8%
DeepwaterInshore
Fishing partnersPelagics
Catch Volume Excl Pelagics
H1 profit contribution (excl. Pelagics) vs H1 LY 48% down
FRESHFROZEN
0
1
2
3
4
5
0
50
100
150
200
H1 18H1 19H1 20
Rev $/
GWkg
$ millions
Wild catch sales revenue
excl. Pelagics -9%
DeepwaterInshore
Fishing partnersPelagics
Rev $/GWkgRev $/GWkg Excl Pelagics

Positives
•Excellent growth of the fish over the half-year has added to an
increased biomass of stock in water aligning with increased
consent limits. Oxygenation of water has proven successful
•Low mortalities due to the lack of algal blooms this year.
Aeration equipment installed to mitigate future risk
•With the introduction of out-of-season smolt, more consistent
sizing of fish has been appreciated by our customers, particularly
BGB branded salmon in the US
•Execution of stage 1 farm growth programmeis ahead of
schedule and open ocean waterspaceapplication lodged
Headwinds
•The impact of Covid19 in Q2, particularly on Chinese demand
•Big Glory Bay branded product sales largely stopped towards the
end of March (foodservice channel effectively closed)
-
500
1,000
1,500
2,000
2,500
H1 18H1 19H1 20
GWT
Salmon GWT sales volume +2%
10
11
12
13
14
15
16
0
5
10
15
20
25
30
35
H1 18H1 19H1 20
Rev $/
GWkg
$ millions
Salmon sales revenue +6%
H1 profit contribution vs H1 LY up +86%
SALMON
King Salmon

GreenshellMussels
Positives
•Diversifying market mix strategy continuing to drive strong
pricing for half shell product supporting improved EBIT per kg
•FavourableSouth Island growing conditions with no toxic algal
blooms and higher proportion of SPATNZ mussels led to a strong
harvest season (+8%) and excellent yields and production
efficiencies in both plants which enabled sales volume growth
•Covid-19 environment enabling product diversification with
MAP mussels into NZ retail
•Further Spat NZ development
•Marine extracts and mussel powder growth
Headwinds
•Mussel growth in the Coromandel was slow, impacting on the
recoveries at our Tauranga production facility
•Mussel meat market has seen falling demand and softening
prices
•Throughput impacted at end of March by shutdown of Sanford
production facilities to ready the factories for Covid19
distancing standards
10
12
14
16
18
20
H1 18H1 19H1 20
GWT (000’s)
Greenshell mussel GWT sales volume
+5%
-
1
2
3
4
0
10
20
30
40
50
60
70
H1 18H1 19H1 20
Rev $/ GWkg
$ millions
Greenshell mussel sales revenue
+13%
H1 profit contribution vs H1 LY up +16%
MUSSELS

Geographical spread a benefit against Covid-19 implications
40%
13%
10%
10%
13%
10%
2%
1%
48%
12%
8%
11%
14%
7%
1%
1%
43%
18%
10%
10%
10%
8%
1%
0%
New Zealand
Europe
Australia
China
North America
Asia
Middle East &
Africa
Pacifc & Other
H1 2019
H2 2019
H1 2020
% Total Revenue
•Increase in sales to Europedriven by
diversification of mussels away from North
America and higher white fish sales
•North America also impacted by lower
toothfish, squid and Covid-19 but higher
orange roughy

Sanford Strategy
Business Excellence Framework
Sustainability as theFoundation
AMBITION
$1 EBIT GW kg by
2023
VISION
To be the Best Seafood
Company in the World
PURPOSE
We share the natural
goodness of our oceans with
uncompromising care
ORGANISATIONAL
CAPABIILTY
OPERATIONAL
EXCELLENCE
INNOVATION
CUSTOMER AND
CONSUMER
INVESTMENT PLAN
SOCIAL LICENCE
‘Looking Forward’ Team Cross Functional Business Management Teams
(BMTs)
SALMONMUSSELS
FROZEN
FRESH
INNOVATION
Integrated thinking and delivery across our businesses

Key projects for H2
•New Marine Extracts Centre construction has commenced –enables nutraceutical NPD pipeline
using a variety of marine based sources
•Growing online sales, new packaging formats
•Big Glory Bay brand expansion in domestic market with export expansion focus post-Covid
•Salmon farming infrastructure investment to increase volume, mitigate risk and improve
consistency, sizing and quality of fish
•Scampi vessel replacement and toothfish longline vessel improvements
•Development of mussel farms in order to meet strategic growth goals
•Optimisingland-based processing automation, climate control
•San Core (systems replacement) project remains a critical area of development necessary to drive
data and system led shifts in business performance
•Working with government, councils and communities to provide agreed and cost-effective
outcomes for marine farm renewals
CUSTOMER AND
CONSUMER
INNOVATION
SOCIAL LICENSE
Strategic priorities unchanged –Rejuvenation, Innovation, Channel Focus

Diversity across fishing and aquaculture, in volume and value
Fishing -
deepwater
53%
Fishing -
inshore
10%
Greenshell
mussels
33%
King salmon
4%
HARVEST VOLUME
Fishing -
deepwater
48%
Fishing -
inshore
12%
Greenshell
mussels
27%
King salmon
13%
SALES REVENUE
H1 FY20
H1 FY20
(excludes Other Revenue)

Diversity across fishing, in volume and value
Fishing -
deepwater
53%
HARVEST VOLUME
Factory
vessels
95%
Toothfish
3%
Scampi
2%
DEEPWATER VOLUME
Factory
vessels
77%
Toothfish
8%
Scampi
15%
DEEPWATER REVENUE
Fishing -
deepwater
48%
REVENUE
H1 FY20
H1 FY20

•Sanford culture experiencing new pride and
purpose
•The image of seafood as a healthy and
sustainable protein
•Momentum encouraging agility and speed in
innovation
•Channel and market diversification
•Market resilience in Australia, NZ and many
parts of Asia
•Potential acquisition opportunities in support
of strategy
•Increased community appreciation and
stakeholder engagement
•Potential Government support driving faster
implementation of opportunities
Opportunities in the Face of Covid-19

Market Outlook in the Face of Covid-19
•Mixed but with green shootsas some
European markets and US states begin to
open up
•Online a clear area of growth
•‘Looking Forward Team’ formed in April,
highlightedpossible new 'norm’ and how
best to serve our customers
•Freight costs likely to be ongoing issue,
particularly airfreight availability at
sensible commercial price
•Buy local sentiments go both ways for
Sanford
•Risk of downward price pressure in some
markets
•Volatile demand and the uncertain future
across our export markets makes it
unlikely that the first half earnings
shortfall will be made up in the second
half of the year

THANK YOU
QUESTIONS?

APPENDICES

Flat
-2%
DEBT
$165.9M
TOTAL EQUITY
$585M
Net DEBT / EBITDA*
1.93x
GEARING
28.4%
Solid gearing and falling debt vs H1 FY19
-1%
FY19 1.91x
* Rolling basis and adjusted for IFRS16
in comparatives
OPERATINGCASHFLOW
$12.7m
+22%
Largely driven by less
income tax paid
0
5
10
15
20
25
H1 18H1 19H1 20
$m
Liquidity Ratio**
139%
* * Available bank facilities vs used facilities
FY19 136%
ROCE^
^Rolling 12 mthaverage
6.4%
Flat

YTD Capital Investments
•Capital expenditure of $23.8m in H1up 18% on last year’s interim period spend
•Focus has been on:
•‘Beyond food’ strategy –Commenced groundwork for new marine extract plant in Blenheim
•Vessel optimisation improvements such as the half-life rebuild of the San Ikawai, an inshore
fresh fish catching vessel with PSH
•Value add initiatives -New Orange Roughy processing line in Timaru and packaging line in
Tauranga
•Salmon farm optimisation -new feed barge near completion, additional cages
•Channel diversity growth -acquisition of Saltwater business in Melbourne along with
development and move to new trading site.

HY20 Financial Results -GAAP to Non GAAP reconciliation
Financial half year20202019
$m$m
Revenue245.5 265.0
Gross Profit47.6 54.2
%19.4%20.4%
Net Expenses & Other Income(28.6) (31.3)
Reported net profit (GAAP)19.0 22.9
Add back:
Net interest and tax expense9.5 13.2
Net (gain) on sale of investments, property, plant
and equipment and intangibles
(4.0) (3.6)
Reported EBIT24.4 32.5
Adjustments:
Impairment of assets0.5 0.1
Other one-off items(1.7) -
Total one off items(1.2) 0.1
Adjusted EBIT23.2 32.6
Depreciation and amortisation13.4 10.3
Adjusted EBITDA36.7 42.9
Unaudited

GAAP To Non-GAAP Reconciliation
Non-GAAP Profit Measures
Definitions
Sanford's standard profit measure prepared under New Zealand GAAP is net profit. Sanford have used non-GAAP measures when
discussing financial performance in this document. The Directors and management believe that these measures provide useful information
as they are used internally to evaluate divisional and total Group performance and to establish operating and capital budgets. Non-GAAP
profit measures are not prepared in accordance with NZ IFRS (New Zealand Equivalents to International Reporting Standards) and are not
uniformly defined, therefore the non-GAAP profit measures included in this report are not comparable with those used by other companies.
They should not be viewed in isolation or as a substitute for GAAP profit measures as reported by Sanford in accordance with NZ IFRS.
EBITDA:Earnings before interest, taxation, non-trading currency exchange losses, depreciation, amortisation, restructuring, adjusting
items, impairment and gain (loss) on sale of investments, intangible and long term assets.
Adjusted EBIT: Reported EBIT adjusted for impairment, restructuring and other one off items.
Reported EBIT: Earnings before interest, taxation, non-trading currency exchange losses and gain (loss) on sale of investments, intangible
and long term assets.