Seeka provides Analyst Briefing Pack

Analyst Briefing Pack
Interim results presentation
Six months to 30 June 2020 -Unaudited

Agenda
2
3
Operating segments performance
2
Capital management
1
H1 FY20 highlights

Please note: These slides are section dividers only. Please use the blue graphic slides for the first and last slides of the presentation
H1 FY20 Highlights

Comparisons are to the previous corresponding period to 30 June 2019 (pcp)
FY20 Six Month Highlights
Successfully completed 2020 kiwifruit harvest in Level 4 lockdown
−33.4m trays from our New Zealand growers
−600k trays from Seeka’s Australian orchards
$18.4m NPAT, up 54.9%
−Reflecting the effect of tax deductibility on buildings on deferred tax
$30.4m EBITDA, up 9.1%
−After incurring an estimated $5.3m impact from Covid-19
−Includes a $2.5m gain on sale of orchard assets
$129.3m closing net debt, down $18.8m
−$15.3m received from orchard sales
AU$26.5m conditional sale and lease back of Australian kiwifruit orchards
−Debt to be further reduced, lease secures supply to Seeka, additional water also leased
Revitalised performance from Seeka Australia and NZ retail service
4
Focus on achieving excellence
1
2
3
4
5
6

Covid-19 update –Seeka completes successful harvests
Seeka was an essential business in NZ and Australia
−Safety paramount
−Fruit harvested under level 4 lockdown
−Successfully picked and packed NZ and Australia crops
Proactive safety steps
−Rehoused RSE workers
−Screens, temporary cafeterias, packhouse bubbles, cleaning
−Remote work
Severe labour shortage
−More than 800 people short
−Collaborated with other industries to source people
−Access to labourremains a significant challenge
5
Early planning and action delivered timely harvests
Estimated $5.3m impact on the business
−Direct cost of Covid-19 measures, lost volumes and margins
−No wage subsidy received, displaced and vulnerable
workers supported by $27,800
−Seeka paid $12.2m in direct salary and wages, and $3.0m to
picking contractors during the lockdown period

NZ IFRS 16 Leases applies to this report, apart from the 2016 and 2017 EBITDA comparatives on this page.
Group financial performance
$178.7m revenue
Up 5% on H1 FY19
$30.4m EBITDA
Up 9% on H1 FY19 (pcp: $27.9m)
−Includes $5.3m impact of Covid-19
−Includes $2.5m gain on orchard sales
$18.4m Net profit after tax
Up 55% on H1 FY19 (pcp: $11.9m)
−Includes $5.6m one-off deferred tax gain
Seeka operates a seasonal business
−H1 is the main operating period for our core
kiwifruit business
6
H1 FY20H1FY19FY19
$ Millions
UnauditedUnauditedGrowthAudited
Revenue178.7 169.9 5% 236.9
Cost of sales124.5 118.9 5% 190.1
Change fair value biological assets16.5 16.5 -( 0.7)
Gross profit37.7 34.5 9% 47.5
EBITDA30.4 27.9 9% 34.5
EBIT21.4 20.3 5% 17.6
Net profit after tax18.4 11.9 55% 6.9
$134.2m
$134.0m
$145.4m
$169.9m
$178.7m
20162017201820192020
Revenue
To 30 June
$15.8m
$21.9m
$25.7m
$27.9m
$30.4m
20162017201820192020
EBITDA
To 30 June

Balance sheet
$129.4m net debt at H1 FY20, down $18.8m on pcp
−Cash flow from operations and orchard sales
−Limited capital expenditure Northland packhouse
−$22.14m of advances to Seeka Growers
−Largely repaid in July 2020
−Debt programmed to reduce in 2020 with the conditional
Australian sale
7
Net debt at June 30 2020
H1 FY20H1 FY19FY19
$ Millions
UnauditedUnauditedGrowthAudited
Cash and tax receivable3.6 4.0
( 9%)
2.8
Trade, other receivables & inventory101.5 89.2
14%
33.7
Biological assets -crop2.3 1.6
45%
19.5
Assets classified as held for sale19.5 37.5
( 48%)
27.1
Total current assets126.9 132.3
( 4%)
83.1
Property, plant and equipment226.1 220.0
3%
220.4
Intangibles18.6 23.0
( 19%)
18.7
Right-of-use lease43.2 27.4
57%
44.7
Other1.6 3.2
( 51%)
1.3
Total non-current assets289.4 273.6
6%
285.1
Total assets416.3 405.9
3%
368.2
Current tax liability--1.7
Trade and other payables43.3 42.0
3%
22.9
Current lease liabilities5.6 4.0
42%
5.2
Interest bearing liabilities34.8 65.4
( 47%)
21.9
Total current liabilities83.7 111.4
( 25%)
51.7
Interest bearing liabilities96.4 85.0
13%
97.8
Right-of-use lease liabilities43.7 27.8
57%
45.3
Derivative financial instruments1.1 1.0
13%
0.8
Deferred tax liabilities17.8 21.7
( 18%)
17.8
Total non current liabilities159.0 135.6
17%
161.6
Total liabilities242.7 246.9
( 2%)
213.3
Net assets173.6 158.9
9%
154.9

Conditional sale of Australian kiwifruit orchards
Three Australian kiwifruit orchards conditionally sold
−AU$26.5m sale price
−Realise gain on sale
−Repay debt and fund new kiwifruit orchard developments
Long term leaseback to Seeka
−Initial term of 10 years, plus a 10 year renewal and two
further terms of 5 years
−Secured supply for Seeka
Secured additional water rights
−Part of the agreement
Awaiting approval of the Australian Foreign Investment
Review Board
−Expected by 29 August 2020
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With long-term leaseback to Seeka

Improved financial performances
Australian turnaround
$1.89m EBITDA Seeka Australia
−Turnaround from pcploss of $151k
Profitable kiwifruit business
−Despite hot dry summer impacting volumes
Green nashi sales return to profitability
−Seeka balanced supply to demand
Developments to add new revenue streams
−70 hectares of new kiwifruit orchards
in development
−17 hectares of Ricóclub pears ready
for harvest 2021
9
Delivering performance from Seeka’s orchard-to-market services
Retail services turnaround
$1.31m EBITDA New Zealand retail services
−Significant lift from pcpof $760k
−Achieved in spite of lockdown
New customers driving demand
−Attracting more quality supply from grower community

Seeka’s sustainability culture delivers first win
Board Sustainability Committee created
−To work with management as it gains momentum in its
“Growing Futures” initiative
Sustainability action points
−Calculating Seeka’s carbon footprint
−Waste audits and packaging review
−Coolstore power consumption and load shedding
−Advancing paperless systems
−Biodegradable options, plastic recycling
−Hybrid vehicles
Worm farm recycling waste an early win
−Input waste fruit, leaves and dust from post harvest
−Recovering vermicompostorganic fertiliser
−Circular regenerative horticulture
−Catalytic bioreactor to be installed
10
Seeka worm farm delivers commercial-sized waste-recovery

1. Net tangible assets is the Group’s net assets less goodwill, divided by the total shares on issue at the end of the period.
Earnings per share and dividends
57 cents earnings per share
−Earnings impacted by lower Hayward yields
−$5.3m cost of Covid-19
−16.5 cents per share
Board cancelled April dividend due to Covid-19
Dividend reinstated for September 2020
−10 cents per share fully imputed
−Record date 4 September, payment 30 September
−DRP applies with 2% discount
$5.13 net tangible assets per share
−Up 14% on H1 FY19
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H1 FY20H1FY19FY19
$ Millions
UnauditedUnauditedGrowthAudited
Net profit ($m)
18.4 11.9 55% 6.9
Shares on issue (m)
32.1 32.1 32.1
Earnings per share
$ 0.57$ 0.3946% $ 0.22
Net tangible assets
1
($m)
164.7 144.5 14% 146.0
Net tangible assets per share
$ 5.13$ 4.5014% $ 4.55

FY20 full year guidance
Forecasting full-year net profit before tax between
$9m and $12m
Guidance updated despite
−$5.3m impact of Covid-19 from higher costs and lost sales
−Lower Hayward kiwifruit volumes in NZ and Australia from
dry summer
−Includes expected and realised gain on sales
12
Seeka updates May 2020 guidance
FY20FY20FY19
GuidanceGuidanceFull year
$ Millions
Lower rangeUpper rangeActuals
Net profit before tax
9.0 12.0 9.9
Change on FY19
( 9%)+ 22%

Please note: These slides are section dividers only. Please use the blue graphic slides for the first and last slides of the presentation
Operating segment performance

Orchard operations
$47.4m revenue –in line with H1 FY19
−Second year of low Hayward yields from dry summer
−SunGold volumes and yields up as orchards enter full
production, with growth set to continue
$78.9m of assets
Investing in new orchards on long term leased land
−44 hectares of kiwifruit
−20 hectares of Hass and Gem avocados
−Long-term partnerships with land owners
−Generate new income streams from 2021
Growing kiwifruit, avocado and kiwiberry for New Zealand orchard owners
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H1 FY20H1FY19FY19
$ Millions
UnauditedUnauditedAudited
Revenue47.4 48.3 72.4
EBITDA4.2 4.2 5.0
EBIT3.3 3.6 3.7
Segment assets78.9 61.5 54.2
Crop grown -class 1 traysH1 FY20H1FY19Growth
Total kiwifruit -all varieties (m)13.011.413%
Hayward (m)7.67.16%
Trays per hectare10,2009,800
SunGold (m)5.13.926%
Trays per hectare14,00013,390
Other trays (m)0.30.4

Post harvest operations
$108.1m revenue –in line with H1 FY19
−Rise in SunGold volumes
−Offset by dry summer’s impact on Hayward yields and
volumes experienced across the industry
$5.3m EBITDA impact of Covid-19
−Direct costs and productivity constraints
Assets developed to handle 2021 volumes
−Capacity to handle SunGold volume growth from new
plantings, and normalisation of Hayward yields
Packing, coolstoring and shipping kiwifruit, avocado and kiwiberry for New Zealand orchard owners
15
H1 FY20H1FY19FY19
$ Millions
UnauditedUnauditedAudited
Revenue108.1 105.3 140.1
EBITDA30.3 29.8 41.0
EBIT24.2 24.9 29.4
Segment assets244.7 228.9 222.9
Kiwifruit packed -trays (m)H1 FY20H1FY19Growth
Total kiwifruit -all varieties33.433.5
Hayward -class 115.717.4( 10%)
SunGold -class 116.114.511%
Other varieties and class 21.61.5

Retail services operations
$9.7m revenue –up 100% on H1 FY19
−High volumes of NZ avocado direct to Australian retail
−Improved kiwiberry volumes and returns
−Wholesale markets in NZ and Australia impacted by
Covid-19 lockdowns
$1.3m EBITDA –up 73% on H1 FY19
Business revitalised
−Significant trading turnaround
−Improved service delivery from Christchurch site
Marketing fruit from post harvest operations, retail and ripening imported fruit, and Kiwi Crush production
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H1 FY20H1FY19FY19
$ Millions
UnauditedUnauditedAudited
Revenue9.7 4.8 8.6
EBITDA1.3 0.8 1.7
EBIT0.9 0.4 1.1
Segment assets18.2 15.8 11.2

Australian operations
$13.3m revenue –up 17% on H1 FY20
−Business reset returns Australian operations to profit
−Hot, dry growing conditions impact kiwifruit yields
Planted pear areas balanced to market opportunities
−Investing in new Club pear varieties –Ricóand Lanya
−Establishing other new categories
Kiwifruit orchards conditionally sold
−Subject to approval of Australian Foreign Investment
Review Board
−199 hectares total land area
−Includes term supply commitment
−Access to additional water
Growing, packing and retailing kiwifruit, nashi pears, and European pears on owned orchards
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H1 FY20H1FY19FY19
$ Millions
UnauditedUnauditedAudited
Revenue13.3 11.4 11.6
EBITDA1.9 ( 0.2)( 0.6)
EBIT1.4 ( 0.7)( 2.1)
Segment assets55.5 48.8 52.2
Crop packed -tonnesH1 FY20H1FY19Growth
Total fruit -all produce4,3804,1905%
Kiwifruit2,1531,80619%
Nashi791988( 20%)
Corella165284( 42%)
Packham878984( 11%)
Other pears and fruit393128207%

Contact
Michael Franks
Chief executive
+64 21 356 516
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For more information see www.seeka.co.nzor please call
Stuart McKinstry
Chief financial officer
+64 21 221 5583

seeka.co.nz