Seeka Provides Stakeholder Update

Stakeholder Update
October 2020

Agenda
Chair’s introduction
−Six month financial summary
−Dividend and earnings per share
−Australian kiwifruit orchard sales update
−Bank debt
−2020 full year guidance
Chief Executive’s report
−Safety
−Operating segment overview
Questions
2

NZ IFRS 16 Leases applies to this report, apart from the 2016 and 2017 EBITDA comparatives on this page.
Seeka’s financial performance
$178.7m revenue from January to June
−Up 5% on June 2019
$30.4m EBITDA
Up 9% on June 2019 ( $27.9m )
−Includes $5.3m impact of Covid-19
$17.4m net profit before tax
−Up 5% on June 2019 ( $16.5m )
$18.4m Net profit after tax
Up 55% on June 2019 ( $11.9m )
−Includes $5.6m one-off deferred tax gain
3
For the first six months of 2020
$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

Dividend and earnings per share
Board cancelled April dividend due to Covid-19
Dividend reinstated September 2020
−10 cents per share fully imputed
−Record date 4 September, paid 30 September
−Dividend reinvestment shares issued at $4.02
Dividend policy is up to 75% of net profit after tax
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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
57 cents earnings per share
−Earnings impacted by lower Hayward yields
−$5.3m cost of Covid-19
−$5.6m tax credit
$5.13 net tangible assets per share
−Up 14% on H1 FY19
DividendEarnings per share

Australian kiwifruit orchard sales update
Sale conditional on Australian Foreign Investment
Review Board
−Expected 4 November 2020
AUD $26.5m sale with leaseback
−10 years with rights of renewal to 30 years
−Secures supply for Seeka’s orchard-to-market service
Proceeds to repay debt and complete Australian
developments
1000 mega litres of additional water rights secured
−Part of the sale agreement
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Sale and leaseback of Australian kiwifruit orchard portfolio

Bank debt
$129.3m net debt at June 2020
−Down $18.8m on June 2019
Debt reducing from cash flow and orchard asset sales
Bank debt now under $100m
−$92.7m at 30 September 2020, prior to dividend payment
−Focus on reducing debt continues
−Will further reduce on Australian kiwifruit orchard sales
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Seeka is reducing debt after large investments to grow our business
$148.1m
$116.8m
$129.3m
$92.7m
$0m
$50m
$100m
$150m
Jun-19Dec-19Jun-20Sep-20
Net bank debt

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
Forward focus
−Management focussed on optimal profitability
7
Updated our 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
Chief Executive’s report
Michael Franks

To end June 2020
20192020YTD
Annual
threshold
Total recordable injury
frequency
4.93.9< 4.5
Notifiable injuries13-
Notifiable incident131
Severity rate5.97.2< 4.5
Health and safety
9
Working to keep everyone safe, on the orchard and in the packhouse
Focus areas
−Traffic management
−Machine guarding
−Fatigue
−Forklifts

Comparisons are to the previous corresponding period to 30 June 2019 (pcp)
Six month highlights to June 2020
Successfully completed 2020 kiwifruit harvest in Level 4 lockdown
−33.4m trays from our New Zealand growers
−600k trays from Seeka’s Australian orchards
$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
$18.4m NPAT, up 54.9%
−Reflecting the effect of tax deductibility on buildings on deferred tax
$129.3m closing net debt, down $18.8m
−Now under $100m
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
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Focus on achieving excellence
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3
4
5
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Orchard operations
$47.4m revenue –in line with H1 FY19
−Second year of low Hayward yields from drought
−SunGold volumes and yields up
$79m of assets
Investing in new orchards on long term leased land
−51 hectares fully funded by Seeka
−5 hectares in iwi joint ventures
−47 hectares in long-term management for iwi
−Generating new income streams from 2021
Operationally challenging with availability of skilled labour
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
$244.7m of assets
$5.3m direct impact on EBITDA from Covid-19
−Direct costs and productivity constraints
Assets developed to handle 2021 and 2022 volumes
Capacity options for 2023 under investigation
−Will rely on offshore coolstorage
Packing, coolstoring and shipping kiwifruit, avocado and kiwiberry for New Zealand orchard owners
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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
−Significant trading turnaround
Business rebound
−Revitalised with new varieties
−Specialist wholesale programmes increase grower returns
−Improved service delivery from Christchurch site
$1.3m EBITDA –up 73% on H1 FY19
Marketing fruit from post harvest operations, retail and ripening imported fruit, and Kiwi Crush selling
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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 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%

Covid-19 update –Seeka completed 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
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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

16
Seeka KKP
Seeka Transpack
Seeka 360
Pukenga

Please note: These slides are section dividers only. Please use the blue graphic slides for the first and last slides of the presentation
Fred Hutchings
Questions
17

Thank you
To all our stakeholders, our shareholders, growers, staff, contractors and suppliers
for combining to deliver exceptional performance through 2020

seeka.co.nz