Annual Results Announcement

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019


Results for announcement to the market
Name of issuer Sanford Limited
Reporting Period 12 months to 30 September 2021
Previous Reporting Period 12 months to 30 September 2020
Currency NZD

Amount (000s) Percentage change
Revenue from continuing
operations
$489,625 4.43%
Total Revenue $489,625 4.43%
Net profit/(loss) from
continuing operations
$16,235 (16.40%)
Total net profit/(loss) $16,235 (16.40%)
Interim/Final Dividend
Amount per Quoted Equity
Security
It is not proposed to pay a final dividend.
Imputed amount per Quoted
Equity Security
n/a
Record Date n/a
Dividend Payment Date n/a
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.45723056 $1.19760054
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
Annual Report for the year ended 30 September 2021.
The Previous Reporting Period figures have been restated as
detailed in Note 14 of the Annual Report.
Authority for this announcement
Name of person

authorised
to make this announcement
Dean McIntosh
Contact person for this
announcement
Paul Alston
Contact phone number 021 918 033
Contact email address palston@sanford.co.nz
Date of release through MAP

18/11/2021

Audited financial statements accompany this announcement.

---

18 November 2021


Name of Listed Issuer: SANFORD LIMITED (SAN)
FINANCIAL RESULTS for the year ended 30 September 2021


Sanford 2021 Full Year Results:
Covid Impacts Continue but Signs of Recovery in Key Markets

Financial results summary:

 Sanford’s profitability significantly hit by Covid-19 impacts
 NPAT of $16.2m, down 16% on restated FY20
1

 Revenue of $489.6m in FY21, up 4% from $468.8m in FY20
 Adjusted EBIT of $23.3m in FY21, down 39% from $38.3m in FY20
2

 Challenges remain but in late 2021, wildcatch and salmon profitability have started
to improve and mussels inventory has normalised
 Clear strategic priorities for 2022, and a new CEO and CFO in place
 Timeline to complete a strategic plan refresh by first half of calendar year 2022
 Dividends remain suspended

New Zealand’s largest seafood company Sanford Limited (NZX: SAN) says it has faced a
second year of Covid-19 related impacts on profitability, although its full year results to
September 30, 2021 show signs of improvement in key markets.

Sanford is reporting 2021 sales revenue of $489.6 million, up 4% from revenue of $468.8
million in the 2020 financial year. Net Profit After Tax (NPAT) was $16.2 million, down 16%
on the previous 12 months. Adjusted EBIT for 2021 was $23.3 million, down 39% from the
previous year’s $38.3 million.

Board Chair Sir Robert McLeod says the key cause of the reduced profitability is the impact
of Covid-19 lockdowns around the world.

“This has hit the foodservice sector where the majority of the world’s seafood is consumed.
The most significant impact this year has been to our mussels division, which depends on
the half-shell format for its volume-based sales.”

CEO Peter Reidie says the impact of Covid-19 has been uneven across our three divisions
and the recovery is too.

“While we have seen a lag in the recovery of our mussels division, we have also seen our
wildcatch and salmon divisions beginning to improve and mussels inventory finally
normalising in the latter part of 2021, as the pandemic response has evolved globally.”

Mr Reidie says supply chain reliability and costs remain challenging and the costs to supply
have eroded margins.

“But we have been actively working to minimise supply chain risks and have recently agreed
a two year arrangement with supply chain collaboration group Kotahi, which will take
responsibility for all our frozen export capacity. This makes us much more confident about
access to shipping.”

“We have managed what we could control in 2021. The overall result is disappointing
however we feel positive about some aspects of the past year. We continued to deliver
operationally through the pandemic, we managed net debt ($178.6 million in 2021 versus
$184.3 million in 2020) and we reduced inventory levels.

Sanford welcomed an increase in the shareholding by Ngāi Tahu in September, taking its
holding to 19.9%, which Sir Robert says is a very positive development for Sanford.

“Ngāi Tahu one of New Zealand’s largest and most successful iwi investors, with a
substantial stake in and knowledge of the seafood sector. We share important common
values and a long-term view which recognises the importance of a sustainable approach.”

Strategic transition

Peter Reidie says “looking forward, we see continuing recovery in all divisions as the world
reopens and demand returns, but we do not discount ongoing Covid-19 related risks such as
further supply chain disruption. We have clear strategic priorities for 2022, which will
rebuild profitability and prepare us for future growth.”

These priorities in the months ahead are to: rebuild mussel profitability; grow developing
opportunities in wildcatch; retain salmon profitability and prepare for future growth and
establish cross-business fundamentals such as performance culture, risk management,
executional excellence and more.

Sanford’s management is developing its strategy through till 2026 and will present this to
the market in the first half of the calendar year 2022. This process will be assisted by the
appointment of a new CFO, Paul Alston, who joined the Executive Leadership Team in
October.

CEO Peter Reidie says there are many positives on the longer-term horizon.

“We provide healthy, sustainable seafood to a world which needs more of it. We have an
outstanding product. We have incredible experience, knowledge and 150 years of history.
We are committed to sustainability. This is a great platform we can use to move past the
effects of Covid and produce better results in future for our investors and stakeholders.”

Sanford’s board has decided it is prudent not to pay a dividend for the 2021 financial year,
although it intends to return to doing so as soon as is feasible.

Divisional Summary

Wildcatch
 Largest segment of Sanford’s business, providing around 58% of full year revenue, up
2% year-on-year.
 Sales volumes in wildcatch at 71.0k GWT (including deepwater and inshore species)
was up 7% on 2020.
 Stronger sales volume was partially negated by lower pricing.

Mussels
 This division provided around 20% of full year revenue in 2021
 Weakest performing division as the timing of contracts and deliveries mean it was
the last to be hit by Covid impacts and is also the last to recover
 Sales volumes up by 4% on 2020 but revenue was down 16% as we sought to clear
inventory
Salmon
 Recorded a strong fourth quarter driving revenue for this division up 32% on 2020
 Sales volumes up 41% on 2020 as we sought to clear frozen inventory, a lower
margin product
 As foodservice opens again in the US, Australia and Asia, we are seeing good growth
in demand
 The proportion of our salmon sold as our super-premium Big Glory Bay brand
increased to 21% of total salmon greenweight sales volume in 2021

1
FY20 financial results have been restated in accordance with the accounting policy change relating
to expenditure on implementation costs associated with software as a service IT projects. For further
detail refer to note 14 of the financial statements in the Integrated Annual Report published today.

2
Reconciliation of Reported Net Profit (GAAP) to Adjusted EBIT can be found in the appendix to
Sanford’s investor presentation, also published today.



For further information, please contact:
Fiona MacMillan
GM Corporate Communications
+64 (0)21 513 522
fmacmillan@sanford.co.nz

---

INTEGRATED REPORT 2021

CARE
At Sanford, we value caring for
the wellbeing of ourselves, the team
around us, our customers and
consumers, key stakeholders and the
communities we work in. Crucially,
we care for the environment
we are privileged to work in.
PASSION
We are passionate about our
relationships with our people,
customers, consumers, resources,
country and future. Our passion
extends to protecting our oceans,
caring for the environment
and having successful partnerships.
INTEGRITY
We strive to live our values every day
in everything we do. This means having
straight-up conversations, delivering on
the expectations of our key
stakeholders and being respectful,
honest, open and transparent, as we
work to always do the right thing.
ACHIEVING TOGETHER
Guided by the underlying principle of achieving together, we encourage, respect and value the
contributions of all team members and utilise the talents of everyone to deliver the best outcomes across
our business excellence framework. We actively build partnerships across the business
and wider stakeholder community.

WELCOME to Sanford’s 2021 Integrated Report, entitled HORIZONS.
The title is a reminder that we are not there yet. There are calmer waters ahead,
we can see them. We can also see that between us and the brighter horizon remains the wake
of the turbulence caused by the global Covid-19 pandemic. This report lays out the progress
we have made in the last 12 months, as we continued to navigate towards those horizons.

02
SANFORD INTEGRATED REPORT 2021
SANFORD AND OUR OPERATIONS
—
ABOUT
THIS REPORT
AN INTRODUCTION
—
Last year our integrated report was themed NAVIGATE as we began
our journey through pandemic-stirred waters. This year, we applied what
we learned in 2020 to stay on course and to counter obstacles, through
a second year of pandemic disruption as we move toward brighter
HORIZONS. We have faced into the ongoing impacts on food service
worldwide, which hit our mussel division hard. We have faced the impact
of changing migration settings, as New Zealand’s borders remain closed.
In the latter part of 2021, we managed through more days of lockdowns
and the challenges of continuing to operate as an essential service and
keep our people safe while doing so.
Working with and on the ocean breeds a certain type of resilience.
The ability to keep your head up in rough seas so you can see beyond
the next wave and keep the horizon in focus. This report explains
our determination to make the absolute most of the year and the
passage ahead.
Achieving together is a Sanford value. It is the fourth cumulative of our
values of care, passion and integrity.
HORIZONS, our 2021 integrated
report shows where and how we have achieved together. It also tells
some of our stories through our own people in their own words.
These stories detail our ability to create new channels to market,
despite our distance from them, and our ability to deliver millions of
dollars of fleet surveys and refurbishments on time and within budget.
They record our progress in growing our salmon farms and the
intellectual property and potential within our mussels operations.
They acknowledge that in a very tough year, our people have shown
their focus remains on our values and that care, passion, integrity and
achieving together really matter to them.
HORIZONS do more than mark the division between sea and sky.
They give us a sense of direction, of hope and of potential. They hint
at what is possible and they encourage us forward, through the rough
water and closer to our goals.
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

03
SANFORD INTEGRATED REPORT 2021
SANFORD AND OUR OPERATIONS
1. SANFORD AND OUR OPERATIONS
Chairman review05
CEO review08
Report structure12
How we create value16
Highs and lows18
Global sales footprint20
2. REPORTING WHAT MATTERS
Our approach and
stakeholder engagement24
Material issues for Sanford25
4. GOVERNANCE AND FINANCIALS
Corporate governance88
Financial statements105
Notes to the financial statements113
Combined independent auditor’s
and limited assurance report166
5. APPENDICES
Appendices173
Accreditations and awards194
Corporate directory195
2021 Annual meeting196
CONTENTS
PLEASE NOTE that photos in this report
were taken both before and after the arrival
of the Covid-19 pandemic and at different
Alert Levels, so facemasks are not always
worn in these images.
Enabling Healthy Oceans
and Environments
Supporting Strong Communities
and Partnerships
Creating a Safe and
High Performing Workplace
Building a Sustainable
Seafood Business
Delivering and Innovating for
Customers and Consumers
3068
4577
57
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QR codes appear throughout this Report.
Use these to access relevant video and
other content by opening the camera
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3. CHAPTERS: OUR FIVE PERFORMANCE OUTCOMES
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD AND OUR OPERATIONS
04
—
SANFORD
IN NUMBERS
—
421
INDEPENDENT SHAREFISHERS
2020: 444
1,409
TOTAL WORKFORCE
2020: 1,387
1. Quota ownership based on New Zealand Annual Catch Entitlement.
2. See Note 3, Appendix A.
111,844
TONNES OF SEAFOOD HARVESTED
2020: 122,582
2
SALES REVENUE
YEAR ENDING SEPTEMBER 30, 2021
$489.6m
(4% HIGHER THAN FY20)
ADJUSTED EBIT
$23.3m
(39% LOWER THAN FY20)
REPORTED NPAT
$16.2m
(16% LOWER THAN ADJUSTED
REPORTED FY20)
NET DEBT
$178.6m
2020: $184.3M
SANFORD IS NEW ZEALAND’S
LARGEST QUOTA HOLDER
19.8%
1
2020: 19.7%
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

05
SANFORD INTEGRATED REPORT 2021
SANFORD AND OUR OPERATIONS
This is Sanford’s second year of weak
financial performance due to
Covid-19. The major cause has been
the reduction in worldwide demand
for seafood due to Covid restrictions
on the food service sector, where
people consume seafood. The most
significant impact this year has been
to our mussels division, which
depends on the half-shell format,
often served in restaurant settings,
for its volume-based sales.
Sanford relies on a substantial commodity
market in which the company is a price
taker. When prices fall, it makes no sense
to delay sales and build inventory in the
hope of a return to higher price points.
We were compelled to sell into a falling
market in which today’s price was higher
than tomorrow’s. While sales volume
increased, aggregate revenue and gross
profit declined, along with inventory levels.
In addition to Covid’s major impact on
revenue and gross margin, it also increased
costs. The closure of New Zealand borders
tightened labour markets, reducing
unemployment and employable staff,
while inflating wage pressure. It disrupted
supply chains in the cross-border
transport modes of air and sea, increasing
waiting times for both imports and
exports and narrowing capacity along
with substantial cost inflation.
In times like this, it is informative to
benchmark Sanford’s performance
against our broader global sector and the
foodservice sector, which is the outlet
for the majority of our products. From
the onset of the pandemic to June 2021,
globally, the foodservice industry
experienced a drop of 52% in seated diners.
Post-June 2021 globally, there has been
a recovery toward pre-pandemic levels
(-3.8% over the period June 2021 – end
Sept. 2021 relative to pre-pandemic levels)
1
.
Sanford’s share price has reflected our
profit performance. The market cap of
the company at the end of the financial
year, September 30th was $477m, which
compares with a book value of equity
of $634m, both of which are well below
the market value of the company’s quota
of approximately $1b. Sanford is made up
of diverse assets and segments as a
resource owner, operator and producer
and its share price is a blunt assessment
of that diversity.
The multiple that the share market applies
to Sanford’s earnings is significantly below
the valuation multiple that the industry
would apply to the expected income
from its quota. This has been a persistent
feature of the company across many
years, but it is particularly acute in present
conditions. We are the largest seafood
company in New Zealand with a substantial
and valuable quota resource.
Ngāi Tahu increased its shareholding to
19.9% in September. We welcome this
development, with Ngāi Tahu one of
New Zealand’s largest and most successful
iwi investors, with a substantial stake in
and knowledge of the seafood sector.
Ngāi Tahu and Sanford share important
common values and aspirations including
a long-term view and a recognition of the
importance of a sustainable approach.
As a result of discussions with Ngāi Tahu,
the Board is recommending the
appointment of Craig Ellison, (Ngāi Tahu
CEO elect) to the Board at this year’s
Annual Shareholder Meeting.
The Board and management believe that
the adverse impact of Covid is temporary
and not permanent. We believe that
demand conditions will return to pre-Covid
levels in the classical U or V formation.
We do not predict the future format as a W.
—
CHAIRMAN
REVIEW
—
Sir Robert McLeod
CHAIRMAN
1. OpenTable network, State of the Restaurant Industry,
data sourced from 20,000 restaurants globally who
share their reservation data on the OpenTable network
https://www.opentable.com/state-of-industry
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

06
SANFORD INTEGRATED REPORT 2021
SANFORD AND OUR OPERATIONS
Our experience with revenue implies a V is
more likely than a U because we are seeing
revenue continuing to lift from prior levels.
We have good reason to predict that
market demand will return to its pre-Covid
level at a faster rate than new revenue has
grown in the past, although not as fast as it
declined. Not only is this reflected by the
steep northern slopes of the standard U
and V -recoveries, but that is also the
nature of market demand which has been
suppressed by the pandemic and is latent.
Our divisional breakdowns at (pages 8
and 9), are consistent with our wildcatch
and salmon divisions entering recovery
mode. As indicated earlier, our mussel
division, which is reliant on the
foodservice sector, was the last hit by the
impacts of Covid-19 and the last to
emerge from the downturn. You will find
more detail in the divisional breakdown
included in the CEO Review (pages 8 to
11). The Board is positive about the signs
we see in the short and medium term,
although the Covid risk is still at large.
PLOTTING A COURSE FOR RECOVERY
The immediate focus for Board and
management is to stabilise our
performance. Peter Reidie will address
his short-term strategic approach in his
CEO Review.
The US market is improving and has
become Sanford’s largest export market,
going from a 10.8% share of our sales
volume in 2020 to 17.4% in 2021. This
improvement has been partly driven by
circumstances, as the US emerges from
lockdowns, but also by Sanford growing
its in-market presence.
In China, we are broadening our
customer base which has been beneficial
in terms of margin for high value species
such as scampi.
Europe remains slow and has dropped from
being our number one export destination in
2020 to being ranked fourth. We are
heavily reliant on foodservice in this region,
hence the slower recovery.
In Australia, despite the domestic market
being disrupted by Covid-19, the in-
market team has achieved a very good
result, taking Australia to our second
largest export market, and growing its
share of our sales from 10.4% (including
Sanford’s Pacific sales) in 2020 to 12.4%
in the 2021 year.
SANFORD REMAINS STRONG
Sanford remains the owner of very good
assets and excellent long-term prospects.
We have invested $23.7 million in
necessary vessel upgrades and
refurbishments in our wild catch fleet.
These improvements allow us to extract
the most value from our catches while
making the vessels safer.
SanCore, our business systems
transformation programme is progressively
delivering wide-ranging improvements.
New incident reporting software is now
functioning, with far better reporting and
mitigation of risks, particularly in health,
safety and environment.
We are well advanced with our seismic
strengthening programme, with most of
our critical processing assets now at the
required 67% New Building Standard
(NBS) rating.
It is pleasing to report that we now have
resource consent for our Marine Extract
Centre in Blenheim. These investments
mean Sanford can deliver excellent
products, whether that be collagen from
frozen at sea wild caught species or
specialty marine ingredients, such as
mussel oil and powder, or collagen.
We have access to an abundant supply of
a natural, healthy protein that will
continue to be demanded domestically
and globally within which we can diversify
our revenue over time.
LEADERSHIP DEVELOPMENTS
It has been an eventful year for our
people. Our new CEO, Peter Reidie joined
us in April following a thorough executive
search process. For the first six months of
our 2021 year, Andre Gargiulo ably
stepped up as interim CEO and I thank
him for his commitment and effectiveness
ABOVE Te Hamana Maxwell, San Granit crew.
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

07
SANFORD INTEGRATED REPORT 2021
SANFORD AND OUR OPERATIONS
in the role. I thank the other members of
the senior executive team for their
commitment and contribution though
these very challenging times.
Peter has immersed himself in the
business and is leading our recovery and
growth strategy across a three-to-five-
year timeframe. We farewelled Katherine
Turner at the end of the fiscal year. I would
like to thank Katherine for her hard work
and commitment to Sanford and wish her
all the best. We have a new and highly
experienced Chief Financial Officer,
Paul Alston, who was appointed at the
beginning of the 2022 financial year.
In January 2022, we will be saying farewell
to our Chief Operating Officer Clement
Chia, whom we thank for his contribution
to Sanford, initially as CFO and more
recently as COO, during which he has
developed a strong and capable
Operations team.
FORECASTS FOR REGULATORY CHANGE
This year it is increasingly clear that the
Government, while acknowledging the
value of the marine economy, considers
reforms are needed to achieve its vision of
ensuring the long-term health and
resilience of our oceans. We support many
of its signalled objectives and the focus on
sustainable management of the oceans
based on science and a collaborative
approach to fisheries management.
While the populist view is that fishing is
“out of sight and out of mind”, we are
the only primary industry whose
environmental performance and
operational procedures are independently
audited by government observers during
harvesting and processing. Environmental
performance is audited against these
agreed measures by Fisheries New Zealand
and the results are publicly reported.
2
OUTLOOK
Covid-19 made its unwelcome arrival early
in 2020 and still seriously affects our
business today. Vaccinations and a
reduction in lockdowns in key markets is
however resulting in a resurgence of
consumer demand. We are looking to
improve profitability in our 2022 financial
year and return to pre-covid levels in 2023.
The Board is positive about our future,
despite the near-term remaining
challenging. Our new CEO and his team
have the necessary commitment and
capacity to deliver on that expectation.
ACKNOWLEDGEMENTS
We gladly welcomed Mark Cairns to
our Board as an independent director.
Sanford is benefitting from Mark’s
considerable experience and skills,
especially in the important areas of
shipping logistics and supply chains.
I also acknowledge Peter Goodfellow’s
significant and long service to the Board
since 2006. Peter indicated at last year's
annual meeting he intended to retire from
this year’s annual meeting. Peter has served
on our audit finance and risk committee and
he is a past Chair of our People committee.
He has given unfailing commitment to
Sanford as a director and an investor.
We wish him and his family all the best
following his retirement from Sanford.
I wish to also thank my fellow directors for
their support during a year of considerable
challenge and change for Sanford. Good
governance is always crucial but doubly
so in these challenging times. I appreciate
the efforts of the Board and CEO for
developing and implementing our
recovery and resurgence strategy.
2. Source: Deepwater consortium report 2021
ABOVE Mussel barge, Lady Marie in the Marlborough Sounds.
Last but not least, I thank our shareholders.
We are disappointed not to be paying a
dividend in the 2021 financial year and we
intend doing so in future as soon as is
feasible. Thank you for your ongoing
support during these challenging times and
the Board is committed to meeting your
expectation of better financial returns.
Sir Robert McLeod
CHAIRMAN
17 November 2021
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

08
SANFORD INTEGRATED REPORT 2021
SANFORD AND OUR OPERATIONS
—
C E O
REVIEW
—
Peter Reidie
CHIEF EXECUTIVE OFFICER
This CEO review follows my being
in the role since April 2021.
Seven months is short, but it is
long enough to form a wide and deep
first impression of our company,
our people, our strengths and
our opportunities. I’ve carried these
impressions with me as I have worked
with the Board on the road back
to improved profitability and
investor returns.
My lasting first impression is that we have
an amazing array of products that are
incredibly good and desired by the world.
We sell amazing New Zealand seafood
caught or harvested in precious abundant
waters with a quality level that is second
to none. Our seafood is world-class.
Covid-19 has been tough. It shut down
demand, closed markets and channels and
required us to make operational changes
to minimise risk. Foodservice, the most
significant outlet for our high-value
products, has been severely impacted.
With curtailed demand, we had inventory
build to be cleared at a lower price.
Supply lines have remained erratic and
while demand has been slowly rebuilding,
the costs to supply have eroded margins.
It is not a good story. But we cannot lose
sight of the fact that profits have been
made, despite the demand slump. We
have seen the bottom of the trough, and
the test now is how quickly we can move
out of it.
IMMEDIATE PRIORITIES
My focus on joining Sanford was on
strengthening the Covid recovery
response and getting us to the other side
of its impacts. The team under Andre
Gargiulo as interim-CEO had successfully
begun that work. We wanted to make sure
we saw the wider horizon and kept our
focus on moving forward. I will speak later
in this review about how that shaped our
medium-term strategy, but first I want to
detail our Covid-impacted results from
2021 because they give us good insight
into how the recovery will play out.
OUR RESULTS
Sanford’s Adjusted EBIT for 2021 was
$23.3 million, 39% lower than in 2020.
Our full year sales volumes were 113.5k
greenweight tonne (GWT) which was a 7%
increase on 2020 (105.6k GWT). The
volume increase was driven by two things.
Firstly, we have taken the approach that
cash is king and we focused on getting
product out the door. Naturally that
impacted price, but it helped us manage
inventory levels and ensured we kept sales
channels flowing. Pleasingly, it also
ensured we kept control of our debt
levels with our year end position of
$178.6m Net Debt being slightly better
than last year’s $184.3m. Secondly, in the
latter part of 2021, we have seen demand
return. We saw weaker revenue year-on-
year in the first two quarters of 2021 and
a reversal of that for the second half of
the year.
Our results show signs of improvement,
although the speed and pattern of
recovery is different across our different
divisions.
WILDCATCH FINANCIAL OVERVIEW
% Versus
Last Year
FY
2021
H1
2021
H2
2021
H2
2021
vs H1
2021
Sales volumes
7.4%20.1%-3.5%-6.6%
Revenue
1.6%-5.6%9.2%10.0%
Profit
contribution
11.0%3.8%15.4%81.4%
Our sales volumes in wildcatch at
71.0k GWT (including deepwater and
inshore species) was up 7% on 2020.
However, that stronger sales volume has
been partially negated by lower pricing.
Our revenue from this division, by far
Sanford’s largest, was up 2% year-on-year.
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

09
SANFORD INTEGRATED REPORT 2021
SANFORD AND OUR OPERATIONS
GREENSHELL™ MUSSELS FINANCIAL
OVERVIEW
%Versus
Last Year
FY
2021
H1
2021
H2
2021
H2
2021
vs H1
2021
Sales volumes
4.1%-17.6%28.7%37.0%
Revenue
-16.4%-38.1%9.7%47.7%
Profit
contribution
-94.7%-95.2%-93.9%-31.7%
Mussels was our weakest performing
division. Our mussels are mostly sold
frozen as a half shell product and the vast
majority of our sales volumes go into food
service in the US, Asia and Europe. The
timing of our contracts and deliveries in
mussels mean it was the last to be hit by
Covid impacts and its recovery is also
lagging. Sales volumes at 37.4k
greenweight tonnes were up 4% on last
year. Overall revenue from this division
was down 16% and its profit contribution
was significantly down 95% on prior year.
SALMON FINANCIAL OVERVIEW
%Versus
Last Year
FY
2021
H1
2021
H2
2021
H2
2021
vs H1
2021
Sales volumes
40.6%25.4%58.9%4.8%
Revenue
32.0%11.8%57.2%12.6%
Profit
contribution
8.5%-22.3%226.8%-40.8%
Salmon is showing the way out of
Covid-impacts with strong fourth quarter
revenue driving overall revenue for this
division up 32% on last year. Sales
volumes for salmon were 5.1k GWT, up
41% on 2020, as we dealt with frozen
inventory in this division. Its overall profit
contribution was up 9% relative to 2020.
Our salmon division was quicker to feel
the effects of Covid as it is usually sold
fresh. The strong fourth quarter for this
beautiful seafood is leading a recovery,
as food service opens up again in markets
such as Asia and the US. This was one of
our product areas where we could
diversify to high end retail, thanks to
having our people on the ground in
America. Sales of our premium branded
Big Glory Bay salmon have grown to
20.8% of our salmon greenweight sales
volume up from 3.2% last year. This has
been a driver of improved profitability.
SUPPORTING FUTURE PERFORMANCE
The improvements we have seen in the
latter part of 2021 in wildcatch and
salmon have come despite ongoing
Covid-related challenges. These include
limited freight capacity and higher supply
chain costs with global shipping schedule
reliability this year hovering below 40%,
after falling to 44% last year from 68%.
However, we are confident that our
new arrangement with supply chain
collaboration group Kotahi to take
responsibility for all our frozen export
capacity, will be very helpful in this area.
Our confidence is increasing in our
prospects for a return to higher
profitability. Our leadership team and the
Board are working closely together to
build on our long-term strategy, which has
a 2026 horizon. We will deliver the details
of that strategy to stakeholders in the first
half of the calendar year 2022.
My immediate focus has been the
development and delivery of the FY22
business plan which guides the actions we
need to take to continue to manage and
emerge from Covid-19 impacts.
The priorities in this strategy are:
(i) Rebuild mussel profitability
(ii) Grow developing opportunities in
wildcatch
(iii) Retain salmon profitability and
prepare for future growth
(iv) Establish cross-business fundamentals
such as performance culture, risk
management, executional excellence
and more
On the medium-term horizon, the vital
signs are improving. We are in good shape
operationally and one reason for that is
because we did not defer necessary capital
projects. Instead, we have pushed ahead,
taking advantage of our strong balance
sheet, and prioritised programmes which
were necessary to protect our core
operational ability and set us up for future
performance, including extensive vessel
upgrades and maintenance.
On land, our seismic strengthening
programme has brought all our key
operational sites up to code. Our SanCore
digital transformation project continued
with a further investment of $9.1 million.
We are very pleased to have secured the
resource consent for our Marine Extracts
Centre which will markedly increase our
production capabilities for high value
specialty marine ingredients such as
mussel powder and mussel oil. The Centre
will also support continued research into
the benefits and efficacy of various
marine extracts.
Two key projects relating to our salmon
hatchery have also been approved. These
are brood stock tanks and a Recirculating
Aquaculture System (RAS) both of which
will enable us to grow production of our
Big Glory Bay salmon and mitigate
environmental risks to our breeding fish
and our maturing smolt. Both are
important investments for future growth
of our premium product and will be made
over 2022 and 2023. You will find more
detail on page 37.
SPEED OF RECOVERY
We have been to the bottom of the
trough this year. We are now coming out
the other side. How quickly? The honest
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

10
SANFORD INTEGRATED REPORT 2021
SANFORD AND OUR OPERATIONS
answer is we do not know for certain,
but as our Chair, Sir Rob McLeod has
noted in his review, different divisions
are moving at different speeds. Our
wildcatch stock levels are good relative to
last year when we had excess inventory.
Markets are opening and prices are
improving. Salmon has enjoyed a very
strong year, thanks to our work to open
the new premium retail channel in the
US. It is too soon to say mussels have
recovered, but we are focused on getting
the right products to the right markets
at the right price.
We are getting better at risk
management and executional excellence
and we are investing in developing our
science and research work. This work will
support our future growth, and this will
enable us to provide better returns to
our shareholders.
THE ROUTE TO RECOVERY
When I first joined, I spent three days
onboard our deepwater vessel San Granit.
I saw every part of the vessel, from the
bridge to the bilge, being amongst the
skipper and crew as they worked their
shifts and socialised over meals.
It struck me that so much of our ability to
catch and to preserve the perfection of
the fish comes down to them making the
right choices. Where we fish, for how long,
when we raise the nets, how fast we move
the catch into processing, how efficiently
that processing occurs to minimise waste
– these are all crucial decisions. They rely
on experience, teamwork, attention to
detail and especially to safety. Our catches
were out of the water into processing
almost within minutes, with care and
attention on the way, to keep the product
as pristine as possible.
We need to bring the same decision-
making deftness to sharpening our
performance more broadly. We have a lot
to think about – the species we catch and
where they should go, our markets and
which should take priority, the channels in
those markets, the value customers
generate for us and the value we can
generate for them.
Historically in Sanford it appears that we
have made these choices as if they have
been roughly equal. The reality is
different. We must prioritise the choices
which are worth more and be more
selective on what takes priority.
Here's an example. Prior to Covid-19
our premium fresh salmon had been
consumed in high end restaurants –
and we were doing well in building that
foodservice channel. When that was hit
hard by Covid-19, we had a choice to wait
out the slump or to find an answer. We
worked to create a new channel in
high-end retail. The customer base there
suits our premium product offer. By
investing in the Big Glory Bay brand with
its quality and provenance message, we
encouraged consumers to eat salmon at
home and created a winning opportunity
for our retail customers.
By prioritising our choices, we have found
new outlets and opportunities to grow
the range of products we sell into them.
Foodservice will recover over time and
then, because we made good choices, we
will have two channels for our high-end
products, not one.
What does that mean in our commodity
core that represents more than half of our
earnings? First, commodities must be done
efficiently and effectively, with underlying
costs well managed. Consistency, quality,
reliability and value all give customers the
reason to buy our products over a
competitor’s. Sanford does that very well.
Just as laptop manufacturers command
higher prices using Intel processors inside,
we could argue a customers’ fish fingers
should sell for more if they have
outstanding Sanford hoki inside. There are
opportunities to ensure the better quality
we have is reflected in the value of what
you would call a commodity.
Our sustainability, our quota, where we fish
and how, the way our people deliver quality
– all these are our “Intel inside”. Increasing
the value of our quota catch is critical.
When I went to sea with our deepwater
team, I watched them use one hundred
percent of the fish they processed –
perfect fillets are hand packed into shatter
pack by graders and the balance goes into
fish meal – not a waste product. We are
taking the quality and value of that meal
up, through new plant on vessels like San
Granit. We have opportunity to do even
more as we discover what value can be
generated through greater utilisation
of what we bring out of the water.
THE WIDER HORIZON
With our strategy in place to emerge
from Covid’s impacts in good shape, we
are very fixed on the post-Covid point on
the horizon. We cannot guarantee the
passage will be smooth, but we are
confident in our course and capabilities.
We provide healthy, sustainable seafood
to a world which needs more of it. We
are serious about protecting the marine
environment; we do not survive if we have
no fish to catch or waters we can no longer
ABOVE Mike Jones, Tengawai crew.
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

11
SANFORD INTEGRATED REPORT 2021
SANFORD AND OUR OPERATIONS
farm. We do not trade our long-term
sustainability for short-term gains.
That’s why we support the goals of what
the Government wants to achieve in
sustainable ocean management. We have
embraced such things as putting cameras
on fishing vessels and developing new
technology that will help us fish and farm
in ways that leave the environment in
which we operate in sustainable condition.
Our track record is good, and we are
viewed positively. I believe we can show
leadership and find areas where we have
advice and help to offer and where we can
work together for the good of New
Zealand’s environment, science, jobs and
wellbeing. In return, we ask that fisheries
management decisions are made based on
management of the change and we have a
role to play in that.
Often when you come new into a business,
the priority is to fix the offer. We do not
have to do that. We have an outstanding
product. We have incredible experience,
knowledge and 150 years of history. There
is a lot to like in that history. What is not
acceptable is history being a reason to
avoid change. That is the challenge of this
role; embracing all that is good in our
legacy and ensuring we adopt changes that
enrich Sanford’s name and performance by
harnessing the opportunities in front of us.
SAFETY IN 2021
A word or two on safety. It is pleasing to
see the reporting of near misses up 49%,
which certainly contributed to a drop in
the Total Recordable Injury Frequency
Rate by 8% in 2021. Growth in near miss
reporting is an indicator of a more vigilant
approach to safety risk across the
company. But any harm to our people’s
health and safety is cause for concern and
we must never stop striving for a safer
workplace. The Board and Management
teams remain focused on health and
safety as a top priority.
THANKS
I want to thank our Sanford people.
That we have achieved a profit over both
Covid-impacted years is a credit to their
resilience, hardwork and effort in the face
of adversity. I am impressed by the passion
and knowledge of our people and I am
impressed by our engagement scores.
They have faced an incredibly challenging
operating environment, as well as a
change of leadership and my changes in
the way we do things. My special thanks to
Andre for his interim stewardship and his
support to me as I settled in. I wish to
acknowledge and thank our departing
CFO Katherine Turner for her work at
Sanford and to wish her well for the
future. Welcome to our new CFO Paul
Alston who joined us in October. We will
be saying goodbye to Chief Operating
Officer Clement Chia in January and we
thank him for his hard work. He leaves a
strong team in place. My thanks to the
entire executive team and to all at
Sanford, on land and at sea. Thank you for
welcoming me, thank you for your hard
work and ongoing dedication. Thank you
to our hardworking Board and thanks also
to our dedicated investors who have
shown great loyalty to Sanford. I am
confident it can be rewarded.
Peter Reidie
CHIEF EXECUTIVE OFFICER
17 November 2021
science. The same science we use as a
guide to our decisions. We do support the
goals, we are mindful of the “how”.
The New Zealand fishing industry leads
the world in sustainable management
practices. We earn export dollars for our
country. We employ people and take our
role in remote communities seriously. We
appreciate we are in a privileged position
when it comes to accessing the amazing
seafood in the waters of Aotearoa. We do
not take that position lightly. We ask in
return that we are involved in the
decisions that impact us and change the
way we need to do things. We do not fish
the same way today that we did 150 years
ago, nor do we expect to 50 years into the
future. Critical to achieving the goals is
ABOVE Union Beach mussel barge, Coromandel.
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

12
SANFORD INTEGRATED REPORT 2021
SANFORD AND OUR OPERATIONS
—
REPORT
STRUCTURE
—
Thank you for reading Sanford’s
2021 Integrated Report. These
pages explain the structure of this
report and how we integrate the
UN Sustainable Development
Goals and our Business Excellence
Framework within the reporting
frameworks that guide us.
A summary of our Global Sales Footprint
in 2021 can be found on pages 20 to 22.
This section provides a snapshot of our
major markets and includes details about
how these markets continued to be
impacted by Covid-19 through the year.
The How We Create Value section is an
integrated overview of our business
model. It maps our inputs to outcomes on
pages 16 and 17.
In Reporting What Matters on pages 24 to
27, we cover the expectations of our
stakeholders in our materiality review. We
lay out their expectations of Sanford and
how this fits within our materiality and
risk matrices.
CHAPTERS – OUR BUSINESS
EXCELLENCE FRAMEWORK AND
PERFORMANCE OUTCOMES
Each of our chapters covers one of the
five outcomes in our Business Excellence
Framework. This is a change. In previous
years we have used six outcomes, but
we sought to streamline the Framework
this year, while still covering all the
relevant material issues we face. We have
removed the previously used Leading the
Way to Healthy Food and Marine Extracts
chapter and have covered the content
in other chapters. Food safety and
quality is now discussed in the Delivering
and Innovating for Customers and
Consumers and biosecurity is covered
in the chapter on Building a Sustainable
Seafood Business.
Another change is the addition of
narrated stories told by our own people
from the frontline of our operations. Five
of our staff contributed their personal
accounts of the challenges they faced in
2021. We thank them very much for their
stories and are proud to include them.
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

13
SANFORD INTEGRATED REPORT 2021
SANFORD AND OUR OPERATIONS
Our first chapter on pages 30 to 44
focuses on the outcome Enabling Healthy
Oceans and Environments. The decision to
begin here is a considered one. We cannot
deliver on any other aspects of our
Business Excellence Framework without
healthy oceans from which to harvest or
in which to farm our seafood. Protecting
our natural resources is an absolute
priority as readers will discern from the
details provided about our efforts to
minimise our environmental footprint
around our salmon farm, the lifecycle
assessment work underway for mussels
and our waste minimisation focus.
In our second chapter we examine the
outcome Creating a Safe and High
Performing Workplace on pages 45 to 56.
It should go without saying that our
people make Sanford. Our workplaces
should be safe places where we share our
vision and our values. In this chapter we
detail the significant refits undertaken to
our deepwater vessels, making them
better places to work. We cover our
engagement scores and targets and
discuss learning and development.
Our third chapter focuses on how we are
Delivering and Innovating for Customers
and Consumers across pages 57 to 67. This
outcome includes food safety and quality
and our innovations across products and
delivery. The chapter includes a first-hand
account from one of our sales team about
the challenges faced in Covid-impacted
markets. It also marks the consenting of
our marine extracts plant planned for
Blenheim.
Across pages 68 to 76 we look at the
fourth outcome in our Business
Excellence Framework – Supporting
Strong Communities and Partnerships. This
area covers our leadership in creating
employment and skills opportunities and a
key story in this chapter is told by one of
our staff who came to Sanford via a key
community partner working in New
Zealand schools.
Chapter five demonstrates how all the
threads of our Business Excellence
Framework come together in the final
outcome Building a Sustainable Seafood
Business. Here we focus on our desire to
deliver sustainable, profitable and socially
beneficial outcomes. We do this through
our people, sector leadership and risk
management. The examples of these
things provided in this chapter on pages
77 through 87 include a look at how we
have managed supply chain challenges in
2021, an update on our open ocean
farming plans and the ways we are staying
on top of the seismic risks naturally faced
when operating in New Zealand.
THE UN SUSTAINABLE
DEVELOPMENT GOALS
The United Nation’s SDG’s are an urgent
call for action to achieve prosperity for
people and planet. The 17 goals were
released in 2015 as part of the 2030
agenda for sustainable development.
Beneath the goals sits 169 targets, which
guide our decisions about which of the
goals are most relevant to and actionable
by Sanford. We focus on six of the 17
where we believe we can make a
contribution and a difference.
Goal 8 is Decent Work and
Economic growth which we
apply in chapters two, three,
four and five.
Goal 9 is Industry, Innovation
and Infrastructure which we
speak to in chapters three
and five.
Goal 12 is Responsible
Consumption and Production
which is addressed in
chapters one and three.
Goal 13 is Climate Action
which is covered in chapter
one.
Goal 14 is Life Below Water
which is a focus in chapter
one.
Goal 17 is Partnerships for
the Goals which we speak
to in chapters one, three
and four.
A dashboard has been provided at the
start of each chapter to provide guidance
on Sanford's contributions across each
Business Excellence Framework outcome
toward these global goals.
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

14
SANFORD INTEGRATED REPORT 2021
SANFORD AND OUR OPERATIONS
VALUE CREATION – THE SIX CAPITALS
FINANCIAL INTELLECTUAL
HUMAN NATURAL
MANUFACTURED
SOCIAL AND
RELATIONSHIP
The inputs, or capitals upon which we rely
to create value include financial, human,
manufactured, intellectual, natural and
social and relationships. Each outcome will
typically draw on input from more than
one of the six capitals. To represent this,
we have included graphs in the dashboards
at the start of each chapter which
demonstrate to what degree each input
factors into that outcome. These are
qualitative assessments, as there is no
standard approach to putting numeric
values on each of these categories. In these
assessments, we consider the highlights in
this performance outcome over 2021 and
the broader and more typical contribution
each input makes in this area of Sanford’s
business performance.
Examples of the contributions of these
capitals are demonstrated throughout our
chapters. Financial capital contributes to
our fleet refurbishment (chapter two), our
marine extracts plant development
(chapter three) and our environmental
management investments (chapter one).
We draw on human capital in all our
operations and there are many examples
in this report including the work
processing and selling our fish and
shellfish (chapter three).
Manufactured capital goes to work as
we add improvements to our vessels
(chapter two).
Intellectual capital drives our marine
extract development (chapter three) and
is protected in our approach to managing
seismic risk (chapter five).
Natural capital is what we fish and farm
and we protect it with our sustainability
efforts (chapters one and five).
Social and relationship capital is key to our
ability to contribute to our communities
and be welcomed in those places (chapter
four). We aim to be positive contributors
as shown by our partnership with the
Graeme Dingle Foundation, our
community salmon fund and our support
for New Zealand families in greater need
because of the Covid-19 pandemic.
REPORTING FRAMEWORKS
This Report has been developed in
accordance with the International
Integrated Reporting Council (IIRC)
Integrated Reporting Framework. This
enables us to explain how we create value
over time and provide transparency on
every aspect of our business activity.
We remain committed to integrated
reporting because it is the right thing to
do, and we know an increasing number of
stakeholders are interested in how we
create long term sustainable value.
We wish to be transparent. This has
contributed to our decision to apply
the Global Reporting Initiative (GRI)
Sustainability Reporting Standard 2016
to a core level of compliance, and
report across a range of best practice
Environmental, Social and Governance
(ESG) indicators. The GRI index is
included in Appendix E.
DISCLOSURES
Unless otherwise indicated, this Report
covers performance from all our
operations, including North Island Mussels
Ltd in which Sanford has a 50% interest.
All financial data is presented in New
Zealand dollars, unless otherwise stated.
Any changes or restatements of
previously reported figures are identified
throughout the Report. KPMG has
provided independent assurance of this
Report, and this covers both statutory
financial and selected nonfinancial
information. The combined independent
auditors and limited assurance report is
on pages 166 to 172.
This Report, produced by Sanford’s
management team and reviewed by our
Executive team, has been signed off by
Peter Reidie, our CEO and the Board
as a true and accurate picture of
Sanford’s performance during the year.
The Directors are pleased to present
the Integrated Annual Report of
Sanford Limited for the year ended
30 September 2021.
For and on behalf of the Board of
Directors:
Sir R A McLeod
CHAIRMAN
17 November 2021
F Mackenzie
CHAIR AUDIT FINANCE AND RISK
COMMITTEE
17 November 2021
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD AND OUR OPERATIONS
15

SANFORD INTEGRATED REPORT 2021
16
SANFORD AND OUR OPERATIONS
41
FISHING AND
AQUACULTURE VESSELS
225
AQUACULTURE
FARMS
766
16
ACROSS NZ / AU
FINANCIAL CAPITAL
Pool of necessary funds (equity, debt and grants) provided
by banks and shareholders, or generated through
operations or investments
HUMAN CAPITAL
Competencies, capabilities and experience of our
employees, our key asset, and the capacity to add value
through human capital development
MANUFACTURED CAPITAL
Tangible, production-orientated goods and infrastructure
owned, leased or controlled by Sanford that contributes to
the delivery of our products and services
INTELLECTUAL CAPITAL
Intellectual property, brand and reputation, a key element
of our future earning potential and competitive advantage
NATURAL CAPITAL
Stock of natural resources or environmental assets (water,
atmosphere, land, materials, biodiversity and ecosystem
health) that are fundamental to our future prosperity
SOCIAL & RELATIONSHIP CAPITAL
Relationships within Sanford, and between Sanford and its
external stakeholders, which are essential to retaining our
social licence to operate, including relationships to maintain
quotas and licences fundamental to our future prosperity
FISHING
FARMING
OPERATIONS SITES
CUSTOMERS
—
HOW WE CREATE VALUE
—
INPUTSOUR BUSINESS
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD INTEGRATED REPORT 2021
17
SANFORD AND OUR OPERATIONS
OUR VISION
LEADERSHIP
IN NEW ZEALAND
SEAFOOD
Building a Sustainable
Seafood Business
We will endeavour to deliver
sustainable, profitable and socially
beneficial outcomes through our
people, sector leadership,
approach to innovation and risk
management strategies.
Supporting Strong Communities
and Partnerships
Our leadership in creating employment
and skills opportunities, coupled with
our understanding of the needs of our
communities and partners, ensure that
we deliver a significant and positive
contribution everywhere we work.
Delivering and Innovating for
Customers and Consumers
We will work with customers and
consumers to bring them the best of
our sustainably harvested seafood and
marine extracts, demonstrating great
care for our beautiful New Zealand
products and achieving the optimal
value for these precious resources.
Enabling Healthy Oceans
and Environments
We will lead by example in ocean
management, so that future generations
can enjoy and benefit from our
biologically diverse, safe and healthy
oceans. We will work with our people,
customers and suppliers to lead the way
in maximising resource utilisation,
minimising our footprint and protecting
the environment wherever we operate.
Creating a Safe and
High Performing Workplace
We strive to become an employer of
choice by delivering industry leading
safety risk management, ensuring a
culture of high performance and
growth and by living our values.
BEAUTIFUL
NEW ZEALAND
SEAFOOD
REVENUE IN 2021
$489.6
M
774
M
MEALS PRODUCED
STANDARD MEALS BASED ON
A 100G PORTION OF SEAFOOD

OUTPUTSOUTCOMES
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD INTEGRATED REPORT 2021
SANFORD AND OUR OPERATIONS
18
ENABLING HEALTHY
OCEANS AND
ENVIRONMENTS
HIGHSLOWS
VALUE CREATION OUTCOMES
CREATING A SAFE
AND HIGH PERFORMING
WORKPLACE
OVER
8,500
tonnes
– equivalent to 57% of all Sanford waste –
DIVERTED AWAY
FROM LANDFILL
FY20: 40%
15% INCREASE
in aquaculture vessel fuel intensity.
12
NOTIFIABLE SPILLS
– up from 3 in FY20 –
165%
increase
IN INTERNAL STAFF TRAINING
AND UPSKILLING
FY20: 554 hours
FY21: 1,469 hours
▼
31%
REDUCTION IN INDUSTRY TRAINING
CREDITS ACHIEVED BY OUR PEOPLE
FY20: 1998 credits
FY21: 1374 credits
>
30 tonnes
of live Greenshell™ Mussels
donated and used for
NATURAL
HABITAT RESTORATION
in Kenepuru Sound and
downtown Auckland.
0.053 LITRES
OF VESSEL FUEL
utilised per kg of aquaculture harvest.
FY20: 0.046 l/GWkg
HEALTH AND
SAFETY CULTURE
49%
INCREASE IN 'NEAR-MISS' REPORTING,
combined with wider engagement
in H&S reporting
(63% of reports now being raised by
non H&S personnel)
supporting pre-emptive risk reductions.
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD INTEGRATED REPORT 2021
SANFORD AND OUR OPERATIONS
19
132,535
SEAFOOD
MEALS
DONATED
7
COMPLAINTS
relating to odour and noise from
our Auckland Processing Site.
HIGHSLOWS
VALUE CREATION OUTCOMES
1.67
CUSTOMER FOOD QUALITY COMPLAINTS
PER MILLION KILOGRAMS
of seafood sold by Sanford.
2020: 1.43 per m kg.
BRAND GROWTH
OF PREMIUM
BIG GLORY BAY
SALMON
TO REPRESENT 22% BY WEIGHT
for common format products.
FY20: <5%
DELIVERING AND
INNOVATING
FOR OUR CUSTOMERS
AND CONSUMERS
SUPPORTING
STRONG
COMMUNITIES AND
PARTNERSHIPS
BUILDING A
SUSTAINABLE SEAFOOD
BUSINESS
RESOURCE
CONSENT
GRANTED
for our
BLENHEIM MARINE
EXTRACTS CENTRE
20,572
STUDENTS
engaged with the Graeme Dingle
Foundation’s programs during
2021 with Sanford’s assistance.
SAN HAMANA COMMISSIONED
our new state of the art feed and accommodation barge at Big Glory Bay.
▲

21%
SUPPLY CHAIN COSTS
(cost/tonne basis)
combined with low
schedule reliability.
$23.3
M
2020 $38.3
M

ADJUSTED EBIT
MUSSEL HARVEST
▼
17%
as we adjust output
to match market
conditions.
▲
49%
TOOTHFISH HARVEST
FY21: 1,077 t
FY20: 719 t ATO+PTO
▲
15%
SALMON HARVEST
utilising additional pens and
reduced per pen density.
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD INTEGRATED REPORT 2021
20
SANFORD AND OUR OPERATIONS
—
OUR
GLOBAL
SALES
FOOTPRINT
—
Our 2021 financial year was an incredibly
challenging one with constantly changing
market dynamics across the board.
Whilst disappointed with the overall
outcome, we did manage to reduce
inventory levels, while remaining well
placed for growth in 2022.
The impact of the global Covid-19
pandemic continued to play out through
2021 across all the markets we service.
But as the pandemic response has evolved,
we have seen some recovery and even
growth. This is progressing differently in
different markets, as we detail below.
NORTH AMERICA
This market is once again our biggest
export destination, taking 17.4% of
sales volumes, up from 10.8% in 2020.
North America saw significant
improvements in half shell mussel sales
volumes as we worked with in-market
partners to grow volumes, as other
markets weakened. Profitability
continued to lag throughout the year,
with signs of a late recovery heading into
the 2022 financial year. Our focus was on
volume and inventory reduction in the
first half of 2021, followed by chasing
price recovery in the second half, which
will continue into 2022.
Another area of focus for us in this
region has been toothfish. With our
North American customers we have been
able to achieve stronger toothfish sales
through retail channels and offer a
diversified channel mix over the year.
We will look to maintain this for pricing
stability into the future.
AUSTRALIA
Sales of our New Zealand product to
Australia have increased, a reflection
of the strong performance of Sanford
Australia, despite challenging lockdown
conditions this team has experienced,
spending many months in lockdown
since the pandemic began. This market
(including the Pacific) now takes 12.4%
of our total sales volume, up from
10.4% in 2020, which supports the
investments we have made in this market.
This does not take into account Sanford
Australia's purchase and sale of non-
Sanford sourced seafood in the Australian
market. We look to continue to grow this
business unit and the market in the
coming year.
CHINA AND HONG KONG
These markets represented 11.1% of sales
volumes in 2021, down from 12.5% in
2020. We maintained volumes in mussels
here, but at challenged pricing with
inventory built in-market due to the
continuing impacts of Covid-19 lockdowns
on the food service sector. Toothfish
volumes were diminished due to exposure
to high-end foodservice. We are seeing
price improvements in scampi as we bring
to life our closer to customer strategy,
moving from an exclusive arrangement in
market to a diversified customer portfolio.
EUROPE
The European market continued to
suffer ongoing impacts from Covid-19
related shutdowns during the 2021 year.
We saw this recover slower here than in
comparable markets in other regions
which is why it dropped from being our
largest export market in 2020 to only our
fourth largest in 2021, going from taking
12.6% of sales volumes to 9.1%. We sell a
range of products here which largely go
into food service, cruise liners and the
educational sector, areas all vulnerable to
Covid-related disruption. As a result, we
have seen significant declines in mussels
sales volumes during the year and we lack
a significant retail presence in Europe to
offset these declines. Fortunately, we do
have strong partnerships in Europe, and
the latter part of 2021 saw improvements
in demand from key markets in this region
as they open up following the peak
impacts of the pandemic.
OTHER REGIONS
Of note in our other sales regions, we saw a
significant decline in Japan in the first half
of 2021 with some recovery through frozen
salmon in the second half of the year.
Growth in the Russian market remains a
focus. We have secured a number of new
customers in Russia this year, focused on
mussels and a diversified portfolio of white
fish with further opportunities identified.
CONCLUSIONS
Supply chain challenges have impacted us
and will continue to be a limitation (see
pages 81 and 82). But we saw a late
recovery in both demand and price in
many of our global markets, which gives
us grounds for optimism in 2022.
We have invested in putting people on the
ground in North America and Australia
and this is reflected in the growth we are
seeing in these territories. These markets,
as well as New Zealand, are where we will
focus on growth and value opportunities
in the coming year. We see opportunity
for European growth too, as the recovery
in food service there gathers pace.
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD INTEGRATED REPORT 2021
21
SANFORD AND OUR OPERATIONS
Indian Ocean
South Pacific
North Atlantic
South Atlantic
Tropic of Capricorn
Equator
Tropic of Cancer
Arctic Ocean
North Pacific
Southern Ocean
Melbourne
AUSTRALIA
(INC. PACIFIC ISLANDS)*
12.4
%
SOUTH
KOREA*
1.0
%
2020: 2.2%
2020: 10.4%
RUSSIA
1.4
%
2020: 1.5%
OTHER ASIA*
3.2
%
2020: 3.1%
JAPAN*
2.2
%
2020: 2.3%
*
EUROPE*
9.1
%
2020: 12.6%
NORTH AMERICA*
17.4
%
2020: 10.8%
11.1
%
2020: 12.5%
CHINA
(INC. HONG KONG)*
KEY
Fishing areaFish Market
Top Export Countries
* Percentage of operations revenue from top nine geographical
locations at point of sale
—
OUR GLOBAL SALES FOOTPRINT
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD INTEGRATED REPORT 2021
22
SANFORD AND OUR OPERATIONS
—
OUR
NEW ZEALAND
FOOTPRINT
—
NEW ZEALAND
Our home market continues to be hit by
pandemic impacts. Despite a period of
positive trading between lockdowns, it
has been a hard year for foodservice overall
in New Zealand. Even when the country
was at Alert Level 1, major distributors
were operating at around 70% of their
usual level as a result of border closures.
We have however, seen a strong performance
from our retail partners, offsetting some
of that decline. In September we signed a
five-year sales processing and partnership
deal with Foodstuffs which will see them
taking approximately 20% of our domestic
sales value.
The proportion of overall sales volumes
to our domestic market has decreased
year-on-year because of a combination of
that foodservice decline and lower fishing
partner sales.
Auckland
Tasman Bay
Havelock
Timaru
Bluff
Waitaki
Kaitangata
Stewart Island
Coromandel
Tauranga
Blenheim
NEW ZEALAND*
41.1
%
2020: 43.9%
ProcessingAquaculture
FishingFish Market
Processing
Joint Arrangements
Aquaculture
Joint Arrangements
Head Office
* Percentage of operations
revenue from top nine geographical
locations at point of sale
KEY
Nelson
Golden Bay
Christchurch
Great Barrier Island
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD INTEGRATED REPORT 2021
SANFORD AND OUR OPERATIONS
24
Since 2014, when we adopted an
integrated reporting framework, we
have evaluated, prioritised and
presented on material topics in our
annual report. Prior to adopting
integrated reporting, stakeholders’
views, concerns and questions,
along with our response, were
detailed in our sustainability reports.
The materiality process, since its
inception, has ranked the issues which
most concern a diverse range of some
199 stakeholders representing
shareholders, employees, suppliers,
customers, iwi, industry, community,
non-government organisations and local
and central government. Their views are
obtained through workshops and
one-on-one interviews, with the
methodology aligned with the best
practice AA1000 Stakeholder
Engagement Standard.
—
OUR APPROACH
AND STAKEHOLDER
ENGAGEMENT
—
The list of topics is also ranked according
to their potential ability to impact on our
business by informed internal
stakeholders, which has included
members of the Board, Executive, and
Senior Leadership Team. The criteria
include profitability, ability to operate,
reputation, value provided to society and
to the environment. The resulting
materiality matrix, comprising both the
issue significance to stakeholders as well
as potential impact to business is
published each year, with an
accompanying commentary. The matrix
does far more than inform the Board and
management team of our stakeholders’
concerns. It ensures each of the key
issues identified are prioritised within our
action plans, through our Business
Excellence Framework.
ABOVE San Nikau, mussel barge, Marlborough Sounds.
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD INTEGRATED REPORT 2021
SANFORD AND OUR OPERATIONS
25
FIGURE 1: Sanford materiality matrix,
showing the highest ranked material,
and other material issues, using data
from our 2020 process.
012345
678910
0
1
2
3
4
5
6
7
8
9
10
STAKEHOLDER CONCERN
BUSINESS IMP
AC
T
IMPORTANT
IMPORT
ANT
MATERIAL
MA
TERIAL
Innovation in
products & markets
Regulatory risk
management
Environmental
footprint
Operational excellence
Responsive fisheries management
Maximising $/kg
Health, safety & wellbeing
Food safety & quality
Sustainable seafood
Alternative proteins
Climate change
World-class brand
Biosecurity
Resilient
supply chains
Collaboration
Traceability &
provenance
Plastics in the ocean
Trust in
seafood industry
Community support
World-class employer
Sanford leads
NZ seafood
Communication
Shared vision and values
ENABLING HEALTHY OCEANS
AND ENVIRONMENTS
BUILDING A SUSTAINABLE
SEAFOOD BUSINESS
SUPPORTING STRONG
COMMUNITIES AND PARTNERSHIPS
CREATING A SAFE AND HIGH
PERFORMING WORKPLACE
DELIVERING AND INNOVATING
FOR CUSTOMERS AND
CONSUMERS
OUR TOP 12 ISSUES BY THEIR
POTENTIAL BUSINESS IMPACT WERE:
1st= Sustainable seafood
1st= Food safety and quality
1st= Health, safety and wellbeing
of our people
4th= Shared vision and values
4th= Maximising $/kg of harvest,
driving profitability
6th Responsive fisheries management
7th Transparent and effective
communication
8th= Resilient supply chains to
final markets
8th= Resilience to biosecurity risks
8th= Operational excellence
8th= Minimising Sanford’s
environmental footprint
8th= Regulatory risk management
The top three issues – the health and
wellbeing of our people, food safety
and quality, and sustainable seafood –
remained unchanged from prior years,
while our overall index has also been
largely stable, with some shift in rankings.
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD INTEGRATED REPORT 2021
SANFORD AND OUR OPERATIONS
26
framework for global reporting and the
Global Reporting Initiative (GRI)
standards. Taking this approach reflects
a dynamic view of materiality which can
respond to internal and external changes,
whilst also remaining relevant and
avoiding process repetition.
The constrictions of operating in the
second year of the Covid-19 pandemic
has been a factor in this decision, but it
is not the prime consideration. We now
know from our formal annual cycle, along
with more informal engagement prior to
adopting integrated reporting, that what
matters most to our stakeholders does
not change markedly from year-to-year.
Their main concern – and one we share
– is that we must strive towards safe,
healthy food and marine extracts that
are produced in a way which respects
both the natural environment and our
own people.
We are also confident that the strong
and trusting stakeholder relationships
we have are not dependent on a formal
engagement framework to function.
All our stakeholders know they are free
to raise concerns and questions with us
at any time. Our continued determination
to reflect what matters to them in our
strategy and our actions has also been
made clear by both the Board and
Executive Team. Both have acknowledged
our goals can only be achieved by
Sanford having effective and successful
relationships with our customers, our
people, suppliers, and the wider
community, including iwi and Government.
MATERIAL RISKS AND CLIMATE
CHANGE MATERIALITY
Climate change as a topic in and of itself
has consistently ranked, relative to other
issues, in the lower grouping of material
topics within our materiality assessments.
At the same time, climate change is
routinely identified as a high priority
business risk. This apparent disconnect
can be explained by considering that the
topics of sustainable seafood, responsive
fisheries management, resilience to
biosecurity risks, and regulatory risk
management all contain implicit elements
relating to the effects and impacts of
environmental changes, including those
relating to and driven by climate.
Reflecting the position of climate change
within our organisational risk framework,
along with its potential fundamental
effect on the natural world, societies,
business, and economies we continue to
treat climate change as a material subject
to inform strategy.
DYNAMIC MATERIALITY
We now have more than five years’
experience in this formal annual
engagement with our stakeholders,
identifying issues, ranking them,
determining the business impact and
preparing a materiality index. We are
confident that we can now move toward
a 2-4 yearly cycle, which will continue
to be guided by the International
Integrated Reporting Council (IIRC)
ABOVE Steve Faithful, Sanford truck driver.
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD INTEGRATED REPORT 2021
SANFORD AND OUR OPERATIONS
27
ADDRESSING MATERIAL ISSUES
THROUGH OUR BUSINESS
EXCELLENCE FRAMEWORK
Addressing the most material issues is
our priority at Sanford. We measure our
performance against material issue
outcomes within the five outcomes of our
Business Excellence Framework, which is
described in the Performance section of
this Report (pages 28 to 87). In the
diagram below we link our top material
issues, identified from stakeholder
engagement, to the five outcomes from
our performance framework and
associated Sustainable Development Goal
outcomes (the ranking of material issues is
shown below in brackets beside each topic).
ENSURING HEALTHY OCEANS
AND ENVIRONMENTS
• Sustainable seafood (1=)
• Responsive fisheries
management (6)
• Environmental footprint (8=)
• Climate Change (#1 Business Risk)
CREATING A SAFE AND HIGH
PERFORMING WORKPLACE
• Health, safety, and wellbeing (1=)
• Shared vision and values
[with our people] (4=)
• World-class employer (14=)
DELIVERING AND INNOVATING FOR
OUR CUSTOMERS AND CONSUMERS
• Food safety and quality (1=)
• Resilience to biosecurity risks (8=)
• Innovation in products and
markets (14=)
SUPPORTING STRONG
COMMUNITIES AND PARTNERSHIPS
• Shared vision and values
[with communities] (4=)
• Community support (14=)
BUILDING A SUSTAINABLE
SEAFOOD BUSINESS
• Maximising $/kg, driving
profitability (4=)
• Transparent and effective
communication (7)
• Operational excellence (8=)
• Regulatory risk management (8=)
• Resilient supply chains (8=)
• Sanford leads NZ seafood (14=)
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD INTEGRATED REPORT 2021
28
OUR FIVE PERFORMANCE OUTCOMES
CAPITAL INPUTS
1. Financial
2. Human
3. Manufactured
UN SDG
United Nations Sustainable
Development Goals
CAPITAL INPUTSCAPITAL INPUTS
Enabling Healthy
Oceans and
Environments
Creating a Safe
and High Performing
Workplace
UN SDGUN SDG
1
2
3
4
5
6
KEY
4. Intellectual
5. Natural
6. Social & Relationship
1
2
3
4
5
6
—
OUR
PERFORMANCE
OUTCOMES
—
In the chapters ahead you will find
the details of our performance in 2021
arranged across the five outcomes in
our Business Excellence Framework.
These chapters can be cross referenced
with the Global Reporting Initiative (GRI)
guidelines (see the index in Appendix E).
Their content is selected with the
International Integrated Reporting
Council frameworks as our guide.
Each chapter starts with a dashboard
showing capital inputs and which
UN Sustainability Development Goals
relate most to each performance
outcome. All five of these dashboards
are shown here for ease of comparison.
These are the stories of our challenges
and progress in 2021, told frankly and in
the words of our people.

SANFORD INTEGRATED REPORT 2021
29
OUR FIVE PERFORMANCE OUTCOMES
CAPITAL INPUTS
1. Financial
2. Human
3. Manufactured
UN SDG
United Nations Sustainable
Development Goals
CAPITAL INPUTS
1
2
3
4
5
6
Delivering and
Innovating for Customers
and Consumers
UN SDG
KEY
4. Intellectual
5. Natural
6. Social & Relationship
CAPITAL INPUTS
Building a
Sustainable
Seafood Business
UN SDG
1
2
3
4
5
6
CAPITAL INPUTS
Supporting
Strong Communities
and Partnerships
UN SDG
1
2
3
4
5
6

30
Enabling Healthy
Oceans and
Environments
CAPITAL INPUTSUN SDG
1. Financial
2. Human
3. Manufactured
4. Intellectual
United Nations Sustainable
Development Goals
5. Natural
6. Social & Relationship
We will lead by example in ocean management, so that
future generations can enjoy and benefit from our
biologically diverse, safe and healthy oceans. We will work
with our people, customers and suppliers to lead the way in
maximising resource utilisation, minimising our footprint and
protecting the environment wherever we operate.
CAPITAL INPUTS
1
2
3
4
5
6

SANFORD INTEGRATED REPORT 2021
Enabling Healthy Oceans and Environments
31
Material issues and value creation
This table summarises Sanford’s material issues and associated actions relating to enabling healthy oceans and protecting the environment. It includes the
strategic goals within our Business Excellence Framework, the targets we set at the commencement of year 2021, and our progress against these targets.
At the end of this section, we define our future targets for 2022 and beyond as well as our vision through to 2025.
PROGRESS AGAINST TARGETS FOR FINANCIAL YEAR 2021
MATERIAL ISSUES & STRATEGIC GOALS2021 TARGETSPROGRESS AGAINST TARGETS (FY21)
Sustainable fish stocks, marine
farms and marine conservation
Comply with all applicable laws and
regulations governing our operations,
including relevant international
conventions, recognising the
importance of healthy ocean and
farming management.
Actively support the rollout of cameras across
New Zealand’s commercial fishing fleet to promote
transparency in fisheries reporting and
management.
Achieved. Sanford continues to advocate for the standardisation of specification and
rollout of cameras across the commercial fleet. We also identify that regulatory
settings should also be updated in reflection of camera rollout. Sanford expanded its
rollout of fisheries observation cameras during FY21 to now cover six of our owned
vessels.
Roll out and implement best practice
environmental codes from the Marine Farming
Association (MFA) for our aquaculture vessels
throughout the country, using those codes already
applied in the Marlborough/Tasman region as the
model.
Achieved. Aquaculture vessel environmental code guidelines prepared and rolled out
across our operational regions. Processes to measure and monitor implementation to
be activated during FY22.
Promote and support fisheries management to
ensure the sustainability and resilience of fish
stocks by actively engaging with the industry on
QMS submissions, supporting MSC certifications
for deepwater species, and ensuring full catch
reporting for our activities.
Achieved. Sanford maintains an active participation in sustainable management of fish
stocks through the Deepwater Group, Fisheries Inshore New Zealand, and Southern
Inshore. All positions taken on stock submissions support ensuring the ongoing
viability of fisheries resources. No breaches in catch reporting during FY21, meeting
full catch reporting requirements.
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD INTEGRATED REPORT 2021
Enabling Healthy Oceans and Environments
32
MATERIAL ISSUES & STRATEGIC GOALS2021 TARGETSPROGRESS AGAINST TARGETS (FY21)
Endangered, threatened and
protected species
Ensure protection of marine species,
including seabirds, sea lions, dolphins
and sharks, through delivering best
practice farming and fishing
practices, implementing protection
measures and participating in
ongoing robust research
programmes.
Achieve year-on-year reduction in interactions with
marine mammals and seabirds through continuous
improvement measures, and participation in
cross-sector working groups, and targeted
partnerships.
Not Achieved. Total fisheries interactions with seabirds was lower in FY21 (FY20:362,
FY21:294), but interactions with marine mammals increased relative to prior year
(FY20:36, FY21:44). The effect from participation in improvement programmes such
as the Black Petrel Working Group, MAUI63, mitigation development, operational
procedures, and trigger level deployment is having longer term benefits with a
reduction in interactions over longer time periods (seabirds: -38% FY21:FY18,
mammals: -43% FY21:FY18).
Environmental Effects
Focus on having no adverse impact
on the environment when carrying
out our business operations, avoid
pollution or contamination of land,
air and water and enhance the
environment in which we operate
through sound management and
mitigation.
Ensure no environmental abatement notices across
the group and maintain certification to the updated
ISO 14001:2015 EMS standard across our
operations.
Not Achieved. North Island Mussels Ltd (NIML), a JV operation, received a notice in
relation to odour from by-products at its processing site. Corrective measures have
been successfully implemented.
Successful re-certification during February 2021 of Sanford’s Environmental
Management System (EMS) in accordance with the requirements of ISO14001:2015.
Resource Utilisation
and Efficiency
Do more with less by maximising
efficient use of resources and
ensuring waste minimisation, re-use
and recycling.
Achieve 3% resource efficiency improvements
across land based processing sites for water (litres/
GWkg) and energy use (MJ/GWkg) along with a
waste diversion rate which exceeds 35% diversion
from land-fill across all operations.
Achieved. Improved water efficiency (6% improvement on FY20) as well as energy
efficiency (6% improvement on FY20), driven by consolidation of processing volumes
with last year’s closure of Tauranga factory and rollout of water savings projects
implemented at Auckland and Havelock sites. Waste diversion for all waste streams
achieved target reaching 57% resulting from a strong focus on recycling and reuse
projects including plastics, fibres, PPE and mussel shell.
Initiate a sustainable packaging program; starting
with identifying current and future circular
packaging options.
Ongoing. Working group established. Changes made across some lines including
Sanford & Sons home delivery to achieve 100% recyclability in packaging. Packaging
improvement projects to continue into FY22 and beyond focussing on other lines.
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD INTEGRATED REPORT 2021
Enabling Healthy Oceans and Environments
33
MATERIAL ISSUES & STRATEGIC GOALS2021 TARGETSPROGRESS AGAINST TARGETS (FY21)
Carbon reduction
Demonstrate our commitment to
climate change responses by actively
reducing our energy consumption
and emission of greenhouse gases
and seeking to introduce low carbon
solutions into our value chain, where
practicable.
Reduce our carbon emission intensity (CO
2
-kg/
GWkg) by 2.5% across all of our operations for
emissions which are in our direct control (Scope 1
and Scope 2 emissions), and work collaboratively
with suppliers and partners to reduce emissions
intensities in our value chain.
Not Achieved. 4.8% reduction in absolute Scope 1 and 2 GHG emissions (tonnes
CO
2
-e) (FY21 vs FY20), however as a result of reduced mussel harvests, emissions
intensity (CO
2
-e kg/GWTkg) increased by 0.9% during FY21. During FY21 we also
completed work on a long-term emissions reduction pathway, which will work to
guide future emissions reduction planning and project implementation.
ABOVE Sunset over Sanford’s Big Glory Bay mussel farm, Stewart Island.
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD INTEGRATED REPORT 2021
Enabling Healthy Oceans and Environments
34
C
oming to Stewart Island and working
for Sanford was a game changer for
me. I love my work here and have applied
for permanent residency in New Zealand
– a long way from my former life as a
Government forensic technician helping
to solve crimes.
What makes a happy fish? It is not that
easy to tell. On land, you have the five
animal freedoms which define animal
welfare – things like freedom from hunger
and thirst, freedom from discomfort and
freedom from pain. When it comes to
fish, it is more difficult because they do
not express much or give away their
feelings as a cow or a cat would.
Achira “Archie” Amadoru is a former government forensic laboratory
technician who moved from Sri Lanka in 2015. He has a degree in aquaculture
and marine conservation from the Nelson Marlborough Institute
of Technology (NMIT). He is responsible for fish health management at
Sanford’s Big Glory Bay farm on Stewart Island. Here he talks about his
first-hand experience managing fish health and the environment in 2021.
ABOVE Achira Amadoru (“Archie”), Sanford Aquaculture Technician on Stewart Island.
So, it is important to look for the limited
signs – how they swim, how they eat, their
breathing rate, things like that. You get an
eye for it.
As an aquaculture technician, my role
is to look after the health of the fish
and to monitor the health of the water in
and around our farms in Big Glory Bay.
Looking after fish health on my own
would be very difficult. Luckily, we have
a great team of feeders and divers, and
they all have good eyes and can inform
me if they feel something is not right.
They have good instincts.
Water quality is very important for the
health of the fish. I normally sample three
times a week, looking especially for algae
that can harm the fish stock. Some algae
From Forensics
to Fish
A PERSONAL VIEW OF 2021
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

Enabling Healthy Oceans and Environments
SANFORD INTEGRATED REPORT 2021
35
Technology like satellite systems and
drones enable us to cover right across the
bay and we are working now to get an
underwater ROV (remotely operated
vehicle). They carry cameras, sensors and
lighting to record good quality footage,
so we can inspect the seabed and detect
any feed waste. Monitoring the seabed is
important for protecting and improving
its health.
I love this work. We have a good
management team, and everyone has
given me good training. I have a lot of
support and I love living on Rakiura-
Stewart Island. I am involved in the
Yellow-Eyed Penguin trust, helping to
monitor penguin health and I am also a
mammal medic for Project Jonah, so I can
assist if there are dolphin or whale
strandings.
Sri Lanka is a long way away and I have not
been home in seven years. A trip last year
was stopped by Covid-19 – so I miss my
Mum’s cooking, but I am pretty good
myself and make a lot of Sri Lankan food.
Tonight, it’s chicken curry.
ABOVE Achira Amadoru
can be really harmful and produce toxins
and damage the salmons’ gills, especially
during summer because in warmer weather,
algae grows very quickly. Understanding
if there is algae in the water, and what
type of algae, enables us to take actions
to mitigate the harm to the fish.
When aeration comes from the bottom of
the pen it keeps the algae pushed away
from the fish and they also swim through
the bubbles which helps clear their gills.
We pause feeding briefly because that is
also stressful when algae is present and
the fish consume more oxygen.
I am lucky to use very advanced systems
like satellite to monitor chlorophyll levels
in the ocean. All phyto planktons have
chlorophyll and the satellite gives me a
general idea of where algae may be in the
water. In water sampling, I work at points
across the bay, looking for any evidence
of algal blooms or anything that is not
right. We pick random sites, allow for
winds and tides and we can quite reliably
pick where any algae will travel. That
enables us to adjust feeding patterns with
the tides.
Fish welfare is one of our prime
considerations. Water has an influence on
that. We work hard to protect both, and I
have access to technology which enables
us to adhere to the best aquaculture
practices.
Fish welfare is one of our prime
considerations. Water has an
influence on that. We work hard
to protect both, and I have
access to technology which
enables us to adhere to the best
aquaculture practices.
—
Archira Amadoru
SANFORD AQUACULTURE TECHNICIAN
WATCH VIDEO
Fish Health & Water Quality
Technician, Archie Amadoru
https://youtu.be/Kyyz0uP5kDc
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD INTEGRATED REPORT 2021
Enabling Healthy Oceans and Environments
36
MORE SPACE,
BETTER
ENVIRONMENT,
HEALTHY FISH
Our salmon farm in Big Glory Bay
was expanded from 16 pens to
24 this year, creating a better
environment for our high-value
salmon. While the size of the farm
has grown, fish numbers have not.
The lower density levels create
better conditions for growth.
Sanford GM Salmon Farming, Richard
Miller, says the expansion has created a
better environment overall.
“By keeping fish density at a very low
level you create an even better
environment for relaxed salmon to swim
and feed well. Unlike previous summers
where marine heatwaves affected the
farm, this year’s summer season was
farming-friendly and was followed by a
relatively mild winter. While some
potentially problematic algae was
detected in the bay, we had no issues.”
confidence that farming is being managed
well in the region and will be key to any
adjustment in nitrogen cap in the future.
Richard says the farm year has been busy,
regardless of the stop-go influences on
demand caused by the pandemic.
“Our additional pens are functioning well,
the new feed barge which we
commissioned last year is now well
bedded in and we have replaced all our
nets over the past 12 months.
Richard says observations made three
years ago during previous marine
heatwaves have fed into salmon breeding
programmes in the farm, which are
steadily producing a line of faster-
growing, resilient fish which efficiently
convert feed and are producing more
weight for less intake.
“We observed in the heatwaves that
some families of fish tended to do better
than others and had greater survivability.
That’s a trait we want to encourage, given
the continued need to manage risks from
climate change. Our selective breeding
programme looks for fish with quality
traits, such as fat and colour, growth and
maturation, and resilience. Relying on
selective breeding to naturally build
genetic traits means it does take time to
create a resilient line, but we began this
work after the marine heatwaves three
years ago and we expect it to have
multiple benefits in terms of commercial
efficiency, overall risk and to further
enhance our environmental focus.”
With the amount of salmon the farm
can produce regulated by nitrogen
caps, having healthy fish that grow well
with less feed will, over time, show that
expansion can be managed within
precautionary environmental limits.
An intensive regulated environmental
programme reviewed through third party
involvement, provides the science and
“As a team we are really focused on the
welfare of our salmon, increasing our
monitoring and surveillance to give us
confidence that everything is in good
shape from day to day.”
The farm can use oxygenation systems in
four pens adding movement and flow to
increase available oxygen in what is a
naturally low-flow inshore environment.
This work is being trialled in anticipation
of more challenging summer conditions in
ABOVE Big Glory Bay salmon farm, Stewart Island.
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

Enabling Healthy Oceans and Environments
SANFORD INTEGRATED REPORT 2021
37
INVESTMENTS
FOR SALMON
GROWTH
Growth in our salmon farming
operations in Big Glory Bay will be
supported by two projects which will
be progressively commissioned over
the next three years.
Stage one of a new brood stock tank
development is expected to be
commissioned in the second quarter of
the 2022 financial year. The new brood
stock tanks will enable the majority of our
breeding fish to be transferred from our
current sea pen system.
GM Salmon Farming, Richard Miller says
the new tanks will bring multiple benefits.
“Our most important breeding fish will be
taken away from an environment which
can be exposed to issues such as algal
bloom or jelly fish. The project focuses
on further de-risking the business, while
maximising the improvements we are
achieving through genetic selection.”
A Recirculating Aquaculture System
(RAS) will be part of the new hatchery
project, enabling full environmental
control.
future years, an adaptation response to
climate change. All of our pens now have
available aeration technology to be
utilised should conditions demand, which
creates a bubble fence, preventing
harmful algae from entering pens and
improving fish welfare, further managing
risk. In the coming year, oxygen systems
will be expanded to another four pens for
ongoing trials of the technology.
The year has provided plenty of problem-
solving opportunities, with lead times for
gear (such as new nets) doubling, and
delivery made complex with the cost and
availability of sea freight capacity. On the
upside, our feed source in Tasmania, which
provides two blends tailored to our King
salmon, has remained largely stable.
Richard says the team is consistently
focused on getting ahead, analysing
potential risks and ensuring the systems
are in place for mitigating those risks.
“We want a culture of ‘expect and
mitigate’, rather than being forced to
scramble into action. We never want to be
looking in the rear vision mirror and
thinking ‘we should have done’ – it’s all
about looking ahead and managing
potential risk as best we can.”
“The RAS will enable us to transfer bigger
salmon smolt to sea to reach harvest
maturity. This will reduce the production
cycle time in Big Glory Bay by 10 to 15%,
through improved efficiency.
“The system also provides a fully
controlled environment of temperature
and oxygen for the smolt which will allow
full control of timing, count and size to
sea. This means we can achieve a
consistent and targeted harvest size
throughout the year with little variation
month to month, and that’s great for
market sales and predictability. Increasing
our smolt capacity also supports future
growth and reduces our risk through the
enhanced smolt quality.”
The RAS is expected to be commissioned
early to mid-2023.
Our most important breeding
fish will be taken away from
an environment which can be
exposed to issues such as algal
bloom or jelly fish. The project
focuses on further de-risking the
business, while maximising the
improvements we are achieving
through genetic selection
—
Richard Miller
SANFORD GM SALMON FARMING
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD INTEGRATED REPORT 2021
Enabling Healthy Oceans and Environments
38
SUPPORTING
SUSTAINABLE
EATING
As cautions increase on climate
change, and concerns increase
about the loss of biodiversity,
the rise of obesity and the state
of our freshwater resources,
“what’s for dinner” is getting to
be as much about sustainable
choices as healthy ones.
Getting the best nutritional outcome
with the lightest footprint is increasingly
necessary for our food production systems
to ensure environmental outcomes, at the
same time as supplying protein and
nutrition for growing global populations.
Consumers are also engaged by these
principles and farmed shellfish have the
potential to be a sustainable and delicious
answer. But it will take more than a few
marketing claims to reassure them.
That’s why we’ve supported Aquaculture
New Zealand and the Ministry for Primary
Industries to commission a Life Cycle
Assessment (LCA) of farmed New Zealand
Greenshell™ Mussels. This study follows
international standards ISO 14044 and
ISO 14067 and covers the full life cycle,
including mussel spat collection, farming,
harvesting, preparation, chilled
distribution to customers and consumers,
cooking, consumption, and disposal of
used shells and packaging. The study
follows the consumption of 100 grams of
protein content of New Zealand-
produced fresh mussels over their entire
life cycle, enabling the aquaculture
protein to be compared with other forms
of nutritional protein.
GM Sustainability, Dr Peter Longdill says
that the results provide a scientific basis
to something we have suspected for a
long time, that mussels are a superfood
for people and planet.
“Increasingly people want a more a
diverse diet and growing consumer
segments are seeking out nutrition and
protein sourced from systems with
minimal or no significant environmental
impact. Seafood, and in particular farmed
bivalves such as mussels and oysters, are
produced with minimal intervention. They
do not require added feed or nutrients,
they simply take what they need from the
water around them. The habitat creation
effect from mussel longline farms is a net
positive for the local ecology, with there
being 3.6 times more abundant wildlife
surrounding the farms, which is also
1.1 times more biodiverse than for
non-farm sites. A real restorative food
system.
“Greenshell™ mussels are nutritionally
rich, high in protein , readily available and
easily affordable – a real superfood.”
One aspect from the Life Cycle
Assessment study is that it is showing that
NZ farmed Greenshell™ Mussels have
among the lowest carbon footprints of all
animal proteins, including red meats,
poultry and eggs, and compete with the
likes of tofu in terms of carbon emissions
per 100g of protein.
“There is more to these findings than just
a reassuring carbon footprint for
consumers. It confirms to the aquaculture
industry that producing farmed mussels
and oysters (which were also included in
the study) is both sustainable in a broad
sense as well as highly efficient in terms
of climate change.
“It will also identify what we can do to
improve processes across the life cycle
and value chain of mussels – from spat to
the consumers plate - to improve our
performance and that of this great food.
That is reassuring to Government and
regulators, for example, that aquaculture
represents a sustainable source of protein
both today and into the future.”
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

Enabling Healthy Oceans and Environments
SANFORD INTEGRATED REPORT 2021
39
EVERY BIT
COUNTS AS
WE WORK
TOWARDS
A CIRCULAR
ECONOMY
Efforts to reduce the volume
of waste sent to landfill include
Sanford sites aiming to outdo
each other in finding alternative
uses for everything from mussel
floats to gumboots, pallets to
polypropylene.
In Havelock, the thousands of large,
hard plastic floats used on our mussel
farms now end their useful lives ground
down into raw material for producing
products such as water troughs,
toolboxes and drainage products. It’s part
of a mussel industry initiative coordinated
via the Marine Farming Association to
solve a problem of bulky waste with a
sustainable solution.
Finding new uses for other equipment,
such as salmon pens and fishing nets, has
seen them back in action as bird netting
at orchards and aviaries, on farms as silage
pit covers, as climbing nets at water parks,
and cricket nets. We are also investigating
using nets as foundations for dune
restoration projects or the building of
stop banks in flood-prone areas.
In Bluff, eco-champions Marie McDonald
and Lara Wast, says wooden pallets, which
can no longer be returned, are being
repurposed as firewood for the elderly,
play equipment, wall planters and as a
flourishing vegetable garden on site.
“Whatever waste we have, we try to find a
new home for it. We set ourselves a target
of a 70% reduction in waste to landfill for
our processing site at Bluff, and we are
close to it,” says Marie.
New Zealand gumboot manufacturer and
supplier Bata Industrials is trialling its
gumboot recycling programme at the
Bluff site where up to 60 workers typically
wear out two to three pairs of boots each
year. Used boots are processed through a
granulating machine and turned into
pellets which can be used to make more
boots. There’s potential to expand this
initiative across all our sites.
In Havelock Rebekah Anderson is
successfully repurposing mussel shells in
landscaping and is working with a
recycling provider to ensure waste such
as soft plastics, cardboard and paper
towels do not go to landfill.
“Working with them our mussel
operations have achieved a 40% diversion
rate this financial year, compared to a
7% diversion rate during FY20 and have
identified more opportunities for
improvement for FY22.”
All our waste reduction efforts are
captured in an environmental database,
deployed two years ago to ensure
complete and accurate data
measurement. This year Sanford
successfully diverted 8,534 tonnes of
waste from landfill achieving a diversion
rate of 57%.
ABOVE Image courtesy of Bata Industrials, www.batastore.co.nz
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD INTEGRATED REPORT 2021
Enabling Healthy Oceans and Environments
40
MPI SUMMARY OF SANFORD’S REPORTED INCIDENTAL CATCH DATA
1
SEABIRDSMARINE MAMMALS
2
20212020201920182021202020192018
Uninjured 98140831730356
Injured 52320000
Dead 19122016423444334671
Total 29436225040944365177
Mortality Rate (%)
3
65%61%66%57%100%92%90%92%
1. Vessels operating under Sanford fishing permit over the period July 2020 to June 2021, reflecting data availability
from MPI.
2. For context, since our records began, Sanford has never harmed a Māui dolphin.
3. Mortality rate calculated as the ratio between total species caught and those caught dead.
* Based on Sanford’s total wildcatch (by GWT). Deviations reflect fluctuations with seasonality, annual
catch entitlements, species composition and climate events such as El Niño/La Niña.
20212017201820192020
WILD CAUGHT MSC CERTIFIED CATCH*
94.6% of Sanford’s wildharvest is sourced from
fish stocks actively managed
1
to ensure their
ongoing sustainability.
Enduring fish stocks and healthy oceans are a matter of material importance for
Sanford. Research has shown that on average, scientifically assessed fish populations
around the world are healthy or improving. There are areas around the world where fish
populations are not so well assessed, do not have strong management frameworks, and
are considered over-fished. There are some who promote a narrative that the only
solution to solve these challenges is to close large areas of the seas and oceans to
fishing or to cease eating seafood. In fact, there are other sophisticated, and successful
solutions, lead amongst them is the use of high levels of science-based assessments,
management action, and enforcement capacity to drive more abundant and sustainable
oceans
2
. Fishery management works – when fisheries are managed, they are sustained,
and wider benefits realised when combined with other measures such as targeted
habitat protections, improvements to coastal run-off water quality, and oceans policy.
94.6% of Sanford’s catch by volume is sourced from fish stocks which are actively
managed
1
to ensure the stocks ongoing sustainability. That does not mean the
outstanding 5.4% of catch is not-sustainable. The 5.4% represents fish that we’re not
targeting, and those where catch levels are such that the fisheries regulator has not
deemed it necessary to implement an active framework to limit or restrict harvests.
Passive and indirect measures are in place to increase precision and reduce levels of
interaction with those species, and we continue with projects to improve these.
1. Defined as a system which actively assesses stocks and uses those stock assessments to instruct fishery management
and harvest levels. Includes stocks where harvest levels and fishery impacts are actively controlled via NZ’s QMS,
CCAMLR and SPRFMO.
2. Hilborn et al. 2020. Effective fisheries management instrumental in improving fish stock status, PNAS January 28,
2020 117(4) 2218-2224.
46%
39%
45%
36%
44%
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD INTEGRATED REPORT 2021
Enabling Healthy Oceans and Environments
41
OUR SALMON UTILISATION
—
HEAD TO TAIL AND ALL IN BETWEEN
—
HEADS
SOLD TO CUSTOMERS
OR PROCESSED
FOR FISH MEAL
FRAMES
SOLD TO CUSTOMERS
OR PROCESSED
FOR FISH MEAL
FILLETS, BELLIES AND WINGS
SOLD TO CUSTOMERS
GILLS
PROCESSED
TO FISHMEAL
GUT CONTENT
USED FOR BAIT AND
BURLEY OR COMPOSTED
TO FERTILISER LOCALLY
TAILS AND FINS
SOLD FOR PET FOOD
OR PROCESSED
FOR FISHMEAL
A lot of time, effort and energy
goes into breeding, raising, and
growing the perfect salmon.
We rely on the care and
attention of our highly skilled
people, as well as on the pristine
environment where we farm.
Growing such a precious
resource demands we place
equal emphasis on treasuring and
valuing all parts of the salmon,
from head to tail and everything
in between.
Our salmon are processed at our
facility in Bluff, and can be sold
to customers in either a ‘gilled
and gutted’ format, or can be
broken down into fillets or
portions for packing.
For us, there is no waste here.
Our aim is to respect the entire
salmon, generate value, and
provide beneficial outcomes for
society and our business from
the entire fish.
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD INTEGRATED REPORT 2021
Enabling Healthy Oceans and Environments
42
Consumers are increasingly looking for options to satisfy their
nutritional needs, while minimising environmental harm. Seafood
is an incredibly carbon efficient source of protein.
For Sanford, the challenge is to produce more of this sustainable
protein while bringing emissions down. We are targeting a 25%
reduction in our operational carbon emissions by 2030 from a
2020 base year.
As our infographic shows, we measure emissions across the
whole of our value chains, as well as in our direct operations.
We have established our baseline, and had it verified
independently to international standards, and it now informs our
carbon reduction efforts while enabling us to measure progress.
Working with the Energy Efficiency and Conservation Authority
(EECA) and energy consultants, DETA, we have identified 91
opportunities to reduce emissions, and these have been
modelled in terms of both capital costs as well as operational
financial effect. We can prioritise decisions on those we
implement now, and those where timing is influenced by other
considerations. This plan enables quick wins to be achieved and
longer-term opportunities to be built into business planning.
Importantly, our reduction pathway will guide decisions from the
operational level, in areas like procurement, right through to
management and board-level thinking when it comes to major
asset investments, such as our inshore and deepwater fleet.
SANFORD’S WHOLE VALUE CHAIN
EMISSIONS PROFILE – 2021
SANFORD’S OPERATIONAL
EMISSIONS PROFILE – 2021*
* Operational scope 1 and 2 emissions,
as defined by the GHG protocol
Sanford operations (inc fuel/energy use)20.5%
Creating and supplying our raw materials
(packaging, feed, PPE, contract fishers etc.) 43.5%
Customer and consumers’ use of products
(cooking, storage, waste)18.5%
Transport and freight10.7%
Energy production related (e.g. fuel production
and electricity generation by others)4.6%
Waste 1.4%
Business travel (incl. commuting)0.5%
Investments 0.3%
Use of fishmeal / fish oil by customers
(further processing)0.1%
Fishing operations and at-sea processing84.3%
Aquaculture operations7.8%
Processing and storage
(incl. purchased electricity)7.1%
Other (head office, innovation, etc.)0.8%
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD INTEGRATED REPORT 2021
Enabling Healthy Oceans and Environments
43
MATERIAL ISSUES & STRATEGIC GOALS2022 TARGETSOUR 2025 VISION
Sustainable fish stocks, marine farms
and marine conservation
Comply with all applicable laws and
regulations governing our operations,
including relevant international conventions,
recognising the importance of healthy
ocean and farming management.
Expand the application of Precision Seafood Harvesting (PSH) technology to the
include the West Coast North Island fishery. During FY22 we aim to gain
regulatory approval for, and deploy for use, PSH on our vessels within that fishery.
Sanford continues to play a key and influencing
role within the New Zealand fishing and
aquaculture industries to support the sustainable
management of fish stocks and marine farms.
Ensure full compliance to catch reporting and fisheries regulation.
Support active fisheries and marine resource management to build resilience in
fish stocks and ecosystems whilst allowing for their sustainable use.
Endangered, threatened and protected
species
Ensure protection of marine species,
including seabirds, sea lions, dolphins and
sharks, through delivering best practice
farming and fishing practices, implementing
protection measures and participating in
ongoing robust research programmes.
Maintain multi-year reduction trends (FY18:FY22) in harmful interactions between
our fisheries activities with seabirds and marine mammals through continuous
improvements, trigger levels, mitigations in operations, and targeted partnerships.
Sanford’s operations are performed with precision
and with negligible adverse impact on non-target
species and wildlife.
Complete our contribution toward the MAUI63 drone program partnership
program, supporting the field surveys, and distributing outcomes to fishing vessels
to further reduce the already low interaction risk with Māui dolphin.
Our future focus – Targets for FY22
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD INTEGRATED REPORT 2021
Enabling Healthy Oceans and Environments
44
MATERIAL ISSUES & STRATEGIC GOALS2022 TARGETSOUR 2025 VISION
Environmental Effects
Focus on having no adverse impact on the
environment when carrying out our business
operations, avoid pollution or contamination
of land, air and water and enhance the
environment in which we operate through
sound management and mitigation.
Ensure no environmental abatement notices across Sanford managed operations.
Review and further strengthen prevention and mitigation controls for
environmental spills and discharges to further reduce environmental risk
associated with these unplanned events.
Sanford’s limited impact on the environment is
aligned with best practice
Resource Utilisation and Efficiency
Do more with less by maximising efficient
use of resources and ensuring waste
minimisation, re-use and recycling.
Reduce our water use intensity by a further three percent (m
3
/GWkg) and achieve
65% waste diversion from landfill, including metals and marine.
Sanford is a responsible user of resources, and
where practicable applies renewable solutions and
circular concepts toward materials, resources, and
wastes.
Prepare and implement internal processes to ensure the systematic consideration
and evaluation of waste, water, energy, carbon efficiency in capital purchase
decisions.
Prepare and implement a sustainable procurement policy and procedures, using
our influence with suppliers to further our values, vision, and goals.
Carbon reduction
Demonstrate our commitment to climate
change responses by actively reducing
our energy consumption and emission
of greenhouse gases and seeking to
introduce low carbon solutions into
our value chain, where practicable.
Implement progress along our long-term emissions reduction pathway, targeting
a 25% absolute reduction of Scope 1 and 2 GHG emissions by 2030 from a 2020
base year. Projects for implementation during FY22 include:
• Energy efficiency and refrigerant loss prevention initiatives at processing sites,
• Targeted EV/PHEV replacements for light passenger vehicle fleet, and
• Establishing and embed internal processes, such as internal carbon pricing,
within our business planning frameworks to promote project and asset strategy
and decisions in support of a low-emissions future.
Address indirect (Scope 3) emissions by working with suppliers to embed
emissions reductions targets and initiatives. Target engagement and target setting
with top 20% of suppliers by value during FY22.
Sanford maximises the use and application of
energy conservation, efficiency, and renewable
energy sources to provide low-carbon human
nutrition and marine extracts.
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

45
Creating a Safe
and High Performing
Workplace
CAPITAL INPUTSUN SDG
1. Financial
2. Human
3. Manufactured
4. Intellectual
United Nations Sustainable
Development Goals
5. Natural
6. Social & Relationship
We strive to become an employer of choice by
delivering industry leading safety risk management,
ensuring a culture of high performance and growth
and by living our values.
CAPITAL INPUTS
1
2
3
4
5
6

SANFORD INTEGRATED REPORT 2021
Creating a Safe and High Performing Workplace
46
Material issues and value creation
This table summarises Sanford’s material issues and associated actions relating to creating a safe and high performing workplace. It includes the strategic
goals within our Business Excellence Framework, the targets we set at the commencement of year 2021, and our progress against these targets. At the end
of this section, we define our future targets for 2022 and beyond as well as our vision through to 2025.
PROGRESS AGAINST TARGETS FOR FINANCIAL YEAR 2021
MATERIAL ISSUES & STRATEGIC GOALS2021 TARGETSPROGRESS AGAINST TARGETS (FY21)
Health, Safety and Wellbeing
Through the way we work and
behave, and the initiatives we
implement to continually enhance
our work environments, we will take
all practicable steps to protect our
people from the risk of harm,
whether it be operational or
occupational injury or ill health.
Strengthen our safety culture and achieve a 5%
reduction in Total Recordable Incident Frequency
Rate (TRIFR) by:
• Aligning our Health & Safety Management
System to ISO 45001 requirements and
strengthen our critical risk management
processes;
• Extending the deployment of Health Safety and
Wellbeing (HS&W) information system to
improve capture, reporting and insights gained
from data; and
• Embedding safety walks as lead behaviour and
driver of improved HS&W performance.
Achieved. Achieved a year-on-year 8% reduction in TRIFR during FY21, continuing
a multi-year downward trend. Several projects implemented to drive HS&W
improvements and reduce risks through the establishment of multidisciplinary
Critical Risk Teams including machine guarding and earthquake strengthening. Phase
1 of the HS&W information system (Intelex) rolled out providing reliable and real
time information about HS&W events and related actions. Safety walks established
as a standard objective for all leadership personnel, implementation being monitored
via annual reviews.
IMAGE
(PAGE 45)
Te Hamana Maxwell (right) and Andrew Pye (obscured)
on board the San Granit berthed in Timaru.
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD INTEGRATED REPORT 2021
Creating a Safe and High Performing Workplace
47
MATERIAL ISSUES & STRATEGIC GOALS2021 TARGETSPROGRESS AGAINST TARGETS (FY21)
Developing Our People and
Workplace Culture
Create a high-performance culture
where every one of our people is
skilled, empowered, engaged in
contributing to the goals of the
business with pathways to support
the realisation of their full potential.
Increase engagement by two percentage points to
strengthen our workplace experience and
alignment with business goals.
Not Achieved. Workplace engagement challenged during the year as repetitive
workplace restrictions along with the business and social effects of Covid-19
lockdowns took their toll. Engagement scores varied through the year, raising up 2%
in February then landing on 76% at last survey (June), a one percentage point
increase on last year.
Develop and deploy new learning framework to
broaden our leadership and technical capabilities.
Achieved. Leadership learning framework deployed and programs underway in their
delivery. 1,469 staff training hours completed within internal training programs in
FY21.
Further strengthen the application of our
workforce planning process to support succession.
Achieved. Company workloads and essential roles mapped internally to support
workforce planning. Succession planning and identification has been undertaken.
Continue to share insights from our pulse surveys
and embed targeted action planning across the
business.
Achieved. Targeted action planning, when undertaken, continues to improve
engagement. More focus on action planning is required to leverage the insights from
each survey and deliver consistent improvement.
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD INTEGRATED REPORT 2021
Creating a Safe and High Performing Workplace
48
O
n day 91, the deadline day for the
San Granit refit, at 11.55am the last
contractor left the vessel. Five minutes
later with all checks complete, she sailed
for the fishing grounds.
On just the second post-refit voyage
the vessel caught and processed a record,
32 plus tonne of frozen hoki product in a
single day. This achievement came down
to the crew and their efficiency, working
with the new plant, streamlining product
going through the factory and focusing
on safety and quality.
The San Granit refit –
delivering a better
on-water workplace
ABOVE Andrew Pye, Deepwater Fleet Vessel Manager
There were days I honestly thought this
project would not happen – let alone on
time and within the budget. The original
budget was $14.4 million including a 20%
contingency. We came in at $11.8 million,
so we used 10% of the contingency.
That’s an excellent result given the curve
balls from Covid-19 and the ones the
vessel threw at us. San Granit, though
she’s regularly maintained, is 32 years old,
so there was emergent work including
some, like corrosion, that we could not
foresee until she was out of the water.
We got there with good people, good
communications, problem solving and
very hard work.
Andrew Pye is a Sanford Deepwater Fleet Vessel Manager, based in Timaru.
He has been in this role since May 2019. In 2021, he was the Vessel Manager for the
San Granit, Sanford’s largest deepwater vessel, during its five yearly survey and refit,
a project delivered on time and within budget by the refit team and San Granit crew.
Here’s the project’s progress in Andrew’s own words.
A PERSONAL VIEW OF 2021
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

Creating a Safe and High Performing Workplace
SANFORD INTEGRATED REPORT 2021
49
We had vessel crew from all over
New Zealand and contractors from
Timaru, Lyttleton, Christchurch, Auckland
and Nelson on the project. Across the
various crews, we worked tens of
thousands of hours, seven days a week
for 12 weeks straight. The vessel safety
officers issued 1015 permits to work and
over 2500 individual jobs were completed.
These big projects are carefully planned
12-16 months ahead. You build in for
contingencies, but we had not even heard
of Covid-19 then. Everything changed.
Shipping times for freight tripled, the cost
of products like steel doubled and we had
to make quick calls. With our German
fishmeal plant supplier locked down for
six weeks, there were inevitable delays.
We had 12 hours to decide whether to
airfreight the plant, which was more
expensive, or go by sea. Luckily, we chose
air, because in March the Suez Canal was
blocked by the Ever Given and our
shipment would have been caught up in
the disruption. Plan B was temporarily
refitting the old plant.
There is probably not a single part of
the vessel that was untouched. The initial
work focused on stripping out parts of
the vessel, such as sweep and trawl
winches, low pressure hydraulic pipes,
communication gear, satellite domes
and radar for repair or replacement.
We blasted, chipped and scraped off 25
tonnes of paint and reapplied 11 tonnes.
Week 12 saw sea trials off Banks Peninsula,
including a power trial of the main engine
and commissioning of the upgraded 25
tonne a day freshwater maker. Tests were
also completed for class certification.
San Granit was good to go.
None of this would have happened
without a great team. Our guys have so
much pride in the vessel. They wanted the
refit to be a success and they worked in
rotations for three months straight with
smiles on their faces. You can have the
best boat in the world, but it’s worth
nothing without the crew to run it. I want
to make a special mention to Tim Clubb
(project manager), Murray Stark (head
vessel safety officer), Nathen Berkahn
and Jason Burns (San Granit vessel safety
officers and first mates), Mark Davies
(San Granit engineering coordinator) and
The trawl ramp and trawl lane were
repaired and upgraded. A new generator
was fitted. The main engine was fully
stripped and rebuilt over 40 days. An
upgraded freshwater generator and an
upgraded oily water separator was fitted,
and the new fishmeal plant was fitted with
the addition of fish oil extraction.
There was so much more. The rudder,
prop and shaft were removed, checked,
fixed and reinstalled, along with the
chains and anchors.
Three truck and trailers of fishing gear
were brought on board and new main
trawl wire was wound onto the winches to
prepare the vessel for a return to fishing
operations.
WATCH VIDEO
San Grant refit
https://youtu.be/d0BxnUDFd-Q
Phil Merson (meal plant project manager).
Without their hard work and dedication,
I’d have even more grey hair than I do
now! And a thank you to everyone
involved, our contractors; the San Granit
leadership team and deepwater fleet
team. Had it not been for them this
hugely complex drydocking would not
have come together as safely and timely
as it did.
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

SANFORD INTEGRATED REPORT 2021
Creating a Safe and High Performing Workplace
50
FISHING AND
REFITS – A TALE
OF LOGISTICS
“Constantly adjusting”.
That’s GM Fishing Colin Williams’
two-word summary of a year in
which flexibility was key to a
significant majority of fish being
delivered on plan.
REMEMBERING
STEFFAN STEWART
The crew’s role in the 12-week refit
was a task they approached with
determination and pride in the
vessel. Their work touched virtually
everything on board, except a
plaque commemorating the
accidental death of crewmate
Steffan Stewart in November 2018.
He is still deeply missed.
In September 2021, Sanford was fined
$375,000 and ordered to pay $121,860
in reparation to Steffan’s family, and
$35,000 in costs to the prosecutor.
We had previously pleaded guilty to
one charge under the Health and
Safety at Work Act of failing to ensure
as far as reasonably practicable the
safety of workers on the vessel.
We accept the Court’s decision and
recognise that no legal decision and no
amount of money will ever make up for
the shock and trauma of the loss
suffered by Steffan’s whanau. He was a
much-loved son, brother, grandson and
friend. We know Steffan really enjoyed
being at sea and it is tragic that that is
where he lost his life.
We are deeply sorry about what
happened, and Sanford accepts
responsibility for the tragedy. We keep
Steffan’s death and the pain borne by
his family uppermost in our minds as
we work continuously to create the
safest possible working environments
across Sanford.
Steffan Stewart
1992 – 2018
With fickle supply chain schedules, he and
his team became adept at adjusting
landing times to best align with freight
capacity.
Delivery to plan is an achievement in any
year. Delivering to plan and under budget
is a case study in logistics and continuous
improvement, given eight vessels were
progressively held in port in a work
programme covering seven five-yearly
surveys and one interim survey. This
included the San Granit, the San Aotea,
San Tangaroa, Venture K, San Rakaia and
Tengawai, which were all dry docked or
ABOVE Marlin Moka, San Granit Baader Technician.
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE

Creating a Safe and High Performing Workplace
SANFORD INTEGRATED REPORT 2021
51
slipped for surveys, refits and
refurbishments, with safety upgrades to
meet AS/NZ 4024 standards to further
protect crews. The San Enterprise also
docked for a boiler upgrade and San
Tongariro for a winch control package
upgrade. Delivering the work, worth a
total of $16.7 million, while keeping the
fish flowing, was all about planning.
“Survey windows are predetermined five
years out and interim surveys two to
three years out. New Zealand has only two
dry docks and the Navy has priority with
one, so bookings must be pencilled in
three years out. Some parts and
Deepwater Fleet Manager, Darryn Shaw
says those heroes include crews who have
also been constantly adjusting to different
working environments.
Safety upgrades have involved the
fitting of specialised machine guarding
to filleting, head and skinning machines,
factory conveyors, freezer elevator lifts
and the installation of more sophisticated
emergency stops and deenergising
systems.
“The crews all contributed to the design
of these changes, bringing their
experience and observations to the table.
We’re working with the crews to get the
ergonomics right, because even
something small can make a big
difference in the way they work. It is
important these safety improvements are
easy to use and maintain and also assist
productivity. So, it is a very open, very
inclusive programme of work, getting it
right, looking at any near misses,
constantly assessing risks and adjusting.
The crew is very much part of getting
this right.”
The crews all contributed to
the design of these changes,
bringing their experience and
observations to the table. We’re
working with the crews to get
the ergonomics right, because
even something small can make
a big difference in the way
they work. It is important these
safety improvements are easy
to use and maintain and also
assist productivity...
—
Darryn Shaw
DEEPWATER FLEET MANAGER
equipment, such as the new boiler, require
long lead times for delivery and Covid
further complicated this,” says Colin.
“Planning for this combination of vessels
was a real team effort involving managers,
engineering managers and in house
project managers. The stand-out is all
these projects have run on time and on
budget. Much of the work was also
undertaken during changing Covid-19
Alert Level restrictions, with vessels out
of action for four to six weeks on average.
There’s a lot of heroes involved in getting
all that work done.”
ABOVE Colin Williams, GM Fishing.
CONTENTS1. SANFORD AND
OUR OPERATIONS
2. REPORTING
WHAT MATTERS
3. CHAPTERS: OUR FIVE
PERFORMANCE OUTCOMES
4. GOVERNANCE
AND FINANCIALS
5. APPENDICES
AND REFERENCE