Sanford Limited · NZX:SAN
Sanford — Shareholder Meeting (2022)
42 slides from Sanford's shareholder meeting presentation, 2022
Slide 1: Sanford Annual Shareholder Meeting 2022
SANFORD ANNUAL SHAREHOLDER MEETING 2022 1
Slide 2: 2022 Annual Shareholder Meeting
2022 ANNUAL SHAREHOLDER MEETING
Slide 3: Sanford Directors
SANFORD DIRECTORS Sir Robert McLeod Mark Cairns Peter Cullinane Craig Ellison Abby Foote Peter Kean Fiona Mackenzie David Mair SS SANFORD
Slide 4: Chair Presentation – Sir Robert McLeod
2022 ANNUAL SHAREHOLDER MEETING CHAIR PRESENTATION – SIR ROBERT McLEOD
Slide 5: Sanford 2022
SANFORD 2022 • A challenging year • Focus on financial performance • Covid impacts continued 5
Slide 6: Priorities Delivered
PRIORITIES DELIVERED • 2022 Priorities: rebuild mussel profitability, grow opportunities in wildcatch and retain salmon profitability • Growth slowed by clogging of supply chains and labour constraints • Adjusted EBIT of $40.2m (up 72.5% versus FY21) • Dividend payments have recommenced 6
Slide 7: FY22 Revenues Reflect Improved Demand
FY22 REVENUES REFLECT IMPROVED DEMAND Revenue Adjusted EBIT1 $531.9M $40.2M +8.6% +72.5% NPAT Final Dividend $55.8M 10CPS up 3.4 times +10 cents 1. See Appendix of 2022 Annual Report for Adjusted EBIT and Adjusted EBITDA reconciliation to GAAP Reported NPAT of $55.8m Note: Comparative period above i
Slide 8: Improving Profitability
IMPROVING PROFITABILITY • Improved profitability the pathway to growing shareholder value • Sanford a multi-product business • Tailored business models required • Continue to supplement commodity business with speciality products • Diversity part of strategy 8
Slide 9: Aquaculture
AQUACULTURE • Growing size of salmon farm • Working on development of RAS hatchery • New farming technologies • Building demand for BGB brand • Mussel technology • New Bioactives centre 9
Slide 10: Investing in Wildcatch
INVESTING IN WILDCATCH • Growth and profitability targeted through operational efficiencies • Scampi investment, $30 million in new vessel • Upgrading and improving efficiency and environmental performance of fleet 10
Slide 11: 11
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Slide 12: Thank You
SS SANFORD THANK YOU
Slide 13: CEO Presentation – Peter Reidie
2022 ANNUAL SHAREHOLDER MEETING CEO PRESENTATION – PETER REIDIE
Slide 14: Sanford in 2022
SANFORD IN 2022 Covid-19 challenges continued Return to growth Good performance in volume and margin in all international markets Resumption of dividend payment 14
Slide 15: FY22 Results Snapshot
FY22 RESULTS SNAPSHOT Positive gains on prior Covid-impacted period Catch/Harvest Volume Sales Volume Revenue Adjusted EBIT1 109.4k GWT 104.7k GWT $531.9M $40.2M -2.2% - 7.7% +8.6% +72.5% EBIT GW kg Adjusted EBITDA1 NPAT EPS Final Dividend 38₵ $68.3M $55.8M 60CPS 10CPS + 17₵ /kg + 29.8% up 3.4 times
Slide 16: Significant Earnings Improvement, Arresting Covid Decline
SIGNIFICANT EARNINGS IMPROVEMENT, ARRESTING COVID DECLINE Adjusted EBIT by Financial Year 80 64.7 64.8 60 -41% Adjusted EBIT $m 40.2 40 38.3 -39% 73% 23.3 20 0 FY18 FY19 FY20 FY21 FY22 16
Slide 17: Sanford FY22 Challenges
SANFORD FY22 CHALLENGES • Increased costs across most of the business, including fuel, feed, freight, compliance costs and payroll • Covid impact on our staff • Labour shortages continue hindering production and thus growth • Loss of toothfish with no access to the South Georgia fishery in 2022 • Mo
Slide 18: Sanford FY22 Achievements
SANFORD FY22 ACHIEVEMENTS • Improved profit performance • Price improvement and increased margins • Reduced debt levels and improved operating cashflows • Investment in growth initiatives aligned to strategy • Growth of Big Glory Bay branded product • Sanford Bioactives centre build complete • Impro
Slide 19: FY22 Business Planning Framework – Strategy on a Page
FY22 BUSINESS PLANNING FRAMEWORK – STRATEGY ON A PAGE
Slide 20: ESG Embedded in Strategy
ENVIRONMENTAL, SOCIAL, GOVERNANCE (ESG) EMBEDDED IN STRATEGY ESG Framework • Our whole of business Sustainability approach has five pillars • The five pillars represent • Healthy oceans and ecosystems • Achieving operational excellence • Customer relationships • Our people – their welfare and wellbe
Slide 21: ESG - FY22 Highlights
ESG - FY22 HIGHLIGHTS1 Climate • Progress on efficiency projects for our emissions intensive assets e.g. propellor replacements, engine mode controls • 7.6% reduction in scope 1 &2 carbon emissions2 Ocean and Environment • Consistent and sustained reduction in fisheries interactions with seabirds an
Slide 22: Caring for Marine Mammals
CARING FOR MARINE MAMMALS • Sanford has never harmed a Māui dolphin • We work hard to protect these and other marine mammals • We restrict our fishing and follow the rules • We support MAUI63, using an advanced drone and AI to map where Māui are 22
Slide 23: Sanford in 2023
SANFORD IN 2023 23
Slide 24: Four Strategic Priorities
FOUR STRATEGIC PRIORITIES S T R AT EG I C P R I O R I T I ES 1. Grow Salmon 2. Grow Mussels 3. Sustain Deepwater (Wildcatch) 4. Turnaround Inshore (Wildcatch) 24
Slide 25: Grow Salmon
GROW SALMON What are we doing in FY23: • Split main growing farm in Big Glory Bay and introduce modern oxygenation equipment • Launch portion control pack into Foodstuffs • Continue Big Glory Bay brand growth • RAS Hatchery consented and build started • Explore further utilisation of salmon by- prod
Slide 26: Big Glory Bay farm layout
26 . NEW GROWER FARM 1 GROWER FARM 1 4 Bs BIG GLORY BAY NEW GROWER GROWER FARM 2 FARM 2 SMOLT FARM No change in site until May 2023 s — Existing Site locations — New Site locations +++ Pens with oxygen support Il Feeding Barge SANFORD
Slide 27: Grow Mussels
GROW MUSSELS What are we doing in FY23: • Ramping up production of mussel powders and oils at our Bioactives plant • Packaging automation design and adoption • Expand SPATNZ mussel hatchery • Investment in on-water infrastructure • Take advantage of higher prices and increased mussel production • Tr
Slide 28: Sanford Bioactives
SANFORD BIOACTIVES • New marine extracts Sanford Bioactives innovation centre up and running • Build completed in September, commissioning currently underway • Site producing marine collagen, mussel powder and oil 28
Slide 29: Sustain Deepwater (Wildcatch)
SUSTAIN DEEPWATER (WILDCATCH) What are we doing in FY23 : • Further major work on four wildcatch vessels • Building of one new scampi vessel contracted • Evolution of USA market model with continuation of move to more direct customers versus wholesalers • Sanford Fishmongers brand developed into ret
Slide 30: Turnaround Inshore (Wildcatch)
TURNAROUND INSHORE (WILDCATCH) • Underperforming business that requires focus • Considering range of options to return to profitability and long term sustainability 30
Slide 31: New Divisional Structure
NEW DIVISIONAL STRUCTURE • A new business unit structure to be introduced in FY23 to build greater efficiency, effectiveness and profitability • Aligns structure to strategic goals • P&L accountability and balance sheet ownership across the organisation • Creates greater visibility • Increases respo
Slide 32: SanCore Update
SANCORE UPDATE • SanCore is our systems change process • $30 million total project spend to date • Due for completion in May 2023 • Complete replacement of supply chain, finance, quota management, payroll and incident reporting systems 32
Slide 33: Conclusion
CONCLUSION • 2022 a character building year • Challenges will continue in 2023 • We have a pipeline of work that will improve our performance • Strategy and structure will support delivery • We thank our Board, our people and our investors 33
Slide 34: Sanford
SANFORD
Slide 35: Thank You
SANFORD THANK YOU
Slide 36: FY22 Integrated Report
FY22 INTEGRATED REPORT Sanford’s 2022 integrated Annual Report is available in the investor section of Sanford’s website 36
Slide 37: How to Participate in Virtual/Hybrid Meetings (Q&A)
HOW TO PARTICIPATE IN VIRTUAL/HYBRID MEETINGS (Q&A) Shareholder & Proxyholder Q&A Participation Written Questions: Questions may be submitted ahead of the meeting. If you have a question to submit during the live meeting, please select the Q&A tab on the right half of your screen at anytime. Type yo
Slide 38: How to Participate in Virtual/Hybrid Meetings (Voting)
HOW TO PARTICIPATE IN VIRTUAL/HYBRID MEETINGS (VOTING) Shareholder & Proxyholder Voting Once the voting has been opened, the resolutions and voting options will allow voting. To vote, simply click on the Vote tab, and select your voting direction from the options shown on the screen. You can vote fo
Slide 39: Undirected Proxies
UNDIRECTED PROXIES The Board holds undirected proxies: • With respect to Resolution 2, election of Mr David Mair: 60,515 shares • With respect to Resolution 3, fixing of auditor’s fees and expenses: 60,515 shares 39
Slide 40: Sanford Director Election: David Mair
SANFORD DIRECTOR ELECTION David Mair 40
Slide 41: Sanford Annual Shareholder Meeting 2022
SANFORD ANNUAL SHAREHOLDER MEETING 2022 41
Slide 42: FY22 Integrated Report
FY22 INTEGRATED REPORT Sanford’s 2022 integrated Annual Report is available in the investor section of Sanford’s website 42