Seeka Annual Shareholders Meeting Presentation

Annual Shareholder Meeting
12 April 2019

2
Agenda
1. Directors and proxies2. Chairman’s introduction3. Chief executive's report4. Resolutions5. General business

3
Directors
Amiel Diaz
Marty BrickJohn BurkeRatahi CrossCecilia Tarrant
Ashley Waugh
Chair Audit and Risk Committee
Fred Hutchings
Chairman

4
ProxiesChair
5,415,517
New Zealand Shareholders Association
351,617
Jay Jay Van Eden
33,765
Total
5,800,899

Chairman’s Introduction
Fred Hutchings

6
2018 a busy year for SeekaFinancial highlightsStrategic investmentsCapital rebalancing and management
Introduction
Strategy and Governance
are important pillars
of the Board’s role at Seeka

7
31.4m kiwifruit trays handled and packed in New Zea
land
Kerikeri packhouse and orchardsSecurity of fruit supplyPackhouse refurbishment and extensionsCapital raiseDNFCRetail service businessChallenging conditions in AustraliaSecuring labour
Avocado pre<clearance changes
Busy year in 2018

8
$204m revenue – up 9%$26.2m EBITDA – up 13%$7.4m net profit after tax – up 27%$270m total assets – up 22%$79.1m net bank debt – down 5%
Financial highlightsYear ended 31 December 2018

9
Purchase of T&G Northland post harvest and kiwifruit rela
ted orchards
▪
Subsequent sell down, term supply commitment
▪
Gain on sale over holding costs
2<year investment in core kiwifruit business
▪
Oakside
$ 18.6m
▪
Kerikeri
$ 17.6m
▪
Aongatete
$ 25.0m
Balanced packing and coolstore operations
▪
Peninsula, Main Road, KKP have all had major upgrad
es in packing and coolstorage
Plastic bins
▪
Higher input costs, better fruit performance, benef
its over time
Strategic investments
Adding value for shareholders
Seeka expects to have balanced capacity in New Zeal
and for the next 3 seasons

10
Investment in long term leases in New Zealand
▪
42 hectares kiwifruit
▪
7 hectares Hass avocados
▪
6 hectares Gem avocados
VLS LabInvestment in developing new orchards in Australia
▪
53 hectares kiwifruit
▪
29 hectares pears
Strategic investmentsFor longer term growth
The Board continues to invest in Seeka’s core business

11
$79.1m
$53.2m
$25.9m
Seeka’s disciplined approach to debtSeeka’s target range is net debt between 1.5 to 2.5 x
EBITDA
December
2018
Adjusted
December 2018
Orchard sales
at fair value
2
x
Debt to
EBITDA
Seeka held for sale $25.9m in Northland orchards at
fair value ( at cost )
3
x
Debt to
EBITDA
Net debt

Chief executive’s report
Michael Franks

13
Seeka safetyKeeping our people safe
2018 safety measure
Target
Actuals
Total recordable injury frequency rateNumber of injuries per 200,000 hours worked
Less than 4.6
4.5
Notifiable incidents
1
0
Notifiable injury
0
0
Severity rate
Average number of days an injured person is away fr
om work
Less than 3.6
4.5

14
Four operating segmentsExpanding along the value chain and into Australia
Orcharding, NZGrowing kiwifruit, avocado and kiwiberry< Crop procurement< Largest kiwifruit grower
Post harvest, NZPicking, packing and coolstoring fruit< Core operation< 20% of NZ kiwifruit crop
Retail services, NZMarketing produce in NZ and Australia< Adding value < Manufacturing new products
Seeka AustraliaOwn orchards plus post harvest facilities< Geographical expansion< Developing capacity
$237m
Operating
assets
$204m
Operating
revenue
Post harvest
61%
Orcharding
26%
Post harvest
61%
Orcharding
15%
Retail
6%
Seeka
Australia
7%
Seeka
Australia
21%
Retail 3%

15
NZDm
2017
2018
Turnover / revenue
$ 48.6
$ 52.8
EBITDA
$ 6.4
$ 3.4
Millions of trays¹Hayward (green)
5.9
7.6
SunGold
2.6
3.1
Total
8.5
10.7
$3.4m EBITDA
▪
Down 46% on FY17
▪
End of 11 hectares of long term leases
▪
Recovery in Hayward yields
▪
SunGold progressing to full production
▪
Investing in 55 hectares of new long term leases
10.7m trays kiwifruit grown(37.9m kilograms)¹0.039m trays avocado(0.21m kilograms)
Orchard operations36% of kiwifruit post harvest volume is grown by Seeka
1. Kiwifruit volumes exclude crop from T&G acquisition or
chards, acquired crop off.
5.9
7.6
2.6
3.1
8.5
10.7
2017
2018
NZ kiwifruit grownMillions of class 1 trays
HaywardSunGold

16
$32.1m EBITDA
▪
Up 46% on FY17
31.4m kiwifruit trays processed
▪
Up 23%
T&G Kerikeri post harvest facility
▪
Acquired and integrated April 2018
Post harvest operationsGenerating 61% of Group revenue
NZDm
2017
2018
Turnover / revenue
$ 96.7
$ 123.8
EBITDA
$ 22.0
$ 32.1
Millions of traysHayward (green)
class1
15.6
19.2
SunGold
class 1
8.7
10.8
Class 2 and other
1.4
1.4
Total
25.7
31.4
15.6
19.2
8.7
10.8
25.7
31.4
2017
2018
NZ kiwifruit processedMillions of trays
HaywardSunGoldClass 2

17
$1.6m EBITDA
▪
Down 44% on FY17
Imported banana business performed below FY17
Avocado
▪
A challenging year
▪
New phytosanitary protocols agreed with Australia
▪
China market opened FY18
Delicious Nutritious Food Company increased earnings to $0.47m
▪
Up 58% on FY17
Retail services operationsCapturing value from fruit retailing and processing
NZDm
2017
2018
Turnover
$ 54.2
$ 39.9
Revenue
$ 24.3
$ 11.5
EBITDA
$ 2.9
$ 1.6

18
2,982
1,201
854
727
2,570
1,250
1,138
690
Kiwifruit
Nashi
Packham
Other
2017
2018
$(0.1)m EBITDA
▪
Down 103% on FY17
▪
Challenging growing season
▪
Australian management restructured
Psa<V detected October 2018
▪
4.5 hectares of developing orchards
▪
Containment strategy
▪
Negative $500k impact
▪
Revised variety development plan
▪
Delays full production by 12+ months
Investing in new orchards
▪
82 hectares in development
▪
40% increase in productive land
Australian operations
Integrated orchard to market
NZDm
2017
2018
Revenue
$ 16.5
$ 14.9
EBITDA
$ 2.3
$(0.1)
Australian<grown fruit
Tonnes

19
1.
Rights issue November 2018
▪
$47.9m raised (after costs)
▪
11.7m new shares issued
▪
29.3m shares on issue
▪
Institutions and large individual investors now on share register
▪
Share liquidity up
▪
Foreign ownership reduced from 24.9% to 15% (approx)
2.
Grower loyalty share scheme March 2019
▪
2.1m shares issued (Seeka and Aongatete)
3.
Employee share scheme March 2019
▪
0.5m shares issued
Capital strategyProviding funds for growth, strengthening the balan
ce sheet and balancing debt
Grower scheme
Rights
issue
17.5
17.5
29.3
11.7
2.1
17.5
29.3
31.9
2017
2018
2019
Seeka sharesMillions
Employee scheme
+0.1m dividendreinvestment plan

20
$7.0m sold FY18
▪
$0.6m gain
$25.9m settled or agreed FY19
▪
$4.2m gain
Remainder being marketed for sale
Northland orchard salesSales process continues

21
EBITDA range 2019 $36.5m < $37.5m
▪
Previous guidance
$27.5m < $28.5m
Due to
1.
Northland orchard sales
2.
NZ IFRS 16 leasing changes
Guidance for financial year 2019
1. Assumes all orchard sales completed in 2019
EBITDA
▲
$ 5.6 m
Depreciation and interest
▲
$(7.1)m
Net impact
▼
$ 1.5 m
Gross sales
$ 25.9 m
Gain on sale
1
▲
$ 4.2 m
EBITDANZDm
37.5
26.2
36.5
2018
Actual
2019
Guidance
Early guidance: Subject to harvest volumes in New Zeala
nd and Australia, excludes Aongatete
Guidance range

22
Integrated orcharding and post harvest business
▪
Adds coolstores north of the Port of
Tauranga
▪
Adds 4m to 4.5m trays to 2019 volumes
$3.5m to $4.5m to EBITDA from FY20$25m purchase
▪
Subject to adjustments
Settled Monday 18 MarchGrowers offered new Seeka share scheme
▪
Same terms as Seeka scheme
Current guidance excludes this purchase
Purchase of Aongatete Coolstores LimitedContinuing our heartland growth strategy
Main Road
Aongatete
Huka Pak

23
Seeka app
▪
Realtime access to grower data
▪
Faster decision making
▪
Transparency and accountability
VLS lab
▪
System upgrade
▪
Competition in the maturity testing service
▪
Benefit to all stakeholders
Orchard syndication
▪
Preparing quality orchards for syndicate ownership
▪
Secures long<term supply to post harvest
Delivering on innovation Better services, smarter systems

24
Kiwifruit volumes growing strongly
▪
Strong global demand
▪
Seeka had 20% market share of New Zealand industry FY18
▪
Benefit from higher volumes
▪
New plantings in Australia
Export value of NZ avocados growing strongly
▪
Northland provides base for growth
Invested in post harvest capacity
▪
$100m over the last 5 years
▪
Prepared for growth
Operating in a growth industryInvestments made in post harvest capacity and systems
0m
50m
100m150m200m
250m
2013 2015 2017 2019 2021 2023 2025 2027
Green kiwifruit
Gold kiwifruit
New Zealand kiwifruit exportsMillions of class 1 trays
Zespri forecast
1
Actual
1. Zespri 5 year outlook, November 2017

Questions
Fred Hutchings

Resolutions
Ashley Waugh and Fred Hutchings
ALL VOTES TO BE BY POLL

27
To receive, consider and adopt the Annual Report of See
ka and the
Financial Statements for the year ended 31 December 20
18
together with the Auditor’s Report thereon.
Resolution 1Ordinary resolution

28
Director elections
▪
2 directors standing for re<election
▪
Board supports the candidates for re<election
Resolution 2Ordinary resolution

29
2a. To re<elect Amiel Diaz as a Director.
Amiel Diaz to address the meeting
3 minutes to address the meeting
Resolution 2a

30
2b. To re<elect Fred Hutchings as a Director.
Fred Hutchings to address the meeting
3 minutes to address the meeting
Resolution 2b

31
That the existing constitution of the Company is revoked,
and the
constitution tabled at the meeting, and referred to i
n the explanatory
note on page 7, is adopted as the constitution of the C
ompany.
Resolution 3Special resolution – must be passed by a 75% majority

32
NZX has introduced new listing rulesTo comply Seeka must amend its constitutionMain changes
▪
Directors must seek re<election at least by every t
hird ASM
▪
Voting at shareholding meetings to be by poll
▪
Proxies to be lodged not later than 48 hours before
a shareholder meeting
▪
Clause on shareholder approval for increase in cont
rol by parties no longer
applies


Seeka is governed by the Takeovers Code
Resolution 3Explanatory summary

33
To record the re<appointment of PwC (PricewaterhouseCo
opers) as
auditor of the Company and to authorise the Directors
to fix the
remuneration of the auditor for the coming year.
Resolution 4Ordinary resolution

34
Directors
▪
For diligent attention to the company
Management and staff
▪
For an excellent year
Growers and contractors
▪
For ongoing support
Customers and consumers
▪
For buying our produce
Shareholders
▪
For continuing interest in the company
My thanks

35
General business

END