Seeka provides analyst briefing pack

Please note: Each presentation must have the full Seeka logo on the title and closing slide and the icon-only logo on divider and content pages
ANALYST BRIEFING PACK
26 August 2019
SIX MONTHS TO 30 JUNE 2019

FINANCIAL SUMMARY
Financials 2019 vs 2018
in NZ$ millions
−Seeka operates a seasonal business, meaning the results for the first
six months may not reflect second six months.
−New NZ IFRS16 Leases accounting standard implemented.
−Comparatives restated to reflect NZ IFRS16.
JUNE 2019 INTERIM REPORT
Net profit after tax
in NZ$ millions
11.9
9.3
5.4
June 19June 18Dec 18
NZDm
June
2019
Unaudited
June
2018
Unaudited
Restated
Dec
2018
Audited
Restated
Revenue169.9145.4203.7
EBITDA27.925.731.0
NPBT16.514.18.7
NPAT11.99.35.4
2

FOCUS ON EXCELLENCE
Progressed growth strategy
Acquired a new integrated kiwifruit business, developed orchards in Australia and New Zealand and completed capital restructure.
Invested in New Zealand post harvest capacity
New Kerikeri packhouse and packing machine, machine refurbishment and coolstores at Oakside, Bay of Plenty.
After stage 2 at Kerikeri, capacity is in place for the next two seasons.
$14m Aongatete integrated kiwifruit business acquisition
Excellent location and infrastructure, innovative technology, experienced staff, loyal growers.
Northland orchard sale progress
$5.4m completed in six months releasing $1.2m gain. A further $18.7m of conditional sales will deliver a $3.1m gain.
Focus on consolidating the business
Management structure reset, Northland orchard sales process reducing debt. Australian orchard sale strategy enacted.
Select Excellence
Focus on quality, delivering a safe and excellent service to our growers and great-quality produce to our marketers, primarily Zespri.
1
2
3
4
5
3
6

EARNINGS, DEBT, AND DIVIDEND
−Capital restructure completed with grower share scheme and employee
share scheme. 91% of supplying growers are shareholders.
−Asset backing per share reflects share issue and IFRS 16
−Dividend announced, $0.12 per share to be paid on 9 October to all shareholders
on the register at 5pm 13 September. Dividend reinvestment plan with 2% discount
to strike price will apply.
JUNE 2019 INTERIM REPORT
Dividends
in cents NZ
NZD
June
2019
Unaudited
June
2018
Unaudited
Restated
Dec
2018
Audited
Restated
Basic earnings per share ($)$ 0.35$ 0.52$ 0.34
Net debt ($m)148.1116.079.1
Net tangible assets per share ($)$ 4.23$ 4.82$ 4.56
4
12
1212
Q3 FY18Q1 FY19Q3 FY19
Financials 2019 vs 2018
in NZ$

FY18 EBITDA restated for implementation of NZ IFRS 16, Leases
FULL YEAR GUIDANCE MAINTAINED
Financials 2019 vs 2018
in NZ$ millions
5
DECEMBER 2019 OUTLOOK
Forecasting full year EBITDA between $32.5m and
$33.5m
−Guidance maintained despite lower Hayward kiwifruit
volumes in New Zealand and low volumes in Australia
−Gains from asset sales, tight cost management
FY18
Full year
actuals
FY19
Guidance
Lower range
FY19
Guidance
Upper range
EBITDA31.032.533.5
Increase over FY18+ 5%+ 8%

AONGATETE ACQUISITION
$14m paid for the shares in Aongatete CoolstoresLtd
−Acquisition completed in March 2019
−Integrated kiwifruit business located in our central Bay of Plenty catchment
−Innovative company with excellent people and loyal growers
−Up to $11m debt included as part of the purchase
Increased kiwifruit handled harvest 2019
−3.9m trays packed
−Adds volumes and capacity to kiwifruit business in core location
Partial synergies realised in 2019
−Efficiencies from Seeka’s supply chain
−Synergies secured for 2020
6
2019 ACQUISITION OF AONGATETE’SORCHARDS AND POST HARVEST BUSINESS

AUSTRALIAN KIWIFRUIT ORCHARD SALES WITH SECURE SUPPLY
Testing the market to accelerate growth and repay
debt
-Second six month initiative
-Orchards now being marketed for sale with secure
supply back to Seeka
-199 hectares of land including 105 hectares of mature
and developing kiwifruit
-Testing the market for capital appreciation
7
CAN VALUE BE REALISED FROM SEEKA’S AUSTRALIAN ORCHARD PORTFOLIO?
Secure supply agreement
−Orchards to be leased back to Seeka
Realise value and reduce debt
−Funds used to repay debt and accelerate development
−Further developments underway on new orchards
New varieties under evaluation
-14 hectares of new Rico pear in development
-4 hectares of new Lanya pear in development
-Other varieties under trial

1. First season of Seeka grown ENZA Red and ENZA Gold
ORCHARDING, NEW ZEALAND
8
GROWING KIWIFRUIT, AVOCADO AND KIWIBERRY
$4.2m EBITDA
−6.7% down on the prior period
−Impact of dry summer on Hayward yields, fruit quality
and Kiwiberry
−Earnings profile changes with lower long term lease
contribution
−New volumes from Northland and Aongatete
acquisitions
Investing in long term lease arrangements
−To deliver progressive volume increase from 2020
Production
(millions of trays)
June
2019
Unaudited
June
2018
Unaudited
Restated
Dec
2018
Audited
Restated
Hayward7.17.37.6
Zespri SunGold3.93.13.1
Other0.4
1
--
Total trays11.410.410.7
Financials ($m)
Revenue48.339.052.8
EBITDA4.24.53.9

POST HARVEST, NEW ZEALAND
9
PICKING, PACKING AND COOLSTORINGFRUIT
$29.8m EBITDA
−Hayward volume well down on expectation
−Industry-wide lower yields
−EBITDA 28% up on the prior period
Invested in capacity
−Refurbished Oakside 2 machine, and building new
pre-coolers and coolstores
−Kerikeri packhouse and machine
Post harvest capacity balanced with production for
the next 2 years
Production
(millions of trays)
June
2019
Unaudited
June
2018
Unaudited
Restated
Dec
2018
Audited
Restated
Hayward17.420.119.2
Zespri SunGold14.611.010.8
Class 2 and other1.5-1.4
Total trays33.531.131.4
Financials ($m)
Revenue105.388.6123.8
EBITDA29.823.235.9

RETAIL SERVICES, NEW ZEALAND
10
MARKETING LOCAL AND IMPORTED PRODUCE
$0.8m EBITDA
−29% down on the prior period
−Reduced kiwiberry volumes
−Hail and dry summer
−Retail services business has stabilised
−Revamp of this business showing improved results
Financials ($m)
June
2019
Unaudited
June
2018
Unaudited
Restated
Dec
2018
Audited
Restated
Turnover15.715.839.9
Revenue4.86.411.5
EBITDA0.81.12.0

SEEKA AUSTRALIA
11
OWNS AUSTRALIAN ORCHARDS AND POST HARVEST FACILITIES
($0.2m) EBITDA
−Reduced volumes from a hot, dry summer
−Underperforming green nashi programme
−Crops being reset to match market demand
Invested in growth
−Orchards in development
−Testing new varieties
−Investing in water
Financials ($m)
June
2019
Unaudited
June
2018
Unaudited
Restated
Dec
2018
Audited
Restated
Revenue11.411.814.9
EBITDA(0.2)2.7(0.1)

CONTACT
For more information. Please contact:
Michael Franks Chief Executive
michael.franks@seeka.co.nz | +64 21 356 516
Stuart McKinstry Chief Financial Officer
stuart.mckinstry@seeka.co.nz | +64 21 221 5583
Nicola Neilson Group Financial Controller
nicola.neilson@seeka.co.nz | +64 21 841 606
12

seeka.co.nz
Please note: Each presentation must have the full Seeka logo on the title and closing slide and the icon-only logo on divider and content pages