1 Sanfords 2019 integrated report is available at - - PowerPoint PPT Presentation
1 Sanfords 2019 integrated report is available at https://www.sanford.co.nz/investors/reports-1/company- reports/ The report outlines Sanford's Business Excellence Framework this enables each part of the business to map out its
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https://www.sanford.co.nz/investors/reports-1/company- reports/
Framework – this enables each part of the business to map out its role in helping to deliver on our goals
and welcome feedback from our stakeholders throughout the year
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¹Like for like views revenue (and gross profit) comparable to 2018 without implementing the new revenue accounting standard (NZ IFRS 15) ² See Appendix for adjusted EBIT and adjusted EBITDA reconciliation to GAAP Reported EBIT$62.6m and NPAT $41.7m *Without factors of San Granit and algal blooms, we estimate the EBIT GW kg would have been 60c ** Including gain on sale of the pelagic business of $5.1m, prior year includes earthquake insurance settlement of $6.8m
EBIT GW kg
+2c/kg
CATCH/HARVEST VOLUME
REVENUE (Like for like¹)
ADJUSTED EBIT²
Flat
EPS
NPAT
ANNUAL DIVIDEND
Stable Flat +8%
ADJUSTED EBITDA²
2%
5 5 6 5 4 2 2 8 2 3 64.7 64.8
10 20 30 40 50 60 70 80
FY18 FY Adj EBIT San Granit Outage Mussel Biotoxin Salmon Biotoxin FY18 one-off Salmon Model Adj Biological Value (in Water) Salmon margin Mussel margin (Channel) Hoki Product Cascade * Marketing & Innovation investment Opex Investment FY19 FY Adj EBIT
Key Drivers of ADJUSTED EBIT change Strategy in Action +11m Climate -4m
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Fair Value -3m One-off -4m
NZD m * Net of volume impact of industry voluntary shelving of Hoki (5,000 tonnes impact)
Operating Cash Flow
NET DEBT
TOTAL EQUITY
DEBT / EBITDA
+1% FY18 1.81x
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20 40 60 80 FY 17 FY 18 FY19
$m
* Debt/Equity Down from 7.3% RETURN ON AVERAGE TOTAL EQUITY
20 40 60 80 100 120 140 160 $0 $100 $200 $300 $400 $500 $600 2013 2014 2015 2016 2017 2018 2019 Total Sales Total Cost GW Sold NZD $m GW K Tonnes
NZD $m
AMBITION
$1 EBIT/GW KG 2023
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2014
2019
Creating value: commodity fish -> seafood -> beyond food
‹#›
BMT Strategies S&OP Processes Customer People and Culture Safety and Wellbeing Innovation Technology Marketing Communication Business Development Sustainability Operations Consumer
INVESTING INTO DEVELOPING OUR VALUE CHAIN …………………………………………………………………………………………………………………………………… TO CREATE VALUE
Business Excellence Framework
Six Outcomes driving a Sustainable Business
New York Times, 4 March 2019
People Infrastructure Climate Change Consumer Preferences & Public Perception
Business Excellence Framework
Sustainability as the Foundation
AMBITION
$1 EBIT GW kg by 2023
VISION
To be the Best Seafood Company in the World
PURPOSE
We share the natural goodness of our oceans with uncompromising care
ORGANISATIONAL CAPABIILTY OPERATIONAL EXCELLENCE INNOVATION BRANDING INVESTMENT PLAN SOCIAL LICENCE
Cross Functional Business Teams
SALMON MUSSELS FROZEN FRESH INNOVATION
Officers’ Conference
Island
Sanford and Sons at the Auckland Fish Market
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Steffan was lost in a tragic accident in November 2018 His loss has focused all at Sanford on what is truly important
We are proud users of Precision Seafood Harvesting on deepwater and inshore vessels.
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Video appears here in live presentation. Please contact Sanford to access this video. dmcintosh@sanford.co.nz
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the Auckland Fish Market
vessel surveys and safety improvements
return per kg - improved handling techniques and greater use of Precision Seafood Harvesting
barge
processes
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Wild Catch
improvements on vessels
Timaru
Mussels
strategy
Salmon
formats
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