2013 Annual Results Presentation Oceana Group 2013 annual results - PowerPoint PPT Presentation

2013 annual results presentation 2013 Annual Results Presentation Oceana Group 2013 annual results presentation

Agenda Group Overview Financial Operational & Review Review Results Summary Oceana Group 2013 annual results presentation

The Oceana Group … is the largest Incorporated in 1918 fishing company in Important provider of food security with a significant Africa and is listed on protein footprint in Africa both the 3,706 Employees of which 3,275 are directly employed Johannesburg and Namibian stock Level 2 B-BBEE contributor, rated 2 nd most empowered exchanges… company in SA (M&G) 3m Lucky Star servings per day in Africa 1.4m estimated servings of horse mackerel per day in Africa Trade over 250,000 tons of product each year Oceana Group 2013 annual results presentation Oceana Group 2013 annual results presentation

Group overview Oceana Group 2013 annual results presentation

Group overview: revenue & profit splits 5 Year average 13% 7% 35% 30% 55% 48% 8% 5% Operating profit Revenue Canned fish Lobster, squid Horse mackerel CCS & fishmeal & french fries & hake Oceana Group 2013 annual results presentation

2013 Performance  Overall group shows good growth despite tough trading conditions in H2  Significant growth in Horse Mackerel and Hake  Bolstered by solid performances in Lobster and CCS  Offset by profit decline in Canned fish and Fishmeal  Results influenced by:  SA protein consumption decline in H2  Destocking of canned fish by major trade customers  Industrial fish landings lowest in decades  Weaker R/$ exchange rate  Impact of share price on accounting results  Solid base for good growth into 2014 Oceana Group 2013 annual results presentation

Financials Group Revenue ZAR'm 4 997 CAGR 11% 4 648 3 657 8% 3 423 3 301 2009 2010 2011 2012 2013 487.9 CAGR 15% 455.7 HEPS (cents) 333.6 315.2 279.4 7% 2009 2010 2011 2012 2013 Oceana Group 2013 annual results presentation

Agenda Group Overview Financial Operational & Review Review Results Summary Oceana Group 2013 annual results presentation

Summary  Earnings growth shows benefit of diversified portfolio  Revenue growth in all four business units  Profitability impacted primarily by volumes  Share price has significant impact on income statement  Financial position remains strong  Working capital impacted in the short term  Retained dividend cover Oceana Group 2013 annual results presentation

Financial review Group income statement 2013 2012 R’000 R’000 % Revenue 4 997 354 4 647 951 8% Gross profit 1 948 132 1 772 186 10% GP margin 39.0% 38.1% 2% Operating profit 748 679 711 025 5% Operating profit margin 15.0% 15.3% -2% Net financing costs (10 282) (3 108) Headline earnings 489 325 456 158 7% HEPS (cents) 488 456 7% Oceana Group 2013 annual results presentation

Group revenue: movement 46 24 205 74 4 997 Increase 4 648 September 2012 Canned fish and Horse mackerel Lobster, squid, CCS September 2013 fishmeal and hake french fries Oceana Group 2013 annual results presentation

Group revenue: contribution 5000 Rm's 7% 4500 7% 4000 6 % 8% 3500 6% 33% 7% 8% 3000 9% 31% 32% 2500 27% 2000 1500 58% 54% 56% 53% 1000 500 0 2009 2010 2011 2012 2013 Canned fish and fishmeal Horse mackerel and hake LSF CCS Oceana Group 2013 annual results presentation

egional Group revenue: regional 6% 4% 20% 1% 69% Oceana Group 2013 annual results presentation

Group operating profit: movement R'm 17 126 99 6 749 711 September 2012 Canned fish and Horse Mackerel & Lobster, Squid & Fries CCS September 2013 fismeal Hake Increase Decrease Oceana Group 2013 annual results presentation

Group operating profit: contribution Rm's 700 11% 600 9% 500 10% 16% 400 42% 56% 300 53% 41% 200 100 38% 34% 45% 29% 0 2009 2010 2011 2012 2013 Canned fish & fishmeal Horse mackerel & hake Lobster, squid, french fries CCS Logistics Oceana Group 2013 annual results presentation

Group volume & price analysis 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 2009 2010 2011 2012 2013 -5% Sales volumes SP per ton CP per ton Oceana Group 2013 annual results presentation

Share price & share costs effect Share based costs of R152.4m for F’13 (F’12: R75m): 56% increase in share price Oceana Group 2013 annual results presentation

Financial position Group financial position 2013 2012 R’000 R’000 R500 m increase in Property, plant and equipment 473 821 435 850 inventory of Intangible assets 102 802 88 638 canned fish Deferred taxation 30 360 23 187 Investments and loans 118 424 142 940 Current assets 2 046 182 1 601 935 Stock days 127 90 Net cash - 231 604 2 771 589 2 524 154 Total assets R400 m movement in cash balances Shareholders interest 1 789 375 1 633 242 Deferred taxation 39 797 41 843 Other liabilities 772 441 849 069 Net overdrafts 169 976 - Total equity and liabilities 2 771 589 2 524 154 Oceana Group 2013 annual results presentation

Return on equity and net assets 45% 41% 38% 39% 37% 31% 30% 27% 27% 26% 2009 2010 2011 2012 2013 Return on net assets Return on shareholders funds Oceana Group 2013 annual results presentation

Headline earnings and dividends 488 456 334 322 315 301 279 220 208 184 2009 2010 2011 2012 2013 1.5 times dividend cover HEPS DPS Oceana Group 2013 annual results presentation

Agenda Group Overview Financial Operational & Review Review Results Summary Oceana Group 2013 annual results presentation

Operational review: Canned fish and fishmeal

Canned fish and fishmeal: overview Catch Procurement Canned fish sales Fishmeal sales Oceana Group 2013 annual results presentation

Canned fish: performance  Sales volumes:  YOY volume decline of 1.2% - Growth of 16% in H1 offset in H2 by destocking at major customers and reduction in protein consumption patterns by consumers Oceana Group 2013 annual results presentation

Canned fish: s ales volumes 5.6m 6.0m 7.3m 8.7m 8.6m cartons cartons cartons cartons cartons 44% 50% 52% 53% 56% H2 H1 56% 50% 48% 47% 44% 2009 2010 2011 2012 2013 Oceana Group 2013 annual results presentation

Canned fish: trade destocking Canned fish stock levels  51%  50%  52%  49% Retailer A Retailer B Wholesaler A Wholesaler B March April May June July Aug Sept Oct Jan 5%, Feb 15%, Mar 16% YTD on 2012 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 2013 2012 2011 Canned fish sales volumes Oceana Group 2013 annual results presentation

Canned fish : retail protein volumes Nielsen Retail Scanning Basket Volume Growth Unit Share 12MM 6MM 3MM Protein 39.0% 0.4% -0.2% 2.3% Red Meat 11.9% 6.2% 8.5% 9.2% IQF Chicken 6.5% -1.9% -4.3% 0.5% Chilled Processed Meat 5.9% -3.9% -4.9% -3.1% Baked Beans 5.2% 5.7% 7.6% 4.4% Whole Chicken 3.2% -6.7% -8.1% -4.2% Lucky Star Pilchards 3.0% 4.1% -2.8% -6.4% All Other Pilchards 1.2% -12.4% -12.4% -5.9% Canned Meat 1.1% -5.9% -2.8% -6.1% Frozen Fish 1.1% 1.7% 0.2% -0.2% Other 33.7% 2.7% 1.8% 0.4% Carbs 27.3% -0.8% -1.3% -1.5% Grand Total 100% 0.9% 0.2% 0.3% Oceana Group 2013 annual results presentation

Canned fish: performance  Sales volumes:  YOY volume decline of 1.2% - Growth of 16% in H1 offset in H2 by destocking at major customers and reduction in protein consumption patterns by consumers  Supply  Improved catch levels and production yields in 2013  Quota • SA – 13,508 owned, 16,215 contracted (TAC 90,000t) • Namibia – 7,975 owned, 4,149 contracted (TAC 25,000t)  Further 60% sourced from 14 canneries. Increase of 10% in imported volumes to meet projected demand Oceana Group 2013 annual results presentation

Canned fish: supply analysis(cartons) 10 % growth in imports to meet projected demand 17 % growth in own production due to good catches and improved yields 6539 5922 4091 2793 3897 3577 3063 2985 2125 2074 2009 2010 2011 2012 2013 Own production Other SA Imports Oceana Group 2013 annual results presentation

Canned fish: performance  Sales volumes:  YOY volume decline of 1.2% - Growth of 16% in H1 offset in H2 by destocking at major customers and reduction in protein consumption patterns by consumers  Supply  Improved catch levels and production yields in 2013  Quota • SA – 13,508 owned, 16,215 contracted (TAC 90,000t) • Namibia – 7,975 owned, 4,149 contracted (TAC 25,000t)  Further 60% sourced from 14 canneries. Increase of 10% in imported volumes to meet projected demand  Profitability in 2013 impacted by lower volumes and weaker exchange rate Oceana Group 2013 annual results presentation

Canned fish : volumes, price and profitability 60% 50% 40% 30% 20% 10% 0% 2009 2010 2011 2012 2013 -10% -20% Sales volumes SP per ctn CP per ctn Comparatives indexed to 2009 Oceana Group 2013 annual results presentation