Tassal Group Limited

Transcription

1 Fr persnal use nly Tassal Grup Limited UBS Emerging Cmpanies Cnference Fd & Agribusiness Mark A Ryan, Managing Directr & CEO 30 Nvember 2016

2 Fr persnal use nly Tassal has cnsistently delivered grwing returns ver the past 4 years due t fcused executin f the right strategy.

3 Fr persnal use nly Grwing key earnings metrics Operating EBITDA: $82.2m Operating NPAT: $37.9m Statutry EBITDA up 3.5% t $97.3m Statutry NPAT dwn 3.0% t $48.5m Operating Cashflw: $50.2m Ttal Dividend: 15.0 cps 3

4 Fr persnal use nly Grwing balance sheet Bilgical Assets Operatinal Return n Assets Gearing 4

5 Fr persnal use nly Envirnmental leadership Glbal best practice envirnmental returns cntinue t be delivered ASC certificatin underpins all current Salmn marine leases first Salmn cmpany glbally t achieve this Glbal number 1 ranking fr sustainability reprting fr Seafd cmpanies glbal number 1 ranking fr Salmn cmpanies as per the independent Seafdintelligence.cm Tassal awarded Cles Sustainable and Ethical excellence award in 2016 Mark Ryan awarded Banksia Fundatin Richard Pratt CEO Award fr cntributins t sustainability acrss Australia Tassal awarded Australian Business Award fr Sustainability Glbal best practice breeding prgram in place Effective adaptin f sustainability fcus & techniques with changing envirnments Cntinued fcus n fish health and perfrmance (fish safety) Cmmunity engagement t fster supprt fr grwth and flexibility f peratins Delivery supprted by best n grund peple & interdependent team 5

6 Fr persnal use nly Leadership has its challenges Tasmanian Salmn aquaculture Industry is feeling sme grwing pains & Tassal is respnding Recent ABC-TV Fur Crners dcumentary titled Big Fish fcused n Tasmanian Salmn aquaculture Industry & Tassal in particular The prgram featured an Industry that was split n grwth paths between Tassal and ur largest cmpetitr (Hun Aquaculture), with issues cvered including: envirnmental impacts f the three main Salmn farming cmpanies peratins in Macquarie Harbur n Tasmania s west cast cmmunity ppnents targeting Tassal s Okehamptn expansin n Tasmania s east cast inshre vs. ffshre lcatins fr new marine leases fr Salmn aquaculture feed and supplement regimes including Astaxanthin Success f the Industry in grwing frm nthing in the 1980 s t $690M in ttal revenues in FY16 means that greater public scrutiny is inevitable and we welcme it as an pprtunity t build further n ur sustainability fcus Tassal is respnding by a) stepping up ur perfrmance and b) better cmmunicating ur dual bjectives fr bth a sustainable Tassal and Tasmanian Salmn Industry: scientific advances t bst utput while reducing envirnmental ftprint brad-based stakehlder engagement and strng cmmunity prgrams advcating fr a state-wide planning strategy t guide Industry s future building awareness f hw we add scietal value alng ur value chain 6

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8 Fr persnal use nly Tassal s grwth strategy has evlved t build n the cmpany s key strengths, and nw encmpasses Salmn & Seafd.

9 Fr persnal use nly Strategic evlutin t Salmn and Seafd The intent underpinning ur Strategic Evlutin was t deliver sustainable lng term returns t sharehlders as the leader in Salmn and Seafd in Australia, selling highly recgnised, ethical, valued brands and prducts t Australian cnsumers and retailers while perating in a zer harm envirnment Salmn Seafd 1. Optimising the supply chain thrugh scale and natinal crdinatin f prcurement, prcessing & distributin = Imprved access & availability 2. Insights led Seafd marketing, innvatin, prduct develpment and categry management = Increased dmestic Seafd cnsumptin Imprved custmer value & strnger strategic relatinships 9

10 Fr persnal use nly Strategy: Salmn Sales: dmestic market is still fundamental, but a re-balance f the sales channel mix was required Enhanced Salmn grwing perfrmance and supply chain efficiencies will mve us clser t glbal best practice cst and underpin grwing returns Targeting glbal best practice cst frm a grwing perspective invlves ultimately mving t an average fish size f 5.00kg Hg Retail market remains an imprtant channel t prvide stability in pricing and margin, but need t cntinually assess relative channel margins Whlesale market remains an attractive channel current supply/demand dynamics favurable fr an increase in whlesale expsure Cmbined with the benefit f better matching fish supply t demand, supprts a cst reductin fcus f ur Salmn farming peratins Exprt market cnditins are presently attractive glbal supply cnstraints, increased pricing and lwer Australian dllar Prvides an pprtunity fr sales channel mix fr bigger fish size t imprve margins Fcussed n niche markets that pay a premium fr ur branding and sustainability credentials is fundamental Supply chain fcus is bth t ptimise prcessing t accunt fr channel strategy evlutin, ensure we have scalability fr Salmn grwth, and develp new supply chains int emerging markets, such as Asia 10

11 Fr persnal use nly Strategy: Seafd Prawns is a key species fr ur Seafd grwth strategy De Csti Seafds acquisitin is a key plank fr Eastern Seabard distributin f Seafd Tassal s best practice supply value chain learnings have been integrated As a result f the integratin prcess, pprtunities have emerged that will prvide additinal synergies and further increase the strategic ratinale fr the acquisitin Operatins have been restructured and aligned frm a peple, prcess, plant and equipment and prfit perspective The key utcmes have been t increase capacity and capability, while autmating and driving peratinal efficiency measures Our supply chain fcus is bth t ptimise prcessing and ensure we have scalability fr Seafd grwth Our sales fcus is t ensure that we increase margin during ur grwth phase, with the key actin items t underpin this being: Increased fcus n packaged frmats at the retail level, where cnsumer demand is rapidly increasing. We hld an infrastructure advantage in packaged prductin Direct supply fcus in the whlesale/fdservices channel, targeting wet fish shps and end users thrugh sphisticated supply chains, and technlgy Migrating frm whle fish cmmdity exprt markets int value added exprt markets 11

12 Fr persnal use nly The size f Tassal s peratins underpins ur ability t cntinue reducing perating csts and ensuring efficiencies, while being able t take advantage f changing market cnditins.

13 Fr persnal use nly Strategy Overarching strategic fcus is t deliver sustainable glbal best practice returns frm a financial, peratinal and envirnmental perspective while perating at a zer harm safety level Maintain ur glbal leading sustainability psitin (ASC & WWF-Australia) cntinue t grw ur scial licence t perate and ur scientific leadership Maintain ur glbal leading financial returns Cntinue t grw dmestic per capita cnsumptin f Salmn ptimise the sales price and mix Cntinue t drive cnsumer appeal fr Salmn and a preference fr ur brands Drive key Seafd species grwth and ur share f categry Grw ur share f the Seafd and Salmn markets within whlesale, fdservice and ingredient supply segments Grw ur share f the Seafd market in the retail segment and in particular the pre packed categry hwever, ensure that ur Salmn sales are nt t skewed t retail Deliver glbal leading peratinal returns withut diminishing financial and envirnmental returns Deliver glbal best practice cst fr grwing and supply chain fr Salmn Deliver glbal best practice supply chain efficiencies and cst fr Seafd 13

14 Fr persnal use nly Outlk FY17: psitined fr cntinued grwth Fr FY2017, targeting t take advantage f a mre favurable sales mix and pricing envirnment Favurable Salmn pricing in whlesale and exprt markets Managing sales mix t ptimise returns De Csti Seafds t drive Seafd sales and categry grwth Price increases achieved fr smked Salmn in all Retail custmers and fresh fish in selected custmers - with such price increased reflective f the increase in the cst f fish due t the summer envirnmental cnditins Fcus t ffset the increased cst f fish t be harvested in FY17 which were impacted by the summer cnditins Frm FY2017 nwards, fcus is t deliver strng gains in bimass grwth, feed cnversin and reductins in bathing fr AGD which will in turn drive perating cst efficiencies and a mve clser t glbal best practice peratinal returns frm fish perfrmance Salmn perating platfrm t deliver best practice cst f grwing and supply chain returns Cntinue t invest in a high-value, lng-term sustainable Industry fr Tasmania Strategy: set arund delivering glbal best practice peratinal, financial & envirnmental returns underpinning a best practice balanced screcard 14

15 Fr persnal use nly In summary... It s nt abut luck Sustainable grwth acrss key envirnmental and financial metrics Grwing financial returns Strategy evlving frm Salmn t Salmn & Seafd It s all abut strategy and executin Rebalancing sales channels t ptimise returns Salmn: Grwth in fish size and reduced cst tgether with ptimising sales vlume t underpin lng term returns Salmn & Seafd: Further ptimising supply value chain t drive additinal efficiencies Strng nging cmmitment t sustainable business & Industry Cntinued grwth in earnings expected 15

16 Fr persnal use nly Any questins? 16

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18 Fr persnal use nly Disclaimer This presentatin has been prepared by Tassal Grup Limited fr prfessinal investrs. The infrmatin cntained in this presentatin is fr infrmatin purpses nly and des nt cnstitute an ffer t issue, r arrange t issue, securities r ther financial prducts. The infrmatin cntained in this presentatin is nt investment r financial prduct advice and is nt intended t be used as the basis fr making an investment decisin. The presentatin has been prepared withut taking int accunt the investment bjectives, financial situatin r particular need f any particular persn. N representatin r warranty, express r implied, is made as t the fairness, accuracy, cmpleteness r crrectness f the infrmatin, pinins and cnclusins cntained in the presentatin. T the maximum extent permitted by law, nne f Tassal Grup Limited, its directrs, emplyees r agents, nr any ther persn accepts any liability, including, withut limitatin, any liability arising ut f fault. In particular, n representatin r warranty, express r implied is given as t the accuracy, cmpleteness r crrectness, likelihd f achievement r reasnableness f any frecasts, prspects r returns cntained in this presentatin nr is any bligatin assumed t update such infrmatin. Such frecasts, prspects r returns are by their nature subject t significant uncertainties and cntingencies. Befre making an investment decisin, yu shuld cnsider, with r withut the assistance f a financial adviser, whether an investment is apprpriate in light f yur particular investment needs, bjectives and financial circumstances. Past perfrmance is n guarantee f future perfrmance. The distributin f this dcument is jurisdictins utside Australia may be restricted by law. Any recipient f this dcument utside Australia must seek advice n and bserve such restrictins. 18