Tassal Group Limited. For personal use only. FY15 Results. Mark A Ryan, Managing Director & CEO Andrew Creswell, CFO.

Transcription

1 Fr persnal use nly Tassal Grup Limited FY15 Results Mark A Ryan, Managing Directr & CEO Andrew Creswell, CFO 20 August 2015

2 Fr persnal use nly FY15 Overview Tassal s strategy t grw dmestic per capita cnsumptin, with the majrity f sales in retail, cntinues t deliver sustainable, grwing returns

3 Fr persnal use nly FY15 anther year f grwth Dmestic market fcus driving cntinued earnings grwth Sustainably generating mre $ frm dmestic market sales thrugh grwing per capita cnsumptin Excellent peratinal perfrmance right acrss Tassal s supply value chain frm grwing t prcessing t lgistics/distributin mitigated negative impact f lwer whlesale and exprt prices Operating EBITDA Strng balance sheet and asset perfrmance, and grwing dividend Gearing maintained at lw level Investment in fish grwth and respnsible capital spend underpins sustainable grwing lnger term returns strng grwth in underlying fish bimass (i.e. bilgical assets) ensures fish supply and future earnings grwth Ttal dividend up 21.7% t 14.0cps (50% franked), with final dividend f 7.0cps (50% franked) Gearing (net debt/equity) Bradening f grwth strategy t Salmn and Seafd Imprves custmer value and strnger strategic relatinships: Optimising the supply value chain thrugh scale and natinal c-rdinatin f prcurement, prcessing & distributin = imprved availability Insights led Seafd marketing, innvatin and categry management = increased dmestic Salmn and Seafd cnsumptin Acquisitin f De Csti Seafds Bilgical Assets 3

4 Fr persnal use nly Strng financial perfrmance Operating earnings grwing in line with revenue Operating EBITDA Generating sustainable perating cashflw tgether with apprpriate use f funding facilities Cntinued grwth in return n assets Statutry Return n Assets Gearing Rati (net debt/equity) Funding Rati (net debt + RPF/equity) 4

5 Fr persnal use nly Zer harm N jb is s imprtant that it cannt be dne safely Health and safety strategy. has as its cre value Zer Harm Fr Everyne, Everywhere Tassal s cmmitment t safety is cnsistent with fcus n maximising sharehlder value Safety perfrmance still remains at an unacceptable level any fatality r serius injury is unacceptable Results n all previusly established lead and lag indicatrs are trending in right directin Cultural prgram prgress supprted via external survey cnfirms jurney t interdependence is n track but nt yet cmplete. Interdependence is abut engendering an I take care and I care fr apprach AS & 4801 accreditatin maintained 5

6 Fr persnal use nly Financial perfrmance Cntinued grwth in earnings, strng cashflws and balance sheet, and cntinued grwth in dividend

7 Fr persnal use nly FY15 perating NPAT Key drivers $ variance Sustainably generating mre $ FY14 Operating NPAT v FY15 Operating NPAT 7

8 Fr persnal use nly FY15 perating NPAT Key drivers $/TSV kg variance Sustainably generating apprpriate $/kg given market envirnment FY14 Operating NPAT v FY15 Operating NPAT Nte 1. Ttal Sales Vlume Hg Equivalent ( TSV ) fr FY15 is 23,144 hg tnnes (FY14: 19,268 hg tnnes) 2. $/TSV kg variance per revenue and expense item is calculated by dividing the specific revenue and expense item $ variance by TSV 8

9 Fr persnal use nly Strng cash flws Operating cash flw dwn 15.7% t $42.7m sustainable cntributin margins $/kg generated frm dmestic market sales increased investment in bth live fish and inventry t supprt future sales grwth initiatives increased investment in fish supply f $19.5m Operating cash flw Change Bilgical assets Inventry Less AASB141 Impact (21.38) Fish grwth Investing cash flw increased t $36.7m t supprt Hatchery expansin, marine and prcessing infrastructure and rendering facility 9

10 Fr persnal use nly Strng balance sheet Bilgical Assets Bilgical Assets Value f live fish up 18.1% t $222.9m (FY14: $188.8m) Bilgical assets supprt future revenue and earnings grwth Inventry Inventry Apprpriate inventry build with finished gds stck up 12.7% heading int FY16 reflective f anticipated sales grwth Gearing Gearing and funding ratis at sustainable levels Gearing up slightly t 17.6% (FY14: 15.4%) apprpriate bank funding arrangements in place frm a structure, headrm and tenr perspective Funding rati, i.e. including RPF (net debt + RPF / equity) at 34.9% (FY14: 29.1%) 10

11 Fr persnal use nly Operatinal perfrmance Well psitined t drive cntinued sustainable grwth in earnings and higher returns

12 Fr persnal use nly Cntinued grwth in revenue Ttal Revenue up 16.7% - Dmestic Revenue up 13.6% Ttal Vlume up 20.1% - Dmestic Vlume up 15.5% Dmestic market Dmestic strategy is the right strategy dmestic per capita cnsumptin cntinuing t grw Sales initiatives driving grwth Whlesale market sales were largest driver f revenue and vlume, up 33.5% and 45.8% respectively vs FY14 Retail revenue and vlume cntinued t sustainably grw at 7.7% and 6.5% respectively Retail sales as a prprtin f Tassal s verall dmestic market accunted fr 73% f revenue and 71% f vlume Exprt market Tactical management f prductin vlumes particularly big fish Pricing cnditins still vlatile despite depreciating AUD Overall Requisite fish in water as vlumes increase fr FY16 and beynd 12

13 Fr persnal use nly Sales initiatives driving grwth Retail vlume up 6.5%; revenue up 7.7% Whlesale vlume up 45.8%; revenue up 33.5% Dmestic retail sales Dmestic whlesale sales 13

14 Fr persnal use nly Strng peratinal perfrmance Optimising supply value chain t supprt grwing dmestic market demand Favurable marine perfrmance: Favurable grwing cnditins, imprved feed cnversin and survival drve perating cst efficiencies that ffset rising feed prices during FY15 feed prices have reduced frm 1 July 2015 Selective Breeding Prgram cntinues t deliver a reductin in grwing time and bathing fr AGD Primary harvest class fish fr FY16 had 7.9% mre bimass at sea vs FY15 harvest class at 30 June despite supplying an additinal 16.0% t the sales market fr perid May-June 2015 frm the primary harvest class f fish destined fr FY16 relative t same perid a year earlier. Illustrates that we were able t sustainably pull frward fish harvesting. Favurable prcessing perfrmance: Efficiency prjects implemented acrss all prcessing sites fcusing n yield and thrughput initiatives full benefits frm these prjects t flw thrugh in FY16 Optimising entire supply value chain Significant wrk has been undertaken with respect t supply value chain efficiencies, culminating in acquisitin f De Csti Seafds De Csti Seafds will deliver imprved Salmn efficiencies and synergies in FY16 Seafd supply value chain efficiencies thrugh the effective c-rdinatin and prductin f lng run, sustainable aquaculture and wild fish supply and drive further ecnmies f scale 14

15 Fr persnal use nly Strategic pririties and utlk Salmn and Seafd Strategy t drive next phase f earnings grwth and maximise sharehlder value

16 Fr persnal use nly Strategic evlutin t Seafd Strategic evlutin: 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 value chain thrugh scale and natinal crdinatin f prcurement, prcessing & distributin = Imprved availability 2. Insights led Seafd marketing, innvatin and categry management = Increased dmestic Seafd cnsumptin Imprved custmer value & strnger strategic relatinships 16

17 Fr persnal use nly Acquisitin ratinale De Csti Seafds accelerates Tassal s Seafd strategy and delivers synergies Cmbining Market Leaders De Csti is already ne f the largest seafd prcessrs in Australia, enabling Tassal with an accelerated strategy evlutin t Seafd Leverage Tassal and De Csti relatinships in all channels Vertical Integratin Tassal is vertically integrated De Csti enhances this De Csti is a supplier t Tassal majr custmers, and has been a significant Tassal custmer fr many years Strategic alignment in retail capability, and similar verall channel mix Leverage capabilities Lw cst thrugh scale De Csti seafd prcurement relatinships & capabilities fr Seafd which is IP with significant value De Csti lcatin and prcessing diversificatin Tassal categry management, new prduct develpment, marketing & distributin capabilities Vlume t deliver prcessing efficiencies in TAS & NSW Seafd hub in NSW with Tassal Salmn scale & natinal distributin capabilities which is mre valuable than a greenfield initiative 17

18 Fr persnal use nly A cmpelling strategic acquisitin De Csti Seafds prvides Tassal with an attractive vehicle t deliver the cmpany s Salmn & Seafd grwth strategy Substantially increases Ttal Addressable Market t $4.3bn annually Further builds n Tassal s successful dmestic market fcus Increases extent f Tassal s vertical integratin in Salmn Further drives scale and benefits that flw frm scale Apprpriate EBITDA multiple f 5x Substantial synergies cst/efficiencies and revenue Immediately EPS accretive pre-synergies Further infrmatin n the De Csti Seafds acquisitin can be fund in the infrmatin pack ldged with ASX n 31 July

19 Fr persnal use nly Key pririties fr FY16 Increasing dmestic Seafd cnsumptin Sales initiatives maximising the pprtunities t grw Salmn and Seafd acrss dmestic market retail, whlesale and fdservice Grw verall Seafd market (currently $4.3bn annually) Imprve market share Operatinal initiatives further ptimise the supply value chain maximise Salmn grwth efficiencies utilising Selective Breeding Prgram t deliver n fish grwth, lwer feed cnversin ratis, reduced bathing Reduce peratinal csts mve even clser t glbal best practice re cst f grwing, cst f prcessing, cst f supply and lgistics Cntinue t mitigate agricultural risk Ensure sales and peratinal initiatives cntribute strngly t Tassal s bjectives: Deliver earnings grwth Optimise efficiencies in bth Salmn & Seafd prductin Use sustainable species Strengthen the Tassal, Superir Gld, De Csti Seafds and ther prprietary brands Implement further sustainability and envirnmental initiatives and ensuring Salmn and Seafd returns are ptimised 19

20 Fr persnal use nly In summary... FY15 dmestic market fcus cntinued t drive sustainable grwing returns Mre $ frm sales (with an apprpriate $/kg return given market cnditins) Imprved peratinal efficiencies prvide a platfrm fr further earnings grwth in FY16 and beynd Strng cash flws allwed fr increased investment in fish grwth and a respnsible capital spend t underpin lnger term returns Strng balance sheet Grwing dividend up 21.7% FY16 grwth strategy bradened frm Salmn t Salmn and Seafd Cntinued grwth in fish size and vlume t underpin per capita cnsumptin Further ptimising supply value chain t drive additinal efficiencies Integratin f De Csti Seafds increases Tassal s ttal addressable market t $4.3 billin annually and prvides Tassal with a platfrm t grw the actual ttal Seafd market Cntinued grwth in earnings 20

21 Fr persnal use nly Questins?

22 Fr persnal use nly Statutry, underlying & perating results FY15 vs. FY14 Full Year ended 30 June 2015 Statutry Prfit $'000 Nn Recurring Items $'000 Underlying Prfit $'000 AASB 141 Impact $'000 Operatinal Result $'000 Revenue (frm all surces) $ 309,790 $ - $ 309,790 $ - $ 309,790 EBITDA $ 93,965 $ - $ 93,965 $ (21,378) $ 72,587 EBIT $ 75,597 $ - $ 75,597 $ (21,378) $ 54,219 Prfit befre incme tax expense $ 70,875 $ - $ 70,875 $ (21,378) $ 49,497 Incme tax expense $ (20,883) $ - $ (20,883) $ 6,413 $ (14,470) Net prfit after incme tax expense $ 49,992 $ - $ 49,992 $ (14,965) $ 35,027 Full Year ended 30 June 2014 Statutry Prfit $'000 Nn Recurring Items $'000 Underlying Prfit $'000 AASB 141 Impact $'000 Operatinal Result $'000 Revenue (frm all surces) $ 266,331 $ - $ 266,331 $ - $ 266,331 EBITDA $ 78,597 $ - $ 78,597 $ (15,052) $ 63,545 EBIT $ 63,128 $ - $ 63,128 $ (15,052) $ 48,076 Prfit befre incme tax expense $ 58,061 $ - $ 58,061 $ (15,052) $ 43,009 Incme tax expense $ (17,000) $ - $ (17,000) $ 4,516 $ (12,484) Net prfit after incme tax expense $ 41,061 $ - $ 41,061 $ (10,536) $ 30,525 22

23 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. 23

24 Fr persnal use nly Tassal Grup Limited FY15 Results Mark A Ryan, Managing Directr & CEO Andrew Creswell, CFO 20 August 2015