Interim Results PresentationFOR THE SIX MONTHS ENDED MARCH 2017
OCEANA GROUP LIMITED
LEGAL DISCLAIMER AND BASIS OF PREPARATION• For the purposes of this notice, the presentation (the “Presentation”) shall mean and include the slides that follow, the oral presentation of the slides by Oceana Group Limited (the “Company”)
and/or its advisers, any question‐and‐answer session that follows that oral presentation, hard copies of this document and any materials distributed at, or in connection with, that oral presentation. By attending the meeting at which the Presentation is made, or by reading the Presentation slides, you will be deemed to have (i) agreed to all of the following restrictions and made the following undertakings and (ii) acknowledged that you understand the legal and regulatory sanctions attached to the misuse, disclosure or improper circulation of the Presentation.
• This Presentation is provided to you solely for information purposes and its contents are confidential and may not be reproduced, redistributed, published or passed on to any person, directly or indirectly, in whole or in part, for any purpose. The maintenance of the absolute secrecy of the information contained in the Presentation is of paramount importance to the Company. If this Presentation has been received in error, it must be returned immediately to the Company.
• Your obligations as set out in this notice will continue in respect of the information contained in the Presentation until such time as, and then only to the extent that, any such information is made available to the public. The Company may not be making the information contained herein public, except to the extent required by law or regulation. If this is not acceptable to you, you should not receive the information contained in the Presentation.
• This Presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident of, or located in, any locality, state, country or other jurisdiction where such distribution or use would be contrary to law or regulation or which would require any action (including registration or licensing) within such jurisdiction for such purpose.
• This Presentation is not an offer of securities for sale in the United States of America ("United States"). The Company’s securities may not be offered or sold in the United States except pursuant to an exemption from, or transaction not subject to, the registration requirements of the United States Securities Act of 1933.
• This Presentation does not constitute an offer to the public for the sale of or subscription for, or an advertisement or the solicitation of an offer to buy and/or subscribe for, securities as defined in the South African Companies Act, 2008 as amended (the "Act") or otherwise, and will not be distributed to any person in South Africa in any manner which could be construed as an offer to the public in terms of the Act. Furthermore, this Presentation does not constitute an advertisement or a prospectus registered and/or issued under the Act.
• This Presentation is directed solely at (i) persons outside the United Kingdom of Great Britain and Northern Ireland, or (ii) persons with professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 as amended (the “Order”), (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within article 49(2)(a) to (d) of the Order and (iv) persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities of the Company or any member of its group may otherwise lawfully be communicated or caused to be communicated (all such persons in (i)‐(iv) above being “relevant persons”). Any investment activity to which this Presentation relates will only be available to, and will only be engaged with, relevant persons. Any person who is not a relevant person should not act or rely on this Presentation.
• This Presentation does not constitute or form part of, and should not be construed as, an advertisement, invitation, solicitation and/or offer to sell, issue, purchase or subscribe for, any shares and/or securities in the Company or any of its subsidiaries in any jurisdiction, or an inducement to enter into investment activity. No part of this Presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Company or any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this Presentation or its contents or otherwise arising in connection with the Presentation.
• The information contained herein has been prepared using information available to the Company at the time of preparation of the Presentation. External or other factors may have impacted on the business of the Company and the content of this Presentation, since its preparation. In addition all relevant information about the Company may not be included in this Presentation. The information in this Presentation has not been independently verified. No representation or warranty, expressed or implied, is made as to the accuracy, completeness or reliability of the information contained herein and no reliance should be placed on such information. Neither the Company, nor any of its advisers, connected persons or any other person accepts any liability for any loss howsoever arising, directly or indirectly, from this Presentation or its contents.
• This Presentation contains forward‐looking statements, which include all statements other than statements of historical facts, including, without limitation, any statements preceded by, followed by or including the words “targets”, “believes”, “expects”, “aims”, “intends”, “may”, “anticipates”, “would”, “could” or similar expressions or the negative thereof. Forward‐looking statements by their nature involve known and unknown risks, uncertainties, assumptions and other important factors because they relate to events and depend on circumstances that might occur in the future whether or not outside the control of the Company. Such factors may cause the Company’s actual results, performance or achievements to be materially different from future results, performance, developments or achievements expressed or implied by such forward‐looking statements. Such forward‐looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which it will operate in the future. Accordingly, no assurance is given that any such forward‐looking statements will prove to have been correct. These forward‐looking statements speak only as at the date of this Presentation. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward‐looking statements contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any of such statements are based.
AGENDA
GROUP OVERVIEW
FINANCIAL & OPERATING PERFORMANCE
STRATEGIC OVERVIEW & GUIDANCE
GUIDANCE
1lobster facilities freezer vessels
for squid
5South coast
lobster vessel
4West coast
lobster vessel
9
hake facilities
2hake wet
fish trawlers
1hake freezer
trawlers
5horse mackerel
trawlers in Namibia
2horse mackerel
trawlers in South Africa
1
GROUP OVERVIEW
canneries
3vessels, wholly owned,
co-owned or joint ventures
8steel refrigerated seawater vessels
in Namibia
4steel refrigerated
seawater vessels in South Africa
9fishmeal plants
5
production facility fishing vessels
11 131
spotter planes
stores in Angola
storage pallets per week
128 0001stores in Namibia
1Store facilities in
South Africa
9
GROUP OVERVIEW - INCREASED DIVERSIFICATION
H1:2017 Outer circleH1:2016 Middle circleH1:2015 Inner circle
BY GEOGRAPHYBY SECTOR
77%
8%8% 7%
61%
7%
6%
7%
19%
55%6%
12%
7%
20%
SOUTH AFRICA AND NAMIBIAOTHER AFRICAUK & EUROPEFAR EASTAMERICA
55%
7%
17%
6%4%
12%
46%
26%
9%
6%2%
10%
42%
34%
9%
6%2%
6%
CANNED FISHFISHMEAL & FISH OILHORSE MACKERELHAKELOBSTER AND SQUID
GROUP OVERVIEW - CHALLENGING 6 MONTHS
1,000
1,100
1,200
1,300
1,400
1,500
1,600
1,700
1,800
2017 2016 12.00
13.00
14.00
15.00
16.00
17.00
18.00
2017 2016
FISHMEAL PRICE STRENGTHENING RAND
96
97
98
99
100
101
102
103A
pr-1
6
May
-16
Jun-
16
Jul-1
6
Aug
-16
Sep-
16
Oct
-16
Nov
-16
Dec
-16
Jan-
17
Feb-
17
Mar
-17
CPI
-60
-40
-20
-
20
40
60
80
2012 2013 2014 2015 2016 2017
H1 H2
FOREX - COVER AND GAINS/LOSSES
13.50
14.00
14.50
15.00
15.50O
ct-1
5N
ov-1
5D
ec-1
5Ja
n-16
Feb-
16M
ar-1
6A
pr-1
6M
ay-1
6Ju
n-16
Jul-1
6A
ug-1
6Se
p-16
Oct
-16
Nov
-16
Dec
-16
Jan-
17Fe
b-17
Mar
-17
FEC RATE
R’M
AGENDA
GROUP OVERVIEW
FINANCIAL & OPERATING PERFORMANCE
STRATEGIC OVERVIEW & GUIDANCE
GUIDANCE
FINANCIAL & OPERATING PERFORMANCE
HEADWINDS• Exchange rate• Lucky Star volumes• Fishmeal pricing• CCS Gauteng occupancy• Hake sea days
TAILWINDS• Fishmeal volumes• Horse mackerel SA volumes• Procurement efficiencies• GP margin improvement• Daybrook earnings• Working capital management
MAR MARR'000 2017 Var 2016(*)Revenue 3,140,602 -9% 3,465,047Cost of sales 1,918,812 13% 2,208,217Gross profit 1,221,790 -3% 1,256,830GP margin 39% 36%
Operating profit before foreign exchange gain/(loss) 560,211 4% 558,111Foreign exchange (loss)/gain (44,677) 69,909Share-based payments (11,274) -75% (44,867)Operating profit before other operating items 504,260 -14% 583,152
Other operating items 774 13,363Operating profit 505,034 -15% 596,515Operating profit margin 16% 17%
Net interest (171,146) 5% (163,134)
Headline earnings 226,019 -15% 265,260HEPS (cents) 193.76 -16% 230.78 *Excluding Lamberts Bay Foods effect
INCOME STATEMENT - GROUP
INCOME STATEMENT – AFRICA OPERATIONSMAR MAR
R'000 2017 Var 2016(*)Revenue 2,435,868 -12% 2,759,365Cost of sales 1,534,802 14% 1,793,789Gross profit 901,066 -7% 965,576GP margin 37% 35%
Operating profit before foreign exchange gain/(loss) 352,585 -4% 367,309Foreign exchange (loss)/gain (44,677) 69,909 Share-based payments (11,274) -100% (44,867) Operating profit before other operating items 296,634 -24% 387,989
Other operating items 773 13,363Operating Profit 297,407 -27% 405,714Operating profit margin 12% 15%*Excluding Lamberts Bay Foods effect
INCOME STATEMENT – DAYBROOKMAR MAR
$'000 2017 Var 2016Revenue 51,825 12% 46,452Cost of sales 28,226 3% 27,335Gross profit 23,599 23% 19,117GP margin 46% 41%
Operating profit 15,365 23% 12,461Operating profit margin 30% 27%
REVENUE
3,465 3,354
3,141
172 21 16
214
93 5
2,500
2,700
2,900
3,100
3,300
3,500
3,700
Mar
ch 2
016
Can
ned
fish
and
fishm
eal
(Afr
ica)
Fish
mea
l and
fish
oil (
USA
)
Hor
sem
acke
rel a
ndha
ke
Lobs
ter a
ndsq
uid
Com
mer
cial
cold
sto
rage
logi
stic
s
Pre-
exch
ange
rate
Exch
ange
rate
Mar
ch 2
017
Increase Decrease
OPERATING PROFIT
March 2016 Exchange rate Volumes Price Other March 2017
TOTAL 628,020 33% 8% 5% 9% 515,534
Revenue Drivers Cost Drivers
CANNED FISH AND FISHMEAL
March 2016 Exchange rate Volumes Price Other March 2017
Canned fish (Africa)
211,11540% 28% 10% 5%
126,486Fishmeal (Africa) 10% 20% 9% 10%
CANNED FISH AND FISHMEAL
12.50
13.00
13.50
14.00
14.50
15.00
15.50
16.00
16.50
17.00
Oct
-15
Nov
-15
Dec
-15
Jan-
16
Feb-
16
Mar
-16
Apr
-16
May
-16
Jun-
16
Jul-1
6
Aug
-16
Sep-
16
Oct
-16
Nov
-16
Dec
-16
Jan-
17
Feb-
17
Mar
-17
USD RATE FEC RATE
March 2016 Exchange rate Volumes Price Other March 2017
Canned fish (Africa)
211,11540% 28% 10% 5%
126,486Fishmeal (Africa) 10% 20% 9% 10%
EXCHANGE RATE
CANNED FISH AND FISHMEAL
March 2016 Exchange rate Volumes Price Other March 2017
Canned fish (Africa)
211,11540% 28% 10% 5%
126,486Fishmeal (Africa) 10% 20% 9% 10%
F2012 F2013 F2014 F2015 F2016 F2017Oct ‐ Mar 3,838 4,483 4,449 4,242 4,775 3,384
SALES VOLUMES RSA & BLNS CANNED FISH SALES VOLUMES SA (CARTONS)
Sep Oct Nov Dec Jan Feb Mar
2017 MONTHLY 2016 MONTHLY
437 488 400 746
344 019
Mar-15 Mar-16 Mar-17
BLNS ROA
16.5%
March 2016 Exchange rate Volumes Price Other March 2017
Canned fish (Africa)
211,11540% 28% 10% 5%
126,486Fishmeal (Africa) 10% 20% 9% 10%
9.2%
CANNED FISH SALES VOLUMES - REST OF AFRICA (CARTONS)
CANNED FISH AND FISHMEAL
TONS MAR 2017 MAR 2016
Landings 63,972 35,711
Meal yield 23.1% 23.0%
Oil yield 7.5% 3.3%
Sales - fishmeal 16,649 9,687
Sales - fish oil 4,190 2,045
March 2016 Exchange rate Volumes Price Other March 2017
Canned fish (Africa)
211,11540% 28% 10% 5%
126,486Fishmeal (Africa) 10% 20% 9% 10%
CANNED FISH AND FISHMEAL
-
500
1,000
1,500
2,000
2,500
Oct
-15
Nov
-15
Dec
-15
Jan-
16
Feb-
16
Mar
-16
Apr
-16
May
-16
Jun-
16
Jul-1
6
Aug
-16
Sep-
16
Oct
-16
Nov
-16
Dec
-16
Jan-
17
Feb-
17
Mar
-17
PRIC
E /T
ON
FISHMEAL FISH OIL
March 2016 Exchange rate Volumes Price Other March 2017
Canned fish (Africa)
211,11540% 28% 10% 5%
126,486Fishmeal (Africa) 10% 20% 9% 10%
AFRICA FISHMEAL AND FISH OIL PRICING COMPARISON
CANNED FISH AND FISHMEAL
DAYBROOK
March 2016 Exchange rate Volumes Price Other March 2017
Fishmeal and fish oil (USA) 195,164 12% 13% 2% 5% 216,298
21,437 21,120
6,373 10,304
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Mar-16 Mar-17FISHMEAL FISH OIL
US SALES VOLUMES
DAYBROOK
-
500
1,000
1,500
2,000
2,500
Oct
-15
Nov
-15
Dec
-15
Jan-
16
Feb-
16
Mar
-16
Apr
-16
May
-16
Jun-
16
Jul-1
6
Aug
-16
Sep-
16
Oct
-16
Nov
-16
Dec
-16
Jan-
17
Feb-
17
Mar
-17
PRIC
E M
/T
FISHMEAL FISHOIL
March 2016 Exchange rate Volumes Price Other March 2017
Fishmeal and fish oil (USA) 195,164 12% 13% 2% 5% 216,298
US FISHMEAL & FISH OIL PRICE COMPARISON
HORSE MACKEREL
HORSE MACKEREL & HAKE
March 2016 Exchange rate Volumes Price Other March 2017
Horse mackerel122,867
7% 18% 16% 2%104,252
Hake 12% 10% 13% 12%
Oct
-15
Nov
-15
Dec
-15
Jan-
16Fe
b-16
Mar
-16
Apr
-16
May
-16
Jun-
16Ju
l-16
Aug
-16
Sep-
16O
ct-1
6N
ov-1
6D
ec-1
6Ja
n-17
Feb-
17M
ar-1
7
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
H1
NAMIBIA CATCH RATESDESERT DIAMOND LANDINGS
1,060
850
960
860 750 861
730 640 651
620
490 564
Sep-
15
Oct
-15
Nov
-15
Dec
-15
Jan-
16
Feb-
16
Mar
-16
Apr
-16
May
-16
Jun-
16
Jul-1
6
Aug
-16
Sep-
16
Oct
-16
Nov
-16
Dec
-16
Jan-
17
Feb-
17
Mar
-17
20+ 18+ 16+ 16m
March 2016 Exchange rate Volumes Price Other March 2017
Horse mackerel122,867
7% 18% 16% 2%104,252
Hake 12% 10% 13% 12%
HORSE MACKEREL NAMIBIA AVE EX HATCH PRICE (US$/ton)
HORSE MACKEREL & HAKE
HORSE MACKEREL & HAKE
0%4%
-15%-20%
-15%
-10%
-5%
0%
5%
10%
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Mar-15 Mar-16 Mar-17
TON
S
Indexed to 2015
OWN QUOTA CONTRACTED QUOTA QUOTA USAGE FEE PRICE INCREASE
March 2016 Exchange rate Volumes Price Other March 2017
Horse mackerel122,867
7% 18% 16% 2%104,252
Hake 12% 10% 13% 12%
HORSE MACKEREL QUOTA USAGE & USAGE FEE
HORSE MACKEREL & HAKE
0
20
40
60
80
100
120
140
160
180
200
Oct Nov Dec Jan Feb Mar
2016 2017
VESSEL UTILISATION HAKE SEA DAYS
March 2016 Exchange rate Volumes Price Other March 2017
Horse mackerel122,867
7% 18% 16% 2%104,252
Hake 12% 10% 13% 12%
67%64%
MAR 16 MAR 17
H1
March 2016 Exchange rate Volumes Price Other March 2017
Lobster26,178
13% 34% 4% 1%20,250
Squid 16% 77% 20%
LOBSTER & SQUID
COMMERCIAL COLD STORAGE
March 2016 Exchange rate Volumes Price Other March 2017
Commercial Cold Storage 72,696 19% 10% 10% 48,246
13 207
18 780 7 537
Mar-16 Frozen Fish Inland Coastal Mar-17
OPERATING PROFIT
BALANCE SHEET (KEY ITEMS)MAR MAR
R'000 2017 2016
Property, plant and equipment 1,616,962 1,598,397Intangible assets 4,448,917 4,709,566Current assets 2,749,868 2,994,741Other assets 448,370 511,536Net cash 983,467 561,030Total assets 10,247,584 10,375,270
Shareholders interest 3,518,536 3,671,920Non-controlling interest 90,153 79,801Long term loan 3,962,558 4,364,695Other liabilities 2,676,337 2,258,854Total equity and liabilities 10,247,584 10,375,270
Capex Mar 2017: R83m, Mar 2016: R100m
NET DEBT
2.8
1.9
-
0.5
1.0
1.5
2.0
2.5
3.0
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
Mar-16 Mar-17
CURRENT PORTION OFLONG TERM DEBT
NET DEBT OCT-MAR
WORKING CAPITAL
115 112 115
42 43 44 32 33
49
124
122
110
95
100
105
110
115
120
125
130
0
20
40
60
80
100
120
140
2015 2016 2017
INVENTORY DAYS DEBTORS DAYS CREDITORS DAYS CASH CONVERSION CYCLE
DIVIDEND PER SHARE
MAR MAR2017 Var 2016
Headline earnings (R’000) 226,019 -16% 269,129
Weighted average number of shares used in the calculation of basic earnings per share 116,647 116,617 Headline earnings per share 193.8 -16% 230.8
Total Interim dividend paid 105,035 -20% 130,622 Number of shares dividend (net treasury shares) 116,705 116,627 Interim dividend per share 90.0 -20% 112.0
AGENDA
GROUP OVERVIEW
FINANCIAL & OPERATING PERFORMANCE
STRATEGIC OVERVIEW & GUIDANCE
GUIDANCE
Canned Fish
CANNED FISH SALES – SOUTH AFRICA
• South Africao Looking to improve on 2016 H2 volumeso Pricing strategy reviewedo Already seeing good traction – April record sales, May improvedo Cost base reduced
– Imported inventory at R13.61– Consist $ pricing of frozen fish and cans– Procurement efficiencies on freight and packaging
• H2 increased earnings expected
CANNED FISH SALES – SOUTH AFRICA
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
2017 Monthly 2016 Monthly 2017 Cumulative 2016 Cumulative
CANNED FISH SALES – REST OF AFRICA
• ROA showing good growth particularly Mozambique and Zambia• Continue to explore Nigeria and Kenya opportunities
CANNED FISH SUPPLY
• TAC reduced from 65,000 tons to 24,000 tons
• Cost of local production impacted materially
• Frozen fish strategy yielding rewards• Import levels expected to double• Revised procurement plan has
enabled improved supply chain efficiencies
37% 35%
12%
15%
34%
63%
4%
5%3% 43%
26% 22%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2015 2016 2017
PROCURED INTERNATIONALLYPROCURED SAOWN FROZENOWN FRESH
Fishmeal & Oil
FISHMEAL AND OIL GLOBAL OUTLOOK
• Peru o 3 years of increased temperature and variable salinityo normal quotas in 2017, aided by aggressive approach from
government• Oil yields expected to decrease in USA, Chile, Scandinavia• Rest of the world – meal and oil production consistent
FISHMEAL SUPPLY
4,993
4,5554,750
4,410
5,081
2013 2014 2015 2016 2017
PERU SCANDINAVIA* THAILAND CHINA,PR VIETNAM U.S.A CHILE JAPAN OTHERS
FISHMEAL WORLD PRODUCTION (‘000mt)
954906
941877
947
2013 2014 2015 2016 2017
U.S.A SCANDINAVIA* CHILE CHINA,PR PERU OTHER
FISH OIL SUPPLYFISH OIL WORLD PRODUCTION (‘000mt)
SUPPLY - % of biomass harvested
0
5
10
15
20
25
30
35
40
2010 2011 2012 2013 2014 2015 2016 2017
Gulf Menhaden SA Anchovy Peru
FISHMEAL AND OIL GLOBAL OUTLOOK
MEAL CONSUMPTION• Growth expected in shrimp, marine and chicken sector• Offset by inclusion rates
OIL CONSUMPTION• Supplements market static – past 5 years• Salmon inclusion rates declined
DEMAND/USAGE – FISHMEAL
Pig 22%
Chicken6%
Other 2%
Crustaceans22%
Marine fish, 13%
Salmon, 10%
Tilapia, 8%
Other10%
Other70%
Africa3%
Asia29%
China31%
Europe17%
Former Russia
2%
Latin America
12%
Middle East2%
North America
3%
Oceania1%
FISHMEAL - SECTOR FISHMEAL - GEOGRAPHY
Other8%
DHC 23%
Crustaceans4%
Marine fish 16%
Salmon40%
Tilapia 5%
Aquaculture 69%
Africa2%
Asia18%
China13%
Europe34%
Latin America
19%
Middle East3%
North America
8%Oceania
2%
DEMAND/USAGE – FISH OILFISH OIL - SECTOR FISH OIL - GEOGRAPHY
PERU PRICES & QUOTA
0
500
1,000
1,500
2,000
2,500
3,000
0
500
1,000
1,500
2,000
2,500
3,000
Q1:
201
2
Q2:
201
2
Q3:
201
2
Q4:
201
2
Q1:
201
3
Q2:
201
3
Q3:
201
3
Q4:
201
3
Q1:
201
4
Q2:
201
4
Q3:
201
4
Q4:
201
4
Q1:
201
5
Q2:
201
5
Q3:
201
5
Q4:
201
5
Q1:
201
6
Q2:
201
6
Q3:
201
6
Q4:
201
6
Q1:
201
7
X 1,
000
TON
S
$ FO
B
N/C ANCHOVY QUOTA SUPER PRIME FAQ AQUA FISH OIL
FISHMEAL & FISH OIL PRICES
500 700 900
1,100 1,300 1,500 1,700 1,900 2,100
Oct
-15
Nov
-15
Dec
-15
Jan-
16
Feb-
16
Mar
-16
Apr
-16
May
-16
Jun-
16
Jul-1
6
Aug
-16
Sep-
16
Oct
-16
Nov
-16
Dec
-16
Jan-
17
Feb-
17
Mar
-17
Apr
-17
PRIC
E /T
ON
AFRICA
500 700 900
1,100 1,300 1,500 1,700 1,900 2,100
Oct
-15
Nov
-15
Dec
-15
Jan-
16
Feb-
16
Mar
-16
Apr
-16
May
-16
Jun-
16
Jul-1
6
Aug
-16
Sep-
16
Oct
-16
Nov
-16
Dec
-16
Jan-
17
Feb-
17
Mar
-17
Apr
-17
PRIC
E M
/T
USA
Fishmeal Fishoil
OUTLOOK
Short term to medium term• Market will expect Peru to land it’s quota• Meal prices appear to have bottomed out and gradual improvement is
expected• Oil price dependent on EPA/DHA levels in Peru• 2017/2018 El-Nino event – 50% probable
Long term• Peru juvenile landings increasing • Meal demand curve remains intact• Strategy to put pressure on Salmon farmers re Oil inclusion rates• Research indicating 8,5% CAGR 2017 to 2022 in FMO market
AFRICA INDUSTRIAL FISH LANDINGS
125,642
127,152
148,523
86,324
2014 2015 2016 2017 YTD
Oct - Mar Apr May Jun Jul Aug Sep
• Landings positive• Biomass remains in healthy state• Angola and SA oil yield promising
Daybrook
DAYBROOK PERFORMANCE
• Season commenced mid April – plant and fleet in good state of readiness
• Appointment of new plant manager• State of resource healthier than originally anticipated• Early landings positive, oil yield lower than average• No additional vessels required due to improved fleet deployment• Sales prices lag effect due to forward selling in US market
FISH SUPPLY – landings
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
1 2 3 4 5 6
2014 2015 2016 2017
Horse Mackerel
HORSE MACKEREL – SOUTH AFRICA
• Fishing rights application process (FRAP)o Current allocation is 24,8% of PMCL from 34,7% previously o DAFF currently reviewing FRAP appealso Announcement expected in the next few monthso Judgement in Viking Fishing court case could provide clarity on
future allocations• Landings continue to improve – average April and May landings
have increased by 60% on YTD average
HORSE MACKEREL - SOUTH AFRICA
HORSE MACKEREL - NAMIBIA
• Appointment of local MD • Initial allocation of 140,000 tons• Date of announcement of additional
allocation uncertain. Expected in May due to quota close to being fully harvested
• Continue to seek moderation in quota fees
• Constant dialogue with Namibian authorities
• Drive by government to promote land based processing
0%
16%
1% 0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2015 2016 2017
TON
SCONTRACTED QUOTAOWN QUOTAQUOTA USAGE FEES PRICE INCREASE
Hake
HAKE QUOTA, VESSELS AND CATCH RATE
7 6 6
10.9
12.9
10.9
-
2
4
6
8
10
12
14
16
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2015 2016 2017
CONTRACTED QUOTAJOINT VENTURESOWN QUOTAH1 SALES VOLUMESAVERAGE CATCH RATE
• Vessel outages impacted sea days - drive to improve vessel utilisation in H2
• Beatrice factory upgrade yielding positive results
• Euro pricing expected to remain positive
Lobster & Squid
LOBSTER & SQUID
LOBSTER• Provisional FRAP announcement expected in May• Continued engagement with DAFF on Small Scale Fisheries sector• Additional vessels contracted - expect landings to improve in H2• Pricing remains a challenge
SQUID• Positive outlook continues – volumes and pricing favourable
CCS
COMMERCIAL COLD STORAGE
• High occupancy base set in 2016 – difficult to replicate• Frozen fish storage levels will improve in H2• Gauteng
o Midrand stores under pressure due to competitive local environment
o City Deep facility undergone improvementso Management will focus on pricing and long term occupancy
arrangements• Namibia facility
o Partnership with local Namibians securedo 10 year lease extension being finalised
Outlook
OUTLOOK - H2 IN SUMMARY
HEADWINDS• Exchange rate• Fishmeal and oil pricing• CCS Gauteng
TAILWINDS• Fishmeal volumes • Horse mackerel SA volumes• Canned fish volumes and earnings • Hake vessel utilisation• Procurement efficiencies
OUTLOOK - GROWTH OPPORTUNITIES
SA/NAMIBIA• Canned fish – both domestic and ROA focus• Namibia – long term partnerships with local Namibian entities• Angola – exploring land based facility
AQUACULTURE• Exploring greenfield aquaculture strategy• Continue to seek opportunities to invest in existing scalable
businesses
OTHER• Continue to explore options to further diversify species and
geographies
AGENDA
GROUP OVERVIEW
FINANCIAL & OPERATING PERFORMANCE
STRATEGIC OVERVIEW & GUIDANCE
GUIDANCE
GUIDANCE
• DEBTo SA Debt – intention to de-gear SA balance sheet o US Debt – interest rates fixed to maturity
• Volumes will seek to replicate PY performance in H2• Effect on revenue, at current exchange rate, greater than effect for
H1 (R100m), prior year H2 exchange rate R14.7/$• Fishmeal and fish oil price effect on $ earnings in Daybrook• Continue to extract value from procurement efficiencies - target
R70m for 2017• Share charge – closed 2016 VWAP of 113.13
380 337 597 505 483 683
1125
2014 2015 2016 2017
First half Second half
2,222 2,437 3,465 3,141 2,548 3,478
4,542
2014 2015 2016 2017
First half Second half
CAGR 12.2%
REVENUE & OPERATING PROFIT ANALYSIS
* Excluding Lamberts Bay Fries
OPERATING PROFIT* (ZARm)
* Excluding Lamberts Bay Fries
GROUP REVENUE* (ZARm)
CAGR 9.9%
Questions