For the Year Ended 30 September 2009

Hui-a-Tau

He moana pukepuke e ekengia e te waka

He Moana Pukepuke He Moana Pukepuke Choppy seas of 2008-09Choppy seas of 2008-09

Robin Hapi, TiamanaRobin Hapi, Tiamana

Agenda

• Chairman’s overview – Robin Hapi• AFL operations – Jeremy Fleming, CEO • Sealord operations – Graham Stuart, CEO• Tikanga – Tutekawa Wyllie• Outlook for 2009/10 – Robin Hapi• Questions & answers• Shareholder resolutions

Last year was hard going, we were battered by the global economic storm but we survived and produced a result that we are proud of

• The world experienced its worst recession since World War II.• Our global reach and diversity allowed us to weather the storm.• We have continued to grow.• Our earnings increased to $19.2m NPAT.• We have been working with you to understand what it means to be a

Maori business and to develop our tikanga.• We are charting a well defined course for the future.• We are firmly on course to pay dividends this year.

The 2008/09 year was one of economic turmoil

• Economic activity in the six months to March 2009 fell more rapidly than at any time since World War II.

• There was widespread reduction in credit, loss of wealth and jobs, business and consumer confidence plummeted.

Six-monthly growth in selected economies, October 2008 through March 2009

-10

-8

-6

-4

-2

0

2

4

China Australia NZ US EU UK Korea HK Malaysia Japan Singapore Taiwan

% %

The economic storm hit all our markets

• All our major markets were impacted.• Demand contracted sharply in Europe as credit dried up.• North American consumers tightened their wallets and moved down market.• Asian consumers left canned abalone off their Chinese New Year menu’s.• In Australia and New Zealand consumers remained loyal to seafood but

traded down.• Live lobsters bucked the trend.

major recession minor recession slowdown (1%) slowdown (0.5%) slowdown (0.1%) growth

Our global reach and broad range of outstanding seafood buffered us from the full force of the storm

• Your company is a major player in the international seafood sector.• We have fishing operations in New Zealand, Australia, South America,

the Indian Ocean, and the Antarctic.• We have fish processing factories in New Zealand, Asia, and Europe.• Our marketing and distribution operations reach out to customers in 60

countries.• Our products range from highly sought after banquet items such as live

lobster and raw oysters to everyday meal items such as frozen crumbed hoki in your supermarket.

• In November last year some of you were able to see at first hand the close personal relationships between our people and our customers around the world.

Despite the recession we have kept on course

• Keeping our people safe is our top priority. Sealord is world class, AFL operations are catching up.

• Our mussel business is now North Island based.• We have implemented the difficult decision to move Nelson to one shift and

to process more at sea.• We have continued our programme of expanding our control of fish supply

with major quota investment in New Zealand, Australia, and Argentina.• We have invested in upgrading all our New Zealand export facilities to keep

pace with international standards.• We have made our first major investment in finfish aquaculture.• We have opened a new ration packing facility in Palmerston North.• We have been recognised internationally for the quality of our product.

As a result we have delivered a financial performance that we can be proud of

• Earnings from AFL operating divisions increased by $4.5m to $16.6m.

• Contribution from Sealord declined $0.7m to $11.4m.

• Our borrowings increased to $95m to fund investment, increasing funding cost to $8.8m.

• Overall our net profit after tax increased to $19.2m from $19.0m

• Our return on equity has remained flat at 5%.

$19.2m

($8.8m)$11.4m

$16.6m

AFL Operations Sealord Interest 2009 NPAT+ =-

We see this year as one of ‘steady as she goes’

• The world is still a tough place to do business.• We have planned a modest improvement in earnings to $24m however

the rampant dollar has already dented our expectations.• We will renew our funding facilities in Sealord and AFL.• We will continue to expand our global reach as opportunities arise.• We will be looking for opportunities to grow our business with you.• We will continue our journey toward being a business owned by and for

all Maori.• We will pay dividends.

Ekengia e te wakaEkengia e te wakaNavigating choppy seasNavigating choppy seas

Jeremy Fleming, Tumuaki, AFLJeremy Fleming, Tumuaki, AFL

AFL’s operating Divisions have had a tough year however we have stuck to our strategy

Grow ProtectMoana Pacific and OPC• Quality fresh whole fish, NZ and international • Live lobster, direct to China

Aquaculture• Safe to eat raw oysters, discerning dinners worldwide

Prepared Foods• Pouch meals and ration packs, defence forces and institutions worldwide

Prepared Foods• High value canned abalone• Chinese New Year

Joint business with Iwi• MYAA• Joint investment

Foundations

Our tikanga Our people• Safe• Right organisation• Right people

People have been the focus at Moana Pacific this year• All our sites are safer places to work than a year ago.• We have made some large changes to the organisation.• Steve Tarrant brings 15 years industry experience as our new GM.• Russell Pierce continues to lead our sales team, including our new Wellington business.• Rachel O’Reilly will apply her deep customer knowledge gained from

many years in sales to manage our processing operations.• Jason Ashford, Nissui Scholar, will be looking after all our export sales.• Nathan Reid, Nissui Scholar, is now focused on fisher management after

a stint in Aquaculture.• Hohepa Rauputu, Nissui Scholar, is working with Tuck Destounis and

our fishers on product quality.• Hamish Quested is now responsible for our lobster business from sea to customers.

We have continued to see growth in Moana Pacific and OPC

• OPC third time winner of the Sydney Fish Market “Best Supplier Interstate or Overseas” award.

• Pukekohe and SPL factories upgraded to tougher export requirements.

• Completed 834mt inshore quota acquisition at start of the year for $10.4m.

• 20mt Chatham Islands cray quota acquired for $4.0m.

• Pacific Catch retail stores acquired at year end.

• New Zealand supermarket and Australian wholesale sales continued to grow despite the recession.

• The Olympics and an auspicious year for weddings and celebrations in China drove an exceptional year for lobster.

Our Prepared Foods and Aquaculture businesses both felt the full force of the economic storm in 2008/09

• Canned abalone sales are concentrated in October to December for Chinese New Year, coinciding with the worst of the economic news.

• Sales volumes and price contracted sharply in November.• The impact was compounded by our volatile currency putting our

foreign exchange hedges, taken out up to 6 months earlier, out of the money.

• Australian restaurant diners continued to eat out on our oysters.• However reduced travel constrained demand from our tourism

based customers across Asia and the Pacific.

Nonetheless both businesses had some major successes

• The purchase of Ocean Ranch makes Prepared Foods, NZ’s largest paua quota holder, processor, and exporter.

• Prepared Foods recently established joint venture, Prepack, now supplies Defence Force ration packs.

• Prepack operates a new facility in Palmerston North employing 26 people, lead by Glenn Mullany of Ngati Kahungunu.

• Aquaculture joint venture Jemco celebrated 10 years and over 25 million oysters exported to Japan.

• Prepared Foods has entered into a marketing joint venture with our largest canned abalone customer, focused on reducing our dependence on Chinese New Year.

We are committed to working with Te Ohu Kaimoana and Iwi to ensure our fisheries are managed sustainably for future generations • Our CEO is on the Board of SeaFIC.• We work closely with Te Ohu Kaimoana, the Ministry, and

stakeholder organisations on TACC and other fishery management decisions.

• We are strong supporters of the Quota Management System as the worlds best fisheries management regime.

• The integrity of the Quota Management System, and Individual Transferable Quota, must be maintained as the basis for an enduring Settlement.

• We work closely with SeaFIC, the Ministry and other industry players to combat the misinformation by some NGO’s.

• We work with Te Ohu Kaimoana to influence key government policies such as the ETS.

Despite the recession we continued to grow our operating earnings to $16.6m

-5,000

-

5,000

10,000

15,000

20,000

2004/05 2005/06 2006/07 2007/08 2008/09

Ope

ratin

g EB

IT ($

m's

)

However the impact of the recession on abalone sales meant a disappointing result against plan and a flat return on equity at 5%

$19.2m$0.9m $0.7m

($7.8m)$25.4m

Plan AFL operations Interest Sealord 2009 NPAT

Variances from plan

Our total assets have increased from $369m at inception to $515m, as we have acquired quota and businesses

$515m$9m $22m$115m

$369m

Assets at inception Quota purchases (net ofsales)

Increase in Sealord &Associates

Other Assets at 30/09/09+ =++

Increase in assets from 2004 to 2009

As a result quota and our investment in Sealord continue to be our major investments

Total Assets

Abalone Quota19%

Lobster Quota8%

Wetfish Quota20%

Investment in Sealord

39%

Other Assets14%

         

    2009 2008  

         

  Total assets $514.4m $444.0m  

         

  Debt (net of cash) 94.9 47.1  

  Liabilities 33.3 37.2  

  Equity 386.2 359.7  

    $514.4m $444.0m  

         

Our plan for 2010 is focused on consolidation as the world emerges from recession

• Plan operating EBIT remains flat on 2008/09 at $16m.• Improvement in returns from Moana Pacific and OPC wetfish offset

by lobster pricing returning to normal.• Abalone pricing flat as producers quit 2008/09 stock.• Oyster sales forecast to recover toward pre-recession levels.• Exchange rates back up over NZD:USD 0.70• Funding costs forecast to remain steady.

Sailing ahead in choppy seasSailing ahead in choppy seas

Sealord 2008-09Sealord 2008-09Graham Stuart, Tumuaki SealordGraham Stuart, Tumuaki Sealord

2008/09 was the first year of a 3 year strategy to lift performance and grow the business

Overall we delivered a good performance

• Results above plan, although below 2007/08.• Sales ahead of last year and ahead of plan.• Sealord UK and NZ local markets did well.• Good NZ catches.• Associates companies in Europe hit by (flat) market collapse.• Spain worse hit – poor year for Europacifico.• Significant progress was made on the strategic plan.

- Review of the NZ fishing business.- Turn around in the aquaculture business.- Purchase of Queensland-based barramundi business King Reef.- Purchase of Argentinean fishing company Yuken.

Tough decisions will lift performance

• Review of NZ Fishing:– Sealord’s biggest business unit.– Some parts – notably wetfish plant – underperforming.– Reduced staff no’s & moved 7000 tonnes of processing to sea.– Two new vessels joined the fleet – Independent 1 and Antarctic

Chieftain. Both performing well.• Turnaround in Aquaculture:

– Nelson mussel processing business restructured in 2007-08.– Marlborough Sounds farms sold this year.– JV halfshell plant in Tauranga upgraded.– Sealord Aquaculture returned to profit in 2008-09.

• Organisational changes to support performance & growth.

Our strategy is driving growth

• We grew fish supplies:– We bought our shareholder in Yuken securing sustainable stocks of

Argentinean hoki & other key species.– We bought King Reef, one of the largest capacity barramundi

operations in Australia.• We grew our supply to the Australian market:

– King Reef provides further fish supply to this growing market.– We are investigating other opportunities in Australia.

We are proud of our safety record

• Our company values, put safety first.• We continued to improve our Lost Time Injury Frequency Rate in

2008-09.• LTIFR dropped 10% compared to 2007-08.• LTI of 5.43 at 30 June 2009 – world class.

We are proud of our people

• Great team effort in tough business conditions.• Examples:

– Keith Brown & Caistor team – caring for their customer, Waitrose.– David Welsh & the NZ team – innovation, enthusiasm.– Our fishers – balancing catching with care for the fish.

• Fleet includes 7 NZ owned vessels, largely crewed by Kiwis, which catch high value species and fish in NZ, Australian, international & Antarctic waters.

• One vessel in Indian Ocean.• Two Argentinean vessels fishing in Argentine waters.• Three Ukranian factory trawlers catching low value species.

• Living our values.

Sealord continues to face tough challenges in 2009-2010

• Forecasting a NPAT of $30 million.• Challenges:

– Block & H & G prices at depressed levels.– Mussel prices languishing at low levels.– Forex volatility.– Spain still struggling.– Fuel oil prices escalating.

• Stars YTD:– Good catches NZ & Argentina.– Sealord UK.– Good recovery for Nordic.

Tutekawa Wyllie, Tutekawa Wyllie, Kaiwhakahaere Tauhokohoko Kaiwhakahaere Tauhokohoko

Whakawhanaunga-a-IwiWhakawhanaunga-a-Iwi

Tikanga

“The set of beliefs associated with practices and procedures to be followed in conducting the affairs of a group or an individual”

Tikanga other Definitions

“ A system or philosophy of conduct and principles practiced by a person or group”

“Maori philosophy in practice and the practical face of Maori knowledge”

Beliefs/Principles/Philosophies

Which manifest in Practises/Procedures/Protocols

For all Person/Persons/People

Tikanga

•Maori•Iwi/hapu•Tangaroa•Aotearoa Fisheries

Aotearoa Fisheries

What How Who

Principles ImmutableUniversal

OwnershipLeadership

Owner/Board

Practises PervasivePragmatic

LeadershipBehaviours

Board/Management

People InclusiveRespectful

BehavioursActions

Management/Employee

Aotearoa Fisheries

•Unique•All Maori•Inalienable assets•Infinity•Responsibility

IWI

Nga moemoea tokowha Mana Moana Mana WhenuaKaitiaki/KaipupuriheaTakutai ki tuawhenuaTe tuakana me te teina

Nga wai karekareNga wai karekareThe seas remain choppyThe seas remain choppy

Outlook for 2009-10Outlook for 2009-10Robin Hapi, TiamanaRobin Hapi, Tiamana

This year we are committed to five goals

• We will continue our journey toward being a Maori business owned by all Maori, for the benefit of all Maori.

• We will continue to grow at home and internationally as the focus for Maori investment in the international seafood sector.

• We will continue to work with Iwi to seek out and develop opportunities for joint investment and cooperation.

• We will assist Iwi and Te Ohu Kaimoana to protect every aspect of the settlement.

• We will achieve our financial targets and pay our first dividend.

One quarter into the year and we know that it will not be plan sailing

• Our plan was set in September at $24m NPAT.• Since then the NZ dollar has strengthened making the target harder.• AFL operating divisions had a good first quarter – pleasing to see

Prepared Foods and Moana Pacific doing better than expected.• Sealord has had a tough first six months.• Overall at this stage we expect to be close to plan for the year.

As I announced at our half year result hui in July, we will pay our first dividend this year

• AFL’s dividend policy will comply with the requirements of the Maori Fisheries Act to distribute dividends of 40% of Group consolidated net profit after tax, subject to:– The solvency requirements of the Companies Act, – Any banking or other funding covenants by which AFL is bound.– The exclusions from net profit after tax specified in the MFA.– Satisfactory resolution with Te Ohu Kaimoana of the RPS.

• AFL will commence paying dividends this year.• The dividend declaration will occur immediately after the annual

audited financial statements have been approved by the Directors.• Dividend payment will occur as soon as practicable after the

dividend declaration by the Directors.

1

QUESTIONS

Shareholder Resolutions

That Shareholders –

• Receive the Annual Report of AFL and confirm the Minutes of the last AGM;

• Reappoint Ernst & Young as auditor of AFL to:– Hold office from the conclusion of this meeting to the conclusion of the

next Annual General Meeting; and – Audit the Group Financial Statements for the accounting period next

after this meeting; and– Authorise the Directors to fix the auditors remuneration for the ensuing

year.

He moana pukepuke e He moana pukepuke e ekengia e te wakaekengia e te waka

A choppy sea can beA choppy sea can be navigatednavigated