interim results presentation - oceana...

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



GUIDANCE


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


Canned fish (Africa)

211,11540% 28% 10% 5%

126,486Fishmeal (Africa) 10% 20% 9% 10%


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



211,11540% 28% 10% 5%

126,486Fishmeal (Africa) 10% 20% 9% 10%

EXCHANGE RATE




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%



211,11540% 28% 10% 5%

126,486Fishmeal (Africa) 10% 20% 9% 10%

9.2%

CANNED FISH SALES VOLUMES - REST OF AFRICA (CARTONS)


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



211,11540% 28% 10% 5%

126,486Fishmeal (Africa) 10% 20% 9% 10%


-

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



211,11540% 28% 10% 5%

126,486Fishmeal (Africa) 10% 20% 9% 10%

AFRICA FISHMEAL AND FISH OIL PRICING COMPARISON


DAYBROOK


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


Fishmeal and fish oil (USA) 195,164 12% 13% 2% 5% 216,298

US FISHMEAL & FISH OIL PRICE COMPARISON

HORSE MACKEREL

HORSE MACKEREL & HAKE


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



7% 18% 16% 2%104,252

Hake 12% 10% 13% 12%

HORSE MACKEREL NAMIBIA AVE EX HATCH PRICE (US$/ton)



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



7% 18% 16% 2%104,252

Hake 12% 10% 13% 12%

HORSE MACKEREL QUOTA USAGE & USAGE FEE


0

20

40

60

80

100

120

140

160

180

200

Oct Nov Dec Jan Feb Mar

2016 2017

VESSEL UTILISATION HAKE SEA DAYS



7% 18% 16% 2%104,252

Hake 12% 10% 13% 12%

67%64%

MAR 16 MAR 17

H1


Lobster26,178

13% 34% 4% 1%20,250

Squid 16% 77% 20%

LOBSTER & SQUID

COMMERCIAL COLD STORAGE


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



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 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

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



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

interim results presentation - oceana...

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