Tassal Group Lim ited Tassal Group Lim ited Results Presentation - PowerPoint PPT Presentation

Tassal Group Lim ited Tassal Group Lim ited Results Presentation Financial Year Ended 30 June 2008 27 August 2008 The follow ing slides should be read in conjunction w ith Tassal Group Lim ited’s Appendix 4 E: Prelim inary Final Report for the Year Ended 3 0 June 2 0 0 8 lodged w ith the Australian Securities Exchange on 2 7 August 2 0 0 8 Australian Securities Exchange on 2 7 August 2 0 0 8 1

Agenda Agenda • Executive Sum m ary • • Historical Perform ance Historical Perform ance • Financial Detail • Superior Gold Update • Priorities • Outlook 2

Executive Sum m ary Executive Sum m ary Tassal is pleased to announce a strong Full Year Norm alised result for 2 0 0 8 1 Tassal is pleased to announce a strong Full Year Norm alised result for 2 0 0 8 1 � Revenue of $167.3m (+ 16% on pcp) � EBITDA of $34.7m (+ 22% on pcp) � NPAT of $21.2m (+ 33% on pcp) � Basic EPS 17.1 cps (+ 22% on pcp) � � Net Debt reduced to $32 6m (from $52 1m at 30 June 2007) Net Debt reduced to $32.6m (from $52.1m at 30 June 2007) � Final dividend of 3.5c per share (+ 27% on pcp) 3 0 -June-2 0 0 8 3 0 -June- 20 0 7 Change Change U Underlying operational result d l i ti l lt $ ’0 0 0 $ ’0 0 0 $ ’0 0 0 $ ’0 0 0 $ ’0 00 $ ’0 00 % % $ 167,266 $ 144,001 $ 23,265 16.16% Revenue (from all sources) EBITDA $ 34,661 $ 28,431 $ 6,230 21.91% Depreciation $ (2,457) $ (1,623) $ (834) 51.39% EBIT $ 32,204 $ 26,808 $ 5,396 20.13% Borrowing Costs Borrowing Costs $ $ (4,114) (4 114) $ $ (4 590) (4,590) $ $ 476 476 (10 37)% (10.37)% $ 28,090 $ 22,218 $ 5,872 26.43% Profit before income tax expense Tax expense $ (6,890) $ (6,230) $ (660) 10.59% NPAT $ 2 1 ,2 0 0 $ 1 5 ,9 8 8 $ 5 ,2 1 2 3 2 .6 0 % EPS $ 0 .1 7 1 $ 0 .1 4 0 $ 0 .0 3 1 2 1 .8 3 % 1. Underlying operational earnings (i.e. normalised earnings) have been adjusted for the impact of AASB141 and non- 3 recurring items to reflect the underlying financial performance of the Group

Executive Sum m ary Executive Sum m ary Key Highlights: y g g � Strong growth in salmon demand – overall sales volume growth of 14.3% � Improved operating metrics – increase in harvested fish size, reduced cost of production and higher effective price for domestic and export � The underlying finished goods cost (i.e. cost of fish, processing, third party contractors and packaging) was reduced to $6.54 kg hog [ FY2007: $6.91kg hog] � Proceeds from capital raising employed towards acquisition of Superior Gold, pursuing growth opportunities, accelerating capital investment and reducing debt � Superior Gold performing to plan with $8.3m revenue contribution for the period – achieving synergies on supply and trading terms � Accelerated capital investment focused on growth, efficiency and risk mitigation Accelerated capital investment focused on growth, efficiency and risk mitigation � Continued research & development with focus on fish husbandry and selective breeding program � Strong cash generation and reduction in net debt 4

Historical Perform ance Historical Perform ance Grow th in dom estic dem and for Salm on + trout leading to strong volum e grow th g g g 16,000 16,000 14,000 14,000 12,000 12,000 '000) '000) 10 000 10,000 10 000 10,000 og kgs sold ( og kgs sold ( 8,000 8,000 Export Export 6,000 6,000 Domestic Domestic Domestic Domestic Ho Ho 4,000 4,000 2,000 2,000 ‐ ‐ 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 Year ended 30 June Year ended 30 June 5

Historical Perform ance Historical Perform ance � Tassal continues to consistently deliver a reducing cost base Cost improvement of 37% over period Underlying finished goods cost * Underlying finished goods cost * � Driven by improved Driven by improved $12.00 $12.00 � fish size $10.52 $10.52 $9.49 $9.49 Hog Kg. Hog Kg. � fish survival $10.00 $10.00 $8.84 $8.84 � FCR’s ed cost per H ed cost per H $8.00 $8.00 $8 00 $8 00 $6 91 $6.91 $6 91 $6.91 $6.54 $6.54 � Automation � restructuring $6.00 $6.00 $4.00 $4.00 Finishe Finishe � � Fish growing costs on Fish growing costs on $2.00 $2.00 track to deliver FY2015 global best $ ‐ $ ‐ practice target of $3.50 kg $3 50 kg 2004 2004 2004 2004 2005 2005 2005 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 Year ended 30 June Year ended 30 June ( nb: Data not broken dow n due to com petitor sensitivities) * Underlying finished goods cost = cost of fish, processing, third party contractors, and packaging expressed as a cost per 6 head on gutted equivalent kilogram

Historical Perform ance Historical Perform ance Strong grow th in underlying NPAT and EPS Strong grow th in underlying NPAT and EPS $25,000 $25,000 $0.18 $0.18 $0.16 $0.16 $0 16 $0 16 $20,000 $20,000 $0.14 $0.14 g NPAT g NPAT ing EPS ing EPS $0.12 $0.12 $15,000 $15,000 $0 10 $0.10 $0 10 $0.10 Underlyi Underlyi Underlyin Underlyin EPS CAGR: FY2 0 0 4 – FY2 0 0 8 $0.08 $0.08 3 7 .6 % $10,000 $10,000 $0.06 $0.06 $0.04 $0.04 $5,000 $5,000 $0.02 $0.02 $0 $0 $ ‐ $ ‐ 2004 2004 2004 2004 2005 2005 2005 2005 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 Year ended 30 June Year ended 30 June Underlying NPAT Underlying NPAT Underlying EPS Underlying EPS 7

Historical Perform ance Historical Perform ance Continuing to return an increasing dividend paym ent Continuing to return an increasing dividend paym ent to shareholders – payout ratio circa 4 0 % $10,000 $10 000 $10,000 $10 000 7.00 7.00 7 00 7 00 6.00 6.00 $8,000 $8,000 � DRP active - cash 5.00 5.00 saved is being 000) 000) ividend paid ($'0 ividend paid ($'0 utilised to grow the $6,000 $6,000 4.00 4.00 business from both ts per share ts per share an operational and 3.00 3.00 $4,000 $4,000 infrastructure Di Di Cent Cent 2.00 2.00 perspective, as well $2,000 $2,000 as reducing gearing 1.00 1.00 $0 $0 ‐ ‐ 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 Year ended 30 June Year ended 30 June Quantum ($'000) Quantum ($'000) CPS CPS 8

Financial Detail Financial Detail Strong underlying ( “Norm alised”) NPAT $ 2 1 .2 m illion ( + 3 3 % com pared to pcp) Strong underlying ( Norm alised ) NPAT $ 2 1 .2 m illion ( + 3 3 % com pared to pcp) � Strong growth in sales revenue (16.1% ) and sales volume (14.3% ) � � Strong growth in EBITDA (21 9% ) underpinned by strong domestic salmon sales and Strong growth in EBITDA (21.9% ) underpinned by strong domestic salmon sales and reduction in cost of growing and processing � “Normalised” results remove the impact of Reported AASB 1 4 1 im pact Non-recurring Underlying AASB 141 item s im pact operational “Agriculture” and add g FY2 0 0 8 FY2 0 0 8 result result back non-recurring $ ’00 0 $’00 0 $’000 $ ’0 00 items. $ 288,311 $ (121,045) $ - $ 167,266 Revenue (from all sources) $ 33,614 $ (983) $ 2,030 $ 34,661 EBITDA $ 31,157 $ (983) $ 2,030 $ 32,204 EBIT � Non-recurring items Profit before income tax expense $ 27,043 $ (983) $ 2,030 $ 28,090 relate to restructuring Income tax expense Income tax expense $ $ (6,576) (6,576) $ $ 295 295 $ $ (609) (609) $ $ (6,890) (6,890) and rebalancing of $ 20,467 $ (688) $ 1,421 $ 21,200 Net profit after income tax expense Tassal’s underlying marine and Reported AASB 1 4 1 im pact Non-recurring Underlying processing operating item s im pact operational FY2 0 0 7 infrastructure during result FY2008 – costs in $ ’0 0 0 $ ’0 0 0 $ ’0 0 0 $ ’0 0 0 Revenue (from all sources) $ 245,919 $ (101,918) $ - $ 144,001 line with previously $ 34,370 $ (7,150) $ 1,211 $ 28,431 EBITDA advised quantum. $ 32,747 $ (7,150) $ 1,211 $ 26,808 EBIT Profit before income tax expense $ 28,157 $ (7,150) $ 1,211 $ 22,218 � Not recurring in Income tax expense $ (8,012) $ 2,145 $ (363) $ (6,230) Net profit after income tax expense Net profit after income tax expense $ $ 20 145 20,145 $ $ (5 005) (5,005) $ $ 848 848 $ $ 15 988 15,988 FY2009 and beyond. FY2009 d b d 9