Tassal : FY 2017 – Investor Relations Presentation

Tassal Group Limited FY2017 Results Mark Ryan, Managing Director & CEO Andrew Creswell, CFO 23 August 2017

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A record result underpinned by Tassal's focus on sustainability "The essence of sustainable development is that today's generations meet their needs without prejudicing future generations' ability to meet theirs."

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• Favourable salmon pricing in wholesale and export markets

  • Local and global salmon stocks adversely affected by environmental factors in CY2016

    - leading to lower harvests, smaller fish and increased costs of growing

  • More than offset by significantly higher salmon prices - historical highs for the domestic wholesale market and are anticipated to continue in FY2018

• Favourable growing conditions allowed a focus on optimising biomass and size

  • Salmon was kept in the water longer to optimise growth and deliver optimised margins

  • 'Step change' in underlying biomass achieved - 21,760 tonnes (30 June 2017) vs 15,164 tonnes (30 June 2016)

  • Increased fish size - fish size harvested by the end of FY2017 c4.8kg hog and forecast to improve in FY2018

• Sales mix managed to optimise returns and deliver growing earnings

  • Lowered retail sales to around 52% of total sales (FY2016: 68%)

  • Total salmon revenue up 3.5%, while volume down (6.2%). Average selling ($/hog kg) price up 10.4%

  • Operational EBITDA up 8.3% to $89.0m (FY2016: $82.2 million)

• De Costi Seafoods driving seafood sales and category growth

  • Successful integration now leading to increasing returns

  • EBITDA up 11.4% to $12.7 million (FY2016: $11.4 million). Acquired on a sustainable EBITDA of $10 million

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• Increased scrutiny of Salmon farming in Tasmania

  • Tassal welcomes increased scrutiny and constructive dialogue

• Maintained Aquaculture Stewardship Council (ASC) certification for all harvest fish

  • Also strengthened partnership with WWF-Australia

• Macquarie Harbour is recovering

  • Since May 2017 all leases in Macquarie Harbour returned to compliance and in-fauna abundance is returning

• Tassal continues to evolve practices

  • Lessons learned will improve future performance

• Maintained commitment to sustainable reporting

  • Reporting to Global Reporting Initiative (GRI) framework

• Successful capital raising

  • $82.3 million (net of fees) raised in March 2017

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