Thursday, 17 April 2014

Announcement

ADDRESS: SGL: AGM Presentation

29 Oct 2012 10:30NZX
Speirs Group Limited
2012 Annual General Meeting
29 October 2012

Chairman''s Report:  Mr Keith Taylor
o Overview
- Focussed on rebuilding value
- Difficult trading conditions
- Disappointing results
But some progress made
- First Objective:

Mitigating Effects of Prior Issues:
- Sale of plant
- Leasing of Factory
- Monitoring worldwide sales of Omega 3 product
- Protecting put option on Allied Nationwide bonds
- Second Objective:
Rebuilding Speirs Foods Growth and Profitability

- Presentation to Speirs Group AGM
29 October 2012
Derek Walker, Chair, Speirs Foods Limited

o Market over the last 3 years has been tough - consumers spending less in
the supermarket deli overall has resulted in lower sales.
o We have arrested decline but 2012 affected by poor summer over key months
o Profit also impacted by some one off plant write-downs and higher insurance
costs

o Focus on plant efficiency has seen our ex factory margin improve.
o Lower sales volume means freight and overhead costs spread over lower
volume base absorbing gains from production efficiencies

- The Year Ahead
- Continued focus on building volume through new products and promoting
existing products
- Focus on development of "New, Fresh, Colorful, Flavorful Salads" with new
products accepted by two key supermarket groups
- Working with supermarkets to improve displays and in store promotion
- Continue to build presence in food service market

- Summary
- Work on sales has arrested declining trend and set base for growth
- Improvements in manufacturing have protected margin but need sales increase
to improve profitability
- Foods business generating reasonable cash flow but profitability needs to
improve
- Market still tough but we are working with supermarkets to raise the
profile of salad bar within their delis

- Third Objective
Seeking new business opportunities:
- Repurchase of Speirs Securities book
- Further vehicle fleet financing opportunities being pursued
- Fourth Objective
Rebuild Capital Base:
- Significant borrowings mature in 2013
- $679,000 of Perpetual Preference Shares issued in June 2013

- Board
- Keith Taylor (Chairman)
- Nelson Speirs
- Derek Walker

- Auditors
- KPMG appointed last year following tender process
- Board have confirmed their continued appointment for 2012/13
- Outlook
- Continued steady rebuilding
- No improvements in conditions
- Seeking new business opportunities
- Repayment/refinancing of maturing debt in late 2013
End CA:00228964 For:SGL    Type:ADDRESS    Time:2012-10-29 10:30:24
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