Well, hello, everyone, and welcome to Clean Seas FY 2023 Results Presentation. My name is Robert Gratton, Clean Seas CEO, and today we'll also be hearing from our CFO, David Brown. It's a great pleasure to present these results to you today, being a clear representation of our team's achievements over the last three years and confirmation of our strong belief in the viability of our financial model. We report today positive cash flows and an unprecedented operating profit for Clean Seas. We continue to see and benefit from the emergence and growing awareness and acceptance of Yellowtail Kingfish in markets around the world, and our sales team have done an excellent job to reinforce the commercial messaging, highlighting the quality, culinary flexibility, and Spencer Gulf provenance of our fish. As we continue to see customers and consumers becoming more cognizant of their environmental impacts of their purchasing decisions, our unique proposition of growing a native fish in its natural waters, utilizing our best practice, liquid nitrogen supply chain to deliver a high-quality frozen product to our export markets, is becoming increasingly sought after and is a key component of our commercial positioning. While building brand awareness, revenue and pricing has been an important part of our profit outcome, our ability to achieve and maintain optimal live fish biomass and frozen inventory has helped us offset rising feed prices and substantially reduce the carrying cost of excess inventory. In FY 2022, we made the decision to clear excess frozen inventory, which helped reduce storage costs and boosted our cash flows. With this inventory cleared, FY 2023 then benefited from higher prices as we're able to transition away from discounted clearance sales to full price sales. We see the benefits of a balanced biomass in our improved feed conversion ratio, being the amount of feed it takes us to grow a kilogram of Kingfish. We achieved our best feed conversion ratio since 2018, and with the benefits of our automated feed barge still to come, we're expecting further improvements in fish performance in the coming years. So in summary, building our markets and pricing and being more efficient with our costs has resulted in a substantial turnaround in our operating profitability, positive cash flows, and delivered a record revenue, and Dave will go into further details shortly. We've also continued to make good progress on our sustainability agenda, with work progressing... Sorry. With work progressing on new feed ingredients aimed at reducing the marine-based content of our feed, and through our partnership with CH4 Global on Asparagopsis, continue to work on a project that may, in time, reduce the carbon and nitrogen footprint of our farms. We continue to see, with Clean Seas, a considerable opportunity for future expansion of our incredible fish, and with our improved financial performance, we have maintained our strong and enabling balance sheet to support our future ambitions. So I'll now hand over to our CFO, David Brown, to speak to the numbers in more detail. Thanks, Rob. Good afternoon, ladies and gentlemen. Today, I'm delighted to present an overview of Clean Seas' FY 2023 financial results. The company's efforts over the past three years have led to a remarkable turnaround, and this is paving a way for a promising future. Clean Seas has achieved substantial improvement in profitability through the successful execution of the FY 2021 to FY 2023 turnaround strategy. This strategy has transformed the company into a profitable business, generating positive operating EBITDA and operating cash flows. The noteworthy achievements in FY 2023 include our impressive gross profit of AUD 4.83 /kg and underlying operating EBITDA of AUD 1.21/ kg. These results clearly indicate the effectiveness of the turnaround strategy. One of the key contributors to the success has been the focus on enhancing revenue and farm gate per kilo, which has led to a substantial 29% and 26% increase respectively. Clean Seas has managed to achieve greater efficiency in various aspects of our operations, which has resulted in improvements in our feed conversion ratio to 2.43, which helped partially counteract the increase in feed price. The company's transition away from surplus frozen inventory resulted in a 19% reduction in total sales volumes when compared to FY 2022, and demonstrates Clean Seas' commitment to aligning its operations with improved working capital management, which will generate consistent long-term profitability. Harvest volumes increased to 3,354 tons, marking a substantial 15% increase on FY 2022, and importantly, this result falls within our projected harvest guidelines. In terms of revenue, Clean Seas experienced a 5% increase to AUD 69.4 million in FY 2023. A standout feature of this result was the growth in revenue per kilo, which surged 29%. Total FY 2023 sales volumes reached 3,054 tons, which was a reduction of 19% when compared to FY 2022, and reflects our transition away from surplus frozen inventory. Importantly, Clean Seas experienced a 3% increase in fresh volumes in FY 2023, reflecting the resilient demand for Clean Seas Kingfish in restaurant and food service sectors. The decline in revenue and sales volumes across Europe and North America reflects this, the decrease in availability of frozen inventory. This shift has led to a change in mix, with a greater emphasis on fresh products in both regions. Australian FY 2023 sales volumes decreased by 5%. This slight reduction in total sales volumes is largely due to a one-off sale of 150 tons of frozen clearance inventory in FY 2022. The fresh Australian business continued its growth in FY 2023, increasing by 4%, and coupled with the significant growth in pricing, the Australian business was able to completely offset the reduction in frozen revenue from other regions. The record revenue achievement of AUD 69.4 million was positively impacted by sales mix and pricing improvements in FY 2023. This outcome underscores the advantages derived from geographical and product diversification, which proved to be highly effective and yielded impressive outcomes during the financial year, including the 19% growth in fresh revenue per kilo to a record AUD 22.82. Despite limited frozen inventory, the demand for premium frozen products remained strong, leading to a 58% surge in frozen revenue per kilo, reaching AUD 22.18. Importantly, we have observed the pricing difference between our fresh and frozen products decline to the lowest levels in five years. The significant fluctuations observed over the last, the previous four years can be attributed to the consequences of holding excess inventory and price reductions experienced during the pandemic. Despite inflationary pressures impacting feed, labor, electricity, and fuel costs, Clean Seas managed to partially counteract these challenges through more efficient farming, which delivered an improvement in FCR to our best result in the past five years. In FY 2023, Clean Seas benefited from the work completed to reduce the time taken to grow Kingfish to harvest weight by bringing forward the class cut-over date. In FY 2023, Clean Seas transitioned year classes in March 2023, and as a result, we observed FCR improvements. The rising cost of feed put pressure on Clean Seas' production cost base, with the average cost of feed increasing by 22% to AUD 3.22/kg. Given feed accounts for approximately 60% of total production costs and has remained persistently high, Clean Seas has made a strategic investment in a new automated feed barge, which will transform the feeding process at our Arno Bay farm site. The group's investment in the new feed barge reflects our commitment to innovation, which is projected to yield cost savings, improve feed conversion ratios, and enhance our overall profitability. Cash flow management was another area of excellence in FY 2023, with cash receipts increasing to AUD 69.6 million, representing a 3% increase over FY 2022. Clean Seas did experience an increase of 18% in payments to employees, which was driven by a tight labor market and a growing biomass. While feed payments increased by 23%, driven by the growth in the biomass and a 21% increase in average feed costs. Despite these cost challenges, Clean Seas generated positive operating cash flows of AUD 1.5 million, marking our second consecutive year of positive operating cash flows. Clean Seas continued to reinvest in the business, and capital expenditure was approximately AUD 5 million in FY 2023, and comprised AUD 2 million for growth projects and AUD 3 million for maintenance. As announced in FY 2023, Clean Seas' investment in the feed barge and associated operating systems is expected to be approximately AUD 5.7 million, of which AUD 4.5 million will be paid in FY 2024. Clean Seas' financial stability and prudent debt management remained at the forefront during FY 2023 and has reflected in our net debt position of AUD 241,000, inclusive of leases. While the renewal of our financing facility with CBA of AUD 32.2 million underscores our solid financial position. Importantly, as at 30 June 2023, Clean Seas had undrawn bank facilities of AUD 27.4 million and cash of AUD 6.4 million, which provides sufficient headroom to fund working capital and planned capital investment projects. Clean Seas' performance in FY 2023 illustrates a remarkable journey of transformation. Our strategic efforts, revenue growth, cost management, have steered us towards a path of sustained profitability and growth. The achievement of positive operating cash flows, improved gross profit, and enhanced EBITDA underscores our commitment to creating value for our shareholders, and we look forward to building upon this momentum and achieving even greater heights in the future. So thank you, and I'll pass now back to Rob. Great. Thank you, David. While we sell all of our fish through wholesalers and do not sell directly to restaurants or end customers, we maintain a sales team for Australia, Europe, and North America and Asia. This allows us to be very targeted and consistent in our approach, and having a strong link from customer to Clean Seas, as the producer, has helped to drive worldwide demand for our Kingfish. This, in turn, has allowed us to maintain strong pricing despite increased worldwide competition. This structure has also helped us bring certain functions in-house and build efficiencies into our export supply chain to better service customers and improve our margins. In this respect, we've streamlined our importation processes into North America, providing better access to customers and improving our speed to market, allowing us to communicate our provenance story directly and positioning us better for future growth. While our black and white Spencer Gulf Kingfish branding remains our premium position in market, the mid-tier and more competitively priced South Australian Yellowtail brand has helped us push into independent and specialty retailers in Australia and North America, underpinning our ambition to give a high-quality alternative to consumers of salmon and tuna. Effective relationships and collaborations with restaurants and sushi chain retailers continues to deliver strong performance from our high-end food service business across all markets, despite growing competition. And once again, our unique positioning is our great competitive advantage and central to our commercial messaging. Moving now to ESG. Our ambition is to build a strong on our reputation for sustainable practices, leveraging our unique Spencer Gulf provenance story of growing a native fish in its natural waters. While the benefits of these attributes are self-evident, we are very aware of the challenges being faced in other industries around the world. We are determined not to rest on our laurels, but rather work to build on our position of strength and safeguard our competitive advantage in the future. This year, we developed our ESG priorities, including the establishment of a reporting framework, selecting a platform that can assist us in preparing our ESG report, and engaging with a reputable third party to assist us in calculating our greenhouse gas emissions, ensuring credibility, accuracy, and compliance with relevant legislation. As I touched on earlier, in FY 2023, we also ran a successful trial to substitute the marine oil in our diet with sustainably sourced algal oil. In this trial, up to 100% of the fish oil in the diet was replaced with algal oil without materially impacting the taste, health, or performance of our Kingfish. As a result of this trial, algal oil has now been incorporated into our production diet. The expectation that this will continue and evolve into more sustainable diets in the future. As we've spoken about in the past, and David mentioned, we see great opportunity as we grow the business to invest in infrastructure and automation that will lower production costs, promote operational stability, and unlock productive capacity. This year, we acquired larger vessels that will allow us to conduct our farming activities more efficiently. We invested in the hatchery capacity to grow larger fingerlings in greater numbers, and importantly, we committed to acquiring the new feed barge, which is currently under construction and expected to be delivered in early 2024. Once operational, this new barge will allow us to dispense feed remotely at our Arno Bay farm site, regardless of the weather, thus reducing the variability and increased cost of production that comes with missed feed days. In actual fact, the improvement in performance as a result of this infrastructure is multifaceted. Avoiding missing feed days delivers the lowest feed conversion ratio, as growth in the fish is otherwise lost when feed is not delivered. Also, feeding remotely from the office using automation involves use of high-definition cameras, which allows the operator to dispense feed while the fish are taking it, but to stop immediately once the feeding response subsides. This reduces wasted feed and reduces cost. And finally, automation essentially turns the entire farm into an R&D opportunity, allowing us to test feed practices, different diets, and various ration curves to push for greater performance over time. The barge also has the capacity to receive and store 650 tons of feed at sea, which can be delivered directly on board via ocean transshipment from the feed mill in Tasmania rather than by road. These bulk deliveries greatly reduce the cost of freight and eliminates the double handling of our current feed deliveries. In every way, this acquisition is a game changer for Clean Seas, and once activated, 4,850 tons of our productive capacity will be automated across the current lease capacity of 10,850 tons. And critically, this barge provides a template for our future growth. This year, we expect to continue this investment in technology and automation, providing scalability to expand production while managing operational and financial risk. We will continue to push our commercial positioning, building awareness and channel diversification by highlighting the outstanding quality, culinary flexibility, and unique provenance story of our ocean farmed Yellowtail Kingfish. We expect pricing and demand to remain strong, maintaining harvest volumes in the range of 10%-15% above FY 2023. And with our live fish biomass remaining in balance, we expect to be able to drive further efficiencies on farm and deliver improvements in the performance of our fish to offset input cost pressures. Our investment plan will continue to support our strategy to reduce cost of production, deliver operational and financial consistency, and push to unlock future production within our licenses, 10,000 tons of capacity. By investing in the business in this way and reinvesting, we believe we can give shareholders a greater return, with future dividends considered from surplus retained profits and cash flows in the years to come. So that really concludes our presentation today. Very grateful for you joining us, and we've been happy to take any questions you might have. Yeah, John, got a question? Jonathan Snape there. Yeah, thanks. Can I ask just a couple? First of all, can you just talk through, you know, I guess the harvest volumes are up, sales volumes weren't. There's some inventory accumulation in this year's number in the frozen stock. I mean, how should I be thinking about next year? If you're going to grow the harvest volumes again by 10%-15%, you know, that would seem to imply, unless you're going to keep building inventories, that you'd be thinking double-digit volume growth in 2024. Is that the way we should be thinking about it? Yeah, Jonathan, we haven't given guidance in that respect, but I'd say your math works. Look, we have deliberately built a little bit of frozen inventory this year, as you said. Typically, we've said in the past we'd like to keep maybe four months of frozen inventory cover, a month in the factory here in Adelaide, two months on the water in shipping containers, and a month in market. So that probably gets us back to, you know, I guess, a sort of, you know, where we'd like to be in terms of that four months cover. And so, yes, you know, with the increased biomass and with the frozen inventory, you know, in market and ready to sell, I think your math works. Okay. And if I look at, you know, you and your competitor both had pretty big price increases or big increases in average selling price this year in what looked like was a fairly constrained supply side dynamic. You've got volume coming on, they've got volume coming on. How do you think the market absorbs the volume in a pricing sense? I mean, you seem pretty optimistic you're going to hold fairly high price points next year. ... Yeah, look, I think this comes down to our sales function and how we talk about the, you know, the provenance and attributes of our fish. It's worth, you know, casting mind back to, you know, pre-pandemic, where we were probably much more focused on the high-end restaurants and that segment of the market. And our average selling price was AUD 17.50 a kg. You know, here we are today at AUD 23 in a, you know, arguably a more diverse market offering. And that's because I think we've done a great job of talking about those attributes, you know, offering choice to customers and consumers and talking about the, you know, Spencer Gulf provenance story. And I think that's what it comes down to. You know, the fish itself is worthy of that price point, in terms of how you can prepare it, how you can, you know, sort of serve it up, either at home or in a restaurant. And so, you know, creating that link back to the producer and telling the story, I think is critical. And certainly, you know, for us, this is not a, you know, a market share play. This is about, you know, trial and awareness and getting out and telling the story of the fish. And look, maybe feeding into this just one last one. Last week, China banned imports of... or we're going to stop importing seafood from Japan after the comments around putting, you know, the radioactive affected water into the Pacific. And I think there's been quite a bit of hoarding of other commodities in the region around the coronavirus. Have you had any inbound interest from potential Asian customers for your product? I know this is a pretty small component of your business, but have you seen anything on the back of that? Yeah, definitely. And seeing that sort of translate into a bit of interest, it's hard to sort of say with that particular situation, how much of that sort of scientific versus political, I suppose. Yeah. But yeah, in the meantime, whatever it is, we've certainly seen that translate into stronger inbound inquiries from China. Great. Thanks, guys. Very good. Take any other questions there may be? Well, if that's the case, certainly grateful and for people joining. Thanks for your time and obviously look forward to keeping you updated and hearing any other questions you may have. But we might sign off there and wish you a good afternoon. Thank you, everyone. Thanks, all.
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