Okay, well, hello everyone, and thank you for joining Clean Seas Seafood's Full Year FY24 Results Webinar. My name is Rob Gratton, Clean Seas' CEO, and also on our call is CFO, David Di Blasio. You may have noticed that for security reasons, we've disabled microphones and video cameras. However, there will be an ability to ask questions at the end of the meeting. At that time, I'll ask that you raise your hand virtually if you'd like to ask a question. I'll also let you know that we're recording this presentation, and we'll be posting it to our website if you'd like to go back and have a look at another time. But for now, on with the presentation. In the past, we've spoken about challenging market conditions and increases in feed prices, and in response to these challenges in November last year, we announced an operating review and a placement to be used for working capital to facilitate the right sizing of the business operations and to execute on the key focus areas of the review. In many ways, the result that we are reporting today reflects the reasons why we undertook the operating review and justifies the decisions that we've made. The result is therefore largely as we expected, but promising in the way that fresh pricing has held up, and in the way that the changes that we've made have begun to show a positive impact in the second half of the year. Having acted strongly and decisively, it's encouraging that we're starting to see the benefits, particularly in our fish husbandry expenses and in cash flows, and we expect to see these positive signs continue in FY25 as we bed down our consolidated and simplified operational model. In my presentation today, I'll give an update on progress and outcomes from the operational review, and the changes to our farming footprint, and what we think this will deliver for Clean Seas. David will speak about our FY 24 results, and I will finish up on what you can expect to see looking ahead. FY 24 was a year of transition, where the financial results reflect the reasons why we conducted the operational review, but importantly start to demonstrate the benefits of that review. There's been a great deal of heavy lifting by the Clean Seas team, and we've made difficult decisions that have impacted some of our staff greatly. However, the operational review is on track to deliver a right-sized business with sales and production in equilibrium. This balance between sales and production limits the working capital, expense, and infrastructure requirements of a growth strategy, and we've already seen the financial benefits in the second half of the year. The business at this size allows us to continue to focus on what we do well, being the premium segments of markets in which we do business, and meant that we've been able to maintain resilient pricing in what remains a highly competitive trading environment. Fresh pricing, pricing at AUD 22.93 a kilo for FY 24 was maintained, versus the AUD 22.82 for FY 23, and we expect the fresh markets to be our focus in the year ahead. The overall price of AUD 21.90 a kilo reflects the clearance of frozen inventory, but this activity is largely complete, and we expect to see prices improve in the coming months. Our operating profit declined from AUD 1.21 a kilo in FY 23 to negative AUD 1.61 a kilo in FY 24. Largely as a result of feed prices, which reduced that profit by AUD 1.31 a kilo, and by the clearance of frozen inventory that I mentioned earlier, which impacted operating profit by AUD 1.47 a kilo. David will discuss feed prices in more detail shortly, but over the last couple of years, we've seen the price of feed escalate steeply, well above inflation, primarily due to the supply or short supply of fish meal and fish oil. Feed prices increased from AUD 2.50 a kilo in FY 21, to peak at AUD 3.80 a kilo in March this year, giving a weighted average price across FY 24 of AUD 3.64 a kilo. Those familiar with our kingfish will know that we use approximately 2.5 kilos of feed for every kilogram that we harvest. So an incremental dollar of feed price adds AUD 2.50 a kilo to our cost of goods sold, or in cashflow terms, that same dollar adds AUD 7.5 million to our feed expense. The good news is that we've seen feed prices decline since the peak, and we're currently placing orders for feed at circa FY 23 price levels. As I said earlier, the scope of our operational review was far-reaching. We restructured the organization, reducing employee and contractor numbers by about 25%. The biomass reduction reduced the number of cages on our farm by about the same proportion, and allowed us to consolidate our farming operations onto a single site, and we've worked hard to clear excess frozen inventory. While these changes had a significant impact on our FY 24 result, we're seeing the benefits beginning to deliver results. Our FY24 fish husbandry expense of AUD 36.4 million was AUD 5.3 million less than the AUD 41.7 million recorded in FY23, and we saw operating cash flow of negative AUD 0.5 million in half two of FY24, which was a substantial improvement on the negative AUD 8.9 million result in the first half of 2024, and importantly, better than the negative AUD 2 million that we saw in the same period last year. So the three big drivers of the result in FY24 were high feed prices, clearing frozen inventory, and then conducting and implementing the operational review. We can take confidence from the fact that feed prices have come down to FY23 levels and are still falling, that frozen inventory is halved and excess stock will be gone by next month, and that the operational review, including organizational restructure, biomass reduction, and farm consolidation, is now complete. I won't spend too long on this slide, but there were five key actions that came out of the operational review, all of which are either complete or on track. The planned biomass reduction was conducted through an accelerated harvest and sale of circa 560 tons into the fish protein market. This has already resulted in immediate savings in feed costs in the second half of the year. This new biomass level will support sales volumes in the most efficient manner and has allowed for the consolidation of farming activities. To facilitate the right sizing of the business operations and to execute on other key focus areas of the operational review, in FY24, we completed a placement of AUD 9.5 million, and following on from receiving that support from shareholders in December, we're able to renew our AUD 32.2 million bank facility with the Commonwealth Bank. The consolidation of farming footprint let us focus on costs, and as such, we're on track to achieve a reduction in fixed and variable operating costs in the years ahead. An organizational restructure was completed, and the reduction in the business's operational footprint significantly reduces the requirement for future investment in growth infrastructure, and we can instead focus on improvements in investments that drive safety, efficiency, and productivity. This is a good segue into the final item on this page, and I'll go into more detail on this, the commissioning of our new automated feed barge, on the following slide. So as I said before, with the need to invest in growth and scale up infrastructure not required in the short term, we see great opportunity to invest in infrastructure and automation that will improve safety, lower production costs, and promote operational stability. In previous years, we acquired larger vessels that will allow us to conduct our farming activities more efficiently. We invested in hatchery capacity to grow larger juveniles in greater numbers, and importantly, we committed to acquiring that new feed barge. I'm incredibly proud and excited to let you know that our new automated feed barge, the Eyre Spirit, has been constructed and has been delivered into Port Lincoln, ready for our deployment to our farms. Once operational, this new barge will allow us to dispense feed remotely, 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 missed feed days delivers the lowest feed conversion ratio, as growth in the fish is otherwise lost when feed is not dispensed. Also, feeding remotely from the office using automation involves the 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. Finally, automation essentially turns the entire farm into an R&D opportunity, allowing us to test feed practices, different diets, different ration curves to push for even greater performance over time. The Eyre Spirit 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 rather than by road. These bulk deliveries will greatly reduce the cost of freight and eliminate the double handling of our current feed deliveries. In every way, this acquisition is a game changer for Clean Seas, and once activated, circa 90% of Clean Seas' productive capacity will be automated across our current lease capacity, and critically, this barge provides a template for our future operating model. In conjunction with this development, latest generation biomass estimator cameras and artificial intelligence are to be rolled out across our farm in the coming months, allowing for more accurate assessment and less invasive assessment of fish weights. The cameras provide multiple benefits, including feeding efficiency, maintenance, support, and fish health monitoring. I've already spoken at length about the consolidation of our farming footprint, and so I thought I'd take a moment to show you what this looks like and describe the benefits that this will give. The map on screen at the moment shows what our farming footprint looked like before the operational review, with farming locations spread along the coast of the Eyre Peninsula, separated by some 300 kilometers. The distances involved and the lack of appropriate wharves and marinas in these remote locations to the north of Port Lincoln, added significant cost, operational complexity, and risk. As would be self-evident, the operating across multiple underutilized locations gives a higher cost and less leverage than operating at fewer, better-utilized locations. Compare and contrast this footprint to the following slide. This map on screen now is zoomed in on the greater Port Lincoln area and our farming sites in this region. The 300 km on the previous slides become 25 km, and the first thing to note is that all of the farming sites are within this distance from the Port Lincoln Marina, providing access to wharf infrastructure and within easy reach of Clean Seas maintenance and feed storage facilities. All of these farming sites can be managed by a single set of people and equipment. In consolidating our farming footprint, we've been able to set ourselves on a path to eliminate duplication, reducing our resource, infrastructure, and equipment requirements, and reducing the complexity that comes with managing multiple sites up and down the Eyre Peninsula. This new model is significantly more efficient operationally, as all activities, from the stocking of juveniles to grow-out, and then the harvest of our fish, are all conducted in the sites that you see here on the map. Fish can be stocked into either the Louth Bay or Bicker Isles sites and grown out to harvest size, and when they're ready for harvest, relocated to the central and sheltered Boston Bay site. The Louth Bay and Bicker Isles sites will both have automated feed barges on site. In the case of Louth, our new Eyre Spirit barge, with our existing Kingfish 5 barge being located at Bicker Isles. This will mean that some 90% of our fish will be fed remotely by these automated feed barges in the very near future and ahead of the next growing season, substantially bringing forward the benefits of automation versus our old farming model, which would have taken longer and required the investment in another barge in order for this to occur. The Boston Bay site is an ideal harvest location, being the most sheltered site and thus suitable for harvesting in most weather conditions, and being closest to the marina, it allows for the quickest transfer of harvested fish to the wharf, and so you can visually see on this map, the go-forward farming footprint is compact, efficient, utilizes capacity, and allows us to deploy and efficiently leverage our infrastructure and resources in a way that we think gives the best operational and financial outcome for the business. It's worth noting that we retained the leases on the previous page, and that there's no change to our land-based hatchery facility at Arno Bay. The Arno Bay marine leases will still have a role to play in facilitating the transfer of juvenile fish to Port Lincoln, a role they are well-suited to, given their proximity to our hatchery. Now, before handing over to David for a look at the financials, we'd like to give you an indication of what Clean Seas might look like financially as a result of the changes we're making. As you can see in this graph, current feed prices have risen faster than inflation, where a CPI-adjusted feed price would currently be about AUD 2.90 per kilogram. Prices have instead reached AUD 3.64 a kilo in FY24, which reflects the volatile market for fishmeal and fish oil, especially supply shortages in these key component ingredients. David will discuss shortly what this has meant for our result. However, the scenarios in the table present an illustrative view of the financial and operating metrics on a 3,000-ton farming footprint at varying feed prices and with a feed conversion ratio of 2.34. Scenario one in the table reflects FY 24 feed price and shows that with the benefit of a restructured business in place, and at 3,000 tons of sales and production, we would expect Clean Seas to be a profitable business, making EBITDA of around AUD 1.43 a kilo and AUD 4.3 million in total. However, as I said before, we think the volatility appears to have peaked, and recent evidence supports our current expectation for feed pricing to now continue to decline. Where feed pricing ultimately lands remains to be seen, but we can say is that with the benefits and cost savings of the operational review in place, we can see a faster pathway to EBITDA of AUD 2 and ultimately AUD 3 per kilogram, and it's clear that these initiatives will reposition Clean Seas as a stable, more resilient business for the current market environment. Reduced operating costs, infrastructure, and working capital requirements will drive stronger free cash flows, and by eliminating the need for future funding growth, EBITDA to operating cash flow conversion is expected to improve. So with that, I'll now hand over to David to speak to our result in more detail. Good morning, everyone, and thank you again for joining us this morning. Having joined Clean Seas in mid-June, and despite the challenging FY24, I'm very excited to be working with Rob, the board, the executive team, as well as the wider group of employees and contractors, all focused on improving the company's performance. While I'm sure there will be further challenges ahead, I firmly believe there are also many opportunities available that are importantly within our control. Onto the FY24 results, and beginning with the financial overview slide on page 8. Revenue fell slightly to AUD 68.8 million, despite higher volumes as a result of lower frozen prices, which I will discuss in further detail in a later slide. Post-farm gate costs increased by more than 3% growth in sales volumes, mainly as a result of higher freight costs. Cost of goods sold was impacted unfavorably by lower net growth, while indirect costs remained flat, and put together, this delivered an operating EBITDA loss of AUD 5.1 million or negative AUD 1.61 per kilogram of whole weight equivalent fish sold. The table headed operating EBITDA Bridge shows the main contributors to the decline in dollar per kilogram operating EBITDA as compared to the previous year. Underlying adjustments are comprised of three line items. First, the impairments announced at half year of AUD 2 million of frozen stock write-downs and AUD 10 million related to the 560 tons of accelerated harvest in December and January. Second, AASB 141 losses, combined with historic cost allocations totaling AUD 8.5 million, and third, non-recurring items of AUD 3.6 million, being operating costs incurred in FY24, associated with the organizational restructure and biomass reduction. When combined with the operating EBITDA loss, these underlying items, together with depreciation, amortization, and net interest costs, generated a statutory net loss of AUD 33.5 million. On to slide 9, covering revenue and sales volumes, and as noted, FY24 sales volumes of 3,141 tons were 3% higher than FY23. Australia remains a strong market for Clean Seas, with resilient volumes and pricing. Europe proved to be a challenging market in FY24, with increasing competition combined with global cost of living impacts and aging of frozen stock, leading Clean Seas to aggressively discount the stock in order to clear it. As previously mentioned, an impairment of AUD 2 million was taken at half year, writing the frozen stock on hand at that point in time down to net realizable value, with no further write-down necessary for the second half of FY24. North America and Asia showed mixed results for pricing and volumes, however, remain viable markets for new business opportunities. Sales mix and pricing are outlined on Slide 10. In FY24, the average realized sales price per kilogram of whole weight equivalent fish fell to AUD 21.90, from AUD 22.73 in FY23. However, this headline result only tells part of the story, with fresh pricing and volumes remaining robust in FY24. FY24 fresh pricing was marginally higher, with volumes marginally lower. FY24 frozen sales volumes increased to 550 tons of whole weight equivalent fish, from 420 tons in FY23. For reasons previously explained, pricing fell sharply to an average realized price per kilogram of just over AUD 17. Onto production costs, which is slide 11. The upper chart shows the trend of feed costs against average feed prices, highlighting the impact of the operational review and specifically the biomass reduction program on feed costs. As Rob noted earlier, feed order prices peaked in March 2024, with current orders placed around AUD 3.30 per kilogram of feed. In FY25, a review of feed diet, the introduction of the Eyre Spirit feed barge, and consolidated operations at Port Lincoln provide Clean Seas with several opportunities within our control to improve feed conversion and cost, notwithstanding any other benefits to feed costs that are generated from lower feed prices. Closing frozen inventory of 265 tons of whole weight equivalent is significantly lower than both the corresponding volume of 376 tons at the end of FY23, and the half-year figure of 530 tons. As the lower graph shows, monthly frozen production from October 2023 onwards, has been reduced significantly in order to prevent any reoccurrence of an overhang of frozen stock. Cash flows are summarized on slide 12, noting that FY24 cash flows were a pronounced tale of two halves, with operating cash flows in the second half of FY24, a large improvement on the first half as a result of the operational review, while also being an improvement on the corresponding period, the second half of FY23. In contrast, investing cash flows were skewed to the second half of FY24, with AUD 3.4 million expended versus AUD 2.9 million in the first half of the year. As noted on the slide, a large proportion of CapEx in FY24 related to the Eyre Spirit feed barge and associated infrastructure. Future capital investment is expected to remain at similar levels to FY24, excluding the feed barge. Projects that deliver improvements in safety, efficiency, and fish performance outcomes will be prioritized. Finally, onto funding on slide 13. Net debt increased by AUD 10.1 million over FY24, and by AUD 4.1 million since half year. Gearing at the end of the year was 24%. The lower ending biomass for FY24, and the resultant sales volume outlook of 2,600 to 2,800 tons in FY25, are expected to result in similar gearing levels in FY25. And with that, I'll now hand back to Rob. Great. Thank you, David, so for the rest of the year, our goal will be to continue to leverage our premium market channels and positioning in order to maintain pricing. As David mentioned, we're targeting sales volumes in the 2,600-2,800 ton range for FY25, which is in line with previous guidance, and this is a level that we think supply will be below what the premium market will demand. As a result of this, and the elimination of frozen clearance sales in Q1 FY25, the average pricing is expected to improve versus the AUD 21.90 achieved in FY24. It's also noted earlier, feed prices have eased from record highs of AUD 380 a kilo in March 2024, with current feed orders placed at AUD 330 a kilo. Indications from our feed suppliers is that supply shortage that resulting from the constrained Peruvian anchovy catch is easing, and that further price reductions are expected in the second half of FY 25. The savings achieved through our consolidated farming footprint are expected to continue in FY 25, as the benefits of a more efficient operating model are further realized. This model will be enhanced by the deployment of the Eyre Spirit, bringing automated feeding to 90% of our farm. So while FY 25 was an extremely challenging year operationally, and this is reflected in the financial result, we can see the positives emerging across price, cost, profitability, and cash flows, and importantly, operationally, as the benefits of our new model and the investments that we have made become more apparent. So I'm gonna leave on that note and ask that.. If you ask, if anyone has any questions, please raise your hand virtually, if you'd like to ask a question. Okay, just give it another moment or two. Any questions? Well, in that case, just, on behalf of David and myself, I'd like to thank you very much. Oh, nope, here's a question. Yeah, Mark, hello there. Get you to unmute if you want to ask a question, Mark. We've got a problem letting Mark... Mark, can you hear us? Sorry, Mark. I can't hear you, and I can't unmute you for some reason. No, it looks like we've got a technical problem there. Well, I'm certainly happy to take any questions by email, or phone, Andrew Angus, our advisor, his contact details are on the bottom of the release as well. So yes, please send any questions through, but otherwise, thank you for joining today. Nice to speak to you today about Clean Seas. We'll leave the meeting there.
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