Ann: ADDRESS: SAN: Sanford Limited - Annual Meeting Incoming...

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• Summary: ADDRESS: SAN: Sanford Limited - Annual Meeting Incoming Chairman Address
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17/12/2014 14:00
ADDRESS
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REL: 1400 HRS Sanford Limited

ADDRESS: SAN: Sanford Limited -  Annual Meeting Incoming Chairman Address

SANFORD LIMITED
SUSTAINABLE SEAFOOD

17 December 2014

Incoming Chairman, Paul Norling's Address
Sanford Annual Meeting
17 December 2014

I should take the opportunity as the incoming Chairman to make a few comments
about Sanford and the Board's perspective on the Company, its operations and
resources.

I must firstly say, however, that in respect to my upcoming leadership of
your board I am certainly stimulated not only by the opportunities that lie
in front of the company, but also, along with my board colleagues, working
with the Sanford management team to realise the potential that exists.

As I have commented in the past, the seafood industry can certainly be
challenging and none perhaps more so than Sanford with the extensive seafood
diversity associated with our range, types and locations of fishing and
farming activities - and an international selling market that traverses the
globe. We fish from the deepest southern oceans such as the Ross Sea where
we also undertake scientific resource survey activities in respect to
toothfish - and fish in a limited way for this sought after seafood delicacy
- through to the tropical pacific where we fish for tuna which can be very
volatile in terms of international commodity pricing and catch
predictability.

In between these two extremes we have New Zealand's exclusive economic zone
of some 4.4 million square kilometres being the fourth largest of any country
in the world.

Within this exclusive economic zone we are the largest quota holder with 23%
of New Zealand's total annual catch entitlement.  As you will be aware the
global wild catch resource is finite particularly so with overcatching still
occurring in some parts of the world - but not here in New Zealand where our
quota management system is working most effectively.

In addition to our extensive wild catch resource we have a substantial
footprint in NZ's aquaculture activities with over 200 mussel farms and
associated facilities. We process and sell around 40,000 greenweight tonnes
of Greenshell mussels per annum being approx. 40% of New Zealand's current
production. We also farm and sell a quarter of New Zealand's salmon which is
another outstanding product.

It is against the background of this quality resource portfolio that the
board is fully supportive of management's strategy and focus on reducing
Sanford's high dependency on commodity markets for selling, and also looking
to selectively build the Sanford brand with targeted value products into
niche markets.

This will not happen overnight - as over 80% of our current annual sales are
exported to our global customers - but it offers the potential for worthwhile
and more sustainable rewards over time.

Innovation will also be a very important component, and as our chief
executive has enunciated today we have two major projects in process that
have substantial value enhancing prospects when proven and fully implemented.

It will be apparent to you that our new management team led by Volker
Kuntzsch, clearly wants to lift the bar as far as our operations and results
are concerned. The board's support applies to all the strands of strategy
set out in this year's annual report, including the one of paramount
importance which is health and safety.

The health and safety of all people on Sanford sites or vessels etc is
extremely important and senior management of the company - with close
oversight from the board - has been working very hard and will continue to do
so to improve our processes wherever we can in this crucially important area.

Our objective is best practice in all aspects of health and safety and we
will continue reporting to you in this regard.

I should also say that both the board and management will be continuing to
look closely at our current cost of doing business to ensure we maximise our
operational efficiency and margin returns in every way that is sustainably
practical and effective.

In conclusion may I reassure you that we are very aware of the company's
earnings performance and again both the board and management team are on the
same page in this respect.  What we are looking for and working towards is a
meaningful and continuing improvement in shareholder returns.

Thank you all for your time and attention today, and on behalf of your board
we look forward to reporting to you on our progress 12 months from now.
End CA:00259030 For:SAN    Type:ADDRESS    Time:2014-12-17 14:00:07