Ann: Tassal Presentation - Bell Potter Home Grown Conference, page-3

My spreadsheet has fallen into a state of disrepair... from memory it was going to push cashflow pretty hard to expand to 20k in that time-frame without increasing debt, but there is a bit thats going on in this presentation;

"Prawns - Domestic prawn sales of c10,000 tonnes - with the abilityto expand to c20,000 tonnes should the market fundamentals ofthe international market dictate"

So they are saying 10k domestic, and 20k if they can get the export market going, the economics of which would have changed a lot due to increased freight (at least).

On slide 11 they say they can get to 7k with existing ponds, so the plans they have for expansion that we have seen would likely get them close to 10k without having to do much at all.

Perhaps changing interest rates is prompting them to prioritize free cashflow rather than putting it back into growth.

• "Tassal owns a significant portfolio of land and buildings. Provides capital flexibility withoption to undertake sale and leaseback if value maximising to shareholders" - Slide 9

• "In FY23 capex is expected to bec$50m" - Slide 11 (reduction of 30m)

I also note on slide 6, "Nitrogen caps in place for prawns",
I hadn't heard of the nitrogen caps for prawns, it makes sense on a per farm basis, but wouldnt think caps would limit competition as everyone is spaced out.

Good news with salmon though;
"Domestic Out-of-Home market is reflecting global price increases tosupport margin increases" and
"Domestic Retailers have accepted cost increases to allow margins tobe maintained in this market"