East 33 : Half year results and revised guidance

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FY22H1Results

FY22 Revised Guidance

February 2022

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Agenda

Business Update	03
FY22 First Half Discussion	07
FY22 full Year Results Outlook	10
About East 33	16

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	Company Outlook
	only	Key Points
		• Infrastructure investment has laid the foundation for strong future growth
	use	• Increase in oyster prices enabled by strong demand and supply shortfalls helped to recover operating cost movements
	•	Incremental labour has been secured to drive farming activities and to capture the reopening of the restaurant channel
		• Further increases in pricing are expected throughout CY2022
		• Inventory position and labour availability will enable ramp up in harvested volume
	personalr	• Removal of short run industry constraints associated with Covid will enable step change in financial performance
		Summary of First Half FY22
			1.	Solid year on year growth regardless of headwinds
			2. Step change in growth effectively delayed 12 months
			3.	Robust outlook for 2022/2023 season

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Business Update

Continued strong demand for Sydney Rock Oysters

• Demand for Sydney Rock oysters exceeds supply
• Prices for Sydney Rock oysters are increasing along the full value chain

Executing our Strategy

• Building a long term, sustainable, customer focused, profitable business
• The unique qualities of the Sydney Rock Oyster and continued strong demand underpins the East 33 long term growth strategy

Solid progress on business plan

• Implementation of clear plan to invest in improving efficiency, productivity, quality whilst reducing unit costs
• Developing a culture of continual improvement in all aspects of the business with an early focus on OH&S, production efficiencies and operating systems

We are encouraged with the robustness of our

market and core business opportunity

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Covid Impacts H1 2022
	Labour constraints impacted harvest volumes
use	• Nation wide labour shortages reduced our ability to harvest to maximum
inventory availability
Lockdowns reduced processing throughput
	• Sydney based lockdowns limited staff availably to process oysters during time
	sensitive weeks leading into Christmas rush
personalr	Restaurant closures changed sales channel mix

• Higher sales into lower value sales channel resulted in lower than anticipated average gross profit margins

Overall industry supply shortfall

• Unusually severe weather conditions negatively impact East 33 third party supply chain

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