Seeka Updates EBITDA Guidance

SEEKA UPDATES EBITDA GUIDANCE Seeka Limited [NZX:SEK] provides the following updates. 2019 New Zealand kiwifruit crop estimate Growing conditions in New Zealand have been dry through the late summer growing season. This lack of rainfall will have a positive effect on fruit quality, but a negative effect on fruit size. Seeka provides the following volume estimate for the 2019 season and will update the market on the completion of packing. Millions of Class 1 Tray equivalents; Hayward FY18 Actual = 19.2, FY19 Estimate = 18.2 SunGold FY18 Actual =10.8, FY19 Estimate 13.5 Other varieties FY18 Actual =0.3, FY19 Estimate 0.4 Total FY18 Actual =30.3, FY19 Estimate 32.1 Seeka is in the process of formalising arrangements with growers for the upcoming 2019 harvest. Grower Loyalty Share Scheme Seeka confirms its intention to launch the Grower Loyalty Share Scheme this month as previously announced and approved by Shareholders at a meeting on 14 February 2019. EBITDA guidance updated Seeka updates its previous guidance of EBITDA for FY2019 to a range of between $36.5m to $37.5m, from the previous guidance of between $27.5m and $28.5m. The increase is the result of the following matters [with the underlying earnings guidance unchanged]: Northland Orchard sales process As at 31 December 2018, Seeka had sold $7.0m of its Northland orchard portfolio releasing a $0.6m gain on sale. Subsequent sales of Seeka's Northland orchard portfolio that are either agreed or have settled relate to an aggregate total sum of $25.9m, representing a gain on sale of $4.2m, assuming all sales achieve settlement. Seeka continues to market the remaining unsold Northland portfolio valued at a total aggregate cost of $14.0m and no allowance for this is included in current guidance. Effect of accounting standard changes Seeka has adopted NZ IFRS 16, which changes the accounting treatment for leases held by Seeka, resulting in an increase to the FY2019 EBITDA of approximately $5.6m, along with an increase in depreciation and interest costs of $7.1m, resulting in a decrease in Seeka's net profit before tax of $1.5m. In the early years of adoption, the interest and depreciation cost will be more than the previous lease cost, and this effect will reverse over time. The cash cost of the lease is unchanged. Ends. For further information please contact: Michael Franks Seeka Chief Executive 021356516 Stuart McKinstry Seeka Chief Financial Officer 0212215583 End CA:00331802 For:SEK Type:MKTUPDTE Time:2019-03-12 09:34:03