2017 ANNUAL REPORT Annual Report 2016/17 1 WELCOME WELCOME 2 Seafl ower Group of Companies WELCOME WELCOME Annual Report 2016/17 3 A Culture of Excellence 4 Seaflower Group of Companies Excellence OUR VISION OUR MISSION OUR CORE VALUES To be a leader in catching, To exploit the allocated quotas • Accountability processing and marketing in a sustainable manner while • Innovation Namibian fi sh products in the ensuring maximum gain for our • Customer care local and international markets. shareholders, employees and • Integrity the Namibian economy. • Excellence • Teamwork Annual Report 2016/17 5 Protecting the natural environment is not only benefi cial to the community at large, it is also crucial for Seafl ower’s long-term success. Increasing production over time to meet growing customer demand can only be achieved if we preserve the marine environment for future generations. Lobster Fishery We catch and process the West Coast Rock Lobster (Jasus Lalandii). Hake Fishery By chartering our vessels The hake fi shery makes up to fi shermen from the the main production in our community and running company and plays a major role the only operational in terms of employment, value lobster-processing factory addition, export earnings, socio- in Lüderitz, we add value The Wave Of Quality economic contribution and and create employment in our community. By fi shing the nutrient rich investment. Our trawlers catch Benguela Current along Merluccius capensis, one of two Namibia’s coastline, we are able hake species found in Namibian to consistently produce hake and waters. lobster products of the highest quality. Namibian lobster is counted among the best in the world. 6 Seafl ower Group of Companies Our Services & Processes in Brief Export Markets Our hake and lobster products are very competitive in international markets because Lobster Products of their high quality. Europe is the main export market for Our lobster-processing factory our high value hake products, is equipped to prepare live while South Africa receives lobsters for shipping as well as the highest volumes of hake produce whole cooked lobster, products. Our lobster products whole raw frozen lobster and are exported primarily to Hong lobster tails. Kong and Japan. Hake Products Our factory processes hake into a wide variety of high quality products, including fi llets, loins, centres, belly fl aps, baby hake and mince. Annual Report 2016/17 7 56 8 Seaflower Group of Companies Contents OVERVIEW 04 A Culture of Excellence 04 Our Services & Processes in Brief 10 Our Proud Fishing History 12 Company Overview LEADERSHIP AND CORPORATE GOVERNANCE 14 Board of Directors 16 Management Team 18 A Word from our Chairman 22 A Word from our Chief Executive Offi cer OUR DEPARTMENTS 34 Fleet & Maintenance 36 Production 38 IT, Electrical, Electronics & Refrigeration 40 Sales & Cold Store 42 Quality Assurance 44 Human Resources CORPORATE SOCIAL INITIATIVES 50 Fish Donations 50 Community Development, Education & Empowerment 50 Bursaries ANNUAL FINANCIAL STATEMENTS 52 Group & Company Annual Financial Statements for the Year Ended 30 September 2017 Annual Report 2016/17 9 Proud History Exciti ng Future We are proud of our history, passionate about our industry and excited about our future. The National Fishing Corporation of Namibia (FISHCOR) was founded on 27 December 1991 in accordance with the National Fishing Corporation of Namibia Act, 1991 (Act No. 28 of 1991), which paved the way for the establishment of the subsidiaries Seafl ower Lobster Corporation Ltd and Seafl ower Whitefi sh Corporation Ltd. FISHCOR is a holding company, as the two subsidiaries are responsible for the catching, processing and marketing of fi sh and fi shery products. 10 Fresh from the sea Annual Report 2016/17 11 National Fishing Corporation of Namibia FISHCOR 40% 100% 78% Seafl ower Seafl ower Seafl ower Regional Pelagic Lobster WhiteFish 22% Governor’s Processing Corporation Corporation Trust (RGT) 66% 51% NAMROCK Seacope 12 Seafl ower Group of Companies SEAFLOWER LOBSTER SEAFLOWER WHITEFISH SEAFLOWER PELAGIC SEACOPE FREEZER CORPORATION CORPORATION PROCESSING (PTY) LTD FISHING (PTY) LTD LIMITED (SLC) LIMITED (SWC) Established in 2017, On 7 April 1993, Seafl ower Seafl ower Whitefi sh Established in 2004, Seacope Seafl ower Pelagic Processing Lobster Corporation Limited Corporation Limited (SWC) Freezer Fishing (Pty) Ltd (Pty) Ltd (SPP) is a subsidiary (SLC) became a wholly owned was established in 1994 as (Seacope) is a subsidiary of the National Fishing subsidiary of FISHCOR. The the main vehicle for FISHCOR of Seafl ower Whitefi sh Corporation of Namibia company owns and operates to participate in the hake Corporation Limited, which (Fishcor), which holds 40% six lobster vessels as well as fi shery, thereby creating holds 51% equity interest. equity interest. The Angolan- a lobster processing facility in employment in Lüderitz and based African Selection Lüderitz. promoting investment in the The Spanish fi shing company Trust (AST), which has fi shing industry. Copemar, which has been been active in the fi shing SLC is also a 66% active in the Namibian fi shing industry since 2004, owns the shareholder of the NAMROCK SWC is the main operator industry since 1978, owns remaining 60% through its brand, through which lobster for the group, representing the remaining 49%. Seacope Namibian company, African products are marketed. approximately 90% of total utilises the hake freezer Selection Fishing Namibia SLC is the only company revenue, investment and quota allocated to Seafl ower. (Pty) Ltd. SPP will utilise that processes lobster in employment. FISHCOR owns the horse mackerel quota Namibia, as the size of the 78% of the company, and the The freezer vessel MFV allocated to Fishcor. Two Total Allowable Catch (TAC) Governor’s Trust owns the Pemba Bay, which employs RSW trawlers will supply raw for this fi shery is too small remaining 22%. 54 people off -shore, catches material to SPP’s on-shore to sustainably accommodate and processes the products. horse mackerel processing more factories. The lobster SWC owns and operates a The company’s products factory in Walvis Bay. Upon operation runs for 6 months wet fi sh processing facility are marketed through the completion, the factory every year and employs 53 in Lüderitz and three wet Seacope brand and exported will be the largest on-shore workers on a seasonal basis hake trawlers, which supply mainly to Spain. pelagic processing factory and 4 on a permanent basis. the factory with fi sh. The in Sub-Saharan Africa, workforce consists of 548 and is expected to employ on-shore and off -shore approximately 700 on-shore employees. The company’s and off -shore employees. The products are marketed company’s products will be through the Seafl ower brand, marketed through the SPP which is prominent and well brand and sold in the local received in international and African markets. markets, because of the high quality associated with its products. Annual Report 2016/17 13 Leadership and Corporate Governance James Hatuikulipi Hon. Usko Nghaamwa Chairperson Hon. Sirkka Ausiku Board composition Board responsibilities The Board of Directors consists of six directors. The Board of Directors is responsible for managing, The Permanent Secretary of Fisheries and Marine controlling, supervising, evaluating and reviewing Resources is an (ex-officio) member of the Board, the affairs of FISHCOR. This includes overseeing as per the National Fishing Corporation of Namibia internal financial controls that are designed to Act, 1991 (Act No. 28 of 1991). The term of the provide reasonable, but not absolute, assurance current Board of Directors is three (3) years, against material mismanagement and loss. effective from 1 May 2017. The members of the Board are appointed by the Minister of Fisheries and Marine Resources in concurrence with Cabinet, in terms of Article 41 of the Namibian Constitution. 14 Seaflower Group of Companies Clareta Gamses Ndaendomwenyo Dr. Moses Dr. Bennet Kangumu (Resigned) Sheya Maurihungirire Board committees Board meeting attendance The Board has an HR Committee and an Audit Board meetings are set to ensure that Board and Committee. The HR Committee consists of Ms. Committee members can contribute their expertise Ndaendomwenyo Sheya, Dr. Bennett Kangumu, and judgment to the aff airs of the company by and Honourable Sirkka Ausiku. The members of attending and participating in Board and Committee the Audit Committee are Ms. Claretha Gamses, meetings. The Board meets on a quarterly basis, Honourable Usko Nghaamwa, and Dr. Moses totalling four (4) meetings per year. During the Maurihungirire. period under review, the Board members attended all meetings of the Board and the Committees on which they serve. Annual Report 2016/17 15 Our Management Team OurMike Nghipunya Management Team Group CEO Inocenio Verde Paulus Ngalangi CA [Nam] Group GM - Operations Group GM - Finance Through its visionary and break- through leadership, our executive management team ensures the long-term profi tability and sustainability of the Seafl ower Group of Companies. 16 Seafl ower Group of Companies Our dedicated management team works tirelessly to make sure that all aspects of our operations run smoothly – from fl eet management to the Our Managementproduction Team process and sales. Josefi na Nekongo Company Secretary Carol Brendell Morne Lambert Megan Agene Manager: Sales & Cold Store Manager: Electrical, Electronics, Manager: Quality Assurance IT & Refrigeration Fredricka Davids Eduardo Ferreira Mansweta Joseph Manager: