Leroy Seafood Group ASA · OSL:LSG
Leroy Seafood Group ASA — Lerøy Seafood Group — Q3 2005 Earnings Presentation
42 slides from Leroy Seafood Group ASA's earnings presentation, Nov 10, 2005
Slide 1: Lerøy Seafood Group Quarterly report 3rd Quarter 2005
Lerøy Seafood Group • Quarterly report • 3rd Quarter 2005 • November 10th 2005 • Ole-Eirik Lerøy President & CEO • Helge Singelstad Vice president & vice CEO
Slide 2: Agenda
Agenda 1.1 Considerations 2.2 Key financial figures Q3 2005 3.3 Lerøy at a glance 4.4 Lerøy Seafood Group – Company profile 5.5 Market glance
Slide 3: Internal considerations Q3 2005
Internal considerations Q3 2005 Main figures All figures in mill NOK Q3-05 Q3-04 Change YTD-05 YTD-04 Change Turnover 940 872 7,8 % 2 622 2 580 1,6 % Operating profit 121 41 195,1 % 226 98 130,6 % Affiliated comp. 28 15 86,7 % 47 20 135,0 % Pre-tax profit 143 52 175,0 % 260 106 145,3 %
Slide 4: Internal considerations 3rd Quarter 2005
Internal considerations 3rd Quarter 2005 • Financially Solid • Well positioned for future organic and strategic growth • 3.073 shareholders as of 31. October 2005 • Consolidated business areas • Satisfactory operation in production • Considerable improvement potential in recent acquired business • D
Slide 5: External considerations 3rd Quarter 2005
External considerations 3rd Quarter 2005 • Improved salmon and trout prices • Prices continued to increase in Q3 05 as expected • Prices in Q3 05 higher than comparable figures in Q3 04 • Prices so far in Q4 05 significantly higher than prices in Q4 04 • Strong market • Currencies • Future will brin
Slide 6: Agenda
Agenda 1.2 Key financial figures Q3 2005 2.3 Lerøy at a glance 3.4 Lerøy Seafood Group – Company profile 4.5 Market glance
Slide 7: Resultatregnskap / Income Statement Q3 2005
Resultatregnskap / Income Statement Q3 2005 Alle tall i NOK 1.000 / All figures in NOK 1,000 Q3 - 2005 Q3 - 2004 YTD 2005 YTD 2004 2004 Salgsinntekter / Operating revenue 940 458 871 779 2 621 525 2 580 432 3 559 399 Vareforbruk / Cost of goods sold 727 015 740 533 2 129 215 2 207 805 3 033 920 Just
Slide 8: Balanse / Balance Sheet Q3 2005
Balanse / Balance Sheet Q3 2005 Alle tall i NOK 1.000 / All figures in NOK 1,000 30.09.05 30.09.04 31.12.04 Immaterielle eiendeler / Intangible assets 434 383 274 241 287 237 Varige driftsmidler / Tangible fixed assets 270 388 182 367 193 139 Finansielle anleggsmidler / Financial fixed assets 307 15
Slide 9: Balanse / Balance Sheet Q3 2005
Balanse / Balance Sheet Q3 2005 Alle tall i NOK 1.000 / All figures in NOK 1,000 30.09.05 30.09.04 31.12.04 Innskutt egenkapital / Equity contributions 852 887 656 113 656 103 Opptjent egenkapital / Earned equity 309 880 144 563 152 056 Minoritetsinteresser / Minority interests 3 713 7 579 4 106 Sum
Slide 10: Key figures – Q3 2005
Key figures – Lerøy Seafood Group Q3 2005 Nøkkeltall / Key figures Q3 - 2005 Q3 - 2004 YTD 2005 YTD 2004 Resultatmargin / Profit margin 15,23 % 5,99 % 9,93 % 4,10 % Driftsmargin / Operating margin 12,85 % 4,72 % 8,61 % 3,82 % Resultat per aksje / Earnings per share 2,83 1,04 5,40 2,21 Utvannet resul
Slide 11: Lerøy Seafood Group segment information Q3 2005
Lerøy Seafood Group segment information Q3 2005 Book value Operating profit Sales and distribution 231 56 Production 569 176 Elimination / Others 63 -6* Total 863 226 Finance -12 Affiliates 303 47 Total equity LSG group / pre tax 1 166 260 * See note 5, options
Slide 12: Lerøy Seafood Group - salmon farming
Lerøy Seafood Group - salmon farming Company Ownership Licences Million smolt Salmon volume gwt 2006E share individuals Total LSG share Lerøy Midnor AS 100 % 28 7 25 000 25 000 Lerøy Aurora AS 100 % 16 3 13 000 13 000 Hydrotech Gruppen AS 39 % 17 5 14 000 5 500 Total Norway 61 15 52 000 43 500 Norsk
Slide 13: Affiliated companies, LSG-share profit after tax
Affiliated companies, LSG-share profit after tax All figures in mill NOK Q3 - 2005 Q3 - 2004 YTD 2005 YTD 2004 Hydrotech-Gruppen AS (39%) 8 971 5 116 17 038 2 606 Egersund Fisk AS (27%) 184 -19 1 624 1 076 Norskott Havbruk AS (50%) 18 567 10 389 27 487 16 357 Andre / Others 166 0 515 0 Sum / Total 2
Slide 14: Consolidated Key figures 30.09.05
Lerøy Seafood Group Consolidated Key figures 30.09.05 • Total equity (48,8 %) 1.166 mill NOK • Net interest bearing debt 374 mill NOK • Total intangible assets 434 mill NOK • Licences smolt / fish farming Norway 307 mill • Goodwill / def. tax 127 mill • Total LSG-shares January 2005: 37.884.767 • Sh
Slide 15: Agenda
Agenda 1.3 Lerøy at a glance 2.4 Lerøy Seafood Group – Company profile 3.5 Market glance
Slide 16: Lerøy Seafood Group
Lerøy Seafood Group • Global distribution network • Global distribution from Head Office in Bergen • Local distribution and processing in Sweden, France, Portugal and Turkey • Local representative offices in some key markets (France, Japan, China, USA)
Slide 17: Global distribution network
PELAGIC WHITEFISH FARMED FISH HALLVARD LERØY AS DISTRIBUTION DISTRIBUTION FRANCE FRANCE DISTRIBUTION DISTRIBUTION NORDVIK DIRECT EXPORT NORWAY NORDVIK NORWAY DISTRIBUTION DISTRIBUTION UK UK DISTRIBUTION DISTRIBUTION SFF SFF // LERØY LERØY LER ØY SWEDEN LERØY SWEDEN LERØ LERØY LERØY LERØ LERØY LERØY
Slide 18: Sales per market Q3 2005
Lerøy Seafood Group - Sales per market Q3 2005 Others Norway 2,2 % 9,4 % USA and Canada 7,0 % Asia Pacific 11,7 % Western Europe Eastern Europe 62,6 % 7,1 %
Slide 19: Sales per product Q3 2005
Lerøy Seafood Group - Sales per product Q3 2005 Shellfish 4,5 % Salmontrout Other/other species 3,6 % 5,4 % Pelagic fish 2,3 % White fish 9,2 % Whole salmon 56,5 % Processed salmon 18,5 %
Slide 20: Lerøy Seafood Group
Lerøy Seafood Group • Norway’s largest seafood exporter in 2004 • 10,6 % share of Norwegian Seafood tot exports value • 14,6 % of Norwegian salmon export • 11,9 % of Norwegian salmon export in 2003 • 27,6 % of Norwegian value added salmon export • Major shareholder in fish farming operations • Lerøy
Slide 21: Lerøy Seafood Group
Lerøy Seafood Group • Steady growth in operating profit and strong balance sheet • Satisfactory earnings • Growth potential within recently acquired businesses • Satisfactory liquidity • Professional and highly motivated employees • Strong partnerships / Network of alliances
Slide 22: Market strategy
Lerøy Seafood Group Market strategy: • Quality • Diversity in product range • Diversity in customer base • Market-oriented solutions • Geographical spread • Continuity in deliveries • Cost efficiency
Slide 23: Shareholders 31.10.05
Shareholders 31.10.05 Shareholder No. of shares Ow nership share Profond AS* 6 788 040 17,26 % Ferd Invest AS 3 000 000 7,63 % Morgan Stanley & Co 2 521 922 6,41 % Odin Norge 1 868 150 4,75 % Skagen Vekst 1 842 000 4,69 % MP Pensjon 1 655 984 4,21 % Credit Suisse First 1 392 400 3,54 % Goldman Sachs
Slide 24: Agenda
Agenda 1.4 Lerøy Seafood Group – Company profile 2.5 Market glance
Slide 25: Lerøy Seafood Group ASA structure
Lerøy Seafood Group ASA Sales Sales&&Distribution Distribution Production Production Affiliated Affiliated Norskott Hallvard HallvardLerøy LerøyAS AS Lerøy LerøyMidnor MidnorAS AS NorskottHavbruk HavbrukAS* AS* 100% 100% 50% 100% 100% 50% Lerøy Sverige AB Lerøy Hydrotech Gruppen AS* Lerøy Sverige AB
Slide 26: Lerøy Midnor AS
Lerøy Midnor AS Smolt: • 7,0 mill. smolt per year (salmon/trout) Farming: • 28 licences (salmon/trout) • 2004: 18.000 gwt • 2005E: 21.000 gwt • 2006E: 25.000 gwt Processing: • Capacity of 100 tonnes per shift Value adding: • Capacity of appr. 4.000 t per year • Production of skin and bone free porti
Slide 27: Lerøy Midnor AS
Lerøy Midnor AS NOKm Q3 - 2005 Q3 - 2004 YTD 2005 YTD - 2004 31.12.2004 Revenues 163,0 106,7 418,8 296,7 413,0 EBITDA* 74,5 24,5 160,4 50,2 61,2 EBIT 66,5 16,7 138,3 28,4 33,3 Pre tax 63,9 13,5 129,4 18,9 20,6 Volumes (gwt) 6,0 6,5 16,1 14,5 18,3 *Effect IFRS-adjustment 6,9 7,9 35,4 4,0 0,2 Balance
Slide 28: Lerøy Aurora AS
Lerøy Aurora AS • Smolt: • 3,0 mill. smolt per year • Farming: • 16 licences • 2005E: 9.000 gwt • 2006E: 13.000 gwt • Slaughtering station: • Capacity of 60 – 65 tonnes per shift
Slide 29: Lerøy Aurora AS
Lerøy Aurora AS NOKm Q3 - 2005 Q3 - 2004 YTD 2005 YTD - 2004 31.12.2004 Revenues 48,8 71,3 112,6 218,1 287,8 EBITDA* 31,0 3,4 44,9 12,2 6,9 EBIT 28,0 0,2 35,5 2,1 -6,3 Pre tax 25,6 -2,6 28,4 -6,4 -17,4 Volumes (gwt) 1,6 4,6 *Effect IFRS-adjustment 20,9 0,0 20,9 0,0 0,0 Balance sheet 30.09 2005 30.09
Slide 30: Norskott Havbruk (Scottish Sea Farms Ltd.)
Norskott Havbruk (Scottish Sea Farms Ltd.) Smolt: • Self sufficient with high quality smolt Farming: • 2005E: 20.000 – 21.000 gwt • 2006E: 21.000 gwt • Additional processing and sales Processing: • 2 processing plants • Scotland mainland • Shetland
Slide 31: Norskott Havbruk
Norskott Havbruk NOKm Q3 - 2005 Q3 - 2004 YTD - 2005 YTD - 2004 31.12.2004 Revenues 184,6 169,6 543,4 486,2 706,1 EBITDA 54,6 40,4 93,5 80,0 96,3 EBIT* 48,4 34,5 74,5 61,7 73,5 Pre tax 42,6 26,7 55,2 39,4 43,6 Volumes (gwt) 5,2 6,1 15,2 15,6 24,1 *Effect IFRS-adjustment 18,4 19,7 0,7 22,2 18,1 Balan
Slide 32: Hydrotech Gruppen AS (39%)
Hydrotech Gruppen AS (39%) • Smolt: • 5,0 mill. smolt per year • Farming: • 17 licences (salmon/trout) • 2005E: 12.000 gwt • 2006E: 14.000 gwt • Processing plant • Well-boat shipping co.
Slide 33: Hydrotech Gruppen AS
Hydrotech Gruppen AS NOKm Q3 - 2005 Q3 - 2004 YTD 2005 YTD - 2004 31.12.2004 Revenues 118,7 71,6 261,4 203,7 318,6 EBITDA 38,2 22,9 82,7 31,8 37,9 EBIT* 33,5 18,3 68,7 18,1 19,3 Pre tax 31,2 15,7 61,6 9,9 9,4 Volumes (gwt) 3,5 3,0 8,8 7,5 11,6 * Effect IFRS-adjustment -0,5 6,6 2,8 6,6 0,0 Balance sh
Slide 34: Egersund Fisk AS (27%)
Egersund Fisk AS (27%) • Shareholder structure • Lerøy Seafood Group ASA 27% • SalMar AS 27% • Egersund Fiskeriinvestering AS 9% • Others 37% (less than 4% each) • Pelagic activity • Fish oil, fish meal • Pelagic fish for consumption • Ownership in vessels for wild catch • Part ownership acquired in
Slide 35: Agenda: Market glance
Agenda 1.5 Market glance
Slide 36: Fresh Atlantic Salmon Norway price development 1997-2005
0,00 5,00 10,00 15,00 20,00 25,00 30,00 35,00 40,00 45,00 1997-1 NOK / Kg Source: FHL/NSL Figures per 31.10.05 1997-15 1997-29 1997-43 1998-5 1998-19 1998-33 1998-47 1999-8 1999-22 1999-36 1999-50 2000-12 2000-26 Fresh Atlantic Salmon Norway (4-5 kgs) 2000-40 2001-2 2001-16 2001-30 2001-44 2002-6 20
Slide 37: Salmon export from Norway as of week 44-05
Salmon export from Norway as of week 44-05. Av. Q1-Q3 2004 NOK 22,25 Fresh atlantic salmon, cross-section, FCA Oslo. Av. Q1-Q3 2005 NOK 25,06 Up by 12,6 %. Av. Q3-2004 NOK 21,26 Av. Q3-2005 NOK 26,86 NOK / kg Up by 26,3 %. Oslo Q4-01 Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03 Q4-03 Q1-04 Q2-04 Q3-04
Slide 38: Market development for Atlantic Salmon from Norway
Market development for Atlantic Salmon from Norway Jan - Sep 2004 vs Jan - Sep 2005 Volume 2004 Volume 2005 Change Value 2004 Value 2005 Change EU 264 594 282 732 7% 5 753 850 6 868 017 19 % Japan 26 271 21 432 -18 % 657 228 552 287 -16 % USA 9 277 6 203 -33 % 290 309 213 914 -26 % Others 58 960 65
Slide 39: Atlantic salmon – supply
Atlantic salmon – supply Change Change Change Change 2004 03-04 2005 E 04-05E 2006 E 05E-06E 2007 E 06E-07E Norway 537 000 6% 571 400 6% 570 100 0% 578 000 1% Chile 346 200 23 % 383 900 11 % 406 500 6% 431 000 6% UK 159 800 -2 % 121 800 -24 % 113 800 -7 % 129 000 13 % Canada 89 000 -3 % 103 000 16 %
Slide 40: Harvest quantities Atlantic Salmon World Wide
Harvest quantities Atlantic Salmon World Wide Volumes in tons Yearly change in % 1 400 000 16 +4 % 1% +6% 2% 14 1 200 000 +8% +7% 12 +13% 1 000 000 +11% 10 +16% 800 000 8 600 000 6 400 000 4 200 000 2 0 0 1998 1999 2000 2001 2002 2003 2004 2005E 2006E 2007E Harvest Quantity Yearly change in % in har
Slide 41: Drivers Salmon per 30.09.2005
Drivers Salmon per 30.09.2005 • Norway total export volume of Atlantic Salmon (375.443 mt) + 5% • Norway – EU (volume Atlantic Salmon) (282.732 mt) + 7% • Norway – EU (value Atlantic Salmon) (6.868.017 TNOK) + 19 % • Norway – Russia (volume Atlantic Salmon) (34.652 mt) + 40 % • Norway – Feed sales (
Slide 42: Thank you
Thank you ¥