Leroy Seafood Group ASA · OSL:LSG
Leroy Seafood Group ASA — Lerøy Seafood Group — Q1 2009 Earnings Presentation
38 slides from Leroy Seafood Group ASA's earnings presentation, May 12, 2009
Slide 1: Lerøy Seafood Group Quarterly report First quarter 2009
Lerøy Seafood Group Quarterly report First quarter 2009 May 12th 2009 Helge Singelstad CEO Ivan Vindheim CFO
Slide 2: Agenda
Agenda 1 1. Considerations 2. 2 Key financial figures Q1 2009 3. 3 Lerøy at a glance 4. 4 Market glance
Slide 3: Internal considerations Q1 2009
Internal considerations Q1 2009 All figures in NOK mill Q1 - 09 Q1 - 08 Change 2008 2007 Change Turnover 1 522 1 317 16 % 6 057 6 291 -4 % EBITDA 192 116 66 % 534 541 -1 % EBIT bef adj biom 142 69 106 % 337 387 -13 % PTP bef adj biom *) 124 44 182 % 201 367 -45 % *) PTP = Pre-Tax Profit
Slide 4: Internal considerations Q1 2009
Internal considerations Q1 2009 • Financially solid • Net interest bearing debt down • Well positioned for future organic and strategic growth • Dividend NOK2.80 per share • Ex-dividend date 27 May 2009 • Production • In total, volumes in accordance with 2009E and seasonality • Operations satisfacto
Slide 5: Internal considerations Q1 2009 cont'd
Internal considerations Q1 2009 cont’d • Sales and distribution • Another very good quarter taken into account seasonality • Affiliated companies • Satisfactory biological performance • Lower production costs and higher prices (Norskott/Scottish Sea Farms)
Slide 6: External considerations Q1 2009
External considerations Q1 2009 • Demand and supply • Prices significantly up • 11.4%, Q1 09 versus Q4 08 • 13.1%, Q1 09 versus Q1 08 • Modest supply growth from Norway • 5.8% in Q1 09 (volume) • Limited production growth in Chile in Q1 09 • Harvest Q1 09 approx. in line with Q1 08 • Supply down for
Slide 7: Agenda
Agenda 1.1 Considerations 2.2 Key financial figures Q1 2009 3.3 Lerøy at a glance 4.4 Market glance
Slide 8: Income Statement Q1 2009
Income Statement Q1 2009 All figures in NOK 000’ Q1 2009 Q1 2008 2008 Salgsinntekter / Operating revenues 1 521 594 1 316 657 6 057 053 Vareforbruk / Cost of goods sold 1 033 554 932 300 4 279 152 Lønnskostnader / Salaries and wages 159 124 149 414 664 377 Andre driftskostnader / Other operating cos
Slide 9: Balance Sheet Q1 2009
Balance Sheet Q1 2009 All figures in NOK 000’ 31.03.09 31.03.08 31.12.08 Immaterielle eiendeler / Intangible assets 2 962 493 2 832 628 2 959 927 Varige driftsmidler / Tangible fixed assets 1 259 278 1 245 267 1 294 818 Finansielle anleggsmidler / Financial fixed assets 313 860 321 569 307 359 Sum a
Slide 10: Balance Sheet Q1 2009
Balance Sheet Q1 2009 All figures in NOK 000’ 31.03.09 31.03.08 31.12.08 Innskutt egenkapital / Equity contributions 2 642 612 2 646 280 2 642 612 Opptjent egenkapital / Earned equity 1 153 151 1 022 290 1 101 073 Minoritetsinteresser / Minority interests 19 514 19 633 20 658 Sum egenkapital / Total
Slide 11: Cash Flow Statement Q1 2009
Cash Flow Statement Q1 2009 All figures in NOK 000’ Q1 2009 Q1 2008 2008 Kontantstrøm fra drift / Cash flow from operating activities Resultat før skatt / Profit before tax 105 104 -132 246 164 047 Ordinære avskrivninger / Ordinary depreciation 50 040 47 049 197 023 Endring kundefordringer / Change
Slide 12: Key figures - Lerøy Seafood Group Q1 2009
Key figures - Lerøy Seafood Group Q1 2009 Q1 2009 Q1 2008 2008 1) Resultatmargin / Profit margin 6,91 % -10,04 % 2,71 % Driftsmargin før just.biomasse./ Operating margin before adj.biomass. 9,32 % 5,22 % 5,57 % 2) Driftsmargin / Operating margin 7,64 % -8,00 % 4,97 % Resultat per aksje før just.biom
Slide 13: Funding
Funding • Sound debt repayment profile • Bank loans and no “balloons” NOK million 2009 2010 2011 2012 2013 Instalments 217 249 230 215 214 • Covenants NIBD/EBITDA < 5 and Equity ratio*) > 30% • Q1 2009, 3.3 and 55.4% respectively • Satisfactory committed unused credit lines • Lower capex going forwa
Slide 14: Agenda
Agenda 1.1 Considerations 2.2 Key financial figures Q1 2009 3.3 Lerøy at a glance 4.4 Market glance
Slide 15: Lerøy Seafood Group - Global organization
Lerøy Seafood Group - Global organization Norway Farming Sweden Dist. & Sales Dist. & Sales Scotland/Shetland Farming Dist. & Sales Japan Spain, Portugal, Dist. & Sales Turkey France Dist. & Sales Dist. & Sales China Dist. & Sales North America Dist. & Sales Chile
Slide 16: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA Sales Sales&&Distribution Distribution Production Production Affiliated Affiliated Lerøy LerøyWest Norskott Hallvard HallvardLerøy LerøyAS AS 100% West NorskottHavbruk HavbrukAS** AS** 100% 100% 50% 100% 50% Lerøy Lerøy Lerøy Sverige SverigeAB AB LerøyMid-Norway Mid-Norway Al
Slide 17: Lerøy Seafood Group
Lerøy Seafood Group • • Global distribution network • Global distribution from Head Office in Bergen • Local distribution and processing in Norway, Sweden, France, Portugal and Turkey • Local representative offices in some key markets (France, Japan, China and USA) • 11.0% share of Norwegian seafood
Slide 18: Lerøy Seafood Group
Lerøy Seafood Group • Fully integrated • From roe to the plate • Competent employees • Decentralized farming units • Autonomous units in three regions • In addition, the affiliated company Scottish Sea Farms in Scotland • Centralized sales and distribution with a global sales network • Group structu
Slide 19: Lerøy Seafood Group
Lerøy Seafood Group • Market strategy: • Quality • Branding • Diversity in product range • Diversity in customer base • Market-oriented solutions • Geographical spread • Continuity in deliveries • Cost efficiency
Slide 20: Lerøy Seafood Group - Sales per market Q1 09
Lerøy Seafood Group - Sales per market Q1 09 Rest of Europe Others USA and Canada 6,2 % 1,5 % 5,7 % Norway 18,4 % EU 56,0 % Asia Pacific 12,3 %
Slide 21: Lerøy Seafood Group - Sales per product Q1 09
Lerøy Seafood Group - Sales per product Q1 09 Salmontrout Shellfish Other 5,4 % 6,4 % Pelagic fish 3,3 % 1,8 % White fish 10,7 % Whole salmon 50,8 % Processed salmon 21,6 %
Slide 22: Farming Norway
Farming Norway Lerøy Aurora AS Sigerfjord Aqua AS • Lerøy Aurora AS • Sigerfjord Aqua AS • Lerøy Midnor AS • Lerøy Hydrotech AS Lerøy Midnor AS • Lerøy Vest AS Lerøy Hydrotech AS Lerøy Vest AS
Slide 23: Lerøy Seafood Group – Salmon/trout farming
Lerøy Seafood Group – Salmon/trout farming Company Ownership Licences Mill. smolt 2007 2008 2009E share No individuals GWT GWT GWT Lerøy Midnor AS 100 % 30 9,5 29 200 29 100 35 000 Lerøy Aurora AS 100 % 17 5,0 17 100 17 200 20 500 Lerøy Hydrotech AS 100 % 24 7,0 20 100 23 000 22 000 Lerøy Vest AS*)
Slide 24: Lerøy Seafood Group – Salmon/trout farming
Lerøy Seafood Group – Salmon/trout farming Company Ownership Volume Volume Share Rest Share share 2009E YTD Q1 % 2009E % Lerøy Midnor AS 100 % 35 000 9 200 26 % 25 800 74 % Lerøy Aurora AS 100 % 20 500 4 600 22 % 15 900 78 % Lerøy Hydrotech AS 100 % 22 000 2 200 10 % 19 800 90 % Lerøy Vest AS*) 100
Slide 25: Key Figures Production Q1 2009
Key Figures Production Q1 2009 Lerøy Others / Total Total Figures NOKm Lerøy Midnor Hydrotech Lerøy Aurora Lerøy Vest elimination Q1 2009 Q1 2008 Revenues 270,9 68,5 132,3 161,0 86,8 719,5 547,5 EBIT before biom.adj 67,5 5,2 26,8 20,7 -1,1 119,1 64,8 EBIT 30,3 20,6 19,9 22,9 -0,1 93,6 -109,1 Volumes
Slide 26: Key Figures Sales & Distribution Q1 2009
Key Figures Sales & Distribution Q1 2009 Sales & Total Total Figures NOKm Distribution Elimination Q1 2009 Q1 2008 Revenues 1 634,8 -168,0 1 466,8 1 276,9 EBIT before biom.adj 29,7 0,2 29,9 8,3 EBIT 29,7 0,2 29,9 8,3
Slide 27: Norskott Havbruk
Norskott Havbruk LSG’s share = 50% NOKm Q1 - 2009 Q1 2008 2008 Revenues 185 196 772 EBITDA 43 33 94 EBIT bef adj biom 32 23 58 EBIT 50 15 56 Pre tax 47 9 31 Volumes (gwtt) 5,7 6,3 22,8 EBIT/kg 5,6 3,6 2,5 Balance sheet 31.03.2009 31.03.2008 31.12.2008 Licences, goodwill 374 363 386 Tangible fixed as
Slide 28: Agenda
Agenda 1.1 Considerations 2.2 Key financial figures Q1 2009 3.3 Lerøy at a glance 4.4 Market glance
Slide 29: Salmon price development 1997-2009 (NOK/kg)
NOK/kg 10 15 20 25 30 35 40 45 50 1997-1 1997-11 1997-21 1997-31 1997-41 1997-51 1998-9 Figures as per 08.05.09 Source: FHL/NSL/NOS 1998-19 1998-29 1998-39 1998-49 1999-6 1999-16 1999-26 1999-36 1999-46 2000-4 2000-14 2000-24 2000-34 2000-44 2001-2 2001-12 2001-22 2001-32 2001-42 2001-52 2002-10 200
Slide 30: Oslo Salmon export from Norway as of week 18-2009
Avrg. Q1 2009 NOK 28.22 (+13.1%) Avrg. Q1 2008 NOK 24.94 Oslo Salmon export from Norway as of week 18-2009 Avrg. 2008 NOK 25.75 (+3.1%) Fresh Atlantic salmon, cross-section, FCA Oslo. Avrg. 2007 NOK 24.97 NOK / kg Oslo Q1-03 Q2-03 Q3-03 Q4-03 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-
Slide 31: Jan-March 2008 vs Jan-March 2009
Market development for Atlantic Salmon from Norway Jan-March 2008 vs Jan-March 2009 Volume 2008 Volume 2009 Change Value 2008 Value 2009 Change EU 121 286 129 192 6,5 % 2 924 768 3 465 705 18,5 % Others 23 201 20 025 -13,7 % 533 342 538 568 1,0 % Japan 6 614 6 701 1,3 % 185 584 225 917 21,7 % Russia
Slide 32: Jan-March 2008 vs Jan-March 2009
Market development for Atlantic Salmon from Norway Jan-March 2008 vs Jan-March 2009 Others: "Others" Volume 2008 Volume 2009 Change Value 2008 Value 2009 Change Ukraine 4 606 2 457 -46,7 % 57 314 51 981 -9,3 % Hongkong 3 177 3 220 1,4 % 80 449 86 102 7,0 % China 2 426 2 415 -0,5 % 58 819 56 744 -3,5
Slide 33: Jan-April 2008 vs Jan-April 2009
Market development for Atlantic Salmon from Norway Jan-April 2008 vs Jan-April 2009 Volume 2008 Volume 2009 Change Value 2008 Value 2009 Change EU 161 993 175 196 8,2 % 3 902 749 4 796 571 22,9 % Others 30 062 27 137 -9,7 % 685 756 748 875 9,2 % Japan 8 825 9 229 4,6 % 246 572 306 537 24,3 % Russia
Slide 34: Atlantic salmon – Supply
Atlantic salmon – Supply in tons WFE Change Change Change Change Change Change Change 2003 02-03 2004 03-04 2005 04-05 2006 05E-06 2007 06-07E 2008 E 07-08E 2009 E 08E-09E Norway 508 400 14,5 % 537 000 6% 572 200 7% 598 500 5% 723 300 20,9 % 741 000 2,4 % 828 000 11,7 % United Kingdom 160 800 14,8 %
Slide 35: Drivers Salmon per 31.03.2009
Drivers Salmon per 31.03.2009 • Norway total export volume of Atlantic Salmon (177,284 MT WFE) + 5.8 % • Norway total export value of Atlantic Salmon (NOK4,800m) + 18.7 % • Norway – EU (volume Atlantic Salmon) (129,192 MT WFE) + 6.5 % • Norway – EU (value Atlantic Salmon) (NOK3,465m) + 18.5 % • Norw
Slide 36: Drivers Salmon as per 30.04.2009
Drivers Salmon as per 30.04.2009 Norway total export volume of Atlantic Salmon (242,727 MT WFE) + 8.6 % Norway total export value of Atlantic Salmon (NOK6,700m) + 24.6 % Norway – EU (volume Atlantic Salmon) (175,196 MT WFE) + 8.2 % Norway – EU (value Atlantic Salmon) (NOK4,796m) + 22.9 % Norway – Ru
Slide 37: Going forward!
Going forward! •Satisfactory financing •Lower capex •Operational improvements •Good demand for seafood •Improved profitability •Continued consolidations •Create sustainable shareholder value • Annual dividend since 1995 • Share liquidity • Share price
Slide 38: Thank you !
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