Leroy Seafood Group ASA · OSL:LSG
Leroy Seafood Group ASA — Lerøy Seafood Group — Q1 2006 Earnings Presentation
52 slides from Leroy Seafood Group ASA's earnings presentation, May 15, 2006
Slide 1: Lerøy Seafood Group Quarterly report First quarter 2006
Lerøy Seafood Group Quarterly report First quarter 2006 May 15th 2006 Ole-Eirik Lerøy President & CEO Helge Singelstad Vice president & vice CEO
Slide 2: Agenda
Agenda 1.1 Considerations 2.2 Key financial figures Q1 2006 3.3 Lerøy at a glance 4.4 Market glance
Slide 3: Turnover LSG
Turnover LSG Mill. NOK 4000 3500 3000 2500 2000 1500 1000 500 0 1980 1985 1990 1995 1999 2000 2001 2002 2003 2004 2005
Slide 4: ROCE (%) and PTP before biomass adjustments
ROCE (%) and PTP before biomass adjustments 40 350 35 300 30 250 25 200 ROCE 20 Pre tax profit 150 15 100 10 5 50 0 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 YTD 2006
Slide 5: Return on capital employed (ROCE) before biomass adjustments
Return on capital employed (ROCE) before biomass adjustments 40 35 30 25 P rosent 20 * 15 10 5 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 YTD 2006 * Target set before IPO 2002
Slide 6: Number of shareholders
Number of shareholders 4000 3500 3000 2500 2000 1500 1000 500 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006YTD
Slide 7: Shareholders 03.05.06
Shareholders 03.05.06 Shareholder No. of shares Ow nership share Profond AS* 6 788 040 15,87 % Pareto Securities ASA 2 098 950 4,91 % Skagen Vekst 1 800 000 4,21 % MP Pensjon 1 701 984 3,98 % Pareto Aksje Norge 1 610 100 3,76 % Morgan Stanley & Co. Inc. 1 591 251 3,72 % Ferd AS Invest 1 463 200 3,42
Slide 8: Internal considerations Q1 2006
Internal considerations Q1 2006 All figures in mill NOK Q1 - 06 Q1 - 05 Change 2005 2004 Change Turnover 1 114 832 34 % 4 014 3 559 13 % EBIT bef adj biom 121 39 210 % 274 132 108 % Operating profit 159 48 231 % 344 133 159 % Affiliated comp. 9 8 13 % 65 20 225 % Pre-tax profit 162 52 212 % 391 137
Slide 9: Internal considerations Q1 2006
Internal considerations Q1 2006 • Financially Solid • Well positioned for future organic and strategic growth • Annual General Meeting of Shareholders 24 May 2006 • Proposed dividend NOK 1.80 per share • Ex-dividend 26 May 2006 • 3.983 shareholders as of 3 May 2006 • Consolidated business areas • Sa
Slide 10: Fossen AS (100%)
Fossen AS (100%) • Location • Hordaland, outside Bergen • Smolt • 1,0 mill. smolt per year • Remaining on contract • Farming • 6,7 licences • 2006E: 5.500 gwt • 2007E: 7.000 gwt • Smoke house • processing • Approx 80 employees
Slide 11: Fossen AS
Fossen AS NOKm Q1 - 2006 Q1 - 2005 2005 Revenues 47 36 208 EBITDA 11 4 29 EBIT bef adj biom 8 2 20 EBIT* 8 2 20 Pre tax 7 0 18 Volumes (gwtt) 0,9 0,9 4,8 * Effect IFRS-adjustment 0,0 0,0 0,0 Balance sheet 31.03.2006 31.03.2005 31.12.2005 Licences, Goodwill 22 22 22 Tangible fixed assets 62 66 62 Inv
Slide 12: External considerations Q1 2006
External considerations Q1 2006 • Increasingly salmon and trout spot prices • Prices up 8,9% from Q405, strong market in Q106 • Prices in Q106 20,5% higher than comparable figures in Q105 • Prices so far in Q206 significantly higher than prices in Q106 • Strong market • Currencies • Future will brin
Slide 13: Agenda
Agenda 1.2 Key financial figures Q1 2006 2.3 Lerøy at a glance 3.4 Market glance
Slide 14: Income Statement Q1 2006
Resultatregnskap / Income Statement Q1 2006 Alle tall i NOK 1.000 / All figures in NOK 1,000 Q1 - 2006 Q1 - 2005 2005 Salgsinntekter / Operating revenue 1 113 819 831 848 4 014 454 Vareforbruk / Cost of goods sold 842 669 689 359 3 254 686 Lønnskostnader / Salaries and wages 81 039 55 364 245 819 An
Slide 15: Balance Sheet Q1 2006
Balanse / Balance Sheet Q1 2006 Alle tall i NOK 1.000 / All figures in NOK 1,000 Q1 - 2006 Q1 - 2005 2005 Immaterielle eiendeler / Intangible assets 451 123 287 083 443 908 Varige driftsmidler / Tangible fixed assets 315 200 191 262 284 832 Finansielle anleggsmidler / Financial fixed assets 332 741
Slide 16: Balance Sheet Q1 2006
Balanse / Balance Sheet Q1 2006 Alle tall i NOK 1.000 / All figures in NOK 1,000 Q1 - 2006 Q1 - 2005 2005 Innskutt egenkapital / Equity contributions 855 967 782 888 855 967 Opptjent egenkapital / Earned equity 531 430 190 454 413 274 Minoritetsinteresser / Minority interests 6 296 3 953 6 705 Sum e
Slide 17: Key figures - Lerøy Seafood Group Q1 2006
Key figures - Lerøy Seafood Group Q1 2006 Nøkkeltall / Key figures Q1 - 2006 Q1 - 2005 2005 Resultatmargin / Profit margin 14,56 % 6,29 % 9,74 % Driftsmargin / Operating margin 14,26 % 5,80 % 8,56 % Resultat per aksje / Earnings per share 3,04 1,10 8,14 Utvannet resultat per aksje / Diluted earnings
Slide 18: Lerøy Seafood Group segment information Q1 2006
Lerøy Seafood Group segment information Q1 2006 Book value Pre tax profit Sales and Distribution 216 17 Affiliates 10 1 Total Sales and Distribution 226 18 Production 746 150 Affiliates 320 8 Total Production 1 066 158 Elimination / LSG ASA 102 -14 Total equity / pre tax profit 1 394 162
Slide 19: Affiliated companies, LSG-share profit after tax
Affiliated companies, LSG-share profit after tax All figures in mill NOK Ko rr.varer / Ko rr.varer / Q1 2006 adj.invento ry Q1 2005 adj.invento ry 2005 Hydrotech-Gruppen AS (39%) 2 175 471 2 286 0 27 052 Egers und Fis k AS (27%) 1 867 0 869 0 4 622 Nors kott Havbruk AS (50%) 4 403 -4 519 5 067 -2 33
Slide 20: Lerøy Seafood Group Consolidated Key figures March 2006
Lerøy Seafood Group Consolidated Key figures 31 March 2006 • Total equity (53 %) 1.394 mill NOK • Net interest bearing debt 221 mill NOK • Total intangible assets 451 mill NOK • Licences smolt / fish farming Norway 309 mill • Goodwill / def. tax 142 mill • Total LSG-shares May 2006 42.777.368 • Afte
Slide 21: Agenda
Agenda 1.3 Lerøy at a glance 2.4 Market glance
Slide 22: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA Sales Sales&&Distribution Distribution Production Production Affiliated Affiliated Norskott Hallvard HallvardLerøy LerøyAS AS Lerøy Midnor AS Lerøy Midnor AS NorskottHavbruk HavbrukAS* AS* 100% 100% 50% 100% 100% 50% Lerøy Lerøy Sverige SverigeAB Hydrotech AB Lerøy LerøyAuror
Slide 23: Lerøy Seafood Group Employees, May 2006
Lerøy Seafood Group Employees, 12 May 2006 Sales and distribution 372 Production and farming 426 T otal Group 798 Affiliates 501 T otal included affiliates 1299
Slide 24: Lerøy Seafood Group
Lerøy Seafood Group • Norway’s largest seafood exporter in 2005 • 11,0 % share of Norwegian Seafood tot exports value • 15,4 % of Norwegian salmon export • 14,6 % of Norwegian salmon export in 2004 • 30,8 % of Norwegian value added salmon export • Major shareholder in fish farming operations • Lerøy
Slide 25: 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 26: 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 27: 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 28: Pelagic, whitefish, farmed fish distribution
PELAGIC WHITEFISH FARMED FISH HALLVARD LERØY AS DISTRIBUTION DISTRIBUTION DISTRIBUTION DISTRIBUTION FRANCE DIRECT EXPORT NORWAY FRANCE NORWAY DISTRIBUTION DISTRIBUTION DISTRIBUTION DISTRIBUTION UK UK SWEDEN SWEDEN LERØ LERØY LERØY LERØ LERØY LERØY FRANCE FRANCE PORTUGAL PORTUGAL DISTRIBUTION DISTRIB
Slide 29: Sales per market Q1 2006
Lerøy Seafood Group - Sales per market Q1 2006 Rest of Europe Others 4,3 % 2,7 % USA and Canada 7,9 % Norway 12,4 % EU Asia Pacific 60,6 % 12,2 %
Slide 30: Sales per product Q1 2006
Lerøy Seafood Group - Sales per product Q1 2006 Shellfish Salmontrout Other/other species 4,7 % 3,1 % 3,3 % Pelagic fish 3,5 % White fish 11,3 % Whole salmon 52,5 % Processed salmon 21,6 %
Slide 31: Strannes Røkeri AB
Strannes Roekeri AB Hel sida / bit med skinn Kallrokt norsk lax Hel sida, skivad Skivad 100g 200 g 400g 500g 1000 g LEROY
Slide 32: Lerøy Smøgen Seafood AB
Lerøy Smøgen Seafood AB
Slide 33: Processing, France
Processing, France LEROY
Slide 34: Lerøy Seafood Group – salmon/trout farming
Lerøy Seafood Group – salmon/trout farming Company Ownership Licences Mill. smolt V olume gwt 2006E V olume gwt 2007E share individuals Total LSG share Total LSG share Lerøy Midnor AS 100 % 28 7,0 26 000 26 000 27 000 27 000 Lerøy Aurora AS 100 % 16 3,5 13 000 13 000 13 000 13 000 Fossen AS*) 100 %
Slide 35: Lerøy Midnor AS
Lerøy Midnor AS Smolt • 7,0 mill. smolt per year Farming • 28 licences (salmon/trout) • 2004: 18.000 gwt • 2005: 22.700 gwt • 2006E: 26.000 gwt • 2007E: 27.000 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 36: Lerøy Midnor AS
Lerøy Midnor AS NOKm Q1 - 2006 Q1 - 2005 2005 Revenues 199 127 596 EBITDA 95 23 191 EBIT bef adj biom 88 16 162 EBIT* 100 25 210 Pre tax 98 21 199 Volumes (gwtt) 6,8 5,3 22,7 * Effect IFRS-adjustment 12,1 9,2 47,7 Balance sheet 31.03.2006 31.03.2005 31.12.2005 Licences, Goodwill 72 72 72 Tangible fi
Slide 37: Lerøy Aurora AS
Lerøy Aurora AS • Smolt • 3.5 mill. smolt per year • Farming • 16 licences • 2005: 8.500 gwt • 2006E: 13.000 gwt • 2007E: 13.000 gwt • Slaughtering station • Capacity of 60 – 65 tonnes per shift
Slide 38: Lerøy Aurora AS
Lerøy Aurora AS NOKm Q1 - 2006 Q1 - 2005 2005 Revenues 100 44 212 EBITDA 30 9 55 EBIT bef adj biom 26 5 41 EBIT* 52 5 63 Pre tax 50 3 53 Volumes (gwtt) 3,9 1,7 8,5 * Effect IFRS-adjustment 25,9 0,0 21,7 Balance sheet 31.03.2006 31.03.2005 31.12.2005 Licences, Goodwill 2 9 2 Tangible fixed assets 82
Slide 39: Norskott Havbruk (Scottish Sea Farms Ltd.)
Norskott Havbruk (Scottish Sea Farms Ltd.) Smolt • Self sufficient with high quality smolt Farming • 2005: 20.700 gwt • 2006E: 21.000 gwt • 2007E: 25.000 gwt • Additional processing and sales Processing • 2 processing plants • Scotland mainland • Shetland
Slide 40: Norskott Havbruk
Norskott Havbruk NOKm Q1 - 2006 Q1 - 2005 2005 Revenues 190 197 775 EBITDA 35 28 136 EBIT bef adj biom 29 22 110 EBIT* 16 15 114 Pre tax 12 8 90 Volumes (gwtt) 4,2 5,7 20,7 * Effect IFRS-adjustment -10,7 -5,0 10,4 Balance sheet 31.03.2006 31.03.2005 31.12.2005 Licences, Goodwill 390 377 389 Tangible
Slide 41: Hydrotech Gruppen AS (39%)
Hydrotech Gruppen AS (39%) • Smolt • 6,5 mill. smolt per year • Farming • 17 licences (salmon/trout) • 2005: 12.400 gwt • 2006E: 15.000 gwt • 2007E: 15.000 gwt • Processing plant • Well-boat shipping co.
Slide 42: Hydrotech Gruppen AS
Hydrotech Gruppen AS NOKm Q1 - 2006 Q1 - 2005 2005 Revenues 74 62 374 EBITDA 13 16 118 EBIT bef adj biom 8 12 99 EBIT* 10 12 102 Pre tax 8 9 96 Volumes (gwtt) 1,8 2,4 12,4 * Effect IFRS-adjustment 1,8 0,1 3,4 Balance sheet 31.03.2006 31.03.2005 31.12.2005 Licences, Goodwill 140 140 140 Tangible fixe
Slide 43: 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 Nøkkeltall / Key figures 100% Q1 - 2006 Q1 - 2005 2005 Turnover 17
Slide 44: Agenda: Market glance
Agenda 1.5 Market glance
Slide 45: Fresh Atlantic Salmon Norway (4-5 kgs)
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 11.05.06 1997-16 1997-31 1997-46 1998-9 1998-24 1998-39 1999-1 1999-16 1999-31 1999-46 2000-9 2000-24 2000-39 2001-2 2001-17 2001-32 2001-47 2002-10 2002-25 2002-40 2003-3 2003-18 Fresh Atlantic Sal
Slide 46: Oslo Salmon export from Norway as of week 19-2006
Av. Q1-05 NOK 23,44 Oslo Salmon export from Norway as of week 19-2006 Av. Q1-06 NOK 28,24 Up by 20,5 %. Fresh atlantic salmon, cross-section, FCA. Q2-06 A 36,85 NOK / kg 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 Q4-04 Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 A.17,24 A.18,04 A
Slide 47: Market development for Atlantic Salmon from Norway Jan-Dec 2004 vs 2005
Market development for Atlantic Salmon from Norway Jan - Dec 2004 vs Jan - Dec 2005 Volume 2004 Volume 2005 Change Value 2004 Value 2005 Change EU 380 572 405 724 7% 8 133 004 9 912 847 22 % Others 46 777 45 244 -3 % 1 043 576 1 196 588 15 % Russia 39 214 54 353 39 % 776 188 1 294 392 67 % Japan 35
Slide 48: Market development for Atlantic Salmon from Norway Jan-Apr 2005 vs 2006
Market development for Atlantic Salmon from Norway Jan-Apr 2005 vs Jan-Apr 2006 Volume 2005 Volume 2006 Change Value 2005 Value 2006 Change EU 119 756 132 665 11 % 2 780 689 3 655 651 31 % Russia 16 056 9 039 -44 % 326 209 238 004 -27 % Others 13 264 19 778 49 % 311 243 567 956 82 % Japan 10 533 10
Slide 49: Atlantic salmon – supply
Atlantic salmon – supply Supply Change Change 2005 04-05 2006 E 05-06E Norw ay 572 200 7% 607 800 6% Chile 385 200 11 % 403 900 5% UK 119 700 -20 % 127 000 6% Canada 107 000 20 % 114 000 7% Faroe Islands 17 200 -53 % 8 600 -50 % Ireland 12 400 0% 14 500 17 % USA 9 600 -28 % 10 500 9% Others 24 900 3
Slide 50: Harvest quantities Atlantic Salmon World Wide
Harvest quantities Atlantic Salmon World Wide Volumes in tons Yearly change in % 1 600 000 16 +5 % +8 % +6% +3 % 1 400 000 14 +8% +7% 1 200 000 12 +13% +11% 1 000 000 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 chan
Slide 51: Drivers Salmon per 30.04.2006
Drivers Salmon per 30.04.2006 • Norway total export volume of Atlantic Salmon (176.274 mt) + 8% • Norway – EU (volume Atlantic Salmon) (132.665 mt) + 11 % • Norway – EU (value Atlantic Salmon) (3.655.651 MNOK) + 31 % • Sales of fish-feed in Norway (160.970 mt) + 0% Figures per 05.05.06 Sources: NSEC
Slide 52: Thank you
SEAFOOD INNOVATION SINCE 1 ene