Leroy Seafood Group ASA · OSL:LSG
Leroy Seafood Group ASA — Lerøy Seafood Group — Q1 2005 Earnings Presentation
47 slides from Leroy Seafood Group ASA's earnings presentation, May 13, 2005
Slide 1: Lerøy Seafood Group Quarterly report First quarter 2005
Lerøy Seafood Group • Quarterly report • First quarter 2005 • May 13th 2005 • Ole-Eirik Lerøy President & CEO • Helge Singelstad Vice president & vice CEO
Slide 2: Agenda
Agenda 1.1 Considerations 2. 2 Key financial figures Q1 2005 3. 3 Lerøy at a glance 4. 4 Lerøy Seafood Group – Company profile 5. 5 Market glance
Slide 3: Internal considerations Q1 2005
Internal considerations Q1 2005 Main figures All figures in mill NOK Q1-05 Q1-04 Change 2004 2003 Change Turnover 832 857 -2,9 % 3 559 2 915 22,1 % Operating profit 48 34 41,2 % 133 84 58,3 % Affiliated comp. 8 -1 - 20 -21 - Pre-tax profit 52 29 79,3 % 137 55 149,1 %
Slide 4: Internal considerations 1st Quarter 2005
Internal considerations 1st Quarter 2005 • Financially Solid • Well positioned for future organic and strategic growth • Proposed dividend for 2004 NOK 0,80 per share • (Ex dividend 26. May 2005) • Paid 09. June 2005 • 2.869 shareholders as of 12. May 2005 • Considerably improved liquidity traded sh
Slide 5: Alfarm Alarko, acquisition 50 % shares
Internal considerations 1st Quarter 2005 cont. Alfarm Alarko, acquisition 50 % shares • Established in Istanbul in 1991 • Seafood business in Turkey • Leading distributor of fresh and frozen seafood • Smokehouse • Other shareholder: Alarko Group (50%) • Well reputed and solid listed conglomerate • C
Slide 6: External considerations 1st Quarter 2005
External considerations 1st Quarter 2005 • Improved salmon and trout prices • Prices increased in Q1 05 • Prices in Q1 05 higher than comparable figures in Q1 04 • Prices so far in Q2 05 higher than prices in Q2 04 • Strong market, but great uncertainty, re EU punity duties • Currencies • Future wil
Slide 7: Agenda
Agenda 2 Key financial figures Q1 2005 3 Lerøy at a glance 4 Lerøy Seafood Group – Company profile 5 Market glance
Slide 8: Yearly turnover LSG
Yearly turnover LSG Mill. NOK 4000 3500 3000 2500 2000 1500 1000 500 0 1980 1985 1990 1995 1999 2000 2001 2002 2003 2004
Slide 9: Pre-tax earnings LSG
Pre-tax earnings LSG Mill. NOK (NGAAP) 120 100 80 60 40 20 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Slide 10: Resultatregnskap / Income Statement Q1 2005
Resultatregnskap / Income Statement Q1 2005 Alle tall i NOK 1.000 / All figures in NOK 1,000 Resultatregnskap / Income Statement (A lle tall i NOK 1.000 / A ll f igures in NOK 1,000) (IFRS) (IFRS) (NGAAP) (IFRS) Q1 - 2005 Q1 - 2004 Q1 - 2004 2004 Salgsinntekter / Operating revenue 831 848 857 399 85
Slide 11: Balanse / Balance Sheet Q1 2005
Balanse / Balance Sheet Q1 2005 Alle tall i NOK 1.000 / All figures in NOK 1,000 Balanse / Balance Sheet (A lle tall i NOK 1.000 / A ll f igures in NOK 1,000) (IFRS) (IFRS) (NGAAP) (IFRS) Q1 - 2005 Q1 - 2004 Q1 - 2004 2004 Immaterielle eiendeler / Intangible assets 287 083 272 425 270 111 287 237 Va
Slide 12: Balanse / Balance Sheet Q1 2005
Balanse / Balance Sheet Q1 2005 Alle tall i NOK 1.000 / All figures in NOK 1,000 Balanse / Balance Sheet (A lle tall i NOK 1.000 / A ll f igures in NOK 1,000) (IFRS) (IFRS) (NGAAP) (IFRS) Q1 - 2005 Q1 - 2004 Q1 - 2004 2004 Innskutt egenkapital / Equity contributions 782 888 656 053 656 053 656 103 O
Slide 13: Key figures – Lerøy Seafood Group Q1 2005 (IFRS)
Key figures – Lerøy Seafood Group Q1 2005 (IFRS) (IFRS) (IFRS) (NGAAP) (IFRS) Nøkkeltall / Key figures Q1 - 2005 Q1 - 2004 Q1 - 2004 2004 Resultatmargin / Profit margin 6,29 % 3,35 % 2,48 % 3,84 % Driftsmargin / Operating margin 5,80 % 3,99 % 3,26 % 3,73 % Resultat per aksje / Earnings per share 1,1
Slide 14: Lerøy Seafood Group consolidated Q1 2005
Lerøy Seafood Group consolidated Q1 2005 • Lerøy Seafood Group’s total equity is 971,6 mill NOK • Subsidiaries share of group equity is • Hallvard Lerøy AS 100% 125 • Lerøy Midnor AS 100% 292 • Lerøy Sverige AB 100% 36 • Lerøy Smøgen Seafood AB 100% 64 • Sigerfjord Aqua AS 90% 8 • Nordvik SA 80% 7 •
Slide 15: Affiliated companies
Affiliated companies IFRS IFRS NGAAP IFRS Balance at 31.03.2005 31.03.2004 31.03.2004 31.12.2004 Norskott Havbruk AS 142,1 121,8 154,7 137,0 Hydrotech Gruppen AS 81,5 75,2 88,8 79,3 Egersund Fisk AS 26,4 23,0 22,9 25,5 Andre 0,3 0,0 0,0 0,3 Total 250,3 220,1 266,4 242,1 Lerøy Seafood Group's total e
Slide 16: Lerøy Seafood Group Consolidated Key figures
Lerøy Seafood Group Consolidated Key figures • Total equity (51,56 %) 972 mill • Net interest bearing debt 84 mill • Total intangible assets 287 mill • Licences smolt / fish farming Norway 205 mill • Goodwill / def. Tax 82 mill • Total LSG-shares 31.12.04: 34.440.767 • Share issue Jan. 2005, share p
Slide 17: Agenda
Agenda 1. 3 Lerøy at a glance 2. 4 Lerøy Seafood Group – Company profile 3. 5 Market glance
Slide 18: 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, Spain, Italy, Japan, China, USA)
Slide 19: Hallvard Lerøy AS distribution network
HALLVARD LEROY AS DISTRIBUTION FRANCE NORDVIK DISTRIBUTION UK SFF / LEROY DISTRIBUTION PORTUGAL PORTNOR DIRECT EXPORT LEROY FRANCE LEROY CHINA LEROY ITALY LEROY US LEROY JAPAN LEROY SPAIN DISTRIBUTION NORWAY DISTRIBUTION LER@Y SWEDEN PROCESSING LER@Y SWEDEN FARMING / PROCESSING NORWAY
Slide 20: Lerøy Seafood Group - Sales per market Q1 2005
Lerøy Seafood Group - Sales per market Q1 2005 Others Norway 2,0 % 9,0 % USA and Canada 9,3 % Asia Pacific 14,1 % Western Europe 58,7 % Eastern Europe 7,0 %
Slide 21: Lerøy Seafood Group - Sales per product Q1 2005
Lerøy Seafood Group - Sales per product Q1 2005 Shellfish Salmontrout 4,9 % 7,1 % Other/other species 5,3 % Pelagic fish 4,1 % Whole salmon 44,7 % White fish 10,3 % Processed salmon 23,6 %
Slide 22: Lerøy Seafood Group
Lerøy Seafood Group • Norway’s largest seafood exporter • 10,6 % share of Norwegian Seafood tot exports value • 14,6 % of Norwegian salmon export in 2004 • 11,9 % of Norwegian salmon export in 2003 • 27,6 % of Norwegian value added salmon export • Major shareholder in fish farming operations • Lerøy
Slide 23: Lerøy Seafood Group
Lerøy Seafood Group • Steady growth in operating profit and strong balance sheet • Stable earnings despite turbulence in the sea food industry • Growth potential within recently acquired businesses • Satisfactory liquidity • Professional and highly motivated employees • Strong Partnerships / Network
Slide 24: Lerøy Seafood Group 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 25: Shareholders 10.05.05
Shareholders 10.05.05 Shareholder No. of shares Ow nership share Ole-Eirik Lerøy 4 685 000 12,37 % Ferd Invest AS 3 000 000 7,92 % Odin Norge 1 976 300 5,22 % Morgan Stanley & Co 1 961 900 5,18 % Skagen Vekst 1 855 835 4,90 % MP Pensjon 1 655 984 4,37 % Knut Hallvard Lerøy 1 253 210 3,31 % Goldman S
Slide 26: Agenda
Agenda 1. 4 Lerøy Seafood Group – Company profile 2. 5 Market glance
Slide 27: Lerøy Seafood Group ASA group structure
Lerøy Seafood Group ASA Sales Sales&&Distribution Distribution Production Production Lerøy Lerøy Lerøy Hallvard Hallvard Nordvik SA Portnor Lda LerøySmøgen Smøgen Lerøy Lerøy Sigerfjord Sigerfjord Sverige AB Seafood Sverige AB Lerøy LerøyAS AS Nordvik SA 80% Portnor Lda 60% SeafoodAB AB Midnor AS Mi
Slide 28: Lerøy Midnor AS
Lerøy Midnor AS
Slide 29: Description of Lerøy Midnor AS Production
Description of Lerøy Midnor AS Production Smolt: Value adding: • 6,0 mill. smolt per year (salmon/trout) • Capacity of appr. 4.000 t per year • Production of skin and bone free portions and fillets Farming: • 28 licences (salmon/trout) Organisation: • 2004: 18.000 gwt • Excellent management • 2005E:
Slide 30: Lerøy Midnor AS Results and balance Q1 - 2005
Lerøy Midnor AS Results and balance Q1 - 2005 Q1 - 2004 Q1 - 2004 31.12.2004 NOKm (IFRS) (IFRS) (NGAAP) (IFRS) Revenues 126,6 107,5 107,5 413,0 EBITDA* 31,8 19,7 15,8 61,2 EBIT 24,7 12,8 8,9 33,3 Pre tax 21,3 9,4 5,5 20,6 Volumes (gwt) 5,3 4,7 4,7 18,3 *Effect IFRS-adjustment 9,2 3,9 0,0 0,2 Q1 - 20
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Slide 33: Norskott Havbruk (Scottish Sea Farms Ltd.)
Norskott Havbruk (Scottish Sea Farms Ltd.) • BRC • SQS • ISO 9002 • ISO 14 001 • Label Rouge • Investor in people • VIBES of Scotland
Slide 34: Norskott Havbruk (Scottish Sea Farms Ltd.)
Norskott Havbruk (Scottish Sea Farms Ltd.) • Production capacity: 25 000 – 30 000 gwt • Self sufficient with high quality smolt • Opportunity to sell surplus high quality smolt • Volume harvested in 2004: 24 100 gwt • Est. harvest volume 2005E: 19 000 – 21 000 gwt • Additional processing and sales:
Slide 35: Norskott Havbruk
Norskott Havbruk Q1 - 2005 Q1 - 2004 Q1 - 2004 31.12.2004 NOKm (IFRS) (IFRS) (NGAAP) (IFRS) Revenues 196,5 146,8 146,8 706,1 EBITDA* 21,5 12,6 14,4 96,3 EBIT 13,6 4,7 6,3 67,7 Pre tax 6,7 -2,4 -0,8 37,8 Volumes (gwt) 5,7 4,9 4,9 24,1 *Effect IFRS-adjustment -6,7 -1,8 0,0 18,1 Q1 - 2005 Q1 - 2004 Q1
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Slide 37: Hydrotech Gruppen AS (39%)
Hydrotech Gruppen AS (39%) • Fish farms in Norway • 17 licenses • Estimated sales 2005: • Salmon and trout estimated : 11 gwt -12 gwt • Smolt production: appr. 5 mill • Well-boat shipping co. • Processing plant
Slide 38: Hydrotech Gruppen AS
Hydrotech Gruppen AS Q1 - 2005 Q1 - 2004 Q1 - 2004 31.12.2004 NOKm (IFRS) (IFRS) (NGAAP) (IFRS) Revenues 61,9 63,9 63,9 318,6 EBITDA* 16,2 3,8 3,8 37,9 EBIT 11,5 -0,8 -0,9 19,3 Pre tax 8,8 -3,4 -3,5 9,4 Volumes (gwt) 2,4 2,6 2,6 11,6 *Effect IFRS-adjustment 0,0 0,0 0,0 0,0 Q1 - 2005 Q1 - 2004 Q1 - 2
Slide 39: 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 40: Agenda Market glance
Agenda 1. 5 Market glance
Slide 41: 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 10.05.05. 1997-14 1997-27 1997-40 1998-1 1998-14 1998-27 1998-40 1998-53 1999-13 1999-26 1999-39 1999-52 2000-13 Fresh Atlantic Salmon Norway (4-5 kgs) 2000-26 2000-39 2000-52 2001-13 2001-26 2001-3
Slide 42: Salmon export from Norway as of week 19-05
Salmon export from Norway as of week 19-05. Fresh atlantic salmon, cross-section, FCA Oslo. Av. Q1-2004 NOK 22,38 Av. Q1-2005 NOK 23,44 Up by 4,7 %. 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 28,00 A.20,23 A.23,44 A.23,95 A.17,24 A.18,04 A
Slide 43: Market development for Atlantic Salmon from Norway Q1-2005 vs Q1-2004
Market development for Atlantic Salmon from Norway Q1-2005 vs Q1-2004 (01.01-31.03 2005 vs 2004) Volume 2004 Volume 2005 Change Value 2004 Value 2005 Change EU 82 708 87 335 6% 1 821 604 2 013 073 11 % Japan 9 741 7 847 -19 % 244 971 187 011 -24 % USA 3 133 2 460 -21 % 87 272 85 542 -2 % Others 18 1
Slide 44: Atlantic salmon – supply
Atlantic salmon – supply Supply Change Change 2004 03-04 2005 E 04-05E Norw ay 537 000 6% 534 500 0% Chile 344 900 23 % 394 100 14 % UK 159 800 -2 % 122 200 -24 % Canada 89 000 -3 % 95 600 7% Faroe Islands 36 800 -22 % 14 600 -60 % Ireland 12 100 -34 % 17 500 45 % USA 13 300 -26 % 9 600 -28 % Others
Slide 45: Harvest quantities Atlantic Salmon World Wide
Harvest quantities Atlantic Salmon World Wide Volumes in tons Yearly change in % 1 400 000 18 +6% -0,2% 16 1 200 000 +8% +7% 14 +13% 1 000 000 +11% 12 +16% 800 000 10 8 600 000 6 400 000 4 200 000 2 0 0 1998 1999 2000 2001 2002 2003 2004 2005E Harvest Quantity Yearly change in % in harvest quantity
Slide 46: Drivers Salmon per 30.04.2005
Drivers Salmon per 30.04.2005 • Norway total export volume of Atlantic Salmon (165.486 mt) + 10 % • Norway – EU (volume Atlantic Salmon) (120.301 mt) + 9% • Norway – EU (value Atlantic Salmon) (2.798.641 MNOK) + 14 % • Norway – Russia (volume Atlantic Salmon) (16.661 mt) + 73 % • Norway - Feed sales
Slide 47: Thank you
Thank you ¥