Leroy Seafood Group ASA · OSL:LSG

Leroy Seafood Group ASA — Lerøy Seafood Group — Q1 2003 Earnings Presentation

43 slides from Leroy Seafood Group ASA's earnings presentation, May 15, 2003

  1. Slide 1: Lerøy Seafood Group 1st quarterly report 2003

    Lerøy Seafood Group • 1st quarterly report 2003 • May 15th • Ole-Eirik Lerøy • CEO • Helge Singelstad • CFO

  2. Slide 2: Contents

    Contents Sections Page I Considerations 3 II Key financial figures Q1 2003 9 III Lerøy at a glance 19 IV Lerøy Seafood Group - Company profile 23 V Market glance 37

  3. Slide 3: Internal considerations 1st Quarter 2003

    Internal considerations 1st Quarter 2003 • Financially Solid • Well positioned for future strategic growth • Proposed dividend for 2002 NOK 0,60 per share • Ex dividend May 23rd • Payment date June11th • 1.404 shareholders per 13.05.03 • Lerøy Sweden • Focus on operation and future synergies • Commo

  4. Slide 4: External considerations 1st Quarter 2003

    External considerations 1st Quarter 2003 • Weak salmon and trout prices • Price increase through Q1 – but higher prices needed • Uncertainty in price development • Difficult market situation in both pelagic and white fish sectors • Weakened financial performance throughout the industry enhances rest

  5. Slide 5: Norway / EU - dumping

    Norway / EU - dumping • Salmon agreement 1997 – 2002 • Feed quotas • MIP • Export duty

  6. Slide 6: Aqua culture

    Aqua culture • Cyclic • Growing demand • Over supply • Loss position • Reduced supply • Market orientation • Increased prices

  7. Slide 7: Aqua culture

    Aqua culture • Changes • Reorganization • Consolidation • Restructuration • Market orientation

  8. Slide 8: Contents

    Contents Sections Page I Considerations 3 II Key financial figures Q1 2003 9

  9. Slide 9: Lerøy Seafood Group - Turnover mill. NOK

    Lerøy Seafood Group - Turnover mill. NOK 3000 2500 2000 1500 1000 500 0 1980 1985 1990 1995 1999 2000 2001 2002

  10. Slide 10: Lerøy Seafood Group - Pre-tax earnings mill. NOK

    Lerøy Seafood Group - Pre-tax earnings mill. NOK 60 50 40 30 20 10 0 1994 1995 1996 1997 1998 1999 2000 2001 2002

  11. Slide 11: Resultatregnskap / Income Statement Q1-03

    Resultatregnskap / Income Statement Q1-03 (Alle tall i NOK 1.000 / All figures in NOK 1,000) Q1 - 2003 Q1 - 2002 2 002 Salgsinntekter / Operating revenues 601 659 578 657 2 555 606 Vareforbruk / Cost of goods sold 537 161 525 267 2 326 928 Lønn og andre personalkostnader / Sal. and other personnel 2

  12. Slide 12: Balanse / Balance Sheet Q1-03

    Balanse / Balance Sheet Q1-03 (Alle tall i NOK 1.000 / All figures in NOK 1,000) 31.03.03 31.03.02 31.12.02 Immaterielle eiendeler / Intangible assets 24 118 15 796 23 700 Varige driftsmidler / Tangible fixed assets 67 334 43 379 66 714 Finansielle anleggsmidler / Financial fixed asse 287 116 306 56

  13. Slide 13: Lerøy Seafood Group consolidated

    Lerøy Seafood Group consolidated • Lerøy Seafood Group’s total equity is 649,8 mill NOK • Subsidiarie’s share of group equity is 230,5 mill NOK • Operating profit for Q1 2003 is 17,3 mill NOK

  14. Slide 14: Affiliated companies

    Affiliated companies Balance at 31.03.03 31.12.02 Norskott Havbruk AS (50%) 152,4 mill 153,0 mill Hydrotech Gruppen AS (39%) 98,3 mill 104,0 mill Egersund Fisk AS (27%) 21,7 mill 22,0 mill Total 272,4 mill 279,0 mill Lerøy Seafood Group’s total equity 649,8 mill 641,1 mill

  15. Slide 15: Balanse / Balance Sheet Q1-03 cont.

    Balanse / Balance Sheet Q1-03 forts./cont. (Alle tall i NOK 1.000 / All figures in NOK 1,000) 31.03.03 31.03.02 31.12.02 Innskutt egenkapital / Equity contributions 505 288 203 284 505 342 Opptjent egenkapital / Earned equity 119 371 115 549 113 130 Minoritetsinteresser / Minority interests 25 140 8

  16. Slide 16: Key figures – Lerøy Seafood Group Q1-03

    Key figures – Lerøy Seafood Group Q1-03 Nøkkeltall / Key figures Q1 - 2003 Q1 - 2002 2002 Resultatmargin / Profit margin 1,83 % 1,87 % 1,57 % Driftsmargin / Operating margin 2,87 % 2,79 % 2,15 % Resultat per aksje / Earnings per share 0,20 0,39 1,13 Utvannet res. per aksje / Dil. Earn. per share 0,2

  17. Slide 17: Key figures – Lerøy Seafood Group Q1-03

    Key figures – Lerøy Seafood Group Q1-03 Nøkkeltall / Key figures Q1 - 2003 Q1 - 2002 2002 Avkastning på syssels. kapital / ROCE 2 ) 8,22 % 13,03 % 8,75 % Egenkapitalandel / Equity ratio 57,83 % 41,26 % 53,50 % Netto renteb. gjeld / Net interest bearing debt - 107 876 - 2) Annualisert / annualized Le

  18. Slide 18: Contents

    Contents Sections Page I Considerations 3 II Key financial figures Q1 2003 9 III Lerøy at a glance 19

  19. Slide 19: Lerøy Seafood Group

    Lerøy Seafood Group • Norway’s largest seafood exporter • 7,63% market share of Norwegian Seafood total exports (by value) • 12% of Norwegian salmon export in 2002 • Major shareholder in fish farming operations • 2nd largest Scottish salmon producer (50%) • Hydrotech-Gruppen AS (39%) • Japan single

  20. Slide 20: Lerøy Seafood Group

    Lerøy Seafood Group • Global distribution network • Global distribution from Head Office in Bergen • Local distribution and processing in Sweden • Local representative offices in some key markets (France, Spain, Italy, Japan, China, USA)

  21. Slide 21: Lerøy Seafood Group

    Lerøy Seafood Group • Steady growth in profits and strong balance sheet • Stable earnings despite turbulence in the salmon industry • Growth potential within recently acquired businesses • Satisfactory liquidity / credit facilities • Professional and highly educated employees

  22. Slide 22: Contents

    Contents Sections Page I Considerations 3 II Key financial figures Q1 2003 9 III Lerøy at a glance 19 IV Lerøy Seafood Group - Company profile 23

  23. Slide 23: Lerøy Seafood Group ASA structure

    Lerøy Seafood Group ASA Sales & Distribution Farming/other Associated companies Norskott Lerøy Smøgen Lerøy Havbruk AS Hallvard Lerøy AS Nordvik SA 50% Seafood AB Sverige AB 100% 80% 51% 80% Hydrotech Gruppen AS Sales and Sales and Sales and Sales and 39% production distribution distribution ww dist

  24. Slide 24: LSG - Consolidated

    LSG - Consolidated PELAGIC WHITEFISH FARMED FISH HALLVARD LERØY AS SALES - MARKETING DISTRIB. FRANCE DISTRIBUTION Nordvik DIRECT NORWAY EXPORT DISTRIBUTION UK DISTRIBUTION SSF / LERØY Lerøy Sweden Lerøy Lerøy Lerøy France Italy Spain Lerøy Lerøy China Japan Lerøy US

  25. Slide 25: Lerøy Seafood Group - Sales per market

    Lerøy Seafood Group - Sales per market Q 1 - 03 Others Norway 1% 9% USA and Canada 9% 2002 Others Norway 1% USA and Canada 8 % Europe 7% Asia Pacific 56 % 18 % Asia Pacific Europe 19 % 55 % Eastern Europe 7% Eastern Europe 10 %

  26. Slide 26: Lerøy Seafood Group - Sales per product

    Lerøy Seafood Group - Sales per product Q 1 - 03 Other products 4% Other species 14 % 2002 Other products 3% Whole salmon Pelagic fish Other species 7% 42 % 12 % Whole salmon Pelagic fish 38 % 11 % White fish 13 % White fish Processed salmon 15 % 20 % Processed salmon 21 %

  27. Slide 27: Shareholders 11.05.03

    Shareholders 11.05.03 Shareholder No. of shares Ownership share Ferd Private Equity 5 781 307 19,64 % Ole-Eirik Lerøy 4 685 000 15,91 % Hallvard Lerøy Jr. 1 490 900 5,06 % Skagen Vekst 1 300 000 4,42 % SND Invest AS 1 296 118 4,40 % Knut Hallvard Lerøy 1 253 210 4,26 % Bremnes Fryseri AS 1 124 669 3

  28. Slide 28: Lerøy Seafood Group - Global organization

    Lerøy Seafood Group - Global organization Norway Sweden Farming Dist. & Sales Scotland/Shetland Dist. & Sales Farming Dist. & Sales Japan Spain, France Dist. & Sales Dist. & Sales Italy Dist. & Sales China Dist. & Sales North America Dist. & Sales

  29. Slide 29: Norskott Havbruk (Scottish Sea Farms Ltd.)

    Norskott Havbruk (Scottish Sea Farms Ltd.) • Production capacity: 25.000 – 30.000 gwt • Volume harvested in 2002: 19.000 gwt • Est. harvest volume 2003: 22.000 – 24.000 gwt • Additional processing and sales: 8.000 gwt • 2 processing plants

  30. Slide 30: Norskott Havbruk (Scottish Sea Farms Ltd.)

    Norskott Havbruk (Scottish Sea Farms Ltd.) • SQS • Label Rouge • ISO 9002 • ISO 14 001 • Investor in people • VIBES of Scotland

  31. Slide 31: Norskott Havbruk

    Norskott Havbruk NOKm Q1 - 2003 Q1 - 2002 31.12.2002 Revenues 142,8 134 562,8 EBITDA 12,7 8,7 37,2 EBIT 5,5 -0,6 7,9 Pre tax -0,8 -7,8 -20,9 Volume gw (t) 5,2 5,3 19,0 Balance sheet 31.03.2003 31.03.2002 31.12.2002 Licences, Goodwill 380,2 386,1 381,7 Fixed assets 92,3 99,6 91,0 Inventories 323,0 30

  32. Slide 32: Hydrotech Gruppen AS (39%)

    Hydrotech Gruppen AS (39%) • Ownership • 39% owned by Lerøy Seafood Group ASA • 57.3% owned by L & K Karlsen Holding AS • 3.7% owned by others • Wholly integrated fish farms in Norway • 17 wholly owned licenses • Yearly production: • Salmon and trout estimated: 15,000 gwt • Smolt production: appr. 5

  33. Slide 33: Hydrotech Gruppen

    Hydrotech Gruppen NOK Q1 - 2003 Q1 - 2002 31.12.2002 Revenues 84,8 61,6 349,0 EBITDA -3,8 0,2 25,7 EBIT -8,5 -5,4 6,5 Pre tax -14,9 15,6 3,7 Balance sheet 31.03.2003 31.03.2002 31.12.2002 Licences / Goodwill 140,6 138,2 141,2 Fixed assets 173,5 164,7 175,4 Inventories 195,0 173,8 217,7 Other current

  34. Slide 34: Egersund Fisk AS (27%)

    Egersund Fisk AS (27%) • Shareholder structure • Lerøy 27% • SalMar 27% • Egersund Fiskeriinvestering 9% • Others 37% (less than 4% each) • Pelagic activity • Fish oil, fish meal • Pelagic fish for consumption • Ownership in vessels for wild catch • Production of ice • Part ownership acquired in 200

  35. Slide 35: Slide 35

  36. Slide 36: Contents

    Contents Sections Page I Considerations 3 II Key financial figures Q1 2003 9 III Lerøy at a glance 19 IV Lerøy Seafood Group - Company profile 23 V Market glance 37

  37. Slide 37: Norwegian export of 1988 - 2002

    Norwegian export of 1988 - 2002 35 000 Catch Farmed 30 000 25 000 20 000 15 000 10 000 5 000 0 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 © EFF, Datakilde=SSB

  38. Slide 38: Fisheries share of export (Norway 2002)

    Fisheries share of export (Norway 2002) Paper 4,6 % Fish products Other 14,7 % products 63,1 % Metals exept iron and steel Iron and steel 13,9 % 3,6 % © EFF, Datakilde=SSB

  39. Slide 39: Atlantic salmon – supply side

    Atlantic salmon – supply side Market Changes Growth Growth 1000 tonnes 2001 2002 01 - 02 2003E 2002-03E Norway 413 444 7,4 474 6,7 % Chile 245 272 10,9 284 4,5 % UK 131 142 4,2 142 0 - 2% Canada 97 96 -0,6 88 - 8,2 % Faeroe Islands 41 42 2,9 36 -14 % Ireland 24 22 -5,9 23 3% USA 23 15 -34,8 18 17 %

  40. Slide 40: Atlantic salmon – demand side

    Atlantic salmon – demand side Market Volume Volume Volume Change 1000 tonnes 2001 2002E 2003E (y/y) EU 500 500 515 3% USA 255 277 313 13% Japan 65 57 57 0% Eastern Europe 30 49 64 30% South East Asia 30 39 39 0% Other 115 98 105 7% Total 1 000 1 020 1 093 7%

  41. Slide 41: Drivers per 01.05.03

    Drivers per 01.05.03 • Norway – EU (76.500 mt) + 15,9 % • Norway – Eastern Europe (fresh 8.400 mt) + 62,4 % • Norway – Eastern Europe (frozen 5.200 mt) - 5,6 % • Norway - Japan (8.500 mt) - 21,2 % Feed sales + 4,6% • SARS ? • Norway - Hong Kong (1874 mt) - 19 % • Norway - China (930 mt) + 44 % • Hon

  42. Slide 42: Salmon export from Norway as of week 19-03

    Salmon export from Norway as of week 19-03 NOK / kg Oslo Q4-01 Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 28,00 Aver. Aver. 17,24 Aver. 18,04 Aver. 21,77 Aver. 20,16 Aver. 20,76 Aver. 20,42 20,00 26,00 24,00 22,00 20,00 18,00 16,00 14,00 44 1 48 1 W -0 1 W -0 1 16 2 20 2 W -0 2 28 2 32 2 36 2 40 2 44 2 48

  43. Slide 43: LEROY | Seafood Innovation Since 1899

    LEROY |SEAFOOD INNOVATION SINCE 1899

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