Leroy Seafood Group ASA · OSL:LSG
Leroy Seafood Group ASA — Lerøy Seafood Group — Q2 2005 Earnings Presentation
44 slides from Leroy Seafood Group ASA's earnings presentation, Aug 12, 2005
Slide 1: Lerøy Seafood Group Quarterly report 2nd Quarter 2005
Lerøy Seafood Group • Quarterly report • 2nd Quarter 2005 • August 12th 2005 • Ole-Eirik Lerøy President & CEO • Helge Singelstad Vice president & vice CEO
Slide 2: Agenda
Agenda 1.1 Considerations 2.2 Key financial figures Q2 2005 3.3 Lerøy at a glance 4.4 Lerøy Seafood Group – Company profile 5.5 Market glance
Slide 3: Internal considerations Q2 2005
Internal considerations Q2 2005 Main figures All figures in mill NOK Q2-05 Q2-04 Change YTD-05 YTD-04 Change Turnover 849 851 -0,2 % 1 681 1 709 -1,6 % Operating profit 57 23 147,8 % 105 57 84,2 % Affiliated comp. 11 6 83,3 % 19 5 280,0 % Pre-tax profit 65 25 160,0 % 117 54 116,7 %
Slide 4: Internal considerations 2nd Quarter 2005
Internal considerations 2nd Quarter 2005 • Financially Solid • Well positioned for future organic and strategic growth • 3.041 shareholders as of 09. August 2005 • Considerable rise in share price in Q2 05 • Improved liquidity in traded shares • Consolidated business areas • Satisfactory operation i
Slide 5: Aurora Salmon AS - acquisition July 2005
Aurora Salmon AS - acquisition July 2005 • Acquisition price 133 mill NOK • Shares 70 mill NOK (1.432.079 shares) • Cash 63 mill NOK • Employees: 65 • All activity in one region with head office in Tromsø • 16 licenses for salmon farming
Slide 6: Aurora Salmon AS
Aurora Salmon AS GEODATANAS / FINN.no AUSTAGDE © WEST- Fe
Slide 7: Aurora Salmon AS
Aurora Salmon AS* 31.12.2004 NOKm YTD 2005 (NGAAP) Revenues 63,8 287,8 EBITDA 13,9 6,9 ** ** EBIT 7,5 -6,3 Pre tax 2,7 -17,4 Volumes (gwt) 3,0 Balance sheet 30.06.2005 31.12.2004 Licences, Goodwill 8,7 8,7 Fixed assets 52,5 64,5 Inventories 159,0 122,2 Other current assets 15,8 15,8 Total assets 236
Slide 8: Aurora Salmon AS
Aurora Salmon AS • Estimated harvested volume in 2005 – salmon 10.000 gwt • Estimated harvested volume in 2006 – salmon 13.000 gwt • Slaughtering station • LSG entered into agreement to acquire smolt producer in the region with a production of 2,5 – 3 mill smolt • Significantly higher capacity due t
Slide 9: External considerations 2nd Quarter 2005
External considerations 2nd Quarter 2005 • Improved salmon and trout prices • Prices continued to increase in Q2 05 • Prices in Q2 05 higher than comparable figures in Q2 04 • Prices so far in Q3 05 significantly higher than prices in Q2 05 • Strong market • Currencies • Future will bring great vola
Slide 10: Agenda
Agenda 1.2 Key financial figures Q2 2005 2.3 Lerøy at a glance 3.4 Lerøy Seafood Group – Company profile 4.5 Market glance
Slide 11: Income Statement Q2 2005
Resultatregnskap / Income Statement Q2 2005 Alle tall i NOK 1.000 / All figures in NOK 1,000 Q2 - 2005 Q2 - 2004 YTD 2005 YTD 2004 2004 Salgsinntekter / Operating revenue 849 218 851 254 1 681 067 1 708 653 3 559 399 Vareforbruk / Cost of goods sold 712 841 734 666 1 402 200 1 467 272 3 033 920 Just
Slide 12: Balance Sheet Q2 2005
Balanse / Balance Sheet Q2 2005 Alle tall i NOK 1.000 / All figures in NOK 1,000 (A lle tall i NOK 1.000 / A ll f igures in NOK 1,000) 30.06.05 30.06.04 31.12.04 Immaterielle eiendeler / Intangible assets 286 955 269 829 287 237 Varige driftsmidler / Tangible fixed assets 197 021 178 755 193 139 Fin
Slide 13: Balance Sheet Q2 2005
Balanse / Balance Sheet Q2 2005 Alle tall i NOK 1.000 / All figures in NOK 1,000 30.06.05 30.06.04 31.12.04 Innskutt egenkapital / Equity contributions 782 886 656 113 656 103 Opptjent egenkapital / Earned equity 195 356 103 046 146 323 Minoritetsinteresser / Minority interests 3 751 10 742 4 106 Su
Slide 14: Key figures Q2 2005 (IFRS)
Key figures – Lerøy Seafood Group Q2 2005 (IFRS) Nøkkeltall / Key figures Q2 - 2005 Q 2 - 2004 YTD 2005 YTD 2004 Resultatmargin / Profit margin 8,95 % 2,91 % 6,97 % 3,13 % Driftsmargin / Operating margin 8,05 % 2,72 % 6,24 % 3,36 % Resultat per aksje / Earnings per share 1,54 0,57 2,48 1,17 Utvannet
Slide 15: Lerøy Seafood Group consolidated Q2 2005
Lerøy Seafood Group consolidated Q2 2005 • Lerøy Seafood Group’s total equity is 982 mill NOK • Subsidiaries share of group equity is • Hallvard Lerøy AS 100% 133 • Lerøy Midnor AS 100% 298 • Lerøy Sverige AB 100% 36 • Lerøy Smøgen Seafood AB 100% 64 • Sigerfjord Aqua AS 90% 8 • Nordvik SA 80% 7 • P
Slide 16: Affiliated companies
Affiliated companies All figures in mill NOK Q2 - 2005 Q2 - 2004 YTD 2005 YTD 2004 Hydrotech-Gruppen AS (39%) 5 781 -1 097 8 067 -2 510 Egersund Fisk AS (27%) 571 680 1 440 1 095 Norskott Havbruk AS (50%) 3 853 6 180 8 920 5 968 Andre / Others 531 0 349 0 Sum / Total 10 736 5 763 18 776 4 553
Slide 17: Consolidated Key figures 30.06.05
Lerøy Seafood Group Consolidated Key figures 30.06.05 • Total equity (53,4 %) 982 mill NOK • Net interest bearing debt 121 mill NOK • Total intangible assets 287 mill NOK • Licences smolt / fish farming Norway 205 mill • Goodwill / def. tax 82 mill • Total LSG-shares January 2005: 37.884.767 • Share
Slide 18: Agenda
Agenda 1.3 Lerøy at a glance 2.4 Lerøy Seafood Group – Company profile 3.5 Market glance
Slide 19: 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, Italy, Japan, China, USA)
Slide 20: Global 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 21: Sales per market Q2 2005
Lerøy Seafood Group - Sales per market Q2 2005 Others Norway 1,2 % 9,2 % USA and Canada 8,1 % Asia Pacific 11,1 % Eastern Europe Western Europe 5,4 % 65,1 %
Slide 22: Sales per product Q2 2005
Lerøy Seafood Group - Sales per product Q2 2005 Shellfish Salmontrout 4,1 % Other/other species 4,6 % 6,3 % Pelagic fish 1,3 % White fish 10,9 % Whole salmon 48,1 % Processed salmon 24,7 %
Slide 23: 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 24: Lerøy Seafood Group
Lerøy Seafood Group • Steady growth in operating profit and strong balance sheet • Satisfactory earnings despite turbulence in the sea food industry • Growth potential within recently acquired businesses • Satisfactory liquidity • Professional and highly motivated employees • Strong partnerships / N
Slide 25: 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 26: Shareholders 09.08.05
Shareholders 09.08.05 Shareholder No. of shares Ow nership share Ole-Eirik Lerøy 4 685 000 11,92 % Ferd Invest AS 3 000 000 7,63 % DnB Nor Bank ASA 2 316 279 5,89 % Odin Norge 2 065 500 5,25 % Morgan Stanley & Co 1 949 200 4,96 % Skagen Vekst 1 855 835 4,72 % MP Pensjon 1 655 984 4,21 % Goldman Sach
Slide 27: Agenda
Agenda 1.4 Lerøy Seafood Group – Company profile 2.5 Market glance
Slide 28: Lerøy Seafood Group ASA structure
Lerøy Seafood Group ASA Sales Sales&&Distribution Distribution Production Production Affiliated Affiliated Lerøy LerøyMidnor MidnorAS Norskott Hallvard HallvardLerøy LerøyAS AS 100% AS NorskottHavbruk HavbrukAS* AS* 100% 100% 50% 100% 50% Lerøy Sverige AB Aurora AuroraSalmon SalmonAS Hydrotech Grupp
Slide 29: Lerøy Midnor AS
Lerøy Midnor AS Smolt: • 6,0 mill. smolt per year (salmon/trout) Farming: • 28 licences (salmon/trout) • 2004: 18.000 gwt • 2005E: 20.000 gwt Processing: • Capacity of 85-90 tonnes per shift Value adding: • Capacity of appr. 4.000 t per year • Production of skin and bone free portions and fillets
Slide 30: Lerøy Midnor AS
Lerøy Midnor AS NOKm Q2 - 2005 Q2 - 2004 YTD 2005 YTD - 2004 31.12.2004 Revenues 129,2 82,5 255,8 190,0 413,0 EBITDA* 54,1 6,0 85,9 25,7 61,2 EBIT 47,1 -1,2 71,8 11,7 33,3 Pre tax 44,3 -4,0 65,6 5,4 20,6 Volumes (gwt) 4,8 3,3 10,1 8,0 18,3 *Effect IFRS-adjustment 19,3 -7,8 28,5 -3,9 0,2 Balance shee
Slide 31: 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 32: 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: 20 000 – 21 000 gwt • Additional processing and sales:
Slide 33: Norskott Havbruk
Norskott Havbruk NOKm Q2 - 2005 Q2 - 2004 YTD - 2005 YTD - 2004 31.12.2004 Revenues 162,3 169,8 358,8 316,5 706,1 EBITDA* 17,3 27,0 38,9 39,6 96,3 EBIT 11,1 21,1 26,1 27,2 73,5 Pre tax 4,4 13,6 12,5 12,6 43,6 Volumes (gwt) 4,3 4,6 10,0 9,5 24,1 *Effect IFRS-adjustment -11,0 4,3 -17,7 2,5 18,1 Balanc
Slide 34: 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 35: Hydrotech Gruppen AS
Hydrotech Gruppen AS NOKm Q2 - 2005 Q2 - 2004 YTD 2005 YTD - 2004 31.12.2004 Revenues 80,8 68,2 142,7 132,1 318,6 EBITDA* 28,3 5,2 44,5 9,0 37,9 EBIT 23,7 0,6 35,2 -0,2 19,3 Pre tax 21,6 -2,3 30,4 -5,7 9,4 Volumes (gwt) 2,6 2,0 5,0 9,5 11,6 *Effect IFRS-adjustment 3,3 0,0 3,3 0,0 0,0 Balance sheet 3
Slide 36: 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 37: Agenda: Market glance
Agenda 1.5 Market glance
Slide 38: 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 08.08.05. 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 2
Slide 39: Salmon export from Norway as of week 32-05
Salmon export from Norway as of week 32-05. Av. Q2-2004 NOK 23,10 Fresh atlantic salmon, cross-section, FCA Oslo. Av. Q2-2005 NOK 24,89 Up by 7,7 %. Av. H1-2004 NOK 22,74 Av. H1-2005 NOK 24,16 NOK / kg Up by 6,2 %. Oslo Q3-05 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
Slide 40: Market development for Atlantic Salmon from Norway H1 2004 vs H1 2005
Market development for Atlantic Salmon from Norway H1-2004 vs H1-2005 (01.01-30.06 2004 vs 2005) Volume 2004 Volume 2005 Change Value 2004 Value 2005 Change EU 170 628 182 110 7% 3 761 238 4 305 004 14 % Japan 18 086 15 174 -16 % 459 825 374 469 -19 % USA 6 312 4 114 -35 % 194 775 140 249 -28 % Othe
Slide 41: Atlantic salmon – supply
Atlantic salmon – supply Supply Change Change Change 2004 03-04 2005 E 04-05E 2006 E 05E-06E Norw ay 537 000 6% 545 500 2% 531 400 -3 % Chile 346 200 23 % 381 400 10 % 407 500 7% UK 159 800 -2 % 116 300 -27 % 117 800 1% Canada 89 000 -3 % 95 600 7% 97 500 2% Faroe Islands 36 800 -22 % 15 400 -58 % 7
Slide 42: Harvest quantities Atlantic Salmon World Wide
Harvest quantities Atlantic Salmon World Wide Volumes in tons Yearly change in % 1 400 000 16 +6% - 1% +1% +8% 1 200 000 14 +7% +13% 12 1 000 000 +11% 10 +16% 800 000 8 600 000 6 4 400 000 2 200 000 0 0 -2 1998 1999 2000 2001 2002 2003 2004 2005E 2006E Harvest Quantity Yearly change in % in harvest
Slide 43: Drivers Salmon per 30.06.2005
Drivers Salmon per 30.06.2005 • Norway total export volume of Atlantic Salmon (244.002 mt) + 5% • Norway – EU (volume Atlantic Salmon) (182.110 mt) + 7% • Norway – EU (value Atlantic Salmon) (4.305.004 TNOK) + 14 % • Norway – Russia (volume Atlantic Salmon) (22.734 mt) + 53 % • Norway – Feed sales (
Slide 44: Thank you
Thank you ¥