Mowi Asa · OSL:MOWI
Mowi Asa — Marine Harvest — Intrafish Seafood Investor Forum 2014
22 slides from Mowi Asa's conference presentation, Oct 31, 2014
Slide 1: Intrafish Seafood Investor Forum
Intrafish Seafood Investor Forum 31 October 2014
Slide 2: Forward looking statements
Forward looking statements This presentation may be deemed to include forward-looking statements, such as statements that relate to Marine Harvest’s contracted volumes, goals and strategies, including strategic focus areas, salmon prices, ability to increase or vary harvest volume, production capaci
Slide 3: Can we produce food in the ocean?
Can we produce food in the ocean? 70 % of the surface Energy efficient and 2% of the food production low emission food production « Leading the blue revolution» Healthy and tasty food Increasing population needs new solutions 3
Slide 4: The responsible choice for the environment…
The responsible choice for the environment… QUANTITY OF FEED FED CARBON EMISSION FRESH WATER CONSUMPTION 4
Slide 5: …for your body…
…for your body… Proteins: Omega-3: Vitamins: Mineral: High quality, High content of Rich in A, D High content of easy digestable Omega-3 fatty and B12 iodine & selen, proteins acids vitamins taurin and sterols 5
Slide 6: …and it's tasty!
…and it’s tasty! AMERICAS EUROPE ASIA Note: Examples of consumer products and branding initiatives from Marine Harvest 6
Slide 7: Biological carrying capacity diminishes growth
Biological carrying capacity diminishes growth 2 500 10 CAGR 9 2.9% 2 000 8 Global harvest (thousand tonnes) EBIT per kg (NOK) 7 CAGR 1 500 6.6% 6 5 1 000 4 CAGR 9.6% 3 500 2 1 0 0 1996 2005 2014 2020 1996-2005 (1) 2006-2014 (2) 2015-2020 Source: Kontali (3) Notes: (1) Average EBIT per kg for the No
Slide 8: Highlights from Q3-2014 results
Highlights from Q3-2014 results Strong earnings - Operational EBIT NOK 912m - Sales contracts reduced impact of market disruptions - Large exceptional costs linked to biology in the quarter Successful start up of feed plant in Norway Agreement to purchase 40 thousand tonnes farming capacity in
Slide 9: Outlook
Outlook Limited supply growth expected in the coming periods - Industry supply response challenging due to sustainability issues - Futures prices NOK ~40 for rest of Q4 and above NOK 40 for 2015 Strong focus on containing biological costs Continued focus on consolidation initiatives in Norway
Slide 10: Marine Harvest business areas
Marine Harvest business areas 220 thousand tonnes vs 414 thousand tonnes vs Global sales network Position global production of global production of Leading position in VAP ~2.6m 2.0m (21%)(1) Successful construction Acquisitive growth in Integration of Morpol Focus and implementation by Norway and C
Slide 11: Fish feed - Key motivations
Fish feed - Key motivations Gradual competitive advantage through intellectual property R&D & rights superior product Capitalise on internal competence to produce the best feed Cleaning the fish oil from impurities Take part in the economic profits in the feed chain Economic Control of key
Slide 12: Fish feed successfully initiated
Fish feed successfully initiated FEED NOK million Q3. 14 Q3. 13 Operating revenues 539 na Operational EBIT 20 na Operational EBIT % 3.7% na Feed sold volume 55 384 na Feed produced volume 56 097 na Exceptional items 0 na Photo: Rune Røstad Profitable operations in the first quarter of operations
Slide 13: MHG Farming – Geographic diversification
MHG Farming – Geographic diversification Norway Region North Volume: 57 000 Norway Region Mid Faroe Islands Volume: 62 000 Volume: 9 000 Canada Volume: 29 000 Norway Scotland Region West Volume: 49 000 Volume: 80 000 Norway Ireland Region South Volume: 6 000 Volume: 55 000 Chile Volume: 66 000 Note:
Slide 14: Output per license in Norway is quite stable and high
Output per license in Norway is quite stable and high Note: Marine Harvest estimates and company disclosures 14
Slide 15: Deliberate low capacity utilisation in Chile
Deliberate low capacity utilisation in Chile Salmonids production per license (HOG thousand tonnes) 1 000 900 800 700 600 500 400 300 200 100 0 Marine Harvest Company A Company B Company C Number of sea 157 150 97 88 water licenses Source: Marine Harvest estimates 15
Slide 16: We have changed our production strategy in Chile and have ample spare capacity
We have changed our production strategy in Chile and have ample spare capacity Harvest volumes MHG in Chile Market share harvest volumes (HOG thousand tonnes) in Chile (%) 100 30 % 95 25 % 90 85 20 % 80 75 15 % 70 10 % 65 60 5% 55 50 0% 2007 2014e 2007 2014e 16
Slide 17: Marine Harvest - leading the world of salmon processing and sales (2013)
Marine Harvest - leading the world of salmon processing and sales (2013) Norway: Sales UK: VAP & Sales Poland: VAP & BeNe: VAP & Sales Sales Prague: VAP & Canada: Sales South Korea: France: VAP & Sales Sales US, LA: VAP & Sales US, Maine: VAP & Germany: VAP & VAP & Sales Sales Spain: VAP & Sales Sal
Slide 18: Sales contracts form an important part of our strategy
Sales contracts form an important part of our strategy and we continue to grow the consumer market share Sales contracts in Norway (% of volumes harvested) 50 % • Contracts with market leading 45 % retailers are increasing 40 % 35 % • Focus on longer term contracts 30 % 25 % 20 % 15 % 10 % 5% 0% 201
Slide 19: Marine Harvest development in Asia
Marine Harvest development in Asia 45 3,0 % 40 2,5 % 35 thousand tonnes 30 2,0 % margin % 25 1,5 % 20 15 1,0 % 10 0,5 % 5 0 0,0 % 2010 2011 2012 2013 2014E Volume (k tonnes) EBIT margin % 19
Slide 20: The “Prada” of seafood in emerging markets
The “Prada” of seafood in emerging markets 20
Slide 21: Our concept stores in Taiwan are gaining popularity
Out concepts stores in Taiwan are gaining popularity and driving consumer awareness 21
Slide 22: Mowi brand name and concept positioning in Asia
Mowi brand name and concept positioning in Asia Mowi - Marine Harvest’s own superior breeding programme - Based on the famous Vosso salmon - Supreme strength and size - Sustainably developed by natural selection - Supreme quality with unique colour guarantee • “Stronger, healthier and tastier salm
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