Slide 1: Austevoll Seafood ASA 2nd Quarter 2008
AUSTEVOLL SEAFOOD ASA 2nd Quarter 2008 25.08.2008 Arne Møgster - CEO Britt Drivenes - CFO
Slide 2: Disclaimer
Disclaimer • This Presentation has been produced by Austevoll Seafood ASA (the “Company” or “Austevoll”) solely for use at the presentation to the market held in connection with the announcement of Second quarter results for 2008. • This document contains certain forward-looking statements relating
Slide 3: Agenda
Agenda • Financial Highlights • Overview of AUSS • Key figures Q2 • Market Outlook • ITQ Summary Austevoll Seafood ASA Q2 2008 Presentation - 3
Slide 4: Financial Highlights
Financial Highlights All figures in NOK 1.000 Q2 08 Q2 07 Revenue 860 417 886 360 EBITDA 231 273 265 013 Net interest bearing debt (NIBD) -2 836 884 -2 046 738 Equity Ratio 49 % 48 % Austevoll Seafood ASA Q2 2008 Presentation - 4
Slide 5: Company Overview
Company Overview Austevoll Austevoll Seafood Seafood Peru Chile Norway (Group) (Group) Activities Activities 15.794m 15.794m33 of of anchovy anchovy hold 9.1% -- 22 vessels vessels (2(2 licenses) licenses) hold 9.1% ofof pelagic pelagic fishing fishing 650-700,000 650-700,000 tons tons of of fish fi
Slide 6: Operation in Chile
Operation in Chile Two Fishmeal & fishoil plants 2.000 tons of raw material capacity per day 5 vessels 9.1% of Chilean total Canned tuna, Horse Mackerel Canning mussels and quota (South) plant seafood. Over 2 million cases Presence in all major (48 million cans) supermarket chains and yearly product
Slide 7: Fishing Overview Q2 (Chile)
Fishing Overview Q2 Chile Chile Q2 08 H1 08 2008E 2007 Ow n Catch 50 62 139 139 FOODCORP S.A. Purchase 33 64 65 59 Total ('000 tons) 83 126 204 198 Catches H1 Quota % Total H1 08 Yearly Quota Bycatch Quota 08 caught catches Jurel Caballa % Remaining Jurel Jurel Jurel/Caballa Foodcorp 120'459 53'869
Slide 8: Operation in Peru
Operation in Peru Austral S.A.A. Corporacion Del Mar S.A. (CORMAR) • Head office – Lima Fishing • 38 fishing vessels • 15,794 m3 of anchovy (7.18% real capacity) • 5,474 m3 license capacity for human consumption. Production • 9 fishmeal and oil plants • 2 canning plants • 2 freezing plants Austevoll
Slide 9: Fishing Overview Q2 (Peru)
Fishing Overview Q2 Peru Q2 08 H1 08 2008E 2007 Peru Own Catch 254 289 465 415 Purchase 59 99 170 191 AUSTRAL S.A.A. Total ('000 tons) 313 388 635 606 Season 1 Season 2 Total % Own Catch 136 97 233 7,4 Purchase 27 26 53 Total ('000 tons) 163 123 286 7,4 Total 7.18% hold capacity Source: SGS Peru New
Slide 10: Implementation of MCLB
Implementation of MCLB (Maximum Catch Limits per Boat) • Sustainability of resource. 9 Important reduction in risk associated with the sustainability of the anchoveta biomass in the centre north fishing zones in Peru. • Environmental. 9 Reduction in risk due to improved environment controls and prac
Slide 11: Operation in Norway
Operation in Norway Austevoll Seafood ASA • Head office – Austevoll Consolidated companies • Welcon AS – Main office Oslo • Epax AS – Main Office Aalesund • Atlantic Pelagic AS – Main office Austevoll • Austevoll Fiskeindustri AS – Austevoll • Sir Fish AS - Sirevåg Production • 5 fishmeal and oil pl
Slide 12: Welcon AS
Welcon AS Norway Q2 08 H1 08 2008E 2007 Purchase 117 325 450 487 Total (tons) 117 325 450 487 • Reduced sandeel and blue whiting catches • Lower production cost compared with 07, combined with higher fishmeal prices in Q3 08 will improve margin and profitability Bodø Sildoljefabrikk AS (40% Ownershi
Slide 13: Epax AS
Epax AS Omega-3 Leadership through Purity | Quality | Innovation • Specialist in indication specific Omega-3 marine lipids • Worlds largest producer of Concentrated Omega-3 Triglycerides • QA systems according to Good Manufacturing Practice (GMP) and approved by Norwegian Medicinal Agency for produc
Slide 14: Epax AS - Investments & Innovation
Epax AS - Investments & Innovation 4500 Triglyseride 4000 Capacity investment according to plan; 4000 3 700 Ethylesters 3500 9 1,750 MT installed, tested, approved, and in 3000 operation 2500 2 000 2000 9 Further capacity investment to reach 2,000 MT on 1 450 1 500 1 500 plan aiming for October 2008
Slide 15: Associated companies
Associated companies Lerøy Seafood Group ASA (33.34%) Bergen • 2nd largest salmon company in the world Br. Birkeland AS (40.2%) Austevoll • 2 modern purseiner vessels • 7 salmon farm licenses Modolv Sjøset AS (49%) Træna • Strategically located near herring fishing ground • Production capacity of 52
Slide 16: Agenda
Agenda • Financial Highlights • Overview of AUSS • Key figures Q2 • Market Outlook • ITQ Summary Austevoll Seafood ASA Q2 2008 Presentation - 16
Slide 17: Volume by products
Volume by products Catch and purchase Figures in 1.000 tons Q1 08 Q2 08 2008 NEW E Q1 07 Q2 07 2007 Chile own catch 12 50 139 36 63 139 Chile purchase 31 33 65 26 26 59 Peru own catch 35 254 465 24 212 415 Peru purchase 35 65 170 62 76 191 Norway purchase 208 117 450 309 108 487 TOTAL 321 518 1289 4
Slide 18: Result Q2 2008
Result Q2 2008 Condensed Consolidated Income Statement (unaudited) All figures in NOK 1.000 Q2 08 Q2 07 H1 2008 H1 2007 2007 (audited) Operating income 860 417 886 360 1 602 393 1 734 342 3 468 957 Operating expenses 629 144 621 347 1 301 358 1 332 800 2 985 546 Operating profit before depreciation
Slide 19: Balance 30.06.2008
Balance 30.06.2008 Condensed Consolidated Balance sheet (unaudited) All figures in NOK 1.000 H1 2008 H1 2007 2007 (audited) Intagible assets 1 572 572 1 360 546 1 624 499 Fixed assets 2 494 181 2 458 553 2 575 773 Financial assets 2 432 270 1 820 086 2 451 590 Inventories 835 582 1 083 088 528 055 R
Slide 20: Cash Flow Statement
Cash Flow Statement Condensed Consolidated Cash flow statement (unaudited) All figures in NOK 1.000 Q2 2008 H1 2008 Q2 2007 H1 2007 2007 (audited) Net cash flow from operating activities -69 176 -131 830 89 454 -314 471 277 166 Net cash flow from investing activities -25 415 -154 255 -104 381 -1 202
Slide 21: Q2 2008 EBITDA by Segments
Q2 2008 EBITDA by Segments NOK '000 1 000 000 40 % 35 % 868 028 900 000 29 % 30 % 800 000 27 % 20 % 700 000 600 000 10 % 495 442 500 000 1% 0% 400 000 231 589 -10 % 300 000 221 060 171 762 158 787 200 000 -20 % 64 445 100 000 129 -30 % 0 -7 261 -4 747 -100 000 -40 % Fishmeal/oil Human Trading Elimin
Slide 22: Agenda
Agenda • Financial Highlights • Overview of AUSS • Key figures Q1 • Market Outlook • ITQ Summary Austevoll Seafood ASA Q2 2008 Presentation - 22
Slide 23: Fishmeal
Fishmeal Market situation: ¾ Market sentiment has been very positive during Q2 buoyed by the sharp increase of all protein. ¾ Prices kept on recovering, further pushed by demand from China. ¾ Fishing in Peru remained in line with the 3M tons assigned as country quota. ¾ Unsold stock in Peru (week 32
Slide 24: End Year stock in China forecast at 4 years low
Source: JCICHINA • End Year stock in China is forecast to be at 4 years low. • Consumption in China expected to increased by 20% compared with 07. Austevoll Seafood ASA Q2 2008 Presentation - 24
Slide 25: Fishmeal
Fishmeal Source: Kontali Austevoll Seafood ASA Q2 2008 Presentation - 25
Slide 26: Fishmeal
Fishmeal Source: OILWORLD • Soybean meal up 48% YTD with small technical rebound last week. • Soybean supply from USA at 5 years low. Short term prices depending on weather. Austevoll Seafood ASA Q2 2008 Presentation - 26
Slide 27: Fishoil
Fishoil Market Situation: ¾ Prices for feed grade have slightly decreased in south America then stabilized ¾ Limited unsold stock available. ¾ Current prices standing at USD 1700/MT FOB Peru for feed grade Source: IFFO and premium paid for 18/12 at about USD 400-500/MT. ¾ Un-precedent increase of ve
Slide 28: Human consumption market - Austral
Human consumption market - Austral Breakdown of Sales by destination – FH 2008 CANNED FISH HAITI UK BRAZIL 5% 4% 5% • Strong increase of costs and a lower ITALY PERU 6% 38 % availability of raw material have pushed prices at record high during Q2. • Catches of Jack mackerel & mackerel have been limi
Slide 29: Human consumption market – FoodCorp
Human consumption market – FoodCorp Frozen fish sales VIII Region, Chile Frozen fish As of 30 June 2008 • Avg price USD/MT: 843 (H1 08) (2007:538 (2006: 574) • Total H1 export from Chile: 14 668 t • Prices continue to increase in Q3. 9,283 t 5,385 t Thousands FoodCorp canned fish sales and prices Fo
Slide 30: Epax sales Q2 08 vs 07
Epax sales Q2 08 vs 07 Sales Q2 2008 vs Q2 2007 25 USA 19,8 5,3 LC / well being 6,3 25,9 Mood and Mind 18,5 39,9 Cardiovascular 36,3 0 5 10 15 20 25 30 35 40 45 Q2 2007 Q2 2008 • Strong growth in the USA, conversion from EE to TG continues • Saturated Nordic market • Moderate development in the EU •
Slide 31: Appendix: ITQ Summary
Appendix ITQ SUMMARY Implementation of Quota System in Peruvian anchoveta catches Preliminary Overview Austevoll Seafood ASA Peruvian Quota Presentation - 31
Slide 32: Legal Quota System
Legal Quota System Legislative Decree No. 1084 • The system is only applied on the Peruvian anchoveta fishery and only in the area between the north end of the country and the parallel 16.00.00 south. • Between the parallel 16.00.00 and the south end, the olympic race will still continue. • The quot
Slide 33: Procedure for the calculation of the Quota
Procedure for the calculation of the Quota • In order to establish the individual quota per vessel, these steps must be followed: 9 Finding out which year between 2004 and 2007 each vessel had their best-national catch share, adding those percentages up and performing an adjustment of the figure so
Slide 34: Usage of the Quota
Usage of the Quota • In order to fish the allocated quota, the ship-owner can choose to : a. Capture each quota with each of the vessels who have been granted a quota. b. Capture the total of the quotas allocated to the vessels they own by using a group of own vessels appointed for each season. c. F
Slide 35: Benefits for the affected workers
Benefits for the affected workers System of Compensations for affected workers: • Extraordinary Bonus compensation for Voluntary Resigning. • Program of Benefits: 9 Program of Incentives for labour conversion 9 Program of Development and Promotion of Small Businesses. 9 Consultancy for both programs
Slide 36: Benefits from implementation of Quota System
Benefits from implementation of Quota System • Reduce risk due to increased sustainability of the resource and improved environmental practices and controls across the industry. • The increase of catch period and the subsequence reduction of plant saturation will allow an increase in fishmeal and fi
Slide 37: Benefits from implementation of Quota System
Benefits from implementation of Quota System • Allow Austral to adjust its fixed asset base to the optimum level on catch and fish purchase requirements, cost and quality considerations. • Improved efficiency in catch process, lower maintenance, insurance and other fixed costs by using less vessels.
Slide 38: Thank you
Thank you Austevoll Seafood ASA Peruvian Quota Presentation - 38