Austevoll Seafood ASA · OSL:AUSS
Austevoll Seafood ASA — Q2 2016 Earnings Presentation
40 slides from Austevoll Seafood ASA's earnings presentation, Aug 24, 2016
Slide 1: Q2 2016 Financial presentation
Q2 2016 Financial presentation Arne Møgster – CEO Britt Kathrine Drivenes – CFO
Slide 2: Highlights
Highlights All figures in MNOK Q2 2016 Q2 2015 H1 2016 H1 2015 2015 Revenue 4 558 4 108 8 970 7 654 15 273 EBITDA 985 778 1 871 1 295 2 244 EBIT 790 605 1 486 954 1 386 Net profit 504 231 1 197 205 1 283 EPS (earning per share in NOK) 1.09 0.91 2.92 0.81 3.59 Total assets 28 039 23 246 25 794 NIBD (
Slide 3: Company overview
Company overview 2016 52.69% 3 www.auss.no Austevoll Seafood ASA
Slide 4: Operation overview
Operation overview * Associated companies PERU CHILE NORTH ATLANTIC AUSTEVOLL SEAFOOD GROUP Harvesting 7% of anchovy quota 9.1% of pelagic fishing 4 fishing vessels 400,000 - 500,000 MT of pelagic fish centre-north quota annually 21 fishing vessels 5 fishing vessels (30 vessels) Salmon Norway: 180,0
Slide 5: Pelagic
Pelagic Austral Group S.A.A Foodcorp Chile S.A Pelagia AS (associated)
Slide 6: Operation in Peru
Operation in Peru Austral Group S.A.A • Centre/ North Q2 Q2 H1 H1 '000 MT 2016E 2015 o Anchovy quota 1st season 2016 set at 1.8 million MT 2016 2015 2016 2015 * o Late startup and early termination of the anchovy season Own catch: resulted in 50% of the national quota being caught Anchoveta 34 185 5
Slide 7: Historic and predictions of EL NIÑO
Historic and predictions of EL NIÑO ENFEN project most probable scenario is neutral conditions until year end in coast pacific waters and weak niña in central pacific Diagram Source: NOAA 7 www.auss.no Austevoll Seafood ASA
Slide 8: Operation in Chile
Operation in Chile Foodcorp Chile S.A Q2 Q2 H1 H1 • Jack mackerel: '000 MT 2016 2015* 2016 2015 2016E 2015* Own catch: o Quota completed during May Mackerel and other o Challenging market conditions species 14 16 21 26 22 34 Purchase: • Anchovy/sardine: Sardine/anchovy 4 27 9 30 20 44 o Slow startup
Slide 9: North Atlantic pelagic quotas
North Atlantic pelagic quotas (2007-2016 est) 5 000 4 500 4 000 Boar Norway Pout 3 500 Sand Eel 3 000 Capelin Iceland ‘000 MT 2 500 Capelin Barent sea Blue Whiting 2 000 Horse Mackerel 1 500 Mackerel 1 000 NS-Herring NVG-Herring 500 - 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 E Source: NORGE
Slide 10: Pelagia AS
Pelagia AS Fishmeal and fish oil (FMO) Norway, UK and Ireland ('000 MT) Q2 2016 Q2 2015 H1 2016 H1 2015 2016 E 2015 Raw material for fishmeal and fish oil 150 251 361 511 542 702 Raw material for protein concentrate/oil 60 61 144 122 220 244 Total ('000 MT) 211 311 505 633 762 945 All volume based o
Slide 11: Pelagia AS
Pelagia AS Human Consumption Volume ('000 MT) Q2 2016 Q2 2015 H1 2016 H1 2015 2016 E 2015 Raw material intake 51 46 155 134 350 365 (incl. Sir Fish and NC Honningsvåg) • Raw material intake for Q2 and H1 slightly above Q2 and H1 2015 o Large part of the NVG herring quota taken in H1 2016, less quota
Slide 12: Pelagia AS (100% figures)
Pelagia AS (100% figures) (MNOK) Q2 2016 Q2 2015 H1 2016 H1 2015 2015 Revenue 1 066 1 293 2 331 2 565 6 092 EBITDA 120 159 247 291 717 EBIT 80 110 167 210 548 Sales volumes (tonnes): Frozen 40 400 45 400 120 800 110 400 313 000 FM/FPC/Oil 38 600 52 200 64 000 87 000 194 800 Associated company, AUSS
Slide 13: Br. Birkeland AS
Br. Birkeland AS Salmon Q2 2016 Q2 2015 H1 2016 H1 2015 Harvest volume 2,341 2,374 4,059 4,321 (GWT) EBIT (NOK/kg) 31.9 0.4 29.2 3.1 • 7 salmon licenses in Norway Fleet • 4 fishing vessels in Norway o Good contribution from the fishing vessels in Q2 13 www.auss.no Austevoll Seafood ASA
Slide 14: Salmon
Salmon Lerøy Seafood Group ASA
Slide 15: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA Lerøy Aurora 26 licenses Q2 2016 • EBIT before FV adj. NOK 760 million • EBIT/kg all inclusive NOK 18.5 o Salmon: NOK 20.1/kg o Trout: NOK 13.7/kg Lerøy Midt 57 licenses • Harvest volume 41 132 GWT • Contract share of 31% • NIBD NOK -7 million at end Q2 2016 Lerøy Sjøtroll 63
Slide 16: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA Salmon/trout farming Licences Smolt 2011 2012 2013 2014 2015 2016E cap. GWT GWT GWT GWT GWT GWT Lerøy Aurora AS* 26 11,5 18 100 20 000 24 200 26 800 29 200 30 000 Lerøy Midt AS 57 22,0 62 300 61 900 58 900 68 300 71 400 60 000 Lerøy Sjøtroll 63 22,6 56 200 71 600 61 700 63 20
Slide 17: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA • Entered agreements to acquire a majority stake in Havfisk ASA and Norway Seafoods Group AS • Significantly strengthening Lerøy`s position in the white fish segment. Creating values through utilizing existing distribution channels and establishing the leading fresh/refreshed
Slide 18: Financials
Financials Q2 2016
Slide 19: Catch and purchase
Catch and purchase (100% volumes) Figures in 1,000 tonnes Q2 2016 Q2 2015 H1 2016 H1 2015 2016 E 2015 Group companies: Chile own catch * 14 16 21 26 22 34 Chile purchase* 13 27 27 32 44 47 Peru own catch 34 185 53 186 224 248 Peru purchase 19 38 38 38 100 62 Total Group companies 80 267 138 282 390
Slide 20: Key financial figures
Key financial figures (NOK 1,000) Q2 2016 Q2 2015 Δ% Q2 2016 ** Q2 2015 ** Δ% Revenue 4 558 229 4 107 801 11,0 % 5 091 140 4 754 514 7,1 % EBITDA 984 919 777 727 26,6 % 1 045 042 857 180 21,9 % Depreciation/Impairment 195 325 172 611 215 540 197 166 EBIT* 789 594 605 116 30,5 % 829 502 660 014 25,7
Slide 21: Key financial figures
Key financial figures (NOK 1,000) H1 2016 H1 2015 Δ% H1 2016 ** H1 2015 ** Δ% Revenue 8 970 468 7 653 630 17.2 % 10 135 844 8 936 327 13.4 % EBITDA 1 870 663 1 294 692 44.5 % 1 994 152 1 440 098 38.5 % Depreciation/Impairment 385 078 340 869 425 268 381 393 EBIT* 1 485 585 953 823 55.8 % 1 568 884 1
Slide 22: Key financial figures
Key financial figures Income from associates ex. biomass adjustment Q2 2016 Q2 2015 H1 2016 H1 2015 2015 Norskott Havbruk AS 36 488 13 729 74 677 29 623 49 622 Pelagia AS 28 436 33 551 62 958 69 633 203 322 Others 5 187 5 932 8 657 9 666 19 549 Total income from associated companies 70 111 53 212 14
Slide 23: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA (MNOK) Q2 2016 Q2 2015 H1 2016 H1 2015 2015 • Spot prices above last year Revenue 4 262 3 352 8 078 6 630 13 485 o NOS Q2/16 NOK 63.5 vs. NOK 37.3 in Q2/15 (+70%) EBITDA 876 470 1 573 971 1 814 o Up NOK 5.4/kg q-o-q, and up NOK EBIT* ex. Impairment 760 370 1 345 774 1 380 26.
Slide 24: Austral Group S.A.A
Austral Group S.A.A (MNOK) Q2 2016 Q2 2015 H1 2016 H1 2015 2015 • Low activity in Q2 explained by late start of first fishing season for anchoveta. Revenue 55 534 477 697 1 091 (season started June 18th and ended July EBITDA -28 242 50 249 273 27th) EBIT ex.impairment -72 202 -34 171 109 • Total quo
Slide 25: Foodcorp Chile S.A
Foodcorp Chile S.A (MNOK) Q2 2016 Q2 2015 H1 2016 H1 2015 2015 • Foodcorp finished their horse mackerel Revenue 151 133 255 207 490 quota in May EBITDA 22 40 41 39 47 • Good supply and demand for giant squid EBIT ex.impairment 6 24 8 8 -18 • For the coastal fleet sea condition has affected fish avai
Slide 26: Br. Birkeland AS
Br. Birkeland AS (MNOK) Q2 2016 Q2 2015 H1 2016 H1 2015 2015 Salmon Q2 • Harvested volume (GWT): Revenue 210 141 389 253 520 o Q2/16 2,341 MT vs. 2,375 in Q2/15 • EBIT/kg: EBITDA 105 21 191 36 106 o NOK 31.9 in Q2/16 vs. NOK 0.4 in Q2/15 EBIT* 88 6 159 7 39 Pelagic Q2 • The pelagic vessels have been
Slide 27: Balance sheet
Balance sheet (NOK 1,000) 30.06.2016 30.06.2015 31.12.2015 USD/NOK: • 30.06.2016: 8.38 • 30.06.2015: 7.86 Intangible assets 8 049 524 7 539 115 8 115 351 • 31.12.2015: 8.80 Tangible fixed assets 5 490 220 5 084 182 5 531 053 Increased cash Financial non-current assets 1 771 956 1 922 755 1 861 178 •
Slide 28: Cash flow
Cash flow (NOK 1,000) Q2 2016 Q2 2015 H1 2016 H1 2015 2015 AUSS paid dividend by NOK 7.00 per share, total MNOK 1,419 in Q2 Pre tax profit 659 092 353 492 1 566 788 299 867 1 572 137 Biomass adjustment 150 187 225 156 -13 641 593 378 -246 567 Paid out dividend in total in Q2, MNOK 1 695 Paid tax -36
Slide 29: Outlook
Outlook
Slide 30: Fishmeal
Fishmeal Week 30 Fishmeal production - 2016 vs 2015 (Cumulative) Production • IFFO Fishmeal production down 44% YTD vs. same period 2015 (Peru 55% down vs. 2015). Regions 2016 2015 Change % • Peruvian fishing season finished on July 27 Chile* 153 845 213 224 -28 % landing 50% of the total quota Peru
Slide 31: Fishmeal
Fishmeal Main market – China • Stock level: 133,160 MT as of May 5th vs. 79,550 MT same period 2015 (up by 67%) o Off takes: 2,800 MT/day o South of China: weather conditions getting better for the aquaculture. • Prices in China still higher than in Peru and currently quoted at 12,800 RMB equivalent
Slide 32: Fish oil
Fish oil Week 30 Production • IFFO Fish oil production down 38% YTD vs. same Fish oil production - 2016 vs 2015 (cumulative) period 2015 (Peru 43% down vs. 2015) Regions 2016 2015 Change % Prices • USD 2,250/MT FOB Peru for feed grade Chile* 51 782 71 346 -27 % • USD 2,600 - 2,700/MT FOB Peru for om
Slide 33: Atlantic salmon supply
Atlantic salmon supply Q2 2016 NOS Q2 16 NOK 63.47 vs. Q2 15 NOK 37.25 (+70.4%)YTD June 16 (in tonnes WFE ) NOK 60.79 vs. YTD June 15 NOK 38.81 (+56.6 %) Change Change Change Change Change Change 2012 11-12 2013 12-13 2014 13-14 2015 14-15 2016 15-16 2017 16-17 Norway 1 183 100 17,7 % 1 143 600 -3,3
Slide 34: Atlantic salmon consumption
Atlantic salmon consumption YTD July 2016 700 000 14 % 20 % Market - Salmon 2014 2015 2016 Grow th Grow th % 600 000 6% Japan 36 400 29 400 33 400 4 000 14 % 10 % USA 215 100 239 300 254 700 15 400 6% 500 000 -3 % -4 % 0% EU 547 700 592 200 575 700 -16 500 -3 % 400 000 Russia 79 700 62 000 41 400 -2
Slide 35: Conclusion
Conclusion Salmon (refer to Lerøy Seafood Group’s management presentation www.leroy.no) • Very strong salmon prices in Q2 • Increased prices for trout but below salmon level • Limited growth in global salmon supply combined with strong demand, gives a strong outlook for the coming years Lerøy Seafoo
Slide 36: Thank you
Thank you H
Slide 37: Disclaimer
Disclaimer • This Presentation has been produced by Austevoll Seafood ASA (the regulations, taxes, changes in competition and pricing environments, fluctuations “Company” or “Austevoll”) solely for use at the presentation to the market held in in currency exchange rates and interest rates and other
Slide 38: Appendix
Appendix
Slide 39: Associated companies
Associated companies Pelagia AS (100% figures) AUSS`s share = 50% • Raw material intake FM/FPC/oil 211,000 (MNOK) Q2 2016 Q2 2015 H1 2016 H1 2015 2015 MT vs. 312,000 MT in same quarter 2015. Revenue 1 066 1 293 2 331 2 565 6 092 • Raw material intake HC 51,000 MT vs. EBITDA 120 159 247 291 717 46,00
Slide 40: Associated companies
Associated companies Norskott Havbruk AS (100% figures) LSG’s share = 50% • Contract share in quarter of 49%, with (MNOK) Q2 2016 Q2 2015 H1 2016 H1 2015 2015 negative impact on price realisation Revenue 433 344 854 669 1 498 • Performance impacted by early harvest of EBITDA 123 56 227 116 201 one s