Austevoll Seafood ASA · OSL:AUSS
Austevoll Seafood ASA — Q3 2014 Earnings Presentation
41 slides from Austevoll Seafood ASA's earnings presentation, November 2014
Slide 1: Q3 2014 financial presentation
Q3 2014 financial presentation Arne Møgster – CEO Britt Kathrine Drivenes – CFO
Slide 2: Highlights
Highlights Q3 2014 All figures in NOK 1,000 Q3 2014 Q3 2013 YTD Q3 2014 YTD Q3 2013 (restated) 2013 Revenue 3 350 559 3 283 016 10 537 683 8 786 230 12 409 756 EBITDA 421 487 605 046 1 868 565 1 633 398 2 226 108 Total assets 20 082 577 20 007 394 20 082 577 20 007 394 21 224 259 Equity 10 597 344 9
Slide 3: Company overview
Company overview 2014 Chile Peru North Atlantic Norway Norway/ UK 3 www.auss.no Austevoll Seafood ASA
Slide 4: AUSS value chain
4 6 3 4 AUSS value chain 2 5 2 1 3 Salmon & Trout Pelagic 1. Farming 1. Fishing 2. Processing 1 2. Processing 3. VAP 3. Fishmeal and fish oil 4. Consumer market 4. VAP (Customer) 5. Commodity market 6. Consumer market
Slide 5: Overview
Overview * Associated companies PERU CHILE NORTH ATLANTIC AUSTEVOLL SEAFOOD GROUP Harvesting 7% of anchovy quota 9.1% of pelagic fishing 2 fishing vessels* 400,000-500,000 MT of pelagic fish centre-north quota annually 21 fishing vessels 5 fishing vessels (28 vessels) Salmon Norway 180,000 – 190,000
Slide 6: Pelagic
Pelagic Austral Group S.A.A FoodCorp S.A. Pelagia AS (associated)
Slide 7: Operation in Peru
Operation in Peru Austral Group S.A.A Q3 2014 Q3 2013 YTD 2014 YTD 2013 2014E 2013 Own catch - anchovies 32 13 165 171 165 314 Own catch - mackerel and jack mackerel - - 10 9 10 9 Purchase - anchovies 8 16 56 95 56 143 Purchase - Human Consumption - 1 4 5 4 8 Total ('000 MT) 40 30 235 280 235 474 Ce
Slide 8: Landing and biomass in winter time (Jun-Sep)
Landing and biomass in winter time (Jun-Sep) North/Centre of Peru (MT) • IMARPE has recently started a second cruise to study the biomass. • Results expected by mid December. Source: SNP 8 www.auss.no Austevoll Seafood ASA
Slide 9: Operation in Chile
Operation in Chile FoodCorp S.A. Chile (*) Q3 2014 Q3 2013 YTD 2014 YTD 2013 2014 E 2013 Own catch - Mackerel and other species 2 1 64 41 71 58 Purchase - Sardine/Anchovy 7 6 88 36 96 36 Purchase - Giant Squid 7 1 17 4 15 4 Total ('000) 16 8 170 81 181 98 Mackerel Own catch - - 48 36 49 40 % of quot
Slide 10: North Atlantic pelagic quotas
North Atlantic pelagic quotas (2007-2014 est) 5 000 4 500 219 115 127 84 139 216 4 000 432 143 161 82 250 340 374 82 393 3 500 1 700 40 606 33 391 292 1 250 540 381 1 279 3 000 20 146 41 643 '000 tons (TAC) 390 700 360 435 2 500 209 171 423 160 - 164 65 - 200 380 320 510 2 000 275 470 189 405 200 1
Slide 11: Operation North Atlantic
Pelagia locations Operation North Atlantic Pelagia AS Headquarters Human consumption factories Fishmeal and fish oil factories 11 www.auss.no Austevoll Seafood ASA
Slide 12: Pelagia AS
Pelagia AS Fishmeal and fish oil Norway, UK and Ireland Q3 2014 Q3 2013(P) YTD 2014 YTD 2013(P) 2014 E 2013(P) Raw material for fishmeal and fish oil 87 73 501 360 600 483 Raw material for protein concentrate/oil 44 37 142 126 190 201 Total ('000 MT) 131 110 643 487 790 684 All volume based on 100%
Slide 13: Pelagia AS
Pelagia AS Human consumption Volume (‘000MT) Q3 2014 Q3 2013(P) YTD Q3 2014 YTD Q3 2013(P) 2014 E 2013(P) Raw material intake 96 54 247 296 450 492 • Intake volume for this quarter is higher than last year due to the significant increase of the mackerel quota • Strong market for mackerel, especially
Slide 14: Pelagia AS (100% figures)
Pelagia AS (100% figures) (MNOK) Q3 2014* Q3 2013 P Revenue 1 331,0 1 301,6 • Raw material intake 227,000 MT vs 164,000 MT EBITDA 176,1 116,2 in same quarter 2013. EBIT 134,0 75,4 • Administration office established in Bergen from NIBD 1 492 2 179 1st September 2014. Sales volumes (tonnes): Frozen 7
Slide 15: Br. Birkeland AS (100% figures)
Br. Birkeland AS (100% figures) (MNOK) Q3 2014 Q3 2013 YTD Q3 2014 YTD Q3 2013 • 2 pelagic purse seiners with maximum quotas in Revenue 71,0 64,0 276,0 267,0 Norway EBITDA 18,0 26,0 70,0 90,0 • 7 salmon licenses in Norway (Hordaland) EBIT* 8,0 17,0 42,0 63,0 • Low season for the pelagic fishing vess
Slide 16: Salmon
Salmon Lerøy Seafood Group ASA
Slide 17: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA Lerøy Aurora 26 licenses (NOKm) Q3 2014 Q3 2013 ▲% Revenue 2 962 2 690 10 % Other gains and losses** 75 0 EBITDA 398 451 -12 % Depreciation & amortisation 95 81 17 % EBIT* 303 370 -18 % Income from associates* 21 23 -8 % Lerøy Midt Net finance -29 -29 0% 55 licenses Pre-tax*
Slide 18: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA Salmon/trout farming Licences Smolt 2011 2012 2013 2014E 2015E cap. GWT GWT GWT GWT GWT Lerøy Aurora AS* 26 7,5 18 100 20 000 24 200 27 000 31 000 Lerøy Midt AS 55 22,0 62 300 61 900 58 900 69 000 70 000 Lerøy Sjøtroll 60 22,6 56 200 71 600 61 700 63 000 65 000 Total Norway 1
Slide 19: Financials
Financials Q3 2014
Slide 20: Catch and purchase
Catch and purchase (100% volumes) Figures in 1,000 tonnes Q3 2014 Q3 2013* 2014 E 2013* '000 MT 700 Group companies: Chile own catch 2 1 71 58 600 Chile purchase 14 7 111 40 500 Peru own catch 32 13 175 323 400 407 Peru purchase 8 17 60 151 305 300 298 472 Total Group companies 56 38 417 572 336 200
Slide 21: Key financial figures
Key financial figures (NOK 1,000) Q3 2014 Q3 2013 Δ% Q3 2014** Q3 2013** Δ% 1) Revenue 3 350 559 3 283 016 2,1 % 4 016 078 3 933 836 2,1 % EBITDA 421 487 605 046 509 557 663 153 Depreciation/Impairment 144 785 132 526 165 846 152 942 EBIT* 276 702 472 520 -41,4 % 343 711 510 211 -32,6 % Income from
Slide 22: Key financial figures
Key financial figures YTD Q3 2013 (NOK 1,000) YTD Q3 2014 (restated) Δ% YTD Q3 2014** YTD Q3 2013** Δ% Revenue 10 537 683 8 786 230 19,9 % 12 447 174 10 687 892 16,5 % EBITDA 1 868 565 1 633 398 2 043 879 1 800 173 Depreciation/Impairment 417 633 384 478 481 527 446 758 EBIT* 1 450 932 1 248 920 16,
Slide 23: Balance sheet
Balance sheet (NOK 1,000) YTD Q3 2014 YTD Q3 2013 End 2013 * From 1st January 2014 onwards Pelagia Intangible assets 6 280 524 5 969 923 6 035 665 AS (50%) is classified as an associated Tangible fixed assets 4 255 685 4 084 821 4 095 855 company thereby reported as financial Financial non-current a
Slide 24: Cash flow
Cash flow (NOK 1,000) Q3 2014 Q3 2013 YTD Q3 2014 YTD Q3 2013 End 2013 Pre tax profit 34 522 132 638 511 266 1 129 574 2 380 223 Biomass adjustment 221 884 319 125 906 226 19 081 -764 229 Paid tax -17 746 -33 431 -386 813 -149 773 -181 463 Working capital -99 980 147 572 235 277 298 163 -72 906 Cash
Slide 25: Atlantic salmon and trout
Atlantic salmon and trout (MNOK) Q3 2014 Q3 2013 • Challenging quarter Revenue 3 036,5 2 690,2 EBITDA 397,8 450,8 • Pressure on spot prices from seasonal supply: EBIT* 302,8 369,7 o Average NOS price down NOK 5.00 to NOK 34.5 compared to Q2/14 Harvested volume (GWT) 41 499 36 643 o 25% of quarterly
Slide 26: Fishmeal and oil
Fishmeal and oil (South America) (MNOK) Q3 2014 Q3 2013 • Seasonal low production quarter Revenue 268,6 543,6 • Low sales volume in Q3 2014 vs Q3 2013. EBITDA 53,0 177,0 EBIT 22,2 151,3 • Carry over stock into Q4 in Peru (21,000 MT vs 10,500 MT) Sales volumes (tonnes) : • Expectation of extraordinar
Slide 27: Human consumption
Human consumption (South America) (MNOK) Q3 2014 Q3 2013 • Peru - no raw material intake in Q3 and Revenue 77,2 62,1 subsequently no production EBITDA -33,4 -24,3 • Chile - production of squid in the quarter EBIT -48,1 -45,6 • Expectation of low raw material volumes in Q4 Sales volumes: Frozen (tonn
Slide 28: Market outlook
Market outlook
Slide 29: Fishmeal
Fishmeal Weekly Fish meal production Production • Fishmeal production by IFFO up 2.2% YTD Week42 Week41 Same Week 2013 Cumulative Cumulative Regions vs same period 2013. Peru down by 13%. 13.10.14 19.10.14 6.10.14 12.10.14 14.10.13 20.10.13 2014 2013 • A balance of 50,000 MT unsold for Q4 Chile* 14
Slide 30: Fishmeal
Fishmeal Main market – China • Stocks at historical low level: 82,550 MT as of Nov 2nd vs. 132,130 MT same period 2013 (down 38%). o Current stocks are to meet the consumption of Nov-Dec (swine season). o Off takes: 2,300 MT per day. • Chinese Q1 – Q3 2014 imports of fishmeal total 906,830 MT, 20% S
Slide 31: Fish oil
Fish oil Weekly Fish oil production Production • Fish oil production by IFFO up 12% YTD vs Week42 Week41 Same Week 2013 Cumulative Cumulative Regions same period 2013. 13.10.14 19.10.14 6.10.14 12.10.14 14.10.13 20.10.13 2014 2013 o Cumulative Chilean production up by Chile* 2 278 1 725 1 614 121 92
Slide 32: FoodCorp / MarFood S.A.
FoodCorp / MarFood S.A. Frozen fish sales and prices - (Year 2013-2014: 100% MarFood) Frozen fish ' 000 35 000 2000 31 021 • MarFood is focused in adding value to fish 1800 30 000 28 641 29 204 and freezing is the main contributor. 1600 24 780 1376 1363 25 000 • Amongst the leaders in the industry (
Slide 33: Atlantic salmon supply
Atlantic salmon supply Q3 2014 AGD Avrg Q3 14 NOK 34,15 vs avrg Q3 13 NOK 38,12 (-9.4%) Avrg YTD Q3 2014 NOK 40,30 vs avrg YTD Q3 2013 NOK 38,34 (+5,1%) (in tonnes WFE ) 543.700 t (37 %) 218.600 t (8 %) Figures as per 7.11.14 - Source: Kontali 33 www.auss.no Austevoll Seafood ASA
Slide 34: Atlantic salmon consumption
Atlantic salmon consumption NOK/KG (3-6): YTD Q3 2014 40,71 +4,4% (38,98) (NSI -0,75 vs NOS) Figures as per 7.11.14 - Source: Kontali 34 www.auss.no Austevoll Seafood ASA
Slide 35: Conclusion
Conclusion Salmon (refer to Lerøy Seafood Group’s management presentation www.leroy.no) • Challenging quarter. • Limited growth in global salmon supply combined with strong demand, gives a strong outlook for the coming years. • Russian trade situation a challenge especially in short to medium term.
Slide 36: BY
BY Austevoll Seafood ASA
Slide 37: 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 • No representation or warranty (express or implied) is made as to, and no reliance announcement of third quarter resu
Slide 38: Appendix
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Slide 39: Associated companies
Associated companies Pelagia AS (100% figures) AUSS`s share = 50% • Raw material intake 227,000 MT vs 164,000 MT in same quarter 2013. (MNOK) Q3 2014 Q3 2013 * YTD Q3 2014 YTD Q3 2013 * • Administration office established in Bergen from Revenue 1 229,1 1 301,6 3 592,9 3 803,3 1st September 2014. EBI
Slide 40: Associated companies
Associated companies Br. Birkeland AS (100% figures) • 2 pelagic purse seiners with maximum quotas in AUSS`s share = 49,99% Norway • 7 salmon licenses in Norway (Hordaland) (MNOK) Q3 2014 Q3 2013 YTD Q3 2014 YTD Q3 2013 Revenue 71,0 64,0 276,0 267,0 • Low season for the pelagic fishing vessels EBITD
Slide 41: Associated companies
Associated companies Norskott Havbruk AS (100% figures) • Strong operations LSG`s share = 50% • Best year ever in sea-lice management (wrasse) (MNOK) Q3 2014 Q3 2013 YTD Q3 2014 YTD Q3 2013 • Harvest guidance lifted to 27,000 GWT in 2014 Revenue 373 373 1 096 876 • Harvest guidance 2015 is 31,000 GW