Mowi Asa · OSL:MOWI

Mowi Asa — Marine Harvest — Havbrukskonferansen 2015

13 slides from Mowi Asa's conference presentation, Nov 24, 2015

  1. Slide 1: Is there any hope for Chile in the next two years?

    Marine Harvest “Is there any hope for Chile in the next two years”? Havbrukskonferansen 24 November 2015

  2. Slide 2: Perfect storm in Chile

    Perfect storm in Chile  Rapid growth  Biological issues  Antibiotics & reputation  Lack of smart regulations  Slow consolidation  Financing  Currency 2

  3. Slide 3: Rapid growth of Chilean harvest volumes

    Rapid growth of Chilean harvest volumes… 600 500 Thousand tonnes GWE 400 300 200 100 0 2008 2009 2010 2011 2012 2013 2014 2015e 2016e Atlantic Salmon Source: Kontali 3

  4. Slide 4: Facilitated by unsustainable levels of antibiotics

    …facilitated by unsustainable levels of antibiotics 600 500 400 Tonnes 300 200 100 0 2008 2009 2010 2011 2012 2013 2014 Antibiotics use for industry (salmonids), tonnes Source: Sernapesca 4

  5. Slide 5: MH Chile not immune to biological challenges

    MH Chile not immune to biological challenges 800 700 600 Grams/tonne 500 400 300 200 100 0 2008 2009 2010 2011 2012 2013 2014 Antibiotics use (grams/tonne), MH Chile Antibiotics use (grams/tonne), industry (salmonids) Source: Marine Harvest and Sernapesca 5

  6. Slide 6: Profitability in Chile impacted by both low prices and higher costs

    Profitability in Chile impacted by both low prices and higher costs (in NOK) 15 10 EBIT / kg GWE (NOK) 5 0 -5 - 10 - 15 2008 2009 2010 2011 2012 2013 2014 2015 YTD MH Chile EBIT/kg (NOK) MH Chile EBIT/kg average for period MH Norway EBIT/kg average for period Source: Marine Harvest 6

  7. Slide 7: Today's regulations – no real impact

    Today’s regulations – no real impact  Approximately 1,300 licenses issued vs ~ 600 licenses being used across production cycles. No limit on biomass  Regulations on mortality has led to farmers moving to poorer sites for the next generation  There are many other legal limits to what farmers can d

  8. Slide 8: After ISA no real change in industry structure

    After ISA no real change in industry structure 80 60 40 1997 23 2000 2003 20 13 2006 2009 4 4 0 2012 2 2 2013 2014e Source: Kontali 8 Note: Numbers of players producing 80% of the farmed salmon and trout

  9. Slide 9: Restricted financing – magic cash?

    Restricted financing – magic cash? 9

  10. Slide 10: Significant USD appreciation last 5 years

    Significant USD appreciation last 5 years USDNOK USDBRL USDJPY USDRUB USDCLP 48% 127% 51% 112% 53% 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% -20% 2011 2012 2013 2014 2015 USDNOK USDBRL USDJPY USDRUB USDCLP Source: Bloomberg 10

  11. Slide 11: Chile – any hope the next two years?

    Chile – any hope the next two years? Positives  Tight global salmon supply  Flat supply from North America  Industry try to come up with suggestions to regulations Negatives  Authorities resist to make real changes in regulations  Industry acts to slow, and complicates solutions Opportunities 

  12. Slide 12: What does it take to make salmon farming in Chile sustainable?

    What does it take to make salmon farming in Chile sustainable? 1. Split licences from locations 2. Asses total carrying capacity in each region (all species) – current level way to high 3. Divide carrying capacity on number of licences per region and let companies determine their best locations for

  13. Slide 13: Thank you for the attention

    Thank you for the attention 13

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