Leroy Seafood Group Asa · OSL:LSG
Leroy Seafood Group Asa — Lerøy Seafood Group — Q2 2008 Earnings Presentation
36 slides from Leroy Seafood Group Asa's earnings presentation, Aug 12, 2008
Slide 1: Lerøy Seafood Group Quarterly report Second quarter 2008
Lerøy Seafood Group Quarterly report Second quarter 2008 August 12th 2008 Ole-Eirik Lerøy President & CEO Ivan Vindheim CFO
Slide 2: Agenda
Agenda 1 1. Considerations 2. 2 Key financial figures Q2 2008 3. 3 Lerøy at a glance 4. 4 Market glance
Slide 3: Internal considerations Q2 2008
Internal considerations Q2 2008 All figures in NOK mill Q2 - 08 Q2 - 07 Change YTD Q2 08 YTD Q2 07 Change Turnover 1 515 1 592 -5 % 2 832 3 083 -8 % EBIT bef adj biom 52 91 -43 % 120 216 -44 % Operating profit 24 -77 -132 % -81 11 -834 % Affiliated comp. 4 14 -73 % 7 31 -76 % PTP bef adj biom 19 90
Slide 4: Internal considerations Q2 2008
Internal considerations Q2 2008 • Financially Solid • Well positioned for future organic and strategic growth • Production • Biological issues in Lerøy Austevoll • Postponed harvesting in Lerøy Aurora • In general, cost pressure • Internal reorganisation, Lerøy Vest • Sales and distribution • Positi
Slide 5: External considerations Q2 2008
External considerations Q2 2008 • Demand and supply • Stable prices in Q2 08 versus Q1 08 • Taken into account sales mix • Prices in Q2 08 1.7% lower than Q2 07 • Prices YTD 6.4% lower than comparable figures in 2007 • Supply growth from Norway Jan-July 08 YTD 3.5% (harvested) • Well balanced market
Slide 6: Agenda
Agenda 1. 1 Considerations 2. 2 Key financial figures Q2 2008 3. 3 Lerøy at a glance 4. 4 Market glance
Slide 7: Income Statement Q2 2008
Income Statement Q2 2008 All figures in NOK 000’
Slide 8: Balance Sheet Q2 2008
Balance Sheet Q2 2008 All figures in NOK 000’
Slide 9: Balance Sheet Q2 2008
Balance Sheet Q2 2008 All figures in NOK 000’
Slide 10: Cash Flow Statement Q2 2008
Cash Flow Statement Q2 2008 All figures in NOK 000’
Slide 11: Key figures - Lerøy Seafood Group Q2 2008
Key figures - Lerøy Seafood Group Q2 2008
Slide 12: Agenda
Agenda 1.1 Considerations 2.2 Key financial figures Q2 2008 3.3 Lerøy at a glance 4.4 Market glance
Slide 13: Lerøy Seafood Group - Global organization
Lerøy Seafood Group - Global organization Norway Farming Sweden Dist. & Sales Dist. & Sales Scotland/Shetland Farming Dist. & Sales Japan Spain, Portugal, Dist. & Sales Turkey France Dist. & Sales Dist. & Sales China Dist. & Sales North America Dist. & Sales Chile
Slide 14: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA Sales & Distribution Production Affiliated Hallvard Lerøy AS Lerøy Midnor AS Norskott Havbruk AS* 100% 100% 50% Lerøy Sverige AB Lerøy Austevoll AS Alfarm Alarko Lerøy 100% 100% 50% Nordvik SA Lerøy Aurora AS 90% 100% Portnor Lda Lerøy Fossen AS 60% 100% Lerøy Hydrotech AS Le
Slide 15: Lerøy Seafood Group
Lerøy Seafood Group • • Global distribution network • Global distribution from Head Office in Bergen • Local distribution and processing in Norway, Sweden, France, Portugal and Turkey • Local representative offices in some key markets (France, Japan, China and USA) • 12.5% share of Norwegian Seafood
Slide 16: Lerøy Seafood Group
Lerøy Seafood Group • Market strategy: • Quality • Branding • Diversity in product range • Diversity in customer base • Market-oriented solutions • Geographical spread • Continuity in deliveries • Cost efficiency
Slide 17: Lerøy Seafood Group - Sales per market Q2 08
Lerøy Seafood Group - Sales per market Q2 08 Rest of Europe Others USA and Canada 7,3 % 1,8 % 4,2 % Norway 16,0 % EU 60,5 % Asia Pacific 10,2 %
Slide 18: Lerøy Seafood Group - Sales per product Q2 08
Lerøy Seafood Group - Sales per product Q2 08 Other/other species Salmontrout Shellfish 7,5 % 5,0 % 5,7 % Pelagic fish 1,4 % Whole salmon White fish 45,2 % 10,1 % Processed salmon 25,0 %
Slide 19: Farming Norway
Farming Norway • Lerøy Aurora AS • Sigerfjord Aqua AS • Lerøy Midnor AS • Lerøy Hydrotech AS • Lerøy Fossen AS • Lerøy Austevoll AS
Slide 20: Lerøy Seafood Group – Salmon/trout farming
Lerøy Seafood Group – Salmon/trout farming Company Ownership Licences Mill. smolt 2007 2008E 2009E share No individuals GWT GWT GWT Lerøy Midnor AS 100 % 31 9,5 29 200 30 000 35 000 Lerøy Aurora AS 100 % 16 5,0 17 100 20 000 20 500 Lerøy Fossen AS 100 % 7 4,2 9 100 7 500 8 500 Lerøy Hydrotech AS 100
Slide 21: Lerøy Seafood Group – Salmon/trout farming
Lerøy Seafood Group – Salmon/trout farming Company Ownership Volume Volume Share% Rest Share% share 2008E YTD Q2 2008 Lerøy Midnor AS 100 % 30,0 13,5 45 % 16,5 55 % Lerøy Aurora AS 100 % 20,0 8,4 42 % 11,6 58 % Lerøy Fossen AS 100 % 7,5 2,1 28 % 5,4 72 % Lerøy Hydrotech AS 100 % 23,0 8,3 36 % 14,7 6
Slide 22: Key Figures Production Q2 2008
Key Figures Production Q2 2008 1) Postponed harvesting 2) Biological issues
Slide 23: Key Figures Production YTD Q2 2008
Key Figures Production YTD Q2 2008
Slide 24: Key Figures Sales & Distribution Q2 2008
Key Figures Sales & Distribution Q2 2008
Slide 25: Key Figures Sales & Distribution YTD Q2 2008
Key Figures Sales & Distribution YTD Q2 2008
Slide 26: Norskott Havbruk
Norskott Havbruk LSG’s share = 50% NOKm Q2 - 2008 Q2 - 2007 YTD 2008 YTD 2007 2007 Revenues 167 218 362 465 841 EBITDA 26 54 59 127 176 EBIT bef adj biom 17 45 39 110 140 EBIT 15 33 30 84 100 Pre tax 8 30 17 76 81 Volumes (gwtt) 4,9 5,7 11,2 12,5 23,8 Balance sheet 30.06.2008 30.06.2007 31.12.2007 L
Slide 27: Agenda
Agenda 1.1 Considerations 2.2 Key financial figures Q2 2008 3.3 Lerøy at a glance 4.4 Market glance
Slide 28: Oven-ready Salmon
Oven-ready Salmon
Slide 29: Fresh Atlantic Salmon Norway (4-5 kg) – price development
Fresh Atlantic Salmon Norway (4-5 kg) – price development week 01-1997 – week 32-2008 (FHL/NSL/NOS) Figures as per 11.08.08 Source: FHL/NSL/NOS
Slide 30: Oslo Salmon export from Norway as of week 32-2008
Avrg. Q2 2008 NOK 25.02 (+0.8%) Avrg. Q2 2007 NOK 25.00 Oslo Salmon export from Norway as of week 32-2008 Avrg. Q1 2008 NOK 24.94 Avrg. 2007 NOK 24.97 (-22.1%) Fresh Atlantic salmon, cross-section, FCA. Avrg. 2006 NOK 32.08 NOK / kg Oslo Figures as per 11.08.08 Source: FHL/NSL/NOS
Slide 31: Market development for Atlantic Salmon from Norway Jan-July 2007 vs 2008
Market development for Atlantic Salmon from Norway Jan-July 2007 vs Jan-July 2008 Volume 2007 Volume 2008 Change Value 2007 Value 2008 Change EU 275 914 292 132 5,9 % 7 100 804 7 171 224 1,0 % Others 51 387 53 396 3,9 % 1 263 238 1 230 041 -2,6 % Japan 17 190 14 193 -17,4 % 486 545 400 944 -17,6 % R
Slide 32: Market development for Atlantic Salmon from Norway: Others
Market development for Atlantic Salmon from Norway Jan-July 2007 vs Jan-July 2008 Others: "Others" Volume 2007 Volume 2008 Change Value 2007 Value 2008 Change Ukraine 6 590 11 591 75,9 % 104 860 160 736 53,3 % Hongkong 6 907 7 759 12,3 % 162 629 203 231 25,0 % China 5 303 4 904 -7,5 % 119 518 116 92
Slide 33: Atlantic salmon – Supply
Atlantic salmon – Supply in tons WFE Figures as per 11.08.08 Source: Kontali / Lerøy
Slide 34: Drivers Salmon as per 31.07.2008
Drivers Salmon as per 31.07.2008 • Norway total export volume of Atlantic Salmon (399,670 MT WFE) + 4.7 % • Norway total export value of Atlantic Salmon (NOK9,789m) - 0.2 % • Norway – EU (volume Atlantic Salmon) (292,132 MT WFE) + 5.9 % • Norway – EU (value Atlantic Salmon) (NOK7,171m) + 1.0 % • Nor
Slide 35: Going forward!
Going forward! •Strong demand •Reduced supply growth •Continued consolidations Room for operational improvements
Slide 36: Thank you !
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