Austevoll Seafood ASA · OSL:AUSS
Austevoll Seafood ASA — Q1 2016 Earnings Presentation
37 slides from Austevoll Seafood ASA's earnings presentation, May 2016
Slide 1: Q1 2016 Financial presentation
Q1 2016 Financial presentation Arne Møgster – CEO Britt Kathrine Drivenes – CFO
Slide 2: Highlights
Highlights All figures in MNOK Q1 2016 Q1 2015 Revenue 4 412 3 546 EBITDA 886 517 EBIT 696 349 Net profit 693 -26 EPS (earning per share in NOK) 1,83 -0,10 Total assets 26 951 23 241 NIBD (net interest bearing debt) 3 253 3 967 Group EBITDA incl. 50% of Pelagia AS 949 583 Salmon 697 501 Pelagic
Slide 3: Company overview
Company overview 2016 57.52% 3 www.auss.no Austevoll Seafood ASA
Slide 4: Pelagic
Pelagic Austral Group S.A.A Foodcorp Chile S.A Pelagia AS (associated)
Slide 5: Operation in Peru
Operation in Peru Austral Group S.A.A Q1 Q1 • Centre/ North '000 MT 2016 2015 2016E* 2015 Anchovy quota 2nd season 2015 100% completed Own catch: Higher-than-expected supply from third parties (3.6% share) Anchoveta 18 1 255 248 Mackerel /Jack mackerel Total fishmeal yield 23.3%, and total fis
Slide 6: Anchovy biomass in Peru
Anchovy biomass in Peru MODELS OR PREDICTIONS OF EL NIÑO El Niño conditions delaying IMARPE evaluation of the Biomass for first season 2016: Centre/ North • Surface waters are rapidly cooling from 20nm preempting the arrival of cold kelvin waves to the Peruvian coast • Under the surface there is sti
Slide 7: Operation in Chile
Operation in Chile Foodcorp Chile S.A Q1 Q1 • Jack mackerel: '000 MT 2016 2015* 2016E 2015* o Catches only during January, restarted in April. Own catch: Mackerel and other species 7 10 22 34 o Purchase from third party to produce frozen fish and Purchase: fishmeal Sardine/Anchovy 5 3 22 44 o Challe
Slide 8: 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 • TAC for maj
Slide 9: Pelagia AS
Pelagia AS Fishmeal and fish oil (FMO) Norway, UK and Ireland ('000 MT) Q1 2016 Q1 2015 2016 E 2015 Raw material for fishmeal and fish oil 210 260 542 702 Raw material for protein concentrate/oil 84 61 220 244 Total ('000 MT) 294 321 762 945 All volume based on 100% • Lower sales vs. Q1 2015, as bot
Slide 10: Pelagia AS
Pelagia AS Human consumption Volum ('000 MT) Q1 2016 Q1 2015 2016 E 2015 Raw material intake 104 88 343 365 (incl Sir Fish and NC Honningsvåg) • Higher catch of NVG in January affecting Q1 activity in Pelagia, but will give equally lower activity in Q4 • Increased intake of Icelandic capelin • Diffi
Slide 11: Pelagia AS (100% figures)
Pelagia AS (100% figures) (MNOK) Q1 2016 Q1 2015 2015 Revenue 1 265 1 272 6 092 EBITDA 127 132 717 EBIT 87 100 548 Sales volumes (tonnes): Frozen 80 400 65 000 304 000 FM/FPC/Oil 25 400 34 800 194 800 Associated company, AUSS share = 50% 11 www.auss.no Austevoll Seafood ASA
Slide 12: Br. Birkeland AS
Br. Birkeland AS Salmon • 7 salmon licenses in Norway • Harvested volume (GWT) 1,717 MT Q1/16 vs. 1,947 in Q1/15 • EBIT/kg NOK 29.3 in Q1/16 vs. NOK 6.4 in Q1/15 Fleet • 3 fishing vessels in Norway o Good contribution from the pelagic fishing vessels in Q1 NVG herring, capelin and blue whiting 12
Slide 13: Salmon
Salmon Lerøy Seafood Group ASA
Slide 14: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA Lerøy Aurora 26 licenses (NOKm) Q1 2016 Q1 2015 ▲% Revenue 3 815 3 268 17 % Other gains and losses 0 10 EBITDA 697 501 39 % Depreciation & amortisation 113 97 EBIT* 584 404 45 % Income from associates* 41 21 Net finance -34 -35 Lerøy Midt 57 licenses Pre-tax* 592 390 52 % EPS
Slide 15: 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 34 000 Lerøy Midt AS 57 22,0 62 300 61 900 58 900 68 300 71 400 65 000 Lerøy Sjøtroll 63 22,6 56 200 71 600 61 700 63 20
Slide 16: Financials
Financials Q1 2016
Slide 17: Catch and purchase
Catch and purchase (100% volumes) Figures in 1,000 tonnes Q1 2016 Q1 2015 2016 E 2015 Group companies: Chile own catch * 7 10 22 34 Chile purchase* 14 5 44 47 Peru own catch 19 1 255 248 Peru purchase 18 0 108 62 Total Group companies 58 17 429 392 Joint ventures: Europe purchase (HC) 104 88 343 365
Slide 18: Key financial figures
Key financial figures (NOK 1,000) Q1 2016 Q1 2015 Δ% Q1 2016 ** Q1 2015 ** Δ% Revenue 4 412 239 3 545 829 24,4 % 5 044 704 4 181 813 20,6 % EBITDA 885 744 516 965 71,3 % 949 110 582 917 62,8 % Depreciation/Impairment 189 753 168 258 209 728 184 227 EBIT* 695 991 348 707 99,6 % 739 382 398 690 85,5 %
Slide 19: Key financial figures
Key financial figures Income from associates ex. biomass adjustment: (MNOK) Q1 2016 Q1 2015 Pelagia AS 34.5 36.1 (AUSS) Norskott Havbruk 38.2 15.9 (LSG) Others 3.5 3.7 Total 76.2 55.7 19 www.auss.no Austevoll Seafood ASA
Slide 20: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA (MNOK) Q1 2016 Q1 2015 2015 • Spot prices above last year Revenue 3 815,7 3 278,5 13 484,9 o NOS Q1/16 NOK 58.10 vs. NOK 40.40 in Q1/15 (+44%) EBITDA 697,4 500,8 1 813,9 o Up NOK 13.10/kg vs. Q4/15, and up NOK EBIT* ex. Impairment 584,5 403,9 1 380,0 17.70/kg vs. Q1/15 EBIT*
Slide 21: Austral Group S.A.A
Austral Group S.A.A (MNOK) Q1 2016 Q1 2015 2015 Revenue 421,8 163,1 1 091,2 • Finished the quota for second season 2015 by EBITDA 77,8 7,3 272,6 January 20th 2016 EBIT ex.impairment 37,6 -31,6 109,0 EBIT 39,6 -29,5 117,3 • Production of fishmeal from second season 2015 Rawmaterial intake (tonnes): 3
Slide 22: Foodcorp Chile S.A
Foodcorp Chile S.A (MNOK) Q1 2016 Q1 2015 2015 • Horse mackerel catches only during January, Revenue 103,6 74,0 490,3 restarted in April EBITDA 19,5 -0,8 46,7 EBIT ex.impairment 2,4 -16,4 -17,6 EBIT 2,4 -16,4 -133,8 • The coastal fleet started their anchovy season in March, however sea condition has
Slide 23: Br. Birkeland AS
Br. Birkeland AS (MNOK) Q1 2016 Q1 2015 2015 Salmon Q1 • Harvested volume (GWT): Revenue 178,5 112,4 520,4 o Q1/16 1,717 MT vs. 1,947 in Q1/15 EBITDA 86,8 15,5 106,4 • EBIT/kg: EBIT* 70,6 1,2 39,3 o NOK 29.30 in Q1/16 vs. NOK 6.40 in Q1/15 * before biomass adj. Pelagic Q1 • The pelagic vessels have
Slide 24: Balance sheet
Balance sheet USD/NOK: (NOK 1,000) 31.03.2016 31.03.2015 31.12.2015 • 31.03.2016: 8.27 • 31.03.2015: 8.09 Intangible assets 8 035 619 7 634 655 8 115 351 • 31.12.2015: 8.80 Tangible fixed assets 5 399 196 5 119 747 5 531 053 Financial non-current assets 1 889 489 1 808 869 1 861 178 Increased cash T
Slide 25: Cash flow
Cash flow (NOK 1,000) Q1 2016 Q1 2015 2015 Pre tax profit 907 696 -53 625 1 572 137 Acquisitions and divestments: Biomass adjustment -163 828 368 222 -246 567 Paid tax -180 515 -143 376 -427 611 AUSS sold 2,750,000 shares in Lerøy Depreciaton and impairments 189 752 168 258 857 640 Seafood Group A
Slide 26: Outlook
Outlook
Slide 27: Fishmeal
Fishmeal Week 16 Production • IFFO Fishmeal production down 56% YTD vs. same Fishmeal production - 2016 vs 2015 (Cumulative) period 2015 (Peru 81% down vs. 2015). Regions 2016 2015 Change % • Opening of Peruvian anchovy Center/North 1st Peru 54 185 291 941 -81 % season 2016 delayed. Chile* 62 059 12
Slide 28: 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 29: Fish oil
Fish oil Week 16 Production • IFFO Fish oil production down 45% YTD vs. same Fish oil production - 2016 vs 2015 (cumulative) period 2015 (Peru 81% down vs. 2015) Regions 2016 2015 Change % Prices • USD 2,400/MT FOB Peru for feed grade. Peru 7 007 35 890 -80 % • USD 2,700 – 3,000/MT FOB Peru for omeg
Slide 30: Atlantic salmon supply
Atlantic salmon supply Q1 2016 NOS Q1/16 NOK 58.10 vs. NOK 40.40 in Q1/15 (+44%) (in tonnes WFE ) Up NOK 13.10/kg q-o-q, and up NOK 17.70/kg y-o-y Figures as per 09.05.2016 - Source: Kontali 30 www.auss.no Austevoll Seafood ASA
Slide 31: Atlantic salmon consumption
Atlantic salmon consumption Q1 2016 Salmon Market 2014 2015 2016 Growth Growth % EU 215 400 246 300 245 900 -400 0% Other Markets 137 700 156 000 158 500 2 500 2% USA 89 700 99 900 112 500 12 600 13 % Russia 32 300 20 400 22 800 2 400 12 % Japan 13 700 12 400 16 000 3 600 29 % Total Consumption 488
Slide 32: Conclusion
Conclusion Salmon (refer to Lerøy Seafood Group’s management presentation www.leroy.no) • Good salmon prices in Q1 • Increased prices for trout but below salmon level • Cost increased from Q4 2015 • Salmon cost unchanged q-o-q • Trout cost increase q-o-q • Limited growth in global salmon supply comb
Slide 33: Thank you
Thank you
Slide 34: 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 35: Appendix
Appendix
Slide 36: Associated companies
Associated companies Pelagia AS (100% figures) AUSS`s share = 50% • Raw material intake FM/FPC/oil 294,000 MT vs. (MNOK) Q1 2016 Q1 2015 2015 321,000 MT in same quarter 2015. Revenue 1 264,9 1 272,0 6 092,0 • Raw material intake HC 104,000 MT vs. 88,000 EBITDA 126,7 131,9 717,4 MT in same quarter 20
Slide 37: Associated companies
Associated companies Norskott Havbruk AS (100% figures) LSG’s share = 50% (MNOK) Q1 2016 Q1 2015 2015 • Contract share in quarter of 51% with negative impact on price realization Revenue 422 325 1 498 EBITDA 103 60 201 • Cost decrease y-o-y EBIT* 81 43 122 Volumes (gwt) 6 981 5 589 27 032 • Volume g