Leroy Seafood Group Asa · OSL:LSG
Leroy Seafood Group Asa — Lerøy Seafood Group — H1 2002 Earnings Presentation
34 slides from Leroy Seafood Group Asa's earnings presentation, 2002
Slide 1: Lerøy Seafood Group 1st half 2002
Lerøy Seafood Group 1st half 2002
Slide 2: Contents
Contents Sections Page I Considerations 3 II Key financial figures Q2 2002 6 III Lerøy at a glance 12 IV Lerøy Seafood Group - Company profile 17 V Market glance 29
Slide 3: Internal considerations
Internal considerations ! New equity of NOK 320 million ! Well positioned for future strategic growth ! Quoted on OSE 03.06.2002 ! 1.400 shareholders ! Acquired well established business in Sweden in 2002 ! TiMar Seafood AS activity allocated to Hallvard Lerøy AS 3
Slide 4: External considerations
External considerations ! Weak salmon and trout prices ! Still weaker in Q3 per date ! Uncertainty in price development rest of Q3 ! Expected price increase in Q4 ! Strong krone ! Norwegian export – less competitive ! Political issues / trade barriers ! EU – agreement prolonged into 2003 ? 4
Slide 5: Contents: Key financial figures Q2 2002
Contents Sections Page II Key financial figures Q2 2002 6
Slide 6: Resultatregnskap / Income Statement
Resultatregnskap / Income Statement Mill. NOK Q2 - 2002 Q2 - 2001 YTD 2002 YTD 2001 2 001 Salgsinntekter / Operating revenues 581 649 610 416 1 160 306 1 259 955 2 530 457 Vareforbruk / Cost of Goods Sold 534 892 575 126 1 060 159 1 186 143 2 332 845 Lønn o a personalk./Sal. and other pers. exp. 18
Slide 7: Balanse / Balance Sheet
Balanse / Balance Sheet Mill. NOK 30.06.02 30.06.2001 31.12.2001 Immaterielle eiendeler / Intangible assets 15 241 6 055 16 052 Varige driftsmidler / Tangible fixed assets 45 352 36 001 43 616 Finansielle anleggsmidler / Fin. fixed assets 304 560 150 709 307 646 Sum anleggsmidler / Total fixed asset
Slide 8: Balanse / Balance Sheet (cont.)
Balanse / Balance Sheet forts./cont. Mill. NOK 30.06.02 30.06.2001 31.12.2001 Innskutt egenkapital / Equity contributions 507 409 204 954 203 314 Opptjent egenkapital / Earned equity 119 863 96 770 109 201 Minoritetsinteresser / Minority interests 8 502 2 897 9 442 Sum egenkapital / Total equity 635
Slide 9: Key figures – Lerøy Seafood Group
Key figures – Lerøy Seafood Group Q2 - 2002 Q2 - 2001 YTD - 2002 YTD - 2001 2 001 Resultatmargin / Profit margin 1,28 % 1,96 % 1,57 % 2,22 % 2,24 % Driftsmargin / Operating margin 1,73 % 1,70 % 2,26 % 1,71 % 2,56 % Resultat per aksje / Earnings per share 0,22 0,48 0,58 1,12 2,10 Utv res per aksje /
Slide 10: Key figures – Lerøy Seafood Group
Key figures – Lerøy Seafood Group Q2 - 2002 Q2 - 2001 YTD - 2002 YTD - 2001 2 001 Avk. på syssels kapital / ROCE 2) 9,66 % 16,19 % 11,34 % 19,86 % 15,89 % Egenkapitalandel / Equity ratio 60,71 % 50,25 % 41,31 % Netto renteb gjeld / Net int. bearing debt 0 20 192 165 711 2) Annualisert / Annualized L
Slide 11: Contents: Lerøy at a glance
Contents Sections Page III Lerøy at a glance 12
Slide 12: Lerøy Seafood Group
Lerøy Seafood Group ! Norway’s largest seafood exporter ! 7,5% market share of Norwegian Seafood total exports (by value) ! 15% of Norwegian salmon export in 2001 ! Japan single largest market, EU most important region overall ! Global distribution network ! Global distribution from Head Office in B
Slide 13: Lerøy's focus and strategy
Lerøy Seafood Group’s focus and strategy ! Product- and market development ! Focus on fresh seafood products ! Maintain a wide product spectrum ! Utilize differentiation and segmentation opportunities combined with focus on own brands ! Concentrate on “private brands” in a long term and committing c
Slide 14: Key Success Factors going forward
Key Success Factors going forward ! Wide and attractive seafood product selection ! Competence and market knowledge ! Strong marketing and brand-building ! Continuity in deliveries ! Logistics and distribution ! Wide sourcing base of seafood products ! Strong partners and partnerships ! With produce
Slide 15: Shareholders
Shareholders Shareholder No. of shares Ownership share Ferd Private Equity 5 781 307 19,64 % Ole-Eirik Lerøy 4 685 000 15,91 % Hallvard Lerøy Jr. 1 690 900 5,74 % SND Invest AS 1 296 118 4,40 % Knut Hallvard Lerøy 1 253 210 4,26 % Bremnes Fryseri AS 1 124 669 3,82 % Skagen Vekst 1 000 000 3,40 % Tin
Slide 16: Contents: Company profile
Contents Sections Page lV Lerøy Seafood Group - Company profile 17
Slide 17: Lerøy Seafood Group ASA structure
Lerøy Seafood Group ASA Sales & Distribution Farming/other Associated companies Norskott Lerøy Smøgen Fiskets Fryserier Havbruk AS Hallvard Lerøy AS Nordvik SA 50% Seafood AB i Gøteborg AB 100% 80% 51% 80% Hydrotech Gruppen AS Lerøy Quality 39% Group AS Sigerfjord 56% Aqua AS 46% Egersund Fisk AS *
Slide 18: Sales per market Q2 2002
Sales per market Lerøy Seafood Group Q2 2002 Norway Others USA and 1% 11 % Canada 6% Japan/China o. Europe Asia 55 % 20 % Eastern Europe 7% 18
Slide 19: Sales per product Q2 2002
Sales per product Lerøy Seafood Group Q2 2002 Other products Other species 3% 12 % Pelagic fish 4% Whole salmon 41 % White fish 17 % Processed salmon 23 % 19
Slide 20: Sales per customer segment
Sales per customer segment ! Lerøy Seafood Group has developed Other long term relationships with clients 1% Superm./ ! Increasing focus on fresh Seafood, Catering causing increasing demands on product 27 % quality and continuity in logistics ! Consolidation in the Supermarket segment Wholesaler ! M
Slide 21: Group Companies – Sales & Distribution
Group Companies – Lerøy Seafood Group Sales & Distribution Lerøy Smøgen Lerøy Sverige AB Hallvard Lerøy AS Nordvik SA Seafood AB 80% 100% 80% 51% Sales - production Sales and distribution Sales and distribution ww Sales and distribution in In Sweden France Cold and hot smoked 5 marketing units Sea-f
Slide 22: Lerøy Smøgen Seafood AB (51%)
Lerøy Smøgen Seafood AB (51%) ! Shareholder structure ! Lerøy Seafood Group ASA 51% ! Lars Stranne (Man. Dir.) 49% ! Acquisition price NOK 16 million ! Core business ! Production of smoked seafood products ! Seafood salads ! Shellfish in brine ! Part ownership acquired in Q 3 2002 Mill SEK 2001 2000
Slide 23: Norskott Havbruk (50%)
Norskott Havbruk (50%) ! Norskott Havbruk owns 100% of Scottish Sea Farms ! 50% owned by Lerøy Seafood Group ASA ! 50% owned by SalMar AS ! Wholly integrated fish farms in Scotland and Shetland. ! Production capacity: 25,000 – 30,000 gwt ! Volume sold 2001: 21,000 gwt ! 2 slaughteries ! Other ! Labe
Slide 24: Norskott Havbruk
Norskott Havbruk Company incorporated August 1. 2001 NOKm Q2 - 2002 Q1 - 2002 YTD 2002 Aug-Dec 2001 Revenues 120,7 134 254,7 294,7 EBITDA 12,9 8,7 21,6 32,1 EBIT 2,2 -0,6 1,6 13,1 Pre tax -3,9 -7,8 -11,7 -0,5 Volume gutted weight (t) 3,5 5,3 8,8 12 Balance sheet 31.03.2002 30.06.2002 31.12.2001 Conc
Slide 25: Hydrotech Gruppen AS (39%)
Hydrotech Gruppen AS (39%) ! Ownership ! 39% owned by Lerøy Seafood Group ASA ! 57.3% owned by L & K Karlsen Holding AS ! 3.7% owned by others ! Wholly integrated fish farms in Norway ! 18 licenses ! Production year 2001: 16,000 gwt ! Salmon 9,000 gwt ! Trout 7,000 gwt ! Smolt production: appr. 5- 6
Slide 26: Hydrotech Gruppen AS
Hydrotech Gruppen AS NOK Q2 - 2002 Q1 - 2002 YTD 2002 2001 Revenues 66,1 61,6 127,7 350 EBITDA 6,4 0,2 6,6 47,7 EBIT 0,8 -5,4 -4,6 25,4 Pre tax -5,2 15,6 10,4 1 Gutted weight salmon & trout (t) 2,7 2,6 5,3 15,6 Balance sheet 31.03.2002 30.06.2002 31.12.2001 Fixed assets 303,0 303,0 307,8 Inventories
Slide 27: Egersund Fisk AS (27%)
Egersund Fisk AS (27%) ! Shareholder structure ! Lerøy 27% ! Salmar 27% ! Egersund Fiskeriinvestering 9% ! Others 37% (less than 4% each) ! Pelagic activity ! Fish oil, fish meal ! Pelagic fish for consumption ! Ownership in vessels for wild catch ! Production of ice ! Part ownership acquired in 200
Slide 28: Contents: Market glance
Contents Sections Page V Market glance 29
Slide 29: The increase in demand for seafood will have to come from aquaculture
The increase in demand for seafood will have to come from aquaculture 250 9 8 200 7 World population (billions) 6 150 5 4 100 3 2 50 1 0 0 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 Wild catch - fishmeal Wild catch - food Aquaculture Population 29
Slide 30: Atlantic salmon – Supply side
Atlantic salmon – Supply side ’000 tonnes Prognosis Growth 2001 2002 2001-02E Norway 418 440-460 5 - 10% Chile 204 280-290 37- 42% UK 149 140-145 -6 - -3% Canada 86 90-100 5 - 16% Faroe Islands 41 40-45 0 - 10% Irland 23 20-25 -13 - 9% USA 24 20-25 -17 - 4% Others 17 20-22 -18 - 29% In total 962 1 0
Slide 31: Atlantic salmon – Demand side
Atlantic salmon – Demand side Market Volume Volume Change 2001 2002E (y/y) EU 500 000 525 000 +5% USA 240 000 275 000 +15% Japan 71 000 73 000 +3% E Europa 32 000 47 000 +47% S E Asia 30 000 36 000 +20% Other 100 000 115 000 +15% Total 973 000 1 071 000 +10% Source: EFF’s estimates 31
Slide 32: Fresh Atlantic Salmon Norway – price development
19 0 5 10 15 20 25 30 35 40 97 19 -1 97 - 19 1 1 NOK / Kg 97 - 19 2 1 97 - Source: FHL/SSB 19 3 1 97 - 19 4 1 97 -5 19 1 9 19 8-9 98 - 19 1 9 98 - 19 2 9 98 - 19 3 9 98 -4 – price development 19 9 9 19 9-6 99 - 19 1 6 99 - 19 2 6 99 - 19 3 6 32 99 -4 20 6 00 20 -4 00 20 -1 4 00 - 20 2 4 00 - 20 3 4
Slide 33: Fresh Atlantic Salmon Norway – price development Q2 02
Fresh Atlantic Salmon Norway (4-5 kgs) – price development Q2 02 – Week 33 (FNL) Q1 Q2 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 Uk 13 U 14 Uk 15 Uk 16 Uk 17 Uk 18 Uk 19 Uk 20 Uk 21 U 22 Uk 23 Uk 24 U 25 Uk 26 Uk 27 U 28 Uk 29 Uk 30 U 31 Uk 32 33 e ke e e e e e ke e e ke e e ke e e ke e e e e
Slide 34: Lerøy Seafood Group 1st half 2002
Lerøy Seafood Group 1st half 2002