Mowi Asa · OSL:MOWI
Mowi Asa — Pan Pelagic — IPO Roadshow (April 2001)
39 slides from Mowi Asa's IPO roadshow presentation, Apr 25, 2001
Slide 1: Initial public offering; Pan Pelagic ASA
Initial public offering; Pan Pelagic ASA One of the leading companies in the European pelagic fish industry 25 April 2001
Slide 2: Background for the listing and the share issue
Background for the listing and the share issue • Position Pan Pelagic for future growth Overall objective • Use the Pan Pelagic share in settlements • Flexibility in possible transactions • Flexibility for the shareholders Listing • Attractiveness of the share in possible future share issues • Attra
Slide 3: The transaction
The transaction § Number of shares issued: 51,470,590 § Subscription price per share: NOK 13.60 § Total proceeds: NOK 700,000,024 § Start of subscription period: 26 April 2001 § Last day of subscription: 11 May 2001 § Allotment: appr. 22 May 2001 § Preferential rights issued to owners of the shares
Slide 4: Agenda
Agenda: 1. Overview of the pelagic industry 2. Presentation of Pan Pelagic 3. Financial information Appendix 4
Slide 5: Definitions and important pelagic fish species
Definitions and important pelagic fish species Pelagic § The pelagic fish species are a type of fish living close to the surface, and appears in a fish shoal (stim). They travel long distances and consume mainly plancton Sild - Herring Makrell - Mackerel Hestmakrell - Jack Mackerel Lodde - Capelin 5
Slide 6: The continued strong growth in demand will represent an increasing pressure on wild fish resources
The continued strong growth in demand will represent an increasing pressure on the scarce wild fish resources in the future § Future demand growth will be a function of increase in per capita consumption and growth in global population § FAO estimates the global demand for fish for human consumption
Slide 7: Aggregated value chain for the pelagic industry
Aggregated value chain for the pelagic industry Consumer market Processing, packaging, Sales and marketing freezing and storage ≈ 49% of ‘00 volume • The processing industry for consumer market has approximately 100% excess capacity in high season • Dominated by two large players (≈45% in Wild catch
Slide 8: Fishmeal - supply and demand
Fishmeal - supply and demand 12 700 600 US$/tonnes cif Hamburg 64-65% 10 500 8 Million tonnes 400 6 300 4 200 2 100 0 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Aquaculture Pig Poultry Price of Fish Meal Production of Fish Meal Source: FAO, IFOMA, Oilworld
Slide 9: Fish oil - supply and demand
Fish oil - supply and demand 2000 800 1800 700 US$/tonnes N.W. Europe 1600 600 1400 1000 tonnes 1200 500 1000 400 800 300 600 200 400 200 100 0 0 1994 1996 2002 2004 2006 2007 1995 1997 1998 1999 2000 2001 2003 2005 2008 2009 2010 Fish Oil needed in Aquaculture Price of Fish Oil Production of Fish O
Slide 10: Pelagic consumption - few but big importers
Pelagic consumption - few but big importers § Atlantic Mackerel, Herring, Jack Mackerel and Capelin are the most attractive pelagic species used for consumption § The main export markets for Norwegian catch is Russia, Japan, Ukraine and Poland § The increased demand is mainly driven by Eastern Europ
Slide 11: Japan stable, growth in USSR-area consumption
Japan stable, growth in USSR-area consumption • The export of Mackerel to Japan grew 6% from 98 to 00, with a small decrease from 99 to 00 • The consumption potential is huge in the USSR-area (only 40% of the maximum consumption today) • The total USSR-catch shows a negative development • High oil p
Slide 12: Mackerel – export price and quantity
Mackerel – export price and quantity 1000 tonnes NOK/kg Quantity Export price 400 10 9 350 8 300 7 250 6 200 5 4 150 3 100 2 50 1 0 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 12
Slide 13: Herring – export price and quantity
Herring – export price and quantity 1000 tonnes NOK/kg 450 Quantity Export price 7 400 6 350 5 300 250 4 200 3 150 2 100 1 50 0 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 13
Slide 14: Herring fillet – export price and quantity
Herring fillet – export price and quantity 1000 tonnes NOK/kg 140 Quantity Export price 12 120 10 100 8 80 6 60 4 40 2 20 0 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 14
Slide 15: Capelin – export price and quantity
Capelin – export price and quantity 1000 tonnes NOK/kg 60 Quantity Export price 14 12 50 10 40 8 30 6 20 4 10 2 0 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 15
Slide 16: Summary of industry dynamics
Summary of industry dynamics § The world wide demand for fish for human consumption is expected to continue growing and reach a total level of 183 million tonnes in 2030 - well above the current level of 98 million tonnes § Wild catch can not be expected to increase above current level of 85-95 mill
Slide 17: Agenda
Agenda: 1. Overview of the pelagic industry 2. Presentation of Pan Pelagic 3. Financial information Appendix 17
Slide 18: Company overview - Business areas
Company overview - Business areas Pan Pelagic ASA Catch Consumption Meal, oil & feed Austevoll Havfiske 18
Slide 19: Business area: Catch
Business area: Catch The Pan Pelagic fishing fleet currently consists of 12 vessels Table; The Pan Pelagic vessel fleet Vessel Ownership Type Built (rebuilt) Load capacity Norwegian license* M/S Havbas 49% Purse seiner 1948 (90) 745 m3 511 tonnes M/S Østerbris 49% Purse seiner/trawler 1999 1,600 m3
Slide 20: Business area: Meal, oil & feed
Business area: Meal, oil & feed Representing appr. 30% of the total production in Norway (‘01) § Pan Pelagic produces fishmeal and -oil from three plants, two in Måløy and one in Vadsø § The Deknepollen plant was the largest in Norway in ‘99 with production based on 165,000 tonnes of fish and guttin
Slide 21: Business area: Consumption
Business area: Consumption The processing plants represent appr. 28% of the Norwegian production § Pan Pelagic processes fish from the best fishing areas in the world, and the products have superior international quality (good fat level and high quality) § The key operations in the production plants
Slide 22: The ten production plants are located at the west coast of Norway
Business area: Consumption The ten production plants are located at the west coast of Norway Illustration; The Global Herøy production plant Illustration; Location of Pan Pelagic plants § Global Herøy was established in 1992 and was the first pelagic plant approved according to new EU regulations 22
Slide 23: Austevoll Havfiske ASA – company overview
Business area: Other investments Austevoll Havfiske ASA – company overview Austevoll Austevoll Havfiske Havfiske ASA ASA Catch Consumer market and fish feed Fish farming Pelagic fisheries and fish farming 46% – 100% 63% 90% 36% Austevoll Austevoll Fisk Fisk AS AS Br. Br. Birkeland Birkeland AS AS Se
Slide 24: Austevoll Havfiske ASA – Financial figures
Business area: Other investments Austevoll Havfiske ASA – Financial figures Profit & Loss: MNOK 1997 1998 1999 2000 2001B* Revenues 648 929 914 1,016 1,332 EBITDA 102 157 160 147 316 EBIT 42 101 91 85 264 Profit before tax 12 57 42 38 227 * Including a gain of appr. NOK 95 millions from sale of asse
Slide 25: Board of Directors and Management
Board of Directors and Management The Board of Pan Pelagic ASA: Arne Stang (Chairman) Arne Nore Bjarte Tunold Helge Møgster CEO: Geir Robin Hoddevik Deputy CEO: Sveinung Flem Harald Bø Financial director Catch Meal, oil & feed Consumption Geir Robin Hoddevik Arne Stang Sveinung Flem CEO Director Dep
Slide 26: Strategy
Strategy Þ Increase profitability through active restructuring of the industry § Increase market share within production for the consumer market from 28% to 40% within 2- 4 years through acquisitions § Significant potential exists in restructuring of the fishmeal and -oil industry Þ Continue expansi
Slide 27: Agenda
Agenda: 1. Overview of the pelagic industry 2. Presentation of Pan Pelagic 3. Financial information Appendix 27
Slide 28: Consolidated P&L accounts for Pan Pelagic ASA
Consolidated P&L accounts for Pan Pelagic ASA Acc- Pro Acc- Pro Pro Pro ounts forma ounts forma forma forma Amounts in NOK million 31.3.01 31.3.00 2000 2000 1999 1998 Revenues 531 326 829 1 463 1 524 1 510 Operating result 47 19 52 45 0 -30 Total financial items 11 -13 -9 -60 -46 -24 Result before t
Slide 29: Consolidated balance sheet for Pan Pelagic ASA
Consolidated balance sheet for Pan Pelagic ASA Acc- Pro Acc- Pro Pro Pro ounts forma ounts forma forma forma Amounts in NOK million 31.3.01 31.3.00 31.12.00 31.12.00 31.12.99 31.12.98 Fixed assets 1,223 1,202 784 1 220 968 960 Current assets 626 458 428 438 412 479 Total assets 1,849 1,659 1 213 1 6
Slide 30: Operating revenues
Operating revenues - The business area ”Catch” is not consolidated 530,5 Group 326,3 57,6 Catch 43,0 103,0 Meal/Oil/Feed 55,9 436,2 Consumption 270,0 0 100 200 300 400 500 600 Quarter 1 2000 Quarter 1 2001 30
Slide 31: Operating profit
Operating profit - The business area Catch is not consolidated 47,1 Group 18,5 13,1 Catch 5,2 17,1 Meal/Oil/Feed -2,8 30,9 Consumption 20,8 -5 0 5 10 15 20 25 30 35 40 45 50 Quarter 1 2000 Quarter 1 2001 31
Slide 32: Export of pelagic fish products
Export of pelagic fish products quantity (tons) 140000 120000 100000 80000 60000 40000 20000 0 Herring Herring fillet Mackerel Capelin Quarter 1 2000 Quarter 1 2001 32
Slide 33: Pelagic industry - price pr kg main products
Pelagic industry - price pr kg main products Round frozen 3,06 unsorted capelin 2,49 Round frozen 7,87 mackerel 5,51 11,53 Frozen herring fillet 4,87 'March 2001 'March 2000 Round frozen 5,28 herring 2,80 3,85 Fish oil (for fish feed) 2,30 Fish meal LTQ (for 5,20 fish feed) 4,90 33
Slide 34: Pelagic landings in Norway
Pelagic landings in Norway - quantity (tonnes) – as of week 13 1 000 000 900 000 800 000 700 000 600 000 500 000 400 000 300 000 200 000 100 000 0 Consumption Meal/oil Total Quarter 1 2000 Quarter 1 2001 34
Slide 35: Comments to Q1 2001
Comments to Q1 2001 Key events with significant effect on the P&L accounts § Increased prices for all pelagic species § Lower quotas for herring, but all catch to human consumption § Higher quotas for capelin § Increased demand for fish feed has led to an increase in the prices on fish oil of 67% an
Slide 36: Comments to the last years
Comments to the last years Key events with significant effect on the P&L accounts § Significant and extraordinary losses on accounts receivable due to the crises in the Russian economy and the Russian devaluation in august 1998 § E.g. losses on accounts receivable in Global Fish AS amounted to MNOK
Slide 37: Agenda
Agenda: 1. Overview of the pelagic industry 2. Presentation of Pan Pelagic 3. Financial information Appendix 37
Slide 38: The management team is highly experienced within the industry
The management team is highly experienced within the industry Geir Robin Hoddevik § Hoddevik has a degree in fishery from the University of Tromsø. He worked for President and CEO Fiskebåtredernes Forbund in Ålesund from 1981 - 1987, and ran his own fishing boat company in the period 1987 - 1990. In
Slide 39: The board of directors
The board of directors Arne Stang § Please refer to the presentation of Arne Stang under “The management team” Chairman of the board Bjarte Tunold § Tunold has an M.Sc. in business from the Norwegian School of Economics and Business Board member Administration (NHH) from 1987. He became assistant ma