Leroy Seafood Group Asa · OSL:LSG
Leroy Seafood Group Asa — Lerøy Seafood Group — FY2006 Earnings Presentation
45 slides from Leroy Seafood Group Asa's earnings presentation, Feb 26, 2007
Slide 1: Preliminary financial figures 2006
Lerøy Seafood Group Preliminary financial figures 2006 February 26th 2007 Ole-Eirik Lerøy President & CEO Helge Singelstad Vice president & vice CEO
Slide 2: Agenda
Agenda 1.1 Considerations 2.2 Preliminary financial figures 2006 3.3 Lerøy at a glance 4.4 Market glance
Slide 3: Turnover LSG
Turnover LSG Mill. NOK 6000 5500 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 1980 1985 1990 1995 1999 2000 2001 2002 2003 2004 2005 2006
Slide 4: ROCE (%) and PTP before biomass adjustments
ROCE (%) and PTP before biomass adjustments 35 800 30 700 600 25 500 20 ROCE 400 Pre tax profit 15 300 10 200 5 100 0 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Slide 5: Return on capital employed before biomass adjustments
Return on capital employed (ROCE) before biomass adjustments 35 30 25 P ersent 20 * 15 10 5 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 * Target set before IPO 2002
Slide 6: Number of shareholders
Number of shareholders 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Slide 7: Shareholders 31.12.06
Shareholders 31.12.06 Shareholder No. of shares Ow nership share Profond AS* 6 803 040 15,90 % Pareto Aksje Norge 2 639 600 6,17 % Skagen Vekst 1 950 000 4,56 % MP Pensjon 1 701 984 3,98 % Ferd AS 1 519 000 3,55 % Pareto Aktiv 1 278 600 2,99 % Verdipapirfond Odin 1 090 250 2,55 % Lime AS* 960 573 2,
Slide 8: Internal considerations 2006, main preliminary figures
Internal considerations 2006, main preliminary figures All figures in mill NOK Q4 - 06 Q4 - 05 Change 2006 2005 Change Turnover 1 761 1 393 26 % 5 616 4 014 40 % EBIT bef adj biom 207 105 97 % 684 274 150 % Operating profit 225 91 147 % 770 352 119 % Affiliated comp. 27 23 17 % 129 77 68 % Pre-tax p
Slide 9: Internal considerations Q4 2006
Internal considerations Q4 2006 • Financially Solid • Well positioned for future organic and strategic growth • Proposed dividend NOK 4.0 per share • 4.884 shareholders as of 31 December 2006 • Up from 3.484 shareholders at year end 2005 • Consolidated business areas • Satisfactory operation in prod
Slide 10: Internal considerations Q1 2007
Internal considerations Q1 2007 • Acquisition of Veststar Holding AS • Fish farming, processing and distribution in France • 27 licenses in Hordaland, Norway • Will harvest approximately 16.000 (GW) in 2007 • Smolt production • Euro Salmon in France, processor and distributor • Chile • New name Lerø
Slide 11: External considerations Q4 2006
External considerations Q4 2006 • Drop in salmon and trout spot prices in Q4 • Prices down 24,7% from Q306, but still strong market in Q406 • Prices YTD 26,9% higher than comparable figures 2005 • Prices so far in Q107 higher than prices in Q106 • Strong market • Currencies • Future will bring great
Slide 12: Agenda
Agenda 1.2 Preliminary financial figures 2006 2.3 Lerøy at a glance 3.4 Market glance
Slide 13: Income Statement 2006, preliminary figures
Resultatregnskap / Income Statement 2006, preliminary figures Alle tall i NOK 1.000 / All figures in NOK 1,000 Q4 - 2006 Q4 - 2005 2 006 2005 Salgsinntekter / Operating revenue 1 761 019 1 392 929 5 616 592 4 014 454 Vareforbruk / Cost of goods sold 1 257 325 1 125 471 4 105 186 3 254 686 Lønnskostn
Slide 14: Balance Sheet 2006, preliminary figures
Balanse / Balance Sheet 2006, preliminary figures Alle tall i NOK 1.000 / All figures in NOK 1,000 31.12.06 31.12.05 Immaterielle eiendeler / Intangible assets 1 922 348 443 908 Varige driftsmidler / Tangible fixed assets 695 062 284 832 Finansielle anleggsmidler / Financial fixed assets 314 933 340
Slide 15: Balance Sheet 2006, preliminary figures
Balanse / Balance Sheet 2006, preliminary figures Alle tall i NOK 1.000 / All figures in NOK 1,000 31.12.2006 31.12.2005 Innskutt egenkapital / Equity contributions 1 282 539 855 967 Opptjent egenkapital / Earned equity 1 038 008 439 139 Minoritetsinteresser / Minority interests 20 172 6 705 Sum ege
Slide 16: Key figures - Lerøy Seafood Group 2006
Key figures - Lerøy Seafood Group 2006 Preliminary figures Nøkkeltall / Key figures Q4 - 2006 Q4 - 2005 2 006 2 005 Res ultatm argin / Profit m argin 1) 13,13 % 7,83 % 15,28 % 10,27 % Drifts m argin før jus t.biom as s e/Operating m argin bef.adj.biom as s . 11,78 % 7,51 % 12,17 % 6,83 % Drifts m ar
Slide 17: Affiliated companies, LSG-share profit after tax
Affiliated companies, LSG-share profit after tax Preliminary figures All figures in mill NOK Korr.varer / Korr.varer / Q4 2006 Q4 2005 2006 adj.inventory 2005 adj.inventory Lerøy Hydrotech (39%,100% af ter 1.9.2006) 1) 0 8 908 43 681 5 778 28 584 2 381 Egersund Fisk A S (27%) 118 2 998 2 734 0 4 622
Slide 18: Consolidated Preliminary figures 31.12.06
Lerøy Seafood Group Consolidated Preliminary figures 31.12.06 • Total equity (41,75%) 2.340 mill NOK • Net interest bearing debt 1.416 mill NOK • Total intangible assets 1.922 mill NOK • Licences smolt / fish farming Norway 765 mill • Goodwill / def. tax 1.157 mill • Total LSG-shares Desember 2006 4
Slide 19: Agenda
Agenda 1.3 Lerøy at a glance 2.4 Market glance
Slide 20: 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
Slide 21: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA Sales Sales&&Distribution Distribution Production Production Affiliated Affiliated Norskott Hallvard HallvardLerøy LerøyAS AS Lerøy Midnor AS Lerøy Midnor AS NorskottHavbruk HavbrukAS* AS* 100% 100% 50% 100% 100% 50% Lerøy Lerøy Sverige SverigeAB Egersund AB Lerøy LerøyAurora
Slide 22: Employees, December 2006
Lerøy Seafood Group Employees, December 2006 Sales and distribution 408 Production and farming 749 T otal Group 1157 Affiliates 405 T otal included affiliates 1562
Slide 23: Lerøy Seafood Group
Lerøy Seafood Group • Norway’s largest seafood exporter in 2006 • 11,7 % share of Norwegian Seafood tot exports value • 17,8 % of Norwegian salmon export • 15,4% pf Norwegian salmon export in 2005 • 14,6 % of Norwegian salmon export in 2004 • 36,0 % of Norwegian value added salmon export • Fish farm
Slide 24: Global distribution network
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, USA)
Slide 25: Lerøy Seafood Group
Lerøy Seafood Group • Steady growth in operating profit and strong balance sheet • Satisfactory earnings • Growth potential within recently acquired businesses • Satisfactory liquidity • Professional and highly motivated employees • Strong partnerships / Network of alliances
Slide 26: Markets strategy
Lerøy Seafood Group • Markets strategy: • Quality • Branding • Diversity in product range • Diversity in customer base • Market-oriented solutions • Geographical spread • Continuity in deliveries • Cost efficiency
Slide 27: Hallvard Lerøy AS distribution
PELAGIC WHITEFISH FARMED FISH HALLVARD LERØY AS DISTRIBUTION DISTRIBUTION DISTRIBUTION DISTRIBUTION FRANCE DIRECT EXPORT NORWAY FRANCE NORWAY DISTRIBUTION DISTRIBUTION DISTRIBUTION DISTRIBUTION UK UK SWEDEN SWEDEN LERØ LERØY LERØY LERØ LERØY LERØY FRANCE FRANCE PORTUGAL PORTUGAL DISTRIBUTION DISTRIB
Slide 28: Sales per market 2006
Lerøy Seafood Group - Sales per market 2006 Rest of Europe Others 6,2 % 2,0 % USA and Canada 5,9 % Norway 15,3 % EU 59,6 % Asia Pacific 11,0 %
Slide 29: Sales per product 2006
Lerøy Seafood Group - Sales per product 2006 Salmontrout S hellfish 7,7 % 4,3 % Other/other species 4,2 % Pelagic fish 2,5 % White fish Whole salmon 10,7 % 48,5 % Processed salmon 22,1 %
Slide 30: Lerøy Sweden
Lerøy Sweden Lerøy Allt i Fisk Lerøy Fiskgrossisterna Lerøy Smøgen Seafood Lerøy Nordhav
Slide 31: New factory in spring 2007
New factory in spring 2007 • Site 26.000 kvm • Base 6.500 kvm
Slide 32: Processing, France
Processing, France
Slide 33: Farming Norway
Farming Norway Lerøy Aurora AS • Lerøy Aurora AS • Sigerfjord Aqua AS Sigerfjord Aqua AS • Lerøy Midnor AS • Lerøy Hydrotech AS • Lerøy Fossen AS Lerøy Midnor AS Lerøy Hydrotech AS Lerøy Fossen AS
Slide 34: Salmon/trout farming
Lerøy Seafood Group – salmon/trout farming Company Ownership Licences Mill. smolt 2006 Volume gwt 2007E share individuals Total Total LSG share Lerøy Midnor AS 100 % 28 7,0 27 200 27 000 27 000 Lerøy Aurora AS 100 % 16 3,5 13 700 17 500 17 500 Lerøy Fossen AS* 100 % 7 2,7 4 900 7 000 7 000 Lerøy Hyd
Slide 35: Key Figures Production Q4 2006
Key Figures Production Q4 2006 Lerøy Lerøy Lerøy Lerøy Total Figures MNOK Midnor Hydrotech Aurora Fossen Others Harvested Revenues 278,1 188,7 99,6 64,4 91,0 721,7 EBIT before biom.adj. 93,2 32,2 29,6 6,2 8,3 169,5 EBIT 87,8 29,6 50,8 10,4 8,3 186,9 Volumes (gwtt) 9,2 6,6 3,8 1,3 - 20,9
Slide 36: Key Figures Production 2006
Key Figures Production 2006 Lerøy Lerøy Lerøy Lerøy Total Figures MNOK Midnor Hydrotech 1) Aurora Fossen 2) Others Harvested Revenues 872,9 258,4 388,5 177,0 315,1 2011,9 EBIT before biom.adj. 360,1 56,2 131,6 35,6 18,0 601,5 EBIT 424,3 33,0 175,2 36,9 18,0 687,4 Volumes (gwtt) 27,2 17,6 13,7 4,9 -
Slide 37: Norskott Havbruk
Norskott Havbruk NOKm Q4 - 2006 Q4 - 2005 2006 2005 Revenues 230 231 791 775 EBITDA 97 43 238 136 EBIT bef adj biom 89 36 212 110 EBIT 68 58 237 145 Pre tax 64 53 220 121 Volumes (gwtt) 7,0 5,5 20,1 20,7 Balance sheet 31.12.2006 31.12.2005 Licences, Goodwill 379 389 Tangible fixed assets 140 111 Inv
Slide 38: Lerøy Hydrotech AS
Lerøy Hydrotech AS NOKm Q4 - 2006 Q4 - 2005 2006 2005 Revenues 163 112 606 374 EBITDA 38 38 218 118 EBIT bef adj biom 32 33 196 99 EBIT 29 30 217 108 Pre tax 26 30 205 101 Volumes (gwtt) 6,6 3,7 17,6 12,4 Balance sheet 31.12.2006 31.12.2005 Licences, Goodwill 655 140 Tangible fixed assets 180 149 In
Slide 39: Agenda
Agenda 1.5 Market glance
Slide 40: Fresh Atlantic Salmon Norway price development
NOK/kg 10 15 20 25 30 35 40 45 50 1997-1 1997-16 1997-31 Source: FHL/NSL 1997-46 Figures per 05.02.07 1998-9 1998-24 1998-39 1999-1 1999-16 1999-31 1999-46 2000-9 2000-24 2000-39 2001-2 2001-17 2001-32 2001-47 2002-10 2002-25 2002-40 2003-3 2003-18 2003-33 2003-48 Fresh Atlantic Salmon Norway (4-5 k
Slide 41: Salmon export from Norway as of week 6-2007
Oslo Salmon export from Norway as of week 6-2007 Fresh atlantic salmon, cross-section, FCA Av. Q4-05 NOK 25.94 Av. Q4-06 NOK 25.92 Down by 0.1 %. Av. 06 NOK 32.8, up 26.9% vs NOK / kg 2005 Oslo Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03 Q4-03 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-0
Slide 42: Market development for Atlantic Salmon from Norway
Market development for Atlantic Salmon from Norway Jan-Dec 2005 vs Jan-Dec 2006 Volume 2005 Volume 2006 Change Value 2005 Value 2006 Change EU 408 615 437 124 7% 9 985 608 12 874 112 29 % Others 45 470 59 759 31 % 1 172 645 1 839 962 57 % Japan 30 409 26 824 -12 % 803 456 843 243 5% Russia 54 289 37
Slide 43: Atlantic salmon – supply
Atlantic salmon – supply In tons WFE Change Change Change Change 2004 03-04 2005 04-05 2006 E 05E-06E 2007 E 06E-07E Norway 537 000 6% 572 200 7% 597 400 4% 650 400 9% United Kingdom 149 800 -8 % 119 700 -20 % 127 800 7% 138 400 8% Faroe Islands 36 800 -22 % 17 200 -53 % 11 600 -33 % 16 500 42 % Ire
Slide 44: Drivers Salmon per 31.12.2006
Drivers Salmon per 31.12.2006 • Norway total export volume of Atlantic Salmon (571 993 mt WFE) + 4 % • Norway – EU (volume Atlantic Salmon) (437 124 mt WFE) +7% • Norway – EU (value Atlantic Salmon) (12 874 MNOK) + 29 % • Sales of fish-feed in Norway (986 100 mt) + 9% Figures per 05.02.07 Sources: N
Slide 45: Thank you!
Thank you ! www.leroy.no