Leroy Seafood Group ASA · OSL:LSG
Leroy Seafood Group ASA — Lerøy Seafood Group — Q3 2006 Earnings Presentation
46 slides from Leroy Seafood Group ASA's earnings presentation, Nov 1, 2006
Slide 1: Lerøy Seafood Group Quarterly report Third quarter 2006
Lerøy Seafood Group Quarterly report Third quarter 2006 November 1st 2006 Ole-Eirik Lerøy President & CEO Helge Singelstad Vice president & vice CEO
Slide 2: Agenda
Agenda 1.1 Considerations 2.2 Key financial figures Q3 2006 3.3 Lerøy at a glance 4.4 Market glance
Slide 3: Turnover LSG
Turnover LSG Mill. NOK 4000 3500 3000 2500 2000 1500 1000 500 0 1980 1985 1990 1995 1999 2000 2001 2002 2003 2004 2005 YTD YTD 2005 2006
Slide 4: ROCE (%) and PTP before biomass adjustments
ROCE (%) and PTP before biomass adjustments 35 600 30 500 25 400 20 ROCE 300 Pre tax profit 15 200 10 100 5 0 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 YTD YTD 2005 2006
Slide 5: Return on capital employed (ROCE) before biomass adjustments
Return on capital employed (ROCE) before biomass adjustments 35 30 25 P rosent 20 * 15 10 5 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 YTD 2006 * Target set before IPO 2002
Slide 6: Number of shareholders
Number of shareholders 4500 4000 3500 3000 2500 2000 1500 1000 500 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006YTD
Slide 7: Shareholders 25.10.06
Shareholders 25.10.06 Shareholder No. of shares Ow nership share Profond AS* 6 788 040 15,87 % Pareto Aksje Norge 1 908 500 4,46 % Skagen Vekst 1 786 500 4,18 % MP Pensjon 1 701 984 3,98 % Ferd AS 1 519 000 3,55 % Credit Suisse Securities 1 128 310 2,64 % Verdipapirfond Odin 1 114 750 2,61 % Lime AS
Slide 8: Internal considerations Q3 2006
Internal considerations Q3 2006 All figures in mill NOK Q3 - 06 Q3 - 05 Change YTD 2006 YTD 2005 Change Turnover 1 399 940 49 % 3 856 2 622 47 % EBIT bef adj biom 206 93 122 % 476 169 182 % Operating profit 208 121 72 % 536 226 137 % Affiliated comp. 54 28 93 % 97 47 106 % Pre-tax profit 254 143 78
Slide 9: Internal considerations Q3 2006
Internal considerations Q3 2006 • Financially Solid • Well positioned for future organic and strategic growth • 4.359 shareholders as of 25 October 2006 • Up from 3.484 shareholders at year end 2005 • Consolidated business areas • Satisfactory operation in production • Development according to plans
Slide 10: Internal considerations Q3 2006
Internal considerations Q3 2006 Sales and distribution • Acquisitions done in H106 • Delico AS, Stavanger • Haarberg & Larssen AS, Trondheim • Fisker’n Maritime Produkter AS, Oslo Production • Acquisitions done in Q306 • Lerøy Hydrotech AS • Spawn • Smolt • Farming • Processing • Lerøy Fossen AS acq
Slide 11: External considerations Q3 2006
External considerations Q3 2006 • Volatile salmon and trout spot prices Q2/Q3 • Prices down 13,37% from Q206, strong, but volatile market in Q306 • Prices YTD 33,5% higher than comparable figures YTD05 • Prices so far in Q406 higher than prices in Q405 • Strong market, less volatility • Currencies •
Slide 12: Agenda
Agenda 1.2 Key financial figures Q3 2006 2.3 Lerøy at a glance 3.4 Market glance
Slide 13: Resultatregnskap / Income Statement Q3 2006
Resultatregnskap / Income Statement Q3 2006 Alle tall i NOK 1.000 / All figures in NOK 1,000 Q3 - 2006 Q3 - 2005 YTD 2006 YTD 2005 2005 Salgsinntekter / Operating revenue 1 399 602 940 458 3 855 573 2 621 525 4 014 454 Vareforbruk / Cost of goods sold 987 137 727 015 2 847 861 2 129 215 3 254 686 Lø
Slide 14: Balanse / Balance Sheet Q3 2006
Balanse / Balance Sheet Q3 2006 Alle tall i NOK 1.000 / All figures in NOK 1,000 Q3 - 2006 Q3 - 2005 2005 Immaterielle eiendeler / Intangible assets 1 948 110 434 383 443 908 Varige driftsmidler / Tangible fixed assets 651 935 270 388 284 832 Finansielle anleggsmidler / Financial fixed assets 275 53
Slide 15: Balanse / Balance Sheet Q3 2006
Balanse / Balance Sheet Q3 2006 Alle tall i NOK 1.000 / All figures in NOK 1,000 Q3 - 2006 Q3 - 2005 2005 Innskutt egenkapital / Equity contributions 1 282 589 852 887 855 967 Opptjent egenkapital / Earned equity 814 493 309 880 413 274 Minoritetsinteresser / Minority interests 18 875 3 713 6 705 Su
Slide 16: Key figures - Lerøy Seafood Group Q3 2006
Key figures - Lerøy Seafood Group Q3 2006 Nøkkeltall / Key figures Q3 - 2006 Q3 - 2005 YTD 2006 YTD 2005 2005 Res ultatm argin / Profit m argin 18,18 % 15,23 % 15,90 % 9,93 % 9,74 % Drifts m argin / Operating m argin 14,85 % 12,85 % 13,91 % 8,61 % 8,56 % Res ultat per aks je / Earnings per s hare 4,
Slide 17: Affiliated companies, LSG-share profit after tax
Affiliated companies, LSG-share profit after tax All figures in mill NOK Ko rr.varer / Ko rr.varer / Q3 2006 Q3 2005 YTD 2006 adj.invento ry YTD 2005 adj.invento ry Lerøy Hydrotech (39%) 1) 16 057 8 971 39 497 1 575 17 038 784 Egers und Fis k AS (27%) 2 130 184 2 616 0 1 624 0 Nors kott Havbruk AS (
Slide 18: Consolidated Key figures 30 September 2006
Lerøy Seafood Group Consolidated Key figures 30 September 2006 • Total equity (39,11%) 2.116 mill NOK • Net interest bearing debt 1.536 mill NOK • Total intangible assets 1.948 mill NOK • Licences smolt / fish farming Norway 763 mill • Goodwill / def. tax 1.185 mill • Total LSG-shares September 2006
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 France 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, September 2006
Lerøy Seafood Group Employees, September 2006 Sales and distribution 372 Production and farming 626 T otal Group 998 Affiliates 301 T otal included affiliates 1 299
Slide 23: Lerøy Seafood Group
Lerøy Seafood Group • Norway’s largest seafood exporter in 2005 • 11,0 % share of Norwegian Seafood tot exports value • 15,4 % of Norwegian salmon export • 14,6 % of Norwegian salmon export in 2004 • 30,8 % of Norwegian value added salmon export • Fish farming operations • Lerøy Midnor AS (100%) • L
Slide 24: 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, 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: 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 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 Q3 2006
Lerøy Seafood Group - Sales per market Q3 2006 Rest of Europe Others 5,7 % 1,8 % USA and Canada 4,1 % Norway 17,0 % EU Asia Pacific 61,5 % 9,8 %
Slide 29: Sales per product Q3 2006
Lerøy Seafood Group - Sales per product Q3 2006 Salmontrout 9,1 % S hellfish Other/other species 4,6 % 4,2 % Pelagic fish 1,8 % White fish Whole salmon 10,4 % 48,8 % Processed salmon 21,0 %
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: Lerøy Seafood Group – salmon/trout farming
Lerøy Seafood Group – salmon/trout farming Company Ownership Licences Mill. smolt V olume gwt 2006E V olume gwt 2007E share individuals Total LSG share Total LSG share Lerøy Midnor AS 100 % 28 7,0 27 000 27 000 27 000 27 000 Lerøy Aurora AS 100 % 16 3,5 13 000 13 000 15 000 15 000 Lerøy Fossen AS* 1
Slide 35: Key Figures Production Q3 2006
Key Figures Production Q3 2006 Lerøy Lerøy Lerøy Lerøy Total Figures MNOK Midnor Hydrotech 1) Aurora Fossen 2) Others Harvested Revenues 222,0 69,7 80,2 54,1 109,2 535,2 EBIT before biom.adj. 105,8 24,0 32,2 19,8 2,6 184,4 EBIT 86,8 20,2 56,7 19,8 2,6 186,1 Volumes (gwtt) 7,0 5,7 2,7 1,2 - 16,6 1) I
Slide 36: Key Figures Production YTD Q3 2006
Key Figures Production YTD Q3 2006 Lerøy Lerøy Lerøy Lerøy Total Figures MNOK Midnor Hydrotech 1) Aurora Fossen 2) Others Harvested Revenues 594,8 69,7 288,9 112,6 224,1 1 290,1 EBIT before biom.adj. 266,9 24,0 102,0 29,4 9,6 431,9 EBIT 318,5 20,2 114,3 29,4 9,6 492,0 Volumes (gwtt) 18,0 11,0 9,9 3,
Slide 37: Norskott Havbruk
Norskott Havbruk NOKm Q3 - 2006 Q3 - 2005 YTD 2006 YTD 2005 2005 Revenues 193 185 561 543 775 EBITDA 62 36 141 93 136 EBIT bef adj biom 56 30 122 74 110 EBIT 104 48 165 75 114 Pre tax 100 43 152 55 90 Volumes (gwtt) 5,3 5,2 13,1 15,2 20,7 Balance sheet 30.09.2006 30.09.2005 31.12.2005 Licences, Good
Slide 38: Lerøy Hydrotech AS
Lerøy Hydrotech AS NOKm Q3 - 2006 Q3 - 2005 YTD 2006 YTD 2005 2005 Revenues 223 119 443 261 374 EBITDA 87 39 93 80 118 EBIT bef adj biom 82 34 165 66 99 EBIT 99 34 188 69 102 Pre tax 95 31 180 62 96 Volumes (gwtt) 5,7 3,5 11,0 8,8 12,4 Balance sheet 30.09.2006 30.09.2005 31.12.2005 Licences, Goodwil
Slide 39: Agenda
Agenda 1.5 Market glance
Slide 40: Fresh Atlantic Salmon Norway (4-5 kgs)
0,00 5,00 10,00 15,00 20,00 25,00 30,00 35,00 40,00 45,00 50,00 NOK / Kg 1997-1 1997-11 Source: FHL/NSL 1997-21 Figures per 26.10.06 1997-31 1997-41 1997-51 1998-9 1998-19 1998-29 1998-39 1998-49 1999-6 1999-16 1999-26 1999-36 1999-46 2000-4 2000-14 2000-24 2000-34 2000-44 2001-2 2001-12 2001-22 200
Slide 41: Salmon export from Norway as of week 43-2006
Oslo Salmon export from Norway as of week 43-2006 Fresh atlantic salmon, cross-section, FCA Av. Q3-05 NOK 26,86 Av. Q3-06 NOK 34,44 Up by 28,2 %. NOK / kg Av. YTD 06 NOK 33,45 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 Q2-06 Q3-06 A.18,
Slide 42: Market development for Atlantic Salmon from Norway
Market development for Atlantic Salmon from Norway Jan-Sep 2005 vs Jan-Sep 2006 Volume 2005 Volume 2006 Change Value 2005 Value 2006 Change EU 281 462 299 213 6% 6 823 697 9 214 946 35 % Others 30 460 37 896 24 % 771 766 1 227 588 59 % Japan 21 324 18 433 -14 % 548 990 600 531 9% Russia 34 226 23 85
Slide 43: Atlantic salmon – supply
Atlantic salmon – supply In tonnes 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% 600 400 5% 635 800 6% United Kingdom 149 800 -8 % 119 700 -20 % 127 800 7% 140 100 10 % Faroe Islands 36 800 -22 % 17 200 -53 % 9 800 -43 % 17 200 76 %
Slide 44: Harvest quantities Atlantic Salmon World Wide
Harvest quantities Atlantic Salmon World Wide Volumes in tons Yearly change in % 1 800 000 16 +8 % 1 600 000 14 +10 % +3 % 1 400 000 +5% +4 % 12 +8% 1 200 000 +7% +13% 10 1 000 000 +11% +16% 8 800 000 6 600 000 4 400 000 200 000 2 0 0 1998 1999 2000 2001 2002 2003 2004 2005E 2006E 2007E 2008E Harves
Slide 45: Drivers Salmon per 30.09.2006
Drivers Salmon per 30.09.2006 • Norway total export volume of Atlantic Salmon (387.415 mt) +4% • Norway – EU (volume Atlantic Salmon) (299.213 mt) +6% • Norway – EU (value Atlantic Salmon) (9.215 MNOK) + 35 % • Sales of fish-feed in Norway (569.200 mt, as per August) + 7% Figures per 26.10.06 Source
Slide 46: Thank you !
Thank you !