Leroy Seafood Group ASA · OSL:LSG

Leroy Seafood Group ASA — Lerøy Seafood Group — Q2 2003 Earnings Presentation

41 slides from Leroy Seafood Group ASA's earnings presentation, Aug 28, 2003

  1. Slide 1: Lerøy Seafood Group 2nd quarterly report 2003

    Lerøy Seafood Group • 2nd quarterly report 2003 • August 28th • Ole-Eirik Lerøy • CEO • Helge Singelstad • CFO

  2. Slide 2: Agenda

    Agenda 1. 1 Considerations 2. 2 Key financial figures Q2 2003 3. 3 Lerøy at a glance 4. 4 Lerøy Seafood Group – Company profile 5. 5 Market glance

  3. Slide 3: Internal considerations 2nd Quarter 2003

    Internal considerations 2nd Quarter 2003 • Financially Solid • Well positioned for future organic and strategic growth • 1.523 shareholders per 25.08.03 • Increasing number of shareholders • Other shares • Write-down NOK 11,0 mill, book value shares in Hjaltland Seafarms AS equals 0 • Consolidated •

  4. Slide 4: External considerations 2nd Quarter 2003

    External considerations 2nd Quarter 2003 • Weak salmon and trout prices • Prices weakened through Q2 – also compared to last year • Prices in Q3 on an historically low level • Higher prices needed • Uncertainty in price development • Still difficult market situation in both pelagic and white fish se

  5. Slide 5: Aqua culture

    Aqua culture • Cyclic • Growing demand • Over supply • Loss position • Reduced supply • Market orientation • Increased prices

  6. Slide 6: Aqua culture

    Aqua culture • Changes • Reorganization • Consolidation • Restructuration • Market orientation

  7. Slide 7: Agenda

    Agenda 1. 1 Considerations 2. 2 Key financial figures Q2 2003 3. 3 Lerøy at a glance 4. 4 Lerøy Seafood Group – Company profile 5. 5 Market glance

  8. Slide 8: Yearly turnover LSG

    Yearly turnover LSG mill. NOK 3000 2500 2000 1500 1000 500 0 1980 1985 1990 1995 1999 2000 2001 2002

  9. Slide 9: Pre-tax earnings LSG

    Pre-tax earnings LSG mill. NOK 60 50 40 30 20 10 0 1994 1995 1996 1997 1998 1999 2000 2001 2002

  10. Slide 10: Quarterly turnover LSG

    Quarterly turnover LSG mill. NOK 700000 600000 500000 400000 2001 300000 2002 2003 200000 100000 0 1. kvt. 2. kvt. 3. kvt.

  11. Slide 11: Resultatregnskap / Income Statement Q2-03

    Resultatregnskap / Income Statement Q2-03 Alle tall i NOK 1.000 / All figures in NOK 1,000 Q2 - 2003 Q2 - 2002 YTD 2003 YTD 2002 2 002 Salgsinntekter / Operating revenues 678 442 581 649 1 280 101 1 160 306 2 555 606 Vareforbruk / Cost of goods sold 606 011 534 892 1 143 172 1 060 159 2 326 928 Lønn

  12. Slide 12: Balanse / Balance Sheet Q2-03

    Balanse / Balance Sheet Q2-03 Alle tall i NOK 1.000 / All figures in NOK 1,000 30.06.2003 30.06.02 31.12.2002 Immaterielle eiendeler / Intangible assets 32 060 15 241 23 700 Varige driftsmidler / Tangible fixed assets 68 366 45 352 66 714 Finansielle anleggsmidler / Fin. fixed assets 273 116 304 560

  13. Slide 13: Balanse / Balance Sheet Q2-03 cont.

    Balanse / Balance Sheet Q2-03 forts./cont. Alle tall i NOK 1.000 / All figures in NOK 1,000 30.06.2003 30.06.02 31.12.2002 Innskutt egenkapital / Equity contributions 505 288 507 409 505 342 Opptjent egenkapital / Earned equity 121 825 119 863 113 130 Minoritetsinteresser / Minority interests 10 612

  14. Slide 14: Key figures Q2-03

    Key figures – Lerøy Seafood Group Q2-03 Q2 2003 Q2 2002 YTD 2003 YTD 2002 2 002 Resultatmargin / Profit margin 1,26 % 1,28 % 1,53 % 1,57 % 1,57 % Driftsmargin / Operating margin 3,50 % 1,73 % 3,20 % 2,26 % 2,15 % Resultat per aksje / Earnings per share 0,17 0,22 0,37 0,58 1,13 Utv res per aksje / Di

  15. Slide 15: Key figures Q2-03

    Key figures – Lerøy Seafood Group Q2-03 Q2 - 2003 Q2 - 2002 YTD 2003 YTD 2002 2 002 Avk. på syssels kapital / ROCE 2) 7,08 % 9,66 % 7,63 % 11,34 % 8,75 % Egenkapitalandel / Equity ratio 58,58 % 60,71 % 53,50 % Netto renteb gjeld / Net int. bearing debt - - - 2) Annualisert / Annualized Delårstall er

  16. Slide 16: Lerøy Seafood Group consolidated Q2 2003

    Lerøy Seafood Group consolidated Q2 2003 • Lerøy Seafood Group’s total equity is 637,7 mill NOK • Subsidiarie’s share of group equity is 262,3 mill NOK • Operating profit for YTD 2003 is 41,0 mill NOK

  17. Slide 17: Affiliated companies

    Affiliated companies Balance at 30.06.03 31.03.03 31.12.02 Norskott Havbruk AS (50%) 152,8 mill 152,4 mill 153,0 mill Hydrotech Gruppen AS (39%) 94,1 mill 98,3 mill 104,0 mill Egersund Fisk AS (27%) 21,4 mill 21,7 mill 22,0 mill Total 268,3 mill 272,4 mill 279,0 mill Lerøy Seafood Group’s total equi

  18. Slide 18: Agenda

    Agenda 1. 1 Considerations 2. 2 Key financial figures Q2 2003 3. 3 Lerøy at a glance 4. 4 Lerøy Seafood Group – Company profile 5. 5 Market glance

  19. Slide 19: Lerøy Seafood Group

    Lerøy Seafood Group • Norway’s largest seafood exporter • 7,63% market share of Norwegian Seafood total exports (by value) • 12% of Norwegian salmon export in 2002 • Major shareholder in fish farming operations • 2nd largest Scottish salmon producer (50%) • Hydrotech-Gruppen AS (39%) • Japan single

  20. Slide 20: Lerøy Seafood Group

    Lerøy Seafood Group • Global distribution network • Global distribution from Head Office in Bergen • Local distribution and processing in Sweden • Local representative offices in some key markets (France, Spain, Italy, Japan, China, USA)

  21. Slide 21: Lerøy Seafood Group

    Lerøy Seafood Group • Steady growth in profits and strong balance sheet • Stable earnings despite turbulence in the salmon industry • Growth potential within recently acquired businesses • Satisfactory liquidity / credit facilities • Professional and highly educated employees

  22. Slide 22: Agenda

    Agenda 1. 1 Considerations 2. 2 Key financial figures Q2 2003 3. 3 Lerøy at a glance 4. 4 Lerøy Seafood Group – Company profile 5. 5 Market glance

  23. Slide 23: Lerøy Seafood Group ASA Sales & Distribution

    Lerøy Seafood Group ASA Sales Sales&&Distribution Distribution Farming/other Farming/other Affiliated companies Norskott Norskott Lerøy Havbruk HavbrukAS LerøySmøgen Smøgen Lerøy Lerøy Nordvik AS Seafood Hallvard HallvardLerøy LerøyAS AS NordvikSA SA 50% SeafoodABAB Sverige SverigeAB AB 100% 80% 50%

  24. Slide 24: LSG - Consolidated

    LSG - Consolidated PELAGIC WHITEFISH FARMED FISH HALLVARD LERØY AS SALES - MARKETING DISTRIB. FRANCE DISTRIBUTION Nordvik DIRECT NORWAY EXPORT DISTRIBUTION UK DISTRIBUTION SSF / LERØY Lerøy Sweden Lerøy Lerøy Lerøy France Italy PROCESSING Spain Lerøy Sweden Lerøy Lerøy China Japan PROCESSING NORWAY

  25. Slide 25: Sales per market

    Lerøy Seafood Group - Sales per market YTD - 03 Others Norway 1,2 % USA and Canada 8,1 % 8,3 % 2002 Others Norway 0,8 % Asia Pacific USA and Canada 8,5 % 17,9 % Europe 7,2 % 58,4 % Asia Pacific Eastern Europe Europe 18,6 % 6,1 % 55,1 % Eastern Europe 9,8 %

  26. Slide 26: Sales per product

    Lerøy Seafood Group - Sales per product YTD - 03 Shellfish Pelagic fish 5,3 % er/other species 4,6 % 2002 6,7 % Shellfish Salmontrout Whole salmon Salmontrout 4,1 % 6,3 % 40,4 % 7,0 % Other/other species 4,1 % Whole salmon Pelagic fish 38,5 % Whitefish 10,9 % 13,6 % White fish Processed salmon 14,8

  27. Slide 27: Shareholders 22.08.03

    Shareholders 22.08.03 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. 1 490 900 5,06 % Skagen Vekst 1 300 600 4,42 % SND Invest AS 1 296 118 4,40 % Knut Hallvard Lerøy 1 253 210 4,26 % Tine Pensjonskasse 1 095 300 3

  28. Slide 28: Global organization

    Lerøy Seafood Group - Global organization Norway Sweden Farming Dist. & Sales Scotland/Shetland Dist. & Sales Farming Dist. & Sales Japan Spain, France Dist. & Sales Dist. & Sales Italy Dist. & Sales China Dist. & Sales North America Dist. & Sales

  29. Slide 29: Norskott Havbruk (Scottish Sea Farms Ltd.)

    Norskott Havbruk (Scottish Sea Farms Ltd.) • Production capacity: 25.000 – 30.000 gwt • Volume harvested in 2002: 19.000 gwt • Est. harvest volume 2003: 22.000 – 24.000 gwt • Additional processing and sales: 8.000 gwt • 2 processing plants

  30. Slide 30: Norskott Havbruk (Scottish Sea Farms Ltd.)

    Norskott Havbruk (Scottish Sea Farms Ltd.) • SQS • Label Rouge • ISO 9002 • ISO 14 001 • Investor in people • VIBES of Scotland

  31. Slide 31: Norskott Havbruk

    Norskott Havbruk NOKm Q2 - 2003 Q2 - 2002 YTD - 2003 YTD - 2002 31.12.2002 Revenues 167,9 120,7 310,7 254,7 562,8 EBITDA 14,6 12,9 27,3 21,6 37,2 EBIT 7,2 2,2 12,7 1,6 7,9 Pre tax 0,9 -3,9 0,1 -11,7 -20,9 Volume gw (t) 9,4 8,8 19,0 Balance sheet 30.06.2003 30.06.2002 31.12.2002 Licences, Goodwill 37

  32. Slide 32: 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 • 17 wholly owned licenses • Yearly production: • Salmon and trout estimated: 15,000 gwt • Smolt production: appr. 5

  33. Slide 33: Hydrotech Gruppen

    Hydrotech Gruppen NOK Q2 - 2003 Q2 - 2002 YTD 2003 YTD 2002 31.12.2002 Revenues 101,8 66,1 186,6 127,7 349,0 EBITDA 4,3 6,4 0,5 6,6 25,7 EBIT -0,4 0,8 -8,9 -4,6 6,5 Pre tax -5,4 -5,2 -20,3 10,4* 3,7 Balance sheet 30.06.2003 30.06.2002 31.12.2002 Licences / Goodwill 140,6 138,2 141,2 Fixed assets 170

  34. Slide 34: 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

  35. Slide 35: Agenda

    Agenda 1. 1 Considerations 2. 2 Key financial figures Q2 2003 3. 3 Lerøy at a glance 4. 4 Lerøy Seafood Group – Company profile 5. 5 Market glance

  36. Slide 36: Fresh Atlantic Salmon Norway price development 1997 - YTD

    19 0 5 10 15 20 25 30 35 40 45 97 19 -1 97 19 -1 3 97 - NOK / Kg 19 2 5 97 - 19 3 7 97 -4 19 9 Source: FHL/NSL/SSB 98 19 -9 98 - 19 2 1 – price development 98 - 19 3 3 98 -4 19 5 99 19 -4 99 - 19 1 6 99 19 -2 8 99 - 19 4 0 99 - 20 5 2 00 Fresh Atlantic Salmon Norway (4-5 kgs) 20 -1 2 00 - 20 2 4 199

  37. Slide 37: Salmon export from Norway as of week 34-03

    Salmon export from Norway as of week 34-03 Fresh atlantic salmon, cross-section, FCA Oslo. w. 27 NOK / kg Oslo Q4-01 Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03 28,00 Aver. 17,24 Aver. 18,04 Aver. 21,77 Aver. 20,16 Aver. 20,76 Aver. 20,42 Aver.18,65 Aver. 16,94 26,00 24,00 22,00 20,00 18,00 16,00 14,0

  38. Slide 38: Atlantic salmon – supply side

    Atlantic salmon – supply side 02 H1 03 H1 Ch in % 02 H2 03 H2E Ch in % 2003 E Ch 02-03 E Norway 207 600 226 000 8,9 236 400 252 000 6,6 478 000 7,7 Chile 140 600 130 500 -7,2 131 000 147 500 12,6 278 000 2,4 UK 59 300 64 400 8,6 74 100 76 600 3,4 141 000 5,7 Canada 53 900 54 500 1,1 45 600 35 500 -2

  39. Slide 39: Atlantic salmon – demand side

    Atlantic salmon – demand side 02 H2 03 H2E Ch in % 2003E Ch 02-03 EU 259 400 275 100 6,1 513 000 5,0 USA 141 500 144 300 2,0 300 000 0,8 Japan 34 500 29 700 -13,9 55 000 -15,8 Others 100 200 98 400 -1,8 198 000 0,9 In total 535 600 547 500 2,2 1 066 000 1,7 Figures per 25.08.03

  40. Slide 40: Drivers per 01.08.03

    Drivers per 01.08.03 • Norway – EU (77.800 mt) + 15,4 % • Norway – Eastern Europe (fresh 15.240 mt) + 77,8 % • Norway – Eastern Europe (frozen 10.120 mt) 1,8 % • Norway - Japan (8.500 mt) - 20,2 % • Feed sales + 2,7%

  41. Slide 41: Leroy Seafood Innovation Since 1899

    LEROY |SEAFOOD INNOVATION SINCE 1899

Lerøy Seafood Group — Q2 2003 Earnings Presentation on 6ix