Austevoll Seafood Asa · OSL:AUSS
Austevoll Seafood Asa — Q1 2018 Earnings Presentation
39 slides from Austevoll Seafood Asa's earnings presentation, Sep 18, 2018
Slide 1: Q1 2018 Financial presentation
Q1 2018 Financial presentation Arne Møgster – CEO Britt Kathrine Drivenes – CFO
Slide 2: Highlights
Highlights All figures in MNOK Q1 2018 Q1 2017 2017 Q1 2018 EBITDA includes a gain of Revenue 5 753 6 075 20 799 MNOK 157 related to sale of one fishing EBITDA* 1 445 1 555 4 747 vessel with pelagic licenses (Br. EBIT* 1 217 1 331 3 827 Birkeland group) Pre-tax profit** 1 327 1 401 4 029 The Board w
Slide 3: Operation overview
Operation overview PERU CHILE NORTH ATLANTIC AUSTEVOLL SEAFOOD GROUP PELAGIC 7% of anchovy quota 8.4% of pelagic fishing 4 fishing vessels 400,000 - 500,000 MT of pelagic fish caught FISHING centre-north quota annually (27 vessels) 20 fishing vessels 3 fishing vessels PELAGIC 7 processing plants 4 p
Slide 4: Pelagic
Pelagic Austral Group S.A.A Foodcorp Chile S.A Br. Birkeland AS Pelagia AS (associated)
Slide 5: Biomass and quota evolution
Biomass and quota evolution Volatile period due to El Niño 5 www.auss.no Austevoll Seafood ASA
Slide 6: Operation in Peru
Operation in Peru Vol ume '000 MT Q1 2018 Q1 2017 2018E 2017 Austral Group S.A.A Own catch Anchoveta 42 48 393 209 Mackerel 4 8 10 9 Purchase Centre/North Anchoveta 44 8 163 75 • Centre North biomass estimated at 10.86 million MT, 19% above Mackerel 0 0 2 1 average of last 10 years summer cruises To
Slide 7: Operation in Chile
Operation in Chile Foodcorp Chile S.A Own catches: Q1 2018 Q1 2017 2017 2018E Volume '000 M T • Good start for the jack mackerel season, 120% increase in Own catch: landing vs.Q1 2017 Mackerel and other species 21 8 44 47 Purchases: Purchase: • Giant squid: This year only purchases from artisanal Sa
Slide 8: North Atlantic pelagic quotas
North Atlantic pelagic quotas (2007-2018E) MT 5 000 000 Key drivers for 2018 E 4 500 000 • Increased quota for: 4 000 000 o Capelin o Blue whiting 3 500 000 • Decrease in quota for 3 000 000 o NVG herring 2 500 000 o Mackerel o Sand eel 2 000 000 1 500 000 1 000 000 500 000 0 2007 2008 2009 2010 201
Slide 9: Pelagia AS
Pelagia AS Fishmeal and fish oil (FMO) N o rway, UK and Ireland ('000 M T ) Q1 2018 Q1 2017 2017 2018E Raw Material: Fi s hmea l a nd fi s h oi l 264 235 675 645 Protei n concentra te/oi l 87 60 284 265 Total ('000 MT) 351 295 959 910 A ll v o lum e bas ed o n 100% • Higher raw material volume vs. Q
Slide 10: Pelagia AS
Pelagia AS Direct Human Consumption Volume ('000 MT) Q1 2018 Q1 2017 2017 2018E Raw material intake 125 105 430 407 • Raw material intake better than expected Increase driven by NVG herring and capelin Barents sea capelin is a positive contribution giving good quality product • Strong sales acti
Slide 11: Pelagia AS (100% figures)
Pelagia AS (100% figures) (MNOK) Q1 2018 Q1 2017 2017 Revenue 1 462,6 1 372,0 6 122,1 EBITDA 204,6 163,0 613,9 EBIT ex. impairment 153,1 135,0 435,9 EBIT 153,1 135,0 484,8 Sales volumes (tonnes): Frozen 77 300 65 000 321 100 FM/FPC/Oil 34 100 32 800 188 200 Associated company, AUSS share = 50% Pelag
Slide 12: Br. Birkeland Group
Br. Birkeland Group Salmon Q1 2018 Q1 2017 2017 2018 E Harvest volume (GWT) 2,808 1,117 6,543 7,000 EBIT (NOK/kg) 18.9 24.4 23.3 Salmon: • Substantially higher harvest volume first quarter 2018 vs. same quarter 2017 Lower prices in Q1 2018 vs. Q1 2017 Expects zero harvesting in Q2 2018 Fishing:
Slide 13: Salmon/White Fish
Salmon/White Fish Lerøy Seafood Group ASA
Slide 14: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA Q1 2018 Lerøy Aurora • EBIT before FV adj. NOK 960 million (Q1/17: NOK 1,277 million) Havfisk & LNWS EBIT NOK 178 million (Q1/17: NOK 158 million) • Harvest volume Salmon and Trout 37,576 GWT (Q1/17: 43,307 GWT) • EBIT/kg all incl. (excl. EBIT Havfisk & LNWS) of NOK 20.8 (Q
Slide 15: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA Salmon/Trout farming 2012 2013 2014 2015 2016 2017 2018E GWT GWT GWT GWT GWT GWT GWT Lerøy Aurora AS* 20 000 24 200 26 800 29 200 30 000 39 200 37 000 Lerøy Midt AS 61 900 58 900 68 300 71 400 52 200 64 500 69 000 Lerøy Sjøtroll 71 600 61 700 63 200 57 100 68 000 54 000 60 00
Slide 16: Lerøy Seafood Group ASA (Wild catch)
Lerøy Seafood Group ASA (Wild catch) Q1 2018: Wild catch • Q1/18 harvest volume at 22,268 tonnes, up 8% y-o-y, and the highest catch volume in any quarter in history • Average prices up 11% y-o-y. Y-o-y prices for cod up 12%, haddock 20% while saithe down 1% • As it takes time to adjust prices to en
Slide 17: Financials
Financials Q1 2018
Slide 18: Catch, purchase and farming
Catch, purchase and farming (100% volumes) Figures in 1,000 tonnes Q1 2018 Q1 2017 2017 2018 E Group companies: Norway (whitefish) 22 21 67 65 Norway (pelagic) 13 15 40 40 Chile own catch 21 8 44 47 Chile purchase 18 29 59 31 Peru own catch 47 57 218 403 Peru purchase 45 9 75 165 Total Group compani
Slide 19: Key financial figures
Key financial figures (MNOK) Q1 2018 Q1 2017 Δ% Q1 2018 a) Q1 2017 a) Δ% Revenue 5 753,1 6 075,0 -5,3 % 6 484,5 6 761,0 -4,1 % EBITDA* 1 445,3 1 555,3 -7,1 % 1 547,6 1 637,0 -5,5 % Depreciation/impairment 228,1 224,5 253,8 238,7 EBIT* 1 217,2 1 330,9 -8,5 % 1 293,8 1 398,3 -7,5 % Income from associa
Slide 20: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA (MNOK) Q1 2018 Q1 2017 2017 • Spot prices below last year Revenue 5 000 5 460 18 620 o NSI Q1/18 NOK 59.5 vs. NOK 65.3 in Q1/17 (-9%) EBITDA* 1 114 1 424 4 300 o Up NOK 10/kg q-o-q, and down NOK 6/kg y-o-y EBIT* ex. impairment 960 1 277 3 717 EBIT* 960 1 277 3 717 • Trout pri
Slide 21: Austral Group S.A.A
Austral Group S.A.A (MNOK) Q1 2018 Q1 2017 2017 • A weak second season 2017 finalized in January 2018 Revenue 263 434 1 250 o Own catch 40,200 MT EBITDA 63 88 137 o Purchase from 3rd party 16,500 o Low sales volumes in Q1/18 vs. Q1/17 EBIT ex. impairment 23 40 -55 EBIT 24 41 -51 • Good activity in t
Slide 22: Foodcorp Chile S.A
Foodcorp Chile S.A (MNOK) Q1 2018 Q1 2017 2017 • Good activity in the quarter, however different mix of raw material vs. Q1/17 Revenue 166 98 508 o 17,500 MT horse mackerel Q1/18 vs. 8,000 MT Q1/17 EBITDA 55 10 79 EBIT ex. impairment 48 1 47 • Good demand for frozen products EBIT 48 1 46 • Inventory
Slide 23: Br. Birkeland AS/Br. Birkeland Farming AS
Br. Birkeland AS/Br. Birkeland Farming AS Salmon (MNOK) Q1 2018 Q1 2017 2017 • Harvested volume (GWT): o Q1/18 2,808 MT vs. Q1/17 1,117 MT Revenue 364 124 655 EBITDA* 212 30 219 • EBIT/kg: o Q1/18 NOK 18.9 vs. Q1/17 NOK 24.4 (- 23%) EBIT ex. Impairment* 189 12 128 Spot prices down 9% in Q1/18 vs.
Slide 24: Statement of financial position (Group)
Statement of financial position (Group) (MNOK) 31-Mar-18 31-Mar-17 31-Dec-17 USD/NOK: • 31.03.2018: 7.77 Intangible assets 11 461 11 767 11 698 • 31.03.2017: 8.58 Tangible fixed assets 8 032 6 759 7 563 • 31.12.2017: 8.20 Financial non-current assets 2 394 2 043 2 306 Total non-current assets 21 887
Slide 25: Cash flow
Cash flow (MNOK) Q1 2018 Q1 2017 2017 (audited) Q1 2018 Pre tax profit 2 316 416 2 200 The new trawler “Nordtind” delivered on time, Biomass adjustment -987 1 021 1 832 January 2018 (whitefish) Paid tax -263 -216 -600 Depreciaton and impairments 228 224 920 Associated companies -162 -150 -499 Intere
Slide 26: Outlook
Outlook
Slide 27: Fishmeal
Fishmeal Week 16 Fishmeal production - 2018 vs. 2017 (cumulative) Production • IFFO Fishmeal production increase 34% YTD vs. Regions same period 2017 2 018 2 017 Change % • Good expectation about future Peruvian production Chile 162 905 153 285 6,3 % Peru 352 382 179 017 96,8 % Prices • USD 1,540/MT
Slide 28: Fishmeal
Fishmeal Main market – China • Stock level: 104,060 MT as of Apr.16th vs. 160,080 MT same period 2017 (-35% down vs. 2017) o Off takes: 1,700 MT/day (-26% vs. same period 2017) o Domestic production remains limited, the Chinese government continues with strict environmental controls • Chinese prices
Slide 29: Fish oil
Fish oil W eek 16 Fish oil production - 2018 vs. 2017 (cumulative) Production • IFFO Fish oil production increased 42.3% YTD vs. same period 2017 Reg ion s 2 018 2 017 Ch an g e % • Peru is up 119.9% vs. same period 2017 Chile# 59 217 51 405 15,2 % Prices • Feed grade: USD 2,000 MT Peru 55 265 25 13
Slide 30: Atlantic salmon supply
Atlantic salmon supply (in tonnes WFE ) Change Change Change Change Change Change 2013 12-13 2014 13-14 2015 14-15 2016 15-16 2017 16-17 2018 17-18 Norway 1 143 600 -3,3 % 1 199 000 4,8 % 1 234 200 2,9 % 1 171 100 -5,1 % 1 207 800 3,1 % 1 279 300 5,9 % United Kingdom 157 800 -1,0 % 170 500 8,0 % 166
Slide 31: SPOT prices
SPOT prices fresh Atlantic salmon, cross-section, FCA Oslo as of week 17-2018 (Superior quality) 31 www.auss.no Austevoll Seafood ASA
Slide 32: Atlantic salmon consumption
Atlantic salmon consumption Q1 2018 Market 2016 2017 2018 Chng Chng % EU 247 100 226 900 241 800 14 900 7% USA 116 600 111 300 122 100 10 800 10 % Japan 16 500 15 400 14 000 -1 400 -9 % Russia 21 100 15 700 23 700 8 000 51 % Other Markets 160 900 154 600 178 300 23 700 15 % Total 562 200 523 900 579
Slide 33: Conclusion
Conclusion Salmon • Lower salmon spot prices vs. Q1 2017 (-9%) • Positive cost improvement vs. Q4 2017 • Harvest guidance for salmon and trout including associates 179,000 GWT for 2018 • Continued positive outlook White fish • Good catches in the quarter • Expected catch volume at 65,000 tonnes in 2
Slide 34: Conclusion
Conclusion Pelagic South America • Good start to first season in Peru Total quota 3.3m MT vs. 2.8m MT in 2017 • Good horse mackrel catches in Chile in Q1 2018, volumes increased with 120% vs. Q1/2017 • Recovery of the horse mackerel biomass Pelagic North Atlantic (Pelagia AS, an associated company
Slide 35: wv
wv Austevoll Seafood ASA
Slide 36: Disclaimer
Disclaimer • This Presentation has been produced by Austevoll Seafood ASA (the regulations, taxes, changes in competition and pricing environments, fluctuations “Company” or “Austevoll”) solely for use at the presentation to the market held in in currency exchange rates and interest rates and other
Slide 37: Appendix
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Slide 38: Associated companies
Associated companies Pelagia AS (100% figures) AUSS`s share = 50% (MNOK) Q1 2018 Q1 2017 2017 Revenue 1 462,6 1 372,0 6 122,1 EBITDA 204,6 163,0 613,9 EBIT ex. Impairment 153,1 135,0 435,9 EBIT 153,1 135,0 484,8 Net interest bearing debt 2 186,7 2 066,8 2 100,4 38 www.auss.no Austevoll Seafood ASA
Slide 39: Associated companies
Associated companies Norskott Havbruk AS (100% figures) LSG’s share = 50% (MNOK) Q1 2018 Q1 2017 2017 Revenue 519 372 2 088 EBITDA 183 161 752 EBIT* 173 143 669 Volumes (gwt) 6 500 5 918 30 996 EBIT/kg* (NOK) 26,7 24,2 21,6 Net interest bearing debt 166 310 181 * Before biomass adj. 39 www.auss.no A