Leroy Seafood Group ASA · OSL:LSG
Leroy Seafood Group ASA — Lerøy Seafood Group — Q2 2009 Earnings Presentation
38 slides from Leroy Seafood Group ASA's earnings presentation, Aug 19, 2009
Slide 1: Lerøy Seafood Group Quarterly report Second quarter 2009
Lerøy Seafood Group Quarterly report Second quarter 2009 August 19th 2009 Helge Singelstad CEO Ivan Vindheim CFO 1
Slide 2: Agenda
Agenda 1 1. Considerations 2. 2 Key financial figures Q2 2009 3. 3 Lerøy at a glance 4. 4 Market glance 2
Slide 3: Internal considerations Q2 2009
Internal considerations Q2 2009 All figures in NOK mill Q2 - 09 Q2 - 08 Change H1 - 09 H1 - 08 Change 2008 Turnover 1 823 1 515 20 % 3 344 2 832 18 % 6 057 EBITDA 270 101 167 % 462 217 113 % 534 EBIT bef adj biom 222 52 329 % 363 120 203 % 337 PTP bef adj biom*) 219 19 1053 % 343 63 444 % 201 *) PTP
Slide 4: Internal considerations Q2 2009
Internal considerations Q2 2009 • Production • In total, volumes in line with 2009E and seasonality • Development in operations satisfactory, however potential • Lerøy Vest continues to develop well • Biology better • However, still high RFS-value due to previous biological issues • In general, lowe
Slide 5: Internal considerations Q2 2009 cont'd
Internal considerations Q2 2009 cont’d Sales and distribution • Another very good quarter • High volumes • Economies of scale Affiliated companies • Satisfactory biological performance • Lower production costs and higher prices (Norskott/Scottish Sea Farms) • Satisfactory performance in H2 09 expect
Slide 6: External considerations Q2 2009
External considerations Q2 2009 • Demand and supply • Spot prices significantly up • 24.4%, Q2 09 versus Q1 09 • 40.3%, Q2 09 versus Q2 08 • Export prices • 17.1% Q2 09 versus Q1 09 • 29.1% Q2 09 versus Q2 08 • Supply growth from Norway as expected • 8.2% in Q2 09 versus 5.8% in Q1 09 (volume) • 7.0
Slide 7: Agenda
Agenda 1. 1 Considerations 2. 2 Key financial figures Q2 2009 3. 3 Lerøy at a glance 4. 4 Market glance 7
Slide 8: Income Statement Q2 2009
Income Statement Q2 2009 All figures in NOK 000 8
Slide 9: Balance Sheet Q2 2009
Balance Sheet Q2 2009 All figures in NOK 000 9
Slide 10: Cash Flow Statement Q2 2009
Cash Flow Statement Q2 2009 All figures in NOK 000 10
Slide 11: Key figures - Lerøy Seafood Group Q2 2009
Key figures - Lerøy Seafood Group Q2 2009 1) Resultatmargin = Resultat før skatt / salgsinntekter Profit margin = Profit before tax / revenues 2) Driftsmargin = Driftsresultat / salgsinntekter Operating margin = Operating profit / revenues 3) Resultat per aksje = Majoritetens andel resultat / Gjenno
Slide 12: Funding
Funding • Sound debt repayment profile • Bank loans and no “balloons” NOK million 2009 2010 2011 2012 2013 Instalments 217 249 230 215 214 • Covenants NIBD/EBITDA < 5 and Equity ratio*) > 30% • Q2 2009, 2.5 and 56.0% respectively • Satisfactory committed unused credit lines • Lower capex going forwa
Slide 13: Agenda
Agenda 1.1 Considerations 2.2 Key financial figures Q2 2009 3.3 Lerøy at a glance 4.4 Market glance 13
Slide 14: 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 Chile 14
Slide 15: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA Sales & Distribution Production Affiliated Hallvard Lerøy AS Lerøy West Norskott Havbruk AS** 100% 100% 50% Lerøy Sverige AB Lerøy Mid-Norway Alfarm Alarko Lerøy*** 100% 100% 50% Nordvik SA Lerøy North 90% 100% Portnor Lda Lerøy Fossen AS = Salmon farming, processing 60% 100%
Slide 16: 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 and USA) • 11.0% share of Norwegian seafood
Slide 17: Lerøy Seafood Group
Lerøy Seafood Group • Fully integrated • From roe to the plate • Competent employees • Decentralized farming units • Autonomous units in three regions • In addition, the affiliated company Scottish Sea Farms in Scotland • Processing plants • Smokehouses • Fillets, portions etc • Post / pre-rigor • C
Slide 18: Lerøy Seafood Group
Lerøy Seafood Group • Market strategy: • Quality • Presence in major seafood markets • Branding • Diversity in product range • Diversity in customer base • Market-oriented solutions • Geographical spread • Continuity in deliveries • Cost efficiency 18
Slide 19: Lerøy Seafood Group - Sales per market Q2 09
Lerøy Seafood Group - Sales per market Q2 09 Rest of Europe Others USA and Canada 4,5 % 1,9 % 8,6 % Norway 16,7 % EU 56,6 % Asia Pacific 11,6 % 19
Slide 20: Lerøy Seafood Group - Sales per product Q2 09
Lerøy Seafood Group - Sales per product Q2 09 Salmontrout Others Shellfish 6,2 % Pelagic fish 4,3 % 3,5 % 1,5 % White fish Whole salmon 9,3 % 45,6 % Processed salmon 29,6 % 20
Slide 21: Farming Norway
Farming Norway • Lerøy Aurora AS (salmon) • Sigerfjord Aqua AS (Arctic char) • Lerøy Midnor AS (salmon) • Lerøy Hydrotech AS (salmon) • Lerøy Vest AS (salmon and trout) 21
Slide 22: Lerøy Seafood Group – Salmon/trout farming
Lerøy Seafood Group – Salmon/trout farming Company Ownership Licences Mill. smolt 2007 2008 2009E share No individuals GWT GWT GWT Lerøy Midnor AS 100 % 30 9,5 29 200 29 100 35 000 Lerøy Aurora AS 100 % 17 5,0 17 100 17 200 20 500 Lerøy Hydrotech AS 100 % 24 7,0 20 100 23 000 22 000 Lerøy Vest AS*)
Slide 23: Lerøy Seafood Group – Salmon/trout farming
Lerøy Seafood Group – Salmon/trout farming Company Ownership Volume Volume Share Rest Share share 2009E YTD Q2 % 2009E % Lerøy Midnor AS 100 % 35 000 15 200 43 % 19 800 57 % Lerøy Aurora AS 100 % 20 500 8 300 40 % 12 200 60 % Lerøy Hydrotech AS 100 % 22 000 6 600 30 % 15 400 70 % Lerøy Vest AS*) 100
Slide 24: Key Figures Production Q2 2009
Key Figures Production Q2 2009 *) *) **) Lerøy Others / Total Total Figures NOKm Lerøy Midnor Hydrotech Lerøy Aurora Lerøy Vest elimination Q2 2009 Q2 2008 Revenues 204,5 146,6 118,3 274,2 124,7 868,3 749,3 EBIT before biom.adj 59,4 24,6 28,9 55,6 6,6 175,0 30,3 EBIT 101,5 73,6 40,4 117,4 6,6 339,5
Slide 25: Key Figures Production YTD Q2 2009
Key Figures Production YTD Q2 2009 *) *) **) Lerøy Others / Total Total Figures NOKm Lerøy Midnor Hydrotech Lerøy Aurora Lerøy Vest elimination YTD Q2 09 YTD Q2 08 Revenues 475,4 215,1 250,6 435,1 211,5 1 587,8 1 296,9 EBIT before biom.adj 126,9 28,8 55,7 76,3 6,5 294,2 95,1 EBIT 131,7 94,2 60,3 140
Slide 26: Key Figures Sales & Distribution Q2 2009
Key Figures Sales & Distribution Q2 2009 Sales & Total Total Figures NOKm Distribution Elimination Q2 2009 Q2 2008 Revenues 1 942,9 -134,0 1 808,9 1 484,5 EBIT before biom.adj 52,2 0,2 52,4 32,1 EBIT 52,2 0,2 52,4 32,1 26
Slide 27: Key Figures Sales & Distribution YTD Q2 2009
Key Figures Sales & Distribution YTD Q2 2009 Sales & Total Total Figures NOKm Distribution Elimination YTD Q2 2009 YTD Q2 2008 Revenues 3 577,7 -302,0 3 275,7 2 761,4 EBIT before biom.adj 81,9 0,4 82,3 40,4 EBIT 81,9 0,4 82,3 40,4 • Very good performance • High volumes • Economies of scale 27
Slide 28: Norskott Havbruk
Norskott Havbruk LSG’s share = 50% NOKm Q2 2009 Q2 2008 YTD 2009 YTD 2008 2008 Revenues 202 167 387 362 772 EBITDA 54 26 96 59 94 EBIT bef adj biom 42 17 75 39 58 EBIT 64 15 114 30 56 Pre tax 61 8 108 17 31 Volumes (gwt) 5,5 5,0 11,3 11,2 22,8 EBIT/kg 7,7 3,4 6,6 3,5 2,5 Balance sheet 30.06.2009 30.
Slide 29: Agenda
Agenda 1.1 Considerations 2.2 Key financial figures Q2 2009 3.3 Lerøy at a glance 4.4 Market glance 29
Slide 30: NOK/kg FCA Oslo 4-5kg
NOK/kg FCA Oslo 4-5kg 10 15 20 25 30 35 40 45 50 1997-1 1997-10 1997-19 1997-28 1997-37 1997-46 1998-3 Figures as per 12.08.09 Source: FHL/NSL/NOS 1998-12 1998-21 1998-30 1998-39 1998-48 1999-4 1999-13 1999-22 1999-31 1999-40 1999-49 2000-6 2000-15 2000-24 2000-33 2000-42 2000-51 2001-8 2001-17 2001
Slide 31: SPOT prices, fresh Atlantic salmon, FCA Oslo, week 32-2009
Avrg Q2 09 NOK 35.10 vs avrg Q2 08 NOK 25.02 (+40.3%) SPOT prices, fresh Atlantic salmon, cross-section, Avrg H1 09 NOK 31.66 vs avrg H1 08 NOK FCA Oslo, as of week 32-2009. 24.98 (H1 07 NOK 26.23) Avrg 08 NOK 25.75, avrg 07 NOK 24.97 NOK / kg Oslo 46,00 44,00 42,00 40,00 38,00 36,00 34,00 32,00 30,
Slide 32: Market development for Atlantic Salmon from Norway Jan-June
Market development for Atlantic Salmon from Norway Jan-June 2008 vs Jan-June 2009 Volume 2008 Volume 2009 Change Value 2008 Value 2009 Change EU 250 657 265 930 6,1 % 6 086 581 7 641 163 25,5 % Others 45 583 41 521 -8,9 % 1 041 687 1 211 239 16,3 % Japan 12 692 13 665 7,7 % 356 741 460 276 29,0 % Ru
Slide 33: Market development for Atlantic Salmon from Norway Jan-June
Market development for Atlantic Salmon from Norway Jan-June 2008 vs Jan-June 2009 "Others" Volume 2008 Volume 2009 Change Value 2008 Value 2009 Change Ukraine 9 759 5 412 -44,5 % 136 286 105 818 -22,4 % Hongkong 6 431 7 273 13,1 % 164 234 225 043 37,0 % China 4 346 4 457 2,6 % 101 588 134 049 32,0 %
Slide 34: Market development for Atlantic Salmon from Norway Jan-July
Market development for Atlantic Salmon from Norway. Jan-July 2008 vs Jan-July 2009 Volume 2008 Volume 2009 Change Value 2008 Value 2009 Change EU 291 135 312 167 7,2 % 7 144 850 9 148 414 28,0 % Others 52 875 48 719 -7,9 % 1 222 201 1 457 748 19,3 % Japan 14 177 15 723 10,9 % 400 179 534 866 33,7 %
Slide 35: Atlantic salmon – Supply
Atlantic salmon – Supply in tons WFE Figures as per 12.08.09 Source: Kontali / Lerøy 35
Slide 36: Drivers Salmon as per 31.07.2009
Drivers Salmon as per 31.07.2009 Norway total export volume of Atlantic Salmon (431,292 MT WFE) + 8.6 % Norway total export value of Atlantic Salmon (NOK12,769m) + 31.2 % Norway – EU (volume Atlantic Salmon) (312,167 MT WFE) + 7.2 % Norway – EU (value Atlantic Salmon) (NOK9,148m) + 28.0 % Norway – R
Slide 37: Going forward!
Going forward! •Satisfactory financing •Lower capex •Operational improvements •Good demand for seafood •Improved profitability •Continued consolidations •Create sustainable shareholder value • Annual dividend since 1995 • Share liquidity • AUSS sold shares in Q2 09 • Share price 37
Slide 38: Thank you!
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