Austevoll Seafood ASA · OSL:AUSS
Austevoll Seafood ASA — Q3 2016 Earnings Presentation
39 slides from Austevoll Seafood ASA's earnings presentation, 2016
Slide 1: Q3 2016 Financial presentation
Q3 2016 Financial presentation Arne Møgster – CEO Britt Kathrine Drivenes – CFO
Slide 2: Highlights
Highlights All figures in NOK 1,000 Q3 2016 Q3 2015 YTD Q3 2016 YTD Q3 2015 2015 Revenue 4 611 391 3 791 291 13 581 859 11 444 921 15 273 494 EBITDA 709 219 446 661 2 579 882 1 741 353 2 244 076 EBIT 496 482 255 027 1 982 067 1 208 850 1 386 436 Net profit 361 857 269 120 1 558 670 473 847 1 283 106
Slide 3: Operation overview
Operation overview PERU CHILE NORTH ATLANTIC AUSTEVOLL SEAFOOD GROUP PELAGIC 7% of anchovy quota 9.1% of pelagic fishing 5 fishing vessels 400,000 - 500,000 MT of pelagic fish caught centre-north quota annually (28 vessels) 19 fishing vessels 4 fishing vessels WHITE 11% whitefish quota (NO) 100,000-
Slide 4: Pelagic
Pelagic Austral Group S.A.A Foodcorp Chile S.A Pelagia AS (associated)
Slide 5: Operation in Peru
Operation in Peru Southern Oscillation Index • Indicator of El Niño (<-7) and La Niña (>+7) La Niña Neutral El Niño Source: Australian Government Bureau of Meteorology 5 www.auss.no Austevoll Seafood ASA
Slide 6: Operation in Peru
Operation in Peru Austral Group S.A.A Q3 2016 Q3 2015 Q3 YTD Q3 YTD 2016E* 2015 • Centre/ North '000 MT 2016 2015 Own catch: o Environmental conditions improved tending towards Neutral Anchoveta 45 3 98 190 224 248 o Substantial improvement in distribution and concentration of Mackerel 8 8 10 anchov
Slide 7: Operation in Chile
Operation in Chile Foodcorp Chile S.A Q3 Q3 YTD YTD 2016E 2015* • Jack mackerel: '000 MT 2016 2015* 2016 2015 o Own quota completed during May Own catch: o Challenging market conditions for frozen Mackerel and other species 8 21 34 28 34 Purchase: o Purchase 5,500 MT of quota from Vanuatu (October 6
Slide 8: North Atlantic pelagic quotas
North Atlantic pelagic quotas (2007-2017E) Tonnes 5 000 000 4 500 000 4 000 000 Other Pelagic* 3 500 000 Capelin** Blue Whiting 3 000 000 Mackerel 2 500 000 NS-Herring NVG-Herring 2 000 000 1 500 000 1 000 000 500 000 - Source: 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E Norges Sildesalg
Slide 9: Pelagia AS
Pelagia AS Fishmeal and fish oil (FMO) Norway, UK and Ireland ('000 MT) Q3 2016 Q3 2015 YTD 2016 YTD 2015 2016 E 2015 Raw material for fishmeal and fish oil 121 90 481 601 556 702 Raw material for protein concentrate/oil 46 44 190 166 250 244 Total ('000 MT) 167 134 671 767 807 945 All volume based
Slide 10: Pelagia AS
Pelagia AS Human Consumption Volume ('000 MT) Q3 2016 Q3 2015 YTD Q3 2016 YTD Q3 2015 2016 E 2015 Raw material intake 62 80 217 214 335 365 (incl. Sir Fish and NC Honningsvåg) • Less quantities for Q3 due to reduced mackerel quota • Main season for mackerel started mid September o Good fishing and g
Slide 11: Pelagia AS (100% figures)
Pelagia AS (100% figures) (MNOK) Q3 2016 Q3 2015 YTD Q3 2016 YTD Q3 2015 2015 Revenue 1 328,6 1 420,7 3 659,2 3 986,1 6 092,0 EBITDA 177,0 205,3 424,0 496,1 717,4 EBIT 137,8 166,4 304,4 376,1 548,4 Sales volumes (tonnes): Frozen 42 200 62 300 163 000 173 500 304 000 FM/FPC/Oil 50 400 63 400 114 400
Slide 12: Br. Birkeland AS
Br. Birkeland AS Salmon Q3 2016 Q3 2015 YTD Q3 2016 YTD Q3 2015 Harvest volume (GWT) 1,523 700 5,582 5,022 EBIT (NOK/kg) 21,10 -6,07 28,18 1,67 Farming • 7 salmon licenses in Norway Fleet • 4 fishing vessels in operation in Norway o Seasonal low activity in Q3 o The vessels have been dry-docked for
Slide 13: Salmon
Salmon Lerøy Seafood Group ASA
Slide 14: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA Lerøy Aurora 26 licenses Q3 2016 • EBIT before FV adj. NOK 481 million • EBIT/kg all inclusive NOK 15.2 • Low biomass into quarter (-10% y-o-y), gives high flexibility in quarter. • Harvest volume Q3 16 of 31,744 GWT, down 22% y-o-y Lerøy Midt 57 licenses • Contract share of
Slide 15: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA Salmon/trout farming Licences Smolt 2011 2012 2013 2014 2015 2016E 2017E cap. GWT GWT GWT GWT GWT GWT GWT Lerøy Aurora AS* 26 11,5 18 100 20 000 24 200 26 800 29 200 30 000 39 000 Lerøy Midt AS 57 22,0 62 300 61 900 58 900 68 300 71 400 53 000 59 000 Lerøy Sjøtroll 63 22,6 56
Slide 16: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA Havfisk ASA Norway Seafoods Group AS • Norway’s largest trawler company • Norway Seafoods Group AS is one of Europe’s largest – 11% of the Norwegian white fish quota processing, sales and distribution companies for white fish – Products primarily sold in large retail chains t
Slide 17: Financials
Financials Q3 2016
Slide 18: Catch and purchase
Catch and purchase (100% volumes) YTD Q3 YTD Q3 Q3 2016 Q3 2015 2016 E 2015 Figures in 1,000 tonnes 2016 2015 Group companies: Chile own catch * - 8 21 34 27 34 Chile purchase* 3 3 30 35 41 47 Peru own catch 54 3 106 190 234 248 Peru purchase 11 3 49 42 85 62 Total Group companies 68 17 206 301 387
Slide 19: Key financial figures
Key financial figures (NOK 1,000) Q3 2016 Q3 2015 Δ% Q3 2016 ** Q3 2015 ** Δ% Revenue 4 611 391 3 791 291 21,6 % 5 275 655 4 501 642 17,2 % EBITDA 709 219 446 661 58,8 % 797 735 549 308 45,2 % Depreciation/Impairment 212 737 191 634 232 333 211 106 EBIT* 496 482 255 027 94,7 % 565 402 338 202 67,2 %
Slide 20: Key financial figures
Key financial figures (NOK 1,000) YTD Q3 2016 YTD Q3 2015 Δ% YTD Q3 2016 ** YTD Q3 2015 ** Δ% Revenue 13 581 859 11 444 921 18,7 % 15 411 499 13 437 969 14,7 % EBITDA 2 579 882 1 741 353 48,2 % 2 791 887 1 989 406 40,3 % Depreciation/Impairment 597 815 532 503 657 601 592 499 EBIT* 1 982 067 1 208 8
Slide 21: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA (MNOK) Q3 2016 Q3 2015 YTD Q3 2016 YTD Q3 2015 2015 • Spot prices above last year o NOS Q3/16 NOK 59.7 vs. NOK 40.2 in Revenue 4 267,7 3 291,3 12 345,3 9 921,5 13 484,9 Q3/15 (+49%) EBITDA 612,0 365,2 2 185,0 1 336,3 1 813,9 o Down NOK 3.8/kg q-o-q, and up NOK EBIT* ex. Impai
Slide 22: Austral Group S.A.A
Austral Group S.A.A (MNOK) Q3 2016 Q3 2015 YTD Q3 2016 YTD Q3 2015 2015 • Total quota for first season 1.8 million MT vs. 2.6 million MT same season 2015 Revenue 258,3 323,4 735,1 1 020,5 1 091,2 • The season started June 18th and was EBITDA 73,4 50,1 123,1 298,9 272,6 stopped July 27th EBIT ex.impa
Slide 23: Foodcorp Chile S.A
Foodcorp Chile S.A (MNOK) Q3 2016 Q3 2015 YTD Q3 2016 YTD Q3 2015 2015 • Seasonal low activity in the quarter Revenue 90,2 140,0 344,8 347,4 490,3 • Fishing ban lifted November 1st for sardine/anchovy EBITDA -4,7 11,2 36,5 49,9 46,7 EBIT ex.impairment -21,6 -5,2 -13,6 2,6 -17,6 • Still challenging m
Slide 24: Br. Birkeland AS
Br. Birkeland AS (MNOK) Q3 2016 Q3 2015 YTD Q3 2016 YTD Q3 2015 2015 Salmon Q3 • Harvested volume (GWT): Revenue 130,9 85,4 519,8 338,3 520,4 o Q3/16 1,523 MT vs. Q3/15 700 MT EBITDA 27,4 20,1 218,9 56,4 106,4 o YTD Q3/16 5,582 MT vs. YTD Q3/15 5,022 MT EBIT* 9,1 3,3 167,6 10,7 39,3 • EBIT/kg: o Q3/
Slide 25: Balance sheet
Balance sheet (NOK 1,000) 30.09.2016 30.09.2015 31.12.2015 USD/NOK: • 30.09.2016: 8.05 Intangible assets 10 812 552 7 975 535 8 115 351 • 30.09.2015: 8.50 • 31.12.2015: 8.80 Tangible fixed assets 6 725 168 5 287 694 5 531 053 Financial non-current assets 1 779 081 1 727 237 1 861 178 Havfisk ASA and
Slide 26: Cash flow
Cash flow Q3 2016 Q3 2015 YTD Q3 2016 YTD Q3 2015 2015 (NOK 1,000) Q3 2016 Pre tax profit 457 805 331 209 2 024 593 631 075 1 572 137 Lerøy purchased 67% of Havfisk ASA and Biomass adjustment 98 552 -76 002 84 911 517 376 -246 567 73,6% of Norway Seafoods Group AS by end Paid tax -9 447 -21 144 -226
Slide 27: Outlook
Outlook
Slide 28: Fishmeal
Fishmeal Week 41 Fishmeal production - 2016 vs 2015 (Cumulative) Production • IFFO Fishmeal production down 41% YTD vs. Regions same period 2015 (Peru 54% down vs. 2015) 2016 2015 Change % Chile* 171 014 251 180 -32 % Peru 302 151 653 338 -54 % Prices • USD 1,590/MT FOB Peru for Super Prime Danmark/
Slide 29: Fishmeal
Fishmeal Main market – China • Stock level: 129,180 MT as of October 24th vs. 81,930 MT same period 2015 (up by 58%) o Off takes: 2,250 MT/day o Aqua season is almost ended, and future consumption will meet pig demand for Nov/Dec keeping the stock in China stable • Prices in China still higher than
Slide 30: Fish oil
Fish oil Week 41 Production • IFFO Fish oil production down 34% YTD vs. same Fish oil production - 2016 vs 2015 (cumulative) period 2015 (Peru 41% down vs. 2015) Regions 2016 2015 Change % Chile* 60,607 86,331 -30% Prices • USD 1,900-1,950/MT FOB Peru for feed grade Peru 45,711 78,117 -41% • USD 2,4
Slide 31: Atlantic salmon supply
Atlantic salmon supply Q3 2016 H1/16 NOK 60.79 vs. H1/15 NOK 38.81 (+56,6%) (in tonnes WFE ) Q3/16 NOK 59.72 vs. Q3/15 NOK 40.17 (+48,67 %) Change Change Change Change Change Change 2012 11-12 2013 12-13 2014 13-14 2015 14-15 2016 15-16 2017 16-17 Norway 1 183 100 17,7 % 1 143 600 -3,3 % 1 199 000 4
Slide 32: Atlantic salmon consumption
Atlantic salmon consumption Q3 2016 300 000 30 % Salmon 20 % Market 2014 2015 2016 Growth Growth % 250 000 EU 261 800 276 200 273 800 -2 400 -1 % -1 % -3 % 10 % 200 000 -4 % USA 91 600 101 800 98 500 -3 300 -3 % -11 % 0% Japan 15 200 16 300 15 600 -700 -4 % 150 000 -10 % Other Markets 155 700 163 60
Slide 33: Conclusion
Conclusion Salmon (refer to Lerøy Seafood Group’s management presentation www.leroy.no) • Strong salmon prices in Q3 • Biological challenges in central region of Norway • Limited growth in global salmon supply combined with strong demand, gives a strong outlook for the coming years Lerøy Seafood Gro
Slide 34: Conclusion
Conclusion Pelagic South America • First season ended July 27th with 50% caught nationwide • Austral caught 55% of their quota in the first season • Seasonal low activities in Q3 • Environmental conditions improved tending towards Neutral • Quota set at 2 million MT for second season 2016 North Atla
Slide 35: Thank you
Thank you
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
Appendix
Slide 38: Associated companies
Associated companies Pelagia AS (100% figures) AUSS`s share = 50% (MNOK) Q3 2016 Q3 2015 YTD Q3 2016 YTD Q3 2015 2015 Revenue 1 328,6 1 420,7 3 659,2 3 986,1 6 092,0 EBITDA 177,0 205,3 424,0 496,1 717,4 EBIT 137,8 166,4 304,4 376,1 548,4 Net interest bearing debt 1 600 1 301 1 452 38 www.auss.no Aus
Slide 39: Associated companies
Associated companies Norskott Havbruk AS (100% figures) LSG’s share = 50% (MNOK) Q3 2016 Q3 2015 YTD Q3 2016 YTD Q3 2015 2015 Revenue 512 463 1 366 1 131 1 498 EBITDA 168 57 395 173 201 EBIT* 151 36 333 116 122 Volumes (gwt) 8 148 8 588 22 284 20 733 27 032 EBIT/kg* (NOK) 18,6 4,2 15,0 5,6 4,5 Net i