Austevoll Seafood Asa · OSL:AUSS
Austevoll Seafood Asa — Q1 2017 Earnings Presentation
39 slides from Austevoll Seafood Asa's earnings presentation, 2017
Slide 1: Q1 2017 Financial presentation
Q1 2017 Financial presentation Arne Møgster – CEO Britt Kathrine Drivenes – CFO
Slide 2: Highlights
Highlights All figures in NOK 1,000 Q1 2017 Q1 2016 2016 Revenue 6 074 954 4 412 239 18 911 523 Other highlights • Proposed dividend per share EBITDA 1 555 345 885 744 3 880 831 NOK 2.50 EBIT* 1 330 883 695 991 2 912 911 Pre-tax profit* 1 401 017 723 680 3 085 193 EPS (NOK)* 2,95 1,43 5,05 Total ass
Slide 3: Operation overview
Operation overview PERU CHILE NORTH ATLANTIC AUSTEVOLL SEAFOOD GROUP 7% of anchovy quota 9.1% of pelagic fishing 5 fishing vessels PELAGIC 400,000 - 500,000 MT of pelagic fish caught FISHING centre-north quota annually (28 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: Operation in Peru
Operation in Peru Southern Oscillation Index • Indicator of El Niño (<-7) La Niña and La Niña (>+7) • Environmental conditions remain stable Apr 2016 Apri Neutral 2017 • Imarpe cruise detected a predominance of warm surface oceanographic conditions but normalizing El Niño rapidly Apr 2015 Source: Au
Slide 6: Biomass and quota evolution
Biomass and quota evolution Peruvian Anchoveta 14 60% Quota (MILLIONS MT) Biomass (MILLIONS of MT) Volatile period due to El Utilization Biomass rate (MILLIONS of MT) Niño 12 50% 10 40% MILLIONS OF MT 8 30% 6 20% 4 10% 2 0% 0 -10% • Highest first season since 2011. Combined with 2nd season 2016 sugg
Slide 7: Operation in Peru
Operation in Peru Austral Group S.A.A Q1 2017 Q1 2016 2017 E 2016 Volume '000 MT Own catch: Anchoveta 48 18 357 190 • Centre/ North Mackerel 9 - 15 12 Remaining quota from 2nd season 2016 caught in Jan 2017 Purchase: Anchoveta 9 18 119 76 o Majority of fishmeal from 2 nd season 2016 production sol
Slide 8: Operation in Chile
Operation in Chile Foodcorp Chile S.A • Jack mackerel: Volume '000 MT Q1 2017 Q1 2016 2017 E 2016 Own catch: o Foodcorp quota for 2017 21,650 MT vs. 20,240 MT in 2016 Mackerel and other species 8 7 33 27 o Catches in 2017 started in March Purchase: Sardine/anchovy 24 5 32 18 o Purchased 10,000 tonne
Slide 9: North Atlantic pelagic quotas
North Atlantic pelagic quotas (2007-2017E) 5 000 000 Key drivers in 2017 4 500 000 • Increased quota for : 4 000 000 o Sand eel o Icelandic capelin 3 500 000 o Blue whiting 3 000 000 o NVG herring o Mackerel 2 500 000 2 000 000 • Highest pelagic quota allocated in 10 years 1 500 000 1 000 000 500 00
Slide 10: Br. Birkeland AS
Br. Birkeland AS Salmon Q1 2017 Q1 2016 2016 Harvest volume (GWT) 1,117 1,717 8,093 EBIT (NOK/kg) 24.4 29.3 26.9 Lower contribution from both fishing and salmon activities in Q1 2017 vs. Q1 2016 Farming • 7 salmon licenses in Norway Fleet • 5 fishing vessels in operation in Norway o Seasonal high ac
Slide 11: Pelagia AS
Pelagia AS Fishmeal and fish oil (FMO) Norway, UK and Ireland ('000 MT) Q1 2017 Q1 2016 2017 E 2016 Raw material for fishmeal and fish oil 235 210 659 575 Raw material for protein concentrate/oil 60 84 232 264 Total ('000 MT) 295 294 891 839 All volume based on 100% • Raw material volumes higher tha
Slide 12: Pelagia AS
Pelagia AS Direct Human Consumption Volume ('000 MT) Q1 2017 Q1 2016 2017E 2016 Raw material intake 105 104 405 330 • Quantities of raw material for Q1 is in line with same quarter last year o Less herring caught in Q1 2017. This loss in volume is expected to be offset by higher activity in Q4 2017
Slide 13: Pelagia AS (100% figures)
Pelagia AS (100% figures) (MNOK) Q1 2017 Q1 2016 2016 • Main season in 1st quarter Revenue 1 372,2 1 264,9 5 758,4 • EBIT Q1 2017 includes EBITDA 163,2 126,7 628,2 non-recurring income of MNOK 20 EBIT 134,8 86,8 464,2 • Increased quotas in the Sales volumes (tonnes): North Atlantic for 2017 Frozen 6
Slide 14: Salmon
Salmon Lerøy Seafood Group ASA
Slide 15: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA Lerøy Aurora 26 licenses Q1 2017 • EBIT before FV adj. NOK 1,277 million o Havfisk & LNWS EBIT NOK 158 million • Harvest volume salmon and trout 43,307 GWT • EBIT/kg all incl. (excl. EBIT Havfisk & LNWS) of NOK 25.8 • Contract share of 32% Lerøy Midt • NIBD NOK 2,327 million
Slide 16: 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 52 200 62 000 Lerøy Sjøtroll 63 22,6 56
Slide 17: Lerøy Seafood Group ASA (Wild catch)
Lerøy Seafood Group ASA (Wild catch) • Good catches and strong prices Catch volume based on annual quotas, time of catch may vary from year to year o Catch volume 20,586 MT in Q1 2017 up 27% compared to 16,169 MT Q1 2016 o Remaining quota for 2017 about 43,000 MT, same level as end Q1/16 o Positiv
Slide 18: Financials
Financials Q1 2017
Slide 19: Catch, purchase and farming
Catch, purchase and farming (100% volumes) Figures in 1,000 tonnes Q1 2017 Q1 2016 2017 E 2016 Group companies: Norway (whitefish) 21 16 63 64 Norway (pelagic) 15 17 40 32 Chile own catch 8 7 33 27 Chile purchase 29 15 50 39 Peru own catch 57 18 372 202 Peru purchase 9 18 119 76 Total Group companie
Slide 20: Key financial figures
Key financial figures (NOK 1,000) Q1 2017 Q1 2016 Δ% Q1 2017 ** Q1 2016 ** Δ% Revenue 6 074 954 4 412 239 37,7 % 6 761 035 5 044 704 34,0 % EBITDA 1 555 345 885 744 75,6 % 1 636 967 949 109 72,5 % Depreciation/Impairment 224 462 189 753 238 702 209 728 EBIT* 1 330 883 695 991 91,2 % 1 398 265 739 38
Slide 21: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA (MNOK) Q1 2017 Q1 2016 2016 • Spot prices above last year o NOS Q1/17 NOK 65.4 vs. NOK 57.8 in Q1/16 Revenue 5 459,6 3 815,7 17 269,7 (+13%) EBITDA 1 423,5 697,4 3 355,1 o Down NOK 0.7/kg q-o-q, and up NOK 7.6/kg y-o-y EBIT* ex. Impairment 1 277,3 584,5 2 843,5 o Increase in
Slide 22: Austral Group S.A.A
Austral Group S.A.A (MNOK) Q1 2017 Q1 2016 2016 • Seasonal low activity in the quarter Revenue 434,0 421,8 1 020,5 • Remaining quota from 2nd season 2016 of EBITDA 87,5 77,8 140,1 45,500 MT of anchoveta were caught in January 2017 EBIT ex.impairment 40,2 37,6 -35,2 EBIT 41,4 39,6 -8,8 • Catch of 8,6
Slide 23: Foodcorp Chile S.A
Foodcorp Chile S.A (MNOK) Q1 2017 Q1 2016 2016 • The fishery for horse mackerel picked up in March after a slow start in January and Revenue 98,1 103,6 425,3 February EBITDA 9,8 19,5 31,1 EBIT ex.impairment 0,7 2,4 -37,8 • The market for frozen horse mackerel improved during the quarter EBIT 0,7 2,4
Slide 24: Br. Birkeland AS
Br. Birkeland AS (MNOK) Q1 2017 Q1 2016 2016 Salmon Q1 • Harvested volume (GWT): Revenue 123,8 178,5 789,7 o Q1/17 1,117 MT vs. Q1/16 1,717 MT (- 35%) EBITDA 30,4 86,8 344,5 • EBIT/kg: EBIT* 12,4 70,6 277,3 o Q1/17 NOK 24.4 vs. Q1/16 NOK 29.3 (- 17%) Pelagic Q1 * Before biomass adj. • Seasonal high
Slide 25: Statement of financial position (Group)
Statement of financial position (Group) USD/NOK: (NOK 1,000) 31.03.2017 31.03.2016 31.12.2016 • 31.03.2017: 8.58 Intangible assets 11 766 799 8 035 619 11 746 906 • 31.03.2016 8.27 • 31.12.2016: 8.62 Tangible fixed assets 6 759 414 5 399 196 6 691 064 Financial non-current assets 2 042 955 1 889 489
Slide 26: Cash flow
Cash flow (NOK 1,000) Q1 2017 Q1 2016 2016 Q1 2017 Pre tax profit 415 661 907 696 4 682 581 Strong cash performance from operating Biomass adjustment 1 021 226 -163 828 -1 549 449 activities subject to strong earnings and Paid tax -215 732 -180 515 -249 323 reduced working capital Depreciaton and im
Slide 27: Outlook
Outlook
Slide 28: Fishmeal
Fishmeal Week 16 Fishmeal production - 2017 vs 2016 (Cumulative) Production • IFFO Fishmeal production increase 88% YTD vs. Regions 2017 2016 Change % same period 2016 (Peru 230% up vs. 2016). Chile* 152 243 64 929 134 % • Good expectation for future world wild production, Peru 179 017 54 185 230 %
Slide 29: Fishmeal
Fishmeal Main market – China • Stock level: 186,680 MT as of April 27th vs. 139,530 MT same period 2016 (+34%) o Off takes: 2,300 MT/day (+5% vs. same period 2016) o Domestic production remains limited, imported FM is supporting the consumption. • Chinese prices currently higher than in Peru o Quote
Slide 30: Fish oil
Fish oil Week 16 Fish oil production - 2017 vs 2016 (cumulative) Production • IFFO Fish oil production increase 64% YTD vs. same period 2016 Regions 2017 2016 Change % • Peru up 259% vs. 2016 due to the increase in Chile* 51 269 33 737 52 % landings and better yields (over 4%) Peru 25 134 7 007 259
Slide 31: Atlantic salmon supply
Atlantic salmon supply Q1 2017 (in tonnes WFE ) 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 4,8 % 1 234 200 2,9 % 1 171 100 -5,1 % 1 194 600 2,0 % United Kingdom 159 400 3,0 % 157 800 -
Slide 32: Atlantic salmon consumption
Atlantic salmon consumption Q1 2017 300 000 30 % Salmon 250 000 20 % Market 2015 2016 2017 Growth Growth % EU 246 700 249 500 228 600 -20 900 -8 % -2 % -2 % 10 % USA 99 900 114 400 107 800 -6 600 -6 % 200 000 -8 % -6 % 0% Japan 12 400 16 400 16 100 -300 -2 % Other Markets 156 600 160 000 157 500 -2
Slide 33: Conclusion
Conclusion Salmon • Strong salmon prices in Q1 • Still high cost related to sea lice treatments • Limited growth in global salmon supply combined with strong demand, gives a strong outlook for the coming years • Expecting a substantially lower harvest volume in Q2 vs Q1/17 and Q2/16 • Full year volu
Slide 34: Conclusion
Conclusion Pelagic South America • Seasonal low activity in the quarter o Austral finalised the 2nd season 2016 quota in January (45,500 MT) o Slow start in Chile, but the fishery picked up in March • 1st season quota for anchoveta in Peru set at 2.8 million tonnes o Started April 22nd • Environment
Slide 35: Austevoll Seafood ASA
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
Appendix
Slide 38: Associated companies
Associated companies Pelagia AS (100% figures) AUSS`s share = 50% (MNOK) Q1 2017 Q1 2016 2016 Revenue 1 372 1 265 5 758 EBITDA 163 127 628 EBIT 135 87 464 Net interest bearing debt 2 067 1 692 1 844 38 www.auss.no Austevoll Seafood ASA
Slide 39: Associated companies
Associated companies Norskott Havbruk AS (100% figures) LSG’s share = 50% (MNOK) Q1 2017 Q1 2016 2016 Revenue 372 422 1 721 EBITDA 161 103 554 EBIT* 143 81 474 Volumes (gwt) 5 918 6 981 28 043 EBIT/kg* (NOK) 24,2 11,6 16,9 Net interest bearing debt 310 386 267 * Before biomass adj. 39 www.auss.no Au