Leroy Seafood Group ASA · OSL:LSG
Leroy Seafood Group ASA — Lerøy Seafood Group — FY2005 Earnings Presentation
50 slides from Leroy Seafood Group ASA's earnings presentation, Feb 24, 2006
Slide 1: Lerøy Seafood Group Preliminary financial figures 2005
Lerøy Seafood Group Preliminary financial figures 2005 February 24th 2006 Ole-Eirik Lerøy President & CEO Helge Singelstad Vice president & vice CEO
Slide 2: Agenda
Agenda 1.1 Considerations 2.2 Preliminary financial figures 2005 3.3 Lerøy at a glance 4.4 Lerøy Seafood Group – Company profile 5.5 Market glance
Slide 3: Turnover LSG Mill. NOK
Turnover LSG Mill. NOK 4000 3500 3000 2500 2000 1500 1000 500 0 1980 1985 1990 1995 1999 2000 2001 2002 2003 2004 2005
Slide 4: Operating profit Sales & Distribution
Operating profit Sales & Distribution Mill. NOK 100 90 80 70 60 50 40 30 20 10 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005P
Slide 5: Operating profit production before biomasse adjustments
Operating profit production before biomasse adjustments Mill. NOK 300 270 240 210 180 150 120 90 60 30 0 2002 2003 2004 2005P
Slide 6: ROCE (%) and PTP before biomass adjustments
ROCE (%) and PTP before biomass adjustments 30 350 300 25 250 20 200 ROCE 15 Pre tax profit 150 10 100 5 50 0 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005E
Slide 7: Return on capital employed (ROCE) before biomass adjustments
Return on capital employed (ROCE) before biomass adjustments 30 25 20 * P rosent 15 10 5 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005P * Target set before IPO 2002
Slide 8: Shareholders
Shareholders 4000 3500 3000 2500 2000 1500 1000 500 0 1997 1998 1999 2000 2001 2002 2003 2004 2005
Slide 9: Internal considerations 2005, main preliminary figures
Internal considerations 2005, main preliminary figures All figures in mill NOK Q4-05 Q4-04 Change 2005 2004 Change Turnover 1 393 979 42 % 4 014 3 559 13 % EBIT bef adj biom 105 38 176 % 274 132 108 % Operating profit 118 34 247 % 344 133 159 % Affiliated comp. 18 0 - 65 20 225 % Pre-tax profit 131
Slide 10: Internal considerations 4th Quarter 2005
Internal considerations 4th Quarter 2005 • Financially Solid • Well positioned for future organic and strategic growth • Proposed dividend NOK 1.80 per share • 3.498 shareholders as of 14. February 2006 • Consolidated business areas • Satisfactory operation in production • Considerable improvement p
Slide 11: External considerations 4th Quarter 2005
External considerations 4th Quarter 2005 • Sustainable salmon and trout prices • Prices down from Q3 05, but still strong market • Prices in Q4 05 higher than comparable figures in Q4 04 • Prices so far in Q1 06 significantly higher than prices in Q1 05 • Strong market • Currencies • Future will bri
Slide 12: Agenda
Agenda 1.2 Key financial figures 2005 2.3 Lerøy at a glance 3.4 Lerøy Seafood Group – Company profile 4.5 Market glance
Slide 13: Income Statement 2005, preliminary figures
Resultatregnskap / Income Statement 2005, premilinary figures Alle tall i NOK 1.000 / All figures in NOK 1,000 (NGAAP) (NGAAP) Q4 - 2005 Q4 - 2004 Q4 - 2004 2005 2004 2004 Salgsinntekter / Operating revenue 1 392 929 978 967 978 967 4 014 454 3 559 399 3 559 399 Vareforbruk / Cost of goods s old 1 1
Slide 14: Balance Sheet 2005, preliminary figures
Balanse / Balance Sheet 2005, preliminary figures Alle tall i NOK 1.000 / All figures in NOK 1,000 (NGAAP) 31.12.05 31.12.04 31.12.04 Immaterielle eiendeler / Intangible assets 443 908 287 237 277 887 Varige driftsmidler / Tangible fixed assets 284 832 193 139 193 139 Finansielle anleggsmidler / Fin
Slide 15: Balance Sheet 2005, preliminary figures
Balanse / Balance Sheet 2005, preliminary figures Alle tall i NOK 1.000 / All figures in NOK 1,000 (NGAAP) 31.12.05 31.12.04 31.12.04 Innskutt egenkapital / Equity contributions 855 967 656 103 656 103 Opptjent egenkapital / Earned equity 413 274 152 056 177 380 Minoritetsinteresser / Minority inter
Slide 16: Key figures – Lerøy Seafood Group 2005
Key figures – Lerøy Seafood Group 2005 Preliminary figures (NGAAP) (NGAAP) Nøkkeltall / Key figures Q4 - 2005 Q4 - 2004 Q4 - 2004 2005 2004 2004 Resultatmargin / Profit margin 9,37 % 3,16 % 3,89 % 9,74 % 3,84 % 3,30 % Driftsmargin / Operating margin 8,45 % 3,50 % 3,64 % 8,56 % 3,73 % 3,46 % Resultat
Slide 17: Lerøy Seafood Group segment information 2005
Lerøy Seafood Group segment information 2005 Book value Operating profit Sales and distribution 246 80 Production 656 278 Elimination / others 53 -14 Total 955 344 Finance -17 Affiliates 321 65 Total equity LSG group / pre tax 1 276 391
Slide 18: Lerøy Seafood Group - salmon farming
Lerøy Seafood Group - salmon farming Company Ownership Licences Million smolt Salmon volume gwt 2006E share individuals Total LSG share Lerøy Midnor AS 100 % 28 7 25 000 25 000 Lerøy Aurora AS 100 % 16 3,5 13 000 13 000 Hydrotech Gruppen AS 39 % 17 5 14 000 5 500 Total Norway 61 15,5 52 000 43 500 N
Slide 19: Affiliated companies, LSG-share profit after tax
Affiliated companies, LSG-share profit after tax Preliminary figures All figures in mill NOK Korr.vare r / Korr.vare r / Q 4 2005 Q4 2004 2005 adj.in ve n tory 2004 adj.i n ve n tory Hydrotech-Gruppen AS (39%) 10 014 75 27 052 849 2 681 0 Egersund Fisk AS (27%) 2 998 1 822 4 622 0 2 898 0 Nors kott
Slide 20: Consolidated Key figures 31.12.05
Lerøy Seafood Group Consolidated Key figures 31.12.05 • Total equity (50 %) 1.276 mill NOK • Net interest bearing debt 398 mill NOK • Total intangible assets 444 mill NOK • Licences smolt / fish farming Norway 309 mill • Goodwill / def. tax 135 mill • Total LSG-shares December 2005: 39.377.368
Slide 21: Agenda
Agenda 1.3 Lerøy at a glance 2.4 Lerøy Seafood Group – Company profile 3.5 Market glance
Slide 22: Lerøy Seafood Group
Lerøy Seafood Group • Global distribution network • Global distribution from Head Office in Bergen • Local distribution and processing in Sweden, France, Portugal and Turkey • Local representative offices in some key markets (France, Japan, China, USA)
Slide 23: Distribution network and operations map
PELAGIC WHITEFISH FARMED FISH HALLVARD LERØY AS DISTRIBUTION DISTRIBUTION FRANCE FRANCE DISTRIBUTION DISTRIBUTION NORDVIK DIRECT EXPORT NORWAY NORDVIK NORWAY DISTRIBUTION DISTRIBUTION UK UK DISTRIBUTION DISTRIBUTION SFF SFF // LERØY LERØY LER ØY SWEDEN LERØY SWEDEN LERØ LERØY LERØY LERØ LERØY LERØY
Slide 24: Sales per market 2005
Lerøy Seafood Group - Sales per market 2005 Others Norway 2,2 % 9,8 % USA and Canada 7,9 % Asia Pacific 13,1 % Western Europe 59,1 % Eastern Europe 7,8 %
Slide 25: Sales per product 2005
Lerøy Seafood Group - Sales per product 2005 Shellfish Salmontrout 4,7 % Other/other species 5,2 % 5,7 % Pelagic fish 5,4 % Whole salmon White fish 48,7 % 9,0 % Processed salmon 21,4 %
Slide 26: Lerøy Seafood Group
Lerøy Seafood Group • Norway’s largest seafood exporter in 2005 • 11,0 % share of Norwegian Seafood tot exports value • 15,4 % of Norwegian salmon export • 14,6 % of Norwegian salmon export in 2004 • 30,8 % of Norwegian value added salmon export • Major shareholder in fish farming operations • Lerøy
Slide 27: Lerøy Seafood Group
Lerøy Seafood Group • Steady growth in operating profit and strong balance sheet • Satisfactory earnings • Growth potential within recently acquired businesses • Satisfactory liquidity • Professional and highly motivated employees • Strong partnerships / Network of alliances
Slide 28: Market strategy
Lerøy Seafood Group Market strategy: • Quality • Diversity in product range • Diversity in customer base • Market-oriented solutions • Geographical spread • Continuity in deliveries • Cost efficiency
Slide 29: Shareholders 14.02.06
Shareholders 14.02.06 Shareholder No. of shares Ow nership share Profond AS* 6 788 040 17,24 % Ferd Invest AS 2 000 000 5,08 % Morgan Stanley & Co 1 831 992 4,65 % Skagen Vekst 1 800 000 4,57 % Odin Norge 1 667 950 4,24 % MP Pensjon 1 655 984 4,21 % Pareto Aksje Norge 1 607 500 4,08 % Goldman Sachs
Slide 30: Agenda
Agenda 1.4 Lerøy Seafood Group – Company profile 2.5 Market glance
Slide 31: Lerøy Seafood Group ASA structure
Lerøy Seafood Group ASA Sales Sales&&Distribution Distribution Production Production Affiliated Affiliated Norskott Hallvard HallvardLerøy LerøyAS AS Lerøy LerøyMidnor MidnorAS AS NorskottHavbruk HavbrukAS* AS* 100% 100% 50% 100% 100% 50% Lerøy Lerøy Sverige SverigeAB Hydrotech AB Lerøy LerøyAurora
Slide 32: Lerøy Midnor AS
Lerøy Midnor AS Smolt: • 7,0 mill. smolt per year Farming: • 28 licences (salmon/trout) • 2004: 18.000 gwt • 2005: 22.700 gwt • 2006E: 25.000 gwt Processing: • Capacity of 100 tonnes per shift Value adding: • Capacity of appr. 4.000 t per year • Production of skin and bone free portions and fillets
Slide 33: Lerøy Midnor AS, preliminary figures
Lerøy Midnor AS, preliminary figures NOKm Q4 - 2005 Q4 - 2004 2005 2004 Revenues 177,7 116,3 596,4 413,0 EBITDA* 65,7 14,8 190,6 61,0 EBIT bef adj biom 59,4 8,7 162,2 33,1 EBIT 71,6 4,9 209,9 33,3 Pre tax 69,4 1,7 198,9 20,6 Volumes (gwt) 6,6 3,8 22,7 18,3 *Effect IFRS-adjustment 12,2 -3,8 47,7 0,2
Slide 34: Lerøy Aurora AS
Lerøy Aurora AS • Smolt: • 3.5 mill. smolt per year • Farming: • 16 licences • 2005: 8.500 gwt • 2006E: 13.000 gwt • Slaughtering station: • Capacity of 60 – 65 tonnes per shift
Slide 35: Lerøy Aurora AS, preliminary figures
Lerøy Aurora AS, preliminary figures NOKm Q4 - 2005 Q4 - 2004 2005 2004 Revenues 99,6 69,6 212,2 287,8 EBITDA* 30,5 -5,3 54,6 6,9 EBIT bef adj biom 26,5 -8,5 41,1 -6,3 EBIT 27,4 -8,5 62,9 -6,3 Pre tax 24,6 -11,1 53,0 -17,4 Volumes (gwt) 3,9 8,5 *Effect IFRS-adjustment 0,8 0,0 21,7 0,0 Balance sheet
Slide 36: Norskott Havbruk (Scottish Sea Farms Ltd.)
Norskott Havbruk (Scottish Sea Farms Ltd.) Smolt: • Self sufficient with high quality smolt Farming: • 2005: 20.700 gwt • 2006E: 21.000 gwt • Additional processing and sales Processing: • 2 processing plants • Scotland mainland • Shetland
Slide 37: Norskott Havbruk, preliminary figures
Norskott Havbruk, preliminary figures NOKm Q4 - 2005 Q4 - 2004 2005 2004 Revenues 231,4 219,9 774,8 706,1 EBITDA 45,3 20,4 138,2 78,2 EBIT adj bef biom 38,9 15,9 112,8 55,4 EBIT* 42,1 11,8 116,6 73,5 Pre tax 37,1 4,3 92,3 43,6 Volumes (gwt) 5,5 8,5 20,7 24,1 *Effect IFRS-adjustment 3,2 -4,1 3,8 18,1
Slide 38: Hydrotech Gruppen AS (39%)
Hydrotech Gruppen AS (39%) • Smolt: • 5,0 mill. smolt per year • Farming: • 17 licences (salmon/trout) • 2005: 12.400 gwt • 2006E: 14.000 gwt • Processing plant • Well-boat shipping co.
Slide 39: Hydrotech Gruppen AS, preliminary figures
Hydrotech Gruppen AS, preliminary figures NOKm Q4 - 2005 Q4 - 2004 2005 2004 Revenues 112,5 114,9 373,9 318,6 EBITDA 37,8 12,7 117,7 37,9 EBIT bef adj biom 33,3 7,8 99,2 19,3 EBIT* 33,5 1,2 102,2 19,3 Pre tax 34,2 -0,5 95,8 9,4 Volumes (gwt) 3,7 4,1 12,4 11,6 * Effect IFRS-adjustment 0,2 -6,6 3,0 0,
Slide 40: Egersund Fisk AS (27%), preliminary figures
Egersund Fisk AS (27%), preliminary figures • Shareholder structure • Lerøy Seafood Group ASA 27% • SalMar AS 27% • Egersund Fiskeriinvestering AS 9% • Others 37% (less than 4% each) • Pelagic activity • Fish oil, fish meal • Pelagic fish for consumption Nøkkeltall / Key figures 100% Q4 - 2005 Q4 -
Slide 41: Agenda
Agenda 1.5 Market glance
Slide 42: Fresh Atlantic Salmon Norway price development 1997-2006
0,00 5,00 10,00 15,00 20,00 25,00 30,00 35,00 40,00 45,00 1997-1 NOK / Kg Source: FHL/NSL Figures per 20.02.06 1997-16 1997-31 1997-46 1998-9 1998-24 1998-39 1999-1 1999-16 1999-31 1999-46 2000-9 2000-24 2000-39 Fresh Atlantic Salmon Norway (4-5 kgs) 2001-2 2001-17 2001-32 2001-47 2002-10 2002-25 20
Slide 43: Salmon export from Norway as of week 08-2006
Av. Q1-Q4 2004 NOK 21,71 Salmon export from Norway as of week 08-2006. Av. Q1-Q4 2005 NOK 25,28 Fresh atlantic salmon, cross-section, FCA Oslo. Up by 16,4 % Av. Q3-2005 NOK 26,86 Av. Q4-2005 NOK 25,94 NOK / kg Down by -3,4 % Oslo Q4-01 Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03 Q4-03 Q1-04 Q2-04 Q3-0
Slide 44: Market development for Atlantic Salmon from Norway 2004 vs 2005
Market development for Atlantic Salmon from Norway 2004 vs 2005 Volume 2004 Volume 2005 Change Value 2004 Value 2005 Change EU 380 572 405 724 7% 8 133 004 9 912 847 22 % Japan 35 849 30 235 -16 % 872 537 803 638 -8 % USA 11 997 8 848 -26 % 375 295 310 783 -17 % Others 85 991 99 597 16 % 1 819 764 2
Slide 45: Market development for Atlantic Salmon from Norway Jan 2005 vs Jan 2006
Market development for Atlantic Salmon from Norway Jan 2005 vs Jan 2006 Volume 2005 Volume 2006 Change Value 2005 Value 2006 Change EU 27 102 28 838 6% 591 834 720 723 22 % Russia 3 028 2 188 -28 % 62 811 55 642 -11 % Japan 2 556 2 325 -9 % 58 611 64 981 11 % USA 581 931 60 % 17 851 35 232 97 % Othe
Slide 46: Atlantic salmon – supply
Atlantic salmon – supply Change Change Change Change 2004 03-04 2005 E 04-05E 2006 E 05E-06E 2007 E 06E-07E Norway 537 000 6% 572 300 7% 610 200 7% 627 600 3% Chile 346 200 23 % 385 200 11 % 397 300 3% 469 900 18 % UK 149 800 -8 % 119 600 -20 % 123 500 3% 131 000 6% Canada 89 000 -3 % 103 000 16 % 1
Slide 47: Harvest quantities Atlantic Salmon World Wide
Harvest quantities Atlantic Salmon World Wide Volumes in tons Yearly change in % 1 600 000 16 1 400 000 14 1 200 000 12 1 000 000 10 800 000 8 600 000 6 400 000 4 200 000 2 - 0 1998 1999 2000 2001 2002 2003 2004 2005 2006E 2007E Harvest volume per year Change in % Figures per 15.02.06 Source: Kontal
Slide 48: Drivers Salmon 2005
Drivers Salmon 2005 • Norway total export volume of Atlantic Salmon (544.404 mt) + 6% • Norway – EU (volume Atlantic Salmon) (405.724 mt) + 7% • Norway – EU (value Atlantic Salmon) (9.912.847 TNOK) + 22 % • Norway – Russia (volume Atlantic Salmon) (54.353 mt) + 39 % • Norway – Feed sales (904.600 mt
Slide 49: Drivers Salmon January 2006
Drivers Salmon January 2006 • Norway total export volume of Atlantic Salmon (39.036 mt) + 7% • Norway – EU (volume Atlantic Salmon) (28.838 mt) + 6% • Norway – EU (value Atlantic Salmon) (720.723 TNOK) + 22 % • Norway – Russia (total volume Atlantic Salmon) (2.188 mt) - 28 % • Norway – Russia (volum
Slide 50: Thank you
Thank you