Austevoll Seafood ASA · OSL:AUSS
Austevoll Seafood ASA — Q3 2017 Earnings Presentation
42 slides from Austevoll Seafood ASA's earnings presentation, November 2017
Slide 1: Q3 2017 Financial presentation
Q3 2017 Financial presentation Arne Møgster – CEO Britt Kathrine Drivenes – CFO
Slide 2: Highlights
Highlights All figures in NOK 1,000 Q3 2017 Q3 2016 YTD 2017 YTD 2016 2016 Revenue 4 902 771 4 611 391 15 996 920 13 581 859 18 911 523 EBITDA* 1 051 110 709 219 3 928 574 2 579 882 3 880 831 EBIT* 822 034 496 482 3 242 891 1 982 067 2 912 911 Pre-tax profit** 873 360 546 455 3 378 474 2 080 432 3 0
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) and La La Niña Niña (>+7) • Weather conditions are optimistic regarding low probability of El Neutral Niño occurring in summer 2018 (Southern Hemisphere) • 60% probability of neutral conditions El Niño Source: Australian Gover
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 Volume '000 MT Centre/North Q3 2017 Q3 2016 YTD 2017 YTD 2016 2017 E 2016 • 1st season ended July 31st with 2.4 million MT Own catch: caught vs. 0.9 million MT 1st season 2016 Anchoveta 7 46 209 98 319 190 Mackerel - 7 9 8 9 12 • 2nd season expected to start in
Slide 8: Operation in Chile
Operation in Chile Foodcorp Chile S.A Q3 2017 Q3 2016 YTD 2017 YTD 2016 2017 E 2016 Jack mackerel: Volume '000 MT • Foodcorp quota for 2017 21,650 MT vs. 20,240 MT in 2016 Own catch: • Main season started in March Mackerel and other species 16 0 41 21 41 27 • Purchased 18,000 tonnes of quota from 3r
Slide 9: 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 DHC 3 000 000 species 2 500 000 o NVG herring o Mackerel 2 000 000 • Quota for sand eel to be 1 500 000 finalised in Ap
Slide 10: Pelagia AS
Pelagia AS Fishmeal and fish oil (FMO) Norway, UK and Ireland ('000 MT) Q3 2017 Q3 2016 YTD 2017 YTD 2016 2017 E 2016 Raw Material: Fishmeal and fish oil 79 121 560 481 665 575 Protein concentrate/oil 54 46 206 190 265 264 Total ('000 MT) 133 167 766 671 930 839 All volume based on 100% • Raw materi
Slide 11: Pelagia AS
Pelagia AS Direct Human Consumption Volume ('000 MT) Q3 2017 Q3 2016 YTD 2017 YTD 2016 2017E 2016 Raw material intake 60 62 212 217 405 330 • Acceptable production of both mackerel and NS herring so far • Lower availability of summer mackerel vs. last year • Good sales, specially mackerel for the As
Slide 12: Pelagia AS (100% figures)
Pelagia AS (100% figures) (MNOK) Q3 2017 Q3 2016 YTD 2017 YTD 2016 2016 • As normal seasonal lower activity for Revenue 1 350,3 1 328,6 3 914,8 3 659,2 5 758,4 both human consumption and EBITDA 125,6 177,0 382,5 424,0 628,2 FM/oil production EBIT 80,0 137,8 263,9 304,4 464,2 • Pressure on margins fo
Slide 13: Br. Birkeland AS
Br. Birkeland AS Salmon Q3 2017 Q3 2016 YTD 2017 YTD 2016 2017E 2016 Harvest volume (GWT) 543 1,523 5,345 5,582 7,200 8,093 EBIT (NOK/kg) 20,7 21,1 26,5 28,2 26.9 Salmon: • Substantially lower harvest volume third quarter 2017 vs. same quarter 2016 • Strong prices for salmon in the quarter (all sold
Slide 14: Salmon
Salmon Lerøy Seafood Group ASA
Slide 15: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA Lerøy Aurora 26 licenses Q3 2017 • EBIT before FV adj. NOK 861 million (Q3/16: NOK 481 million) o Havfisk & LNWS EBIT NOK 62 million • Harvest volume salmon and trout 46,024 GWT (Q3/16: 31,744 GWT) • EBIT/kg all incl. (excl. EBIT Havfisk & LNWS) of NOK 17.4 (Q3/16: NOK 14.8)
Slide 16: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA Salmon/trout farming Licences Smolt 2012 2013 2014 2015 2016 2017E 2018E cap. GWT GWT GWT GWT GWT GWT GWT Lerøy Aurora AS* 26 11,5 20 000 24 200 26 800 29 200 30 000 40 000 38 000 Lerøy Midt AS 57 22,0 61 900 58 900 68 300 71 400 52 200 65 000 67 000 Lerøy Sjøtroll 63 22,6 71
Slide 17: Lerøy Seafood Group ASA (Wild catch)
Lerøy Seafood Group ASA (Wild catch) Strong first three quarter 2017 • Catch volume based on annual quotas, time of catch may vary from year to year o Catch volume 17,029 MT in Q3/17 compared with 17,189 MT in Q3/16 o Relatively high share of haddock (14% of catch Q3/17 vs. 6% of catch Q3/16) o Comp
Slide 18: Financials
Financials Q3 2017
Slide 19: Catch, purchase and farming
Catch, purchase and farming (100% volumes) Figures in 1,000 tonnes Q3 2017 Q3 2016 YTD 2017 YTD 2016 2017 E 2016 Group companies: Norway (whitefish) 17 17 54 50 63 64 Norway (pelagic) 5 2 28 22 40 32 Chile own catch 16 - 41 21 41 27 Chile purchase 5 3 54 30 59 39 Peru own catch 7 54 218 106 328 202
Slide 20: Key financial figures
Key financial figures (NOK 1,000) Q3 2017 Q3 2016 Δ% Q3 2017 a) Q3 2016 a) Δ% Revenue 4 902 771 4 611 391 6,3 % 5 498 913 5 275 655 4,2 % EBITDA* 1 051 110 709 219 48,2 % 1 097 957 797 735 37,6 % Depreciation/impairment 229 076 212 737 251 336 232 333 EBIT* 822 034 496 482 65,6 % 846 621 565 402 49,
Slide 21: Key financial figures
Key financial figures (NOK 1,000) YTD 2017 YTD 2016 Δ% YTD 2017 a) YTD 2016 a) Δ% Revenue 15 996 920 13 581 859 17,8 % 17 954 316 15 411 499 16,5 % EBITDA* 3 928 574 2 579 882 52,3 % 4 119 842 2 791 887 47,6 % Depreciation/impairment 685 683 597 815 744 997 657 601 EBIT* 3 242 891 1 982 067 63,6 % 3
Slide 22: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA (MNOK) Q3 2017 Q3 2016 YTD 2017 YTD 2016 2016 • Spot prices below last year o NSI Q3/17 NOK 56.8 vs. NOK 60.8 in Q3/16 (-7%) Revenue 4 373,2 4 267,7 14 065,2 12 345,3 17 269,7 o Down NOK 11/kg q-o-q, and down NOK 4/kg y-o-y EBITDA* 1 007,5 612,0 3 378,7 2 185,0 3 355,1 EBIT*
Slide 23: Austral Group S.A.A
Austral Group S.A.A (MNOK) Q3 2017 Q3 2016 YTD 2017 YTD 2016 2016 • Seasonal low activity in the quarter Revenue 311,1 258,3 1 234,5 735,1 1 020,5 EBITDA -9,7 73,4 258,9 123,1 140,1 • First season ended July 31st; EBIT ex. impairment -55,1 31,0 118,2 -3,0 -35,2 o own catch in July 6,600 tonnes EBIT
Slide 24: Foodcorp Chile S.A
Foodcorp Chile S.A (MNOK) Q3 2017 Q3 2016 YTD 2017 YTD 2016 2016 • Good activity in the quarter (horse mackerel) Revenue 145,0 90,2 405,9 344,8 425,3 o Caught the remaining part of the EBITDA 27,8 -4,7 108,6 36,5 31,1 purchased 18,000 tonnes of horse EBIT ex. impairment 19,1 -21,6 81,1 -13,6 -37,8 m
Slide 25: Br. Birkeland AS
Br. Birkeland AS (MNOK) Q3 2017 Q3 2016 YTD 2017 YTD 2016 2016 Salmon • Harvested volume (GWT): Revenue 81,5 130,9 510,0 519,8 789,7 o Q3/17 543 MT vs. Q3/16 1,523 MT (- 64%) EBITDA* 20,7 27,4 169,0 218,9 344,5 o YTD/17 5,345 MT vs. YTD/16 5,582 MT (- 4%) EBIT* -3,8 9,1 103,1 167,6 277,3 • EBIT/kg:
Slide 26: Statement of financial position (Group)
Statement of financial position (Group) (NOK 1,000) 30.09.2017 30.09.2016 31.12.2016 USD/NOK: • 30.09.2017: 7.97 Intangible assets 11 635 381 10 812 552 11 746 906 • 30.09.2016: 8.05 Tangible fixed assets 7 092 573 6 725 168 6 691 064 • 31.12.2016: 8.62 Financial non-current assets 2 099 273 1 779 0
Slide 27: Cash flow
Cash flow (NOK 1,000) Q3 2017 Q3 2016 YTD 2017 YTD 2016 2016 (audited) Q3 2017 Pre tax profit 328 812 457 805 2 561 299 2 024 593 4 682 581 Good cash performance in the quarter Biomass adjustment 511 708 98 552 830 572 84 911 -1 549 449 seasonal build-up of working Paid tax -13 133 -9 447 -580 456
Slide 28: Outlook
Outlook
Slide 29: Fishmeal
Fishmeal Week 41 Fishmeal production - 2017 vs. 2016 (cumulative) Regions 2017 2016 Change % Production • IFFO Fishmeal production increase 84% YTD vs. same period 2016. Chile# 293 883 171 051 71,8 % • Peru 140% up vs. 2016 due to a recovery in the Peru 726 069 302 151 140,3 % biomass and increase i
Slide 30: Fishmeal
Fishmeal Main market – China • Stock level: 154,750 MT as of Oct.16th vs. 124,020 MT same period 2016 (+25%) o Off takes: 3,500 MT/day (2,250 MT/day same period 2016) o Domestic production remains limited, stock + imported FM is supporting the consumption. Expecting an important drop in the domest
Slide 31: Fish oil
Fish oil Week 41 Fish oil production - 2017 vs. 2016 (cumulative) Production • IFFO Fish oil production increase 57% YTD vs. same Regions 2017 2016 Change % period 2016 • Peru up 123% vs. 2016 due to the increase in landings Chile# 86 299 60 706 42,2 % Peru 102 020 45 711 123,2 % Prices • Feed grade
Slide 32: Atlantic salmon supply
Atlantic salmon supply (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 % 1 205 900 3,0 % United Kingdom 159 400 3,0 % 157 800 -1,0 % 17
Slide 33: SPOT prices
SPOT prices fresh Atlantic salmon, cross-section, FCA Oslo as of week 43-2017 (Superior quality). 33 www.auss.no Austevoll Seafood ASA
Slide 34: Atlantic salmon consumption
Atlantic salmon consumption YTD October 2017 1000 000 25 % Market - Salmon 2015 2016 2017 Grow th Grow th % 900 000 20 % Eu 886 300 858 700 828 800 -29 900 -3 % 800 000 15 % Other Markets 525 000 497 400 527 500 30 100 6% USA 348 400 356 800 362 800 6 000 2% 700 000 6% 10 % Japan 47 100 51 700 52 30
Slide 35: Conclusion
Conclusion Salmon • Strong salmon prices in Q3 • Substantially higher harvest volumes in Q3/17 vs. Q3/16 • Continued positive outlook White fish • Good catches in the quarter • Expected catch volume up towards 70,000 tonnes in 2017 • 2018 quota set for cod down 13%, haddock down 12%, Greenland halib
Slide 36: Conclusion
Conclusion Pelagic South America • As normal lower seasonal activity in the quarter o Chile; finalized the catch of horse mackerel from the 18,000 MT purchase from 3rd party • 2nd season quota for anchoveta in Peru expected to be announced soon o Expect start up mid of November • Environmental condi
Slide 37: Conclusion
Conclusion Pelagic North Atlantic (Pelagia AS, an associated company) • As normal seasonal lower activity within production for fishmeal and fish oil and human consumption in the quarter • The season for mackerel and herring started up late September • Pressure on margins for finished products Expec
Slide 38: Austevoll Seafood ASA
Austevoll Seafood ASA
Slide 39: 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 40: Appendix
Appendix
Slide 41: Associated companies
Associated companies Pelagia AS (100% figures) AUSS`s share = 50% (MNOK) Q3 2017 Q3 2016 YTD 2017 YTD 2016 2016 Revenue 1 350,3 1 328,6 3 914,8 3 659,2 5 758,4 EBITDA 125,6 177,0 382,5 424,0 628,2 EBIT 80,0 137,8 263,9 304,4 464,2 Net interest bearing debt 1 821,0 1 600,0 1 844,0 41 www.auss.no Aust
Slide 42: Associated companies
Associated companies Norskott Havbruk AS (100% figures) LSG’s share = 50% (MNOK) Q3 2017 Q3 2016 YTD 2017 YTD 2016 2016 Revenue 632 512 1 603 1 366 1 721 EBITDA 205 168 616 395 554 EBIT* 184 151 554 333 474 Volumes (gwt) 9 429 8 148 23 784 22 284 28 043 EBIT/kg* (NOK) 19,5 18,6 23,3 15,0 16,9 Net in