Slide 1: Q2 2017 Financial presentation
Q2 2017 Financial presentation Arne Møgster – CEO Britt Kathrine Drivenes – CFO
Slide 2: Highlights
Highlights All figures in NOK 1,000 Q2 2017 Q2 2016 H1 2017 H1 2016 2016 Austevoll Seafood ASA issued a new unsecured bond in June. Revenue 5 019 195 4 558 229 11 094 149 8 970 468 18 911 523 EBITDA 1 322 119 984 919 2 877 464 1 870 663 3 880 831 • MNOK 500 EBIT* 1 089 974 789 594 2 420 857 1 485 58
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 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 Niña (>+7) • Increase in salinity levels kept all La Niña from completing quota set by Government. It affected intermittently during whole season, to finally settle at a high level Neutral towards the end of June • As a
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 Centre/North 1st season update Volume '000 MT Q2 2017 Q2 2016 H1 2017 H1 2016 2017 E 2016 • Quota set at 2.8 million MT vs. 1.8 million MT 1st Own catch: season 2016 Anchoveta 154 34 202 52 350 190 • The season ended on July 31st with 2.4 million MT Mackerel - -
Slide 8: Operation in Chile
Operation in Chile Foodcorp Chile S.A Q2 2017 Q2 2016 H1 2017 H1 2016 2017 E 2016 Jack mackerel: Volume '000 MT • Foodcorp quota for 2017 21,650 MT vs. 20,240 MT in Own catch: 2016 Mackerel and other species 17 14 25 21 40 27 • Main season started in March Purchase: • Purchased 18,000 tonnes of quot
Slide 9: North Atlantic pelagic quotas
North Atlantic pelagic quotas (2007-2017) 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 1 000 000 500 000
Slide 10: Pelagia AS
Pelagia AS Fishmeal and fish oil (FMO) Norway, UK and Ireland ('000 MT ) Q2 2017 Q2 2016 H1 2017 H1 2016 2017 E 2016 Raw Material: Fishmeal and fish oil 245 150 480 361 665 575 Protein concentrate/oil 91 60 152 144 265 264 Total ('000 MT) 336 210 632 505 930 839 All volume based on 100% • Raw materi
Slide 11: Pelagia AS
Pelagia AS Direct Human Consumption Volume ('000 MT) Q2 2017 Q2 2016 H1 2017 H1 2016 2017E 2016 Raw material intake 47 51 152 155 405 330 • Quantities of raw material for Q2 slightly less than same quarter last year • Good season of North sea herring both in production and sales • Slow start of summ
Slide 12: Pelagia AS
Pelagia AS In June Pelagia signed an agreement with FMC to acquire the Epax® Omega-3 business.The transaction was completed 1st August 2017 • The main factory and management are located in Ålesund, Norway • Epax products are noted by customers for purity, stability and traceability • Pelagia plan to
Slide 13: Pelagia AS (100% figures)
Pelagia AS (100% figures) Q2 2017 Q2 2016 H1 2017 H1 2016 2016 (MNOK) • High activity for production of Revenue 1 192,3 1 065,8 2 564,4 2 330,8 5 758,4 fishmeal and oil EBITDA 93,7 120,2 256,9 247,0 628,2 • Seasonal lower activity for EBIT 49,2 79,8 183,9 166,6 464,2 production of human consumption
Slide 14: Br. Birkeland AS
Br. Birkeland AS Salmon Q2 2017 Q2 2016 H1 2017 H1 2016 2017E 2016 Harvest volume (GWT) 3,685 2,341 4,802 4,059 7,800 8,093 EBIT (NOK/kg) 27,9 31.9 27,1 29.2 26.9 Salmon: • Substantially higher harvest volume vs. same quarter 2016 • Strong prices for salmon in the quarter • Lower average weight due
Slide 15: Salmon
Salmon Lerøy Seafood Group ASA
Slide 16: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA Lerøy Aurora 26 licenses Q2 2017 • EBIT before FV adj. NOK 801 million (Q2/16: NOK 760 million) o Havfisk & LNWS EBIT NOK 86 million • Harvest volume salmon and trout 26,156 GWT (Q2/16: 41,132 GWT) • EBIT/kg all incl. (excl. EBIT Havfisk & LNWS) of NOK 27.3 (Q2/16: NOK 18.5)
Slide 17: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA Salmon/trout farming Licences Smolt 2011 2012 2013 2014 2015 2016 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 64 000 Lerøy Sjøtroll 63 22,6 56
Slide 18: Lerøy Seafood Group ASA (Wild catch)
Lerøy Seafood Group ASA (Wild catch) Strong start of 2017 • Catch volume based on annual quotas, time of catch may vary from year to year o Catch volume 16,769 MT in Q2/17 down from 17,020 MT in Q2/16 o High share of saithe (39% of catch Q2/17 vs. 11% of catch in Q2/16) o Compared to Q2/16. Positive
Slide 19: Financials
Financials Q2 2017
Slide 20: Catch, purchase and farming
Catch, purchase and farming (100% volumes) Figures in 1,000 tonnes Q2 2017 Q2 2016 H1 2017 H1 2016 2017 E 2016 Group companies: Norway (whitefish) 17 17 37 33 63 64 Norway (pelagic) 9 3 24 20 40 32 Chile own catch 17 14 25 21 40 27 Chile purchase 20 13 49 27 60 39 Peru own catch 154 34 211 52 365 20
Slide 21: Key financial figures
Key financial figures (NOK 1,000) Q2 2017 Q2 2016 Δ% Q2 2017 ** Q2 2016 ** Δ% Revenue 5 019 195 4 558 229 10,1 % 5 615 337 5 091 140 10,3 % EBITDA 1 322 119 984 919 34,2 % 1 368 966 1 045 042 31,0 % Depreciation/Impairment 232 145 195 325 254 405 215 540 EBIT* 1 089 974 789 594 38,0 % 1 114 561 829
Slide 22: Key financial figures
Key financial figures (NOK 1,000) H1 2017 H1 2016 Δ% H1 2017 ** H1 2016 ** Δ% Revenue 11 094 149 8 970 468 23,7 % 12 376 372 10 135 844 22,1 % EBITDA 2 877 464 1 870 663 53,8 % 3 005 933 1 994 151 50,7 % Depreciation/Impairment 456 607 385 078 493 107 425 268 EBIT* 2 420 857 1 485 585 63,0 % 2 512 8
Slide 23: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA • Spot prices above last year (MNOK) Q2 2017 Q2 2016 H1 2017 H1 2016 2016 o NSI Q2/17 NOK 67.7 vs. NOK 64.2 in Q2/16 (+5%) Revenue 4 232,4 4 261,9 9 692,0 8 077,6 17 269,7 o Up NOK 1.6/kg q-o-q, and up NOK 3.5/kg y-o-y EBITDA 947,7 875,6 2 371,2 1 573,0 3 355,1 EBIT* 800,7 76
Slide 24: Austral Group S.A.A
Austral Group S.A.A (MNOK) Q2 2017 Q2 2016 H1 2017 H1 2016 2016 • Seasonal high activity in the quarter Revenue 489,3 55,0 923,3 476,8 1 020,5 • 80% of the quota for first season were EBITDA 181,1 -28,1 268,6 49,7 140,1 caught by end June EBIT 134,0 -70,1 175,5 -30,5 -8,8 • 58% of the production of
Slide 25: Foodcorp Chile S.A
Foodcorp Chile S.A (MNOK) Q2 2017 Q2 2016 H1 2017 H1 2016 2016 • Good activity in the quarter Revenue 162,9 151,0 260,9 254,6 425,3 • Purchased 18,000 tonnes of horse EBITDA 71,0 21,7 80,9 41,2 31,1 mackerel from 3rd party (to be EBIT 61,4 5,6 62,1 8,0 -187,0 caught by Foodcorp’s vessels) Rawmateria
Slide 26: Br. Birkeland AS
Br. Birkeland AS Salmon Q2 (MNOK) Q2 2017 Q2 2016 H1 2017 H1 2016 2016 • Harvested volume (GWT): o Q2/17 3,685 MT vs. Q2/16 2,341 MT (+ 57%) Revenue 304,7 210,4 428,5 388,9 789,7 EBITDA 117,9 104,6 148,4 191,4 344,5 • EBIT/kg: o Q2/17 NOK 27.9 vs. Q2/16 NOK 31.9 (- 13%) EBIT* 94,5 87,9 106,9 158,5 2
Slide 27: Statement of financial position (Group)
Statement of financial position (Group) USD/NOK: (NOK 1,000) 30.06.2017 30.06.2016 31.12.2016 • 30.06.2017: 8.39 • 30.06.2016 8.38 Intangible assets 11 726 665 8 049 524 11 746 906 • 31.12.2016: 8.62 Tangible fixed assets 6 957 218 5 490 220 6 691 064 Strong financial position, equity ratio at 54% F
Slide 28: Cash flow
Cash flow (NOK 1,000) Q2 2017 Q2 2016 H1 2017 H1 2016 2016 (audited) Q2 2017 Pre tax profit 1 816 826 659 092 2 232 487 1 566 788 4 682 581 Increased working capital in the quarter, Biomass adjustment -702 362 150 187 318 864 -13 641 -1 549 449 building biomass within the salmon segment Paid tax -35
Slide 29: Outlook
Outlook
Slide 30: Fishmeal
Fishmeal Week 30 Fishmeal production - 2017 vs. 2016 (Cumulative) Production • IFFO Fishmeal production increase 98% YTD vs. Regions 2017 2016 Change % same period 2016 (Peru 145% up vs. 2016) • Peruvian 1st season ended on July 31st, 85% of Chile 273 268 154 086 77 % the quota caught, leaving a bal
Slide 31: Fishmeal
Fishmeal Main market – China • Stock level: 147,770 MT as of Aug 8th vs. 110,560 MT same period 2016 (+34%) o Off takes: 3,684 MT/day (+33% vs. same period 2016) o Domestic production remains limited, imported FM is supporting the consumption • Chinese prices currently higher than in Peru o Quoted a
Slide 32: Fish oil
Fish oil Week 30 Fish oil production - 2017 vs. 2016 (cumulative) Production • IFFO Fish oil production increase 75% YTD vs. same period 2016 Regions 2017 2016 Change % • Peru up 127% vs. 2016 due to the increase in landings Chile 71 853 51 868 39 % Prices • Feed grade: USD 1,450/MT FOB Peru Peru 10
Slide 33: 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 % 1 200 600 2,5 % United Kingdom 159 400 3,0 % 157 800 -1,0 % 17
Slide 34: Spot price NSI
Spot price NSI All sizes, sales price Oslo 34 www.auss.no Austevoll Seafood ASA
Slide 35: Atlantic salmon consumption
Atlantic salmon consumption YTD Q2 2017 600 000 250 % Market 2015 2016 2017 Chng Chng % EU 508 000 499 800 454 800 -45 000 -9 % 500 000 200 % USA 206 500 220 400 215 800 -4 600 -2 % Russia 47 200 34 900 29 400 -5 500 -16 % Japan 24 300 30 300 31 200 900 3% 400 000 150 % Other Markets 302 200 305 200
Slide 36: Conclusion
Conclusion Salmon • Strong salmon prices in Q2 • Lower harvest volumes in Q2/17 vs. Q2/16 (announced in the Q1 presentation) • 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 White fish •
Slide 37: Conclusion
Conclusion Pelagic South America • Seasonal high activity in the quarter o Austral finalised 80% of the 1st season 2017 quota by end June (154,500 MT) o Chile; finalized own quota of horse mackerel by end June (21,650 MT) Has entered into an agreement to buy 18,000 MT horse mackerel from 3 rd part
Slide 38: Conclusion
Conclusion Pelagic North Atlantic (Pelagia AS, an associated company) • High activity within production for fishmeal and fish oil • Seasonal low activity within the human consumption production • Increased quotas in the North Atlantic for 2017 • Pressure on margins for finished products Expecting se
Slide 39: wv
wv Austevoll Seafood ASA
Slide 40: 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 41: Appendix
Appendix
Slide 42: Associated companies
Associated companies Pelagia AS (100% figures) AUSS`s share = 50% (MNOK) Q2 2017 Q2 2016 H1 2017 H1 2016 2016 Revenue 1 192,3 1 065,8 2 564,4 2 330,8 5 758,4 EBITDA 93,7 120,2 256,9 247,0 628,2 EBIT 49,2 79,8 183,9 166,6 464,2 Net interest bearing debt 2 249,2 1 987,0 1 844,0 42 www.auss.no Austevol
Slide 43: Associated companies
Associated companies Norskott Havbruk AS (100% figures) LSG’s share = 50% (MNOK) Q2 2017 Q2 2016 H1 2017 H1 2016 2016 Revenue 599 433 971 854 1 721 EBITDA 250 123 411 227 554 EBIT* 227 101 370 182 474 Volumes (gwt) 8 437 7 155 14 355 14 136 28 043 EBIT/kg* (NOK) 26,9 14,2 25,8 12,9 16,9 Net interest