Leroy Seafood Group ASA · OSL:LSG
Leroy Seafood Group ASA — Lerøy Seafood Group — FY2004 Earnings Presentation
52 slides from Leroy Seafood Group ASA's earnings presentation, Feb 24, 2005
Slide 1: Lerøy Seafood Group Preliminary financial figures 2004
Lerøy Seafood Group • Preliminary financial figures 2004 February 24th 2005 • Ole-Eirik Lerøy President & CEO • Helge Singelstad Vice president & vice CEO
Slide 2: Agenda
Agenda 1. 1 Considerations 2. 2 Preliminary key financial figures 2004 3. 3 Lerøy at a glance 4. 4 Lerøy Seafood Group – Company profile 5. 5 Market glance
Slide 3: Preliminary figures: main figures Q4 2004
Preliminary figures Internal considerations 4th Quarter 2004 Main figures All figures in mill NOK Q4-04 Q4-03 Change 2004 2003 Change Turnover 979 925 5,8 % 3559 2915 22,1 % Operating profit 36 26 38,5 % 123 84 46,4 % Affiliated comp. 6 0 - 10 -21 - Pre-tax profit 39 20 95,0 % 118 55 114,6 %
Slide 4: Internal considerations 4th Quarter 2004
Internal considerations 4th Quarter 2004 • Financially Solid • Well positioned for future organic and strategic growth • Proposed dividend for 2004 NOK 0,80 per share (Ex dividend 26. May 2005) • 3.040 shareholders as of 21. February 2005 • Considerably improved liquidity traded shares • Considerabl
Slide 5: External considerations 4th Quarter 2004
External considerations 4th Quarter 2004 • Improved salmon and trout prices • Prices decreased in Q4 04 • Prices in Q4 04 marginally lower than comparable figures in Q4 03 • Prices so far in Q1 05 significantly higher than prices in Q4 04 • Prices in Q1 05 expected to be significantly higher than pr
Slide 6: External considerations 4th Quarter 2004 cont.
External considerations 4th Quarter 2004 cont. • Political issues / trade barriers • Safeguard measures as of 04. February 2005 • EU-member countries have a right to submit complaint on Safeguard Measures • Norway has made a complaint to WTO
Slide 7: Trade restrictions from EC against Norway
TRADE RESTRICTIONS FROM EC AGAINST NORWAY EC is working with two alternatives to restrict the trade in Norwegian Salmon: Safeguard Measures. Anti-dumping with punitive duty. EC can only implement one set of regulations.
Slide 8: Safeguard Measures
SAFEGUARD MEASURES EC implemented Safeguard Measures for farmed Atlantic Salmon from 06.02.05. The Safeguard Measures shall be valid until 13.08.08. The Safeguards Measures include Norway, Faeroes, Chile and other Atlantic Salmon-producing countries outside the EC.
Slide 9: Elements in Safeguard Measures
Elements in Safeguard Measures 1. Tariff quotas and additional duties 2. Minimum Import Price (MIP) 3. Security to be provided on import
Slide 10: Agenda
Agenda 1. 1 Considerations 2. 2 Preliminary key financial figures 2004 3. 3 Lerøy at a glance 4. 4 Lerøy Seafood Group – Company profile 5. 5 Market glance
Slide 11: Yearly turnover LSG
Preliminary figures Yearly turnover LSG mill. NOK 4000 3500 3000 2500 2000 1500 1000 500 0 1980 1985 1990 1995 1999 2000 2001 2002 2003 2004P
Slide 12: Pre-tax earnings LSG
Preliminary figures Pre-tax earnings LSG mill. NOK 140 120 100 80 60 40 20 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004P
Slide 13: Quarterly turnover LSG
Preliminary figures Quarterly turnover LSG mill. NOK 4000000 3500000 3000000 2500000 2001 2000000 2002 1500000 2003 1000000 2004 500000 0 Q1 Q2 Q3 Q4 YTD
Slide 14: Quarterly operating profit LSG
Preliminary figures Quarterly operating profit LSG mill. NOK 140000 120000 100000 2001 80000 2002 60000 2003 2004 40000 YTD 20000 0 Q1 Q2 Q3 Q4 YTD
Slide 15: Quarterly profit before tax LSG
Preliminary figures Quarterly profit before tax LSG mill. NOK 120000 100000 80000 2001 60000 2002 2003 40000 2004 20000 0 Q1 Q2 Q3 Q4 YTD
Slide 16: Income Statement 2004
Preliminary figures Resultatregnskap / Income Statement 2004 Alle tall i NOK 1.000 / All figures in NOK 1,000 Q4 - 2004 Q4 - 2003 2004 2003 Salgsinntekter / Operating revenues 978 967 924 630 3 559 399 2 914 873 Vareforbruk / Cost of goods sold 826 115 829 654 3 033 920 2 614 210 Lønn og andre perso
Slide 17: Balance Sheet 2004
Preliminary figures Balanse / Balance Sheet 2004 Alle tall i NOK 1.000 / All figures in NOK 1,000 31.12.04 31.12.03 Immaterielle eiendeler / Intangible assets 277 887 272 457 Varige driftsmidler / Tangible fixed assets 193 139 183 417 Finansielle anleggsmidler / Financial fixed assets 284 254 275 06
Slide 18: Balance Sheet 2004 cont.
Preliminary figures Balanse / Balance Sheet 2004 forts./cont. Alle tall i NOK 1.000 / All figures in NOK 1,000 31.12.04 31.12.03 Innskutt egenkapital / Equity contributions 656 113 656 043 Opptjent egenkapital / Earned equity 178 572 127 781 Minoritetsinteresser / Minority interests 4 106 10 325 Sum
Slide 19: Key figures – Lerøy Seafood Group 2004
Preliminary figures Key figures – Lerøy Seafood Group 2004 Nøkkeltall / Key figures Q4 - 2004 Q4- 2003 2004 2003 Resultatmargin / Profit margin 3,89 % 2,87 % 3,30 % 1,88 % Driftsmargin / Operating margin 3,64 % 2,83 % 3,46 % 2,89 % Resultat per aksje / Earnings per share 0,72 0,66 2,36 1,15 Utvannet
Slide 20: Lerøy Seafood Group consolidated 2004
Preliminary figures Lerøy Seafood Group consolidated 2004 • Lerøy Seafood Group’s total equity is 838,8 mill NOK • Subsidiaries share of group equity is • Hallvard Lerøy AS 100% 111 • Lerøy Midnor AS 100% 271 • Lerøy Sverige AS 100% 36 • Lerøy Smøgen Seafood AS 100% 59 • Sigerfjord Aqua AS 90% 8 • N
Slide 21: Affiliated companies
Preliminary figures Affiliated companies Balance at 31.12.04 31.12.03 31.12.02 Norskott Havbruk AS (50%) 164,6 mill 155,1 mill 153,0 mill Hydrotech Gruppen AS (39%) 90,1 mill 91,1 mill 104,0 mill Egersund Fisk AS (27%) 25,1 mill 22,6 mill 22,0 mill Others 0,3 mill Total 280,1 mill 268,8 mill 279,0 m
Slide 22: Lerøy Seafood Group Consolidated Key figures
Lerøy Seafood Group Consolidated Key figures • Total equity (46,08 %) 838,8 mill • Net interest bearing debt 277,0 mill • Total intangible assets 277,9 mill • Licences smolt / fish farming Norway 205,0 mill • Goodwill / def. tax 72,9 mill • Total LSG-shares 31.12.04: 34.440.767 • Share issue Jan. 20
Slide 23: Implementing of IFRS
Implementing of IFRS • Deferred tax on licences and shares in affiliated companies. • Market value on fish in sea (weight > 4 kg rw). • Provision for dividends not accepted according to IFRS. • Capitalization of options at fair value. • Total estimated equity effect on opening balance 01.01.04 is ne
Slide 24: Agenda
Agenda 1. 1 Considerations 2. 2 Preliminary key financial figures 2004 3. 3 Lerøy at a glance 4. 4 Lerøy Seafood Group – Company profile 5. 5 Market glance
Slide 25: Lerøy Seafood Group
Lerøy Seafood Group • Global distribution network • Global distribution from Head Office in Bergen • Local distribution and processing in Sweden, France and Portugal • Local representative offices in some key markets (France, Spain, Italy, Japan, China, USA)
Slide 26: Hallvard Leroy AS
HALLVARD LEROY AS SALES - MARKETING DISTRIBUTION FRANCE NORDVIK DISTRIBUTION UK SFF / LEROY DISTRIBUTION PORTUGAL PORTNOR DIRECT EXPORT LER@Y FRANCE LEROY CHINA LEROY LER@Y ITALY SPAIN LER@Y JAPAN LEROY US DISTRIBUTION NORWAY DISTRIBUTION LER@Y SVEDEN PROCESSING LER@Y SWEDEN FARMING / PROCESSING NOR
Slide 27: Sales per market year 2004
Lerøy Seafood Group - Sales per market year 2004 Others Norway 2,3 % 9,2 % USA and Canada 8,1 % Asia Pacific Western Europe 15,3 % 57,9 % Eastern Europe 7,2 %
Slide 28: Sales per product year 2004
Lerøy Seafood Group - Sales per product year 2004 Shellfish Salmontrout 5,6 % 6,7 % Other/other species 3,0 % Pelagic fish 4,5 % Whole salmon White fish 45,3 % 10,5 % Processed salmon 24,3 %
Slide 29: Lerøy Seafood Group
Lerøy Seafood Group • Norway’s largest seafood exporter • 10,6 % share of Norwegian Seafood total exports value • 14,6 % of Norwegian salmon export in 2004 • 11,9 % of Norwegian salmon export in 2003 • 27,6 % of Norwegian value added salmon export • Major shareholder in fish farming operations • Ler
Slide 30: Lerøy Seafood Group
Lerøy Seafood Group • Steady growth in operating profit and strong balance sheet • Stable earnings despite turbulence in the sea food industry • Growth potential within recently acquired businesses • Satisfactory liquidity • Professional and highly motivated employees • Strong Partnerships / Network
Slide 31: Market strategy
Lerøy Seafood Group Market strategy: • Diversity in product range • Diversity in customer base • Market-oriented solutions • Geographical spread • Continuity in deliveries • Cost efficiency
Slide 32: Shareholders 21.02.05
Shareholders 21.02.05 Shareholder No. of shares Ow nership share Ole-Eirik Lerøy 4 685 000 12,37 % Ferd Invest AS 3 000 000 7,92 % Skagen Vekst 1 855 835 4,90 % MP Pensjon 1 655 984 4,37 % Knut Hallvard Lerøy 1 253 210 3,31 % Hallvard Lerøy Jr. 1 190 900 3,14 % Pareto 1 070 000 2,82 % Odin Norge 965
Slide 33: Agenda
Agenda 1. 1 Considerations 2. 2 Preliminary key financial figures 2004 3. 3 Lerøy at a glance 4. 4 Lerøy Seafood Group – Company profile 5. 5 Market glance
Slide 34: Lerøy Seafood Group ASA group structure
Lerøy Seafood Group ASA Sales Sales&&Distribution Distribution Production Production Lerøy Lerøy Lerøy Hallvard Hallvard Portnor LerøySmøgen Smøgen Lerøy Lerøy Sigerfjord Sigerfjord Sverige AB Nordvik SA PortnorLda Lda Seafood SeafoodAB Midnor AS Aqua Sverige AB Lerøy LerøyAS AS Nordvik SA 80% 60% A
Slide 35: Lerøy Midnor AS
Lerøy Midnor AS
Slide 36: Description of Lerøy Midnor AS Production
Description of Lerøy Midnor AS Production Smolt: Slaughtery: • Licences for smolt production • Capacity of 85-90 tonnes per shift • 6,0 mill. smolt per year (salmon/trout) Farming: Processing: • Capacity of appr. 4.000 t per year • 28 licences (salmon/trout) • All production is located along the • P
Slide 37: Lerøy Midnor AS Results and balance
Preliminary figures Lerøy Midnor AS Results and balance NOK Q4-04 Q3-04 Q2-04 Q1-04 2004 2003 Revenues 116,3 106,7 82,5 107,5 413,0 216,7 EBITDA 14,8 16,7 13,7 15,8 61,0 -4,1 EBIT 8,7 8,9 6,6 8,9 33,1 -17,3 Pre tax 5,5 5,6 3,8 5,5 20,4 -41,4 Volume (gwt) 3,8 6,5 3,3 4,7 18,3 N.A Balance sheet 31.12.
Slide 38: Norskott Havbruk AS
Norskott Havbruk Scottish BF SeaFarms
Slide 39: Norskott Havbruk (Scottish Sea Farms Ltd.)
Norskott Havbruk (Scottish Sea Farms Ltd.) • Production capacity: 25 000 – 30 000 gwt • Self sufficient with high quality smolt • Opportunity to sell surplus high quality smolt • Volume harvested in 2004: 24 100 gwt • Est. harvest volume 2005E: 19 000 – 21 000 gwt • Additional processing and sales:
Slide 40: Norskott Havbruk
Preliminary figures Norskott Havbruk NOKm Q4 - 2004 2004 2003 Revenues 219,9 706,1 708,3 EBITDA 20,4 78,2 57,8 EBIT 14,2 48,8 28,2 Pre tax 6,7 18,9 2,1 Volume gw (t) 8,5 24,1 24,0 Balance sheet 31.12.04**) 31.12.03*) Licences, Goodwill 372,7 375,9 Fixed assets 92,1 90,8 Inventories 304,3 323,5 Other
Slide 41: Hydrotech Gruppen AS (39%)
Hydrotech Gruppen AS (39%) • Ownership • 39% owned by Lerøy Seafood Group ASA • 57.3% owned by L & K Karlsen Holding AS • 3.7% owned by others • Fish farms in Norway • 17 wholly owned licenses • Estimated sales 2005: • Salmon and trout estimated : 11 gwt (12 gwt) • Smolt production: appr. 5 mill • W
Slide 42: Hydrotech Gruppen
Preliminary figures Hydrotech Gruppen NOK Q4 - 2004 2004 31.12.2003 Revenues 102,8 318,6 381,6 EBITDA 12,7 37,9 -11,1 EBIT 7,7 18,9 -33,0 Pre tax 6,0 9,0 -50,6 Volume gw/t 4,0 11,6 Balance sheet 31.12.2004 31.12.2003 Licences / Goodwill 139,5 139,9 Fixed assets 149,6 161,5 Inventories 130,5 142,2 Ot
Slide 43: Egersund Fisk AS (27%)
Preliminary figures Egersund Fisk AS (27%) • Shareholder structure • Lerøy 27% • SalMar 27% • Egersund Fiskeriinvestering 9% • Others 37% (less than 4% each) • Pelagic activity • Fish oil, fish meal • Pelagic fish for consumption • Ownership in vessels for wild catch • Production of ice • Part owner
Slide 44: Agenda
Agenda 1. 1 Considerations 2. 2 Preliminary key financial figures 2004 3. 3 Lerøy at a glance 4. 4 Lerøy Seafood Group – Company profile 5. 5 Market glance
Slide 45: Fresh Atlantic Salmon Norway price development 1997 - YTD
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 21.02.05. 1997-14 1997-27 1997-40 1998-1 1998-14 1998-27 1998-40 1998-53 1999-13 1999-26 1999-39 1999-52 2000-13 2000-26 2000-39 Fresh Atlantic Salmon Norway (4-5 kgs) 2000-52 2001-13 – price develo
Slide 46: Salmon export from Norway as of week 08-05
Salmon export from Norway as of week 08-05. Fresh atlantic salmon, cross-section, FCA Oslo. Average 2003 NOK 19,44 Average 2004 NOK 21,69 Up by 11,6 %. NOK / kg Oslo Q4-01 Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03 Q4-03 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 28,00 A.20,23 A.23,37 A.17,24 A.18,04 A.21,77 A.20
Slide 47: Atlantic salmon – supply side
Atlantic salmon – supply side SUPPLY. Change Change Change 2002 2003 02-03 2004 03-04 2005 E 04-05E Norw ay 443 900 508 400 14,5 % 537 000 6% 530 800 -1 % Chile 268 300 280 800 4,7 % 344 800 23 % 390 400 13 % UK 140 100 162 300 15,8 % 136 900 -16 % 122 100 -11 % Canada 112 000 92 000 -17,9 % 89 000
Slide 48: Atlantic salmon world-wide production. Market distribution
Atlantic salmon world-wide production. Market distribution. Market distribution Change Change 2003 02-03 2004 E 03-04E EU - 25 579 600 11 % 585 700 1% USA 311 100 5% 303 900 -2 % Japan 50 300 -23 % 64 600 28 % Others 198 200 5% 235 800 19 % In total 1 139 200 6% 1 190 000 4% Figures per 22.02.05. So
Slide 49: Harvest quantities Atlantic Salmon World Wide
Harvest quantities Atlantic Salmon World Wide Volumes in tons Yearly change in % 1 400 000 18 16 +4% + 1% 1 200 000 +8% +7% 14 +13% 1 000 000 +11% 12 +16% 800 000 10 8 600 000 6 400 000 4 200 000 2 0 0 1998 1999 2000 2001 2002 2003 2004 2005E Harvest Quantity Yearly change in % in harvest quantity F
Slide 50: Market development for Atlantic Salmon from Norway
Market development for Atlantic Salmon from Norway (01.01-31.12 2004 vs 2003) Volume 2004 Volume 2003 Change Value 2004 Value 2003 Change EU 381 283 357 613 7% 8 154 273 7 257 520 12 % USA 10 092 16 224 -38 % 295 679 459 012 -36 % Japan 35 981 35 731 1% 877 812 848 302 3% Others 85 712 74 604 15 % 1
Slide 51: Drivers Salmon 2004
Drivers Salmon 2004 • Norway total export volume of Atlantic Salmon (513.068 mt) + 6% • Norway – EU (volume Atlantic Salmon) (+23.670 mt) + 7% • Norway – EU (value Atlantic Salmon) (+ 896,7 MNOK) + 12 % • Norway – Eastern Europe (volume fresh Atlantic Salmon) (+16.093 mt) + 50 % • Norway - Japan (va
Slide 52: Thank you !
Thank you !