Mowi Asa · OSL:MOWI
Mowi Asa — Marine Harvest — NASF (March 2014)
22 slides from Mowi Asa's conference presentation, Mar 6, 2014
Slide 1: Leading the blue revolution
Marine Harvest NASF - March 6, 2014 Alf-Helge Aarskog Leading the blue revolution
Slide 2: Forward looking statements
Forward looking statements 2 This presentation may be deemed to include forward-looking statements, such as statements that relate to Marine Harvest’s contracted volumes, goals and strategies, including strategic focus areas, salmon prices, ability to increase or vary harvest volume, production capa
Slide 3: Agenda
Agenda 3 . Highlight Q4 . Fundamentals . Marine Harvest going forward . Biology in focus
Slide 4: Highlights
Highlights 4 . All time high revenues . Strong market driven by increased demand . Operational EBIT NOK 1,034 million . Listed on NYSE 28 January 2014 . Quarterly dividend of NOK 1.20 per share (ex. 1:10 reverse split)
Slide 5: Key financials
Key financials 5 Marine Harvest Group - main figures NOK million Operational revenue and other income 6 743 4 071 19 230 15 569 Operational EBIT 1) 1 034 64 3 210 643 Cash flow from operations - 51 - 169 1 959 1 553 Net interest-bearing debt (NIBD) 7 797 5 381 7 797 5 381 Underlying EPS as of 31.12
Slide 6: Norway: Operational EBIT/kg per region
Norway: Operational EBIT/kg per region 6 Including contribution from Sales and Marketing
Slide 7: Implied protein consumption driven by population growth only
Implied protein consumption driven by population growth only Sources: FAO (2009); FAOstat Food Balance Sheets, United Nations population data; World Population Prospects: the 2012 Revision Assumption: Constant consumption of protein per capita
Slide 8: Farmed Atlantic salmon relatively small
Farmed Atlantic salmon relatively small 8 Sources: OECD-FAO Agricultural Outlook 2013 Kontali Analyse Atlantic salmon
Slide 9: Large opportunities within aquaculture species
Large opportunities within aquaculture species 9 Source: Kontali Analyse
Slide 10: Value CAGR of 8% - Volume CAGR of 6%
11 Value CAGR of 8% - Volume CAGR of 6%
Slide 11: Marine Harvest farming regions
12 Canada Volume: 28 000 Chile Volume: 56 000 Faroe Islands Volume: 9 000 Scotland Volume: 50 000 Ireland Volume: 8 000 Norway Region North Volume: 62 000 Norway Region Mid Volume: 59 000 Norway Region West Volume: 77 000 Norway Region South Volume: 56 000 Marine Harvest farming regions
Slide 12: MHG – 2014 Vertical Integrated
3. MHG – 2014 Vertical Integrated Leading position across the value chain 13 Bilder 220 thousand tonnes vs. global production of ~2.6m Marine Harvest business areas New #1 #1 405 thousand tonnes vs. global production of c.1.85m (22%) Global sales network Leading position in VAP Focus areas: Successf
Slide 13: Biology in focus
Biology in focus 14
Slide 14: Tough biological conditions in Chile
15 Tough biological conditions in Chile. . Weighted average EBIT/kg for selected listed companies in Chile and Rest of World
Slide 15: leads to strong cost increases
16 leads to strong cost increases . Weighted average EBIT/kg for selected listed companies in Chile
Slide 16: Declining yields per smolt for the industry
17 Source: Sernapesca and declining yields per smolt for the industry . Cannot rule out unprofitable operations next few years . Slight decline in industry volumes expected in 2014
Slide 17: MHG – Sea lice treatments per site in operation in Chile
MHG – Sea lice treatments per site in operation in Chile 18
Slide 18: The scientific and competent authorities question average MAB on sustainability
The scientific and competent authorities question average MAB on sustainabiliy 19 «The Norwegian Directorate of Fisheries also envisions that the environmental consequences of the proposal most likely will depend on how the flexibility is used, also more locally. Larger volumes of fish in the sea ma
Slide 19: Marine Harvest's Opinion
Marine Harvest’s Opinion › Aquaculture has a great potential in Norway: creating values in coastal communities while producing healthy and climate friendly food. Realizing this potential demands careful management and biological control. › In several countries, we have seen the dramatic consequences
Slide 20: Are you willing to take the risk?
Are you willing to take the risk? 21 - There is an agreement amongst industry players that the suggested regime change will lead to growth, however there are different opinions on the size of this growth. - The scientific and the competent authorities all agree that this growth will have a negative
Slide 21: Expectations for new Norwegian government
. Initial signals implies more liberal licensing regime . Introduction of average Maximum Allowed Biomass constraints . Assessment of current licensing system in general . This may lead to increased biological risk and reduced sustainability . Marine Harvest perceives this as a threat due to the ind
Slide 22: Outlook
Outlook 23 . Strong market poses attractive 2014 net cash flow opportunity . Forward prices of NOK 38 per kg in 2014 and 35 in 2015 . Significantly reduced level of investment . Strategic focus areas . Successful development of green-field feed capacity . Acquisitions in Norway and Chile . Integrati