Leroy Seafood Group ASA · OSL:LSG
Leroy Seafood Group ASA — Lerøy Seafood Group — Q3 2009 Earnings Presentation
39 slides from Leroy Seafood Group ASA's earnings presentation, Nov 12, 2009
Slide 1: Lerøy Seafood Group Quarterly report Third quarter 2009
Lerøy Seafood Group Quarterly report Third quarter 2009 November 12th 2009 Helge Singelstad CEO Ivan Vindheim CFO 1
Slide 2: Agenda
Agenda 1 1. Considerations 2. 2 Key financial figures Q3 2009 3. 3 Lerøy at a glance 4. 4 Market glance 2
Slide 3: Highlights as per Q3 2009
Highlights as per Q3 2009 • Market • Organic growth (volumes) • Biology improved • RFS-cost falling • Capex reduced • NIBD down 3
Slide 4: Internal considerations Q3 2009
Internal considerations Q3 2009 All figures in NOK mill Q3 - 09 Q3 - 08 Change YTD Q3 09 YTD Q3 08 Change 2008 Turnover 1 946 1 522 28 % 5 290 4 354 22 % 6 057 EBITDA 326 169 93 % 788 385 105 % 534 EBIT bef adj biom 275 117 136 % 639 237 170 % 337 PTP bef adj biom*) 272 78 251 % 616 141 337 % 201 *)
Slide 5: Internal considerations Q3 2009 cont'd
Internal considerations Q3 2009 cont’d • Production • In total, volumes in line with 2009E and seasonality • Development in operations satisfactory • In general, lower production costs • Biological performance • Feed prices • Economies of scale • Lerøy Vest continues to develop well • Biology better
Slide 6: Internal considerations Q3 2009 cont'd
Internal considerations Q3 2009 cont’d Sales and distribution • Another very good quarter • High volumes • Economies of scale Affiliated companies • Satisfactory biological performance • Lower production costs and higher prices year on year (Norskott/Scottish Sea Farms) • Satisfactory performance ex
Slide 7: External considerations Q3 2009
External considerations Q3 2009 • Demand and supply • Spot prices seasonally down in Q3 • -9.6%, Q3 09 versus Q2 09 • 14.4% Q3 09 versus Q3 08 • However, lower gap between spot and contract prices. Export prices : • -5.9% Q3 09 versus Q2 09 • 13.0% Q3 09 versus Q3 08 • Significant supply growth from
Slide 8: Agenda
Agenda 1. 1 Considerations 2. 2 Key financial figures Q3 2009 3. 3 Lerøy at a glance 4. 4 Market glance 8
Slide 9: Income Statement Q3 2009
Income Statement Q3 2009 All figures in NOK 000 9
Slide 10: Balance Sheet Q3 2009
Balance Sheet Q3 2009 All figures in NOK 000 10
Slide 11: Cash Flow Statement Q3 2009
Cash Flow Statement Q3 2009 All figures in NOK 000 11
Slide 12: Key figures - Lerøy Seafood Group Q3 2009
Key figures - Lerøy Seafood Group Q3 2009 1) Resultatmargin = Resultat før skatt / Salgsinntekter Profit margin = Profit before tax / Revenues 2) Driftsmargin = Driftsresultat / Salgsinntekter Operating margin = Operating profit / Revenues 3) Resultat per aksje = Majoritetens andel resultat / Gjenno
Slide 13: Funding
Funding • Sound debt repayment profile • Bank loans and no “balloons” NOK million 2009 2010 2011 2012 2013 Instalments 217 249 230 215 214 • Covenants NIBD/EBITDA < 5 and Equity ratio*) > 30% • Q3 2009, 1.9 and 56.3% respectively • Satisfactory committed unused credit lines • Lower capex going forwa
Slide 14: Agenda
Agenda 1.1 Considerations 2.2 Key financial figures Q3 2009 3.3 Lerøy at a glance 4.4 Market glance 14
Slide 15: Lerøy Seafood Group - Global organization
Lerøy Seafood Group - Global organization Norway Farming Sweden Dist. & Sales Dist. & Sales Scotland/Shetland Farming Dist. & Sales Japan Spain, Portugal, Dist. & Sales Turkey France Dist. & Sales Dist. & Sales China Dist. & Sales North America Dist. & Sales Chile 15
Slide 16: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA Sales & Distribution Production Affiliated Hallvard Lerøy AS Lerøy West Norskott Havbruk AS** 100% 100% 50% Lerøy Sverige AB Lerøy Mid-Norway Alfarm Alarko Lerøy*** 100% 100% 50% Nordvik SA Lerøy North 90% 100% Portnor Lda Lerøy Fossen AS = Salmon farming, processing 60% 100%
Slide 17: Lerøy Seafood Group
Lerøy Seafood Group • • Global distribution network • Global distribution from Head Office in Bergen • Local distribution and processing in Norway, Sweden, France, Portugal and Turkey • Local representative offices in some key markets (France, Japan, China and USA) • 11.0% share of Norwegian seafood
Slide 18: Lerøy Seafood Group
Lerøy Seafood Group • Fully integrated • From roe to the plate • Competent employees • Decentralized farming units • Autonomous units in three regions • In addition, the affiliated company Scottish Sea Farms in Scotland • Processing plants • Smokehouses • Fillets, portions etc • Post / pre-rigor • C
Slide 19: Lerøy Seafood Group
Lerøy Seafood Group • Market strategy: • Quality • Presence in major seafood markets • Branding • Diversity in product range • Diversity in customer base • Market-oriented solutions • Geographical spread • Continuity in deliveries • Cost efficiency 19
Slide 20: Lerøy Seafood Group - Sales per market Q3 09
Lerøy Seafood Group - Sales per market Q3 09 20
Slide 21: Lerøy Seafood Group - Sales per product Q3 09
Lerøy Seafood Group - Sales per product Q3 09 Salmontrout 7,4 % Shellfish Others 4,5 % Pelagic fish 4,9 % 2,5 % White fish Whole salmon 7,2 % 45,8 % Processed salmon 27,8 % 21
Slide 22: Farming Norway
Farming Norway • Lerøy Aurora AS (salmon) • Sigerfjord Aqua AS (Arctic char) • Lerøy Midnor AS (salmon) • Lerøy Hydrotech AS (salmon) • Lerøy Vest AS (salmon and trout) 22
Slide 23: Lerøy Seafood Group – Salmon/trout farming
Lerøy Seafood Group – Salmon/trout farming Company Ownership Licences Mill. smolt 2008 2009E 2010E share No individuals GWT GWT GWT Lerøy Midnor AS 100 % 30 9,5 29 100 35 000 36 500 Lerøy Aurora AS 100 % 17 5,0 17 200 20 500 20 500 Lerøy Hydrotech AS 100 % 24 7,0 23 000 22 000 24 000 Lerøy Vest AS*)
Slide 24: Lerøy Seafood Group – Salmon/trout farming
Lerøy Seafood Group – Salmon/trout farming Company Ownership Volume Volume Share Rest Share share 2009E YTD Q3 % 2009E % Lerøy Midnor AS 100 % 35 000 23 600 67 % 11 400 33 % Lerøy Aurora AS 100 % 20 500 11 900 58 % 8 600 42 % Lerøy Hydrotech AS 100 % 22 000 13 000 59 % 9 000 41 % Lerøy Vest AS*) 100
Slide 25: Key Figures Production Q3 2009
Key Figures Production Q3 2009 *) *) **) Lerøy Others / Total Total Figures NOKm Lerøy Midnor Hydrotech Lerøy Aurora Lerøy Vest elimination Q3 2009 Q3 2008 Revenues 258,8 195,4 116,7 277,5 136,1 984,5 738,6 EBIT before biom adj 75,8 56,6 26,3 64,2 5,7 228,6 94,0 RoS before biom adj 29 % 29 % 23 % 23
Slide 26: Key Figures Production YTD Q3 2009
Key Figures Production YTD Q3 2009 *) *) **) Lerøy Others / Total YTD Total Figures NOKm Lerøy Midnor Hydrotech Lerøy Aurora Lerøy Vest elimination Q3 09 YTD Q3 08 Revenues 734,2 410,5 367,3 712,6 347,7 2 572,2 2 035,4 EBIT before biom adj 202,7 85,3 82,0 140,5 12,2 522,7 189,1 RoS before biom adj 2
Slide 27: Key Figures Sales & Distribution Q3 2009
Key Figures Sales & Distribution Q3 2009 Sales & Total Total Figures NOKm Distribution Elimination Q3 2009 Q3 2008 Revenues 2 059,0 -138,7 1 920,3 1 474,4 EBIT 51,3 0,2 51,5 35,2 RoS 2,5 % 2,7 % 2,4 % • Extremely good performance • High volumes • Economies of scale 27
Slide 28: Key Figures Sales & Distribution YTD Q3 2009
Key Figures Sales & Distribution YTD Q3 2009 Sales & Total Total Figures NOKm Distribution Elimination YTD Q3 2009 YTD Q3 2008 Revenues 5 636,7 -440,7 5 196,0 4 235,8 EBIT 133,2 0,6 133,8 75,6 RoS 2,4 % 2,6 % 1,8 % • Also an extremely good performance YTD 28
Slide 29: Norskott Havbruk
Norskott Havbruk LSG’s share = 50% NOKm Q3 2009 Q3 2008 YTD 2009 YTD 2008 2008 Revenues 240 174 627 536 772 EBITDA 50 18 147 77 94 EBIT bef adj biom 39 9 113 48 58 EBIT 22 20 136 50 56 Pre tax 19 14 127 31 31 Volumes (GWTk) 6,7 4,9 18,0 16,2 22,8 EBIT/kg 5,8 1,7 6,3 3,0 2,5 Balance sheet 30.09.2009
Slide 30: Agenda
Agenda 1.1 Considerations 2.2 Key financial figures Q3 2009 3.3 Lerøy at a glance 4.4 Market glance 30
Slide 31: Salmon stuffed with vegetables
Salmon Key Figures Sales stuffedQ3with & Distribution 2009vegetables 31
Slide 32: Market development for Atlantic Salmon from Norway, Jan-Sep 2008 vs Jan-Sep 2009
Market development for Atlantic Salmon from Norway. Jan-Sep 2008 vs Jan-Sep 2009 Volume 2008 Volume 2009 Change Value 2008 Value 2009 Change EU 375 803 410 675 9,3 % 9 321 023 11 837 358 27,0 % Others 66 524 66 821 0,4 % 1 580 005 2 000 893 26,6 % Japan 17 123 20 316 18,6 % 488 320 681 396 39,5 % Ru
Slide 33: Market development for Atlantic Salmon from Norway, Jan-Sep 2008 vs Jan-Sep 2009
Market development for Atlantic Salmon from Norway. Jan-Sep 2008 vs Jan-Sep 2009 "Others" Volume 2008 Volume 2009 Change Value 2008 Value 2009 Change Hongkong 9 669 11 354 17,4 % 263 295 367 648 39,6 % Ukraine 14 176 8 302 -41,4 % 202 987 161 877 -20,3 % China 5 887 6 877 16,8 % 146 404 216 508 47,9
Slide 34: NOK/kg FCA Oslo 4-5kg
NOK/kg FCA Oslo 4-5kg 10 15 20 25 30 35 40 45 50 1997-1 1997-10 1997-19 1997-28 1997-37 1997-46 Figures as per 05.11.09 1998-3 Source: FHL/NSL/NOS 1998-12 1998-21 1998-30 1998-39 1998-48 1999-4 1999-13 1999-22 1999-31 1999-40 1999-49 2000-6 2000-15 2000-24 2000-33 2000-42 2000-51 2001-8 2001-17 2001
Slide 35: SPOT prices, fresh Atlantic salmon, FCA Oslo, week 44-2009
Avrg. Q3 09 NOK 31.72 vs avrg. Q3 08 NOK 27.72 (+14.4%) SPOT prices, fresh Atlantic salmon, cross-section, Avrg Jan-Sep 09 NOK 31.68 vs avrg Jan- FCA Oslo, as of week 44-2009 (Superior quality). Sep 08 NOK 25.89 (+22.4%) Avrg 08 NOK 25.75, avrg 07 NOK 24.97 46,00 44,00 42,00 40,00 38,00 36,00 34,00
Slide 36: Atlantic salmon – Supply
Atlantic salmon – Supply in tons WFE Figures as per 05.11.09 Source: Kontali / Lerøy 36
Slide 37: Drivers Salmon as per 31.10.2009
Drivers Salmon as per 31.10.2009 Norway total export volume of Atlantic Salmon (659,923 MT WFE) + 14.5 % Norway total export value of Atlantic Salmon (NOK18,986m) + 32.4 % Norway – EU (volume Atlantic Salmon) (472,582 MT WFE) + 10.5 % Norway – EU (value Atlantic Salmon) (NOK13,419m) + 26.6 % Norway
Slide 38: Going forward!
Going forward! •Satisfactory financing •Lower capex •Operational improvements •Good demand for seafood •Improved profitability •Continued consolidations •Create sustainable shareholder value • Annual dividend since 1995 • Share liquidity • AUSS sold shares in Q2 09 • Share price 38
Slide 39: Thank you !
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