Bakkafrost P/f · OSL:BAKKA

Bakkafrost P/f — Bakkafrost — Q3 2010 Earnings Presentation

23 slides from Bakkafrost P/f's earnings presentation, Nov 9, 2010

  1. Slide 1: Presentation Q3 2010

    Presentatio on Q3 2010 CEO Regin Jacobsen CFO Teitur Samuelsen Oslo Novem mber 9th 2010

  2. Slide 2: Disclaimer

    Disclaimer  This presentation includes statements rega arding future results, which are subject to risks and uncertainties. Consequently, actuual results may differ significantly from the results indicated or implied in these statem ments.  No representation or warranty (expressed oro implied) is

  3. Slide 3: Faroe Islands

    Faroe Islands  18 islands - 1,400 km2  48,600 inhabitants  Self-governing Self governing part of the Kingdom of Denmark  Part of the Danish monetary union  Key sectors (% of wage earners, 2008)  Service/public admin.: 35%  Private service: 33%  Fishing industry: 18%  GDP: DKK 12.4 bn (2008)

  4. Slide 4: Bakkafrost – The largest fish farming company in the Faroe Islands

    Bakkafrost – The largest fish farm ming company in the Faroe Islands ~75km  Largest salmon farming company in the Faroe Islands  ~44 % of harvest volumes (Q3 2010)  ~36 % of existing licenses (31.10.2010)  Vestlax was merged into Bakkafrost 1 January 2010 ~110km  Produced a total of 4,048 gwt i

  5. Slide 5: Faroe Islands: Excellent conditions for cost effective farming

    Faroe Islands: Excellent conditions for cost effec ctive farming Faroese fjords j provide p separation p between n locations Geography Average water temperatures 2002-2008 Improves biological control and area mana agement Faroe Islands Norway (Trøndelag) ºC 16 Stable water temperatures throughout

  6. Slide 6: Summary Q3 2010

    \i/ BAKKAFROST Summary Q3 2010 Page 6

  7. Slide 7: Summary Q3 2010

    Summary Q3 2010  Strong demand and high market prices Market  Favourable F bl spott prices i sttart t t tto b be passed d on into i t VAP contracts t t  Planned operational chang ges on track Strategy  Trout phased out  Strong financial position and a good outlook Financial  Strong performance

  8. Slide 8: Dividend Policy

    Dividend Policy  Dividend policy  Clarification on dividend  Bakkafrost aims to give its  The Board of Directors has decided to shareholders a competitive return on propose to the Annual General their investment, both through Meeting that if no M&As have taken payment of dividends from the place

  9. Slide 9: Largest Shareholders

    Largest Shareholders 10 Largest shareholders SalMar ASA 21.76% Havsbrún P/F 16.71% Jacobsen, Hans 9.40% Jacobsen, Jóhan Regin 9.19% Danske Bank a/s 5.51% JPMorgan Chase Bank 4.60% JPMPLSA, Nordea Lux 2.14% Royndin p/f 1.90% Morgan Stanley 1 55% 1.55% Pareto Securities 1.53% Total share 10 largest sh

  10. Slide 10: Financial Highlights Group

    Financial Highlights Group  Strong profit based on good performance Q3 2010 Q3 2009 (NO OK) Proforma  Strong market drives prices and margins up to record high levels Fa arming: North West North West  Very strong performance in West EB BIT* NOK/kg gwt 14.22 20.81 8.90 8.40 Ha arvested volumes 100

  11. Slide 11: Key Financials, Group

    Key Financials, Group Q3 2010 2009 (DK KKm) Proforma  Cash flow in Q3 2010 used to finance increase in biomass  Seasonable S bl Ca ash flow from operations -12 298  Increased production To otal assets 1,080 1,004  Low interest bearing debt NIIBD 80 251 Eq quity ratio 73% 57%  High equity ratio

  12. Slide 12: Segment Information

    SEGMENT INFORMATION Page e 12

  13. Slide 13: Segments Farming

    Segments Farming  Strong operating results Q3 2010 Q3 2009 (DKKm) Proforma  High prices on salmon and trout g  Good biological and operating p g performance Operatin ng revenues 158 212 Operatio onal EBIT* 59 60  Revenues down 25% in Q3 2010 compared with Q3 2009 but at Operatio onal EBIT margin

  14. Slide 14: Farming - Operational Performance

    Farming - Operational Performance  Operational EBIT* /kg and margin on high level  Hampered due to limited flexibility caused by high contract (VAP) share  West obtained record high margin in Q3-2010  Good biological performance * Aligned for fair value adjustment of biomass, onerous contracts p

  15. Slide 15: Farming - Harvest Volume [1,000 tonnes gwt]

    Farming - Harvest Volume [1,000 tonnes gwt] Q3 Q3 YTD YTD [tonnes gwt] 2010 2009 2010 2009  Harvested volume est West 915 9 5 2,745 , 5 4,278 , 8 7,653 ,653  41% reduction in Q3 2010 compared with North 3,133 4,069 10,855 14,061 Q3 2009  Harvested volumes will increase from Q4 2010. Estimated qua

  16. Slide 16: Segments VAP

    Segments VAP  Operating revenue increase by 32% Q3 2010 Q3 2009 (DKKm) Proforma  Volume decreased by 9% in Q3 2010 compared with Q3 2009, but offset at 45% Operating revenues 108 82 higher price level Operationel EBIT* -11 -9 Price index 145 100  Focus on efficient VAP production  VAP challenged

  17. Slide 17: Group Financials

    \Wl// GROUP FINANCIALS BAKKAFROST

  18. Slide 18: Group Profit and Loss

    Group Profit and Loss Q3 Q3 M9 M9 2010 2009 2010 2009 2009 (DKKm) Proforma Proforma Proforma  Revenues decreased by 22% but volumes Operating revenuess 177.7 228.4 567.7 657.4 921.7 decreased by 41% - strong Purchase of goods -112.0 -102.0 -206.4 -234.9 -272.6 market Change in inventoryy and biolog

  19. Slide 19: Balance Sheet – as per 30 September 2010

    Balance Sheet – as per 30 Septem mber 2010 30 Sept. End 2010 2009 (DKKm) Proforma Intangible assets 136.2 136.2  Invesments in PPE to carry out the organic growth Property, plant and equipment 350.2 331.1 Financial assets 16.3 16.4 Longg term receivables 0.7 0.5  Building up biomass as planned Bio

  20. Slide 20: Cash Flow – for Q3 2010

    Cash Flow – for Q3 2010 Q3 M9 2009 2010 2010 Proforma (DKKm)  Cash flow used to build up biomass to new level Operating profit 82.5 183.1 239.3 and to investments Cash flow from operations -12.4 111.9 298.1 Cash flow from investments -10.4 -50.5 -39.6 Cash flow from financing 16.4 -78.4 -234.7  St

  21. Slide 21: Outlook

    Outlook  A strong market with reduced supply lea ads to high price level  Higher contract prices will materialize in n 4Q 2010  Harvested volumes will increase from Q4 Q 2010. Expect to harvest 23,000 tonnes gwt in 2010 and 35,000 tonnes gwt in 2011.  Continue to pursue opportunities - organic a

  22. Slide 22: Strong expected volume growth in existing licenses

    Strong expected volume growth in existing licenses Smolt release (million) 7.9 7.5 6.3 +49% 0.3 3.0 5.5 5.3 34 3.4 Increased guidance of smolt release in 2010 from 7.0 1,4 2.1 1,4 million to 7.9 million 0.8 0.7 Expects to release 49% more smolt in 2010 than 2008 4.5 No absolute biomass restrictio

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