Austevoll Seafood Asa · OSL:AUSS
Austevoll Seafood Asa — Q4 2013 Earnings Presentation
43 slides from Austevoll Seafood Asa's earnings presentation, 2014
Slide 1: Q4 2013 Financial presentation
Q4 2013 Financial presentation Arne Møgster – CEO Britt Kathrine Drivenes – CFO
Slide 2: Highlights Q4 2013
Highlights Q4 2013 All figures in NOK 1.000 Q4 2013 Q4 2012 2013 2012 Revenue 3 623 526 2 731 852 12 409 756 11 170 879 EBITDA 592 710 204 111 2 226 108 1 170 071 Total assets 21 224 259 18 649 605 21 224 259 18 649 605 Equity 10 699 318 9 399 809 10 699 318 9 399 809 Equity Ratio 50 % 50 % 50 % 50
Slide 3: Company overview 2014
Company overview 2014 PERU CHILE NORTH ATLANTIC AUSTEVOLL SEAFOOD GROUP Activities 7% of anchovy quota 9.1% of pelagic fishing 2 fishing vessels* 400,000-500,000 tons of pelagic fish annually centre-north quota Harvesting 21 fishing vessels 5 fishing vessels (28 vessels) 130 salmon licenses 180,000
Slide 4: Pelagic
Pelagic Austral Group S.A.A FoodCorp S.A. Norway Pelagic Holding AS Welcon AS
Slide 5: Operation in Peru (Austral Group S.A.A)
Operation in Peru (Austral Group S.A.A) Q4 2013 Q4 2012 2013 2012 2014 E Own catch - anchovies 143 27 314 241 354 Own catch - mackerel and jack mackerel - - 9 26 30 Purchase - anchovies 48 11 143 114 91 Purchase - Human Consumption 2 1 8 11 5 Total ('000 MT) 193 39 474 392 480 2nd season Centre / No
Slide 6: Anchovy biomass in Peru (IMARPE)
Austevoll Seafood ASA Winter cruise 2013 Summer cruise 2013 Winter cruise 2012 Summer cruise 2012 Winter cruise 2011 NORTH-‐CENTRE ANCHOVY BIOMASS ACCORDING TO I MARPE C RUISES Summer cruise 2011 Winter cruise 2010 QUOTA SYSTEM Anchovy biomass in Peru (IMARPE) Summer cruise 2010 Winter cruise 2009
Slide 7: Plant optimisation
Plant optimisation • Fishmeal • Concentration on 4 plants optimizing fixed costs and future capex • Strategically located (Coishco, Chancay, Pisco, Ilo) • Paita, Chicama and Huarmey closed • Coishco increase capacity from 80MT to 160MT (completion projected Q4 2014) • All remaining plants fully comp
Slide 8: Operation in Chile (FoodCorp S.A.)
Operation in Chile (FoodCorp S.A.) Chile (*) Q4 2013 Q4 2012 2013 2012 2014 E Own catch - Mackerel and other species 17 19 58 72 75 Purchase - Sardine/Anchovy 6 15 36 111 55 Purchase - Giant Squid 1 - 4 - 6 Total ('000) 24 34 98 183 136 Mackerel Own catch 3 - 40 44 49 % of quota catch 95 % 100 % 100
Slide 9: North Atlantic pelagic quotas (2007-2014 est)
North Atlantic pelagic quotas (2007-2014 est) 5 000 Source: NSSL/ICES 4 500 219 115 432 84 139 4 000 143 161 82 340 374 82 393 127 3 500 1 700 40 216 606 33 391 292 1 250 540 250 3 000 381 20 146 41 390 643 '000 tons (TAC) 435 700 360 949 2 500 209 171 423 - 200 164 - 380 320 510 2 000 275 160 189 6
Slide 10: Welcon AS (Discontinued operation)
Welcon AS (Discontinued operation) Norway, UK and Ireland Q4 2013 Q4 2012 2013 2012 2014 E Welcon 103 116 363 427 388 Hordafor/Rossview 75 69 201 167 190 Total ('000 MT) 178 185 564 594 578 All volume based on 100% • Production for the quarter in line with expectations • Stabile prices on both meal
Slide 11: Norway Pelagic AS (Discontinued operation)
Norway Pelagic AS (Discontinued operation) Volume(MT) Q4 2013 Q4 2012 YTD 2013 YTD 2012 Raw material 149,000 154,000 374,000 430,000 intake Norway Pelagic AS • Seasonal high production quarter • Strong demand for mackerel. Intake volume for the quarter at the same level this year as last • Key seaso
Slide 12: Strategic consolidation – North Atlantic
Strategic consolidation – North Atlantic Transaction completed in January 2014 • AUSS and Kvefi AS (controlled by Kverva AS) established a 50 – 50 ownership in Pelagia AS. • Headquarter in Bergen. • AUSS contributed all shares in Welcon and NPEL as of 31 December, 2012. • Shares purchased in 2013, i
Slide 13: Locations and activities - Norway
Locations and activities - Norway Norway - 35 facilities Pelagia AS - 15 Mackerel landings 2013 Others 48 % 52 % Total herring landings 2013 41 % 59 % Capelin landings 2013 27 % 73 % Pelagia Others Source: Pelagia AS – All figures are based on landing in Norway 13 www.auss.no Austevoll Seafood ASA
Slide 14: Pelagia fishmeal
Pelagia fishmeal North Atlantic • Total raw material inputs for fishmeal 2013: 1,974,000 MT (Source: FHL/IFFO) 38 % 9% 24 % 6% 9% 35 % 3% Vedde Denmark Iceland/Faroe Welcon UFI Egersund 14 www.auss.no Austevoll Seafood ASA
Slide 15: Br. Birkeland AS
Br. Birkeland AS AUSS’s share = 49.99% • 2 pelagic purse seiners with maximum quotas in Norway • 7 salmon licenses in Norway (Hordaland) NOKm Q4 2013 Q4 2012 YTD 2013 2012 Revenues 162 122 429 363 EBITDA 64 29 154 68 EBIT before adj.biomass 55 21 118 35 EBIT 125 56 182 68 Pre tax 121 52 154 53 Balan
Slide 16: Salmon
Salmon Lerøy Seafood Group ASA
Slide 17: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA Q4 2013 Q4 2012 2013 2012 Revenue 3 229 606 2 410 552 10 764 714 9 102 941 Other gains 77 - 53 805 - EBITDA 505 697 209 990 1 938 474 774 866 EBIT 424 606 135 632 1 625 799 450 098 EBIT/kg (all inclusive) 10,30 3,30 11,20 2,90 Total Volume (GWT) 41 200 41 300 144 800 153 400
Slide 18: Lerøy Seafood Group ASA salmon/trout farming
Lerøy Seafood Group ASA Salmon/trout farming Company Licences Mill. smolt 2011 2012 2013 2014E No individuals GWT GWT GWT GWT Lerøy Aurora 17 7,5 18 100 20 000 24 200 25 000 Lerøy Midt 54 22,0 62 300 61 900 58 900 63 000 Lerøy Sjøtroll 59 22,6 56 200 71 600 61 700 69 000 Total Norway (consolidated)
Slide 19: Financials
Financials Q4 2013
Slide 20: Volume by products
Volume by products Q4 2013 Catch and purchase Figures in 1.000 tons Q4 13 * Q4 12* 2013* 2012* 2014 E Chile own catch 17 19 58 72 75 Chile purchase 7 15 40 111 61 Peru own catch 143 27 323 268 384 Peru purchase 50 12 151 124 96 Norway purchase (HC) 149 153 374 430 480 ** Norway/UK purchase (FM/FPC/O
Slide 21: Results
Results Q4 2013 (Proforma figures) AUSS Group AUSS Group incl. incl. All figures in NOK 1.000 Q4 13 Q4 12 (Restated) 2013 2012 (Restated) discontinued discontinued operation Q4 13 operation YTD (P) Q4 13 (P) Operating income 3 623 526 2 731 852 12 409 756 11 170 879 5 272 897 16 143 743 Operating ex
Slide 22: Fishmeal and fish oil
Fishmeal and fish oil Q4 2013 1 600 40 % 1 200 30 % MNOK 800 20 % 400 10 % - 0% Q4 13 Q4 12 2013 2012 Income 339 228 1 261 1 483 EBITDA 109 3 319 369 EBITDA % 32 % 2% 25 % 25 % - Figures are only from our South America operations 22 www.auss.no Austevoll Seafood ASA
Slide 23: Human consumption
Human consumption Q4 2013 800 80 % 60 % 600 40 % MNOK 400 20 % 200 0% - -20 % -200 -40 % Q4 13 Q4 12 2013 2012 Income 59 93 350 608 EBITDA -23 -11 -36 31 EBITDA margin -39 % -12 % -10 % 5% 23 www.auss.no Austevoll Seafood ASA
Slide 24: Salmon
Salmon Q4 2013 12 000 20 % 10 000 8 000 MNOK 6 000 10 % 4 000 2 000 - 0% Q4 13 Q4 12 2013 2012 Income 3 230 2 411 10 818 9 103 EBITDA 506 210 1 938 775 EBITDA % 16 % 9% 18 % 9% 24 www.auss.no Austevoll Seafood ASA
Slide 25: Pelagic North Atlantic (Discontinued operation)
Pelagic North Atlantic (Discontinued operation) Q4 2013 6 000 12 % 10 % 4 000 8% MNOK 6% 2 000 4% 2% - 0% Q4 13 Q4 12 2013 2012 Income 1 649 1 589 4 509 4 908 EBITDA 151 155 464 345 EBITDA % 9% 10 % 10 % 7% (100% of Norway Pelagic Holding AS and Welcon Invest AS turnover, EBITDA and EBIT, Proforma)
Slide 26: Balance
Balance Q4 2013 All figures in NOK 1.000 31.12.2013 31.12.2012 (Restated) Intangible assets 6 035 665 5 948 259 Fixed assets 4 095 855 3 812 963 Financial assets 1 145 026 695 761 Inventories 4 467 682 3 330 336 Receivables 2 290 511 1 628 914 Assets classified as held for sale* 1 793 241 1 071 111
Slide 27: Cash flow statement
Cash flow statement Q4 2013 Q4 2012 All figures in NOK 1.000 Q4 2013 YTD Q4 13 2012 (restated) (restated) Net cash flow from operating activities 64 580 227 413 1 361 625 897 247 Net cash flow from investing activities -271 266 -133 511 -1 812 050 -679 962 Net cash flow from financing activities -26
Slide 28: Market outlook
Market outlook
Slide 29: Fishmeal
Fishmeal Fishmeal production Regions Dec 2013 Dec 2012 2013 2012 • 2013 Fishmeal production by IFFO 6 up more than 9% vs 2012 ü Chile down 34% Chile# 24 687 30 886 317 057 483 009 ü Peru up 24% Peru 258 422 81 148 1 110 551 841 822 Danmark/Norway 9 922 12 211 218 518 171 843 • Limited unsold stock
Slide 30: Fishmeal
Fishmeal Main market – China • Off-take and stocks in China in balance ü Fishmeal off-take steady (12-15,000MT/ week); ü Current stocks at 140,000 MT vs 120,000 MT same period 2013 • Stock level expected to increase after Chinese New Year and running up to main season. Source: IFFO • Aqua season i
Slide 31: Fish oil
Fish oil Fishoil production Regions Dec 2013 Dec 2012 2013 2012 • Fish oil production by IFFO 6 down 15% in 2013 vs same 2012. # Chile 8 599 11 144 83 041 140 608 Peru 32 179 12 591 177 595 195 872 • Low yield from last season in Peru Danmark/Norway 2 575 4 366 69 048 64 585 Iceland/North Atlantic*
Slide 32: Norway Pelagic AS (Discontinued operation)
Norway Pelagic AS (Discontinued operation) Mackerel • 60,000MT of mackerel sold in Q4 2013 (69,200MT in Q4 2012) • Increase in prices last quarter • Good demand from the market. Herring • 48,600MT of herring products sold in Q4 2013 (38,800MT in Q4 2012) • Volume reduced mainly due to reduction in N
Slide 33: FoodCorp S.A.
FoodCorp S.A. Frozen fish • MarFood is focusing on frozen. • Amongst the leaders in the industry. • Average price 2013 (USD/MT) 1,236 (1,363 2012), due to alternative fish coming into Africa from other areas. ' 000 Frozen fish sales and prices - (Year 2013: 100% MarFood) 35 000 2000 31 021 28 641 29
Slide 34: Atlantic salmon consumption Q4 2013
Atlantic salmon consumption Q4 2013 Consumption Q4 2011 (tons) Q4 2012 (tons) Change 2012 Q4 2013 (tons) Change 2013 Russia 48 200 53 600 11 % 52 300 -2 % EU 239 600 259 600 8% 264 600 2% Other markets 120 700 145 800 21 % 154 300 6% USA 79 600 88 300 11 % 98 500 12 % Japan 16 700 15 300 -8 % 19 500
Slide 35: Conclusion
Conclusion Salmon • Strong performance from the salmon company • Limited growth in global salmon supply combined with strong demands, gives a strong outlook for the coming years Pelagic - South America • 2nd season 2013 quota for fishery in Peru 2.3 mill MT up from 0.8 mill MT same season 2012 ü Sa
Slide 36: Thank You
Thank You
Slide 37: Disclaimer
Disclaimer • This Presentation has been produced by Austevoll Seafood ASA (the • Should one or more of these risks or uncertainties materialise, or “Company” or “Austevoll”) solely for use at the presentation to the should underlying assumptions prove incorrect, actual results may vary market held i
Slide 38: Appendix
Appendix
Slide 39: Fishmeal and fish oil
Fishmeal and fish oil Q4 2013 NOK '000 Operating revenue EBITDA EBITDA % 800 000 40 % 747 120 34 % 712 199 33 % 32 % 700 000 29 % 29 % 30 % 593 802 600 000 19 % 20 % 20 % 20 % 20 % 18 % 18543 % 593 10 % 501 976 11 % 500 000 454 083 10 % 401 873 374 973 400 000 374 391 0% 380 589 339 028 318 455 300
Slide 40: Human consumption
Human consumption Q4 2013 NOK ‘000 Operating revenue EBITDA EBITDA % 310 000 46 % 25 % 21 % 22 % 20 % 260 000 248 948 14 % 14 % 3% 208 984 -8 % 210 000 -12 % -12 % -19 % 182 200 179 452 -25 % 169 047 -39 % 160 000 -39 % 140 343 141 512 137 229 128 049 -75 % 110 000 93 439 87 215 62 118 59 452 60 000
Slide 41: Salmon
Salmon Q4 2013 NOK '000 Operating revenue EBITDA EBITDA % 3 500 000 30 % 3 229 684 23 % 21 % 21 % 23 % 3 000 000 17 % 20 % 19 % 16 % 2 690 237 2 573 862 12 % 2 513 047 10 % 2 410 552 2 500 000 2 396 883 9% 9% 2 385 551 10 % 2 304 256 7% 2 225 129 2 250 605 2 305 879 9% 2 222 633 2 163 877 2 000 000
Slide 42: Norskott Havbruk AS (100% figures)
Norskott Havbruk AS (100% figures) LSG’s share = 50.0% NOKm Q4 2013 Q4 2012 YTD Q4 2013 2012 Revenues 316 236 1189 937 EBITDA 75 27 278 108 EBIT bef adj biom 61 15 221 55 EBIT 91 18 278 55 Pre tax 88 15 267 48 0 Volumes (gwt) 6,7 6,7 26,9 27,1 EBIT/kg 9,1 2,2 8,2 2,0 Balance sheet 31.12.2013 31.12.2
Slide 43: Villa Organic AS (100% figures)
Villa Organic AS (100% figures) LSG’s share = 49.40% YTD 2013 (period of NOKm ownership) Q4 2013 Q3 2013 Q2 2013 Q1 2013 YTD 2013 YTD 2012 Revenues 440 232 83 125 191 631 506 Other gains and losses 50 15 0 35 0 50 88 EBITDA 126 81 3 42 36 162 96 EBIT bef adj biom 92 64 -6 34 28 119 54 Volumes (gwt)