Aker Seafoods Second quarter 2009 Sales of fresh products up, but prices down

Transcription

1 Aker Seafoods Second quarter Sales of fresh products up, but prices down CEO Yngve Myhre CFO Gunnar Aasbø Interim presentation second quarter 1 Welcome Agenda Topic Operational Update Group Harvesting Processing Norway and Denmark Processing France Financials Income Statement Cash Flow Balance Sheets Strategic Considerations and Outlook Q&A session Speaker Yngve Myhre, CEO Gunnar Aasbø, CFO Yngve Myhre, CEO Interim presentation second quarter 2

2 Highlights of the first half of Increased revenues from fresh sale despite decreasing prices Revenues decreased from MNOK in to MNOK in Increased fresh production Stable processing volumes Reduced prices on cod and haddock Higher harvested volumes haddock Group EBITDA came to MNOK 106 vs MNOK 134 in first half Both the harvesting and processing business areas are experiencing low cod prices Reduced fuel costs Write down of frozen and salt fish inventory of approx MNOK 20 YTD Substantial growth in the fresh fish market High focus on fresh production reduces the effect of the decline in prices Fresh cod consumption rose by 52% in France during the first five months of More stable prices toward the end of Interim presentation second quarter 3 Quarterly figures Key indicators Operating Revenues EBITDA EBITDA-margin (%) ,2 8,6 8,5 7,2 23 3, ,2 Interim presentation second quarter 4

3 Harvesting Aker Seafoods Stable volumes, reduced prices Operating Revenues EBITDA Volumes harvested YTD in are on the same level as in Quotas increased in, leaving higher volumes of quotas for the fall AKS has only harvested 45% of its cod quota in the first half of due to focus on haddock and saithe harvesting Oil prices in 09 are reduced by 44% since Interim presentation second quarter 5 Harvesting Norway Reduced prices* Norwegian cod landings and prices Tonnes round weight Price cod round weight NOK/KG = prices Source:The Norwegian Fishermen's Sales Organisation Harvesting prices on cod and haddock are reduced by 36% and 12% since Harvesting prices on saithe are up 5% since * Cod landings in 09 up 5% compared to Norwegian cod quotas increased by 20% in YTD landings down 4% *Source:The Norwegian Fishermen's Sales Organisation Interim presentation second quarter 6

4 Harvesting Aker Seafoods Significant volumes of cod left for 2nd half Aker Seafoods Harvesting (MT) Source: Company figures Cod Saithe N.sea Other 2007 Saithe North of 62d Haddock Volumes in 09 vs. Haddock: +34% Saithe north of 62p: -18% Cod: +1% AKS total harvesting increased by 4% in Combined fishing scheme and fleet restructuring expected to increase quota utilization Investments in harvesting enables AKS to increase volumes Interim presentation second quarter 7 Processing - Norway Increased fresh production Operating Revenues EBITDA High focus on fresh production and increased specialization Fresh fillet volumes have increased by 45% since Both fresh and frozen fillet prices are reduced compared to High raw material availability Increased production by 12% compared to Reduced raw material costs Write down of inventory of MNOK 10 in 09 MNOK 10 in 09 Interim presentation second quarter 8

5 Processing - Norway Fresh and frozen cod fillets from Norway Volume Tonnes Frozen fillets Fresh fillets Prices NOK Fresh fillets Frozen fillets vs Fresh -19% Frozen -21% 0 Jun- 07 Sep- 07 Dec- 07 Mar- Jun- Sep- Dec- Mar- 09 Jun Jun- 07 Sep- 07 Dec- 07 Mar- Jun- Sep- Dec- Mar- 09 Jun- 09 Source: Eksportutvalget for fisk Interim presentation second quarter 9 Processing Denmark and Sweden Reduces prices, but margin growth Operating Revenues EBITDA Consumer packed fresh fish (MAP) in Denmark keeps EBITDA on the same level as in, while revenues are down due to low prices Substantial decline in prices especially affects Denmark s fresh bulk products Sweden is experiencing low revenues Factory to be closed and business moved to Denmark Interim presentation second quarter 10

6 Processing France Increased revenues, low margins Operating Revenues EBITDA AKS France increases revenues from MNOK 121 to MNOK 172 in 09 High share of low margin salmon production High revenues from sale of farmed trout High volumes based on old contracts Medium/long term contracts with higher prices effective from 2nd half Reduced turbot prices Interim presentation second quarter 11 Agenda Topic Operational Update Group Harvesting Processing Norway and Denmark Processing France Financials Income Statement Cash Flow Balance Sheets Strategic Considerations and Outlook Q&A session Speaker Yngve Myhre, CEO Gunnar Aasbø, CFO Yngve Myhre, CEO Interim presentation second quarter 12

7 Financials Key figures (NOK million) YTD YTD 09 Operating revenues EBITDA 61 (13) EBITDA margin (%) 8.6 (2.2) EBIT 43 (45) (22) Profit before tax 13 (78) (83) (126) Profit after tax 9 (56) (49) (79) Earnings per share 0.19 (1.16) (1.00) (1.62) Total assets Equity Equity ratio (%) Net interest bearing debt Interim presentation second quarter 13 Financials Cash Flow (NOK million) YTD YTD 09 Profit before tax 13 (78) (83) (126) Sales losses/gains Depreciation and amortisation Changes in other net operating assets (58) (281) 88 (236) Cash flow from operating activities (19) (38) (13) (195) 157 (245) Cash flow from investing activities (76) 9 (51) (18) (25) (63) (43) (130) Cash flow from financing activities (56) (39) 114 (95) 233 Total cash flow reporting period (6) 15 (13) 4 16 (144) 19 (142) Cash and cash equivalent at the beginning of period Cash and cash equivalent at end of period Not utilized credit facilities Cash and cash equivalent at end of period, incl. credit facilities * *Aker Seafoods has, in addition, unused long term credit facilities from the banks of MNOK 79, and unused short term credit facilities from Aker ASA of MNOK 75 Interim presentation second quarter 14

8 Financials Debt and Working capital Net interest bearing debt Working capital Interim presentation second quarter 15 AKS strategy Financial update Net interest bearing debt est NIBD estimated to be reduced to MNOK by end of Reduction of approx MNOK 250 from 09 Share capital increase MNOK 180 Strategic investments Operational cash flow/financial restructuring incl. sales of non core assets Average interest margin on non-fixed interest bearing debt = 1.4% Interim presentation second quarter 16

9 Agenda Topic Operational Update Group Harvesting Processing Norway and Denmark Processing France Financials Income Statement Cash Flow Balance Sheets Strategic Considerations and Outlook Q&A session Speaker Yngve Myhre, CEO Gunnar Aasbø, CFO Yngve Myhre, CEO Interim presentation second quarter 17 Strategic considerations and outlook Cod and haddock stock in good conditions Estimate Thousand tonnes Stock development cod Total stock Breeding stock Safe level The North East Arctic cod and haddock biomass is larger than any other Atlantic cod stock Estimate Thousand tonnes Year Quotas cod and haddock Cod Haddock Quota recommendations for 2010 Cod +10% Haddock +25% Saithe -10% Year Source: The preferred Institute partner of Marine Research (Havforskningsinstituttet) Interim presentation second quarter 18

10 Strategic considerations and outlook AKS strengthens its fleet AKS purchased M/Tr Skaregg in August Licenses from M/Tr Ballstad will be transferred to Skaregg Strengthens AKS ability to optimize existing and future quota rights Two of AKS freezer trawlers are being upgraded to become combined fresh fish and freezer trawler Interim presentation second quarter 19 Strategic considerations and outlook AKS invests in new processing technology The processing plant AKS J.M. Johansen will undergo upgrading and become more modern with super chill technology Improves production efficiency, quality, product mix and capacity The upgrade costs are estimated at above NOK 30 million Largest one time investment since AKS acquired the plant in the 1990 s Costs of upgrades are mainly financed by Innovation Norway in addition to capital from AKS Interim presentation second quarter 20

11 Strategic considerations and outlook AKS France became a fully owned subsidiary In July, AKS acquired remaining 30% of the shares in AKS France Payment totals MEUR 8 over three years Strengthens AKS position in the group s largest market Secures production and distribution of fresh products in France Fresh cod consumption rose by 52% in France Interim presentation first second quarter quarter Outlook and concluding remarks Increased share of quotas remains for the rest of Available raw material of cod for - significantly increased from Increased production Low raw material prices expected to remain Decreased prices and reduced margins in harvesting Improved margins in processing expected Reduced cost Increased catch rate and efficiency in harvesting Low fuel costs expected to remain for Reduced fixed costs and increased productivity in primary processing Norway Unstable price situation Reduced prices increase demand Campaigns with large retailers Prices stabilized towards end of, but uncertain price development going forward Further price decrease will affect value of inventory Reduction of working capital through sales from inventory expected in + Investments in harvesting and processing to improve profitability Refinancing strengthens financial position Interim presentation second quarter 22

12 Aker Seafoods second quarter Enclosures Interim presentation second quarter 23 Financials Income statement NOK million YTD YTD 09 Operating revenues Operating expenses (650) (599) (607) (585) (659) (1 368) (1 243) (2 574) EBITDA 61 (13) Depreciation (26) (26) (32) (29) (29) (50) (58) (1) Non-recurring items 7 (6)* (14) (13) Operating profit 43 (45) (22) Net financial items (29) (34) (61) (22) (150) Profit before tax 13 (78) (83) (126) Tax on ordinary profit (4) (1) (3) (10) (4) 47 Net ordinary profit 9 (56) (49) (79) Minority interest 9 3 (11) Majority interest 0 (60) (37) (80) Earnings per share 0.19 (1.16) (1.00) (1.62) * NRIs in 3Q consists of losses related to the bankruptcy of Arctic Stockfish Aker Seafoods France included in the group accounts from Interim presentation second quarter 24

13 Financials Balance sheet - Assets NOK million Intangible assets Tangible fixed assets Total intangible/tangible fixed assets Financial interest-bearing fixed assets Financial interest-free fixed assets Shares and other equity investments Total financial fixed assets Total fixed assets Biological assets Inventory Interest-free short-term receivables Interest-bearing short-term receivables Liquid assets Total current assets Total assets *Aker Seafoods has unused long term credit facilities of MNOK 109. Aker Seafoods France included in the group accounts from Interim presentation second quarter 25 Financials Balance sheet - Equity and liabilities NOK million Total shareholders' equity Minority interests Total shareholders' equity and minority interests Provisions and other interest-free long-term liabilities Interest-bearing long-term debt Total long-term liabilities Interest-free short-term debt Interest-bearing short term debt Total short-term liabilities Total shareholders' equity and liabilities Aker Seafoods France is included in the group accounts from Interim presentation second quarter 26

14 Harvesting Landings and price - Haddock Landings (MT) and price (NOK/kg) = prices Source: Råfisklaget Interim presentation second quarter 27 Harvesting Landings and price - Saithe Landings (MT) and price (NOK/kg) = prices Source: Råfisklaget Interim presentation second quarter 28

15 Aker Seafoods Contact information Name Phone Yngve Myhre CEO Gunnar Aasbø CFO Marit S. Hval IR and press contact Aker Seafoods ASA Fjordalleen 16 PO Box 1301, Vika. N-0112 Oslo, Norway Interim presentation second quarter 29 Disclaimer This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Aker Seafoods ASA including subsidiaries and affiliates. These expectations, estimates and projections are generally identifiable by statements containing words such as expects, believes, estimates or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Aker Seafoods' businesses, fish prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Presentation. Although Aker Seafoods ASA believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. Aker Seafoods ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Aker Seafoods ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use. Interim presentation second quarter 30