Lerøy Seafood Group. Quarterly report First quarter May 8 th Ole-Eirik Lerøy. Ivan Vindheim. President & CEO CFO

Size: px

Start display at page:

Download "Lerøy Seafood Group. Quarterly report First quarter May 8 th Ole-Eirik Lerøy. Ivan Vindheim. President & CEO CFO"

Antony Warner
6 years ago
Views:

1 Seafood Group Quarterly report First quarter 2008 May 8 th 2008 Ole-Eirik President & CEO Ivan Vindheim CFO

2 Agenda 1. 1 Considerations 2. 2 Key financial figures Q at a glance 4. 4 Market glance

3 Internal considerations Q All figures in NOK mill Q1-08 Q1-07 Change Change Turnover % % EBIT bef adj biom % % Operating profit % % Affiliated comp % % PTP bef adj biom % % Pre-tax profit % %

4 Internal considerations Q Financially Solid Well positioned for future organic and strategic growth Production Modest harvest volumes in Q1 Approximately 18% of annual volume Higher salmon prices than Q4 07 Substantial drop compared to Q1 07 Cost pressure Sales and distribution Modest volumes Volatility in sales prices Headwinds of a weak USD Affiliated companies High production costs in Scotland (Norskott)

External considerations Q1 2008 Demand and supply Prices up 8.0% from Q4 07 Prices in Q1 2008 9.2% lower than Q1 2007 Supply growth from Norway YTD 4.

5 External considerations Q Demand and supply Prices up 8.0% from Q4 07 Prices in Q % lower than Q Supply growth from Norway YTD 4.8% Well balanced market Estimated supply Long-term trend in the demand for salmon Food inflation Political issues / trade barriers Positive signals from the EU?

6 Agenda 1. 1 Considerations 2. 2 Key financial figures Q at a glance 4. 4 Market glance

7 Income Statement Q All figures in NOK 000 Q Q Salgsinntekter / Operating revenues Vareforbruk / Cost of goods sold Lønnskostnader / Salaries and wages Andre driftskostnader / Other operating costs Ordinære avskrivninger / Ordinary depreciation EBIT før verdijustering biomasse / EBIT before fair value adjustment biomass Verdijustering biomasse / Fair value adjustment biomass Driftsresultat / operating profit Inntekt fra tilknyttede selskaper / Income from affiliated companies Netto finansposter / Net financial items Resultat før skattekostnad / Profit before tax Resultat før skattekostnad og før just biomasse/profit before tax bef adj biom Beregnede skatter / Estimated taxation Periodens resultat / Profit for the period

8 Balance Sheet Q All figures in NOK Immaterielle eiendeler / Intangible assets Varige driftsmidler / Tangible fixed assets Finansielle anleggsmidler / Financial fixed assets Sum anleggsmidler / Total fixed assets Varer / Inventories Fordringer / Receivables Betalingsmidler / Cash and equivalents Sum omløpsmidler / Total current assets Sum eiendeler / Total assets

9 Balance Sheet Q All figures in NOK Innskutt egenkapital / Equity contributions Opptjent egenkapital / Earned equity Minoritetsinteresser / Minority interests Sum egenkapital / Total equity Avsetning for forpliktelser / Accrued liabilities Langsiktig gjeld / Long-term liabilities Kortsiktige kreditter / Short-term loans Annen kortsiktig gjeld / Other short-term liabilities Sum gjeld / Total liabilities Sum egenkapital og gjeld / Total equity and liabilities

10 Cash Flow Statement Q All figures in NOK 000 Q Q Kontantstrøm fra drift / Cash flow from operating activities Resultat før skatt / Profit before tax Ordinære avskrivninger / Ordinary depreciation Endring kundefordringer / Change in accounts receivable Endring leverandører / Change in accounts payable Endring verdijustering biomasse / Change in value adjustment biomass Endring varelager / Change in inventories Resultat tilknyttede selskaper / Profit impact affiliated companies Betalt skatt og andre driftsposter / Taxes paid and other operating items Netto kontantstrøm fra drift / Net cash flows from operating activities Kontantstrøm fra investeringsaktiviteter / Cash flow from investing activities Netto investering i varige driftsmidler etc. / Net investment in fixed assets etc Netto utbetaling ved kjøp av aksjer etc. / Net payments for acquisitions of shares etc Netto utbetaling ved kjøp av konsernselskaper / Net acquisitions of group companies Endring langsiktige fordringer etc. / Change in long-term receivables etc Netto kontantstrøm fra investeringsaktiviteter / Net cash flow from investing activities Kontantstrøm fra finansieringsaktiviteter / Cash flow from financing activities Netto endring i kortsiktige kreditter / Net change in bank overdraft Endring langsiktig gjeld / Net change in long-term debt Netto innbetaling av egenkapital / Net equity contributions Utbetaling av utbytte / Dividend payments Netto kontantstrøm fra finansieringsaktiviteter / Net cash flow from financing activities Netto kontantstrøm for perioden / Net cash flows for the period Betalingsmidler ved periodens begynnelse / Cash and equivalents at beginning of period Betalingsmidler ved periodens slutt / Cash and equivalents at end of period

11 Key figures - Seafood Group Q Nøkkeltall / Key figures Q Q Resultatmargin / Profit margin 1) -10,04 % 5,90 % 5,86 % Driftsmargin før just.biomasse./ Operating margin before adj.biomass. 5,22 % 8,38 % 6,16 % Driftsmargin / Operating margin 2) -8,00 % 5,93 % 6,41 % Resultat per aksje før just.biomasse/ Earnings per share before adj.biomass 0,65 2,05 5,80 Resultat per aksje / Earnings per share 3) -1,73 1,40 5,75 Utvannet resultat per aksje / Diluted earnings per share -1,73 1,39 5,71 ROCE før just.biomasse (annualisert) / ROCE before adj.biomass (annualised) 5,57 % 14,09 % 9,85 % ROCE (annualisert) / ROCE (annualised) 4) -7,35 % 9,66 % 9,44 % Egenkapitalandel / Equity ratio 51,27 % 48,42 % 50,34 % Netto rentebærende gjeld / Net interest bearing debt Kontantstrøm per aksje / Cash-flow per share 5) 0,98 3,75 2,03 Utvannet kontantstrøm per aksje / Diluted cash-flow per share 0,98 3,72 2,01 1) Resultatmargin = Resultat før skatt/salgsinntekter 1) Profit margin = Profit before tax/revenues 2) Driftsmargin = Driftsresultat/salgsinntekter 2) Operating margin = Operating profit/revenues 3) Resultat per aksje = Majoritetens andel resultat / Gjennomsnittlig antall aksjer 3) Earnings per share = Majority interests / Average number of shares 4) ROCE = [Res. før skatt+nto fin.poster] / Gj.sn.[nto renteb. gjeld+sum egenkapital] 4) ROCE = [Pre tax profit+net fin. items] / Average[net interest bearing debt+total equity] 5) Kontantstrøm fra drift 5) Cash-flow from operations

12 Agenda 1. 1 Considerations 2. 2 Key financial figures Q at a glance 4. 4 Market glance

13 Seafood Group - Global organization Scotland/Shetland Farming Dist. & Sales Spain, Portugal, France Dist. & Sales Norway Farming Dist. & Sales Sweden Dist. & Sales Turkey Dist. & Sales Japan Dist. & Sales North America Dist. & Sales China Dist. & Sales Chile

14 Seafood Group ASA Sales Sales & Distribution Hallvard Hallvard AS AS 100% 100% Sverige Sverige AB AB 100% 100% Nordvik Nordvik SA SA 90% 90% Portnor Portnor Lda Lda 60% 60% Sjømatgruppen Sjømatgruppen ** ** Production Midnor Midnor AS AS 100% 100% Austevoll Austevoll AS AS 100% 100% Aurora Aurora AS AS 100% 100% Fossen Fossen AS AS 100% 100% Hydrotech Hydrotech AS AS 100% 100% Smøgen Smøgen Seafood Seafood AB AB 100% 100% Sigerfjord Sigerfjord Aqua Aqua AS AS 90.55% 90.55% Bulandet Bulandet Fiskeindustri Fiskeindustri AS AS 53.2% 53.2% Affiliated Norskott Norskott Havbruk Havbruk AS* AS* 50% 50% Alfarm Alfarm Alarko Alarko 50% 50% * Salmon farming ** Division national distribution

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

15 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) 12.5% share of Norwegian Seafood tot exports value 18.1% of Norwegian salmon export 26.0% of Norwegian value added salmon export Totally 1,698 employees Sales and distribution 441 Production and farming 924 Affiliates 333

16 Seafood Group Market strategy: Quality Branding Diversity in product range Diversity in customer base Market-oriented solutions Geographical spread Continuity in deliveries Cost efficiency

17 Seafood Group - Sales per market Q1 08 USA and Canada 5,6 % Norway 16,1 % Rest of Europe 6,9 % Others 2,0 % Asia Pacific 12,1 % EU 57,2 %

18 Seafood Group - Sales per product Q1 08 Other/other species 5,1 % Pelagic fish 1,2 % White fish 12,7 % Shellfish 5,4 % Salmontrout 6,2 % Whole salmon 43,7 % Processed salmon 25,7 %

19 Farming Norway Aurora AS Aurora AS Sigerfjord Aqua AS Midnor AS Hydrotech AS Fossen AS Austevoll AS Hydrotech AS Midnor AS Sigerfjord Aqua AS Fossen AS Austevoll AS

20 Seafood Group Salmon/trout farming Company Ownership Licences Mill. smolt E share No individuals GWT GWT GWT Midnor AS 100 % 28,0 9, Aurora AS 100 % 16,0 5, Fossen AS 100 % 7,0 4, Hydrotech AS 100 % 23,0 7, Austevoll AS*) 100 % 27,0 10, Total Norway , Norskott Havbruk AS (UK) **) 50 % 6, Total 41, Consolidated, farming Affiliated, farming *) Acquisition 2007, consolidated from **) LSG s share

21 Seafood Group Salmon/trout farming Company Ownership Volume Volume Share% Rest Share% share 2008E YTD Q Midnor AS 100 % 30,0 4,9 16 % 25,1 84 % Aurora AS 100 % 20,0 5,2 26 % 14,8 74 % Fossen AS 100 % 7,5 1,1 15 % 6,4 85 % Hydrotech AS 100 % 23,0 3,8 17 % 19,2 83 % Austevoll AS 100 % 18,5 3,0 16 % 15,5 84 % Total Norway 99,0 18,2 18 % 80,8 82 % Norskott Havbruk AS (UK) *) 50 % 13,0 3,1 24 % 9,9 76 % Total 112,0 21,3 19 % 90,7 81 % Consolidated, farming Affiliated, farming *) LSG s share

22 Key Figures Production Q Figures NOK million Midnor Hydrotech Aurora Fossen Austevoll Others / Elimination Total Revenues 138,2 100,2 128,7 40,2 72,0 68,3 547,6 EBIT befor biom.adj. 22,6 3,1 25,3 0,8 13,5-0,5 64,8 EBIT -51,8-26,6-24,7 1,8-7,4-0,5-109,2 Volumes (gwtt) 4,9 3,8 5,2 1,1 3,0 N/A 18,2 EBIT/kg 4,6 0,8 4,8 0,7 4,4 N/A

23 Norskott Havbruk LSG s share = 50% NOKm Q Q Revenues EBITDA EBIT bef adj biom EBIT Pre tax Volumes (gwtt) 6,3 6,9 23,8 Balance sheet Licences, Goodwill Tangible fixed assets Inventories Other current assets Total assets Equity Debt Total equity and debt Net interest bearing debt

24 Agenda 1. 1 Considerations 2. 2 Key financial figures Q at a glance 4. 4 Market glance

25 50 Fresh Atlantic Salmon Norway (4-5 kgs) price development week week (FHL/NSL) NOK/kg Figures per Source: FHL/NSL

26 Oslo Salmon export from Norway as of week Fresh atlantic salmon, cross-section, FCA. NOK / kg Oslo 46,00 44,00 42,00 40,00 38,00 36,00 34,00 32,00 30,00 28,00 26,00 24,00 22,00 20,00 18,00 16,00 14,00 12,00 Avrg. Q NOK (-9,2%) Avrg. Q NOK Avrg. Q NOK Avrg NOK (-22.1%) Avrg NOK Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03 Q4-03 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q ,04 21,77 20,16 20,76 20,42 18,92 18,09 20,35 22,38 23,10 21,26 20,23 23,44 24,89 26,86 25,94 28,24 39,72 34,44 25,92 27,47 25,00 24,34 23,10 24,94 23,88 W 1-02 W 9-02 W W W W W W 5-03 W W W W W W 1-04 W 9-04 W W W W W W W W W W W W W W W W W W W 4-07 W W W W W W W 8-08 W Quarterly price W eekly price Figures per Source: FHL/NSL

27 Market development for Atlantic Salmon from Norway Jan-April 2007 vs Jan-April 2008 Volume 2007 Volume 2008 Change Value 2007 Value 2008 Change EU ,6 % ,5 % Others ,1 % ,2 % Japan ,3 % ,1 % Russia ,9 % ,6 % USA ,9 % ,7 % In total ,5 % ,7 % (volume in tons round weight, value in thousand NOK) April 2008 is up 15.0% vs April 2007 in volume. (EU +15.7%, Others +12.7%, Japan -13.7%, Russia +35.1%, USA -4.2%) Figures per Source: NSEC

28 Atlantic salmon Supply in tons WFE Change Change Change Change Change Change E E 06-07E 2008 E 07E-08E Norway ,5 % % % % ,9 % ,8 % United Kingdom ,8 % % % % ,8 % ,4 % Faroe Islands ,9 % % % % ,7 % ,2 % Ireland ,5 % % % % ,3 % ,3 % Iceland ,7 % % % % ,0 % ,0 % Total Europe ,6 % % % % ,4 % ,4 % Chile ,7 % % % % ,3 % ,4 % Canada ,9 % % % % ,3 % ,1 % Australia % % % ,7 % ,0 % USA ,4 % % % % ,0 % ,3 % Others ,0 % % % % ,0 % ,0 % Total America ,5 % ,4 % % % ,2 % ,8 % Total World-wide ,2 % ,5 % ,6 % ,7 % ,0 % ,4 % Figures per Source: Kontali /

29 Drivers Salmon per Norway total export volume of Atlantic Salmon (224,374 MT WFE) % Norway total export value of Atlantic Salmon (NOK5,404m) % Norway EU (volume Atlantic Salmon) (162,762 MT WFE) % Norway EU (value Atlantic Salmon) (NOK3,922m) % Norway Russia (volume Atlantic Salmon) (19,363 MT WFE) % Sales of fish-feed in Norway week (223,178 MT) - 4 % MT = Metric Ton = 1 Ton Figures per Sources: NSEC / Kontali / FHL

FAO Food Price Index As per March 2008 the FAO Food Price Index is up 57% year on year 23% in 2007 Prices of nearly all food commodities have risen since the beginning of the

30 FAO Food Price Index As per March 2008 the FAO Food Price Index is up 57% year on year 23% in 2007 Prices of nearly all food commodities have risen since the beginning of the year supported by a persistent, tight supply and demand situation Source: FAO. Consists of the weighted average of the six commodities meat, dairy, cereals, oils and fats and sugar

31 Food s share of consumer spending US 11 % UK 20 % France 27 % Poland 31 % China 59 %

32 Going forward! Strong demand Reduced supply growth Continued consolidations Room for operational improvements

33 Thank you!

Lerøy Seafood Group. Quarterly report Second quarter August 12 th Ole-Eirik Lerøy. Ivan Vindheim. President & CEO CFO

Lerøy Seafood Group. Quarterly report Second quarter August 12 th Ole-Eirik Lerøy. Ivan Vindheim. President & CEO CFO Seafood Group Quarterly report Second quarter 2008 August 12 th 2008 Ole-Eirik President & CEO Ivan Vindheim CFO Agenda 1. 1 Considerations 2. 2 Key financial figures Q2 2008 3. 3 at a glance 4. 4 Market