INTERIM PRESENTATION Second quarter, 2006

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1 INTERIM PRESENTATION Second quarter, 6 CEO Yngve Myhre CFO Bent M. Skisaker Agenda Operational Update Group Harvesting Processing Norway and Denmark Strategic considerations and Outlook Financials Income statement Cash Flow Balance sheets Interim Presentation Second Quarter 6 1

2 Highlights for the period Positive development in underlying operations EBITDA margin of 6.6% in Q 6 compared to.9% in Q Lower catch volumes in first half of 6 compared to same period of higher volumes left for second half Further increase in first hand prices of whitefish Improved price agreements with important customers Challenging regulatory framework Photo: Harald M. Valderhaug Interim Presentation Second Quarter 6 3 Quarterly figures Key indicators Operating Revenues EBITDA EBITDAmargin , ,9, 7,3 6,6 Q Q3 Q Q1 6 Q 6 Adjusted for nonrecurring items Q Q3 Q Q1 6 Q 6 Q Q3 Q Q1 6 Q 6 Interim Presentation Second Quarter 6

3 Harvesting: High firsthand prices Operating Revenues Q Q3 Q Q1 6 Q 6 EBITDA Q Q3 Q Q1 6 Q 6 High firsthand prices Increase in operating revenues in spite of lower catch volumes Lower volumes partly a result of optimizing catch patterns on cod Target EBITDA margins of +3% when adjusted for increased fuel cost of NOK 13 million YTD Regulatory changes reduce ability to optimize operations Five of the group s 1 operative vessels where laid up or fished for other species than originally planned due to delays in the dealing with applications for structural quotas Adjusted for nonrecurring items Interim Presentation Second Quarter 6 Harvesting: Landings and price Cod 6 Landing and price Towards a more stable catch pattern High prices in periods with low catch Price increase of 3% since Reduction in cod landings from Q to Q 6 of 18%*) Higher volumes left for second half of 6 Q1 Q Q3 Q Q1 Q Q3 Q Q16 Q6 Source: Norwegian Raw Fish Organisation 1 *) Source: Norwegian Raw Fish Organisation Interim Presentation Second Quarter 6 6 3

4 Harvesting: Optimizing catch pattern on cod Aker Seafoods Harvesting north of 6 N (MT) Cod Saithe Haddock Harvesting Q6 Q Cod reduced with % Haddock reduced with 66 % Saithe (incl North Sea quotas) increased with % Total harvesting reduced with 18 % Harvesting YTD 3 tonnes reduced catch of cod and haddock Increased catch of saithe 1 % lower catch volumes Q Q3 Q Q1 Q Q3 Q Q1 6 Q 6 Source: Company figures Interim Presentation Second Quarter 6 7 Processing Norway: High cost of raw materials Operating Revenues EBITDA Increased operating revenues Price increase Improved product mix Fresh fish share of 7% Lower sourcing of fresh cod High first hand prices still press margins however good development on prices on finished products Further margin pressure by FX development Unfavourable allocations of district quotas will reduce activity in AKS Q Q3 Q Q1 6 Q 6 Q Q3 Q Q1 6 Q 6 Adjusted for nonrecurring items Interim Presentation Second Quarter 6 8

5 Processing Norway: Fresh and frozen cod fillets Volume Prices Frozen fillets Fresh fillets 9 Fresh fillets Frozen fillets Price increase on frozen cod fillets of % first six months Jan Apr Jul Oct Jan6 Apr6 3 Jan Apr Jul Oct Jan6 Apr6 Source: Eksportutvalget Interim Presentation Second Quarter 6 9 Processing Denmark: Pressure on margins Operating Revenues EBITDA Yearonyear growth in all product segments High raw material prices Cod Salmon Reduced demand for salmon in MAP due to high prices margins under pressure Q Q3 Q Q1 6 Q 6 Q Q3 Q Q1 6 Q 6 Adjusted for nonrecurring items Interim Presentation Second Quarter 6 1

6 Strategic considerations and Outlook Strategic considerations Improvements in product mix cod filet History Target 6/7 (from IPO) New Target (78) Product Price Share Product Price Share Product Price Share Fresh loins 7, 1 % Fresh loins 7, 3 % Fresh loins IQF loins, % IQF loins, % IQF loins Wet pack, 3 % Wet pack, 3 % Wet pack, tails Block 3, % Block 3, % Block, Portions Average price 8,3 Average price 1,3 Average price, Target of average price on cod filet product mix set in the IPO process is already reached Increase in first hand prices bring along adjustment in target New ambition is to reach average price of NOK + per kg Further increase in share of fresh filets Interim Presentation Second Quarter 6 1 6

7 Strategic considerations Structural Issues Aker Seafoods Corp (Aker ASA s Deep Sea Division) Aker Seafoods Corp is a wholly owned subsidiary of Aker ASA Aker Seafoods ASA is currently operating as management for Aker Seafoods Corp Strategic growth As previously announced, Aker Seafoods is considering alternatives for strategic growth Interim Presentation Second Quarter 6 13 Outlook Market and operational development Continued high firsthand prices on white fish Higher prices for finished products secured with several key customers Further improvements in productmix are expected Structural changes in trawler fleet leaves fewer vessels but increased quotas Cod quotas increased by 1 percent from 1 July 6 Haddock quotas increased by 3 percent for 6 Anticipated reduction in cod quotas for 7, but increases for saithe and haddock Regulatory changes limit optimization of harvesting and processing Regulatory changes, including structural freeze, limit flexibility in working to optimize harvesting and processing Changes in delivery obligations and district quotas will further limit this flexibility Synergy outlook The ambitions for synergies and operational improvements are maintained for the longterm, yet presuppose further regulatory changes will not add negative effect Underlying operations develop in line with expectations, however we expect negative impact on margins due to macroeconomic factors such as regulations, oil prices and currency in 6 Interim Presentation Second Quarter 6 1 7

8 Financials Financials: Key figures NOK million Quarterly development Year to date Year Q Q3 Q Q1 6 Q 6 6 Operating revenues EBITDA EBITDA margin (%) EBIT Profit before tax Profit after tax Earnings per share,8,16,,68,8,88,76.76 Total assets Equity Equity ratio (%) 3, 3, 3, 3.9 Net interest bearing debt Interim Presentation Second Quarter

9 Financials: Cash Flow NOK million Quarterly development Year to date Year Q Q3 Q Q1 6 Q 6 6 Cash flow from operating activities Investment in fixed assets Other investments Cash flow from investing activities Cash flow from financing activities Total cash flow reporting period Effects of changes in FX rates on cash 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 Interim Presentation Second Quarter 6 17 Financials: Debt and Working Capital Net interest bearing debt Working capital Source: Råfisklaget Interim Presentation Second Quarter

10 Enclosures Financials Income statement NOK million Quarterly development Year to date Year Q Q3 Q Q1 6 Q 6 6 Operating revenues Operating expenses EBITDA Depreciation Operating profit Net financial items Profit before tax Tax on ordinary profit Net ordinary profit Minority interest Majority interest Earnings per share Interim Presentation Second Quarter 6 1

11 Financials Balance sheet Assets NOK million Quarterly development Intangible assets Tangible fixed assets Total intangible/tangible fixed assets Financial interestbearing fixed assets Financial interestfree fixed assets Shares and other equity investments Total financial fixed assets Total fixed assets Inventory Interestfree shortterm receivables Interestbearing shortterm receivables 1 Liquid assets * Total current assets Total assets *) Liquid assets including unused drawing facilities amount to NOK 7 million as at Interim Presentation Second Quarter 6 1 Financials Balance sheet Equity and liabilities NOK million Quarterly development Total shareholders' equity Minority interests Total shareholders' equity and minority interests Provisions and other interestfree longterm liabilities Interestbearing longterm debt Total longterm liabilities Interestfree shortterm debt Interestbearing short term debt Total shortterm liabilities Total shareholders' equity and liabilities Interim Presentation Second Quarter 6 11

12 Harvesting: Landings and price Haddock Landings (MT) and price (NOK/kg) Q1 Q Q3 Q Q1 Q Q3 Q Q1 6 Q 6 Source: Råfisklaget Interim Presentation Second Quarter 6 3 Harvesting: Landings and price Saithe Landings (MT) and price (NOK/kg) Q1 Q Q3 Q Q1 Q Q3 Q Q1 6 Q 6 Source: Råfisklaget Interim Presentation Second Quarter 6 1

13 Disclaimer This Presentation includes and is based, inter alia, on forwardlooking 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 6 13

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

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