Q October- December 2006

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Ronald McDonald
6 years ago
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1 Q October- December 2006

2 AGENDA - ALFESCA AT A GLANCE XG - RAW MAT BAROMETER XG - OVERVIEW BY COMPANY XG - ADRIMEX FOCUS AH - FINANCIAL DETAILS PP - OUTLOOK XG

3 AGENDA - ALFESCA AT A GLANCE XG - RAW MAT BAROMETER XG - OVERVIEW BY COMPANY XG - ADRIMEX FOCUS AH - FINANCIAL DETAILS PP - OUTLOOK XG

4 ALFESCA AT A GLANCE Good trend and good balance for the development of the Q2 activity per company. ALFESCA Selected convenience fine foods BLINIS SPREADABLES PRAWNS Q2 + 12% -8% +3% -30% +10% +8% +8% H1 + 14% +1% +7% -35% +9% +6% +9% Net revenues

convenience fine foods SMOKED SALMON SMOKED FISH FOIE GRAS REGIONAL PRODUCTS

5 Net revenues ALFESCA AT A GLANCE Good contribution of each pillar in the quaterly development ALFESCA Selected convenience fine foods ALFESCA Selected convenience fine foods SMOKED SALMON SMOKED FISH FOIE GRAS REGIONAL PRODUCTS BLINIS SPREADABLES PRAWNS Q % + 6,5% + 10,1% % H % + 7,6% + 7.8% %

6 ALFESCA AT A GLANCE ACQUISITION : Srengthening of the prawns pillar Europeanization of the prawns pillar Rebalance of the turnover ALFESCA ALFESCA Selected convenience fine foods Selected convenience fine foods SMOKED SALMON & FISH FOIE GRAS REGIONAL PRODUCTS BLINIS & SPREADABLES PRAWNS Total 202 M 110 M 27 M 168 M 88% Net revenues

7 ALFESCA AT A GLANCE EBITDA STRONGLY IMPROVING VS LAST YEAR Q Q Net revenues 235 M 221,5 M +6,1% EBIT 30,4 M 24,9 M +22,1% EBITDA 34,7 M 28,7 M + 21,0% EBITDA without extraordinary 33,1 M 28,7 M +15,3%

8 AGENDA - ALFESCA AT A GLANCE XG - RAW MAT BAROMETER XG - OVERVIEW BY COMPANY XG - ADRIMEX FOCUS AH - FINANCIAL DETAILS PP - OUTLOOK XG

9 NORWEGIAN SALMON NOK FHL Price 2000 to 2006 (Size 3/4 Kg in NOK/ kg) Estimated W06 S01 S04 S07 S10 S13 S16 S19 S22 S25 S28 S31 S34 S37 S40 S43 S46 S49 S52 FNL 02 FNL 05 FNL 01 FNL 03 FNL 04 FNL 06 FNL 07

10 NORWEGIAN SALMON Norvegian salmon ( as of 31/12/06 Source Kontali Jan 07) ESTIMATED STOCK PER 31/12/06 ESTIMATED STOCK PER 31/12/06 Individuals Biomass GENERATION SMOLTS N pieces Average Volime GENERATION SMOLTS N pieces Average Volime x 1000 weight (kg) WFE x 1000 weight (kg) WFE 05 S S , % 13% S , S , % 23% TOTAL GO TOTAL GO S , S , % 1% S , S , % 20% TOTAL G TOTAL O % 3% TOTAL G05+G TOTAL % 12% WFE Whole Fish Equivalent Date of sea water entry Estimated period of harvest Generation 04 S1 released at sea april may 04 July August 05-March 06 S0 released at sea autumn 04 April May 06 to July August 06 Generation 05 S1 released at sea april may 05 Sept-Oct 06 to March 07 S0 released at sea autumn 05 March- April 07 to July August 07 Generation 06 S1 released at sea april may 06 Sept Oct 07 to March 08 S0 released at sea autumn 06 April 08 to July-August 08

11 AGENDA - ALFESCA AT A GLANCE XG - RAW MAT BAROMETER XG - OVERVIEW BY COMPANY XG - ADRIMEX FOCUS AH - FINANCIAL DETAILS PP - OUTLOOK XG

12 LYONS FARNE VENSY FDK DELPIERRE BLINI LABEYRIE ADRIMEX

13 HIGHLIGHTS 2006 Positive : Good trends for the market Successful industrial move : Project «Under one roof»

14 COMMERCIAL INDICATORS Market trends (M ) Q2 +12 % Full year +13 % +4 % 51,1 57,2 36,1 = 36,1 215,4 243, ,8 Herring Market trends (tons) Chilled Frozen Chilled Frozen LYONS SALES (all products M ) Q2 Full year +12 % +19 % 26,3 29,3 100,6 119,

15 OUTLOOK 2007 Focusing a new products development : New concept «on go» New concept marinated prawns.

16 LYONS FARNE VENSY FDK DELPIERRE BLINI LABEYRIE ADRIMEX

17 HIGHLIGHTS 2006 Positive : Good partnership with TESCO Good industrial results Negative : Market trend on Christmas

18 COMMERCIAL INDICATORS Salmon Market trend (tons) SALMON MARKET TRENDS (Source TNS total UK market ). Value (M ) -5.9 % FARNE SALES Full year 06 Value (M ) +15% +7,4% 35,3 40,6 15,2 16, TESCO OTHERS CLIENTS

19 OUTLOOK 2007 New business with TESCO : Chilean frozen salmon cuts New innovative added cooked value products Dynamisation of the UK market with more promotions.

20 LYONS FARNE VENSY FDK DELPIERRE BLINI LABEYRIE ADRIMEX

21 HIGHLIGHTS 2006 Positive : Much better balanced client sales vs previous year Successful new specialities products launched on the Christmas period. Satisfactory industrial results Negative: Agressive development of PLB and negative impact on the branded products. Difficulties for increasing prices on the PLB

22 COMMERCIAL INDICATORS MARKET TRENDS VOL (NIELSEN + INTERNAL ) FULL YEAR % MARKET SHARE NIELSEN VOL: leader challenged by PLB low price position. 63,0% Herring Market trends (tons) BRANDS GROWTH IN THE MARKET 13,00% (+1.6pt) 7,6% 7,1% 4,2% (-2.4pt) (-0.3pt) (-0.2pt) (+0.2pt) 3,3% -2,00% PLB SKANDIA ROYAL DOMINGUEZ MARTIKO SALMON VOLUMES GROWTH FULL YEAR SKANDIA + 2 nd brand NATIONAL BRANDS PLB -3% PLB +8 % TAMS0206 TAMS0207 TAMS0206 TAMS0207

dynamise the market Gain of new clients expected

23 OUTLOOK 2007 Focusing on innovation on the core business (smoked salmon) Promotional activity to dynamise the market Gain of new clients expected for mid 2007 Industrial optimization plan on track

24 LYONS FARNE VENSY FDK DELPIERRE BLINI LABEYRIE ADRIMEX

25 HIGHLIGHTS 2006 Positive : Improvement of Delpierre profitability Gains of new clients for the salmon Good industrial results Successful launch of new products on the wet fish counter Negative : High competition on the smoked salmon market.

26 Salmon Market trend (tons) MARKET (IRI VOL) COMMERCIAL INDICATORS Smoked Salmon Herrings + 1,2% -2,9% DELPIERRE MARKET SHARE ( IRI VOL) Smoked Salmon Herrings 29,2% (+2.2pt) 16,6% 39,3% (+2.6pt) 26,7% (-2.1pt) 17,4% 18,2% (-5.7 pt) (+0.9 pt) (+0.2pt) 7,0% ( -0.2pt) 2,8% 2,0% (-0.2pt) (-0.2pt) Labeyrie Delpierre SetM PLB 1st Prices Delpierre PLB 1st Prices Fortfiller

27 Salmon Market trend (tons) VOLUMES Q2 Act vs LY in MT COMMERCIAL INDICATORS Smoked Salmon Herrings Salted Cod % -2.8% + 3%

SALMON OUTLOOK 2007 Key objective is to gain some

presence on a new sales space, the self service wet

HERRINGS Innovation is on track to modernize the image

FISH/MARINATED FISH A new innovation strategy will be

28 SALMON OUTLOOK 2007 Key objective is to gain some additional Private Label Brand and to strech our presence on a new sales space, the self service wet fish counter. HERRINGS Innovation is on track to modernize the image of herrings and enlarge its consumption SALTED FISH/MARINATED FISH A new innovation strategy will be implemented to become a key player on the self service wet fish counter with a range of marinated fish ready to eat or to cook.

29 LYONS FARNE VENSY FDK DELPIERRE BLINI LABEYRIE ADRIMEX

30 HIGHLIGHTS 2006 Positive Market trends well oriented on the tarama and spreadables markets Market shares strengthening on the blinis and tarama Negative Blinis market trend Poor BLINI performance on the spreadables

31 MARKET TRENDS Nielsen : Contrasted trends, overall dynamic markets Blinis -3,7% Tarama + 2,8% Spreadables + 21,6% VOLUME MARKET SHARE Nielsen : significant gains/losses on blinis and spreadables Blinis 30,8% +4,3 8,8% -0,6 50,1% Tarama 31,7% +1,0 4,2% -0,6 53,8% Spreadables 17,6% -4,8 19,4% +0,5 27,5% +3,4 +0-2,1 BLINI TASSOS PLB BLINI TASSOS PLB BLINI TASSOS PLB VOLUME Q2 Act vs LY (without Fram Foods) Nielsen : strong gains except in spreadables Blinis Tarama Spreadables ,9% + 4,7% -1,3% (Source Nielsen Dec

32 OUTLOOK 2007 Focusing on innovation to be different from the PLB : The fromage frais range The pancake range

33 LYONS FARNE VENSY FDK DELPIERRE BLINI LABEYRIE ADRIMEX

TV advertising campaign Good industrial results Good results of the 60th anniversary

34 HIGHLIGHTS 2006 Positive Market trends well oriented in 2006 Market shares strengthening on a full year basis, and on the season Very positive results for the new TV advertising campaign Good industrial results Good results of the 60th anniversary range Negative Christmas sales below expectation (Christmas conditions, Christmas calendar positioning)

35 COMMERCIAL INDICATORS (Full year ) MARKET (IRI Vol) : Steady growth Foie Gras +4.4% Smoked Salmon +1.2 % MARKET SHARE (IRI Vol) : Gains in both pillars Foie Gras Smoked Salmon 40,5% (+2,0pt) 16,6% 39,3% (+2,6 pt) 26,7% ( -2,10pt) 17,3% (+0,2pt) 11,3% (+0,9pt) 5,3% (+0,2 pt) 2,8% 2,0% (+0,6pt) 3,3% 0,9% (-1pt ) (-0,4 pt) ( -0.2pt) ( -0.2pt) Labeyrie Montfort Delpeyrat Larnaudie P.Gueraçague PLB Labeyrie Delpierre S et M PLB 1st Prices

36 MARKET (IRI VOL) : Salmon decrease COMMERCIAL INDICATORS(Xmas Nov+Dec) Foie Gras +2,4% Smoked Salmon -4,1 % MARKET SHARE (IRI VOL) : strong positions 40,1% Foie Gras (+1,5) Smoked Salmon 18,2% (=) 13,0% (+1) 5,2% (+1) 2,8% (-1 ) 0,8% ,8% (+1,3) 5,2% ( -0,3) 39,6% (+1,9) 15,6% (-1,9) Labeyrie Delpierre PLB 1st Prices Labeyrie Montfort Delpeyrat Larnaudie P.Gueraçague PLB VOLUMES GROWTH Q2 06/07 vs Q2 05/6 : Foie Gras Smoked Salmon +2,4% +2,2% / / / /07

37 Brand strengthening as a result of the new TV commercial campaign. LABEYRIE COMPETITOR N 1 MONTFORT STRONG AWARENESS : Jan 07 Jan 06 90% 82% 20% 17% EXCELLENT BRAND IMAGE (% of agreement) Items : - Premium brand - Desire to buy the brand - Icône of pleasure - Quality brand - Trustable brand 59% 63% 62% 72% 73% 17% 31% 34% 37% 34%

38 OUTLOOK 2007 SALMON Key objective is to go on strengthening our market share and brand loyalty on the core products through innovation : Concept : LABEYRIE s «good for me!» FOIE GRAS Focusing on innovation on the most profitable segments of the market with new ranges

39 LYONS FARNE VENSY FDK DELPIERRE BLINI LABEYRIE ADRIMEX

40 A D R I M E X Value-added added shrimps

41 RATIONALS FOR ACQUISITION Strengthening of a Alfesca s core pillars Adrimex leadership position Market evolution Room for synergies.

42 COMPANY PROFILE Turnover : 57 M Processed volume : T Global sales volume : T A processing plant in Nantes, Loire Atlantique (44) 120 employees

43 4 DEPARTMENTS CONCERNED

44 Traditional wet fish counter

45 Wet fish counter 2 or 3 kg bulk Shelf life 8 days

46 Wet fish counter self-service

47 Wet fish counter self-service Economical Shelf life 8 days 200 g 500 g 1 kgk

48 Wet fish counter self-service added value Shelf life 14 days

49 Seafood corner

50 Seafood corner Michel Adrien France Shelf life 21 days

51 Seafood corner - Michel Adrien Export Shelf life 21 days

52 Frozen department

53 Frozen department Michel Adrien Shelf life 18 months

PRAWNS STRATEGY IN FRANCE To strengthen our leadership position in FRANCE by: Developing strongly

Rebranding of the offer with the labels LABEYRIE and DELPIERRE Strong innovation policy To

Optimizing of the processing in MAP presentation with LYONS SEAFOODS Reduction of the commercial

54 PRAWNS STRATEGY IN FRANCE To strengthen our leadership position in FRANCE by: Developing strongly the sales of the added value products by taking advantage of: Fast trend of this market segment Rebranding of the offer with the labels LABEYRIE and DELPIERRE Strong innovation policy To improve rapidly the profitability of ADRIMEX by: Optimizing of the sourcing with LYONS SEAFOODS Optimizing of the processing in MAP presentation with LYONS SEAFOODS Reduction of the commercial and shipping costs with Delpierre/Labeyrie Same clients/same corner To strengthen our leadership position

55 Financials FDK 05-06

56 Financials Income statement Organic sales growth 6.3% YTD Q2 EBITDA 34.7m & 38.3m YTD - Up by 20% Q2 Net Income 19.4m and 17.7m YTD Up by 47% Income Statement Alfesca Oct.-Dec. 06 Jul.-Sep. 06 Apr.-Jun. 06 Jan.-Mar. 06 Oct - Dec '05 Jul - Sep '05 Apr - Jun '05 In thousands of Euros Q2 '06/'07 Q1 '06/'07 Q4 '05/'06 Q3 '05/'06 Q2 '05/'06 Q1 '05/'06 Q4 '04/'05 Net sales Cost of goods sold ( ) ( ) ( ) (93.980) ( ) (93.070) (90.740) Gross profit Other income (343) Operating expenses (18.048) (12.529) (13.457) (15.503) (20.345) (13.118) (12.323) Operating profit (897) (1.355) (2.222) Net financial expenses (2.867) (3.250) (2.137) (2.116) (2.459) (2.560) Earnings from associates (18) 0 (59) Net income before taxes (4.147) (1.248) (116) (3.879) 26 Income taxes (8.124) (6.596) (261) Net income after taxes (1.983) (2.114) (235) Minority interest Discontinued operations (3.523) (1.744) (625) (1.162) Net income (1.753) (603) (3.276) Depreciation EBITDA ,8% 3,1% 5,5% 5,0% 13,0% 2,9% 1,5%

57 Financials Salmon raw material price (4-5 kg FHL) 5,70 5,20 FHL prices /kg, 4/5 kg gutted salmon 4,70 4,20 3,70 3,20 2,70 2,20 1,70 Week: Year 2005 Year /2007 Average

58 Financials EBITDA Development Net Revenue EBITDA Q3 '04/05 Q4 '04/05 Q1 '05/06 Q2 '05/06 Q3 '05/06 Q4 '05/06 Q1 '06/07 Q2 '06/07 0

59 Financials Assets Inventory 77m Down by 32m from end of Sept. Receivables 158m Xmas now fully paid Balance sheet - Assets In thousands of Euros Intangible assets % % Operational assets % % Long-term investments % % Fixed assets % % Inventories % % Receivables % % Bank deposits and cash % % Current assets % % Non-current assets held for sale 0 0% % Total assets % % Equity & Liabilities Equity ratio 42% Long term liabilities Down by 14m Debt/Equity 72% vs 84% LY Net Cash - 56m Balance sheet - Shareholders equity and Liabilities In thousands of Euros Shareholders equity % % Deferred tax liabilities % % Obligations % % Long-term liabilities % % Long-term liabilities and obligations % % Bank loans % % Other current liabilities % % Current maturities of long-term debt % % Current liabilities % % Liabilities associated with assets classified as held for sale 0 0% % Shareholders equity and liabilities % %

60 Financials Senior Loans - Development okt.06 nóv.06 des.06 apr.05 maí.05 jún.05 júl.05 ágú.05 sep.05 okt.05 nóv.05 des.05 jan.06 feb.06 mar.06 apr.06 maí.06 jún.06 júl.06 ágú.06 mar.05 sep.06 Period M des.04 jan.05 feb.05

61 Financials Cash Flow Cash Flow FY 06/07 FY 05/06 1/7-31/12 1/7-31/12 Net profit for the period Items not affecting cash Depreciation Gain/loss on sale of assets (973) 53 Discontinued operations (229) Other calculated items (1.545) Working capital provided by (used in) operating activities Change in working capital (64.394) (71.930) Cash flow from operating activities (40.755) (45.314) Investing activities (221) Financing activities (2.486) Change in cash for the period (48.021)

Market presentation. February 2008

Market presentation. February 2008 Market presentation February 2008 1. Alfesca at a glance 2. Operational review by pillar Salmon and other fish Foie gras and duck products Prawns and other shellfish Blinis and spreadables 3. Financial