Sølvtrans Holding ASA Q1 2012 Oslo, 15 May 2012 Roger Halsebakk, CEO Jon Kvalø, CFO
1 Highlights in the quarter 2 Financial review 3 Operational and market review 4 Summary and outlook 5 Appendix
Highlights 1 st quarter 2012 80% utilization, up from 75% in Q1 2011 Continued YoY growth in revenues and results New state of the art vessel contracted 2 vessels transferred to Chile, and operations reinitiated Contract extension for Ronja Viking with SSC
1 Highlights in the quarter 2 Financial review 3 Operational and market review 4 Summary and outlook 5 Appendix
Financial highlights 1 st quarter 2012 Operating income NOK million 53.5 68.7 70.2 72.3 59.5 EBITDA NOK million 32.2 37.6 39.3 18.6 22.4 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Equity ratio % 30.9 % 29.8 % 30.1 % 30.9 % 31.0 % Net interest bearing debt NOK million 604 592 568 553 564 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12
Operating results 1 st quarter 2012 P&L NOK mill. Q1 2012 Q1 2011 Operating income 59.5 53.5 EBITDA 22.4 18.6 EBITDA margin 37.7 % 34.8 % EBIT 14.1 8.2 Net financial items 9.0 4.6 Pretax profit 5.1 3.6 Operating income Up 11 % increase of NOK 6,0 mill Utilization increased 5 % vs Q1 2011 Mobilization of two vessels to Chile Operating expenses Up 6 % due to higher crew costs (regulatory changes), maintenance and mobilization costs Continued EBITDA growth Increased 20 % vs Q1 2011 Improved EBITDA margin Depreciations reduced by NOK 2,0 mill Revised estimate for vessel residual value Net financial items of NOK 9.0 mill Net (unrealized) loss on agio and derivatives
Balance sheet 31 March ASSETS (NOK mill.) 31.03.12 31.03.11 31.12.11 Intangible assets 27 Fixed assets 946 949 9222 Other current assets 48 67 60 Cash 64 50 666 Total 1 058 1 093 1 049 EQUITY & LIABILITIES (NOK mill.) 31.03.12 31.03.11 31.12.11 Equity 328 338 3233 Non current liabilities 625 638 604 / Current liabilities 104 117 118 Total 1 058 1 093 1 049 2012 Cash of NOK 64 mill Used NOK 11,8 mill from high interest bond Vessels Book value of NOK 939 mill Includes installment NOK 23 mill on new vessel NIBD of NOK 564 mill Increase of NOK 11 mill since year end, mainly due to payment of installment on new vessel Stable NIBD / EBITDA = 4.3 Equity ratio of 31.0 %
Cash flow 1 st quarter 2012 22.4 7.5 9.4 25.1 78.2 3.5 35 10.4 63.5 Cash and EBITDA Net finance Change in bonds at outflow working 01.01.2012 capital Net investments Loan repayment Other Cash and changes bonds at 31.03.2012
Group financial profile Terms and conditions Fleet financing through Nordea and Sparebanken Møre Margin influenced dby NIBD/EBITDA ratio Covenants related to: NIBD/EBITDA Equity ratio Working capital level l Working capital (NOK million) 64.8 81.5 70.8 71.1 56.55 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Equity ratio % NIBD/EBITDA (12m rolling) 30.9 % 29.8 % 30.1 % 30.9 % 31.0 % 7.0 6.8 5.5 4.3 4.3 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12
1 Highlights in the quarter 2 Financial review 3 Operational and market review 4 Summary and outlook 5 Appendix
1 st quarter characteristics General characteristics Harsh weather conditions Low temperatures, leads to limited f ish farming activities and reduced spot activity in January, while picking up in February and March January and February preferred months for maintenance 1 st quarter 2012 All planned first half maintenance carried out in January Two vessels mobilized to and prepared for operations in Chile in February and March. Operations initiated April 21 st. 80 % utilisation rate, off hire in Q1 12 mainly related to Chile vessels
Fleet performance Utilization rate* Number of off hire days 100 % 90 % 92 % 95 % 93 % 97 % 92 % 96 % 300 250 200 80 % 80 % 80 % 150 70 % 75 % 100 60 % 50 50 % Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 0 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Incidents Maintenance Market related *Number of days with vessel revenue / total number of vessel days
Contracting of new vessel First vessel of a new generation Capacity of 3000 m3 State of the art the art technology and environmentally friendly solutions Delivery June 2013 Spanish shipyard Astilleros Zamakona S.A. Yard choice a strategic t decision i Design by Rolls Royce Marine
1 st quarter contract activity Two new contracts in Chile Ronia Pacific two years Ronia Austral three years Total contract value USD 15.5m Contract coverage per 15 May Contract textensions in Scotland with Scottish Salmon Company Ronja Viking two years from December 2012 93 % 50 % 14 % 2012 2013 2014
Re initiated operations in Chile Strong market outlook Industry recovery remains strong Tight well boat market kt Two contracts signed in February 2 and 3 years contract length Vessels prepared for operation, and tranferred to Chile during Q1 Operation commenced 21 April Vessels renamed Ronia Pacific and Ronia Austral
Sølvtrans Market Overrview Norway: 4 vessels with closed valve operating Scotland: Increased focus on long term charters Canada: Six vessels operating Ongoing market consolidation One vessel operating for Solid position and high ma arket share Prioritized market Cooke Aquaculture Norway Scotlan nd Canada East Chile: Strong demand for modern wellboats therefore decided to re initiate operations with two vessels Chile
Contract status per 15 May 2012 Vessel name Capacity (m 3 ) Year built Type * Lice equiped Country Employment at 15.05.12 2012 2013 2014 TBN 3 000 2013 Closed X Ronja Atlantic 1 940 2009 Closed X Norway Ronja Nordic 1 040 2008 Closed X Norway Ronja Harvester 1 940 2007 Closed X Norway Ronja Superior 1 040 2007 Closed X Norway Ronja Pioneer 1 040 2006 Closed Scotland Ronja Viking 1 040 2006 Closed Scotland Ronja Commander 940 2003 Closed Scotland Ronja Carrier 660 2003 X Canada Ronia Pacific 660 2003 Chile Ronja Settler 600 2002 Closed Scotland Roy Kristian 660 2001 X Nor / Scot. Ronia Austral 660 2001 X Chile Ronja Skye 600 2001 Closed Scotland Dec 12 Dec 13 Dec 12 Dec 13 Dec 13 Nov 14 Dec 13 Dec 12 May 14 Dec 12 Spot May 15 Dec 12
Modern fleet with leading technology Two vessels 1900 m3 Built 2007 and 2009 Closed Valve system and RSW Lice treatment equipped Five vessels 1000 m3 Built 2003 2008 Closed Valve system and RSW Two vessels equipped for lice treatment Six vessels 650 m3 Built 2001 2003 Two vessel s with Closed Valve system and RSW Four conventional (open valve) vessels Three vessel equipped for lice treatment
1 Highlights in the quarter 2 Financial review 3 Operational and market review 4 Summary and outlook 5 Appendix
Outlook Short term Continued growth in global salmon production epected expected Ongoing consolidation and professionalization among fish farmers Expect healthy development in earnings going forward Change in regulatory requirements leads to somewhat higher crew expenses Longer term Positive outlook for transportation of salmon and trout t Increased bio security focus Need for new technology and larger, more efficient i well boats
Summary Utilization up 5% pts despite vessel reallocation Continued YoY growth in revenues and earnings Re initiation of Chilean operations Next generation vessel contracted Continued healthy market outlook
Th k you for Thank f your y attention! tt ti! History.. now w 2nd quarter will be presented 16 Augustt 2012...the future
1 Highlights in the quarter 2 Financial review 3 Operational and market review 4 Summary and outlook 5 Appendix
Key Financials NOK mill Q1 2012 Q1 2011 2011 2010 2009 2008 Operating income and other revenue 60 54 265 254 221 189 EBITDA 22 19 128 85 87 96 EBIT 14 8 57 39 58 67 Net financial items 9 5 46 32 21 99 Profit or loss 5 3 2 1 83 22 Cash flow from operations 14 Net cash flow 33 Total assets 1 058 Equity 328 Net interest bearing debt (NIBD) 564 Cash and cash equivalents 64 Working Capital 57 6 20 44 88 8 21 33 46 3 37 1 093 1 049 1 116 1 060 965 338 323 335 190 107 604 553 571 765 745 62 78 112 25 22 65 57 105 38 42 NIBD / EBITDA (12 month rolling) 4.3 7.0 4.3 6.7 8.8 7.8 EBITDA margin 38 % 35 % 48 % 33 % 39 % 51 % Equity ratio 31.0 % 30.9 % 30.8 % 30.0 % 17.9 % 11.1 % Earnings per share in NOK 0.26 Equity per share in NOK 18.07 0.16 0.09 0.06 4.56 18.62 17.82 18.46 10.45 5.89
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. Such forward looking information and statements 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 Sølvtrans Holding ASA and its subsidiaries. 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 Sølvtrans Holding s businesses, salmon prices, oil 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. Although Sølvtrans Holding ASA believes that its expectations and the information in this Presentation were based upon reasonable assumptions at the time when they were made, it can give no assurance that those expectations will be achieved or that the actual results will be asset out in this Presentation. ti Sølvtrans Holding ASA nor any other company within the Sølvtrans Holding Group is making any representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the information in the Presentation, and neither Sølvtrans Holding ASA, any other company within the Sølvtrans Holding Group nor any of their directors, officers or employees will have any liability to you or any other persons resulting from your use of the information in the Presentation. Sølvtrans Holding ASA undertakes no obligation to publicly update or revise any forward looking information or statements in the Presentation.