Presentation of Cermaq North Atlantic Seafood Seminar Oslo, 8 th March 2012
Agenda Introduction to Cermaq Key results 2011 Focus on Mainstream Chile Outlook 2012 Photograph: Alf Børjesson 2
This is Cermaq A global leader in the aquaculture industry with production of feed to salmon and trout Two business units; EWOS and Mainstream EWOS: The world s 2 nd largest producer of salmonid feed market share of app. 36% Sales 2011: 1.081.000 tonns (97% salmonid feed) Mainstream: One of the world s largest salmon farming companies - market share of app. 7% Sales 2011: 108.500 tons (gwe) Total EBIT pre gain 2011 of NOK 1.369 mill Approx 4.000 employees Operations: Canada, Chile, Norway Scotland and Vietnam 3
Group Key Figures 2011 (NOKm) FY 11 FY 10 FY 09 Op. Revenues 11 634 9 991 8 972 EBITDA 1 686 1 778 858 EBIT pre gain* 1 369 1 342 524 EPS** 11.2 10.4 3.3 * EBIT is EBIT pre fair value adjustments on live inventory * * EPS reported adjusted for unrealised fair value adjustment Best operating result in Cermaq history; increased EPS from 2010 Strong Mainstream performance despite reduced prices 2 nd half Best EWOS result ever Solid cash flow further improving financial capacity from 2010 4
Dividend 2011 Proposed dividend for 2011 - NOK 4.63 per share - 40% of net result pre fair value* 600 - A total dividend of NOK 428m 500 400 428 500 300 200 100 139-2 011 2 010 2 009 5 * Dividend based on net income adjusted for fair value on biomass and financial instruments
Highlights Mainstream 2011 (NOK million, NOK per kg) FY 11 FY 10 FY 09 Volum es sold (kt, gw e) 108.5 96.7 108.3 Operating revenues 3 593.2 3 501.5 3 300.3 EBIT 771.5 913.3 175.1 EBIT per kg 7.1 9.4 1.6 (NOKm) FY 11 FY 10 FY 09 Chile 430.3 205.8 (172.0) Norw ay 214.8 506.7 182.5 Canada 126.5 190.5 163.0 Scotland - 10.3 1.6 ROCE (12-m onth rolling ave.) 18.8 % 22.1 % 4.3 % 12% volume growth mainly from growth in Chile Strong results despite a significant price reduction during 2011 - Chile recovery documented by strong operational and financial results - Start up cost of upgraded processing plant in Hammerfest Good biological conditions in all regions ROCE 19% in 2011 compared to 22% in 2010 - Lower salmon prices and increased biomass impact development 6
Highlights EWOS 2011 (NOK million, NOK per tonne) FY 11 FY 10 FY 09 Volum es sold (kt) 1 081.4 876.2 787.6 Operating revenues 9 366.9 7 388.4 6 250.6 EBIT 624.8 509.1 379.6 EBIT % 6.7 % 6.9 % 6.1 % EBIT per tonne 577.8 581.1 482.0 Return on capital employed (12-month rolling average) 19.1 % 25.4 % 20.8 % 23.5 % 23.2 % ROCE (12-m onth rolling ave.) 23.2 % 19.1 % 15.1 % Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Organic volume growth of 20% compared to 2010 Full year volume exceeded for the first time 1 mill tonnes Continued high share of value added feed Solid results from strong operations in all regions Start up of Pangasius feed production in EWOS Vietnam ROCE increased to 23% from 2010 7
Strong cash flow support capacity expansions 1 400 Op. Cash flow (NOKm) 700 Capex (NOKm) 1 200 1 000 1 185 1 216 600 500 574 800 600 719 400 300 390 402 400 200 200 100 - - 2 011 2 010 2 009 2 011 2 010 2 009 Improved operational cash flow despite reduced EBITDA Large investments from capacity increase projects in Chile and Norway 2012 investment level at around NOK 420 mill 8
Solid financial capacity and structure 2 000 1 800 1 600 1 400 1 200 1 000 800 600 400 200-1 052 NIBD (NOKm) 1 181 1 810 2 011 2 010 2 009 1 400 1 200 1 000 - Export facility MNOK 1.000 facility Facility C Facility B 1 600 Facility A 800 600 400 200 Cermaq maturity profile - MNOK Facility C MNOK 900 Facility B MNOK 600 Export facility MUSD 50 MNOK 1 000 facility Facility A MUSD 200 2012 2013 2014 2015 Significant NIBD reduction despite large dividends and investments - NIBD/EBITDA reduced to 0.62 A flexible and financial structure with no maturity until 3 rd quarter 2013 Equity ratio as of December 2011 of 59% 9
Mainstream Chile in brief Pto Montt Mainstream Chile 3 rd largest salmonid producer in 2011E Atlantic Salmon, Trout, Coho Aysén Selective breeding Hatcheries On land freshwater facilities Sea water operations in Region X, XI & XII 2 processing plants (incl VAP) Pto. Natales Freezing capacity 63 farming licenses Pta Arenas 53 10 1 S, 70 56 1 W 10 Source: Claro y Asociados 10
USD/lb Highlights Mainstream Chile 2011 Total Chile FY 11 FY 10 FY 09 Volumes (kt, gw e) 49.2 37.3 48.5 Revenues (NOKm) 1 609.0 1 152.5 1 315.4 EBIT (NOKm) 430.3 205.8 (172.0) EBIT per Kg (NOK) 8.7 5.5 (3.5) 32% volume growth in 2011 vs 2010 Chilean fresh fillets (3-4lb) FOB Miami UrnerBarry 6.25 6.00 5.75 5.50 5.25 5.00 4.75 4.50 4.25 4.00 3.75 3.50 3.25 3.00 2.75 2.50 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 2009 2010 2011 2012 Strong profit improvement during last two years - All species with solid results for 2011 Atlantic smolt release of 9 million for 2011; 10 mill for 2012E New seawater operation opened in Region XII in December 2011 - A volume of 7-10kt to be harvested from 2013 Good biological conditions continuous improvements - All fresh water Atlantic on land. Trout fresh water on land from 2012 11
A result of good operational performance 12
and continuous focus on preventive fish health Development in use of antibiotics MS Chile Atlantic Salmon Coho Trout Total 2008 2009 2010 2011 13
2012 Harvest and sales of Atlantic Salmon Harvest of Atlantic salmon 2008 2009 2010 2011E 2012E Norw ay 741 2 % 856 15 % 945 10 % 1 006 6 % 1 105 10 % Chile 403 13 % 239-41% 130-46 % 221 71 % 361 63 % UK 137 1 % 145 6 % 142-2 % 158 11 % 146-7 % Canada 119 8 % 115-3 % 118 2 % 110-7 % 114 4 % Faroe Isl. 38 97 % 48 27 % 42-13 % 57 35 % 66 16 % Ireland 11-25 % 15 30 % 18 20 % 16-11 % 16 1 % USA 17 38 % 16-4 % 18 10 % 19 3 % 19 4 % Australia 26 8 % 32 25 % 33 2 % 36 9 % 37 3 % Others 2-38 % 2-29 % 1-18 % 2 50 % 3 52 % Total 1 494 7 % 1 468-2 % 1 446-1% 1 623 12 % 1 867 15 % Source: Kontali Analyse Source: Kontali Analyse updated 24 th February 2012 Sales per r egion of Atlantic salmon ktonnes WFE Q4 11E Q4 10 FY 11E FY 10 FY 12E REGION EU 246 217 794 737 876 USA 79 65 283 257 332 Japan 15 11 44 34 52 Russia 47 33 123 100 137 China / HK 14 12 47 41 56 Brazil 13 8 42 34 55 Other 91 74 288 243 330 EST. SUPPLY 504 419 1 621 1 445 1 838 Source: Kontali Analyse; January 2012 14
Outlook 2012 Mainstream Estimated volume growth of 13 % 24kt from Norway sold forward on financial contracts at NOK 27 FCA Oslo High price volatility in 2012 from large supply increase in Norway and Chile Sales volumes FY 11 Q1 12 Q2 12 Q3 12 Q4 12 FY 12 (kt, gwe) ACT EST EST EST EST EST Chile 49.2 12.4 7.7 12.1 19.1 51.3 Atlantics 15.4 3.9 5.2 6.5 7.7 23.3 Coho 23.6 7.5 2.6-9.8 19.9 Trout 10.3 1.1-5.6 1.5 8.2 Norway 37.9 9.4 12.2 13.9 15.2 50.7 Nordland 22.7 2.9 5.2 8.4 6.2 22.7 Finnmark 15.1 6.5 7.0 5.5 9.0 28.0 Canada 21.3 2.3 5.3 5.4 7.2 20.2 Total 108.5 24.1 25.2 31.4 41.5 122.2 EWOS Expected market growth - Norway 4-6% - Chile 10-15% - Other markets fairly stable High share of value added feed to support fish health to continue EWOS Norway s capacity increase to be completed prior to peak season Full year EBIT margin 5-7% 15
Summary Cermaq`s best operating result ever Solid performance in both business areas Strong financial position and flexibility entering into 2012 NOK 4.63, 40% of net result proposed as dividend for 2011 Capital Markets Day 13th June 2012 16