Cermaq ASA Presentation for Pareto Securities Oslo, 14 th June 2012 1
2020 2015 2010 2005 2000 1995 1990 1985 1980 1975 1970 1965 1960 1955 1950 Aquaculture: a sustainable growth industry Our growing population is consuming more and more animal protein As most wild fish populations are already over-exploited, increased protein consumption per capita must be met by an increase in supply from aquaculture Million tonnes 160 120 80 40 0 Aquaculture and wild capture outlook Source: Food and Agriculture Organization of the UN Feed Conversion Ratio Total capture fish Aquaculture Salmon Poultry Pigs Beef cattle 0 1 2 3 4 5 6 7 FCR Farmed fish is one of the most efficient types of proteins: - can eat the same raw materials as land animals - converts feed more effectively than land animals - is healthier than meat - is environmentally sustainable 2
Cermaqs position in the value chain Terrestrial farming Salmon farmers Harvesting Processing Nutrients not suited for human consumption Nutrients attractive for human consumption 3
Cermaq Key Figures Full year 2011 (NOKm) FY 11 FY 10 Op. Revenues 11 634 9 991 EBITDA 1 686 1 778 EBIT pre gain* 1 369 1 342 Op. Cash flow 1 185 719 NIBD 1 052 1 181 Mainstream Volume (kt, gwe) 108.5 96.7 EBIT* 772 913 Chile 430 206 Norway 215 507 Canada 127 190 Scotland - 10 EBIT/kg (NOK) 7.1 9.4 EWOS Volume (kt) 1 081 876 EBIT* 625 509 EBIT/tonne (NOK) 578 581 EBIT % 6.7 % 6.9 % Best operating result in Cermaq history Strong Mainstream performance - 12% volume growth - Solid results despite reduced prices 2nd half - Chile recovery documented by strong operational and financial results Best EWOS result ever - 23% volume growth; 20% organic - Successful introduction of several new value added products - EBIT margin for 2011 of 6.7% Solid cash flow further improving financial ratios from 2010 - NIBD/EBITDA reduced to 0.62 - Equity ratio 59.5% * EBIT is EBIT pre fair value adjustments on live inventory 4
Solid financial structure NIBD (NOKm) 2 000 NEW 1 800 1 600 1 810 1 400 1 200 1 000 800 600 400 200 1 052 1 181-2 011 2 010 2 009 Significant NIBD reduction last two years despite large dividend and investments in 2011 Almost NOK 4 billion in available cash through long- and short term facilities A flexible financial structure with no maturity until 3 rd quarter 2013 Equity ratio as of December 2011 of 59% 5
Strong cash flow support capacity expansions Op. Cash flow (NOKm) 1 400 1 200 1 216 1 185 1 000 800 719 600 400 200-2 011 2 010 2 009 Improved operational cash flow in 2011 700 600 500 400 300 200 100 - Capex (NOKm) 574 390 402 2 011 2 010 2 009 Large capacity increase projects in Mainstream Chile and Norway 2012 capex level at around NOK 420 mill Completion of capacity increase projects in Mainstream Capacity expansion in EWOS Norway to meet customer requirements 6
Highlights Q1 12 CERMAQ Q1 12 Q1 11 Op. Revenues 2 328 2 286 EBIT* 101 403 EPS** 0.7 3.2 Op. Cash flow 98 730 Q1 Q4 11 ROCE*** 16.6% 22.1% NIBD 1 043 1 052 EWOS Q1 12 Q1 11 Volumes sold (kt) 229.6 164.0 EBIT 61.6 49.7 EBIT % 3.3 % 3.4 % EBIT per tonne 268.5 302.9 Mainstream Q1 12 Q1 11 Volumes sold (kt, gwe) 26.2 26.6 EBIT 59.5 340.3 EBIT per kg 2.3 12.8 EBIT of NOK 101m despite low salmon prices Good biological performance in all regions Strong volume growth in EWOS Norway and Chile Continued low debt and solid financial capacity Investment programs in EWOS and Mainstream on schedule Return on capital employed (12-month rolling average) 26,3 % 28,4 % 26,9 % 22,1 % 16,6 % * EBIT throughout this document is EBIT pre fair value adjustments on live inventory ** Earnings per share, adjusted *** Return on capital employed, 12-months rolling average, based on EBIT pre gain and fair value adjustments Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 7
Outlook 2012 Mainstream EWOS Estimated volume growth of 15% 19kt in Norway sold forward on financial contracts at NOK ~27/kr FCA Oslo Continued upward volume adjustments in market estimates Estimated volume growth of 15% Norway; above 10% Chile; above 20% Full year EBIT margin 5-7% Sales volumes FY 11 Q1 12 Q2 12 Q3 12 Q4 12 FY 12 (kt, gwe) ACT ACT EST EST EST EST Chile 49 13 5 11 22 51 Atlantics 15 4 4 7 8 23 Coho 24 8 1-12 21 Trout 10 1 0 4 2 7 Norway 38 10 13 16 15 54 Nordland 23 4 5 9 6 24 Finnmark 15 7 8 7 9 30 Canada 21 3 5 6 6 19 Total 109 26 23 33 43 125 Global harvest of Atlantic salmon ktonnes WFE Q1 12E Q1 11 FY 12E FY 11E REGION Canada 27 23 117 110 Chile 77 37 376 221 Norw ay 269 211 1 134 1 006 UK 35 33 149 155 Other 37 29 137 129 EST. HARVEST 445 334 1 912 1 620 Source: Kontali Analyse 8
Chile Brief update Mainstream Chile Operations cover 2,000 Km. 9
Salmon - An important export Industry in Chile US$K Export value (2011) 2,900 m US$ (Fourth largest export sector of Chile) Direct & indirect jobs 53,000 (unemployment in region X is 4.4%) Companies involved >25 10
Millons USD Millon USD 3.500 3.000 2.500 2.000 1.500 Export value by specie and distribution 1.000 3,500 500 3,000 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 ATLANTIC COHO TROUT 2,500 2,000 11% 11% 7% 9% 14% 11% 13% 14% 15% 14% 4% 1,500 1,000 500 5% 5% 5% 47% 37% 7% 6% 8% 40% 39% 9% 14% 12% 12% 14% 17% 6% 8% 14% 13% 36% 38% 33% 26% 22% 35% 39% 44% 37% 32% 29% 30% 24% 43% 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 JAPAN USA EUROPE LATIN AMERICA OTHER MARKETS 11
Mainstream 2 nd largest exporter in 2011 Export Value in US$ K 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 Aquachile Mainstream Chile Multiexport Los Fiordos Marine Harvest Salmones Antartica Trusal Australis Acuinova GMT Cupquelan Invertec CMC Ventisqueros 2010 2011 14 companies account for 75% of the export 12
Mainstream Chiles production process Freshwater Seawater Harvesting & Processing Logistics & sales 8 hatcheries 3 Lakes sites Placed in Region VII,IX, X, XII & XIV 63 sea water licenses Placed in X, XI & XII region 2 processing plants - Quemchi - Calbuco Focus on performance Focus on Margin 13
Biological Performance Atlantics Accumulate Mortality (%) 40% 20% 0% 2007 2008 2009 2010 2011 Atlantic Acc. % Mort. 22% 46% 30% 19% 12% Harvested Av. Weight (LWE) 4 000 2 000-200 7 200 8 200 9 Atlantic 201 0 201 1 Harvest Live W 4 090 2 955 3 444 5 115 4 994 4,00 3,00 2,00 1,00 0,00 Productivity (Kg/Smolt) 2007 2008 2009 2010 2011 Atlantic Bio/smolt 3,28 1,32 2,25 3,40 4,25 14
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