Notice to shareholders; Villa Organic AS fourth quarter 2012 Highlights fourth quarter 2012 The average prices were approximately at the same level as Q3, but improvement was observed towards the end of the quarter. EBIT before biomass adjustments was NOK -5,2 million in Q4 2012, against NOK -17,3 million in Q4 2011. Write down of biomasss related to an outbreak of cold water vibriosis ( Hitrasjuka ) at one site in Finnmark reduced the result with NOK 14 million in Q4. Reduced production costs due to operational improvements continued also in the fourth quarter. The reduction was less than expected due to the outbreak of cold water vibriosis at one site. For the year as a whole the cost of goods sold was reduced with 13%. The underlying biological development and operation has been good in the quarter with the exception of the mentioned disease affected site. Harvested volume was 3 374 tons (HOG) Q4, which is about 274 tons more than earlier communicated. Net interest-bearing debt was NOK 270,6 million at the end of the quarter, and the equity ratio was 44%. 1
Operations in fourth quarter The biomass growth in Finnmark during the quarter has overall been as expected. The biological situation has been challenging at one of the sites in Finnmark due to cold water vibriosis. For the other sites the biological situation has been satisfactory throughout the quarter. In eastern Finnmark the sea lice challenge is limited and fully managed. The biomass per January 1 st was 10 779 tons, of which 7 061 tons from the 2011 generation and 3 718 tons from the 2012 generation. The number of smolts put into the sea in 2012 was 4.5 million. This is 7% more than in 2011. The size of the smolts released was 43% larger compared to 2011. Mortality during the first period in sea has been reduced, but is still not at a satisfactory level. Villa is working with measures to reduce mortality in general and mortality related to the first months in sea in particular. The market for Atlantic salmon had a strong supply increase also in the fourth quarter. The volumes increased by about 11,5 % compared to 2011. The spot price during the quarter was on average NOK 3,5 per kilo higher than in the same quarter in 2011. The overall price achieved was 4 % higher than the reference price 1. The volume harvested in the fourth quarter of 2012 was 3 374 tons (HOG), which is 5% less than in the fourth quarter of 2011. Villa has an ongoing improvement program. The objective of this program is to reduce production costs and improve profitability. The cost of fish harvested has been reduced with 2 % compared to the same quarter 2011.The costs of the biomass in the sea was also reduced compared to earlier generations. The feed cost for the biomass harvested during the period was in line with the level in the corresponding period in 2011. Compared to third quarter, the feed costs have increased as the higher feed prices have started to materialize in harvested biomass. 1 Average superior price per kilo gutted weight (NOS/FHL FCA Oslo) 2
Key financial figures The income in Q4 2012 was MNOK 124,2. EBITDA for the period was MNOK 9,9. EBIT was MNOK -19,2. The result was affected negatively by exceptional items with NOK 14 million in the quarter. This item was related to a write-down on biomass due to high mortality at one site. The equity ratio at the end of the year was 44 % 2. Villa Organic (group) Key Financial figures (1 000 NOK) Q4 2012 Q4 2011 pr Q4 2012 FY 2011 FY 2010 Total Income 124 209 167 238 611 861 526 881 524 622 EBITDA -9 936-16 390 94 844 19 480 95 722 EBIT -19 222-27 073 54 734-20 056 67 431 Profit/loss before tax -24 671-29 706 30 090-38 258 44 401 Harvest Volume (HOG) Finnmark tons 3 374 3 551 14 012 8 425 10 114 Harvest Volume (HOG) Romsdal tons - - - 804 429 Harvest Volume (HOG) Total tons 3 374 3 551 14 012 9 229 10 543 EBIT NOK/kg -5,70-7,62 3,91-2,17 6,40 EBIT NOK/kg non-recurring item is excluded -1,55-4,86-2,92-1,69 Balance Sheet: Fixed Assets 293 999 356 297 321 372 Current Assets 416 814 395 763 449 100 Total Assets 710 814 752 060 770 472 Equity 314 603 257 353 276 755 Long Term Liabilities 208 074 317 735 276 856 Current Liabilities 188 136 176 972 216 861 Total Equity and Liabilities 710 814 752 060 770 472 Equity Ratio 44 % 34 % 36 % 2 Before tax calculation on the year end result 3
Outlook Villa expects to harvest approximately 13 000 tons gutted weight in 2013. The harvested volume in the first quarter of 2013 is expected to be approximately 4 000 tons (HOG). The average prices for Atlantic salmon during the fourth quarter reflect a reduction in the global supply growth. For 2012 the estimated supply increase was about 22 %. Estimates for 2013 volumes show a supply change that varies from a decrease of 1% (low) to an increase of 2 % (high) compared to 2012. This significant change in growth dynamics in 2013 is expected to be reflected in the market prices. So far in 2013 we have seen rising prices and we expect that prices will stay at such a high level in the months to come. Molde, 27 February 2012 Board of Directors - Appendix: o Quarterly Financial statement pr 31.12.12 o List of shareholders pr 27.02.13 4
Financial Statement Numbers in NOK 1 000 Q4 2012 Q4 2011 Per Q4 2012 FY 2011 FY 2010 Operating Income 112 368 167 450 488 939 502 895 522 727 Other Income 11 841-211 122 922 23 985 1 896 Total Income 124 209 167 239 611 861 526 880 524 623 Changes in Inventory -6 542 4 305 8 284-54 454-46 625 Cost of goods 94 049 117 598 347 442 395 451 361 868 Wages 17 879 22 265 63 154 59 912 57 161 Other operating costs 28 759 39 461 98 138 106 491 56 479 EBITDA -9 936-16 390 94 844 19 480 95 740 Depreciation 9 285 10 683 40 110 39 535 28 308 EBIT -19 222-27 073 54 734-20 055 67 432 Net financial items 5 449 2 633 24 644 18 202 23 030 Profit/loss before tax -24 671-29 706 30 090-38 257 44 402 5
Balance sheet numbers in 1 000 NOK ASSETS Non-current Assets 31.12.2012 31.12.2011 31.12.2010 Intangible assets Licences 23 621 43 492 55 092 Deferred Tax Asset 50 434 49 734 40 756 Goodwill 278 450 567 Total Intangble Assets 74 332 93 676 96 415 Property, buildings etc 44 918 47 385 32 582 Machinery, Equipment and other 169 692 208 850 181 289 Total Fixed Assets 214 610 256 236 213 871 - Investment in subsidiaries Own shares Investment in associated entities - 3 678 Other investments 58 8 8 Long term loans 5 000 6 378 7 400 Total Financial Fixed Assets 5 058 6 386 11 086 - Total non-current assets 293 999 356 297 321 372 Current assets Inventory 300 267 312 402 312 112 Accounts receivables 63 573 53 360 62 045 Other accruals, 30 559 18 102 22 592 Intercompany - - Bank deposits, cash at hand 22 416 11 899 52 351 Total Current Assets 416 814 395 763 449 100 - Total Assets 710 814 752 060 770 472 6
EQUITY AND LIABILITIES Equity 31.12.2012 31.12.2011 31.12.2010 Share Capital 142 330 118 330 118 330 Own Shares -1 Share Premium 142 853 137 570 137 570 Total Restricted Equity 285 183 255 900 255 899 Retained Earnings Other Equity -161 54 20 856 Result brought forward 30 090 1 400 - Total Retained Equity 29 929 1 454 20 856 Total Equity 315 112 257 354 276 755 Liabilities Deferred tax 699 - Bond 100 000 183 500 200 000 Liabilities to financial institutions 49 879 54 294 1 647 Other long term debt, leasing 57 496 79 941 75 209 Total Long Term Liabilities 208 074 317 735 276 856 Current Liabilities Liabilities to financial institutions 84 975 87 654 138 866 Accounts Payables 89 950 74 397 55 782 Tax, VAT etc 3 389 4 685 6 330 Intercompany liabilities - Other short term debt 8 915 10 236 15 883 Total Current Liabilities 187 228 176 972 216 861 Total Liabilities 395 302 494 707 493 717 Total Equty and Liabilities 710 414 752 060 770 472 7
List of shareholders pr 27.02.2013 8