Athens Greece May 2009 3 Months 2009 Results Presentation NIREUS AQUACULTURE S.A.
Nireus at a glance The leader in seabass and seabream fish farming - A fully integrated producer - Production facilities in 3 countries: Greece, Spain and Turkey - Exports to > 40 countries the #1 exporter in the Greek food sector - Significant growth potential on existing capacity - Exclusive know-how and technology Well positioned to participate in further industry consolidation - Know the Mediterranean fish farming business - Proven success in absorption of other companies Attractive Industry Fundamentals - Very attractive industry outlook long-term - Recession resistant sector - Industry will become more attractive from on-going consolidation - Nireus is well positioned to capture opportunities in the global industry 2
Main events 3 Months 2009 Financial 3 - Sales amounted to 40,25 versus 39,43 in 3M 2008 volume sales in marketsize fish up by 13% and in fish feed up by 18%. - Margins remained suppressed from weak seabream pricing Earnings before taxes amounted to 0.89 mil. versus 3.1 mil. in the 1 st trimester of 2008. - Distinct improvement in operating cash flow in spite of increased fish population marginally negative at 0,4 mi. versus 20,2 mil. in 3M 2008. Operations - A new logistics service was created with Tradimar (of the STEF-TFE group) in Milan to serve better Nireus expansion in the European market. - Fish from selective eggs and inland pre-fattening units for 10 gr. juveniles show a 15% improvement in growth rate. Market and external factors - Seabream pricing continued to be weak in the first trimester of 2009 but has since rebounded - Costs from raw materials were lower vs 3M 2008 - Demand for seabass/seabream not affected by the slowdown in the economy
Seabream price: positive signs Price is recovering despite higher volumes 8,50 8,00 7,50 7,00 MercaMadrid- Wholesale Prices for Fresh farmed Seabream 2008 2009 800 700 600 MercaMadrid - Monthly volumes for fresh farmed Seabream 2008 2009 EURO / kg 6,50 6,00 5,50 5,00 tonnes 500 400 300 4,50 4,00 3,50 200 100 3,00 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec The price of seabream was significantly lower than in Q1 2008 it has increased sharply since early May in spite of higher volumes in the market 4
Sea bass stable price 8,50 MercaMadrid - Wholesale prices for fresh farmed Seabass 350 MercaMadrid - Monthly volumes for fresh farmed Seabass 8,00 7,50 7,00 6,50 6,00 2008 2009 tonnes 300 250 200 150 2008 2009 5,50 100 5,00 50 4,50 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 0 7 6 SEABASS European ex-farm prices 1999-2008 e (source FEAP) 5 4 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 e 5
Lower cost for raw materials CME Corn weekly Fishmeal Peru Monthly (source: IMF) CME Wheat weekly CME Soybean Oil weekly 6 Lower cost in all raw materials used for the production of fish feed
Financials Balance Sheet Assets in mi. 3M 2009 3M 2008 2008 Total non-current 258,06 246,46 293,27 Total current 256,11 245,69 231,16 Total assets 514,18 492,15 524,43 Equity and liabilities in mi. 3M 2009 3M 2008 2008 Total shareholders' equity and minority interests 169,31 176,95 168,27 Total non-current liabilities 217,57 189,45 217,47 Total current liabilities 127,30 125,75 138,69 Total liabilities 344,87 315,20 356,16 Total equity and liabilities 514,18 492,15 524,43 7
Financials Income Statement in mil. 3M 2009 3M 2008 2008 Biological Sales 24,93 30,76 111,98 Non-Biological Sales 15,32 8,67 57,77 Total Sales 40,25 39,43 169,75 Gain from change of Fair Value in Biological Assets 27,90 35,82 160,80 EBITDA 5,11 9,06 29,91 EBIT Operating 3,72 7,33 22,95 EBT 0,89 3,09 9,78 Tax -0,67-1,30-8,65 EAT 0,22 1,79 1,13 Majority interest 0,34 1,72 0,32 Minority interest -0,12 0,07 0,81 Earnings per share ( ) 0,0054 0,0334 0,0058 Sales volumes were 13% higher in market-size fish and 18% in fish feed Sales value was up 2% reflecting lower seabream pricing 8
Financials Cash Flow Statement in mil. 3M 2009 3M 2008 2008 Profit before tax 0,89 3,09 9,78 Cash flow from operating activities -0,41-20,16-26,18 Cash flow from investing activities -0,53-0,76-12,82 Cash flow from financing activities -5,96-8,86 16,74 Total cash flow reporting period -6,91-29,78-22,26 Cash and cash equivalents at the beginning of the period 29,64 51,90 51,90 Cash and cash equivalents at the end of the period 22,73 22,12 29,64 Significant improvement in operating cash flow despite the on-going challenge from the seabream situation and higher fish population Trade receivables reduced by 10% ( 5.8 mil.) 9
Financials Key Figures in mil. 3M 2009 3M 2008 2008 Operating revenues 40,25 39,43 169,75 EBITDA 5,11 9,06 29,91 EBITDA margin(%) 13% 23% 18% EBT 0,89 3,09 9,78 EBT margin(%) 2% 8% 6% Earnings after tax & minorities 0,22 1,79 1,13 Earnings per share 0,0054 0,0334 0,0058 Total assets 514,18 492,15 524,43 Equity 169,31 176,95 168,27 Weak seabream pricing continued to suppress margins 10
Sales Quantities and Prices 3M 2009 3M 2008 2008 Market-size fish (thou. ton.) 7 6.2 24 Aver. Price ( /kg) 4.17 4.37 4.43 Fish Feed 5.9 5 28 (thou. ton.) Aver. Price ( /kg) 0.93 0.99 0.95 Juveniles (mi. pieces) 9 12 62.4 Aver. Price (per piece) 0.21 0.23 0.21 Volumes in market-size fish increased by 13% and in fish feed by 18% Sales of seabream juveniles to small farmers were reduced 11
Sales by Sector Sales by Sector for 3M 2008 & 2009 30,1 31,2 3M 2008 3M 2009 4,7 5,5 4,6 3,6 Fish Farming Fish Feed Other The fish farming sector includes own and merchandise fish and fish-related products(juveniles, eggs) Other products include sales of food supplements and genetic material to pig and chicken farmers through the 100% owned subsidiary KEGO Agri 12
Better cash flow from operations From investments in productivity gains: o Our investments in selective eggs and inland production of 10 gr. juveniles have already resulted in a production time improvement of up to 15% othe seabream population will be fully covered from the selective eggs program by the end of 2010 ofull coverage for seabass is expected by mid 2012 From investments in cost cutting and better working capital management: othe merger with subsidiaries reduced operating expenses odays of receivables were further reduced olower capex and operating expenses 13
Anew logistics service in Milan In cooperation with Closer to 68% of the market UK: 14.000 tons 5% market Holland: 6.000 tons 2% market Germany 4.000 tons 1% market France: 25.000 tons 8% market Milan Spain: 55.000 τόνοι 18% market Italy: 90.000 tons 29% market Portugal: 15.000 tons 5% market Greece 38.000 tons 12% market 14
Participation in international trade shows Brussels Seafood Show - April 2009 2009 15
2009 Outlook: the economy The IMF and the European Commission forecast stable food and crop prices Source: European Commission Economic Forecast Spring 2009 Source: IMF economic forecast Apr 2009 16
2009 Outlook: the price of seabream Volume (kg) 800.000 700.000 600.000 500.000 400.000 300.000 200.000 100.000 0 SEABREAM Monthly Price and Volume Evolution Jan 1996 - Apr 2009 (source: MercaMadrid) Volume Price 10,00 9,00 8,00 7,00 6,00 5,00 4,00 3,00 Price Δ% Seabream Price 30% 20% 10% 0% -10% -20% Seabream: price vs volume development European ex-farm prices 1998-2008 -30% -20% 0% 20% 40% 60% 80% 100% 120% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Δ% Seabream Global Production Source: MercaMadrid&FEAP Extreme highs and lows in Seabream prices occur in a 7-8 years cyclical pattern that has a strong negative correlation with volume growth and a weaker link with GDP growth. 17 Prices are expected to improve relatively in the second half of 2009 and show a stable increase once a better balance between supply and demand is achieved
2009 Outlook: fish feed volumes 90.000 80.000 70.000 60.000 50.000 40.000 30.000 20.000 10.000 0 Fish feed sales to seabass / seabream producers 2008 2009 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source for fish feed volumes: Kontali Analyse 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% Growth of fish feed production for seabass/seabream - 3M average -20% Feb-07 Jun-07 Oct-07 Feb-08 Jun-08 Oct-08 Feb-09 Fish feed volumes depend on fish population Less demand for fish feed lower fish population reduction in fish supply better pricing 18
Excellent potential for growth Fish Juveniles Fish feed Sales Sales 07: 26,400 t Sales 08: 24,000 t Sales 07: Sales 08: 77 mi. pieces 62 mi. pieces Sales 07: 45,300 t Sales 08: 28,000 t Sales growth potential +48% +100% +20% Capacity Capacity: 35,600 t Capacity: 200 mi. pieces Capacity: 90,000 t % of 2008 Revenues 60% 8% 16% 19 Utilization of full capacity does not require significant CAPEX expenditure Ready to increase production as soon as the seabream situation shows stable improvement
Strategy for 2009-2010 Market Focus: oopen new markets for large fish odevelop and sell VAP products New logistics center in Milan 2000 osales/distribution offices in Italy, France, Spain odiversify in new fish-related products Operation Focus: oswap licenses consolidate operations into efficient, fully integrated farming clusters Lower capex, operating expenses and consumption of fish feed 20 Assumptions: oraw materials and transport cost will remain at lower levels othe seabream situation will be improved
Appendix: Cost dynamics in fish farming Cost per kg Δcost - Mortality Δcost - Disease Δcost - Weight Operations + Disease + Mortality Operations + Disease Normal Operations Harvest Weight Vertical structure ensures less risk from disease 21 The 10-gr juvenile pre-fattening units target reduction in mortality
Appendix: Calculation of the fair value of biomass Fish farming companies are required to calculate and report the fair value of their biomass (IAS 41). The fair value of the biomass is calculated as volume (kg) x market price, net of harvesting and transportation cost, and is adjusted for the part that is not ready to harvest. The key drivers are the volume and weight of the biomass and the market price at the time of the calculation The ready to harvest part of the end-of-period biomass is reported in the B.S. as a current asset and the not ready to harvest as a non-current asset. Sales in the I.S. are separated into biological and nonbiological. Biological sales represent sales of juveniles and fish (raw and processed) produced by the company. Non- biological sales represent the sales of the fish/juveniles produced by others, the sales of fish feed, equipment, and other products. The gain or loss arising from changes in the fair value of the biomass is computed as follows: biomass at end of period (+) biological sales (-) biomass at beginning of period 22 (-) purchases of eggs and juveniles for production = gain/loss from biomass Fair value of biomass (B.S.) Key Drivers Biological Sales Non-biological sales Total Sales Volume x Price Δ Volume Δ Price The sales of fish/juveniles produced by the company to include processed fish The sales of fish/juveniles produced by others, fish feed, nets, other products Biological + Non-biological
Communication Financial Calendar Financial Calendar 2009 Investor Relations FY 2008 Results Monday, 30 March 2009 3 Mo. 2009 Results : Friday, 29 May 2009 Ordinary AGM: Friday, 19 June 2009 6 Mo 2009 Results : Friday, 28 August 2009 9 Mo 2009 Results : Friday, 27 November 2009 Ms. Maria Kotsovou, IR Manager Tel. +30 210 66 98 335 Mob. +30 693 66 98 335 Email m.kotsovou@nireus.com Legal Notice This presentation has been prepared solely for informational purposes. Any projections or other estimates in this presentation, including estimates of returns or performance, comments with respect to our objectives and strategies, or the results of our operations and business, are forward-looking statements based upon certain assumptions that may be wrong. These assumptions may be influenced by factors within or beyond our control, and actual results may differ materially from any estimates and projections. Factors influencing actual results include but are not limited to fluctuations in fish prices and raw material prices, the effects of competition in the areas in which we operate, changes in the economic environment, regulatory and economic conditions. This presentation is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. No part of this presentation may be construed as constituting investment advice or a recommendation to enter into any transaction. No representation or warranty is given with respect to the accuracy or completeness of the information contained in this presentation, and no claim is made that any future offer to transact any securities will conform to any terms that may be contained herein. Before entering into any transaction, investors should determine any economic risks and benefits, as well as any legal, tax and accounting consequences of doing so, as well as their ability to assume such risks, without reliance on the information contained in this presentation. 23
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