Sølvtrans Holding ASA Q2 2012 Oslo, 14 August 2012 Roger Halsebakk, CEO Jon Kvalø, CFO
1 Highlights in the quarter 2 Financial review 3 Operational and market review 5 Summary and outlook 6 Appendix
Highlights 2 nd quarter 2012 Continued growth in revenues and results, EBITDA up 21% YoY Operations in Chile on track no off hire days since startup 96% utilization New build Ronja Polaris according to plan Contract signed with Marine Harvest for Ronja Polaris
1 Highlights in the quarter 2 Financial review 3 Operational and market review 5 Summary and outlook 6 Appendix
Financial highlights 2 nd quarter 2012
Operating results 2 nd quarter 2012 NOK mill. Q2 2012 Q2 2011 Operating income 72.7 68.7 EBITDA 39.1 32.2 EBITDA margin 53.8 % 46.9 % EBIT 26.7 5.6 Net financial items 15.0 11.5 Pretax profit 11.7 17.1 NOK mill. YTD 2012 YTD 2011 FY 2011 Operating income 132.2 122.2 264.8 EBITDA 61.5 50.9 127.7 EBITDA margin 46.5 % 41.6 % 48.2 % EBIT 40.8 2.6 57.0 Net financial items 24.0 16.1 46.2 Pretax profit 16.8 13.5 10.8 Operating income up 6% vs Q211 Stable utilization ratio of 96% Operating expenses down 8% vs Q211 Strong focus on cost and efficient operations Continued EBITDA growth, up 21% YoY Further improvements in EBITDA margin EBIT of NOK 26.7 mill Goodwill write down of NOK 27.22 mill last year Net financial items of NOK 15.0 mill Unrealized agio/derivative loss of NOK 7.6 mill
Balance sheet 30 June 2012 NOK mill. 30.06.12 30.06.11 31.12.2011 Fixed assets 959 942 922 Other current assets 47 71 60 Cash 63 63 66 Total 1,068 1,076 1,049 NOK mill. 30.06.1206 30.06.1106 31.12.201112 2011 Equity 334 320 323 Non current liabilities 630 638 604 Current liabilities 105 117 118 Total 1,068 1,076 1,049 Cash of NOK 63 mill Dividend pay out of NOK 6 mill in Q2 Paid 23 mill on vessel under construction in Q2 and 46 mill YTD from own cash pool Trade receivables remains low at NOK 28 mill Reduced with NOK 5.0 mill since year end Vessels with book value of NOK 908 mill Market value of NOK 1,200 NOK 1,300 mill NIBD of NOK 565 mill NIBD / 12 month rolling EBITDA = 4.1 Equity ratio of 31.3% 3%
Cash flow 1 st half 2012 61.5-15.2 4.9-53.9 78.2-3.5-6.0-3.4 62.6 Cash flow Q2 2012 of NOK 0.9 mill Operating cash flow of NOK 33.5 mill improved with 20.9 mill NOK vs Q211 Investments of NOK 28.8 8 mill Dividend payment of NOK 6.0 mill Cash and bonds at 01.01.2012 EBITDA Net finance outflow Change in working capital Net investm. Loan repayment Dividend payment Other changes Cash and bonds at 30.06.2012 Cash hflow YTD 2012 of NOK 15.6 mill Operating cash flow of NOK 47.7 mill improved with 28.9 mill NOK vs YTD 2011 Net investments of NOK 53.9 mill Utilized NOK 11.8 mill from high interest bond placement Loan re payment of NOK 3.5 mill
Group financial profile Terms and conditions Margin influenced by NIBD/EBITDA ratio Covenants related to: NIBD/EBITDA Equity ratio Working capital level Covenant ratios by 30.06.2012 NIBD/EBITDA: 4.1 Equity ratio: 31.3% 3% Working capital: NOK 51.2 million Equity ratio % 29.8 % 30.1 % 30.9 % 31.0 % 31.33 % Working capital (NOK million) 81.5 70.8 71.1 56.5 51.2 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 NIBD/EBITDA (12m rolling) 6.8 5.5 4.3 4.3 4.1 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12
1 Highlights in the quarter 2 Financial review 3 Operational and market review 5 Summary and outlook 6 Appendix
Fleet performance Utilization rate Number of off hire days 100% 90% 92% 95% 93% 97% 96% 96% 92% 300 250 80% 70% 80% 75% 80% 200 150 60% 100 50% 50 40% Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 0 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 *Number of days with vessel revenue / total number of vessel days Incidents Maintenance Market related
Contract activity Contracts with Marine Harvest Norway Ronja Polaris, vessel under construction, for 3 + 2 years from delivery in June 2013 Ronja Atlantic extended until delivery of Ronja Polaris Ronja Superior extended for 3 + 2 years from 1 Jan 2014 Scottish Seafarms extends contracts Use of option for 1 year for Ronja Skye and Ronja Settler from 1 Jan 2013 Contract coverage per 14 August 97% 70% 37% 27% 2012 2013 2014 2015
Contract status per 14. august 2012 Vessel name Capacity (m 3 ) Year bilt built Type * Lice equiped Country Employment to per 14.08 812 8.12 Ronja Polaris 3 000 2013 Closed X Under constr. Medio 16 2012 2013 2014 2015 Ronja Atlantic 1 940 2009 Closed X Norway Medio 13 Ronja Nordic 1 040 2008 Closed X Nor / Scot. Dec 13 Ronja Harvester 1 940 2007 Closed X Norway Dec 12 Ronja Superior 1 040 2007 Closed X Norway Dec 16 Ronja Pioneer 1 040 2006 Closed Scotland Dec 13 Ronja Viking 1 040 2006 Closed Scotland Nov 14 Ronja Commander 940 2003 Closed Scotland Dec 13 Ronja Carrier 660 2003 X Canada Dec 12 Ronia Pacific 660 2003 Chile May 14 Ronja Settler Sttl 600 2002 Closed Scotland Dec 1 13 Roy Kristian 660 2001 X Nor / Scot. Spot Ronia Austral 660 2001 X Chile May 15 Ronja Skye 600 2001 Closed Scotland Dec 13 * "Closed" means that the vessel has systems for closed and controlled operations, without spills and with controlled temperature and oxygen to secure animal welfare and best possible quality on slaughter fish. Contract Under construction Charterer's option
Sølvtrans Market Overview Canada East: One vessel on contract until Scotland: Norway: Seven vessels in operation p Currently 3 vessels, all with closed valve, in operation Increased biomass volume Increased focus on long term charters Increased bio security focus Dec 2012 Prioritized market Norway Scotlan nd Canada East Chile: Two vessels in operation from April 2012 Strong demand for wellboat services Chile
New vessel Ronja Polaris on schedule Delivery scheduled to end of June 2013 Construction progress according to specification and plan with no delays Financing according to contract 10% prepaid in Q2, 20% YTD Remaining80% on delivery Close follow up, on site and from own project manager
Modern fleet with leading technology 3000 m3 1 vessel under construction. To be delivered June 2013 State of the art all necessary equipment for efficient operations Closed valve system specially equipped for filtering all circulation water 1900 m3 2 vessels Closed Valve system and RSW All equipped for lice treatment 1000 m3 5 vessels Closed Valve system and RSW All equipped for lice treatment 650 m3 6 vesselss Open and Closed Valve system and RSW Some equipped for lice treatment
1 Highlights in the quarter 2 Financial review 3 Operational and market review 5 Summary and outlook 6 Appendix
Outlook Short to medium term Continued growth in salmon production Increased bio security focus Expects stable performance going forward Long term Positive outlook oo for ta transportation spotato of live fish, world wide growth in aquaculture Strong demand for larger vessels with modern technology, to meet and to be prepared for stricter regulations Chile market will continue to move towards more modern and bio secure wellboats
Summary Continued growth in revenues and results continuous improvements in operations Chile operations on track no off hire da ays since startup Strong contract coverage long term contract secured for vessel under construction Construction progress for Ronja Polaris according to plan
Th k you for Thank f your y attention! tt ti! History.. now w 3rd quarter will be presented 7th November 201 12...the future
1 Highlights in the quarter 2 Financial review 3 Operational and market review 5 Summary and outlook 6 Appendix
Key Financials NOK mill Q2 2012 Q2 2011 YTD 2012 2011 2010 2009 2008 Operating income and other revenue 73 69 132 265 254 221 189 EBITDA 39 32 62 128 85 87 96 EBIT 27 6 41 57 39 58 67 Net financial items 15 12 24 46 32 21 99 Profit or loss 12 18 17 2 1 83 22 Cash flow from operations 33 Net cash flow 11 13 48 20 44 88 8 13 44 33 46 3 37 Total assets 1 068 1 076 1 068 1 049 1 116 1 060 965 Equity 334 320 334 323 335 190 107 Net interest bearing debt (NIBD) 565 592 565 553 571 765 745 Cash and cash equivalents 63 74 63 78 112 25 22 Working Capital 54 81 54 57 105 38 42 NIBD / EBITDA (12 month rolling) 4,1 6,8 4,1 4,3 6,7 8,8 7,8 EBITDA margin 54 % 47 % 47 % 48 % 33 % 39 % 51 % Equity ratio 31,3 % 29,8 % 31,3 % 30,8 % 30,0 % 17,9 % 11,1 % Earnings per share in NOK 0,70 0,98 0,96 0,09 0,06 4,60 Equity per share in NOK 18,40 17,,65 18,40 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.