Q August 13th Bergen

Transcription

1 Q August 13th Bergen Lerøy Seafood Group ASA CEO Henning Beltestad CFO Sjur S. Malm

2 Agenda Highlights Key financial figures Outlook

3 Q EBIT before FV adj. NOK 370 million NOK 28m in gain from sale of assets Harvest volume GWT EBIT/kg all inclusive NOK 9.2 Contract share of 27% NIBD NOK 2,611 million at end Q Harvest guidance GWT for

4 Q2: Farming highlights Spot prices below last year NOS Q2/15 NOK 37.3 vs NOK 39.5 in Q2/14 (-6%) Down NOK 2.9/kg q-o-q, and down NOK 2.3/kg y-o-y Trout prices below salmon prices Contract prices above spot prices Marginal cost increase q-o-q Challenging quarter for trout operations EBIT/kg all incl. Q2/15: Salmon: NOK 10.4/kg Trout: NOK 0.6/kg Biomass at sea End Q2/15 at 90,661 tons vs 88,048 tons end Q2/14 (+3%) 4

5 Q2: VAP and S&D highlights Value added processing (VAP) Revenue NOK 468m, up 18% y-o-y EBIT NOK 18m (3.8%) in Q2/15 vs. NOK 21m (5.3%) in Q2/14 Timing of Easter impacts y-o-y comparison Sales & Distribution Positive development EBIT NOK 67m (2.1%) in Q2/15 vs. NOK 64m (2.1%) in Q2/14 Results include about NOK 10m in restructuring costs 5

6 NOK million NOK Quarterly historic figures EBIT* EBIT/kg*, all inclusive ,0 13,3 11,1 13,7 10,1 10,3 16,5 12,2 7,3 11,5 10,2 9, , ,0 2,8 3,6 2,0 3,3 0 0 Q2 15 Q1 15 Q4 14 Q3 14 Q2 14 Q1 14 Q4 13 Q3 13 Q2 13 Q1 13 Q4 12 Q3 12 Q2 12 Q1 12 Q4 11 Q3 11 Q2 11 Q1 11 Q2 15 Q1 15 Q4 14 Q3 14 Q2 14 Q1 14 Q4 13 Q3 13 Q2 13 Q1 13 Q4 12 Q3 12 Q2 12 Q1 12 Q4 11 Q3 11 Q2 11 Q1 11 *before biomass adjustment 6

7 Lerøy Seafood Group ASA Farming VAP Sales & Distribution 7

8 Farming Lerøy Aurora Lerøy Aurora (salmon) Lerøy Midt (salmon) Lerøy Sjøtroll (salmon and trout) Geographic diversification along Norway s long coastline. Lerøy Midt Lerøy Sjøtroll 8

9 VAP Rode Beheer BV Group Capacity of about 16-20,000 tons raw material Lerøy Smøgen Seafood AB Capacity of about 12,000 tons raw material Lerøy Fossen AS Capacity of about 12-15,000 tons raw material Bulandet Fiskeindustri AS(white fish) Total VAP capacity in these factories 40-50,000 tons raw material 9

10 Sales & Distribution Global reach and sales to more than 70 countries. A significant industrial activity within trading, processing, sales and distribution of fish. Investments in fish cuts in end markets recent years Processing and fresh distribution facilities: Norway Sweden Finland France Spain Portugal Turkey Netherlands (reported in VAP) Denmark (reported as associate) Fish-cuts/fresh distribution facilities 10

11 Sales per market and product Q % 4 % 1 % 7 % 5 % 3 % 11 % 6 % 43 % 54 % 22 % 35 % EU Norway Asia Pacific USA & Canada Rest of Europe Others Whole salmon Processed salmon Whitefish Salmontrout Shellfish Others 11

12 Farming: Guiding Licences Smolt cap GWT 2012 GWT 2013 GWT 2014 GWT 2015E GWT Lerøy Aurora AS* 26 11, Lerøy Midt AS 55 22, Lerøy Sjøtroll 61 22, Total Norway , Villa Organic AS** Norskott Havbruk (UK)*** Total *) Included harvested volume from Villa Organic after split July 2014 **) LSG s share of Villa Organic s volume in H1 2014, not consolidated ***) LSG s share, not consolidated 12

13 Agenda Highlights Key financial figures Outlook

14 Key financial figures Q2 (NOKm) Q Q % Revenue % Other gains and losses 28 0 EBITDA Depreciation & amortisation EBIT* % Income from associates* Net finance Pre-tax* % EPS (NOK)* % Harvested Volume (GWT) % EBIT*/kg all inclusive (NOK) ROCE* (%) 15.8 % 24.4 % * Before biomass adjustment 14

15 Key financial figures YTD (NOKm) YTD 2015 YTD 2014 % Revenue % Other gains and losses 38 0 EBITDA Depreciation & amortisation EBIT* % Income from associates* Net finance Pre-tax* % EPS (NOK)* % Harvested Volume (GWT) % EBIT*/kg all inclusive (NOK) ROCE* (%) 16.8 % 26.7 % * Before biomass adjustment 15

16 Balance sheet (NOKm) Q Q End 2014 Intangible assets Tangible fixed assets Financial non-current assets Total non-current assets Biological assets at cost Fair value adjustment Other inventory Receivables Cash and cash equivalents Total current assets Total assets NIBD Equity Equity ratio 53 % 56,2 % 54,4 % 16

17 Funding NOK million Later Total To be paid Total Covenants Q NIBD/EBITDA <5 1,37 Adj. Equity ratio >30% 59,4% 17

18 Cash flow Q Q YTD 2015 YTD 2014 FY 2014 EBITDA Paid tax Working capital * Other ** Cash from operating activities Net investments in capex Acquisitions, divestments and other Cash from investing activities Net financial cost Dividends Cash from financing activities * Other changes (incl.currency effects) Net cash flow / change in NIBD NIBD at beginning Change in NIBD NIBD at end *Before change in interest- bearing debt ** Items included in EBITDA with no cash effect and items included in cashflow from financing activities 18

19 NOKm NOKm EBIT per segment EBIT* Q EBIT* Q Farming VAP S&D Elim./LSG Total 0 Farming VAP S&D Elim./LSG Total * Before biomass adjustment 19

20 NOK Lerøy Aurora Q Q Revenue (NOKm) EBIT* (NOKm) Harvested volume (GWT) EBIT/kg* (NOK) Continued strong performance 9 new licenses give room for significant growth in 2015 and into 2016 *before biomass adj RFS (release-from-stock) cost increase q-o-q and y-o-y ,5 7,9 EBIT*/kg 13,9 14,9 11,4 Higher feed price will continue to give higher RFS cost in coming quarters Q Q Q Q Q * Before biomass adjustment 20

21 NOK Lerøy Midt Q Q Revenue (NOKm) EBIT* (NOKm) Harvested volume (GWT) EBIT/kg* (NOK) *before biomass adj Strong growth in sea in H1 15 RFS cost increase q-o-q and y-o-y Higher feed price will continue to give higher RFS cost in coming quarters, but room for cost reduction in other areas ,9 EBIT*/kg 11, ,4 8, ,7 Q Q Q Q Q * Before biomass adjustment 21

22 NOK Lerøy Sjøtroll Q Q Revenue (NOKm) EBIT* (NOKm) Harvested volume (GWT) EBIT/kg* (NOK) RFS cost decrease q-o-q, but still at very high levels in a historic perspective Challenging situation for trout (~35% of volume), driven by price and very high costs *before biomass adj Documented very positive effects of cleaner fish, 10 9,2 EBIT*/kg significant reduction in number of treatments 8 Expect lower RFS cost H2/15 compared to H1/ ,3 0,0 3,5 2,3 Q Q Q Q Q * Before biomass adjustment 22

23 NOK Norskott Havbruk (associate) Q Q Revenue (NOKm) EBIT* (NOKm) Harvested volume (GWT) EBIT/kg* (NOK) *before biomass adj Harvest guidance 2015 remains 31,000gwt Expect lower RFS cost H2/15 vs H1/15 Contract share of 58% ,2 EBIT*/kg 7,7 Lower profitability from both lower price realisation as well as higher costs Strong pound ( ) impacts competitive position ,9 5,3 5,7 4 3 Q Q Q Q Q * Before biomass adjustment 23

24 NOKm VAP Value Added Processing Q Q Revenue (NOKm) EBIT (NOKm) EBIT margin 3.8 % 5.3 % New capacity gradually being filled gives 18% y-o-y growth in revenue Timing of Easter impacts y-o-y comparison H1/15 EBIT margin at 4.0% is below target, and below the 4.7% margin reported for H1/14. Revenue and EBIT margin % 7 % 6 % 5 % 4 % 3 % 2 % 1 % EBIT margin % Q Q Q Q Q

25 NOKm Sales & Distribution Q Q Revenue (NOKm) EBIT (NOKm) EBIT margin 2.1 % 2.1 % Strong performance in key operations in the quarter, but still room for improvement in several units More examples of fish-cut activities driving end user demand Revenue and EBIT margin % Gradually, fish-cut operations will contribute to higher margin level and profitability % 1 % EBIT margin % Q Q Q Q Q

26 Agenda Highlights Key financial figures Outlook

27 Atlantic salmon Supply in tons WFE Change Change Change Change Change Change Norway ,5 % ,7 % ,3 % ,8 % ,2 % ,1 % United Kingdom ,3 % ,0 % ,0 % ,7 % ,7 % ,1 % Faroe Islands ,7 % ,9 % ,3 % ,0 % ,5 % ,6 % Ireland ,1 % ,5 % ,1 % ,0 % ,0 % ,7 % Iceland ,0 % ,0 % ,9 % ,0 % ,0 % ,2 % Total Europe ,4 % ,0 % ,0 % ,9 % ,4 % ,8 % Chile ,5 % ,7 % ,6 % ,5 % ,4 % ,2 % Canada ,0 % ,2 % ,7 % ,3 % ,3 % ,8 % USA ,7 % ,1 % ,6 % ,5 % ,5 % ,0 % Australia ,1 % ,1 % ,5 % ,0 % ,3 % ,7 % Others ,1 % ,0 % ,6 % ,0 % ,0 % ,7 % Total Others ,2 % ,2 % ,9 % ,9 % ,3 % ,5 % Total World-wide ,2 % ,4 % ,1 % ,1 % ,1 % ,4 % Figures as per Source: Kontali 27

28 SPOT prices, fresh Atlantic salmon cross-section, FCA Oslo as of week (Superior quality). Avrg Q2 15 NOK 37,25 vs avrg Q2 14 NOK 39,54 (-5.8%) Avrg YTD Q NOK 38,81 vs avrg YTD Q NOK 43,19 (-10,1%) Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 NOS FCA Oslo 24,94 25,02 27,72 25,33 28,22 35,09 31,72 27,52 34,00 40,00 38,02 37,77 39,78 36,77 25,84 22,67 26,03 27,03 25,32 26,41 35,36 41,53 38,12 41,27 46,83 39,54 34,54 38,34 40,37 37,25 41,72 54,00 52,00 50,00 48,00 46,00 44,00 42,00 40,00 38,00 36,00 34,00 32,00 30,00 28,00 26,00 24,00 22,00 20,00 18,00 16,00 14,00 12,00 Quarterly price NOS FCA OSLO 28 Weekly price NOS FCA Oslo

29 Atlantic salmon - Harvest Quantities Norway in tons WFE % % 30% % 10% 15% -2% 2% 2% -2% -3% 1% 0% 9% 3% 20% 10% 0% % -20% % 0-40% E Chng line Figures as per Source: Kontali 29

30 Atlantic salmon - Harvest Quantities Europe in tons WFE % % % % 6% 11% -2% -1% 1% 0% 0% 1% 1% 9% 5% 20% 10% 0% % % % 0-40% E Chng line Figures as per Source: Kontali 30

31 Atlantic salmon - Harvest Quantities WW in tons WFE % % % 20% % 7% 5% -1% 0% 4% 1% 1% 2% 2% 8% 4% 10% 0% 0-10% E Chng line Figures as per Source: Kontali 31

32 Atlantic Salmon Consumption Q Market Chng Chng % EU % USA % Russia % Japan % Other Markets % Total % % % % % 100 % % 11 % -16 % -31 % -8 % 50 % 0 % - EU USA Russia Japan Other Markets Chng % -50 % Figures as per Source: Kontali/Nasdax

33 Atlantic Salmon Consumption (Other markets) 2015 Q2 300 % % 200 % % 4 % -7 % -4 % 5 % 17 % -2 % 5 % 6 % 25 %27 % -1 % -19 %-28 % 64 % -49 % 34 % 12 % -10 % 2 % 14 % 17 % -4 % -20 % -12 % -10 % 150 % 100 % 50 % 0 % -50 % % Chng % 0-line Figures as per Source: Kontali

34 Atlantic Salmon Consumption (Others in Other markets) 2015 Q % % 67 % 71 % 46 % 30 % 29 % 13 % 17 % 11 % -5 % -5 % 3 % -17 % -12 %-7 % -9 % 0 % -33 % -29 % -43 % -71 % -81 % -75 % 250 % 200 % 150 % 100 % 50 % 0 % -50 % -100 % % Chng % Figures as per Source: Kontali

35 EU consumption growth and price at boarder Norway 50% 6,00 40% 5,00 30% 4,00 20% 3,00 10% 2,00 0% 1,00-10% - Y-o-y ch. Consumption EU SSB price in EUR

36 EU export from Norway and export price in EUR 45 6, ,0 5,0 5,1 5,0 4,5 5,0 5,2 4,9 4,5 4,8 4,9 4,8 4,7 4,9 4,9 4,7 4,4 4,7 4,4 4,8 4,6 4,5 4,4 4,7 4,9 4,7 4,5 4,7 5,0 5,2 5,1 5,2 5,3 4,5 30 3, % 32 % 40 % 15 % 25 % 23 % 31 % 40 % 24 % 27 % 14 % 7 % 28 % 32 % 61 % 36 % 10 % 35 % 28 % 35 % 17 % 6 % 16 % -16 % 19 % 17 % 22 % 17 % 7 % 11 % 3,0 2, % -31 % 1,5 5 0, Export from Norway to EU 2014 Export from Norway to EU 2015 SSB Export boarder EUR 14 SSB Export boarder EUR 15 -

37 Outlook Positive market outlook Good demand growth, but normal seasonality in market is expected Global supply growth ~3% in 2015 Harvest guidance GWT for 2015 Expected contract share Q3 ~35-40% 37

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39 Historical figures Q1 Q2 Q1 Q2 Q3 Q4 FY FY FY FY Revenue Farming 1 482, , , , , , , , , ,0 VAP 425,0 467,9 367,1 395,1 410,2 437, , , ,0 783,0 S&D 3 075, , , , , , , , , ,9 LSG/Elim , , , , , , , , , ,0 Operating revenue 3 268, , , , , , , , , ,9 EBIT Lerøy Aurora 109,9 68,2 98,3 77,4 48,5 146,3 370,5 359,0 83,1 155,1 Lerøy Midt 169,8 163,5 228,3 184,1 101,0 152,9 666,3 507,7 147,3 519,6 Lerøy Sjøtroll 42,2 34,7 179,1 159,2 4,8-0,2 342,9 460,3 7,7 303,1 Farming 321,8 266,3 505,7 420,7 154,3 299,0 1379,7 1327,0 238,1 977,7 VAP 18,2 18,0 15,1 21,1 27,8 31,3 95,3 71,6 49,7 33,5 S&D 63,0 67,2 38,7 64,1 56,0 82,2 241,1 204,1 192,5 237,5 LSG/Elim 1,0 18,5-9,2-5,6 64,7 22,7 72,6 23,0-30,2-35,8 EBIT before biomass adj. 403,9 370,1 550,4 500,3 302,8 435,2 1788,7 1625,8 450,1 1212,9 39