Lery Seafood Group ASA Diversifying vertically to maximize - - PowerPoint PPT Presentation

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Lery Seafood Group ASA Diversifying vertically to maximize - - PowerPoint PPT Presentation

Mar 04, 2024 99 likes •474 views

Lery Seafood Group ASA Diversifying vertically to maximize sustainable shareholder values Ole-Eirik Lery President & CEO 08. September 2005 Agenda Considerations Key financial figures Q2 2005 Lery at a

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  • Ole-Eirik Lerøy

President & CEO

  • 08. September 2005

Lerøy Seafood Group ASA

Diversifying vertically to maximize sustainable shareholder values

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SLIDE 2

Agenda

  • Considerations
  • Key financial figures

Q2 2005

  • Lerøy at a glance
  • Downstream
  • Upstream
  • Market trends
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SLIDE 3

500 1000 1500 2000 2500 3000 3500 4000

1980 1985 1990 1995 1999 2000 2001 2002 2003 2004

Yearly turnover LSG

  • Mill. NOK
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SLIDE 4

20 40 60 80 100 120

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Pre-tax earnings LSG

  • Mill. NOK (NGAAP)
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SLIDE 5

Quarterly operating profit LSG

  • mill. NOK

20000 40000 60000 80000 100000 120000 YTD 2001 2002 2003 2004 2005

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SLIDE 6

Internal considerations Q2 2005

Main figures

All figures in mill NOK

Q2-05 849 57 11 65 Q2-04 Change YTD-04 Change Turnover 851

  • 0,2 %

1 709

  • 1,6 %

Operating profit 23 147,8 % 57 84,2 % Affiliated comp. 6 83,3 % 5 280,0 % Pre-tax profit 25 160,0 % 54 116,7 % YTD-05 1 681 105 19 117

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SLIDE 7

Internal considerations 2nd Quarter 2005

  • Financially Solid
  • Well positioned for future organic and strategic growth
  • 3.041 shareholders as of 09. August 2005
  • Considerable rise in share price in Q2 05
  • Improved liquidity in traded shares
  • Consolidated business areas
  • Satisfactory operation in production
  • Difficult conditions for operations in sales and distribution
  • Trade barrier from EU is negative in the long run
  • Acquired 100% of the shares in Aurora Salmon AS
  • Secured smolt production
  • Affiliated companies
  • Improved
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Lerøy Seafood Group Consolidated Key figures 30.06.05

  • Total equity (53,4 %)

982 mill NOK

  • Market cap(share price 55)

2 162 mill NOK

  • Net interest bearing debt

121 mill NOK

  • Total LSG-shares January 2005:

37.884.767

  • Share issue July 2005, share price 48,88 NOK 1.432.079
  • New total:

39.316.876

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SLIDE 9

Return on capital employed (ROCE)

5 10 15 20 25 30 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 YTD 2005

Prosent

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Lerøy Seafood Group

  • Global distribution network
  • Global distribution from Head Office in

Bergen

  • Local distribution and processing in

Sweden, France, Portugal and Turkey

  • Local representative offices in some key

markets (France, Italy, Japan, China, USA)

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SLIDE 11

Lerøy Seafood Group ASA

Sales & Distribution Sales & Distribution

Norskott Havbruk AS* 50% Norskott Havbruk AS* 50% Hydrotech Gruppen AS* 39% Hydrotech Gruppen AS* 39% Egersund Fisk AS ** 27% Egersund Fisk AS ** 27%

Affiliated Affiliated

Hallvard Lerøy AS 100%

*Salmon farming **Pelagic activities

Hallvard Lerøy AS 100% Nordvik SA 80% Nordvik SA 80% Lerøy Sverige AB 100% Lerøy Sverige AB 100% Lerøy Smøgen Seafood AB 100% Lerøy Smøgen Seafood AB 100% Lerøy Midnor AS 100% Lerøy Midnor AS 100%

Production Production

Aurora Salmon AS 100% Aurora Salmon AS 100% Portnor Lda 60% Portnor Lda 60% Alfarm Alarko 50% Alfarm Alarko 50% Sigerfjord Aqua AS 90,55% Sigerfjord Aqua AS 90,55%

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Downstream

Company Acquired Ownership share Alfarm Alarko, Turkey 2005 50 % Hallvard Lerøy AS, Norway 1997 100 % Portnor Lda, Portugal 2005 60 % 2003 2003 1988 Lerøy Sverige AB, Sweden 100 % Lerøy Smøgen AB, Sweden 100 % Nordvik AB, France 90 % Global representation through sales offices

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Upstream

Company Acquired Ownership

  • share

Volume

GWT 100% E2005

Aurora Salmon AS 2005 100 % 10 000 Lerøy Midnor AS 2003 100 % 20 000 Egersund Fisk AS 2001 27 % Pelagic Hydrotech Gruppen 1999 39 % 12 000 Norskott Havbruk AS 2001 50 % 21 000 Sigerfjord Aqua AS 1999 90,6 % Arctic char

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Lerøy Seafood Group - Sales per market Q2 2005

Western Europe 65,1 % Eastern Europe 5,4 % USA and Canada 8,1 % Asia Pacific 11,1 % Norway 9,2 % Others 1,2 %

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Lerøy Seafood Group - Sales per product Q2 2005

Whole salmon 48,1 % Processed salmon 24,7 % Pelagic fish 1,3 % Salmontrout 4,6 % Shellfish 4,1 % Other/other species 6,3 % White fish 10,9 %

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Lerøy Seafood Group

  • Norway’s largest seafood exporter in 2004
  • 10,6 % share of Norwegian Seafood tot exports value
  • 14,6 % of Norwegian salmon export
  • 11,9 % of Norwegian salmon export in 2003
  • 27,6 % of Norwegian value added salmon export
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Lerøy Seafood Group

  • Steady growth in operating profit and strong

balance sheet

  • Satisfactory earnings despite turbulence in the sea food

industry

  • Growth potential within recently acquired businesses
  • Satisfactory liquidity
  • Professional and highly motivated employees
  • Strong partnerships / Network of alliances
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SLIDE 19

Lerøy Seafood Group

Market strategy:

  • Quality
  • Diversity in product range
  • Diversity in customer base
  • Market-oriented solutions
  • Geographical spread
  • Continuity in deliveries
  • Cost efficiency
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Lerøy Midnor AS

Smolt:

  • 6,0 mill. smolt per year

(salmon/trout)

Farming:

  • 28 licences (salmon/trout)
  • 2004: 18.000 gwt
  • 2005E: 20.000 gwt
  • 2006E: 25.000 gwt

Processing:

  • Capacity of 85-90 tonnes per shift

Value adding:

  • Capacity of appr. 4.000 t per year
  • Production of skin and bone free

portions and fillets

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Aurora Salmon AS

  • Farming
  • 16 licenses salmon
  • Estimated harvested volume in 2005

– salmon 10.000 gwt

  • Estimated harvested volume in 2006

– salmon 13.000 gwt

  • Capacity 15.000 gwt
  • Slaughtering station
  • Sufficient with quality smolt
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Norskott Havbruk (Scottish Sea Farms Ltd.)

  • BRC
  • SQS
  • ISO 9002
  • ISO 14 001
  • Label Rouge
  • Investor in people
  • VIBES of Scotland
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Norskott Havbruk (Scottish Sea Farms Ltd.)

  • Smolt
  • Self sufficient with high quality smolt
  • Opportunity to sell surplus high quality smolt
  • Farming:
  • Production capacity: 25 000 – 30 000 gwt
  • 2004:

24 100 gwt

  • 2005E:

20 000 – 21 000 gwt

  • Additional processing and sales:
  • 10 000 gwt
  • 2 processing plants
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Hydrotech Gruppen AS (39%)

  • Fish farms in Norway
  • 17 licenses
  • Estimated sales 2005:
  • Salmon and trout estimated :

11 gwt -12 gwt

  • Smolt production: appr. 5 mill
  • Well-boat shipping co.
  • Processing plant
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Egersund Fisk AS (27%)

  • Shareholder structure
  • Lerøy Seafood Group ASA 27%
  • SalMar AS

27%

  • Egersund Fiskeriinvestering AS 9%
  • Others

37% (less than 4% each)

  • Pelagic activity
  • Fish oil, fish meal
  • Pelagic fish for consumption
  • Ownership in vessels for wild catch
  • Part ownership acquired in 2001
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Lerøy Sverige AB

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Lerøy Shellfish in brine

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Market Trends

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Market trends

  • From whole
  • To processed
  • To value added
  • To ready to eat
  • Convenience
  • Branded products
  • Private label
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Lerøy brand in global foodservice

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Lerøy Salmon Airlines

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Cost efficiency

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The near future 2005 - 2006

  • Rapid changes
  • Exiting challenges
  • We are ready!
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SLIDE 36

Thank you