Preliminary financial figures Preliminary financial figures LERY - - PDF document

LERØY SEAFOOD GROUP Preliminary financial figures Preliminary financial figures 2011

February 23rd 2012 Henning Beltestad

CEO

Ivan Vindheim

1 1

CFO

Agenda

1. Considerations 2 Key financial figures Q4 2011

2 1

2. Key financial figures Q4 2011 3. Lerøy at a glance

2 3

4. Market glance

4

2 2

Highlights as of Q4 2011 g g

• Profit down on the back of a lower salmon price
• EBIT/kg all inclusive NOK 3.0
• High contract share of 35% in Q4
• Of which c.20% old contracts, i.e. committed before H2 2011

Bi l i f

• Biology satisfactory
• However, PD-hit in Lerøy Hydrotech of NOK33m
• Biomass in sea of record-high 100.6’ LWT YE 2011

g

• Decided to close down the packing station in Kristiansund
• S&D second best quarter ever
• Satisfactory cash-flow

Satisfactory cash flow

• Dividend NOK/share 7.0 indicated by the BoD
• Acquisition of 50.1% of Rode Beheer B.V.

3 3

• Closing date end of February

Close down of packing station L H d t h Lerøy Hydrotech

• Optimization
• Own packing stations
• Agreement with SalMar ASA
• Agreement with SalMar ASA
• Volumes to Innovamar (SalMar) in exchange of

SalMar North’s volumes to Lerøy Aurora’s packing station at Skjervøy station at Skjervøy

• Increased processing capacity and flexibility

Cost reductions

• Cost reductions

C it l ti li ti

• Capital rationalisation

4 4

Internal considerations Q4 2011

All figures in NOK m ill All figures in NOK m ill

Q4 - 11 Q4 - 10 Change 2011 2010 Change Turnover 2 251 2 574

• 13 %

9 177 8 888 3 % EBITDA 192 603

• 68 %

1 485 1 806

• 18 %

EBIT bef adj biom 120 539

• 78 %

1 213 1 586

• 24 %

PTP bef adj biom 96 543

• 82 %

1 183 1 623

• 27 %

5 5

*) PTP = Pre-Tax Profit

Turnover LSG Turnover LSG

NOK m illion

9 000 10 000 6 000 7 000 8 000 4 000 5 000 6 000 2 000 3 000 4 000 1 000

1980 1985 1990 1995 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

6 6

EBIT LSG pre biomass adj EBIT LSG pre biomass adj

NOK m illion

2 000 1 000 1 500 500 1 000

LSG li d O l S k E h i 03 06 2002

7 7

LSG was listed on Oslo Stock Exchange in 03.06.2002

Quartely EBIT LSG pre biomass adj Quartely EBIT LSG pre biomass adj

NOK m illion

500 600 300 400 500 100 200

8 8

Return on capital employed (ROCE) Return on capital employed (ROCE)

30 35 15 20 25

ent

18%*

5 10 15

Perce

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

* Target communicated at the listing on Oslo Stock Exchange 03 06 2002

9 9

* Target communicated at the listing on Oslo Stock Exchange 03.06.2002

Annual dividend since 1995 Annual dividend since 1995

10% 600 6% 8% 300 400 500

Dividend NOKm

2% 4% 100 200 300

Dividend Yield N

0% 00

19951996199719981999200020012002200320042005200620072008200920102011

Listed on Oslo Stock Exchange 03 06 2002

10 10 10

Listed on Oslo Stock Exchange 03.06.2002

Creating shareholder’s value Creating shareholder s value

10% 15 000 6% 8% 10% 10 000 15 000

Market Cap NOKm

2% 4% 5 000

Yield

0%

199719981999200020012002200320042005200620072008200920102011

Listed on Oslo Stock Exchange 03 06 2002

11 11 11

Listed on Oslo Stock Exchange 03.06.2002

Ten years with sustainable growth more to come! Ten years with sustainable growth, more to come!

125 000 150 000 10 000 12 000 50 000 75 000 100 000 125 000 4 000 6 000 8 000 10 000

Market Cap EV GWT

NOKm GWT

25 000 50 000 2 000 4 000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

GWT Listed on Oslo Stock Exchange 03 06 2002

12 12 12

Listed on Oslo Stock Exchange 03.06.2002

Internal considerations Q4 2011

Production

Internal considerations Q4 2011

Production

• Volumes in line with revised guidance
• 39.6’ GWT in Q4 and 136.7’ GWT FY

f Q

• In general, operations satisfactory in Q4
• However, PD-hit Lerøy Hydrotech of NOK33m
• Record-high biomass in sea YE of 100.6’ LWT

Sales and Distribution

S d b t t

• Second best quarter ever
• Capitalising on
• Economies of scale
• Systems
• Global network
• Organisation/human capital

13 13

• Alliances

I t l id ti Internal considerations Q4 2011 cont’d

Affiliated companies

N ti i i Q4 (N k tt/S tti h S

• Negative earnings in Q4 (Norskott/Scottish Sea

Farms)

• Biological issues both in Scotland Mainland and in

Shetland Islands Shetland Islands

• Falling prices in the quarter

Financially solid Financially solid

• NIBD NOK1,593m as of Q4 2011
• Satisfactory cash-flow in the quarter under review

and for the year as a whole and for the year as a whole

• Dividend/share of NOK 7.0 indicated by the BoD
• Well positioned for future organic and strategic

th

14 14

growth

External considerations Q4 2011 External considerations Q4 2011

Demand and supply pp y

• Sequential drop in spot prices of 12.3% in Q4 11
• On the back of higher supply and still high, but falling, prices to

end-customer in material markets

• However, LSG high proportion of contracts in Q4 11
• 35% in Q4 11, of which approx. 20% at “old” prices
• Significant supply growth expected the coming months

U t i t l t d t Chil

• Uncertainty related to Chile
• Focus on market
• Favourable prices from a demand point of view
• However still somewhat price lag to end-consumer
• However, still somewhat price lag to end-consumer
• Marketing campaigns
• Emerging markets

Political issues / trade barriers

• US punitive duty on Norwegian fresh salmon abolished in

February 2012

15 15

• Positive
• Can be appealed

Agenda

1 Considerations

1

1. Considerations 2. Key financial figures Q4 2011

2 1

3. Lerøy at a glance

3

4. Market glance

4

16 16 16

Income Statement Q4 2011

All figures in NOK 000

Q4 2011 Q4 2010 YTD 2011 2010 Salgsinntekter / Operating revenues 2 250 605 2 573 862 9 176 873 8 887 671 Vareforbruk / Cost of goods sold 1 563 085 1 481 954 5 866 180 5 612 160 Lønnskostnader / Salaries and wages 272 996 248 114 967 789 777 845 Andre driftskostnader / Other operating costs 222 723 241 712 858 107 691 791 Driftsresultat før avskrivninger / EBITDA 191 802 602 081 1 484 797 1 805 874 Ordinære avskrivninger / Ordinary depreciation 71 797 62 891 271 899 219 624 Driftsresultat før verdijustering biomasse / EBIT before fair value adjustment biomass 120 004 539 189 1 212 898 1 586 249 Driftsresultat før verdijustering biomasse / EBIT before fair value adjustment biomass 120 004 539 189 1 212 898 1 586 249 Verdijustering biomasse / Fair value adjustment biomass 21 857 126 707

• 615 767

298 538 Driftsresultat / Operating profit (EBIT) 141 862 665 897 597 131 1 884 787 Inntekt fra tilknyttede selskaper / Income from associated companies

• 8 537

38 870 19 741 122 006 Netto finansposter / Net financial items

• 21 964
• 20 190
• 81 884
• 66 272

Resultat før skattekostnad og før just biomasse / Profit before tax bef adj biom. 95 730 543 349 1 183 314 1 623 307 Resultat før skattekostnad / Profit before tax 111 361 684 577 534 988 1 940 521 Beregnede skatter / Estimated taxation

• 36 615
• 175 687
• 156 311
• 510 952

Periodens resultat / Profit for the period 74 746 508 890 378 677 1 429 569

17 17 17

Periodens resultat / Profit for the period 74 746 508 890 378 677 1 429 569

Key Figures Production Q4 2011 Key Figures Production Q4 2011

*) *) *) **) Figures NOKm Lerøy Midnor Lerøy Hydrotech Lerøy Aurora Lerøy Vest Sjøtroll Havbruk Others / elimination Total Q4 11 Total Q4 10 Revenues 339,9 201,0 172,9 260,5 132,3 181,3 1 288,0 1 480,3 *) *) *) **) EBIT before biom adj 57,2

• 28,2

24,5

• 16,6
• 5,0

11,3 43,2 463,1 RoS before biom adj 17 %

• 14 %

14 %

• 6 %
• 4 %

6 % 3 % 31 % Volumes (GWTk) 11,3 8,0 5,7 10,3 4,2 0,0 39,6 35,8 Volumes (GWTk) 11,3 8,0 5,7 10,3 4,2 0,0 39,6 35,8 EBIT/kg 5,0

• 3,5

4,3

• 1,6
• 1,2

0,8 12,7

EBIT/kg all inclusive NOK 3.0 (Q4 2010 NOK/kg 15.1)

Q4 10 comparable figures: Revenues 387,3 292,2 238,3 278,2 117,4 167,1 1 480,3 EBIT before biom adj 143,6 109,5 95,9 77,0 26,7 10,6 463,1 RoS before biom adj 37 % 37 % 40 % 28 % 23 % 6 % 31 % S j 3 % 3 % 0 % 8 % 3 % 6 % 3 % Volumes (GWTk) 10,2 7,7 6,3 8,5 3,0 0,0 35,8 EBIT/kg 14,0 14,1 15,3 9,1 8,8 12,7

*) Including VAP (post / pre rigor fillets portions etc)

18 18 18

*) Including VAP (post / pre-rigor, fillets, portions etc) **) PD-hit of NOK33m in Q4 2011

Key Figures Production YTD 2011 Key Figures Production YTD 2011

*) *) *) Figures NOKm Lerøy Midnor Lerøy Hydrotech Lerøy Aurora Lerøy Vest Sjøtroll Havbruk Others / elimination Total YTD 11 Total YTD 10 Revenues 1 261,9 849,1 621,0 1 065,7 794,2 624,1 5 216,0 4 716,4 *) *) *) EBIT before biom adj 361,2 157,4 155,1 198,3 105,7 33,7 1 011,4 1 385,1 RoS before biom adj 29 % 19 % 25 % 19 % 13 % 5 % 19 % 29 % Volumes (GWTk) 35,9 26,4 18,1 34,5 21,7 0,0 136,7 116,8 Volumes (GWTk) 35,9 26,4 18,1 34,5 21,7 0,0 136,7 116,8 EBIT/kg 10,1 6,0 8,6 5,7 4,9 7,2 11,6

EBIT/kg all inclusive NOK 8.9 (YTD 2010 NOK/kg 13.6)

YTD 10 comparable figures: Revenues 1 240,9 902,8 737,6 1 112,5 117,4 605,2 4 716,4 EBIT before biom adj 469,8 319,7 264,9 277,5 26,7 26,6 1 385,1 RoS before biom adj 38 % 35 % 36 % 25 % 23 % 4 % 29 % S j 38 % 35 % 36 % 5 % 3 % % 9 % Volumes (GWTk) 34,0 25,2 20,3 34,3 3,0 0,0 116,8 EBIT/kg 13,8 12,7 13,1 8,1 8,8 11,6

*) Including VAP (post / pre rigor fillets portions etc)

19 19 19

*) Including VAP (post / pre-rigor, fillets, portions etc)

Key Figures Sales & Distribution Q4 2011 Key Figures Sales & Distribution Q4 2011

Figures NOKm Sales & Distribution Elimination Total Q4 11 Total Q4 10 Revenues 2 320,9

• 129,9

2 191,1 2 448,3 EBIT 83,1

• 0,1

83,0 92,2 RoS 3,6 % 3,8 % 3,8 %

• Second best quarter ever

20 20 20

Key Figures Sales & Distribution YTD 2011 Key Figures Sales & Distribution YTD 2011

Figures NOKm Sales & Distribution Elimination Total YTD 11 Total YTD 10 Revenues 9 515,6

• 495,9

9 019,7 8 669,9 EBIT 236,5

• 0,1

236,4 255,3 RoS 2,5 % 2,6 % 2,9 %

• Second best year ever

21 21 21

Balance Sheet Q4 2011

All figures in NOK 000

31.12.11 31.12.10 Immaterielle eiendeler / Intangible assets 3 885 419 3 851 457 Varige driftsmidler / Tangible fixed assets 1 836 384 1 586 334 Finansielle anleggsmidler / Financial non-current assets 360 794 369 982 Sum anleggsmidler / Total non-current assets 6 082 597 5 807 773 Biologiske eiendeler / Biological assets 2 370 938 2 706 734 Andre varer / Other inventories 328 045 290 379 Fordringer / Receivables 1 082 838 1 190 214 Betalingsmidler / Cash and cash equivalents 1 597 429 1 357 096 Sum omløpsmidler / Total current assets 5 379 250 5 544 422 Sum omløpsmidler / Total current assets 5 379 250 5 544 422 Sum eiendeler / Total assets 11 461 847 11 352 195 Innskutt egenkapital / Paid in equity 2 765 788 2 773 912 Opptjent egenkapital / Earned equity 2 497 048 2 671 798 Opptjent egenkapital / Earned equity 2 497 048 2 671 798 Ikke-kontrollerende eierinteresser / Non-controlling interests 534 931 548 564 Sum egenkapital / Total equity 5 797 766 5 994 274 Avsetning for forpliktelser / Accrued liabilities 1 098 673 1 269 054 Langsiktig gjeld / Long-term liabilities 2 429 365 2 223 014 Kortsiktige kreditter / Short-term loans 760 977 434 121 Annen kortsiktig gjeld / Other short-term liabilities 1 375 066 1 431 732 Sum gjeld / Total liabilities 5 664 082 5 357 921

22 22 22

Sum egenkapital og gjeld / Total equity and liabilities 11 461 847 11 352 195

All figures in NOK 000

Cash Flow Statement Q4 2011

Q4 2011 Q4 2010 YTD 2011 2010 Kontantstrøm fra drift / Cash flow from operating activities Resultat før skatt / Profit before tax 111 361 684 577 534 988 1 940 521 Betalt skatt / Income tax paid

• 13 548

1 382

• 407 229
• 98 315

Ordinære avskrivninger / Ordinary depreciation 71 800 62 891 271 900 219 624 Resultat tilknyttede selskaper / Profit from associated companies 8 537

• 38 870
• 19 741
• 122 006

Endring verdijustering biomasse / Change in value adjustment biomass

• 23 594
• 126 707

616 741

• 298 538

Endring varelager / Change in inventories

• 77 611
• 70 793
• 313 670
• 133 265

Endring kundefordringer / Change in accounts receivable 22 882

• 52 594

86 893

• 67 458

Endring leverandører / Change in accounts payable

• 33 481
• 65 831

51 911

• 8 312

Poster klass. som finansieringsaktiviteter / Items reclassified as financing activeties 21 963 20 190 81 884 66 272 Andre tidsavgrensninger / Other accruals 104 020 104 045 30 862 9 105 Andre tidsavgrensninger / Other accruals 104 020 104 045

• 30 862

9 105 Netto kontantstrøm fra drift / Net cash flows from operating activities 192 329 518 290 872 815 1 507 628 Kontantstrøm fra investeringsaktiviteter / Cash flow from investing activities Netto investering i varige driftsmidler etc. / Net investment in fixed assets etc.

• 154 577
• 78 909
• 516 660
• 267 749

Netto investering i immaterielle eiendeler / Net investment in intangible fixed assets

• 1 398
• 9 405
• 1 782

g g Netto utbetaling ved kjøp av aksjer etc. / Net payments for acquisitions of shares etc.

• 675
• 1 098
• 1 675
• 18 255

Netto utbetaling v/kjøp av konsernselskaper / Net acquisitions of group companies

• 3
• 540 000
• 22 754
• 540 000

Innbetaling av utbytte fra tilknyttede selskaper / Dividend from associates 29 336 47 540 Endring langsiktige fordringer etc. / Change in long-term receivables etc.

• 66

1 434

• 254

3 919 Netto kontantstrøm fra investeringsaktiviteter/Net cash flow from investing activities

• 156 719
• 618 573
• 521 412
• 776 327

Kontantstrøm fra finansieringsaktiviteter / Cash flow from financing activities Netto endring i kortsiktige kreditter / Net change in bank overdraft 193 043

• 16 950

319 513

• 305 200

Netto endring langsiktig gjeld / Net change in long-term debt

• 57 771

604 319 213 618 524 351 Netto innbetaling av egenkapital / Net equity contributions 131 300 131 300 Netto finanskostnader / Net financial costs

• 21 963
• 20 190
• 81 884
• 66 272

Netto finanskostnader / Net financial costs 21 963 20 190 81 884 66 272 Gjenkjøp av egenkapitalinteresser / repurchase of equity interests

• 8 124
• 15 198

Utbetaling av utbytte / Dividend payments

• 468
• 565 939
• 375 452

Netto kontantstrøm fra finansieringsakt. / Net cash flow from financing activities 105 185 698 011

• 129 890
• 91 273

Netto kontantstrøm for perioden / Net cash flows for the period 140 795 597 728 221 513 640 028

23 23 23

Betalingsmidler v/periodens begynnelse / Cash and cash equiv. at beginning of period 1 456 634 750 290 1 357 096 707 989 Betalingsmidler fra oppkjøp / Cash and cash equivalents from business combinations 9 079 18 821 9 079 Betalingsmidler ved periodens slutt / Cash and equivalents at end of period 1 597 429 1 357 097 1 597 429 1 357 096

Key figures - Lerøy Seafood Group Q4 2011

Q4 2011 Q4 2010 YTD 2011 2010 Resultatmargin før just biomasse / Profit margin before adj biomass 4 3 % 21 1 % 12 9 % 18 3 % Resultatmargin før just.biomasse / Profit margin before adj. biomass 4,3 % 21,1 % 12,9 % 18,3 % Resultatmargin / Profit margin 1) 4,9 % 26,6 % 5,8 % 21,8 % Driftsmargin før just.biomasse / Operating margin before adj.biomass 5,3 % 20,9 % 13,2 % 17,8 % Driftsmargin / Operating margin 2) 6,3 % 25,9 % 6,5 % 21,2 % Resultat per aksje før just.biomasse / Earnings per share before adj.biomass 1,24 7,45 15,13 22,08 Resultat per aksje før just.biomasse / Earnings per share before adj.biomass 1,24 7,45 15,13 22,08 Resultat per aksje / Earnings per share 3) 1,42 9,26 7,01 26,25 Utvannet resultat per aksje / Diluted earnings per share 1,42 9,26 7,01 26,25 ROCE før just.biomasse (annualisert) / ROCE before adj.biomass (annualised) 6,4 % 36,7 % 17,9 % 27,5 % ROCE (annualisert) / ROCE (annualised) 4) 7,2 % 42,8 % 8,4 % 30,8 % ( ) ( ) , , Egenkapitalandel / Equity ratio 50,6 % 52,8 % 50,6 % 52,8 % Netto rentebærende gjeld / Net interest bearing debt 1 592 914 1 298 727 1 592 914 1 298 726 Kontantstrøm per aksje / Cash-flow per share 5) 3,52 9,55 15,99 28,05 Utvannet kontantstrøm per aksje / Diluted cash-flow per share 3,52 9,58 15,99 28,05

1) Resultatmargin = Resultat før skatt / Salgsinntekter Profit margin = Profit before tax / Revenues 2) Driftsmargin = Driftsresultat / Salgsinntekter Operating margin = Operating profit / Revenues 3) Resultat per aksje = Majoritetens andel resultat / Gjennomsnittlig antall aksjer Earnings per share = Majority interests / Average number of shares 4) ROCE = [Resultat før skatt + netto finansposter] / Gjennomsnitt [netto rentebærende gjeld + sum egenkapital] ROCE = [Pre tax profit + Net financial items] / Average [Net interest bearing debt + Total equity] 5) Kontantstrøm fra drift C h fl f ti

24 24 24

Cash-flow from operations

Funding Funding

• Sound debt repayment profile

NOK million 2012 2013 2014 2015 2016 2017 -> Total

C t NIBD/EBITDA 5 d E it ti 30%

Instalments 359 357 416 433 486 738 2 789

**)

*)

• Covenants NIBD/EBITDA < 5 and Equity ratio > 30%
• Q4 2011: 1.1 and 61.3 % respectively

S ti f t itt d d dit li

)

• Satisfactory committed unused credit lines

*) Of which NOK300m a 5 year bond with Eksportfinans ASA (renewed in October 2011)

25 25 25

) Of which NOK300m a 5 year bond with Eksportfinans ASA (renewed in October 2011) **) Adjusted for bank deposits and deferred tax associated with licenses

Norskott Havbruk 100% figures

LSG’ h 50% LSG’s share = 50%

NOKm

Q4 2011 Q4 2010 2011 2010

Revenues

248 255 797 1 027

Revenues

248 255 797 1 027

EBITDA

6 76 175 325

EBIT bef adj biom

• 7

64 124 279

EBIT

• 23

104 34 331

Pre tax

• 25

103 28 325

Volumes (gwt)

7,5 6,3 21,9 27,1

EBIT/kg

• 0 9

10 2 5 7 10 3

EBIT/kg

0,9 10,2 5,7 10,3

Balance sheet

31.12.2011 31.12.2010

Licences, goodwill

360 353

, g Tangible fixed assets

191 190

Inventories

530 490

Other current assets

121 112

T t l t

1 201 1 145

Total assets

1 201 1 145

Equity

586 606

Debt

615 539

26 26 26

Debt

615 539

Total equity and debt

1 201 1 145

Net interest bearing debt

370 261

Agenda

1 Considerations

1

1. Considerations 2. Key financial figures Q4 2011

2 1

3. Lerøy at a glance

3

4. Market glance

4

27 27

Lerøy Seafood Group - Global organization

Norway Norway Finland Sweden Scotland France Turkey North America China Japan Portugal Turkey

28 28 28

Farming Production Sales & Distribution

29 29 29

Lerøy Seafood Group Lerøy Seafood Group

Global distribution network

• Head Office in Bergen
• National distribution and processing in Norway,

at o a d st but o a d p ocess g

• ay,

Sweden, Finland, France, Portugal, and Turkey

• Branch offices in key markets (France, Japan, China

and USA)

• 11.9% (12.2% ) share of Norwegian seafood export

l value

• 17.6% (17.4% ) of Norwegian salmon export
• 27.9% (23.5% ) of Norwegian value added salmon

export # 2 global salmon farmer volumewise

• # 2 global salmon farmer volumewise

Total of 1,865 employees p y

• Sales and distribution 556
• Production and farming 1,309
• Associates 407 (not consolidated)

30 30 30

Lerøy Seafood Group Lerøy Seafood Group

• Fully integrated
• Fully integrated
• From roe to the plate
• Competent employees

D t li d f i it

• Decentralized farming units
• Autonomous units in three regions
• In addition, the affiliated company

Scottish Sea Farms in Scotland

• Processing plants
• Smokehouses
• Fillets, portions etc
• Post / pre-rigor
• Global sales network
• Group structure gives rise to

Group structure gives rise to economies of scale and avoidance of scale disadvantages

31 31 31

disadvantages

Lerøy Seafood Group - Sales per market 2011 y p

p

USA and Canada 7 4 % Rest of Europe 9,6 % Others 1,1 % 7,4 % EU 50,2 % Norway 20,4 % Asia Pacific 11,3 %

32 32 32

More than 70 countries

Lerøy Seafood Group - Sales per product 2011 Lerøy Seafood Group

Sales per product 2011

Shellfish Salmontrout 8,1 % Whit fi h Pelagic fish 1,0 % Others 4,5 % 5,6 % White fish 8,5 % Whole salmon 44 4 % 44,4 % Processed salmon 28,0 %

33 33 33

Farming Norway

Lerøy Aurora AS

• Lerøy Aurora AS (salmon)
• Lerøy Midnor AS (salmon)

y ( )

• Lerøy Hydrotech AS (salmon)
• Lerøy Vest AS (salmon and trout)

Sjøtroll Havbruk AS (salmon and trout)

• Sjøtroll Havbruk AS (salmon and trout)

Lerøy MidnorAS Lerøy Hydrotech AS Lerøy Vest AS Lerøy Vest AS Sjøtroll Havbruk AS 34 34 34

Integrated value chain

35 35 35

Lerøy Seafood Group Salmon/trout farming Lerøy Seafood Group – Salmon/trout farming

Company Ownership Licences

• Mill. smolt

2010 2011 2012E share No individuals GWT GWT GWT Lerøy Midnor AS 100 % 30 9,5 34 000 35 900 36 000 Lerøy Aurora AS 100 % 17 7 5 20 300 18 100 20 000 Lerøy Aurora AS 100 % 17 7,5 20 300 18 100 20 000 Lerøy Hydrotech AS 100 % 24 7,0 25 200 26 400 26 000 Lerøy Vest AS 100 % 34 14,2 34 300 34 500 36 000 Sjøtroll Havbruk AS 50,71 % 25 8,4 3 000 21 700 24 000

*) **)

Total Norway 130 46,6 116 800 136 600 142 000 Norskott Havbruk AS (UK) 50 % 7,0 13 500 10 900 12 500 Total 53,6 130 300 147 500 154 500 ,

Consolidated, farming Affiliated, farming *) Acquired and consolidated as from November 2010 **) LSG’s share

36 36 36

Agenda

1. Considerations

1

2. Key financial figures Q4 2011

2

3. Lerøy at a glance 4. Market glance

4 3

4. Market glance

4

37 37

Atlantic salm on – Supply

in tons W FE in tons W FE

Change Change Change Change Change Change Change Change Change Change 2008 07-08 2009 08-09 2010 09-10 2011 10-11 2012 11-12 Norway 741 000 2,4 % 855 700 15,5 % 944 600 10,4 % 1 005 600 6,5 % 1 091 300 8,5 % UK 136 400 1,1 % 144 800 6,2 % 141 800

• 2,1 %

157 500 11,1 % 146 000

• 7,3 %

Faroe Island 37 900 98 4 % 48 100 26 9 % 42 100

• 12 5 %

56 500 34 2 % 65 200 15 4 % Faroe Island 37 900 98,4 % 48 100 26,9 % 42 100

• 12,5 %

56 500 34,2 % 65 200 15,4 % Ireland 11 400

• 25,5 %

14 800 29,8 % 17 800 20,3 % 15 800

• 11,2 %

16 000 1,3 % Total Europe 926 700 3,8 % 1 063 400 14,8 % 1 146 300 7,8 % 1 235 400 7,8 % 1 318 500 6,7 % Chile 403 500 13 2 % 239 100 40 7 % 129 600 45 8 % 222 000 71 3 % 352 100 58 6 % Chile 403 500 13,2 % 239 100

• 40,7 %

129 600

• 45,8 %

222 000 71,3 % 352 100 58,6 % Canada 118 500 8,2 % 115 400

• 2,6 %

118 000 2,3 % 109 900

• 6,9 %

114 000 3,7 % Australia 25 700 8,0 % 32 200 25,3 % 33 000 2,5 % 36 000 9,1 % 37 000 2,8 % USA 17 000 38,2 % 16 400

• 3,5 %

18 000 9,8 % 18 500 2,8 % 19 300 4,3 % All others 2 400 38 5 % 1 700 29 2 % 1 400 17 6 % 2 100 50 0 % 3 200 52 4 % All others 2 400

• 38,5 %

1 700

• 29,2 %

1 400

• 17,6 %

2 100 50,0 % 3 200 52,4 % Total America 567 100 12,1 % 404 800

• 28,6 %

300 000

• 25,9 %

388 500 29,5 % 525 600 35,3 % Total World-wide 1 493 800 6,8 % 1 468 200

• 1,7 % 1 446 300
• 1,5 % 1 623 900

12,3 % 1 844 100 13,6 %

38 38 38

Figures as per 31.01.12 Source: Kontali

Atlantic salm on - Harvest Quantities W orld W ide

i t W FE in tons W FE

Harvest estimates Atlantic Salmon World Wide

28 % 25 % 30 % 160 000 180 000 200 000 23 % 18 % 20 % 120 000 140 000 17 % 19 % 18 % 14 % 16 % 15 % 10 % 15 % 60 000 80 000 100 000 7 % 10 % 5 % 4 % 5 % 20 000 40 000 60 000 4 % 0 % ‐ Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2009 2010 2011 2012 Chng 11‐12 0‐line

39 39 39

Figures as per 31.01.12 Source: Kontali

2009 2010 2011 2012 Chng 11 12 0 line

Atlantic salm on - Harvest Quantities Europe

i t W FE in tons W FE

Harvest estimates Atlantic Salmon in Europe

16 % 16 % 15 % 20 % 120 000 140 000

p

11 % 14 % 10 % 10 % 80 000 100 000 7 % 7 % 7 % 5 % 5 % 0 % 5 % 40 000 60 000 ‐2 % ‐6 % ‐5 % 20 000 40 000 ‐10 % ‐ Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2009 2010 2011 2012 Chng 11‐12 0‐line

40 40 40

Figures as per 31.01.12 Source: Kontali

ld id i

30 % 35 % 900 000

World Wide ‐ consumption

24 % 25 % 30 % 700 000 800 000 19 % 15 % 20 % 400 000 500 000 600 000 7 % 10 % 10 % 15 % 200 000 300 000 400 000 0 % 5 % ‐ 100 000 EU US Other Russia Japan 2010 2011E Chg 11

41 41 41

g

Figures as per 01.02.12 Source: Kontali

EU ‐ consumption

13 % 16 %14 % 20 % 80 000 90 000

EU consumption

10 % 16 % 10 % 15 % 60 000 70 000 80 000 6 % 10 % 7 % 7 % 5 % 40 000 50 000 ‐5 % ‐5 % ‐5 % 0 % 20 000 30 000 ‐6 % ‐10 % ‐ 10 000 1 2 3 4 5 6 7 8 9 10 11 12 2010 2011E Chg 11

42 42 42

2010 2011E Chg 11

Figures as per 01.02.12 Source: Kontali

US consumption

27 % 30 % 35 % 30 000

US ‐ consumption

8 % 22 % 20 % 29 % 20 % 21 % 20 % 25 % 30 % 20 000 25 000 8 % 22 % 5 % 10 % 15 % 15 000 ‐1 % 1 % ‐5 % 0 % 5 % 5 000 10 000 ‐8 % ‐10 % 0 % ‐1 % ‐15 % ‐10 % ‐ 5 000 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

43 43 43

2010 2011E Chg 11

Figures as per 01.02.12 Source: Kontali

Russia ‐ consumption

48 % 47 % 50 % 50 % 60 % 18 000 20 000

p

28 % 27 % 30 % 40 % 50 % 12 000 14 000 16 000 19 % 10 % 20 % 31 % 10 % 20 % 30 % 8 000 10 000 12 000 0 % ‐1 % ‐10 % 0 % 10 % 2 000 4 000 6 000 ‐14 % ‐20 % 10 % ‐ 2 000 1 2 3 4 5 6 7 8 9 10 11 12 2010 2011E Chg 11

44 44 44

Figures as per 01.02.12 Source: Kontali

Japan ‐ consumption

64 % 48 % 60 % 70 % 7 000

Japan consumption

30 % 38 % 26 % 40 % 43 % 45 % 40 % 50 % 60 % 5 000 6 000 30 % 15 % 12 % 26 % 20 % 30 % 3 000 4 000 12 % 0 % 10 % 1 000 2 000 ‐8 % ‐20 % ‐10 % ‐ 1 000 1 2 3 4 5 6 7 8 9 10 11 12 2010 2011E Chg 11

45 45 45

2010 2011E Chg 11

Figures as per 01.02.12 Source: Kontali

Other ‐ consumption

32 % 34 % 35 % 40 % 40 000 45 000 21 % 30 % 25 % 30 % 30 000 35 000 15 % 26 % 15 % 15 % 20 % 25 % 20 000 25 000 8 % 6 % 8 % 11 % 15 % 5 % 10 % 15 % 10 000 15 000 8 % 0 % 5 % ‐ 5 000 1 2 3 4 5 6 7 8 9 10 11 12 2010 2011E Chg 11

46 46 46

2010 2011E Chg 11

Figures as per 01.02.12 Source: Kontali

SPOT prices, fresh Atlantic salm on, cross- section, FCA Oslo, as of w eek 0 7 -2 0 1 2 ( Superior quality)

Avrg Q4 11 NOK 22.67 vs avrg Q4 10 NOK 37.77 (-40.0%) Avrg FY 11 31.27 vs avrg FY 10 37.45 (-16,5%)

( Superior quality) .

46,00

Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 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 FHL/NOS FCA Oslo 24,89 26,86 25,94 28,24 39,72 34,44 25,92 27,47 25,00 24,34 23,10 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 24,36

38,00 40,00 42,00 44,00 30,00 32,00 34,00 36,00 22 00 24,00 26,00 28,00 30,00 16,00 18,00 20,00 22,00 12,00 14,00 2005-1 2005-8 2005-15 2005-22 2005-29 2005-36 2005-43 2005-50 2006-5 2006-12 2006-19 2006-26 2006-33 2006-40 2006-47 2007-2 2007-9 2007-16 2007-23 2007-30 2007-37 2007-44 2007-51 2008-6 2008-13 2008-20 2008-27 2008-34 2008-41 2008-48 2009-3 2009-10 2009-17 2009-24 2009-31 2009-38 2009-45 2009-52 2010-6 2010-13 2010-20 2010-27 2010-34 2010-41 2010-48 2011-03 2011-10 2011-17 2011-24 2011-31 2011-38 2011-45 2011-52 2012-07 47 47 47

Figures as per 21.02.12 Source: NOS

Quarterly price NOS FCA OSLO Weekly price NOS FCA Oslo

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• Innovation
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development

• Market development

M k ti i d

• Marketing campaigns and

promotions

• Retail and end-customer
• Cost management

throughout the value chain

• Operational focus in

general!

48 48 48

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49 49 49

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