3. SalMar ASA : an overview
Northern Norway :23 licenses / 28 000 tgw (2013E)
www.salmar.no
Central Norway : 58 licenses / 86 000 tgw (2013E)
3
SalMar Japan KK – sales
SalMar Korea
Group: 2012: 102 600 tgw / 2013E 114 000 tgw / 2014e 133 000 tgw
50% of Scottish Sea Farms Ltd. And 14,9% of P/F Bakkafrost
• Founded in 1991, Frøya, Norway, listed on Oslo Stock Exchange May 8th 2007
• Revenues: NOK 4,2 billion, FY 2012 result: NOK 483 million Approx. 920 employees
• 81 wholly owned farming licenses in Norway. 92 including all partnerships.
• One of the largest and most cost efficient salmon farming companies in the world
4. SalMar has been built brick by brick …
www.salmar.no
22 % annual
growth in volumes
4
25 % annual
growth in EBIT
5. www.salmar.no
…to become an fully integrated salmon farmer…
5
• Brood stock
• Hatch,
vaccination and
smoltification
• 81 owned
licenses
• Rauma genetics
• 7 production
facilities
• Essential for the
performance in
the entire value
chain
• SalMar Sales AS
• Vikenco
• SalMar Japan KK
• Harvesting
• Roe
• InnovaMar facility
• SalMar Korea
• VAP
• Long time partners
• 92 including all
partnerships
• High quality
sites
• Fish health
• Scale, quality and
cost
6. …and is now one of the leading salmon producers
in the world
www.salmar.no
The fourth largest salmon producer in the world
6
The third largest salmon producer in Norway
The largest producer of organic salmon in the
world
7. Delivering industry leading margins…
…consistently over time
Unrelenting focus on biological performance (production costs)
No 1 priority:
Realize the efficiency gains of InnovaMar
Further develop sales and distribution capabilities
Keep cost leadership in Norway
Organic and strategic growth – even better utilization of licenses
www.salmar.no
Growth through acquisitions
1.
2.
3.
Central and Northern Norway
Scotland,
Other areas
Updated pr 3q13
4q rolling EBIT/kg
20
SALM
15
10
5
0
-5
4q06
7
2q07
4q07
2q08
4q08
2q09
Source: Company presentations, EBIT/kg (4q rolling volume weighted)
4q09
2q10
4q10
2q11
4q11
2q12
4q12
2q13
9. Third quarter highlights
Another strong quarter, heading for strongest year ever
– Higher revenues and continued EBIT-improvement q/q driven by stronger prices
Average salmon-price up ~50% from Q3 12
www.salmar.no
Operational and biological challenging quarter, increase of SAV2 (PD) in Central Norway
Enhanced underlying performance in S&P, earnings dampened by fixed price contracts
Harvest volume (1,000 tons)
35,4
Operating income (NOKm)
34,8
13,84
1 695
29,6
23,2 22,8
EBIT/kg (NOK)
1 227
1 329 1 277
1 433
10,14
3,14
Q3 12 Q4 12 Q1 13 Q2 13 Q3 13
Q3 12 Q4 12 Q1 13 Q2 13 Q3 13
10,36
4,26
Q3 12 Q4 12 Q1 13 Q2 13 Q3 13
9
10. Group profit and loss Q3/9M 2013 boosted by higher prices,
Revenues
NOK million
Q3 2013
Q3 2012
9M 2013
9M 2012
1 695,4
823,3
165,5
288,5
1 227,2
713,4
122,4
239,3
4 404,8
2 112,2
436,6
791,4
2 879,6
1 578,3
338,8
621,4
4 204,8
2 324,8
483,2
886,0
418,1
152,1
1 064,6
341,2
510,8
57,7
40,9
153,2
122,6
170,2
Operational EBIT
360,4
111,2
911,4
218,6
340,7
Fair value adjustment
Particular biological events
Non-recurring gains on aquisition
Operational profit
-94,9
265,5
-25,6
-3,5
82,2
57,8
197,5
1 166,7
93,4
-54,6
77,4
334,8
290,4
-54,6
62,4
638,9
30,5
35,7
11,8
-41,0
124,6
192,5
51,1
-118,5
93,9
-124,3
331,7
52,9
1 483,8
267,4
608,5
65,7
25,8
241,3
53,2
127,1
266,0
27,1
1 242,5
214,2
481,4
Operating income
Cost of goods sold
Payroll expenses
Other operating expenses
EBITDA
www.salmar.no
average salmon price at NOK 38.87/kg
up 50% yoy*
FY 2012
Depreciations
Income from investments in associates
Other financial items
Profit before tax
Tax
Net profit for the period
Strong operational EBIT at NOK 360m
vs. NOK 111m in Q312 and NOK 316m
in Q2
Harvest volume 34,800 tons, in line with
Q3 12
Contract share of 25%, with average
price below average spot.
Contract share 5% of company volumes
so far in 2014.
Operational and biological challenging
Group EBIT/kg at:
-
Q3-13 NOK 10.36
9M-13 NOK 11.28
* Historical prices adjusted
10
12. There is still room for significant production
growth in Norway
Norway
SINTEF Fisheries and Aquaculture et.al. states that the
Norwegian seafood industry can be six times bigger within
40 years (from BNOK 90 to BNOK 550).
www.salmar.no
Aquaculture has a key role:
12
- Volume: From 1.0 – 5.0 mill tons. (5x). Approx. 5% py.
- Turnover: From 34.0 BNOK – 238.0 BNOK. (7x)
Realizing growth potential requires sustainable production
21 000 km coast line (50% of the equator)
Coastal area of 90 000 km2
Combined agricultural land in Norway, Sweden, Denmark
and Finland
Competent regulators and authorities
13. www.salmar.no
And we know that the conditions for further growth is
here…
Natural habitat of the Atlantic salmon.
Gulf Stream, temperature regime and strong unidirectional currents.
IMR: Marine and coastal currents makes sure that nutrients are not a problem in the big picture - and
much more fish can be produced.
15. …but it requires an absolute focus on sustainability
www.salmar.no
"Why is there disease"
Environment
Pathogen
15
16. www.salmar.no
Biology and technology key drivers to
ensure sustainable growth
SalMar believes that the use of new technologies and the utilisation of more exposed sites can promote further
growth for the Norwegian aquaculture industry in the years ahead.
17. Strong partnerships vital to drive the industry forward
Depending on close collaboration with various stakeholders and “healthy” industry regulations
Feed a growing population and meet demand
www.salmar.no
Efficient and flexible cooperation with the competent national
/ regional / local authorities and agencies
Strict but flexible regulations is key
Assessment procedures before permission is granted
Monitoring the environment during production
Rest periods before new production
SalMar is actively working to influence the development of
industry regulations
More flexible MAB scheme
Recommend a growth rate of approx. 5% per year going forward
Work closely with other players and local communities
Fish Farming, Feed ,Technology, etc.
Finding the key to the future of aquaculture
18. SalMar sees great potential for further growth
and development
SalMar sees significant growth opportunities:
18
SalMar has had a growth of nearly 22% p.y.
−
www.salmar.no
−
With 6% (total) growth, p.y. till 2025 we see a potential doubling of total harvest volumes.
−
Estimated 7000 tons of organic salmon in 2013, tripled to 2025 (10% of total production).
−
Strong growth also expected short term. 2014 World: 4%. SalMar 15%.
19. Thank you for your attention
www.salmar.no
See: www.salmar.no for more information