Arne Møgster CEO
Brief history Established in 1981 as a wholly owned family company within pelagic fisheries and salmon farming Fully integrated fishing company with license to participate in some of the worlds largest pelagic fisheries (Peru, Chile and Norway) World`s second largest producer of salmon and trout through ownership in Lerøy Seafood Group ASA Significant acquisitions since 2002 2002 Chile (FoodCorp) 2004 Peru (Austral Group) 2006 Norway (Welcon) 2008 Norway (Lerøy Seafood Group) 2010 Norway (Norway Pelagic ASA) 2012 Norway (Hordafor AS) 2013 Norway (AUSS agreed to merge its pelagic activities in Europe with Kvefi) 2014 Norway (Pelagia was established, merged Welcon, Norway Pelagic and Egersund Fisk) Listed on the Oslo Stock Exchange (since October 2006) 2
AUSS value chain Raw materials > Processing > distribution 5 6 7 6 3 4 5 3 2 2 1 4 1 Salmon 1 2 3 4 5 6 Salmon farming (including Brood stock and smolt production on land) Transport of live salmon Salmon processing To consumer market VAP processing Consumer market Pelagic 1 Pelagic fishing 2 Pelagic fish processing 3 Offcuts to fishmeal/oil 4 Fishmeal/oil production 5 To commodity market 6 Costumer VAP plants 7 Consumer market
Operations overview * Associated companies PERU CHILE NORTH ATLANTIC AUSTEVOLL SEAFOOD GROUP Harvesting 7% of anchovy quota centre-north 21 fishing vessels 9.1% of pelagic fishing quota 5 fishing vessels 4 fishing vessels 400,000-500,000 MT of pelagic fish annually (30 vessels) Salmon Norway: 149 salmon licenses 180,000-190,000 MT of salmon Salmon operation UK* Processing 7 Processing plants 4 Processing plants 47 Processing plants 58 processing plants Intake of 1.5-1.8 mill MT of pelagic fish annually Sales Own sales organisation Own sales organisation Own sales organisation Wholesale with global sales & distribution 4
Historical highlights (all figures in MNOK) 2009 * 2010 * 2011 * 2012 (restated) 2013 (restated) 2014 H1 2015 Turnover 11 325 12 745 12 162 11 436 12 658 14 344 7 654 EBITDA 1 922 2 541 2 046 1 238 2 380 2 516 1 295 EBITDA % 17 % 20 % 17 % 11 % 19 % 18 % 17 % EBIT** 1 442 1 984 1 533 657 1 711 1 856 954 Net result*** 988 1 766 527 647 1 603 1 001 205 Total assets 16 291 19 042 18 574 20 019 22 684 23 344 23 246 Booked equity 7 095 9 111 9 200 10 120 11 464 12 360 12 132 Equity % 44 % 48 % 50 % 51 % 51 % 53 % 52 % Net interest baring debt 4 137 3 162 3 361 3 943 5 103 3 960 4 560 Earnings per share (NOK) 3,83 6,03 1,82 2,08 3,48 2,76 0,81 Proposed dividend per share (NOK) 1,20 1,50 1,00 1,20 1,60 2,00 Yield 3,3 % 3,0 % 4,8 % 4,2 % 4,5 % 4,3 % Paid dividend in total MNOK (the year after) 243,3 304,1 202,7 243,3 324,3 405,4 16 000 14 000 12 000 10 000 8 000 6 000 4 000 2 000 - Historical EBITDA 2009 * 2010 * 2011 * 2012 (restated) 2013 (restated) Turnover EBITDA EBITDA % 2014 H1 2015 25% 20% 15% 10% 5% 0% Salmon segment 1 154 1 806 1 485 775 1 938 2 160 971 Pelagic segment incl. holding 768 735 561 463 442 356 324 Total EBITDA 1 922 2 541 2 046 1 238 2 380 2 516 1 295 60 AUSS Share Price Development 50% of Pelagia (proforma 2012 and 2013) 195 260 295 145 Total EBITDA incl. 50% of Pelagia 1 433 2 640 2 811 1 440 50 Pelagic segment incl. 50% of Pelagia 658 702 651 469 40 30 20 * 50% of Welcon Group proportionally consolidated ** ex. Biomassadj. *** incl.biomassadj 10 0 Nov-10 Feb-11 May-11 Aug-11 Nov-11 Feb-12 May-12 Aug-12 Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14 Aug-14 Nov-14 Feb-15 May-15 Aug-15 5
Pelagic Austral Group S.A.A Foodcorp Chile S.A Pelagia AS (associated) Fishing Processing Distribution
Operation in Peru Austral Group S.A.A Fishing Processing Distribution 4 processing sites 4 fishmeal and fish oil plants 2 canning plants (HC) 1 frozen-fish plant (HC) 21 active vessels 7% quota Incl. 11 RSW-equipped vessels Austral - Austral - Austral - Headquarters Fishmeal and Human consumption factories Fishmeal factories 7
Anchovy biomass in Peru North/Centre of Peru (MT) period 1998-2015 Source: IMARPE 8
Operation in Chile Foodcorp Chile S.A Fishing Processing Distribution 5 vessels 9.1% of Chilean total horse mackerel quota (South) 1 processing site in Coronel Fishmeal & fish oil plants Canning plant (HC) Freezing plant (HC) 6,100 MT of hold capacity Coastal vessel contracts 9
Annual catches in Chile Jack mackerel unloaded in Chile 2000-2015E MT 1 800 000 Jack mackerel (Trachurus murphyi) Quota for 2015 is 298,000 MT 1 600 000 1 400 000 1 200 000 1 000 000 800 000 600 000 400 000 200 000-2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015E 10 Source: SPRMO Sources: Official up to July+Fishing Companies estimates
Pelagia AS(associated) Fishing Processing Distribution Pelagia s share of Norwegian landings 2014 Mackerel (HC) 2014 Herring (HC) 2014 Capelin (HC) 2014 51 % 49 % 43 % 57 % 52 % 48 % Pelagia Others Volume ( 000 MT) 2015E 2014 Human Consumption (HC) 415 453 Fishmeal/FPC & oil 877 839 Pelagia - Pelagia - Pelagia - Headquarters 17 Human consumption factories 10 Fishmeal and fish oil factories Source: Pelagia AS All figures are based on landing in Norway 11
North Atlantic pelagic quotas (2007-2015 est) 5 000 000 MT (TAC) 4 500 4 000 3 500 3 000 2 500 2 000 1 500 1 000 500-18 5 53 219 25 326 115 127 423 84 216 432 143 139 437-161 82 250 209 340-374 160 20 82 393 65 40-580 390 146 33 8 292 360 1 700 381 700 120 1 250 606 510 1 279 540 435 320 177 200 1 204 180 180 380 391 150 126 569 41 643 456 572 181 211 500 100 171 126 200 164 672 586 1 240 275 542 1 054 189 405 1 518 1 643 465 1 483 1 280 470 988 445 833 619 418 283 2007 2008 2009 2010 2011 2012 2013 2014 2015 E Boar Norway Pout Sand Eel Capelin Iceland Capelin Barent sea Blue Whiting Horse Mackerel Mackerel NS-Herring NVG-Herring Source: NORGES SILDESALGSLAG 12
Salmon Lerøy Seafood Group ASA Farming Processing Distribution
Lerøy Seafood Group ASA Salmon/trout farming Lerøy Aurora 26 licenses Licences Smolt cap. 2011 GWT 2012 GWT 2013 GWT 2014 GWT 2015E GWT Lerøy Aurora AS* 26 11,5 18 100 20 000 24 200 26 800 31 000 Lerøy Midt AS 55 22,0 62 300 61 900 58 900 68 300 73 000 Lerøy Sjøtroll 61 22,6 56 200 71 600 61 700 63 200 62 000 Total Norway 142 52,1 136 600 153 400 144 800 158 300 166 000 Villa Organic AS** 6 000 Lerøy Midt 55 licenses Norskott Havbruk (UK)*** 10 900 13 600 13 400 13 800 15 500 Total 147 500 167 100 158 200 178 100 181 500 Lerøy Sjøtroll 61 licenses *) 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 14
Ten years with sustainable growth, more to come! 18 000 180 000 16 000 160 000 14 000 140 000 12 000 120 000 NOK million 10 000 8 000 6 000 100 000 80 000 60 000 GWT 4 000 40 000 2 000 20 000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 0 Share of harvest volumes in Norskott Havbruk not included. GWT Market Cap EV 15
Outlook Long term trends in the fishmeal and fish oil market
Production trends Decreasing world supply Downward trend for both fishmeal and fish oil, from the 90 s Stronger decline in the last decade Shift towards non-traditional countries (Asia, Africa) Source: IFFO 17
Fishmeal and fish oil supply worldwide E Source: IFFO Source: IFFO 18
Global fishmeal usage trend Fishmeal usage by sector Global fishmeal usage by sector Fishmeal usage by area 19 Source: IFFO
Fish oil usage trend Fish oil usage by sector Global fish oil usage by sector Fish oil usage by area Source: IFFO 20
Increase of salmon feed requirement and worldwide aquaculture Increase of feed production Source: Skretting IFFO conference Vancouver 2014 Source: World Bank Report Fish to 2030 21
Fishmeal demand in China Impact of China s demand Source: Michael Zhan Haid IFFO conference Vancouver 2014 Strong increase of aquafeed in China over the last 15 years. Still high % of fishmeal inclusion in diets. Hog feed production expected to increase, small % of fishmeal but significant volume. 22
Fishmeal consumption in China By feed species - 2014 Aquatic product ouput in China Source: IFFO/Feedtrade Source: IFFO/MOA 23
Better utilisation of raw material Source: World bank report Fish to 2030 Better Utilisation of fishmeal per unit of feed Diversification of Fishmeal and fish oil sourcing (i.e. Asia and Africa) 24
More innovation Fishmeal and fish oil nutritional value More R&D into fishmeal nutritional value: Better freshness Increase protein content Better digestibility Increase amino acid content 25
Increase of by-product processing Source: IFFO Source: World Bank Report Fish to 2030 Significant increase of by-product processing into fishmeal and fish oil. Increase supply of marine ingredients 26
Substitutes and increased efficiency in diets Source: Christian Meinich Holtermann IFFO conference Vancouver 2014 Source: World bank report Fish to 2030 Reduction of fishmeal and fish oil inclusion in diets 27
Better allocation of usage Changing uses of fishmeal 1960 to 2010 Better allocation of Fishmeal usage: from animal feed to aquaculture, from omnivorous species to carnivorous species, from grower to starter diets. 28
Fishmeal price development 2000 Fishmeal 64/65% vs. Soyameal 44% (CIF EUROPE) USD/MT 1800 1600 1400 1200 1000 800 Fishmeal 600 400 Soyameal 200 0 Source: IFFO/Indexmundi 29
Fish oil price development 2500 Fish oil vs. Rapeoil (CIF Europe) 2000 USD/MT 1500 1000 Fish oil 500 Rapeoil 0 Source: IFFO/Indexmundi 30
Disclaimer 32 This Presentation has been produced by (the Company or Austevoll ) solely for use at the presentation to the market held in connection with lunch presentation at Intrafish Seafood Investor Forum, London on the 04. November 2015. This document contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words believes, expects, predicts, intends, projects, plans, estimates, aims, foresees, anticipates, targets, and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. Neither The Company or any of their respective group of companies or any such person s officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. The Company assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to our actual results. An investment in the company involves risk, and several factors could cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements that may be expressed or implied by statements and information in this presentation, including, among others, risks or uncertainties associated with the company s business, segments, development, growth management, financing, market acceptance and relations with customers, and, more generally, general economic and business conditions, changes in domestic and foreign laws and regulations, taxes, changes in competition and pricing environments, fluctuations in currency exchange rates and interest rates and other factors. Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this presentation. the company does not intend, and does not assume any obligation, to update or correct the information included in this presentation. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, none of the Company or any of their group companies or any such person s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. By attending the quarterly presentation or upon reading the Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company s business. This Presentation is dated 04.11.2015. Neither the delivery of this Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date.