Presentation is loading. Please wait.

Presentation is loading. Please wait.

Marine Harvest Seafood Investor Forum London 19 November 2013.

Similar presentations


Presentation on theme: "Marine Harvest Seafood Investor Forum London 19 November 2013."— Presentation transcript:

1 Marine Harvest Seafood Investor Forum London 19 November 2013

2 Implied protein consumption driven by population growth only Sources: FAO (2009); FAOstat Food Balance Sheets, United Nations population data; World Population Prospects: the 2012 Revision Assumption: Constant consumption of protein per capita

3 Farmed Atlantic salmon relatively small 3 Sources: OECD-FAO Agricultural Outlook 2013 Kontali Analyse Atlantic salmon

4 Large opportunities within aquaculture species 4 Source: Kontali Analyse

5 Examples of protein co’s and area of potential 5

6 A unique nutritional package 6 Proteins: High quality, easy digestable proteins Omega-3: High content of Omega-3 fatty acids Vitamins: Rich in A, D og B12 vitamins Mineral: High content of iodine & selen, taurin og sterols

7 7 Farmed salmon - Highly efficient use of resources

8 8 Value CAGR of 8% - Volume CAGR of 6%

9 Historic price–volume relationship 9 Source: Kontali Analyse  Both 2012 and 2013 clear outliers compared to historical relationship

10 growth expected between -1% and 5%  Growth in 2015 also expected to be moderate

11 11 Tough biological conditions in Chile….  Weighted average EBIT/kg for selected listed companies in Chile and Rest of World

12 12 …leads to strong cost increases…  Weighted average EBIT/kg for selected listed companies in Chile

13 13 Source: Sernapesca …and declining yields per smolt for the industry  Cannot rule out unprofitable operations next few years  Slight decline in industry volumes expected in 2014

14 MHG - Total number of sea lice treatments in Chile 14

15  Initial signals implies more liberal licensing regime  Introduction of average Maximum Allowed Biomass constraints  Assessment of current licensing system in general  This may lead to increased biological risk and reduced sustainability  Marine Harvest perceives this as a threat due to the industry’s dependency of a well regulated and sustainable framework  Marine Harvest’s recommendation:  Continuation of current system with maximum allowed biomass  Predictable annual capacity increase of 3-5% for ten years if deemed sustainable  Aquaculture Stewardship Council (ASC) certification should be encouraged  Establishment of Aquaculture Directorate to secure uniform approach  Proceeds from increased capacity directed to host communities Expectations for new Norwegian government 15

16 MHG – Leading position across the value chain 16 FeedFarmingSales/VAP 220 thousand tonnes vs. global production of ~2.6m Marine Harvest business areas New #1 405 thousand tonnes vs. global production of c.1.85m (22%) Global sales network Leading position in VAP Focus areas: Successful construction and implementation by July 2014 Acquisitive growth in Norway and Chile Integration of Morpol Restructuring programme in VAP Organic growth in VAP Position:

17 Fish feed project proceeding according to plan 17  220 thousand tonnes capacity – 60% of MHG requirement in Norway  ~NOK 800m investment - Completion July 2014

18 18 Canada Volume: Chile Volume: Faroe Islands Volume: Scotland Volume: Ireland Volume: Norway Region North Volume: Norway Region North Volume: Norway Region Mid Volume: Norway Region Mid Volume: Norway Region West Volume: Norway Region West Volume: Norway Region South Volume: Norway Region South Volume: Marine Harvest farming regions

19 19 MHG – Volume recovery from drop in 2013

20 Marine Harvest sales & marketing structure 20 Europe, Sales & Marketing: VAP Processing: 60,000MT finished product, turnover 4,5BN NOK (VAP) VAP Production: France, Belgium, Holland, Poland, Czech Rep 2500FTE Sales to retail, food service and industry Sales office: France, Belgium, Spain, Italy, Czech Rep, Norway, Scotland and Ireland Asia, Sales & Marketing: Sales 1,1BN NOK. 25,000MT finished products VAP Processing: Tokyo & Shanghai 115FTE Sales Office in: Japan, China, Korea, Taiwan, Thailand and Singapore America, Sales & Marketing: VAP Processing: 13,400MT finished product, turnover 1,0BN NOK VAP Processing: USA & Chile Sales to retail, food service and industry 485FTE Sales Office in: Miami, LA and Puerto Montt (Chile) Note: Figures in Europe excluding Morpol

21 Morpol – Competition clearance obtained 21  Major step in becoming a leading integrated protein player  The leading secondary processing entity in Europe  Complementary market position to Marine Harvest  ~30 thousand tonnes HOG farming assets  ~18 thousand tonnes in Orkneys and Shetland to be divested  ~12 thousand tonnes to be integrated Norway and Scotland  Location in Northern Norway where MHG is not currently present  Well positioned for further licences in this region in 2013 licencing round  About 4,000 employees

22 Outlook 22  Strong market poses attractive 2014 net cash flow opportunity  Forward prices of NOK 38 per kg in 2014 and 35 in 2015  Significantly reduced level of investment  Strategic focus areas  Successful development of green-field feed capacity  Acquisitions in Norway and Chile  Integration of Morpol  Expected impact from the higher than normal investments in 2013  tonnes increase in 2014 harvest volumes  Significant feed capacity in Norway from 2H 2014


Download ppt "Marine Harvest Seafood Investor Forum London 19 November 2013."

Similar presentations


Ads by Google