Nireus Aquaculture S.A.

Transcription

1 Nireus Aquaculture S.A. Company Presentation - Investors Athens Greece June 2014

2 Nireus: A unique value proposition 1. Very attractive market fundamentals for fish farming 2. Nireus is No. 1 in Mediterranean fish farming 3. Unique competitive advantages for Nireus: a. extended product mix b. the largest customer base globally c. controls the full production value chain d. experienced management e. proprietary know-how Vision: to become a top tier global player in the fish farming industry 2

3 Aquaculture - resilient high growth Fish Supply (mi. Ton.) FAO projection for World Aquaculture and Fisheries Captures Captures Aquaculture Population Population (bi.) U.S. Projected Consumption Growth, Citrus Fruit Fish Vegetables Dairy Sugar Beef Processed Potatoes Percent Change in Quantities Consumed, FAO: Aquaculture will serve 100% of the growing demand for seafood (fisheries circular no. 1001) USDA: Fish consumption is expected to grow by 26% annually till nd largest increase in the food sector (USDA, ERS, 2003) Time Magazine: The Future of Fish Can farming save the last wild food? Economist: Blue Revolution The promise of fish farming 3

4 Med fish farming: a multi-species cultivation Production of Seabass and Seabream e ('000t) - source Kontali e Seabream (Sparus aurata) Seabass (Dicentrarchus labrax) The advantages of multi-species cultivation Profit stability Spread of the risk from price fluctuations Reduced capital needs Meagre (Argyrosomus regius) Transfer and sharing of technological and biological advances Improved operating margins Marketing synergies 4

5 Greek fish farming: bass & bream industry leader Greece Turkey Spain Italy France Croatia Greek Fish Farming Industry Mediterranean Leader Fresh fish exports from Greece (mi. ) - source: HEPO Production (ton.) Greek fish farming industry consolidation over time Companies Licenses Industry data: Federation of Greek Mariculture Production data: Kontali Analyse The Greek aquaculture sector is a rising star and the 2 nd most important key economic sector for the growth of the Greek economy Source: Mc Kinsey, Greece 10 Years Ahead, Sept

6 Sales rank of European fish farmers Sales Rank of European farmers Company Country Fish 2013 sales (mi. ) Marine Harvest Salmon Leroy Salmon Salmar Salmon 747 Cermaq Salmon 616 Grieg Salmon 288 Sales for Andromeda & Dias are estimates Nireus holds the dominant position in both the domestic and the global market Nireus Bass - Bream Selonda Bass - Bream Andromeda Bass - Bream exchange rate : 1 = ΝΟΚ 119 6

7 With experience in multi-species cultivation Seabream Seabass Meagre Common dentex Common Pandora Sharpsnout seabream White seabream (sar) Stripped seabream Pagrus 7

8 A leading genetic selection program Genetic Selection Program Overview Breeding Nucleus Testing Units Challenge Tests (n diseases) Disturbance traits (e.g. carcass quality) Field Performance (n environments) Breeding Candidate Testing (weight) Data Tagging Selection EBV s Genetic Evaluations Brood stock Family prod. & Larviculture Biosecure BL s Commercial end Users Cage Farms Maturation Hatcheries EBV: Estimated Breeding Values BL: Broodstock lines NIREUS genetically selected bass and bream gain 37% more weight versus non-selected fish for the same farming period 8

9 Unique know how in new technologies Algae - culture Nireus algae R&D / production facilities Algae-culture has received global attention following ExxonMobil s recent $600mm investment in algae-based biofuels Algae research is focusing on a wide range of applications: Fish & other feeds Spirulina nutrition supplements Polysaccharites Cosmetics Collagen Biofuels Nireus has market leading R&D and operations for algae culture 9

10 Production facilities in Greece, Turkey, Spain Fish feed Juveniles Fish farming Packaging Processing Greece Turkey Spain : 10 gr juveniles pre-growing units Vertically integrated operations ensure: Completely safe production conditions => less risk from disease Absolute control over the production cycle => lower cost 10

11 With vertical integration from farming to distribution Fish Farming Processing Distribution 5 hatchery units 42 farms 5 packaging centers 1 processing center Distribution in 40 + countries PLUS 4 inland pre-fattening units producing 10 gram juveniles 1 R&D center 2 Factories producing tons of fish feed - free of gmo 1 company producing fish cages & nets 1 company selling genetic material, feed, equipment and health products to cattle, poultry and swine farmers (KEGOagri) 11

12 An extended product mix Seabass, Seabream, Meagre, Pagrus Fresh and frozen, whole, gutted, fillets Fish feed gmo free Nets & Cages Genetic Material, feed, equipment & health products to industrial livestock farmers Juveniles 12

13 Sales to the largest markets in Europe 13

14 The #1 exporter in the Greek food sector Sales Breakdown (%) Exports Evolution % 90% 80% 70% 60% 50% 40% 30% 20% in mi. 3M M 2014 Greece EU Other % 0% M 2014 Εxports Domes tic sales 14

15 Exporting 92% of produced fish to 40 countries Sales Production and Sales Every week we ship 600 tons of seabass and seabream ( = 1.5 million 400 gr. fish ) to > 400 clients in 40 countries 15

16 With exports growth coming from new markets Exports Evolution EU Non-EU 31,9 122,3 12,5 90,8 Exports growth is coming from new markets 5 year CAGR EU countries: 6.14% Non-EU countries: 20.63% Sales (mi. ) in mi % EU % Non-EU % 16

17 Significant growth potential Fish Juveniles Fish feed Sales Sales 12: t Sales 13: t Sales 12: 49 mi. pieces Sales 13: 53 mi. pieces Sales 12: t Sales 13: t Sales growth potential +15% +100% +23% Capacity Capacity: t Capacity: 200 mi. pieces Capacity: t % of 2013 Revenues 80% 5% 8% Current fish farming capacity can expand under the new carrying capacity law 17

18 Balance Sheet Assets in mi. 3M M M 2013 Property Plant and Equipment 86,28 88,16 86,94 Goodwill 30,77 30,77 30,77 Biological non-current 82,79 99,83 70,06 Other non-current 16,43 15,99 16,46 Total non-current 216,27 234,74 204,23 Biological current 66,90 136,71 100,09 Inventories 9,62 11,44 10,74 Trade Receivables 45,40 54,28 49,83 Other current 13,62 18,34 14,71 Cash & equivalents 7,76 12,01 9,14 Total current 143,31 232,78 184,50 Total assets 359,57 467,52 388,73 From year-end Bank debt down (5.3) mi. Biological assets reduced by (20.5) from lower growth in winter months Equity and liabilities in mi. 3M M M 2013 Shareholders' equity 51,98 140,23 64,58 Non-c ontrolling interests (6,74) (5,81) (6,90) Total shareholders' equity and non-controlling interests 45,25 134,41 57,69 L/T bank borrowings 38,30 83,65 38,30 Deferred inc ome tax liabilities 2,38 24,59 5,73 Other non-c urrent liabilities 12,42 11,39 12,53 Total non-current liabilities 53,10 119,62 56,57 Trade & other payables 50,19 57,27 61,23 Current bank borrowings 188,27 139,74 193,54 Other current liabilities 22,76 16,47 19,70 Total current liabilities 261,22 213,49 274,48 Total liabilities 314,33 333,11 331,05 Total equity and liabilities 359,57 467,52 388,73 18

19 Income Statement in mi. 3M M M 2013 Biological Sales 34,24 36,26 149,47 Non-Biological Sales 9,27 8,33 49,11 Total Sales 43,51 44,58 198,58 Effect of measurement of biological assets at fair value (*) (20,46) (3,63) (71,27) Raw material consumption (17,19) (15,86) (107,43) Salaries & personnel expenses (6,75) (7,60) (30,85) 3rd party fees and benefits (4,74) (4,47) (19,99) Other operating expenses (5,47) (6,35) (31,82) Other income 0,53 0,37 2,62 EBITDA before biological adjustment 1,83 (0,61) (13,80) Biological adjustment (12,38) 7,66 (46,38) EBITDA after biological adjustment (10,56) 7,05 (60,17) Earnings / (loss) before interest and taxes (EBIT) (12,38) 5,28 (67,74) Earnings / (loss) before taxes (EBT) (15,58) 2,27 (87,43) Tax 3,17 (4,62) 11,95 Earnings / (loss) after taxes (EAT) (12,41) (2,35) (75,48) Equity holders of the parent (12,57) (1,83) (75,07) Non-controlling interests 0,16 (0,51) (0,41) Earnings per share ( ) (0,1974) (0,0288) (1,1791) (*) equal to (beginning inv. + purchases - ending inv.) of biological assets and is added to / (substracted from) sales according to IFRS Operating - before tax - expenses stable at 39.4 mi. Net results impacted by (12.4) negative biological adjustment due to lower biomass growth 19

20 Cash Flow Statement in mi. 3M M M 2013 Profit before tax (15,58) 2,27 (87,43) Depreciation 1,94 1,92 8,12 Miscellaneous other charges 3,39 3,83 24,31 Fair value adjustment 12,38 (7,65) 46,37 Reduction /(increase) of inventories 8,95 9,59 22,65 Reduction /(increase) of receivables 5,23 3,12 (2,22) (Reduction)/increase of trade & other payables (10,26) (4,90) 2,04 Interest expenses paid (0,53) (2,04) (6,42) Taxes paid (0,00) - (0,24) Cash flow from operating activities 5,51 6,14 7,19 Net (Investments) / Divestments (1,01) (1,17) (6,85) FCF Free cash flow after operations and investments 4,50 4,97 0,33 Received interest 0,04 0,02 0,20 Cash flow from investing activities (0,97) (1,15) (6,66) CFO 5.5 mi. FCF 4.5 mi. Trade receivables down (5.3) mi. Trade payables down (10.3) mi. Cash flow from financing activities (4,36) (2,65) 1,22 Total cash flow reporting period 0,17 2,34 1,75 Cash and cash equivalents at the beginning of the period 3,62 3,01 3,01 Foreign exchange adjustments (0,03) 0,13 (1,14) Cash and cash equivalents at the end of the period 3,76 5,47 3,62 20

21 Sales by Business Sector Sales by sector for 3M 2014 (% distribution) Fish farming = fish + juveniles sales (own +3 rd party) Other = aviculture and animal culture products sold through the 100% subsidiary KEGOagri & fish farming equipment Sales of fish farming down (1.1) mi. from lower juveniles sales Feed sales down (0.4) mi. Sales of aviculture, animal culture products & equipment up 0.4 mi 21

22 Stock Market Performance Nireus versus General Index & FTSEM 12M Shareholders structure Foreign Institutions 25% Domestic Institutions 4% ` Basic Shareholders 32% Public 39% Overview of Nireus Stock Price ( ) Bloomberg Ticker NIR:GA Number of shares (mi.) 63.7 Reuters Ticker NIRr.AT Market cap (mi ) 15.6 ASE Ticker NHP High / Low 52 weeks ( ) 0.508/ 0.20 ASE Sector Agriculture & Fisheries 3M Av Daily Turnover( 000) 77 Index Participation GD, FTSEA, FTSEGT, DTP, FTSEGTI, SAGD 22

23 Appendix Cost dynamics in fish farming Price Sea bass and sea bream: price development Industry outlook Feed consumption juveniles input The IFRS 13 & IAS 41 for biological assets Communication & Financial Calendar 23

24 Cost dynamics in fish farming Cost per kg cost - Mortality cost - Disease cost - Weight Operations + Disease + Mortality Operations + Disease Normal Operations Harvest Weight Vertical structure ensures less risk from disease The 10-gr juvenile pre-fattening units target reduction in mortality 24

25 Bass & bream Weekly price development 2014 Seabass (Dicentrarchus labrax) Seabream (Sparus aurata) Source: Kontali analyse Seabass & Seabream Apr 2014 monthly report Mercamadrid prices are wholesale and indicative of the price trend actual fish prices vary by size and market External Factors 25

26 Feed Consumption and Juveniles Input Fish feed data: Kontali Analyse 26

27 Appendix: IFRS 13 & IAS 41 for biological assets Fish farming companies are required to calculate and report the fair value of their biomass and the interperiod adjustment to the net fair value (IFRS 13 & IAS 41). The fair value of the biomass is calculated as volume (kg) x market price at the end of the period and is adjusted for the part that is not ready to harvest. The key drivers are the volume and weight of the biomass and the market price at the time of the calculation. The ready to harvest part of the end-of-period biomass is reported in the B.S. as a current asset and the not ready to harvest as a non-current asset. Sales in the I.S. are separated into biological and nonbiological. Biological sales represent sales of juveniles and fish (raw and processed) produced by the company. Non- biological sales represent the sales of the fish/juveniles produced by others, the sales of fish feed, equipment, and other products. The effect of measurement of biological assets at fair value is added to (subtracted from) sales, and is computed as follows: biomass at beginning of period (+) purchases of biological assets for production (-) biomass at end of period = effect of measurement of biomass at fair value Fair value of biomass (B.S.) Key Drivers Biological Sales (I.S.) Non-biological sales (I.S.) Total Sales (I.S.) Effect of measurement of biomass at fair value Volume x Price Volume Price The sales of fish & juveniles produced to include processed fish The sales of fish & juveniles produced by others, fish feed, nets, other products Biological sales + Non-biological sales The inter-period difference in the fair biomass value 27

28 Communication Financial Calendar Financial Calendar M 2013 Results Monday, 31 March M 2014 Results: Friday, 30 May 2014 Ordinary AGM: Monday, 30 June M 2014 Results: Friday, 29 August M 2014 Results: Friday, 28 November 2014 Investor Relations Ms. Maria Kotsovou, IR Manager Tel Mob Legal Notice This presentation has been prepared solely for informational purposes. Any projections or other estimates in this presentation, including estimates of returns or performance, comments with respect to our objectives and strategies, or the results of our operations and business, are forward-looking statements based upon certain assumptions that may be wrong. These assumptions may be influenced by factors within or beyond our control, and actual results may differ materially from any estimates and projections. Factors influencing actual results include but are not limited to fluctuations in fish prices and raw material prices, the effects of competition in the areas in which we operate, changes in the economic environment, regulatory and economic conditions. This presentation is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. No part of this presentation may be construed as constituting investment advice or a recommendation to enter into any transaction. No representation or warranty is given with respect to the accuracy or completeness of the information contained in this presentation, and no claim is made that any future offer to transact any securities will conform to any terms that may be contained herein. Before entering into any transaction, investors should determine any economic risks and benefits, as well as any legal, tax and accounting consequences of doing so, as well as their ability to assume such risks, without reliance on the information contained in this presentation. 28