London Seafood Investor Forum

Transcription

1 London Seafood Investor Forum Knut Nesse, CEO Nutreco 31 October 2014

2 Agenda SHV offer for Nutreco Nutreco and Q3 trading update Industry fundamentals

3 1. SHV offer for Nutreco

4 SHV recommended cash offer for Nutreco SHV has made an intended full cash offer for Nutreco of 40 per share SHV fully supports long-term growth strategy Nutreco Intended offer in best interests of all stakeholders, including our employees, customers and shareholders 4

5 Introduction to SHV SHV is a privately-held family company which aims to maintain its strong position in a number of operational activities and selected investment activities SHV invests for the long term, expands and develops businesses and provides their customers with excellent products and services, which add value Founded in the Netherlands in 1896 SHV is present in 50 countries on all continents, employs about 47,000 people and had revenues of 17.6 billion in 2013 SHV Energy Dyas Makro Mammoet ERIKS NPM Capital Energy distribution Oil and gas investments Cash-and-carry wholesale Heavy lifting and transport Industrial services Private equity investments 5

6 Nutreco going forward Strategy remains the same Continuation of existing commitments to customers and suppliers Commitment to continue developing innovative nutritional solutions SHV believes in the long-term potential of our business, and will support us to enhance our various positions for long-term sustainable growth SHV has a track record as very long-term owner Skretting will have a truly long-term ownership structure 6

7 Total shareholders return since IPO in 1997 AEX Nutreco ( ) TSR of 771% at a price of 40/share

8 2. Nutreco and Q3 trading update

9 Our mission 9

10 Nutreco s three segments Revenue 2013: 5.2 billion EBITA* 2013: 256 million 1.8 billion 112 million 2.0 billion 131 million Animal Nutrition Fish Feed Iberia 1.4 billion 41 million Over 100 production plants in 30 countries 10 R&D units in 7 countries Multi national workforce of 10,000 employees *Including corporate costs

11 Third quarter trading update highlights Animal Nutrition: Organic volume effect was +3.2% due to higher sales in mature markets, growth geographies and young animal feed Fish Feed: Lower revenue mainly due to significantly lower salmon feed sales to Marine Harvest in Norway. The organic volume growth of fish feed for salmonid was -10.1% and other species was +5.4%. Approx. 10% of Group operating profit generated in Norway. Compound Feed & Meat Iberia: +3.3% organic volume growth. Good progress made in increasing sales to customers across various channels; YTD 75% of volumes lost to Mercadona replaced Outlook: Full year 2014 EBITAE to be at least equal to last year (2013: million) 11

12 3. Industry fundamentals

13 Oceans of opportunities Million tonnes Est. 8.3bn bn 140 BRAZIL CHINA ECUADOR JAPAN Aquaculture EGYPT HONDURAS TURKEY VIETNAM Wild capture for human consumption 2030 Source: FAO Fish to 2030 Prospects for Fisheries and Aquaculture, 2013 Population growth Increased incomes Aquaculture growth factors Health

14 Skretting a global aquafeed company 3,400 employees 2.0 million tonnes of feed Production in 18 countries Sales in more than 40 countries Feed to more than 60 species 1 global R&D centre and 4 trial units

15 Unique knowledge Skretting s passion for fish Nutrition Process technology Raw materials Our competence in research and application in daily feed production gives us a competitive advantage Goals Fish health Fish performance Feed quality Food safety Sustainability 15

16 Skretting ARC world class fish feed R&D Nationalities Specialists Collaborations 20 nationalities >40 with university degree Specialists in fish nutrition, health and feed technology Collaborations with over 40 research institutions worldwide Important innovations Optiline Premium 16

17 Skretting Aquaculture Research Centre units ARC Lab Feed Technology Plant Lerang Salmon Trout Cod Halibut ARC Norway ARC Mediterranean ARC Asia Italy and Spain Trout Sea bass Sea bream Sole Turbot China and Japan Shrimp Asian sea bass Tilapia Yellowtail Red sea bream 17

18 MicroBalance for shrimp feed Aim to apply MicroBalance concept to shrimp to allow for flexible feed formulations and lower the use of expensive fishmeal Trials have been undertaken in Chinese research station Preliminary results indicate that fish meal levels can be reduced in shrimp diets (from 25-30% down to 15%) Commercial product likely by end of year 18

19 Challenge #1: raw materials 1 2 Fish meal replacement Algae meal Grain meal Meat meal Insect meal Fish oil replacement Microalgae GM vegetable material

20 Challenge #2: fish health ISA Sea lice EMS Moving towards a holistic preventive approach Genetic selection Vaccines Epidemiology Treatments Health / functional diets Biosecurity Integrated pest management strategies

21 Challenge #3: sustainable fish farming practices Best practice implementation & knowledge transfer in fish farming Leveraging technology and knowledge developed for more advanced species to other species and geographies (e.g. farming technologies, biosecurity plans, growth models, technical support)

22 Who are the winners? Species which are growing rapidly and could exceed 1 million harvested tonnes by Atlantic salmon White shrimp Tilapia Amazon species Asian species

23 Salmon x million tonnes Harvest volumes est. 2.8 CAGR 6% Source: FAO

24 Shrimp x million tonnes Harvest volumes est. 6.5 CAGR 5% Sources: FAO and Skretting

25 Tilapia x million tonnes Harvest volumes est. 8.0 CAGR 9% Source: FAO

26 Amazon species (e.g. tambaqui/pacu, pirarucu) x million tonnes Harvest volumes est. 1.0 CAGR 18% Sources: FAO and Skretting

27 Asian species (e.g. snakehead, Asian bass) x million tonnes Harvest volumes est. 1.5 CAGR 4% Source: Skretting

28 Aquaculture Healthy and sustainable protein production: Our most efficient livestock production Flexible use of feed ingredients enables the industry to become a net fish protein producer Food with relatively low carbon footprint Promoting the use of sustainable feed ingredients

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