Henning Beltestad - CEO Lerøy Seafood Group -Waiting for China, What to do in the meantime?

1,256 views

Published on

Henning Beltestad, CEO Lerøy Seafood på Havbrukskonferansen 22. november 2011 på Radisson Blu Scandinavia i Oslo.

Published in: Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,256
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
29
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Henning Beltestad - CEO Lerøy Seafood Group -Waiting for China, What to do in the meantime?

  1. 1. Waiting for China,What to do in the meantime? Havbrukskonferansen 22 Nov 2011 Henning Beltestad Lerøy Seafood Group ASA CEO 1 1
  2. 2. Agenda 1.1 Q3 Lerøy Seafood Group ASA 2.2 Supply and demand 3.3 Status China 4.4 Potential in Asia2 2
  3. 3. Internal considerations Q3 2011All figures in NOK mill Q3 - 11 Q3 - 10 Change YTD Q3 2011 YTD Q3 2010 Change 2010Turnover 2 304 2 264 2% 6 926 6 314 10 % 8 888EBITDA 276 477 -42 % 1 293 1 204 7% 1 806EBIT bef adj biom 207 424 -51 % 1 093 1 047 4% 1 586PTP bef adj biom 190 431 -56 % 1 088 1 080 1% 1 623*) PTP = Pre-Tax Profit 3 3
  4. 4. Rode Beheer B.V.•Urk, Netherlands•87 employees•Processing c.11.5’ GWT raw material, of which c.85% Atlantic salmon •Smoked/marinated •VAP/convenience •Fillets/MAP Tveitnesvik, Hardanger 4 4
  5. 5. Lerøy Seafood Group - Global organization Norway The Netherlands Sweden Finland Scotland North America Japan France China Turkey PortugalFarmingProductionSales & Distribution 5 5
  6. 6. Atlantic salmon – Supplyin tons WFE Change Change Change Change Change 2008 07-08 2009 08-09 2010 09-10 2011 10-11 2012 11-12 Norway 741 000 2,4 % 855 700 15,5 % 944 600 10,4 % 991 100 4,9 % 1 081 500 9,1 % UK 136 400 1,1 % 144 800 6,2 % 141 800 -2,1 % 154 900 9,2 % 154 200 -0,5 % Faroe Island 37 900 98,4 % 48 100 26,9 % 42 100 -12,5 % 56 700 34,7 % 63 500 12,0 % Ireland 11 400 -25,5 % 14 800 29,8 % 17 800 20,3 % 16 000 -10,1 % 16 000 0,0 % Total Europe 926 700 3,8 % 1 063 400 14,8 % 1 146 300 7,8 % 1 218 700 6,3 % 1 315 200 7,9 % Chile 403 500 13,2 % 239 100 -40,7 % 129 500 -45,8 % 216 100 66,9 % 313 100 44,9 % Canada 118 500 8,2 % 115 400 -2,6 % 118 000 2,3 % 110 300 -6,5 % 112 500 2,0 % Australia 25 700 8,0 % 32 200 25,3 % 33 000 2,5 % 36 000 9,1 % 37 000 2,8 % USA 17 000 38,2 % 16 400 -3,5 % 18 000 9,8 % 18 500 2,8 % 19 300 4,3 % All others 2 400 -38,5 % 1 700 -29,2 % 1 400 -17,6 % 2 100 50,0 % 3 200 52,4 % Total America 567 100 12,1 % 404 800 -28,6 % 299 900 -25,9 % 383 000 27,7 % 485 100 26,7 % Total World-wide 1 493 800 6,8 % 1 468 200 -1,7 % 1 446 200 -1,5 % 1 601 700 10,8 % 1 800 300 12,4 %Figures as per 27.10.11Source: Kontali 6 6
  7. 7. Market development for Atlantic Salmon from NorwayYTD Q3 2010 vs YTD Q3 2011 TONS (WFE) TNOK Region 2010 YTD Q3 2011 YTD Q3 Chng % 2010 YTD AUG 2011 YTD AUG Chng % EU 434 102 449 256 3,5 % 14 284 628 14 509 666 1,6 % Others 93 642 107 614 14,9 % 3 065 667 3 323 158 8,4 % Russia 64 722 73 132 13,0 % 1 982 676 2 134 052 7,6 % USA 41 222 21 059 -48,9 % 1 716 833 906 932 -47,2 % Japan 20 296 22 713 11,9 % 752 208 872 236 16,0 % Totalt 653 985 673 775 3,0 % 21 802 013 21 746 045 -0,3 % (Volume in tons WFE, value in thousand NOK) ”Others” is specified on the following slide Figures as per 25.10.11 Source: NSEC/Lerøy 7 7
  8. 8. Market development for Atlantic Salmon from NorwayYTD Q3 2010 vs YTD Q3 2011 TONS (WFE) TNOK Country 2010 YTD Q3 2011 YTD Q3 Chng % 2010 YTD Q3 2011 YTD Q3 Chng % HONG KONG 14 879 13 710 -7,9 % 566 632 463 814 -18,1 % UKRANIE 12 903 14 628 13,4 % 240 119 279 121 16,2 % VIETNAM 5 305 13 381 152,2 % 126 847 349 571 175,6 % ISRAEL 5 592 9 101 62,8 % 205 577 316 588 54,0 % TAIWAN 6 264 7 257 15,9 % 223 605 236 191 5,6 % SOUTH KOREA 5 259 6 876 30,8 % 196 613 249 060 26,7 % THAILAND 6 454 6 061 -6,1 % 208 398 185 534 -11,0 % CHINA 9 933 5 229 -47,4 % 346 731 154 732 -55,4 % SINGAPORE 3 520 4 157 18,1 % 134 237 146 930 9,5 % TURKEY 2 933 3 581 22,1 % 102 397 114 542 11,9 % SWITZERLAND 2 769 3 247 17,3 % 107 431 133 885 24,6 % FHILIPPINE 1 347 2 808 108,4 % 27 201 56 541 107,9 % BELARUS 2 412 2 434 0,9 % 57 841 62 871 8,7 % CANADA 1 667 2 320 39,1 % 74 106 109 333 47,5 % OTHER CONTRIES 12 405 12 824 3,4 % 447 933 464 443 3,7 % Total "Others" 93 642 107 614 14,9 % 3 065 667 3 323 158 8,4 % (Volume in tons WFE, value in thousand NOK) Figures as per 25.10.11 Source: NSEC/Lerøy 8 8
  9. 9. Integrated value chain 9 9
  10. 10. Waiting for China www.leroy.no
  11. 11. Norwegian Salmon export after Dec. 8, 2010 11 11
  12. 12. Business as usual for seafood … except salmonAll shipments of Norwegian Salmon are tested for:FlorfenicolFlumequineLincomycin ExportsSpectinomycin reduced byOxytetracycline 56% in 2011!Oxilinic AcidSealice GrowthAnisakisCrystal violet estimate inParalytic shellfish poisoning normal timesStaphylococcus aureus - 30% aboveVibrio parahaemolyticus last year.Vibrio choleraeListeria monocytogenes 12 12
  13. 13. Our customers hit the hardest • Can Norwegian exporters motivate Norwegian authorities? •FHL, MoF, MoFA •What is Norway doing to initiate dialog with China? 13 13
  14. 14. Fossen launchedin China• Launched in October in high-end supermarkets 14 14
  15. 15. Potential in AsiaHighlights:•South-Korea:49 millions•Taiwan: 23 millions•Singapore: 5 millions•Indonesia:237 millions•Southeast-Asia: 447 millionpeople (Indonesia,Philipines, Malaysia,Singapore, Taiwan,Thailand, Vietnam)•India: 1,2 billion people 15 15
  16. 16. KOREA: Local farmed halibut dominate the sahsimi segment withNorwegian Salmon, but exports are still low. Only local smoked salmon 16 16
  17. 17. Potential in Asia• Increasing middle class and economic growth• Tourism increasing• Huge differences between countries• Consentration around large cities: Bangkok, Taipei, KL.• From wetmarket to modern retail; important distribution channel for Norwegian Salmon• Salmon present in hotels and in the growing number of sushi chains and high-end supermarkets• Lack of knowledge about salmon and Norway• Competition from Chile• Sushi/sashimi is popular – advantage fresh Norwegian Salmon 17 17
  18. 18. BRIC middle class increase by 800 million , NSEC 18 18
  19. 19. Incredible India 19 19
  20. 20. India: world’s largest population in 2030 • 1,2 billion people • 2030: no.1 population • ¾ lives in rural areas • Third largest economy in Asia and Oceania, after Japan and China • Increasing middle class • One of the poorest countries in the world • Big differences – rich and poor 20 20
  21. 21. Trade barrieres Norwegian Salmon2006: Kronprinsparet besøkte India. Foto: EFF/Kjartan Mærstad • 30% tariff on salmon, excluding whole salmon which was reduced to 12% in 2006 • EFTA negotiations ongoing 21 21
  22. 22. Indias retail sector 2010 2015•Modern retail outlets holds a small Number Number share of the grocery market Company Of Of Outlets Outlets•One of the least developed retail Future Group 437 923 markets in the world Reliance Retail 604 1 169•Supermarket is the dominating type at present Walmart 5 50•Hypermarkets will increase (Dairy Farm, Aditya Birla 543 743 Metro Group) Food rite, SPAR, Walmart, Metro Group 6 18 Tesco and Carrefour Grand Total 1 595 2 903•Restrictions on foreign ownership, Kilde: Planet Retail 100% foreign ownership only allowed in cash& carry segment•Undeveloped distribution channels 22 22
  23. 23. 23 23

×