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Agenda
Norway Seafoods
Trawling in Norway Cod, Haddock and Saithe Catch 2010: 51 000 tons headed and gutted
Fresh and frozen filet products Whitefish, salmon, trout Aker Seafoods covering 30 % of raw materials in Norway Working primarily towards retail France and Scandinavia
780
786
72 59
9 7,5
34
4,5
8
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011
1,2
1,3
0,36
Agenda
EBIT / kg
Quota system
Total allowable catch (TAC) per specie set annually by the government International co-operation Researched based approach ICES recommendation The quota year starts for most species on January 1st Norwegian TAC distributed to different types of vessel groups Trawler fleet; Conventional fleet Other purposes (research, recruitment, recreation, etc.) Trlstigen - Trawler fleet 28 33 % of available quota Quotas distributed within each vessel group based on the number of existing licenses Quotas can be reallocated during the year
The preferred partner part of the Aker group
Trawler licenses
A total of 87.8 licenses for trawling of Cod in Norway
1 license gives quotas for Cod, Haddock and Saithe north of 62 latitude
Each vessel can hold up to 3 licenses Each vessel have 1 license to harvest Saithe south of 62 latitude (Special vessels have 1.4 license)
Vessels can also hold licenses for Greenland Halibut, Shrimp and other permits Bi-catch (red fish, other species) also contributes to total value creation
10
4000 3500 3000 2500 2000 1500 1000 500 0 1946 1948 1950 1952 1954 1956 1958 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
4500
1800
Catch level
11
Sum
Cod
Haddock
Saithe - N Saithe - S
12
13
Haddock
20 16
NOK / kg
Saithe
16 14 12
NOK / kg
FERSK Hyse FRYS Hyse
20 15 10 5
0
12
10
8
8 4
0
6 4
2
Average gap:
2.7 NOK / kg
4.1 NOK / kg
3.0 NOK / kg
14
22 %
14 %
Bunker Oil
4% 31 % 18 % 12 %
Figures illustrate AKS Harvesting 2010 performance
Agenda
16
Harvested volumes
Total harvested volumes 2008 2011
MT (H/G weight)
60 000
50 000 40 000
30 000
20 000 10 000
0 2008 41 011 2009 46 780 2010 51 254 YTD 2010 16 616 YTD 2011 14 647
10 000
5 000
0
Remaining Quotas Catch Q1
Total catch
Other 461
25 % increase in harvested volumes 2008-2010 Increased quotas for Cod and Haddock in 2011
The preferred partner
Challenging availability for Saithe Remaining quotas of Cod and Haddock 5 500 tons higher than Q1 2010
17
Quota utilization
2010 2009 2008
Total
Cod
Haddock
Saithe N Saithe S
0% 50 % 100 % 0% 50 % 100 %
0%
50 %
100 %
Total utilization from 64 72 % Cod quotas fully utilized Lost opportunity on Saithe
The preferred partner part of the Aker group
18
Price development
Achieved prices 2008 - 2011
NOK/KG 24,0 22,0 20,0 18,0 16,0 14,0 12,0 10,0 8,0 6,0
24,0 22,0 20,0 18,0 16,0 14,0 12,0 10,0 8,0 6,0
Increasing prices for all species following price drop linked to 2008 financial crisis Significant increase for Saithe strong salt fish markets Cod prices below 2008 level
The preferred partner
Cod continuing at a level comparable to Q4 2010 Haddock back to a level above Q1 2010 Very strong development for Saithe
19
6,0
5,0
2008 2009
2010
2011 YTD
0,0
Bunker oil Personnel costs Maintenance Other costs Depreciation
Bunker oil costs reduced from 2008 increasing trend Personnel cost increases with higher prices Maintenance and deprecation level per kg stable increasing in absolute value
The preferred partner part of the Aker group
20
5,0
3,9
4,0 3,0
3,9 3,5
2,0
1,5 1,3
1,7 0,7
0,9
2008
2009
2010
2011 YTD
Non recurring items excluded. Overhead costs in 2008-2009 not distributed to segments (not included)
2010 profitability per kilo significantly improved over 2008 and 2009 Increased prices Improved profitability continuing in Q1 2011
21
Outlook 2011
Increased profitability in the Harvesting segment is expected in 2011 Quota situation is positive for the remainder of 2011 5 500 tons additional quota of Cod and Haddock remaining compared to Q1 2010 Reallocation in May increases quota with 900 tons of Cod Increased prices for white fish Increased fuel costs Increased quotas and renewal of trawler fleet enables more efficient fisheries Havtind to start fishing in Q2 2011 Evaluating technical and financial aspects of possible new vessels
22