Lery Seafood Group ASA Diversifying vertically to maximize - PowerPoint PPT Presentation

Lerøy Seafood Group ASA Diversifying vertically to maximize sustainable shareholder values • Ole-Eirik Lerøy President & CEO • 08. September 2005

Agenda � Considerations � Key financial figures Q2 2005 � Lerøy at a glance � Downstream � Upstream � Market trends

Yearly turnover LSG M ill. NOK 4000 3500 3000 2500 2000 1500 1000 500 0 1980 1985 1990 1995 1999 2000 2001 2002 2003 2004

Pre-tax earnings LSG Mill. NOK (NGAAP) 120 100 80 60 40 20 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Quarterly operating profit LSG mill. NOK 120000 100000 2001 80000 2002 60000 2003 40000 2004 2005 20000 0 YTD

Internal considerations Q2 2005 Main figures All figures in mill NOK Q2-05 Q2-04 Change YTD-05 YTD-04 Change Turnover 849 851 -0,2 % 1 681 1 709 -1,6 % Operating profit 57 23 147,8 % 105 57 84,2 % Affiliated comp. 11 6 83,3 % 19 5 280,0 % Pre-tax profit 65 25 160,0 % 117 54 116,7 %

Internal considerations 2nd Quarter 2005 • Financially Solid • Well positioned for future organic and strategic growth • 3.041 shareholders as of 09. August 2005 • Considerable rise in share price in Q2 05 • Improved liquidity in traded shares • Consolidated business areas • Satisfactory operation in production • Difficult conditions for operations in sales and distribution • Trade barrier from EU is negative in the long run • Acquired 100% of the shares in Aurora Salmon AS • Secured smolt production • Affiliated companies • Improved

Lerøy Seafood Group Consolidated Key figures 30.06.05 • Total equity (53,4 %) 982 mill NOK • Market cap(share price 55) 2 162 mill NOK • Net interest bearing debt 121 mill NOK • Total LSG-shares January 2005: 37.884.767 • Share issue July 2005, share price 48,88 NOK 1.432.079 • New total: 39.316.876

Return on capital employed (ROCE) 30 25 20 Prosent 15 10 5 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 YTD 2005

Lerøy Seafood Group • Global distribution network • Global distribution from Head Office in Bergen • Local distribution and processing in Sweden, France, Portugal and Turkey • Local representative offices in some key markets (France, Italy, Japan, China, USA)

Lerøy Seafood Group ASA Sales & Distribution Production Affiliated Sales & Distribution Production Affiliated Lerøy Midnor AS Hallvard Lerøy AS Lerøy Midnor AS Norskott Havbruk AS* Hallvard Lerøy AS Norskott Havbruk AS* 100% 100% 100% 50% 100% 50% Lerøy Sverige AB Aurora Salmon AS Hydrotech Gruppen AS* Lerøy Sverige AB Aurora Salmon AS Hydrotech Gruppen AS* 100% 100% 39% 100% 100% 39% Nordvik SA Lerøy Smøgen Seafood AB Egersund Fisk AS ** Nordvik SA Lerøy Smøgen Seafood AB Egersund Fisk AS ** 80% 100% 27% 80% 100% 27% Portnor Lda *Salmon farming Sigerfjord Aqua AS Portnor Lda Sigerfjord Aqua AS 60% 60% 90,55% **Pelagic activities 90,55% Alfarm Alarko Alfarm Alarko 50% 50%

Downstream Company Acquired Ownership share Alfarm Alarko, Turkey 2005 50 % Portnor Lda, Portugal 2005 60 % Lerøy Sverige AB, Sweden 2003 100 % Lerøy Smøgen AB, Sweden 2003 100 % Hallvard Lerøy AS, Norway 1997 100 % Nordvik AB, France 1988 90 % Global representation through sales offices

Upstream Company Acquired Ownership Volume -share GWT 100% E2005 Aurora Salmon AS 2005 100 % 10 000 Lerøy Midnor AS 2003 100 % 20 000 Egersund Fisk AS 2001 27 % Pelagic Norskott Havbruk AS 2001 50 % 21 000 Hydrotech Gruppen 1999 39 % 12 000 Sigerfjord Aqua AS 1999 90,6 % Arctic char

Lerøy Seafood Group - Sales per market Q2 2005 Others 1,2 % Norway 9,2 % USA and Canada 8,1 % Asia Pacific 11,1 % Eastern Europe Western Europe 5,4 % 65,1 %

Lerøy Seafood Group - Sales per product Q2 2005 Shellfish Salmontrout 4,1 % Other/other species 4,6 % 6,3 % Pelagic fish 1,3 % White fish Whole salmon 10,9 % 48,1 % Processed salmon 24,7 %

Lerøy Seafood Group • Norway’s largest seafood exporter in 2004 • 10,6 % share of Norwegian Seafood tot exports value • 14,6 % of Norwegian salmon export • 11,9 % of Norwegian salmon export in 2003 • 27,6 % of Norwegian value added salmon export

Lerøy Seafood Group • Steady growth in operating profit and strong balance sheet • Satisfactory earnings despite turbulence in the sea food industry • Growth potential within recently acquired businesses • Satisfactory liquidity • Professional and highly motivated employees • Strong partnerships / Network of alliances

Lerøy Seafood Group Market strategy: • Quality • Diversity in product range • Diversity in customer base • Market-oriented solutions • Geographical spread • Continuity in deliveries • Cost efficiency

Lerøy Midnor AS Smolt: • 6,0 mill. smolt per year (salmon/trout) Farming: 28 licences (salmon/trout) • 2004: 18.000 gwt • 2005E: 20.000 gwt • 2006E: 25.000 gwt • Processing: Capacity of 85-90 tonnes per shift • Value adding: Capacity of appr. 4.000 t per year • Production of skin and bone free • portions and fillets

Aurora Salmon AS • Farming 16 licenses salmon • Estimated harvested volume in 2005 • – salmon 10.000 gwt Estimated harvested volume in 2006 • – salmon 13.000 gwt Capacity 15.000 gwt • Slaughtering station • • Sufficient with quality smolt

Norskott Havbruk (Scottish Sea Farms Ltd.) • BRC • SQS • ISO 9002 • ISO 14 001 • Label Rouge • Investor in people • VIBES of Scotland

Norskott Havbruk (Scottish Sea Farms Ltd.) • Smolt • Self sufficient with high quality smolt Opportunity to sell surplus high quality smolt • • Farming: • Production capacity: 25 000 – 30 000 gwt • 2004: 24 100 gwt • 2005E: 20 000 – 21 000 gwt • Additional processing and sales: • 10 000 gwt • 2 processing plants

Hydrotech Gruppen AS (39%) • Fish farms in Norway • 17 licenses • Estimated sales 2005: • Salmon and trout estimated : 11 gwt -12 gwt • Smolt production: appr. 5 mill • Well-boat shipping co. • Processing plant

Egersund Fisk AS (27%) • Shareholder structure • Lerøy Seafood Group ASA 27% • SalMar AS 27% • Egersund Fiskeriinvestering AS 9% • Others 37% (less than 4% each) • Pelagic activity • Fish oil, fish meal • Pelagic fish for consumption • Ownership in vessels for wild catch • Part ownership acquired in 2001

Lerøy Sverige AB

Lerøy Shellfish in brine

Market Trends

Market trends • From whole • To processed • To value added • To ready to eat • Convenience • Branded products • Private label

Lerøy brand in global foodservice

Lerøy Salmon Airlines

Cost efficiency

The near future 2005 - 2006 • Rapid changes • Exiting challenges • We are ready!

Thank you