norway royal salmon
TRANSCRIPT
Norway Royal SalmonIntraFish Seafood Investor Forum - Iceland
Stein Ove Tveiten – 4 Oktober 2018
1
Agenda
2
1. NRS in brief
2. Projects for growth
3. NRS Finnmark - Contribution to society
4. Arctic Fish and Icelandic salmon industry
Farming operations focused in attractive regions
Farming
• MAB 39 426 tonnes
• Estimate harvest volume 2018: 36 000 tonnes
• Associated companies• Norway: 10 licenses (3 companies)
• Iceland: Arctic Fish ehf
Trading
• Own and external volume
• Selling to over 50 countries
• Volume 2018E: 80 000 tonnes
MAB 34 746 tonnes
MAB 4 680 tonnes
Region North
Region South
88 % in Region North
3
Head office
Sales office
4
Projects for growth
Arctic Fish
Arctic Offshore
Smolt facility
Flip Cage
Growth projects
• NRS is in process of building a hatchery that will produce 10 million 120 - 200 grams smolt yearly
• Strategically located in short distance to our farming sites in Region North
• Strategically important for NRS
• The hatchery will contribute to increase the biological safety and quality of our smolt
• Improved utilization of licenses
• Planning to start building next year
In process with new smolt facility
6
• Arctic Offshore Farming - the offshore
technology for the future aquaculture
industry
• NRS has been granted 8 development
licenses (5 990 tonnes MAB)
• Provide significantly increased area
utilization of Norwegian sea waters when
more exposed areas can be used and
will have a small environmental footprint
• Target of releasing the fish during
autumn 2020
Development licenses – Arctic Offshore Farming
Norway Royal Salmon - growth history
4 4006 000 6 500
10 500
18 50021 000
25 20022 400
27 900 26 80031 900
36 000
55 000
2 600
2 500
2 600
3 2003 200
3 400
4 000
4 500
5 500
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
45 000
50 000
55 000
60 000
65 000
70 000
20132007 2012 20172008 2018E20102009
1 500
27 700
2011 2014 Milestone2015
30 000
2016
5 000
20 000
40 000
23 60025 000
31 100
35 300
70 000
Iceland (NRS Share)
NRS-Farming
NRS - Farming range
Associated (NRS share)
9
NRS Finnmark - Contribution to society
Business Value creation finances public welfare
0
1 500 000
3 000 000
4 500 000
6 000 000
20122010 20162011 2013 20172014 2015
+6%
Municipal economy - Free income Finnmark
0
25 000
50 000
75 000
100 000
2010 2011 2012 201720152013 2014 2016 2018
+1%
Number of citizens Finnmark
0
20
40
60
80
100
120
20142013 2017201620122010 2011 2015 2018
+21%
Number of employees NRS Finnmark
Business Value creation finances public welfare
25
Number of NRS employees
Working age population
688
Hasvik
25
Number of NRS employees
13 838
Working age population
Alta
Working age population
11
Number of NRS employees
614
Kvalsund
25
Number of NRS employees
772
Working age population
Måsøy
Måsøy
KvalsundHasvik
Alta 0
20 000
40 000
60 000
80 000
2010 20132011 20152012 2014 2016 2017
+6%
Municipal economy Alta -Free income per capita
0
20 000
40 000
60 000
80 000
100 000
20122010 2011 2013 20162014 2015 2017
+4%
Municipal economy Hasvik -Free income per capita
0
20 000
40 000
60 000
80 000
100 000
20122010 2011 2013 2014 20172015 2016
+4%
0
20 000
40 000
60 000
80 000
100 000
2010 201520132011 2012 2014 20172016
+3%
Municipal economy Kvalsund- Free income per capita
Municipal economy Måsøy -Free income per capita
*Free income: means by which municipalities can freely dispose of without any other government instructions than current laws and regulations. The free income consists of tax revenues and framework grants, accounting for 73 per cent of the municipal sector's total income.
NRS Finnmark - Contribution to society
In one year NRS Finnmark AS contributes with 282.1 million NOK to society through taxes, fees and other
repercussions
This is equivalent to;
58Teachers
60Heart transplants
75Police Officers*Source: DNB value calculator. DNB's value calculator shows
community contributions from private companies in 2016Companies not only contribute directly to taxes and fees, but also with spin off effect through their procurement of goods and services from subcontractors.
Arctic Fish and Icelandic salmon industry
-Committed by name-
• Three steps (waves)
1. 80‘s and 90‘s - Experimental salmon farming in sea
2. Early 2000‘ – Sea farming in east of Iceland
3. From 2010 - Professional salmon farming starting in the Westfjords of Iceland
• Suitable farming conditions with a big potential for
growth
• Two main areas for salmon farming: Westfjords and
Eastfjords
• Big part of the Icelandic coastline is closed for salmon
farming
• 4 companies with production of salmon
• Farming condition similar to Finnmark in Norway
• Colder during winter, but warmer during summer
Icelandic salmon industry
• Current evaluation of MRI for maximum
biomass production is around
• Westfjords: 82 ths. tonnes
• Eastfords: 55 ths. tonnes
• The size of the farming sites and the distance
to rivers are important variables in the model,
and based on the principle to protect the wild
stock.
• Harvest volume of salmon
• 2017: 11 500 tonnes
• 2018E: 14 000 tonnes
• Almost no output of trout last year and it is
expected that the main focus will be on salmon
Potential for growth for the industry
Arctic Fish
• NRS owns 50 % of Arctic Fish
• Operation in Westfjords with good farming conditions and big potential for growth
• 33 employees ex contractors and service providers
• Number of smolt release
• 2017: 0.8 million
• 2018: 1.8 million
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• Smolt capacity will be one of the major bottlenecks in terms
of production for the industry
• Focus on bigger smolt, to reduce production period in sea
• Arctic Fish is the only company that have stated and build up RAS
hatchery at Iceland
• The hatchery is located in south part of Westfjords and is to
undergo a three phase expansion process
• Two of three buildings are completed
• Potential for further expansion in our own area for the future
Focus on smolt - new recirculation hatchery
• Keep control and improve fish health
• Some challenges with BKD, and we need to control this disease, new hatchery equipped with UV-radiation system
• Delivered smolt from hatchery in 2018 without BKD - important milestone
• Grow and develop the supply and service industry
• Pending licenses
• Licence is still in process and have to put more resources into work on this important part of our operation
• Image of wild salmon catch is important for the angling industry and that we respect
• We have mutual goal which is to keep our fish in the farm!
• Important to have best equipment possible at all time and staff training
• There is a technique from the Icelandic company Vaki that could be setup in salmon rivers as to identify and take out possible farmed fish that enters the rivers
Challenges we are working on
• Building a team with farming experience
• Focus on fresh water facility to produce high quality smolt
• Develop a good and robust site structure and also investing heavily in new equipment at sea
• Regulation
• We are working for a foreseeable framework and a
well-regulated aquaculture industry at Iceland, knowing
that regulations can secure a good sanitary situation
Our focus areas
