QUARTERLY REPORT 4th quarter 2010
Group The Group s operating revenues in Q4 2010 were MNOK 186,2 compared to MNOK 156,6 last year. EBITDA was MNOK 5,4 compared to MNOK 10,0 last year. EBIT was MNOK 2,2 compared to MNOK 6,7 last year and total result was MNOK 2,2 compared to MNOK 8,0 last year. Operating revenues per 31st December were MNOK 605,9 compared to MNOK 523,8 last year. EBITDA was MNOK 21,1 compared to MNOK 14,4 last year and EBIT was MNOK 7,8 compared to MNOK 0,4 last year. Total result was MNOK 80,4 compared to MNOK 1,5 last year. The Group s balance sheet at December 31st was MNOK 522,5 compared to MNOK 658,7 last year. Book equity was MNOK 145,7, corresponding to an equity ratio of 27,9 %. Excluding short-term bank deposits equity ratio was 33,0 %. Net interest bearing debt was MNOK 122,2 compared to MNOK 338,6 last year. Excluding short-term bank deposits, net interest bearing debt was MNOK 197,7. 200 180 160 140 120 122 119 Driftsinntekter (mnok) 126 157 143 130 147 186 12,0 10,0 8,0 EBITDA (mnok) 10,0 100 80 60 6,0 4,0 3,3 4,8 5,2 5,7 5,4 40 2,0 1,9 20 0 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 0,0-2,0 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10-0,9 Domstein Fish Domstein Fish is a supplier of fresh and frozen white fish products with high quality and environmental profile, based on line-caught fish and farmed cod. The main market is Europe. Net operating revenues 116,5 93,3 390,2 316,0 EBITDA 2,1 5,1 12,9 6,5 EBIT 1,2 4,0 8,9 1,5 Operating margin 1,0 % 4,3 % 2,3 % 0,5 % Sales revenues increased by 25 % in the quarter and by 23 % for the year. The demand for whitefish in the European market has been good. The focus on eco-labelled, line-caught fish has opened several new markets and there has been an upturn in the sales of farmed cod. 24,00 Priser torskeråstoff 2010-2011 22,00 kr/kg 20,00 18,00 16,00 14,00 jan 10 apr jul okt jan.11
The margins in the cod fillet production were squeezed at the end of the year, due to high raw material prices. Raw material prices are normalized in the new year, but are expected to be on average about 10% up from last year. Margins are expected to be stable. There will be an increase in the production of fillets in 2011 of approx. 20% and increased sales of other whitefish products are also expected. Increased utilization of capacity is expected to contribute to profit growth in Q1. Domstein Sverige Domstein Sverige is a producer and marketer of seafood in Sweden. The main products are breaded fish, fish gratin, ready meals and roe products. The factory in Vardø, which produces Arctic Delight roe products, is included in Domstein Sverige from 2009. Net operating revenues 82,6 75,7 273,4 258,3 EBITDA 5,0 6,4 15,6 17,4 EBIT 3,2 4,7 8,5 10,2 Operating margin 3,9 % 6,2 % 3,1 % 4,0 % Due to increased raw material prices, margins have been squeezed in Q4. There has been an upturn in sales of fillet products but a slight decline for gratins. Because of strong focus in media on possible health risks associated with food additives in processed foods, we will intensify the process of replacing food additives with natural raw materials. Stable development is expected in Q1. Ervik Havfiske (50 %) Ervik Havfiske AS is Norway s largest long-line fishing company with activities both in Norway and abroad. The share of the profit in Ervik Havfiske is included in the financial profit as income from investments in associated companies and amounted in the fourth quarter to MNOK -6,0 and MNOK -6,8 accumulated. Net operating revenues 101,3 71,4 301,3 219,1 EBITDA -8,1-5,4 17,4 6,3 EBIT -11,4-8,3 5,1-4,2 Operating margin -11,2 % -11,7 % 1,7 % -1,9 % Fourth quarter is high season for the longline fishery and both catches and prices increased. The fourth quarter is charged with MNOK 20,1 one-off costs due to write-down on foreign accounts receivable. In 2009 the corresponding none-recurring items were MNOK 15,9. Increased quotas and higher fish prices are expected to give positive results in Q1. Domstein Eiendom (49 %) Domstein Eiendom owns and rents out offices and factory buildings to Norway Pelagic and companies in the Domstein group. Net lease income amounts to MNOK 25,9 in 2010.
Domstein Eiendom is no longer classified as assets held for sale, and Domstein s share of net income is included in the financial profit as income from investments in associated companies and amounted in the fourth quarter and accumulated to MNOK 2,7. The business has contributed with MNOK 5 in cash flow in 2010. Net operating revenues 6,5 6,3 25,9 25,4 EBITDA 6,3 6,1 25,4 25,0 EBIT 3,7 3,3 14,5 13,7 Operating margin 57,8 % 52,9 % 56,0 % 53,7 % Naustvik Enghav (35 %) The company operates sales and distribution of fish and other food products to the Norwegian retail and catering market. Domstein s share of net income in Naustvik Enghav is included in the financial result as income from investments in associated companies, and amounted in the fourth quarter to MNOK -5,2 and MNOK -5,3 accumulated, in addition to a dilution effect related to the placement and debt conversion of MNOK -6,9. Net operating revenues 214,8 213,7 814,6 841,4 EBITDA 2,2 8,5 17,3 12,7 EBIT -6,1 1,9-0,6-1,3 Operating margin -2,8 % 0,9 % -0,1 % -0,2 % The sales in Q4 were stable compared to previous years. Operating revenues EBIT in Q4 and the year have been charged with an extraordinary goodwill depreciation of MNOK 5,3. For the year as a whole, the profitability has improved as a result of higher gross margins and reduced operating costs. Norway Pelagic The shares in Norway Pelagic were sold in July 2010. The share of net income in Norway Pelagic as per the second quarter 2010 is included in the financial results as income from investments in associated companies, and amounted to MNOK -0,7. Shareholders information Domstein ASA is listed on the Oslo Stock Exchange with ticker DOM. The market value of the company as of 31 December 2010 was MNOK 130, based on a share price of NOK 1,69. The number of outstanding shares is 76 907 402. Måløy, 28 February 2011 The board of directors of Domstein ASA
Resultatregnskap konsern 2010 Q4 2010 Q4 2009 YTD 2010 YTD 2009 Consolidated operating results Group Nok.mill. Proforma Proforma Netto driftsinntekt Operating revenues 186,2 156,6 605,9 523,8 Varekostnad Raw materials and consumables used -136,9-109,4-426,1-361,5 Øvrige betalbare driftskostnader Other operating expenses -43,9-37,2-158,7-147,9 Sum driftskostnader Total operating expenses -180,8-146,6-584,8-509,4 EBITDA 5,4 10,0 21,1 14,4 Ordinære avskrivinger Ordinary depreciation -3,2-3,3-13,3-14,0 EBIT 2,2 6,7 7,8 0,4 Inntekt på investering i tilknyttet selskap -8,7 12,4-17,6 36,1 Income from investments in associated companies Netto finansposter Net financial items -4,4-8,4 72,4-27,6 Ordinært resultat før skatt Result before tax -10,9 10,8 62,6 8,8 Skattekostnad Taxes 13,2-1,7 13,5-1,4 Resultat etter skatt Result after tax 2,3 9,1 76,1 7,4 Resultat fra videreført virksomhet Result from continuing operations 2,3 9,1 76,1 7,4 Resultat fra virksomhet holdt for salg Result from operations held for sale 0,0 0,0 0,0 0,0 Resultat result 2,3 9,1 76,1 7,4 Andre inntekter og kostnader (other income and expenses ) Omregningsdifferanser (conversion differences) -0,1-1,1 4,3-5,9 Sum totalresultat for perioden (total result for the period) 2,2 8,0 80,4 1,5 Resultat margin Profit margin 1,2 % 5,8 % 12,6 % 1,4 % Driftsmargin Operating margin 1,2 % 4,3 % 1,3 % 0,1 % Resultat pr. aksje (nok) Profit per share 1,05 0,02 Utv.resultat pr. aksje (nok) Diluted profit per share 0,85 0,07 ROCE 20,92 % 6,72 % Egenkapitalandel (inkl min int) Book equity ratio 27,89 % 32,69 % Utestående aksjer Outstanding shares 76 907 402 76 907 402 - Denne rapporten er utarbeidet I henhold til International Financial Reporting Standards IFRS herunder standard for delårsrapportering ( IAS 34 ). Regnskapet er ikke revidert. - This report is produced according to International Financial Reporting Standards IFRS Including the interim report standard ( IAS 34 ). The financial statements are unaudited. - ved utarbeidelse av delårsrapporten er det benyttet de samme prinsipper som i årsregnskapet - When preparing interim reports we utilise the same principles as for the annual report
Balanse konsern 31.12.10 31.12.09 Consolidated balance sheet Group Nok.mill. Immaterielle eiendeler Intangible fixed assets 20,0 12,6 Varige driftsmidler Tangible fixed assets 72,0 70,5 Finansielle anleggsmidler Financial fixed assets 101,2 339,2 Anleggsmidler Total fixed assets 193,3 422,3 Varer Inventories 142,5 114,6 Fordringer Receivables 100,3 89,7 Omløpsmidler holdt for salg Current assets held for sale 0,0 24,2 Betalingsmidler Cash and equivalents 86,4 8,0 Omløpsmidler Current assets 329,2 236,4 Sum eiendeler Total assets 522,5 658,7 Innskutt egenkapital Equity contributions 59,9 59,9 Opptjent egenkapital Earned equity 85,8 155,5 Egenkapital og minoritetsinteresser Total equity 145,7 215,3 Avsetning for forpliktelser Provisions 10,1 23,8 Rentebærende langsiktig gjeld Interest bearing long term debt 26,0 189,6 Øvrig langsiktig gjeld Other long term liabilities 1,0 1,4 Sum annen langsiktig gjeld Total other long term liabilities 27,0 191,1 Rentebærende kortsiktig gjeld Interest bearing current liabilities 182,7 156,9 Ikke-rentebærende kortsiktig gjeld Non interest bearing current liabilities 157,0 71,6 Kortsiktig gjeld holdt for salg Current liabilities held for sale 0,0 0,0 Kortsiktig gjeld Current liabilities 339,7 228,5 Sum egenkapital og gjeld Total equity and liabilities 522,5 658,7 Netto rentebærende gjeld Net interest bearing debt 122,2 338,6 Egenkapitalandel Equity ratio 27,9 % 32,7 % Kontantstrømoppstilling konsern Consolidated cash flow statement Group 31.12.10 31.12.09 Kontantstrøm operasjonelle aktiviteter Net cash flow from operating acitvities -21,0-6,3 Kontantstrøm investeringsaktiviteter Net cash flow investment activities 321,7-4,4 Kontantstrøm finansieringsaktiviteter Net cash flow from financial activities -222,6-6,9 Effekt av valutakursendringer Effect of change in exchange rates -0,4 0,2 Endring av kontanter og innskudd Net change in cash and bank deposits 78,5-17,8 Kontanter og innskudd ved periodens begynnelse Cash and bank deposits at start of period 8,0 25,8 Kontanter og innskudd ved periodens slutt Cash and bank deposits at end of period 86,4 8,0 Avstemming av egenkapital Change in equity 31.12.10 31.12.09 Egenkapital ved begynnelsen av perioden Equity at the start of the period 215 344 214 881 Resultat i perioden Result for the period 76 055 7 421 Omregningsdifferanser Conversion differences 4 327-5 920 Utbytte dividend -149 200 Andre egenkapital justeringer Other changes in equity -817-1 037 Egenkapital ved slutten av perioden Equity at the end of the period 145 709 215 345
Note 1 Regnskapsprinsipper Accounting principles Det konsoliderte kvartalsregnskapet i Domstein ASA konsern er utarbeidet i samsvar med IAS 34 Delårsrapportering. Kvartalsregnskapet omfatter ikke all informasjon som kreves i et fullstendig årsregnskap. Regnskapsprinsippene er beskrevet i årsrapporten for 2009. The group accounts for thefourth quarter have been prepared in accordance with international accounting standards IFRS, IAS 34 Interim Financial Reporting. The quarterly accounts do not include all information required in the annual accounts. The accounting principles are described in the annual report for 2009. Note 2 Virksomhetssegment Segment reporting Domstein Sverige Domstein Fish Domstein ASA / Service + Konsern Group elim. Beløp i tusen kroner figures in NOK Q4-10 Q4-09 Q4-10 Q4-09 Q4-10 Q4-09 Q4-10 Q4-09 Netto salg segment Net revenues per segment 82 600 75 713 116 526 93 338-12 913-12 483 186 213 156 568 Segment resultat EBITDA per segment 4 957 6 441 2 120 5 079-1 656-1 529 5 421 9 991 Segment resultat EBIT per segment 3 208 4 723 1 165 4 017-2 188-2 000 2 185 6 740 Domstein Sverige Domstein Fish Domstein ASA / Service + Videreført elim. virksomhet Beløp i tusen kroner figures in Nok YTD 2009 YTD 2009 YTD 2009 YTD 2009 Netto salg segment Net revenues per segment 273 426 258 261 390 152 316 034-57 686-50 465 605 892 523 830 Segment resultat EBITDA per segment 15 550 17 357 12 921 6 533-7 375-9 487 21 096 14 403 Segment resultat EBIT per segment 8 511 10 241 8 896 1 482-9 602-11 347 7 805 376 Note 3 Investeringer i tilknyttet selskap Investment in associated companies Beløp i tusen kroner figures in Nok Norway Pelagic ASA Ervik Vadsø Havfiske Fryselager AS AS *Domstein Eiendom Enghav Naustvik Sum *Domstein Eiendom Norbait DA Bokført verdi 01.01 237 650 28 575 1 093 58 660 325 978 24 177-3 738 Kapitalutvidelse/nedsettelse capital increase/decrease 7 608 7 608 3 760 Omklassifisert reclassify to continue business 24 177-24 177 Emisjonseffekter (dilution of ownership ) -6 901-6 901 Utdelt utbytteaksjer Stock dividends 0 Utdelt utbytte dividends -25 271-4 997-30 268 Salg aksjer stock realize -303 248-303 248 Gevinst salg aksjer profit stock realize 91 590 91 590 Direkte egenkapital justeringer adjustment of equity capital 0 0 Resultatandel Share of results -721-6 797-156 2 665-5 325-10 334-347 Bokført verdi per 31.12. 0 21 778 937 21 845 54 042 98 602 0-325 Domstein Eiendom er omklassifisert fra holdt for salg til videreført virksomhet pr. 31.12.2010. Domstein Eiendom is reclassifyed as held for sale to continue business 31.12.2010 Note 4 Aksjonæroversikt Shareholders Aksjer Shares Eierandel Ownership R. Domstein & Co. AS 37 914 040 49,27 % MP Pensjon 3 850 000 5,00 % Caiano AS 1 875 544 2,44 % Skagen Vekst AS 1 860 000 2,42 % Spectiatio AS 1 759 000 2,29 % Caiano Fisk AS 1 100 000 1,43 % Sum > 1% eierandel / share 48 358 584 62,85 % Øvrige aksjonærer other shareholders 28 588 816 37,15 % Sum 76 947 400 100,00 % Note 5 Emisjon/ private placement Domstein deltok med 7,6 mill i emisjon Enghav AS i Mars 2010. Domstein participated with 7,6 mill at the private placement Enghav AS in March 2010.