3rd quarter 2008
Group The Group s operating revenues in Q3 2008 from continued operations were MNOK 119,6 compared with MNOK 138,7 proforma last year. EBITDA was MNOK 1,2 compared with MNOK 6,9 proforma last year. EBIT was MNOK -2,4 compared with MNOK 3,1 proforma last year, and result after tax was MNOK -17,5 compared with MNOK -4,5 proforma last year. The proforma figures for 2007 are excluding discontinued operations, and are directly comparable to the 2008 figures. 3rd quarter is low season for supply of raw material for both whitefish and pelagic fish and thus activities have been low. The result is also influenced by a negative price development for whitefish and a strong Norwegian krone. Operating revenues per 30th September from continued operations were MNOK 349,9 compared with MNOK 408,7 proforma last year. EBITDA was MNOK -1,9 compared with MNOK 11,0 proforma last year and EBIT was MNOK -13,2 compared with MNOK -0,9 proforma last year. Result after tax was MNOK -36,4 compared with MNOK -35,3 proforma last year. The Group s balance sheet at 30th September was MNOK 691,5 compared with MNOK 1 143,2 last year. Book equity is MNOK 228,5, corresponding to an equity ratio of 33,0 % compared with 27,8 % last year. Net interest bearing debt is MNOK 342,3 compared with MNOK 628,5 last year. Per 30th September there has been a positive cash flow from operations of MNOK 58,7 compared with MNOK 67,7 in the same period last year. Domstein Fish Domstein Fish is a business area for whitefish consisting of fillet production, trading and supplies of bait with departments in Måløy, Raudeberg and Trondheim. The activities include production and sales of fresh, chilled and frozen products of whitefish with high quality and environmental profile, based on long lined fish and breeded cod. The main market is Europe. Net operating revenues 75,4 95,4 218,3 261,9 EBITDA 1,6 3,9-3,3 7,4 EBIT 0,1 2,0-8,3 0,8 Operating margin 0,1 % 2,1 % -3,8 % 0,3 % The negative price development for products of whitefish has continued in 3rd quarter. This is due to both low demand in important markets, and a strong Norwegian krone. The prices of several cod products has fallen with 10-30% since the turn of the year. This autumn there has also been a significant fall in raw material prices, resulting in a positive margin development for fillet production. Ervik Havfiske has together with Domstein Fish achieved environmental certification for their fisheries of cod and haddock according to the Swedish KRAV-standard. They have also applied for environmental certification according to the international MSC standard. There is a strong demand in the market for eco-labelled products. This autumn Domstein Fish and Domstein Enghav Sverige have launched a new line of eco-labelled products, and next year the products will be launched in other markets, amongst them Norway. Stable profit development is expected in 4th quarter. The currency development has been positive, but due to forward contracts, profitability is not expected to be influenced before the end of the year. Domstein Enghav Sverige Domstein Enghav Sverige is a producer and marketer of seafood in Sweden. The main products are breaded fish, fish gratin, ready meals and roe products.
Net operating revenues 51,2 53,3 164,0 169,0 EBITDA 1,9 4,8 8,1 9,8 EBIT 0,6 3,5 4,0 5,8 Operating margin 1,1 % 6,5 % 2,4 % 3,4 % The sales development in Sweden has been stable, but increased prices of raw material, especially for lumpfish roe used in production of caviar, affect the result negatively. Positive sales and result development in 4th quarter is expected. Domstein Eiendom (49 %) Domstein Eiendom controls the properties in Norway which are hired out to Norway Pelagic and Domstein. Yearly lease is MNOK 24,7. The share of the profit in Domstein Eiendom after tax is included in the net financials from 1st September 2008, and amounted in 3rd quarter to NOK 0. Net operating revenues 6,2 6,0 18,5 6,0 EBITDA 5,7 5,5 17,0 5,5 EBIT 2,9 2,7 8,5 2,7 Operating margin 46,8 % 45,0 % 45,9 % 45,0 % Result after tax 0,0-0,4 0,1-0,4 Ervik Havfiske (50 %) Ervik Havfiske AS is a fishing vessel company with 14 sea-going longliners, and controls 13 cod and 14 haddock quotas in Norway. In addition, several of the company s vessels are fishing on foreign quotas. The share of the profit in Ervik Havfiske after tax is included in the net financials as income from investments in associated companies, and amounted in 3rd quarter to MNOK -0,3 and MNOK 2,5 accumulated. Net operating revenues 56,9 49,5 185,3 161,6 EBITDA 12,5 8,3 48,0 38,8 EBIT 6,3 3,4 32,9 26,0 Operating margin 11,1 % 6,9 % 17,8 % 16,1 % Result after tax -1,2-1,7 9,3 9,7 Operations in 3rd quarter have been good. The catches are higher than last year, but lower fish prices and higher fuel and interest costs affect the result negatively. 38 % of the cod quota and 54% of the haddock quota are remaining for 4th quarter. High activity is therefore expected, but lower fish prices may have a negative influence on the result. It has been decided to increase the Norwegian cod quotas by 20% in 2009 and thus Ervik Havfiske anticipate positive cost-benefit development, even if there should be a negative development of fish prices.
Naustvik Enghav (42 %) As of 1 st July 2008 the Norwegian activities of Domstein Enghav were merged with Naustvik AS. The company will sell and distribute fish and other food products to the Norwegian retail and catering market. Naustvik Enghav will become market leader for fish and seafood in Norway. The share of the profit in Naustvik Enghav after tax is included in the net financials as income from investments in associated companies and amounted in 3rd quarter to MNOK -4,8. Net operating revenues 235,9 255,2 EBITDA -9,7-0,9 EBIT -13,7-4,3 Operating margin -5,8 % -1,7 % Result after tax -11,3-4,1 Substantial structural costs have affected the first working period. Operations in both companies have shown negative results, among other factors caused by high logistics and transport costs. The merging of the companies will give considerable synergy effects. Operations in 4th quarter will also be negatively influenced by integration costs. Norway Pelagic (35 %) Norway Pelagic is a production and sales company for pelagic fish, mainly herring and mackerel. The share of the profit in Norway Pelagic after tax is included in the net financials as income from investment in associated companies, and amounted in 3rd quarter to MNOK -0,6 and accumulated MNOK 7,3. Net operating revenues 314,7 121,6 1128,0 121,6 EBITDA 6,4 5,6 43,9 5,6 EBIT 2,7 1,7 33,9 1,7 Operating margin 0,9 % 1,4 % 3,0 % 1,4 % Result after tax -1,7 0,4 22,2 0,4 3rd quarter has been low season for Norway Pelagic. Operations have escalated during September when herring and mackerel fisheries start. Sales development has been good, and both raw material and market prices have been rising. The margin development for Norway Pelagic has been good. High activities and good profit developments are expected in 4th quarter. Discontinued operations The Norwegian activities of Domstein Enghav are merged with Naustvik and are treated as discontinued operations in the accounts. The share of the profit after tax from 1st July is included in the net financials as income from investments in associated companies. Domstein Eiendom was deconsolidated as of 31st August 2008 and is treated as discontinued operations in the accounts. The share of the profit after tax from 1 st September 2008 is included in the net financials as income from investments in associated companies. Shareholder information Domstein ASA is listed on Oslo Stock Exchange with ticker DOM. The market value of the company per 30th September 2008 was MNOK 269, based on a share price of NOK 3,49. Number of outstanding shares is 76 907 402. Måløy, 30 October 2008 The board of directors of Domstein ASA
Resultatregnskap konsern 2008 Q3 2008 Q3 2007 Q3 2007 YTD 2008 YTD 2007 YTD 2007 Consolidated operating results Group Nok.mill. Proforma Proforma Netto driftsinntekt Operating revenues 119,6 138,7 139,6 349,9 408,7 409,5 Varekostnad Raw materials and consumables used -85,8-99,5-99,5-247,2-291,2-291,2 Øvrige betalbare driftskostnader Other operating expenses -32,7-32,3-30,4-104,6-106,4-107,2 Sum driftskostnader Total operating expenses -118,4-131,8-129,9-351,9-397,6-398,4 EBITDA 1,2 7,0 9,7-1,9 11,1 11,1 Ordinære avskrivinger Ordinary depreciation -3,6-3,9-4,1-11,3-11,9-11,9 EBIT -2,4 3,1 5,6-13,2-0,9-0,9 Inntekt på investering i tilknyttet selskap -5,7-1,8-0,2 4,9-15,2 2,2 Income from investments in associated companies Netto finanskostnader Net financial expenses -9,4-5,6-5,6-28,1-19,0-19,0 Ordinært resultat før skatt Result before tax -17,5-4,3-0,2-36,4-35,1-17,6 Skattekostnad Taxes 0,0-0,2 0,0 0,0-0,2 0,0 Resultat etter skatt Result after tax -17,5-4,5-0,2-36,4-35,3-17,6 Resultat frå videreført virksomhet Result from continuing operations -17,5-4,5-0,2-36,4-35,3-17,6 Resultat frå avviklet virksomhet Result from discontinued operations -4,9-0,4-8,4-61,8-5,0 65,5 Resultat result -22,4-4,9-8,6-98,2-40,3 47,8 Resultat margin videreført virksomhet Profit margin continued operations -14,6 % -3,3 % -0,2 % -10,4 % -8,6 % -4,3 % Driftsmargin videreført virksomhet Operating margin continued operations -2,0 % 2,2 % 4,0 % -3,8 % -0,2 % -0,2 % Resultat pr. aksje (nok) Profit per share -1,33-0,58 0,68 Utv.resultat pr. aksje (nok) Diluted profit per share -1,15-0,50 0,66 ROCE videreført virksomhet Continued operations -2,9 % -3,1 % 0,3 % Egenkapitalandel (inkl min int) Book equity ratio 33,05 % 27,85 % 27,85 % Utestående aksjer Outstanding shares 76 907 402 69 912 402 69 912 402 Balanse konsern 30.09.08 30.09.07 31.12.07 Consolidated balance sheet Group Nok.mill. Immaterielle eiendeler Intangible fixed assets 14,0 143,4 131,1 Varige driftsmidler Tangible fixed assets 73,1 317,0 306,1 Finansielle anleggsmidler Financial fixed assets 325,1 232,6 257,4 Anleggsmidler Total fixed assets 412,1 693,1 694,5 Varer Inventories 143,7 218,3 216,0 Fordringer Receivables 110,1 222,5 185,9 Omløpsmidler holdt for salg Current assets held for sale 0,0 0,0 27,4 Betalingsmidler Cash and equivalents 25,5 9,3 9,5 Omløpsmidler Current assets 279,4 450,1 438,8 Sum eiendeler Total assets 691,5 1143,2 1133,3 Innskutt egenkapital Equity contributions 59,9 35,0 35,0 Opptjent egenkapital Earned equity 168,7 280,1 280,5 Minoritetsinteresser Minority interests 0,0 3,3 3,5 Egenkapital og minoritetsinteresser Total equity 228,5 318,4 318,9 Avsetning for forpliktelser Provisions 18,3 5,0 5,3 Rentebærende langsiktig gjeld Interest bearing long term debt 223,1 367,2 304,7 Øvrig langsiktig gjeld Other long term liabilities 2,2 2,7 2,6 Sum annen langsiktig gjeld Total other long term liabilities 225,3 370,0 307,3 Rentebærende kortsiktig gjeld Interest bearing current liabilities 144,8 270,5 288,5 Ikke-rentebærende kortsiktig gjeld Non interest bearing current liabilities 74,6 179,3 188,8 Kortsiktig gjeld holdt for salg Current liabilities held for sale 0,0 0,0 24,5 Kortsiktig gjeld Current liabilities 219,4 449,9 501,8 Sum egenkapital og gjeld Total equity and liabilities 691,5 1143,2 1133,3 Netto rentebærende gjeld Net interest bearing debt 342,3 628,5 583,6 Egenkapitalandel Equity ratio 33,0 % 27,8 % 28,1 %
Kontantstrømoppstilling konsern Consolidated cash flow statement Group 30.09.08 30.09.07 YTD 2007 Kontantstrøm operasjonelle aktiviteter Net cash flow from operating acitvities 58,7 67,7 5,1 Kontantstrøm investeringsaktiviteter Net cash flow investment activities 53,9-58,8-9,3 Kontantstrøm finansieringsaktiviteter Net cash flow from financial activities -96,6-23,5-10,3 Effekt av valutakursendringer Effect of change in exchange rates 0,0-0,3-0,3 Endring av kontanter og innskudd Net change in cash and bank deposits 16,0-15,0-14,7 Kontanter og innskudd ved periodens begynnelse Cash and bank deposits at start of period 9,5 24,2 24,2 Kontanter og innskudd ved periodens slutt Cash and bank deposits at end of period 25,5 9,3 9,5 Avstemming av egenkapital Change in equity 30.09.08 30.09.07 31.12.07 Egenkapital ved begynnelsen av perioden Equity at the start of the period 318 934 273 014 273 014 Resultat i perioden Result for the period -98 222 47 842 51 164 Omregningsdifferanser Conversion differences 1 077-2 599-1 984 Emisjon Capital increase 26 231 0 Utbytte dividend -19 688-273 -273 Andre egenkapital justeringer Other changes in equity 204 366-2 987 Egenkapital ved slutten av perioden Equity at the end of the period 228 536 318 350 318 934 Note 1 Regnskapsprinsipper Accounting principles Det konsoliderte halvårsregnskapet i Domstein ASA konsern er utarbeidet i samsvar med IAS 34 Delårsrapportering. Halvårsregnskapet omfatter ikke all informasjon som kreves i et fullstendig årsregnskap og bør leses i sammenheng med konsernregnskapet for 2007. Regnskapsprinsippene for 2007 er beskrevet i årsrapporten for 2007. Konsernregnskapet for 2007 ble utarbeidet i samsvar med EU-godkjente IFRS'er og tilhørende fortolkninger, samt de ytterligere norske opplysningskrav som følger av regnskapsloven, børsforskrift og børsregler, som skulle anvendes per 31.12.2007. The group accounts for the first half year have been prepared in accordance with international accounting standards IFRS, IAS 34 Interim Financial Reporting. The half year accounts do not include all information required in the annual accounts and should be seen in accordance with the annual accounts for 2007. The accounting principles are described in the annual report for 2007, which is prepared in accordance with the EU approved IFRS and in addition the Norwegian regulations according to the Norwegian Accounting Act and stock exchange usages applicable on 31.12.2007. Note 2 Virksomhetssegment Segment reporting Domstein Enghav Domstein Fish Domstein ASA / Service Videreført virksomhet Sverige + elim. Continued operations Beløp i tusen kroner figures in NOK Q3-08 Q3-07 Q3-08 Q3-07 Q3-08 Q3-07 Q3-08 Q3-07 Netto salg segment Net revenues per segment 51 181 53 304 75 368 95 376-6 939-9 936 119 610 138 744 Segment resultat EBITDA per segment 1 893 4 771 1 620 3 942-2 347-1 748 1 166 6 965 Segment resultat EBIT per segment 565 3 467 91 2 010-3 061-2 369-2 405 3 108 Domstein Enghav Domstein Fish Domstein ASA / Service Videreført virksomhet Sverige + elim. Continued operations Beløp i tusen kroner figures in Nok YTD 2007 YTD 2007 YTD 2007 YTD 2007 Netto salg segment Net revenues per segment 164 006 168 983 218 298 261 900-32 380-22 217 349 924 408 666 Segment resultat EBITDA per segment 8 128 9 836-3 285 7 421-6 787-6 207-1 944 11 050 Segment resultat EBIT per segment 3 981 5 830-8 314 793-8 881-7 480-13 214-857 Note 3 Investeringer i tilknyttet selskap Investment in associated companies Beløp i tusen kroner figures in Nok Norway Pelagic AS Ervik Havfiske AS Vadsø Fryselager AS Enghav Naustvik Domstein Eiendom Bokført verdi 01.01 214 124 20 322 1 036 235 482-3 509 Andel av balanseført egenkapital ved anskaffelse Share of booked equity 58 640 30 118 88 758 Sum Norbait DA Utdelt utbytteaksjer Stock dividends -18 678-18 678 Utdelt utbytte dividends -8 272-8 272 Resultatandel Share of results 7 327 2 481-43 -4 759 29 5 035-130 Bokført verdi per 30.06. 194 501 22 803 993 53 881 30 147 302 325-3 639 Forpliktelse knyttet til Norbait DA er presentert som avsetning for forpliktelse i balansen. The Norbait DA liability is presented as a provision in the balance sheet
Note 4 Aksjonæroversikt Shareholders Aksjer Shares Eierandel Ownership R. Domstein & Co. AS 37 914 040 49,27 % MP Pensjon 5 850 000 7,60 % Skagen Vekst AS 2 000 000 2,60 % Spectiatio AS 1 759 000 2,29 % Caiano AS 1 601 870 2,08 % NRP Seafood AS 1 350 000 1,75 % Caiano Fisk AS 1 100 000 1,43 % Habi Invest AS 1 000 000 1,30 % Vestkapp Invest AS 818 000 1,06 % Sum > 1% eierandel / share 53 392 910 69,39 % Øvrige aksjonærer other shareholders 23 554 490 30,61 % Sum 76 947 400 100,00 % Note 5 Fusjon/Fisjon Merger/demerger Fisjon Domstein Eiendom AS 51% demerger Domstein Eiendom AS 51% Gevinstberegning Profit calculation Tusen NOK Virkelig verdi på eierandel actual value asset 100 000 Egenkapital som overførtes Equity transfered 61 465 Gevinst 100% Profit 100% 38 535 Urelisert gevinst Unrealised profit 18 882 Gevinst realisert andel Actual value 19 653 Omkostninger/garantier ved. transaksjonen Transaction/security costs of the transaction 9 007 Gevinst ved transaksjonen Accounting profit 10 646 Finansiell eiendel i balansen Financial fixed asset 30 118 - 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 Domstein ASA N-6706 Måløy, Norway Tel.: +47 57 85 90 00 Fax: +47 57 85 90 90 www.domstein.no