Grieg Seafood ASA · OSL:GSF
Grieg Seafood ASA — Q3 2015 Earnings Presentation
32 slides from Grieg Seafood ASA's earnings presentation, Nov 6, 2015
Slide 1: Grieg Seafood ASA Q3 2015
Grieg Seafood ASA Q3 2015 Andreas Kvame | CEO Atle Harald Sandtorv | CFO 6 November 2015 griegseafood.com 1
Slide 2: Agenda
Agenda • Highlights • Business Units (Regions) • Financials • Outlook griegseafood.com 2
Slide 3: Highlights Q3 2015
HIGHLIGHTS Q3 2015 griegseafood.com 3
Slide 4: Highlights Q3 2015
Highlights Q3 2015 • Operational EBIT MNOK 28 in Q3 2015. • Last coho generation in BC harvested - MNOK 19 loss. • Shetland VAP ended - write-down of MNOK 50. • EBIT after restructuring MNOK -44. • Positive EBIT/kg in Norway. • Normalized production in Norway and BC. • Algae and sea lice impacting S
Slide 5: Financial highlights Q3 2015
Financial highlights Q3 2015 Q3 2015 Q3 2014 YTD 2015 YTD 2014 Total operating income (TNOK) 1 244 577 956 618 3 449 057 3 113 730 EBITDA (TNOK) 47 391 -18 852 174 404 312 979 EBIT before fair value adj. (TNOK) -44 346 -52 679 4 624 213 642 EBIT / kg (NOK) -2,28 -3,15 0,09 4,38 Harvest volume (tons
Slide 6: Business Units (Regions)
BUSINESS UNITS (REGIONS) griegseafood.com 6
Slide 7: Business units performance – Q3 2015
Business units performance – Q3 2015 EBIT before biomass adjustment/KG gwt 4,3 -11,3 6,1 -0,2 -6,2 -11,6 -2,5 0,9 Rogaland Finnmark BC Shetland Q3 15 Q3 14 Q3 15 Q3 14 Q3 15 Q3 14 Q3 15 Q3 14 Harvest (gwt) 1 806 2 068 7 802 6 933 4 470 2 899 5 401 4 850 Sales MNOK 79 85 320 212 177 109 243 192 grieg
Slide 8: Business units performance – YTD 2015
Business units performance – YTD 2015 EBIT before biomass adjustment/KG gwt 4,0 5,4 4,7 8,1 -0,8 -8,5 -3,8 4,2 Rogaland Finnmark BC Shetland YTD15 YTD14 YTD15 YTD14 YTD15 YTD14 YTD15 YTD14 Harvest (gwt) 11 523 9 603 14 134 20 666 12 066 5 637 12 396 12 889 Sales MNOK 482 426 559 766 461 234 581 550
Slide 9: GSF Rogaland
GSF Rogaland • Harvest volume in Rogaland was Q3 2015 Q3 2014 YTD 2015 YTD 2014 low in Q3. This has resulted in Harvest (gwt) 1 806 2 068 11 523 9 603 some increase in costs per kilo, in Sales revenues 79 085 84 765 482 170 425 582 particular harvesting costs. EBIT 7 748 -23 345 45 661 52 237 EBIT/k
Slide 10: GSF Finnmark
GSF Finnmark • Higher harvest volume in Q3 Q3 2015 Q3 2014 YTD 2015 YTD 2014 reduces costs per kilo. Harvest (gwt) 7 802 6 933 14 134 20 666 • Stable sea production in Q3. Sales revenues 319 862 211 593 559 303 765 595 EBIT 47 223 -1 117 66 283 167 759 • Decided to bring forward some EBIT/kg 6,1 -0,
Slide 11: GSF BC (Canada)
GSF BC (Canada) • Weak US market in Q3, especially for coho. Q3 2015 Q3 2014 YTD 2015 YTD 2014 Harvest (gwt) 4 470 2 899 12 066 5 637 • Last coho generation in BC Sales revenues 176 821 108 710 461 150 233 679 harvested - MNOK 19 loss. EBIT -27 547 -33 555 -9 116 -47 907 EBIT/kg -6,2 -11,6 -0,8 -8,5
Slide 12: GSF Shetland
GSF Shetland • Decided to sell the VAP equipment. The Q3 2015 Q3 2014 YTD 2015 YTD 2014 accounts include a loss of MNOK 50 in Harvest (gwt) 5 401 4 850 12 396 12 889 this connection. Sales revenues 243 324 192 384 581 056 549 551 EBIT -13 600 4 165 -46 642 54 753 • Strengthening of GBP against NOK h
Slide 13: Ocean Quality (GSF 60%, Bremnes 40%)
Ocean Quality (GSF 60%, Bremnes 40%) • Positive margin in Norway. • Prices UK vs Norway +1.33 NOK • High margin in North America. Norway: North America: griegseafood.com 13
Slide 14: Financials
Financials griegseafood.com 14
Slide 15: Profit and Loss
Profit and Loss All figures in NOK 1,000 Q3 2015 Q3 2014 YTD 2015 YTD 2014 Total operating income 1 244 577 956 618 3 449 057 3 113 730 EBITDA 47 391 -18 852 174 404 312 979 Depreciation and amortisation -91 738 -33 827 -169 780 -99 337 EBIT before biomass adj -44 346 -52 679 4 624 213 642 Fair valu
Slide 16: Net financial
Net financial All figures in NOK 1,000 Q3 2015 Q3 2014 YTD 2015 YTD 2014 Changes in fair value from hedging instruments -8 267 2 266 1 527 3 377 Net financial interest -34 039 -21 754 -81 895 -65 797 Net currency gain (losses) 14 252 500 28 028 11 487 Dividends 0 0 0 0 Net other financial expenses/-
Slide 17: Investments
Investments Capex Maintenance level * * Green licenses Finnmark included in 2014 figures – MNOK 40. griegseafood.com 17
Slide 18: Cash Flow
Cash Flow Q3 2015 Q3 2014 YTD 2015 YTD 2014 Cash - opening balance 240 494 240 391 181 498 182 257 EBITDA 47 391 -18 852 174 404 312 979 Inventory, trade payables and trade receivables 126 724 197 726 224 111 36 057 Other adjustments 1 261 5 128 -18 413 -6 002 Cash flow from operations 175 376 184 0
Slide 19: Net Interest Bearing Debt/EBITDA
Net Interest Bearing Debt/EBITDA NIBD NIBD/EBITDA (excl. factoring) (according to covenants) griegseafood.com 19
Slide 20: NIBD
NIBD MNOK Q3 2015 Q3 2014 Term Loan 788 878 Revolving Credit 350 0 Bond 400 400 Leasing 322 213 Other interest bearing debt 12 11 Cash - closing balance -309 -196 NIBD excl factoring 1 562 1 306 Factoring 183 171 griegseafood.com 20
Slide 21: Balance sheet 1
Balance sheet 1 ASSETS 30.09.15 30.09.14 Goodw ill 109 724 107 635 Licenses 1 086 571 999 673 Other intangible assets 17 573 4 351 Property, plant and equipment 1 499 340 1 264 612 Investments in associtated and joint venture companies 25 187 32 134 Other non-current assets 5 293 1 509 Total non-cur
Slide 22: Balance sheet 2
Balance sheet 2 EQUITY AND LIABILITIES 30.09.15 30.09.14 Share capital 446 648 446 648 Treasury Shares -5 000 -5 000 Retained earnings and other equity 1 637 659 1 513 892 Total equity 2 079 307 1 955 540 Deferred tax liabilities 550 971 543 982 Pension- and other obligations 1 435 3 411 Subordinate
Slide 23: Key financial indicators
Key financial indicators Q3 2015 Q3 2014 YTD 2015 YTD 2014 EBITDA-margin before adj biomass 4% -2 % 5% 10 % EBIT-margin before adj biomass -4 % -6 % 0,1 % 7% NIBD/EBITDA before adj biomass 4,5 3,2 4,5 3,2 ROCE before adj biomass -5 % -8 % 0,1 % 9% Equity ratio 38 % 41 % 38 % 41 % griegseafood.com 23
Slide 24: Outlook
OUTLOOK griegseafood.com 24
Slide 25: Harvest estimate
Harvest estimate Guiding 2015 (1,000 tons Rogaland Finnmark BC Shetland GSF Group gw e) Q1 2,8 5,0 1,8 3,4 13,1 Growth % 29 % -13 % 75 % -17 % 0% Q2 7,0 1,3 5,8 3,6 17,6 Growth % 29 % -84 % 242 % -9 % -7 % Q3 1,8 7,8 4,5 5,4 19,5 Growth % -13 % 13 % 54 % 11 % 16 % Q4 4,5 5,6 2,1 4,7 17,0 Growth % 42
Slide 26: Supply outlook
Supply outlook Global supply growth farmed salmon (YoY): • Global supply growth moving down, 2016 vs 2015 expected to be 0% . • Norway - none growth: • 2015: +1% • 2016: +0% (1,090’ MT) • Chile – negative growth rate: • 2015: -1% • 2016: -2% (508’ MT) • Canada – from positive to negative growth rate
Slide 27: Outlook summary
Outlook summary • Limited supply-side growth, a strong market is expected. • Aim to bring the cost level down to the industry average, or lower. o GSF’s smolt-programme is enhanced - increasing number and size of smolt. Focus on increasing both internal and external smolt capacity. Shorten the produ
Slide 28: Thank you !
Thank you ! griegseafood.com 28
Slide 29: Appendix
APPENDIX griegseafood.com 29
Slide 30: Share info
Share info − Number of shares • 111.7 million (after full conversion of bonds in August 2009). − Last issues: Q2 2009 • 139 MNOK new share issue. − Subordinated convertible bond issue: Q1 2009 • 100 mill. convertible at NOK 4.00 per share within 31.12.2010. • 85% converted in Q2 2009. • 15% converte
Slide 31: Shareholders
Shareholders No. shares % GRIEG HOLDINGS 55 801 409 49,97 % DNB NOR MARKETS, AKSJEHAND/ANALYSE 22 189 799 19,87 % NORDEA BANK NORGE ASA MARKETS 6 605 998 5,92 % KONTRARI AS 6 559 309 5,87 % YSTHOLMEN 2 928 197 2,62 % OM HOLDING AS 2 610 000 2,34 % STATE STREET BANK AND TRUST CO. 1 305 901 1,17 % GRI
Slide 32: Profit and Loss
Profit and Loss All figures in NOK 1,000 Q3 2015 Q3 2014 YTD 2015 YTD 2014 Total operating incom e 1 244 577 956 618 3 449 057 3 113 730 Share of profit from joint venture -120 3 775 7 231 5 613 Change in inventories -68 469 55 138 -24 812 25 389 Raw materials and consumables used -506 915 -522 484