Grieg Seafood Asa · OSL:GSF
Grieg Seafood Asa — Grieg Seafood Asa Ord — Q1 2024 Earnings Presentation
32 slides from Grieg Seafood Asa's earnings presentation, May 16, 2024
Slide 1: Q1 2024
Q1 2024 16.05.2024 1
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) has been produced by Grieg Seafood ASA (“GSF”) exclusively for information purposes and may not be copied, distributed, further disseminated or relied upon for any purpose by any person without our prior written consent. This Presentation contains fo
Slide 3: Agenda
Agenda • HIGHLIGHTS • OPERATIONS • FINANCIALS • OUTLOOK AND SUMMARY • APPENDIX 16.05.2024 Grieg Seafood ASA - Q1 2024 3
Slide 4: Highlights
Highlights • Operational EBIT in the quarter of NOK 292 million (NOK 385 million) • Rogaland delivered second best quarterly results ever • Results in Finnmark significantly impacted by historical biological challenges and downgrades • Successful completion of harvest of the first generation in Newf
Slide 5: Operations
OPERATIONS 16.05.2024 Grieg Seafood ASA - Q1 2024 5
Slide 6: GSF Rogaland
GSF Rogaland NOK million Q1 2024 Q4 2023 Q1 2023 Harvest volume (tonnes GWT) 9,426 2,159 7,502 • Second best quarterly results ever driven by lower cost and Revenues 971.0 167.5 726.0 strong price achievement Operational EBIT 371.1 22.4 288.0 • High average weight driven by post-smolt Revenue/kg (NO
Slide 7: GSF Finnmark
GSF Finnmark NOK million Q1 2024 Q4 2023 Q1 2023 • Results significantly impacted by low average harvest weights Harvest volume (tonnes GWT) 5,663 10,387 7,856 and reduced quality Revenues 450.1 736.1 651.3 • Fish health and welfare impacted by mix of Spiro*, string Operational EBIT 17.3 64.0 157.9
Slide 8: GSF BC
GSF BC NOK million Q1 2024 Q4 2023 Q1 2023 Harvest volume (tonnes GWT) 666 6,038 — Revenues 50.7 478.8 — • Spot prices in North America under pressure due to increased supply from multiple regions Operational EBIT 0.2 -47.6 -12.8 Revenue/kg (NOK) 76.1 79.3 n/a • Limited harvesting from one site by t
Slide 9: GSF Newfoundland
NOK million Q1 2024 Q4 2023 Q1 2023 GSF Newfoundland Harvest volume (tonnes GWT) 5,320 3,184 — Revenues 451.9 235.72 — • Successfully completed harvest of the first generation of Operational EBIT -69.9 -88.9 -27.6 fish with a total volume of ~8 500 tonnes GWT, 5,320 tonnes Revenue/kg (NOK) 85.0 74.0
Slide 10: Increasing value creation
Increasing value creation • Investing NOK 130 million in a new 10,000 tonnes capacity secondary processing facility at Oslo Airport Gardermoen ◦ Expected completion summer 2025 • Part of downstream strategy to increase share of value creation • Improved utilization of our production and risk managem
Slide 11: Financials
FINANCIALS 16.05.2024 Grieg Seafood ASA - Q1 2024 11
Slide 12: Profit & loss
Q1 Q4 Q1 Profit & loss Profit & loss (NOK million) 2024 2023 2023 Sales revenues 2,289.8 1,937.7 1,545.8 Operational EBIT* 291.8 -67.0 385.4 • Operational EBIT of NOK 292 million Production fee -13.8 -12.9 -8.6 Fair value adjustments of biological assets -597.6 564.4 148.0 EBIT -319.6 484.5 524.8 •
Slide 13: Net interest-bearing debt
Net interest-bearing debt • The Group has a good financial position as at 31 March 2024, Movements in net interest-bearing debt ex. IFRS 16 with free liquidity of NOK 1,299 million (NOK million) ◦ Cash and cash equivalents of NOK 279 million △ -241 ◦ Undrawn revolving credit and overdraft facilities
Slide 14: Financial position
Financial position Capital structure (NOK million) 31.03.2024 Green bond loan 1,393 • Green bond loan of NOK 1,393 million Term loan 1,355 • 70% of gross interest-bearing liabilities green or Revolving credit facility 680 sustainability linked as at 31 March 2024 Lease liabilities (incl IFRS 16) 1,3
Slide 15: Investments
Investments • Gross investments* in Q1 2024 of NOK 284 million ◦ Growth investments Q1 2024 of NOK 192 million ◦ Maintenance investments Q1 2024 of NOK 92 million • Planned 2024 CapEx of ~ NOK 1,500 million ◦ Maintenance investments ~ NOK 300 million ◦ Finnmark post-smolt expansion ~ NOK 500 million
Slide 16: Financials summary
Financials summary • Good financial position and capital structure as at 31 March 2024 with equity ratio of 49%, or 53% according to financial covenant • Extension of bank facility of NOK 1 000 million signed in Q2 2024 ◦ Free liquidity per 31 March 2024 incl. extension (pro forma) NOK 2 299 million
Slide 17: Outlook and Summary
OUTLOOK AND SUMMARY 16.05.2024 Grieg Seafood ASA - Q1 2024 17
Slide 18: Outlook
Outlook Sales & Market Guiding Rogaland Finnmark BC NL GSF Group (tonnes GWT) • Expect continued strong salmon market Q1 2024 (actuals) 9,426 5,663 666 5,320 21,100 due to healthy demand and stable supply Q2 2024 3,600 3,500 10,000 — 17,100 • Estimate contract share of 11% of Q3 - Q4 2024 14,974 17,
Slide 19: Summary
Summary • Rogaland delivering the second best quarterly results ever • Measures taken to improve fish health and welfare in Finnmark • Successful completion of first generation in Newfoundland • Prioritized biomass growth in BC, targeting 10 000 tonnes in Q2 2024 • Construction of post-smolt facilit
Slide 20: Upcoming financial results
UPCOMING FINANCIAL RESULTS Q2 2024: 22 August 2024 Q3 2024: 7 November 2024 The Company reserves the right to make amendments to the financial calendar 16.05.2024 Grieg Seafood ASA - Q1 2024 20
Slide 21: Appendix Q1 2024
APPENDIX Q1 2024 16.05.2024 Grieg Seafood ASA - Q1 2024 21
Slide 22: Our approach to sustainable business
Our approach to sustainable business Our pillars HEALTHY SUSTAINABLE PROFIT & LOCAL OCEAN FOOD INNOVATION PEOPLE COMMUNITIES Topics • Fish health and welfare • Safe and healthy food • Profitable operations • Human rights • Local value creation • Protecting wild salmon • Sustainable feed • Our market
Slide 23: Limited supply growth
Limited supply growth GLOBAL HARVEST GROWTH FARMED ATLANTIC SALMON (Y-O-Y) VOLUME CHANGE BY COUNTRY 2024 (1,000 tonnes WFE) 92 3,000 82 2,900 34 2,837 59 59 57 57 2,796 15 27 7 54 2,800 -41 62 6% 41 5% 7% 7% 2% -5% 5% 10% 13% 5% 2,700 4% 1% -1% 2,600 -2% Total 2023 Norway Chile North UK Others Total
Slide 24: Spot market price development
Spot market price development NASDAQ SALMON INDEX (NOK/KG) 140 130 120 110 100 90 80 70 60 50 40 30 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 2020 2021 2022 2023 2024 16.05.2024 Grieg Seafood ASA - Q1 2024 24
Slide 25: Profit & loss
GRIEG SEAFOOD GROUP NOK 1 000 Q1 2024 Q1 2023 FY 2023 Sales revenues 2,289,779 1,545,757 7,019,632 Other income 5,303 24,875 31,538 Share of profit from associates -1,601 4,338 -6,957 Raw materials and consumables used -1,061,565 -415,207 -2,747,944 Salaries and personnel expenses -189,942 -198,719
Slide 26: Comprehensive income
GRIEG SEAFOOD GROUP NOK 1 000 Q1 2024 Q1 2023 FY 2023 Net profit for the period -330,693 427,219 559,750 Currency effect on investment in subsidiaries 32,218 88,914 98,316 Comprehensive Currency effect on loans to subsidiaries Tax effect Other comprehensive income for the period, net of tax 19,187 -
Slide 27: Financial position - assets
GRIEG SEAFOOD GROUP NOK 1 000 31.03.2024 31.03.2023 31.12.2023 Goodwill 751,120 732,088 727,111 Licenses incl. warranty licenses 1,513,941 1,509,426 1,489,798 Other intangible assets 13,579 14,598 13,275 Property, plant and equipment incl. right-of-use assets 5,329,774 4,261,977 5,095,401 Indemnific
Slide 28: Financial position - equity and liabilities
GRIEG SEAFOOD GROUP NOK 1 000 31.03.2024 31.03.2023 31.12.2023 EQUITY AND LIABILITIES Share capital 453,788 453,788 453,788 Treasury shares -5,255 -5,685 -5,255 Financial Contingent consideration 701,535 701,535 701,535 Retained earnings and other equity 5,235,593 5,877,756 5,519,102 Total equity 6,
Slide 29: Cash flow statement
GRIEG SEAFOOD GROUP NOK 1 000 Q1 2024 Q1 2023 FY 2023 EBIT (Earnings before interest and taxes) -319,588 524,787 980,730 Depreciation, amortization and write-down 151,048 121,765 554,568 Gain/loss on sale of property, plant and equipment -148 2,125 8,159 Share of profit from associates 1,601 -4,338
Slide 30: Cash flow
Cash flow Changes in cash and cash equivalents NOK million • Net cash flow from operations NOK 689 million • Operational EBITDA* impacted cash flow positively with 206 NOK 443 million (NOK 507 million in Q1 2023) • Changes in working capital of NOK 206 million, incl. biomass release of NOK 302 milli
Slide 31: Share information
Share information Number of shares THE 20 LARGEST SHAREHOLDERS IN GRIEG SEAFOOD ASA AT 31.03.2024 NO. OF SHARES SHARE- HOLDING Grieg Aqua AS 56,914,355 50.17% • 113,447,042 shares incl. treasury shares OM Holding AS 5,160,982 4.55% Last issues Ystholmen Felles AS 1,923,197 1.70% • Q2 2020 - NOK 7 mi
Slide 32: Key metrics and long term targets
Key metrics Long term targets FY 2021 FY 2022 FY 2023 YTD 2024 Harvest volume 120 000-135 000 tonnes 75,601 tonnes 84,697 tonnes 72,015 tonnes 21,075 tonnes NOK 44.1/kg NOK 47.7/kg NOK 62.3/kg NOK 68.4/kg Cost Cost leader in our operating regions CAD 8.8/kg CAD 9.1/kg CAD 11.3/kg CAD 12.3/kg 1 NIBD/
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