Leroy Seafood Group Asa · OSL:LSG
Leroy Seafood Group Asa — Lerøy Seafood Group — Q1 2022 Earnings Presentation
31 slides from Leroy Seafood Group Asa's earnings presentation, May 13, 2022
Slide 1: Q1 2022
LEROY Q1 2022 MAYA3TH
Slide 2: Value chain
- © & a _ VALUE CHAIN We carl 3
Slide 3: Highlights, Key Financial Figures, Outlook
1. Highlights 2. Key Financial Figures 3. Outlook
Slide 4: Highlights
Highlights
Slide 5: Q1 2022 Highlights
Q1 2022 Highlights 1 000 EBIT* 900 852 800 - Strong price increase in raw materials gives lift in both price 700 realisation and cost 600 NOK million 500 400 - Temporary negative for downstream operations as it takes time to 300 transfer higher prices to consumers 200 100 0 - EBIT pre FV adj. of NOK
Slide 6: Lerøy Seafood Group ASA structure
Lerøy Seafood Group ASA VAP, Sales and Farming Wild catch distribution
Slide 7: Q1 2022 Farming highlights
Q1 2022 Farming highlights 800 EBIT* farming 700 621 - Low harvest volumes, with almost 50% from Lerøy Sjøtroll 600 500 NOK million 400 - Spot prices well above last year 300 • NSI Q1/22 NOK 79.7 vs NOK 52.1 in Q1/21 (+53%) 200 • Up NOK 20/kg q-o-q, and up NOK 28/kg y-o-y 100 0 - Contract share for
Slide 8: Farming volumes
Farming volumes 2016 2017 2018 2019 2020 2021 2022E GWT GWT GWT GWT GWT GWT GWT Lerøy Aurora AS 30 000 39 200 36 800 32 800 35 000 44 000 ~40 000 Lerøy Midt AS 52 200 64 500 66 500 64 800 67 900 72 600 ~71 000 Lerøy Sjøtroll 68 000 54 000 58 800 60 600 68 000 70 000 ~74 000 Total Norway 150 200 157
Slide 9: Q1 2022 Wildcatch highlights
Q1 2022 Wildcatch highlights 300 EBIT Wildcatch 250 236 - Strong price development, due strong demand and lower quotas 200 NOK million 150 - High prices positive for profitability on catching- , but a challenge 100 for the processing activity 50 0 - Significant increase in fuel cost., up NOK 27m y-o
Slide 10: Catch volumes Wild Catch
Catch volumes Wild Catch Remaining Remaining Catch volume Catch volume quota quota Q1/22 Q1/21 2021 2020 2022 2021 Cod 10 023 11 113 26 582 23 594 13 954 16 600 Saithe 3 510 4 030 13 156 14 547 11 612 11 084 Haddock 7 441 5 998 10 878 7 402 2 381 6 247 Shrimps 0 0 9 433 6 348 Other 4 141 4 581 11 47
Slide 11: Q1 2022 VAPS&D highlights
Q1 2022 VAPS&D highlights 6 500 Revenue and EBIT-margin VAPS&D 4,0 6 000 3,5 - “Extreme” development in salmon prices brings pressure on margins 5 500 5 121 3,0 EBIT margin (%) as it takes time to transfer prices to consumers 5 000 2,5 NOK million 4 500 2,0 4 000 1,5 - Position in market as a reliab
Slide 12: Key financial figures
Key financial figures
Slide 13: Key financial figures – Q1 2022
Key financial figures – Q1 2022 (NOKm) Q1 2022 Q1 2021 ▲% Revenue 5 524 4 925 12 % Other gains and losses 1 2 EBITDA 1 173 759 54 % Depreciation & amortisation 321 304 EBIT* 852 455 87 % Income from associates* 32 38 Net finance -45 -38 Pre-tax profit* 838 455 84 % EPS (NOK)* 1,02 0,58 75 % Salmon a
Slide 14: Balance sheet
Balance sheet (NOKm) 31.03.2022 31.03.2021 ▲% Intangible assets 8 560 8 326 Right-of-use-assets 2 931 2 706 Tangible fixed assets 7 279 6 844 Financial non-current assets 1 527 1 203 Total non-current assets 20 298 19 080 Biological assets at cost 4 715 4 366 Fair value adjustment of biomass 1 858 6
Slide 15: Change in NIBD
Change in NIBD Q1 2022 Q1 2021 FY 2021 EBI TDA before fair v alue adjustment on biological assets 1 173 759 3 778 Paid tax -143 -114 -387 Change in w orking capital -629 188 414 Other (Net gain from sales of NCA) -1 -2 -64 NIBD impact from operating activities 400 831 3 740 New intangibles, fixed as
Slide 16: EBIT per segment
EBIT per segment EBIT* Q1 2022 EBIT* Q1 2021 900 26 900 236 -6 852 -25 800 800 700 700 621 600 600 101 500 500 -39 455 NOKm NOKm 185 -43 400 400 300 300 251 200 200 100 100 0 0 Farming Wildcatch VAPS&D LSG Elimination Q1 2022 Farming Wildcatch VAPS&D LSG Elimination Q1 2021 ASA/other ASA/other * Bef
Slide 17: Lerøy Aurora
Lerøy Aurora Q1 2022 Q1 2021 2021 2020 Improvement in quality, positive outlook Revenue (NOKm) 368 485 2 541 1 977 EBIT* (NOKm) 92 15 445 434 • Low harvest volume gives high contract share and price realisation well below spot prices, as well as high harvesting Harvested volume (GWT) 4 887 8 996 43
Slide 18: Lerøy Midt
Lerøy Midt Q1 2022 Q1 2021 2021 2020 Good cost performance Revenue (NOKm) 846 872 4 141 3 734 EBIT* (NOKm) 286 134 838 788 • Harvesting from well-performing sites, however low volumes give higher harvesting cost, and thus marginal cost increase q-o-q Harvested volume (GWT) 11 767 16 462 72 623 67 90
Slide 19: Lerøy Sjøtroll
Lerøy Sjøtroll Q1 2022 Q1 2021 2021 2020 Improvement initiatives are yielding results Revenue (NOKm) 1 056 888 3 913 3 454 EBIT* (NOKm) 242 100 484 159 • Improvement initiatives continue, and are gradually showing positive results Harvested volume (GWT) 15 403 16 692 70 049 67 957 EBIT/kg* (NOK) 15.
Slide 20: Wildcatch (Lerøy Havfisk/LNWS)
Wildcatch (Lerøy Havfisk/LNWS) Q1 2022 Q1 2021 2021 2020 Significant improvement in profitability Revenue (NOKm) 1 031 867 2 695 2 574 • Higher price realisation give higher catch values and a lift in EBITDA (NOKm) 287 235 544 398 EBIT (NOKm) 236 185 340 205 profitability compared to last year Havfi
Slide 21: VAPS&D – VAP, Sales and Distribution
VAPS&D – VAP, Sales and Distribution Q1 2022 Q1 2021 2021 2020 Extreme price development gives pressure on profitability Revenue (NOKm) 5 121 4 628 21 972 18 886 • Price development on seafood and transportation cost EBIT (NOKm) 26 101 630 475 significantly stronger than expected, bringing pressure
Slide 22: Norskott Havbruk (associate, 50% owned)
Norskott Havbruk (associate, 50% owned by Lerøy Seafood Group) Q1 2022 Q1 2021 2021 2020 Starting to realise synergies from acquisition Revenue (NOKm) 639 396 2 307 1 699 EBIT* (NOKm) 105 74 244 308 • Harvest volume up 32% y-o-y. High cost base harvesting from sites with biological challenges in Q3
Slide 23: Outlook
Outlook
Slide 24: Atlantic Salmon - Supply
LEROY Atlantic Salmon - Supply in tons WFE Year 2017 2018 2019 Region Volume Volume Volume Volume Volume Volume 2020 2021 2022 Europe 1 493 900 1505 100 1 650 500 1 675 000 1 894 200 1 873 000 Norway 1 207 800 1 253 400 1 333 400 1 369 100 1 532 100 1 525 900 United Kingdom| 177 200 152 100 190 500
Slide 25: Spot Prices, Fresh Atlantic Salmon
Quarter 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 L E ROY Qi 26 Q2 26 Q3 28 Spot Prices, Fresh Atlantic Salmon: > - Cross Section, FCA Oslo, Superior Quality as of week 17-2022 — Weekly Price NSI FCA Oslo — Quarterly Price NSI FCA Oslo 140 120 100 80 60 40 20 0 2008
Slide 26: Atlantic Salmon - Harvest Volumes Norway
Tons YTD April: LEROY 437,600 Change from Last Year Atlantic Salmon - Harvest Volumes Norway oe in tons WFE 200 000 40% 150 000 20% 100 000 0% 50 000 -20% -40% January February March April May June July August September October November December Figures as per: 2019 ° 2020 ° 2021 * 2022 — Growth --Z
Slide 27: Atlantic Salmon - Harvest Volumes WW
Tons YTD April: LEROY 856,100 Change from Last Year Atlantic Salmon - Harvest Volumes WW oe in tons WFE 400 000 40% 300 000 20% 200 000 0% 100 000 -20% -40% January February March April May June July ‘August September October November December Figures as per: 2019 ©2020 ©2021 e¢ 2022 — Growth ---Zer
Slide 28: Atlantic Salmon Consumption
NOK/KG (NSI 3-6) Q1 pr w8: LEROY 79.52 48.68% (53.49) Atlantic Salmon Consumption Qi Market 2019 2020 2021 2022 Growth Growth % EU 249120 246159 301229 278956 -22,273 -74% Others 186280 176892 196811 188032 -8,778 -4.5% USA 128001 135217 155352 157708 2,356 15% Japan 14829 14816 18459 15272 -3,187 -
Slide 29: Outlook 2022
Klikke for å legge til annet bilde Outlook 2022 - Extreme price development, positive for farming and catching activity while a temporary challenge for downstream activity - Length of current inflationary trends will impact cost development - Contract share for salmon in Q2/22 ~40-45% - Farming • Ex
Slide 30: Value chain
- © & a _ VALUE CHAIN We carl 3
Slide 31: Contact
CONTACT – Henning Beltestad, hb@leroy.no CONTACT – Sjur Malm, sjur.malm@leroy.no