Grieg Seafood ASA · OSL:GSF
Grieg Seafood ASA — Investor Presentation (2018)
32 slides from Grieg Seafood ASA's investor presentation, 2018
Slide 1: Our four regions and their priorities
Our four regions and their priorities
Slide 2: Our operations
Our operations Finnmark Shetland Rogaland British Columbia Finnmark Rogaland Shetland British Columbia Tonnes Tonnes Tonnes Tonnes 40 000 30 000 30 000 30 000 30 000 20 000 20 000 20 000 20 000 10 000 10 000 10 000 10 000 0 0 0 0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017
Slide 3: Finnmark
Finnmark Roy-Tore Rikardsen, Regional Manager 50
Slide 4: Operational characteristics
38 000 tonnes Operational capacity GWT characteristics 27 sea water licenses Optimal biological 2 conditions smolt facilities Advantageous water temperatures. Low interconnectivity between sites 1 primary processing facility Strong biological Seasonal day length performance variations Preventive mea
Slide 5: Historical performance
Historical performance Harvest volume Total regional sales revenue (1 000 tonnes GWT) (NOK million) 26.5 1 244 1 268 23.1 22.1 22.8 20.7 20.1 975 19.5 870 16.1 800 733 500 520 2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017 EBIT/kg Cost/kg harvested (NOK) (NOK) 20.2 3
Slide 6: Proximity to Russia gives additional potential
Proximity to Russia gives additional potential • Primary processed product sold through Ocean Quality, primarily to EU market • Geographic proximity to Russia - Historically an important market for GSF Finnmark - Potential competitive edge from possible re-opening of the Russian market Norwegian exp
Slide 7: Securing new locations to improve capacity utilization
Securing new locations to improve capacity utilization Current: 80% MAB* capacity utilization Current location capacity: ~68 000+ tonnes Nordkapp 5 locations Sites at times harvested with low average weight to MAB 19 195 t ensure sufficient fallow periods Hammerfest 3 locations MAB 16 860 t Target:
Slide 8: Increasing smolt capacity to support production growth
Increasing smolt capacity to support production growth Access to high quality smolt is key to ensuring production growth with sustainable biology 2018 Target Total smolt capacity (million) 10.0 10.0 10.0 10.0 Adamselv • Production: 6.5 million • Capacity 2019: smolt 8 million smolt 2.0 2.0 in-house
Slide 9: Improve and safeguard survival rates to ensure sustainable growth
Improve and safeguard survival rates to ensure sustainable growth GSF Finnmark employs strict routines to ensure fish welfare and to increase survival rates Secure access Smolt release Proper Use of lice Camera to high-quality scheduled to routines and skirts surveillance smolt avoid seasonal hygien
Slide 10: Finnmark priorities
Finnmark priorities • Securing new locations to improve capacity utilization • Increasing smolt capacity to support production growth • Safeguarding survival rates to ensure sustainable growth • 2020 target: 38 000 tonnes GWT 57
Slide 11: Rogaland
Rogaland Knut Utheim, Chief Operating Officer 58
Slide 12: Operational characteristics
25 000 tonnes Operational capacity GWT characteristics 20* sea water licenses Sophisticated 2 onshore capabilities smolt facilities Post-smolt expected to drive biological improvements and cost efficiency 1 primary processing facility Pioneer within Environmentally precision farming challenging regi
Slide 13: Historical performance
Historical performance Harvest volume Total regional sales revenue (1 000 tonnes GWT) (NOK million) 1 140 1 151 19.2 18.4 18.1 16.0 15.1 15.2 12.8 12.8 641 661 548 558 573 476 2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017 EBIT/kg Cost/kg harvested (NOK) (NOK) 25.4 3
Slide 14: Post-smolt production ensures biological control
Post-smolt production ensures biological control Why large-smolt? Two smolt facilities 1. Improved biological control Trosnavåg Tytlandsvik from shorter production time Expanded in 2017 To be completed by end-2018. in sea Partnership with Bremnes • Fewer lice treatments per fish Current capacity: Se
Slide 15: Larger smolt size reduces seawater production time
Larger smolt size reduces seawater production time Actual growth first 22 weeks of seawater production Size (grams) 3 500 3 000 2 500 2 000 1 500 1 000 500 Week 0 2018-12 2018-14 2018-16 2018-18 2018-20 2018-22 2018-24 2018-26 2018-28 2018-30 2018-32 2018-34 115g smolt 320g smolt 460g smolt 1 000g s
Slide 16: Precision farming ensures efficient operations
Precision farming ensures efficient operations Better feeding leads to better growth 01 Launch fall 2018 - ensure all technical aspect function correctly 02 Centralize and improve feeding operations 03 Gather and analyze new and historical data to support decision making at the growth sites 04 Free
Slide 17: Rogaland priorities
Rogaland priorities • Post-smolt production ensures biological control, targeting 500 grams in 2020 • Larger smolt size significantly reduces seawater production time • Precision farming ensures efficient operations • 2020 target: 25 000 tonnes GWT 64
Slide 18: Shetland
Shetland Grant Cumming, Regional Manager 65
Slide 19: Operational characteristics
Operational 17 000 characteristics tonnes capacity GWT Favorable 1 environmental RAS smolt facility conditions Strong water exchange and optimal water temperatures 1 primary processing facility Large number of RAS production small sites capability Close proximity between High share of smolt from sit
Slide 20: Historical performance
Historical performance Harvest volume Total regional sales revenue (1 000 tonnes GWT) (NOK million) 852 860 19.2 774 746 17.0 17.1 16.4 660 14.7 567 13.2 13.5 512 538 12.1 2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017 EBIT/kg Cost/kg harvested (NOK) (NOK) 13.0 55.0
Slide 21: Market overview
Market overview GSF Shetland Exports market share (YTD 2018) UK market characteristics • Strong preference for Scottish salmon • Strong price variations depending on Scottish supply USA Asia • Long-term average premium around NOK 4 per kilo 11% of sales 4% of sales • Sales largely go to retailers. N
Slide 22: Several initiatives underway to improve biosecurity and fish welfare
Several initiatives underway to improve biosecurity and fish welfare Fewer sites Management agreements Monitoring Improved treatment • Production sites cut from 27 • Integrated Pest Management • Testing for germs at early • Fresh water treatment in 2014 to 17 in 2018 (IPM) principles, including: sta
Slide 23: Shetland priorities
Shetland priorities • Strong UK market and growing opportunities in the US and Asia • Several initiatives underway to ensure strong biosecurity and improved fish welfare • 2020 target: 17 000 tonnes GWT 70
Slide 24: British Columbia
British Columbia Rocky Boschman, Regional Manager 71
Slide 25: Operational characteristics
Operational 20 000 characteristics tonnes capacity GWT Harmful algae presence Utilizes leading monitoring- and algae 1 smolt facility prevention technology Complex licensing Low interconnectivity system between farmers Provincial leases Present in 4 areas with contingent on licenses and highly auton
Slide 26: Historical performance
Historical performance Harvest volume Total regional sales revenue (1 000 tonnes GWT) (NOK million) 14.3 611 13.7 13.2 13.6 574 580 554 10.7 491 9.6 438 331 6.7 6.3 278 2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017 EBIT/kg Cost/kg harvested (NOK) (NOK) 12.5 53.3 45.
Slide 27: Market overview
Market overview North America • YTD 2018 the North American market has comprised about 73% of GSF BC exports • Mainly whole fish sold, but fillets and other value added products sales are growing • North American market growing by double digits every year The Skuna Bay brand • Skuna Bay products are
Slide 28: Market overview
Market overview China • Selective harvest has contributed to increasing average harvest size by ~1kg from 2017 to 2018 • Larger size leads to increased exports to China • YTD 2018 the Chinese market has made up ~27% of GSF BC exports, up from 6.5% in 2017 • In the first two months of 2018, GSF BC wa
Slide 29: Exploiting technology to maximize feeding
Exploiting technology to maximize feeding Feeding decisions are significantly influenced by various environmental factors Historically Going forward Real-time indicator Aeration systems Advanced feeding systems monitoring Feeding decisions • Allow for feeding in • Capacity to feed in short time base
Slide 30: Investing in low-cost access to high-quality smolt
Investing in low-cost access to high-quality smolt Current situation Potential smolt expansion Improved biological control Golden River smolt facility Golden River smolt facility 1. Shorter production cycles • 4 million smolt • 6 million smolt allow for freedom in terms • 120 grams • 120 grams of wh
Slide 31: British Columbia priorities
British Columbia priorities • Exploiting technology to maximize feeding • Investing in low-cost access to high quality smolt • 2020 target: 20 000 tonnes GWT 78
Slide 32: Grieg Seafood - Rooted in Nature
Grieg Seafoods ROOTED IN NATURE