Grieg Seafood ASA · OSL:GSF
Grieg Seafood ASA — Q2 2015 Earnings Presentation
32 slides from Grieg Seafood ASA's earnings presentation, Aug 19, 2015
Slide 1: Grieg Seafood ASA Q2 2015
Grieg Seafood ASA Q2 2015 Andreas Kvame | CEO Atle Harald Sandtorv | CFO 19 August 2015 griegseafood.com 1
Slide 2: Agenda
Agenda • Highlights • Business Units (Regions) • Financials • Outlook griegseafood.com 2
Slide 3: Highlights Q2 2015
HIGHLIGHTS Q2 2015 griegseafood.com 3
Slide 4: Highlights Q2 2015
Highlights Q2 2015 • EBIT of ‐ MNOK 21 in Q2 (MNOK 123 in 2014). • Mortality of 1,000 tons in BC due to low oxygen levels. • High costs in Shetland and Rogaland due to previous biological incidents. • Low harvest volumes in Finnmark. • Production in Shetland good, weaker in Norway due to low sea tem
Slide 5: Financial highlights Q2 2015
Financial highlights Q2 2015 Q2 2015 Q2 2014 YTD 2015 YTD 2014 Total operating income (TNOK) 1 170 864 1 130 832 2 204 481 2 157 107 EBITDA (TNOK) 18 965 156 135 127 012 331 821 EBIT before fair value adj. (TNOK) -21 072 123 071 48 970 266 316 EBIT / kg (NOK) -1,20 6,49 1,60 8,31 Harvest volume (ton
Slide 6: Business Units (Regions)
BUSINESS UNITS (REGIONS) griegseafood.com 6
Slide 7: Business units performance – Q2 2015
Business units performance – Q2 2015 EBIT before biomass adjustment/KG gwt 3,1 10,2 -3,7 9,7 0,9 -5,1 -12,5 2,3 Rogaland Finnmark BC Shetland Q2 15 Q2 14 Q2 15 Q2 14 Q2 15 Q2 14 Q2 15 Q2 14 Harvest (gwt) 6 956 5 397 1 290 7 958 5 756 1 685 3 556 3 910 Sales MNOK 282 230 47 298 210 64 143 158 griegse
Slide 8: Business units performance – YTD 2015
Business units performance – YTD 2015 EBIT before biomass adjustment/KG gwt 3,9 10,0 3,0 12,3 2,4 -5,2 -4,7 6,3 Rogaland Finnmark BC Shetland YTD15 YTD14 YTD15 YTD14 YTD15 YTD14 YTD15 YTD14 Harvest (gwt) 9 716 7 535 6 331 13 733 7 596 2 738 6 995 8 039 Sales MNOK 403 341 239 554 284 123 338 357 grie
Slide 9: GSF Rogaland
GSF Rogaland • High cost in Q2 due to harvest of Q2 2015 Q2 2014 YTD 2015 YTD 2014 PD fish. Harvest (gwt) 6 956 5 397 9 716 7 535 • Cost expected to move down in Sales revenues 282 355 230 337 403 085 340 817 Q3 when starting harvesting from EBIT 21 846 55 235 37 913 75 582 EBIT/kg 3,1 10,2 3,9 10,0
Slide 10: GSF Finnmark
GSF Finnmark Q2 2015 Q2 2014 YTD 2015 YTD 2014 • Low harvest volumes impact cost Harvest (gwt) 1 290 7 958 6 331 13 733 negatively. This will improve when Sales revenues 47 121 298 042 239 441 554 002 volumes increase in Q3. EBIT -4 709 76 796 19 060 168 876 • Low temperatures causing reduced sea EB
Slide 11: GSF BC (Canada)
GSF BC (Canada) • Weak American market in Q2, improving in Q3. Q2 2015 Q2 2014 YTD 2015 YTD 2014 Harvest (gwt) 5 756 1 685 7 596 2 738 • Mortality of 1,000 tons on the west Sales revenues 210 296 64 033 284 329 122 595 coast of Vancouver Island due to EBIT 5 089 -8 628 18 431 -14 352 low oxygen leve
Slide 12: GSF Shetland
GSF Shetland • High proportion of small fish due to gill challenges. Q2 2015 Q2 2014 YTD 2015 YTD 2014 – High cost due to low growth. Harvest (gwt) 3 556 3 910 6 995 8 039 – The market for this fish was weak. Sales revenues 142 829 158 485 337 732 357 167 – Contribution from Ocean Quality was negati
Slide 13: Ocean Quality (GSF 60%, Bremnes 40%)
Ocean Quality (GSF 60%, Bremnes 40%) North America: • Positive margin in Norway. • Margin in UK moving down. • High margin in North America in the second quarter with a new sales organization. Norway: UK: griegseafood.com 13
Slide 14: Financials
Financials griegseafood.com 14
Slide 15: Profit and Loss
Profit and Loss All figures in NOK 1,000 Q2 2015 Q2 2014 YTD 2015 YTD 2014 Total operating income 1 170 864 1 130 832 2 204 481 2 157 107 EBITDA 18 965 156 135 127 012 331 821 Depreciation and amortisation -40 037 -33 064 -78 042 -65 505 EBIT before biomass adj -21 072 123 071 48 970 266 316 Fair va
Slide 16: Net financial
Net financial All figures in NOK 1,000 Q2 2015 Q2 2014 YTD 2015 YTD 2014 Changes in fair value from hedging instruments 13 320 -385 10 368 1 111 Net financial interest -25 243 -23 001 -47 856 -44 043 Net currency gain (losses) 11 438 12 858 13 202 10 984 Net other financial expenses/-income 973 -717
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 Q2 2015 Q2 2014 YTD 2015 YTD 2014 Cash - opening balance 201 220 286 227 181 498 182 258 EBITDA 18 965 156 135 127 012 331 821 Inventory, trade payables and trade receivables 101 493 93 499 97 386 -161 680 Other adjustments -46 220 -191 704 -20 282 -13 580 Cash flow from operations 74 238
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 Q2 2015 Q2 2014 Term Loan 810 900 Revolving Credit 250 0 Bond 400 400 Leasing 303 211 Other interest bearing debt 12 4 Cash - closing balance -240 -240 NIBD excl factoring 1 535 1 274 Factoring 280 288 griegseafood.com 20
Slide 21: Balance sheet
Balance sheet 1 ASSETS 30.06.15 30.06.14 Goodw ill 109 306 107 662 Licenses 1 079 449 1 000 268 Other intangible assets 16 178 4 400 Property, plant and equipment 1 494 878 1 224 840 Investments in associtated and joint venture companies 25 123 32 651 Other non-current assets 2 846 1 749 Total non-c
Slide 22: Balance sheet
Balance sheet 2 EQUITY AND LIABILITIES 30.06.15 30.06.14 Share capital 446 648 446 648 Treasury Shares -5 000 -5 000 Retained earnings and other equity 1 613 952 1 575 144 Total equity 2 055 600 2 016 792 Deferred tax liabilities 530 917 559 498 Pension- and other obligations 1 435 3 382 Subordinate
Slide 23: Key financial indicators
Key financial indicators Q2 2015 Q2 2014 YTD 2015 YTD 2014 EBITDA-margin before adj biomass 2% 14 % 6% 15 % EBIT-margin before adj biomass -2 % 11 % 2% 12 % NIBD/EBITDA before adj biomass 5,7 2,3 5,7 2,3 ROCE before adj biomass -2 % 16 % 3% 17 % 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 2,1 6,6 4,0 4,7 17,4 Growth % 3% -5 % 37 % -3 % 4% Q4 6,7 6,9 2,3 6,1 22,0 Growth % 110 % 1
Slide 26: Supply outlook
Supply outlook Global supply growth farmed salmon (YoY): • Global supply growth moving down, 2015 vs 2014 expected to be 2% . • Norway ‐ stable growth rate: • 2014: +5% • 2015: +2% (1,105’ MT) • Chile – form positive to negative growth rate: • 2014: +25% • 2015: ‐2% (517’ MT) • Canada – from negativ
Slide 27: Outlook summary
Outlook summary • Cold summer and limited supply growth is expected to result in a strong market ahead. • Harvest volume guiding 2015 down by 2,000 MT to 70,000 MT. Increasing 5,000 MT vs 2014. Growth expected to continue in 2016. • The harvested volume in Q3 2015 is expected to be 17,400 MT. • The
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 22 198 772 19,88 % 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 Q2 2015 Q2 2014 YTD 2015 YTD 2014 Total operating incom e 1 170 864 1 130 832 2 204 481 2 157 107 Share of profit from joint venture 1 541 73 7 351 1 838 Change in inventories -49 317 -41 770 43 657 -29 708 Raw materials and consumables used -785 657 -661 790