Grieg Seafood Asa · OSL:GSF
Grieg Seafood Asa — Q1 2017 Earnings Presentation
30 slides from Grieg Seafood Asa's earnings presentation, May 12, 2017
Slide 1: Grieg Seafood ASA
Grieg Seafood ASA Andreas Kvame | CEO Atle Harald Sandtorv | CFO 12 May 2017 griegseafood.com 1
Slide 2: Agenda
Agenda • Highlights • Business Units (Regions) • Financials • Outlook griegseafood.com 2
Slide 3: Highlights Q1 2017
HIGHLIGHTS Q1 2017 griegseafood.com 3
Slide 4: Highlights Q1 2017
Highlights Q1 2017 • EBIT: MNOK 131.5 – EBIT/kg Group NOK 15 – EBIT/kg Norway NOK 23 • Market remains strong – Fixed price contracts of 55 % in Q1. • Low harvest volume (8,552 tons) – Planned in order to increase sea production. – Causing high cost per kg in Q1. • Stable production in all regions •
Slide 5: Financial highlights Q1 2017
Financial highlights Q1 2017 Q1 2017 Q1 2016 Total operating income (TNOK) 1 421 071 1 299 397 EBITDA (TNOK) 178 399 252 345 EBIT before fair value adj. (TNOK) 131 492 214 382 EBIT / kg (NOK) 15,37 15,72 Harvest volume (tons gwe) 8 552 13 635 EBIT, EBITDA in this presentation: Before fair value adju
Slide 6: Business Units (Regions)
BUSINESS UNITS (REGIONS) griegseafood.com 6
Slide 7: Business units performance – Q1 2017
Business units performance – Q1 2017 EBIT before FV adjustment/KG gwt (NOK) griegseafood.com 7
Slide 8: GSF Rogaland
GSF Rogaland Q1 2017 Q1 2016 • Normal harvest volume and stable Harvest (gwt) 4 393 3 776 cost in Q1. Sales revenues 291 903 226 045 • Stable and good sea-production EBIT 122 887 72 932 throughout Q1. EBIT/kg 28,0 19,3 • Increasing mechanical delousing capacity. • Expansion of smolt plant moving for
Slide 9: GSF Finnmark
GSF Finnmark • Low harvest volume and high cost in Q1 2017 Q1 2016 Q1. Harvest (gwt) 1 632 6 296 Sales revenues 97 600 331 609 • No harvesting first weeks in 2017 resulting in lower realised prices. EBIT 15 287 124 566 EBIT/kg 9,4 19,8 • Stable and good sea-production throughout Q1. • Expansion of s
Slide 10: GSF BC (Canada)
GSF BC (Canada) Q1 2017 Q1 2016 • High cost in Q1 due to Harvest (gwt) 1 235 1 324 – Low volume Sales revenues 78 546 67 644 – Algaesituation in 2016 EBIT 17 418 -742 EBIT/kg 14,1 -0,6 • Algae also causing low quality fish in Q1, and hence lower prices. • Stable sea-production throughout Q1. • Stabl
Slide 11: GSF Shetland
GSF Shetland Q1 2017 Q1 2016 • High cost in Q1 due to Harvest (gwt) 1 293 2 240 – Low volume Sales revenues 82 101 131 333 – Harvesting from sites with high cost EBIT -14 420 6 931 (to be laid fallow in new plan) EBIT/kg -11,2 3,1 • Low quality and small size of fish in Q1 causing lower prices. • St
Slide 12: Financials
Financials griegseafood.com 12
Slide 13: Profit and Loss
Profit and Loss All figures in NOK 1,000 Q1 2017 Q1 2016 Total operating income 1 421 071 1 299 397 EBITDA 178 399 252 345 Depreciation and amortisation -46 907 -37 962 EBIT before biomass adj 131 492 214 382 Fair value adj biological assets -196 209 79 497 EBIT after biomass adj. -64 717 293 879 Sh
Slide 14: Net financial items
Net financial items All figures in NOK 1,000 Q1 2017 Q1 2016 Changes in fair value from hedging instruments 3 037 -545 Net financial interest -11 050 -23 917 Net currency gain (losses) 3 300 -28 600 Net other financial expenses/-income 175 -699 Net financial items -4 538 -53 761 griegseafood.com 14
Slide 15: Investments
Investments (MNOK) Maintenance level • Maintenance MNOK 200. • Expansion of smolt plant Rogaland MNOK 100. • Expansion of smolt plant Finnmark MNOK 100. • New sites MNOK 200. griegseafood.com 15
Slide 16: Cash Flow
Cash Flow (TNOK) Q1 2017 Q1 2016 Cash - opening balance 503 613 392 020 EBITDA 178 399 252 345 Inventory, trade payables and trade receivables -117 904 -152 675 Other adjustments -25 883 9 535 Cash flow from operations 34 612 109 205 Capital expenditure (fixed assets) -116 136 -23 149 Investments in
Slide 17: Net Interest Bearing Debt/EBITDA
Net Interest Bearing Debt/EBITDA NIBD (TNOK) NIBD/EBITDA (excl. factoring) (according to covenants) griegseafood.com 17
Slide 18: NIBD
NIBD MNOK Q1 2017 Q1 2016 Term Loan 1 053 1 143 Revolving Credit 0 400 Leasing 300 312 Other interest bearing debt 48 6 Cash - closing balance -225 -369 NIBD excl. factoring 1 176 1 492 Factoring 363 319 griegseafood.com 18
Slide 19: Balance sheet - Assets
Balance sheet - Assets (TNOK) ASSETS 31.03.17 31.03.16 Goodw ill 108 688 109 669 Licenses 1 062 179 1 076 927 Other intangible assets 16 983 17 577 Property, plant and equipment 1 584 364 1 477 482 Investments in associated and joint venture companies 0 14 748 Other non-current assets 10 482 5 193 T
Slide 20: Balance sheet – Equity and liabilities
Balance sheet – Equity and liabilities (TNOK) EQUITY AND LIABILITIES 31.03.17 31.03.16 Share capital 446 648 446 648 Treasury Shares -5 000 -5 000 Retained earnings and other equity 2 704 623 1 956 067 Total equity 3 146 271 2 397 715 Deferred tax liabilities 664 339 578 877 Pension- and other oblig
Slide 21: Key financial indicators
Key financial indicators Q1 2017 Q1 2016 EBITDA-margin before adj FV 13 % 19 % EBIT-margin before adj FV 9% 16 % NIBD/EBITDA before adj FV 1,0 3,9 ROCE before adj FV 14 % 24 % Equity ratio 49 % 41 % Equity ratio excluding OQ (bank covenants): 54% griegseafood.com 21
Slide 22: Outlook
OUTLOOK griegseafood.com 22
Slide 23: Harvest estimate
Harvest estimate Guiding 2017 Rogaland Finnmark BC Shetland GSF Group (1,000 tons gw e) Q1 4,4 1,6 1,2 1,3 8,6 Growth % 16 % -74 % -7 % -42 % -37 % Q2 6,8 5,2 3,1 2,9 18,0 Growth % 5% 167 % -38 % 0% 11 % Q3-Q4 8,8 18,1 4,7 11,9 43,4 Growth % 8% 31 % 5% 41 % 25 % Total 20,0 25,0 9,0 16,0 70,0 Growth
Slide 24: Supply outlook
Supply outlook Global supply growth farmed salmon (YoY): Low expected global supply growth 2017: 3% • Norway • 2016: -5% • 2017: 2% (1,075’ MT) • Chile • 2016: -16% • 2017: +4% (475’ MT) • North America • 2016: +6% NASDAQ (Norway) price development : • 2017: -4% (145’ MT) • UK • 2016: -5% • 2017: +8
Slide 25: Outlook summary/actions GSF
Outlook summary/actions GSF • Strong market expected ahead. • Cost level down to the industry average, or lower. – Rogaland in line. – Finnmark to increase volume, smolt input moving forward as planned. – BC to increase volume, stable smolt production. – Shetland, new 18 months generation lowering c
Slide 26: Thank you !
Thank you ! griegseafood.com 26
Slide 27: Appendix
APPENDIX griegseafood.com 27
Slide 28: Share information
Share information − Number of shares • 111.7 million (after full conversion of bonds in August 2009). − Last issues: Q2 2009 • MNOK 139 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% c
Slide 29: Shareholders
Shareholders No. shares % GRIEG HOLDINGS AS 55 801 409 49,97 % OM HOLDING AS 3 350 000 3,00 % YSTHOLMEN AS 2 928 197 2,62 % FOLKETRYGDFONDET 2 905 000 2,60 % VERDIPAPIRFONDET PARETO INVESTMENT 1 960 952 1,76 % EUROCLEAR BANK S.A/N.V 1 581 439 1,42 % STATE STREET BANK AND TRUST COMP 1 338 980 1,20 %
Slide 30: Profit and Loss
Profit and Loss All figures in NOK 1,000 Q1 2017 Q1 2016 Total operating incom e 1 421 071 1 299 397 Share of profit from joint venture 0 -275 Change in inventories 0 0 Raw materials and consumables used -793 420 -715 211 Salaries and personnel expenses -118 530 -123 024 Other operating expenses -33