Grieg Seafood ASA · OSL:GSF
Grieg Seafood ASA — Q1 2015 Earnings Presentation
32 slides from Grieg Seafood ASA's earnings presentation, May 11, 2015
Slide 1: Grieg Seafood ASA Q1 2015
Grieg Seafood ASA Q1 2015 Per Grieg jr. | Chairman of the board Atle Harald Sandtorv | CFO/Acting CEO 11 May 2015 griegseafood.com 1
Slide 2: Agenda
Agenda • Highlights • Business Units (Regions) • Financials • Outlook griegseafood.com 2
Slide 3: Highlights Q1 2015
HIGHLIGHTS Q1 2015 griegseafood.com 3
Slide 4: Highlights Q1 2015
Highlights Q1 2015 • EBIT before fair value adjustment of biomass was MNOK 70 in Q1 (MNOK 143 in 2014). • Production has been good throughout the period, with volume indication for 2015 maintained at 72 000 tons. Some of the expected Q1 volume has been moved to Q2. • High costs on harvested fish in
Slide 5: Financial highlights Q1 2015
Financial highlights Q1 2015 Q1 2015 Q1 2014 Total operating income (TNOK) 1 033 616 1 026 275 EBITDA (TNOK) 108 047 175 687 EBIT before fair value adj. (TNOK) 70 042 143 246 EBIT / kg (NOK) 5,35 10,94 Harvest volume (tons gwe) 13 081 13 095 • EBIT/kg excl. non-controlling interest OQ: NOK 4.9. • 0.
Slide 6: Business Units (Regions)
BUSINESS UNITS (REGIONS) griegseafood.com 6
Slide 7: Business units performance – Q1 2015
Business units performance – Q1 2015 EBIT before biomass adjustment/KG gwt 5,82 9,52 4,71 15,94 7,25 -5,44 3,28 10,08 Rogaland Finnmark BC Scotland Q1 15 Q1 14 Q1 15 Q1 14 Q1 15 Q1 14 Q1 15 Q1 14 Harvest (gwt) 2 761 2 138 5 042 5 775 1 840 1 053 3 438 4 129 Sales MNOK 121 110 192 256 74 59 195 199 g
Slide 8: GSF Rogaland
GSF Rogaland • Sea production was stable Q1 2015 Q1 2014 throughout Q1. Harvest (gwt) 2 761 2 138 Sales revenues 120 730 110 480 • Harvest from PD locations and EBIT 16 067 20 347 with large treatment costs EBIT/kg 5,82 9,52 resulting in high Q1 2015 cost. of which Markets NOK/kg 1,02 0,40 • Cost ex
Slide 9: GSF Finnmark
GSF Finnmark • Sea production was stable throughout Q1 2015 Q1 2014 Q1. Harvest (gwt) 5 042 5 775 Sales revenues 192 320 255 960 • The EBIT of NOK 4.7 per kilo includes EBIT 23 769 92 080 profit of NOK 0.9 per kilo related to sale EBIT/kg 4,71 15,94 of a well boat. of which Markets NOK/kg 0,35 0,05
Slide 10: GSF BC (Canada)
GSF BC (Canada) • Ocean Quality was established in Q1 2015 Q1 2014 North America in Q1. The contribution from sales was NOK 1 Harvest (gwt) 1 840 1 053 per kilo in Q1 2015. Sales revenues 74 033 58 562 EBIT 13 342 -5 724 • The biological situation was EBIT/kg 7,25 -5,44 favourable in 2014 and the of
Slide 11: GSF Shetland
GSF Shetland • Ocean Quality continues to show Q1 2015 Q1 2014 good margins. Contribution from sales Harvest (gwt) 3 438 4 129 NOK 2 per kg in Q1. Sales revenues 194 903 198 682 • Sea and smolt production was stable EBIT 11 285 41 618 throughout Q1 2015. EBIT/kg 3,28 10,08 • The fish harvested in Q1
Slide 12: Ocean Quality (GSF 60%, Bremnes 40%)
Ocean Quality (GSF 60%, Bremnes 40%) North America: • Total margin moving up in Norway. • High margin in UK. • Positive margin in North America in the first quarter with a new sales organization. Norway: UK: griegseafood.com 12
Slide 13: Improvements and targets
Improvements and targets • Targets • Prosesses • Be the best farmer in our regions on • “Keep the fish alive” cost • Focus on planning, execution and • Mortality below 14% on generation quality (93%yearly survival) • Organize for best practice • Increase MAB utilization to 1200 t gw per year (Norway
Slide 14: Financials
Financials griegseafood.com 14
Slide 15: Profit and Loss
Profit and Loss All figures in NOK 1,000 Q1 2015 Q1 2014 Total operating income 1 033 616 1 026 275 EBITDA 108 047 175 687 Depreciation and amortisation -38 006 -32 441 EBIT before biomass adj 70 042 143 246 Fair value adj biological assets -112 793 -50 983 EBIT after biomass adj. -42 751 92 263 Sha
Slide 16: Net financial
Net financial All figures in NOK 1,000 Q1 2015 Q1 2014 Changes in fair value from hedging instruments -5 604 1 496 Net financial interest -22 614 -21 043 Net currency gain (losses) 3 544 -1 874 Dividends 0 0 Net other financial expenses/-income -688 -755 Net financial item -25 361 -22 177 griegseafo
Slide 17: Investments
Investments Capex Maintenance level * * Green licenses Finnmark included in 2014 figures – 40 MNOK griegseafood.com 17
Slide 18: Cash Flow
Cash Flow Q1 2015 Q1 2014 Cash - opening balance 181 498 182 258 EBITDA 108 047 175 687 Inventory, trade payables and trade receivables -4 107 -50 766 Other adjustments 15 530 -25 885 Cash flow from operations 119 470 99 036 Capital expenditure (fixed assets) -119 779 -40 711 Investments in associat
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 Q1 2015 Q1 2014 Term Loan 833 530 Revolving Credit 275 500 Bond 400 400 Leasing 309 218 Other interest bearing debt 12 5 Cash - closing balance -201 -286 NIBD excl factoring 1 627 1 367 Factoring 155 206 griegseafood.com 20
Slide 21: Balance sheet 1
Balance sheet 1 ASSETS 31.03.15 31.03.14 Goodw ill 108 997 107 155 Licenses 1 073 923 987 496 Other intangible assets 13 974 5 185 Property, plant and equipment 1 475 818 1 202 010 Investments in associtated and joint venture companies 29 078 31 569 Other non-current assets 2 828 1 634 Total non-cur
Slide 22: Balance sheet 2
Balance sheet 2 EQUITY AND LIABILITIES 31.03.15 31.03.14 Share capital 446 648 446 648 Treasury Shares -5 000 -5 000 Retained earnings and other equity 1 758 206 1 595 540 Total equity 2 199 854 2 037 188 Deferred tax liabilities 545 237 566 245 Pension- and other obligations 1 612 788 Subordinated
Slide 23: Key financial indicators
Key financial indicators Q1 2015 Q1 2014 EBITDA-margin before adj biomass 10 % 17 % EBIT-margin before adj biomass 7% 14 % NIBD/EBITDA before adj biomass 4,0 2,4 ROCE before adj biomass 7% 18 % Equity ratio 41 % 42 % 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 6,4 1,1 5,5 3,7 16,7 Growth % 18 % -86 % 225 % -5 % -12 % Q3-Q4 11,4 15,8 5,7 9,4 42,3 Growth % 117 % 24 % 62 % -16 % 29 % Total 20,5 22,0 13,0 16,5 72
Slide 26: Supply outlook
Supply outlook Global supply growth farmed salmon (YoY): • Global supply growth moving down, 2015 vs 2014 expected to be 3% . • Norway - stable growth rate: • 2014: +5% • 2015: +5% (1,135’ MT) • Chile – form positive to negative growth rate: • 2014: +25% • 2015: -3% (508’ MT) • Canada – from negativ
Slide 27: Outlook summary
Outlook summary • Limited supply growth is expected to result in a strong market in the period ahead, but with the possibility of regional variations in the short term. • Harvest volume guiding 2015 of 72,000 MT. Increasing 7,000 MT vs 2014. Growth expected to continue in 2016. • The harvested volum
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 22 260 036 19,94 % 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. 1 295 901 1,16 % GRI
Slide 32: Profit and Loss
Profit and Loss All figures in NOK 1,000 Q1 2015 Q1 2014 Total operating incom e 1 033 616 1 026 275 Share of profit from joint venture 5 810 1 766 Change in inventories 92 974 12 062 Raw materials and consumables used -690 814 -621 629 Salaries and personnel expenses -100 452 -80 343 Other operatin