Leroy Seafood Group Asa · OSL:LSG
Leroy Seafood Group Asa — Lerøy Seafood Group — Q3 2023 Earnings Presentation
33 slides from Leroy Seafood Group Asa's earnings presentation, Nov 15, 2023
Slide 1: Lerøy Seafood Group ASA Q3 2023
Lergy Seafood Group ASA Q3 2023 HE Henning Beltestad Sjur Malm CEO CFO 15 November 2023
Slide 2: Creating the world's most efficient and sustainable value chain for seafood
LEROY Creating the world’s most efficient and sustainable value chain for seafood INTEGRATED VALUE CHAIN We carel REDFISH 7 oo = : WHITEFISH fam % Se WILD CATCH PROcEssING vap
Slide 3: L SG Farming & VAP, S&D VAP, S&D
L SG Farming & VAP, S&D VAP, S&D L SG Wild Catch Farming
Slide 4: Top spot on Coller FAIRR sustainability ranking among producers
Top 3 spot on Coller FAIRR sustainability ranking among 60 producers The Coller FAIRR Protein Producer Index is a detailed sustainability assessment of the largest listed protein producers worldwide and includes producers of meat, dairy and farmed fish. The sustainability assessment includes animal
Slide 5: Leroy is on track towards targets on climate emissions, CO2
LEROY Leroy is on track towards targets on climate emissions, CO2 In PwC annual review of Norwegian companies, Leray is said to be one of only nine large companies who fulfill the requirements to become a climate winner * This is the second year Lera@y is on this exclusive list Category 1: Climate w
Slide 6: We are working on reducing our environmental impact in daily operations
LEROY We are working on reducing our environmental impact in daily operations - across our value chain... Smolt Production Water use and © fish density / survival rate Emissions from liquid oxygen Emissions from electricity © Land use Feed Production Emissions from transport Biological diversity aff
Slide 7: Highlights of the quarter
LEROY Highlights of the quarter Operational EBIT* (NOKm) Record revenue. Earnings impacted by previously announced ISA outbreaks By Ceerational EBIT* (NOKm) 989 Operational EBIT of NOK 12,4/kg (all inclusive) vs NOK 14,3/kg Q3/22 950 927 agg 927 833822 Challenging biology late early Q4 in farming se
Slide 8: Segments
LEROY Segments Farming Wild catch VAP, Sales & Distribution Bes oh P|
Slide 9: Farming highlights this quarter
Farming highlights this quarter • • • • • • •
Slide 10: The value chain consists of farming and VAPS&D
• • • • • • The value chain consists of farming and VAPS&D
Slide 11: The value chain consists of farming and VAPS&D
• • • • • • • • • The value chain consists of farming and VAPS&D
Slide 12: The value chain consists of farming and VAPS&D
• • • • • • • • • The value chain consists of farming and VAPS&D
Slide 13: Norskott Havbruk (50% owned) results and operational EBIT per kg
100% basis, inNOKm Q3 2023 Q3 2022 YTD 2023 YTD 2022 0, No ott Havbruk (50% owned) Revenues 867 972 2.065 2.495 Operational EBIT “121 47 -257 342 Harvested volume (GWT) 8 818 11290 20 313 28 619 Biological challenges impacting harvest volume, Operational EBIT/kg as 42 425 12,0 average harvest weight
Slide 14: Farming volumes 2019-2025E
Farming volumes 2019 2020 2021 2022 2023E 2024E 2025E Leray Aurora AS 32,8 35,0 44,0 401 43,0 47,0 50,0 Leroy Midt AS 64,8 679 72,6 68,8 61,0 70,0 80,0 Leray Sjgtroll 60,6 68,0 70,0 65,7 53,0 58,0 75,0 Total Norway 158,2 170,9 186,6 174,6 157,0 175,0 205,0 Scottish Seafarms (Leray's 50% share) 129 1
Slide 15: Wild catch highlights this quarter
Wild catch highlights this quarter • • •
Slide 16: Catch volumes wild catch
Remaining Remaining Catch volumes wild catch Q3-23 Q3-22 YTD 2023 YTD 2022 quota 2023 quota 2022 Cod BSE) 4) 14,5 17,9 5,2 61 Saithe 45 2,8 12,3 10,2 69 75 Haddock 0,2 0,2 98 9,0 3,0 17 Shrimps 44 3, 9,0 93 Other 19 4,6 179 12,2 Total 14,4 14,9 63,4 58,6 15,1 15,3
Slide 17: VAP, S&D highlights this quarter
VAP, S&D highlights this quarter • • • •
Slide 18: Sales and processing operations in countries
LEROY Sales and processing operations in 14 countries my © leroy ww the world @ SWEDEN @ VAP, sales and distribution uk@ _ @ DENMARK @ NETHERLANDS @ FRANCE SPAIN@ — @ ITALY NORTH AMERICA @ ETT @ TURKEY @ JAPAN @cHINA
Slide 19: 1. Highlights
1. Highlights 2. Key financial highlights 3. Outlook
Slide 20: Highlights this quarter: Profit and loss statement
LEROY Profit and Loss statement (NOKm) Q32023 Q32022. 4% Revenue and other income 8001 7441 8% Highlights flis. quarfer Operational EBITDA** 1008 1175 -14% Depreciation & amortisation 377 342 Operational EBIT** 631 833 -24% EPS (NOK)* 0,17 0,99 -83% * High activity. Earnings much impacted by harvest
Slide 21: Highlights this quarter
Highlights this quarter • • • • •
Slide 22: Change in net interest-bearing debt this quarter
Change in net interest-bearing debt this quarter NOKm 5992 6 000 5.470 4000 2000 329 6 227 8 5 ) 185 -969 -2000 Opening Q3 2023 EBITDA Change working Capex Dividends paid Net Payable tax Other items Closing Q3 2023 capital finance+lFRS 16 effects* “Includes instalments on lease liabilities to others
Slide 23: Resource tax proposal
LEROY Resource tax proposal Adopted by the Norwegian Storting 31 May 2023 Farming segment Increase tax rate in the "sea phase” by 25% Efficient tax rate dependent on share of profit and investments in the ee . oo > "sea pha Not possible to make comments on fixed future tax rate in char Resource tax
Slide 24: 1. Highlights
1. Highlights 2. Key financial highlights 3. Outlook
Slide 25: Atlantic Salmon - Supply
LEROY Atlantic Salmon - Supply in tons WFE Year 2018 2019 2020 2021 2022 2023 2024 Region Volume Change | Volume Change Volume (Change|Volume |Change|Volume Change|Volume (Change Volume Change Europe 1505100, 0,7%) 1650500 9,7% 1675900 1,5%/|1895500) 13,1% 1839100 -3,0% 1806700 -1,8% 1927500 67% Nor
Slide 26: Atlantic Salmon Consumption
NOK/KG (NSI 3-6): LE ROY 79.73 11.69% (71.39) Atlantic Salmon Consumption Q3 Market 2020 2021 2022 2023 Growth Growth % EU 329198 346279 356674 340112 -16 562 46% Others 181245 201077 215535 208006 -7529 -3,5 % USA 145098 156549 165181 167 318 2137 1.3% Russia 23 824 18 494 15 318 19 208 3 890 25,4
Slide 27: Spot prices, fresh Atlantic salmon
AUD ai 29 34 40 27 36 47 #41 58 65 60 61 68 52 80 104 a2 36 41 38 28 42 40 38 64 67 68 62 58 63 105 105 a3 3239 27 26 38 35 41 60 56 55 49 47 55 69 77 Spot Prices, Fresh Atlantic Salmon nan 3 2 32 37 1 4 41 a2 so 8 Sr 82 7 73 89 - Cross Section, FCA Oslo, Superior Quality as of week 44-2023 — Weekly
Slide 28: Outlook
LEROY Outlook Challenging biology late Q3/23 and early Q4/23 Significant measures implemented particularly within: - Smolt quality: Improved genetic selection, improving procedures at hatchery, lower temperatures in early stages - New farming technology - Process improvement/Implementing LerayWay We
Slide 29: Timeline
Timeline Lerøy Sjøtroll Lerøy Midt
Slide 30: Creating the world's most efficient and sustainable value chain for seafood
LEROY Creating the world’s most efficient and sustainable value chain for seafood INTEGRATED VALUE CHAIN We carel REDFISH 7 oo = : WHITEFISH fam % Se WILD CATCH PROcEssING vap
Slide 31: Q&A
Q&A
Slide 32: Disclaimer
LEROY Disclaimer This presentation has been produced by Leray Seafood Group ASA (the "Company") exclusively for information purposes. It must be read in conjunction with the recent financial information and the disclosures therein. By attending this presentation you acknowledge that you will be sole
Slide 33: Slide 33