Grieg Seafood Asa · OSL:GSF
Grieg Seafood Asa — Grieg Seafood Asa Ord — Q2 2024 Earnings Presentation
33 slides from Grieg Seafood Asa's earnings presentation, Aug 21, 2024
Slide 1: Q2 2024
Q2 2024 21.08.2024 1
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) has been produced by Grieg Seafood ASA (“GSF”) exclusively for information purposes and may not be copied, distributed, further disseminated or relied upon for any purpose by any person without our prior written consent. This Presentation contains fo
Slide 3: Agenda
Agenda • HIGHLIGHTS • OPERATIONS • STRATEGY UPDATE • FINANCIALS • OUTLOOK AND SUMMARY • APPENDIX 21.08.2024 Grieg Seafood ASA - Q2 2024 3
Slide 4: Highlights
Highlights • Operational EBIT in the quarter of NOK -35 million (NOK 547 million), equivalent of NOK -2.3 per kg (24.2 per kg) • BC results significantly impacted by biological event, also adversely affecting Q3 with an expected negative Operational EBIT in BC in the range of NOK 230 and 250 million
Slide 5: Operations
OPERATIONS 21.08.2024 Grieg Seafood ASA - Q2 2024 5
Slide 6: GSF Rogaland
GSF Rogaland NOK million Q2 2024 Q1 2024 Q2 2023 YTD 2024 YTD 2023 Harvest volume (tonnes GWT) 2,771 9,426 11,536 12,196 19,038 • Underlying production good, with post-smolt contributing to Revenues 236.3 971.0 1,093.8 1,207.2 1,819.8 good biology and high average weight Operational EBIT 55.0 371.1
Slide 7: GSF Finnmark
GSF Finnmark NOK million Q2 2024 Q1 2024 Q2 2023 YTD 2024 YTD 2023 Harvest volume (tonnes GWT) 3,886 5,663 5,573 9,549 13,429 • Spiro*-impacted fish fully harvested in July 2024 Revenues 292.8 450.1 482.5 742.9 1,133.8 • Results impacted by low harvest weight on generations with Operational EBIT -12
Slide 8: GSF BC
NOK million Q2 2024 Q1 2024 Q2 2023 YTD 2024 YTD 2023 GSF BC Harvest volume (tonnes GWT) 8,615 666 5,537 9,282 5,537 • Results significantly impacted event of lowest level of DO Revenues 738.7 50.7 488.7 789.4 488.7 (dissolved oxygen) in decades, impacting EBIT through: Operational EBIT -41.8 0.2 -1
Slide 9: GSF Newfoundland
GSF Newfoundland • Continued good seawater production with high NOK million Q2 2024 Q1 2024 Q2 2023 YTD 2024 YTD 2023 survival rate Harvest volume (tonnes GWT) — 5,320 — 5,320 — • Harvest expected to commence in autumn 2024 Revenues -4.6 451.9 — 447.3 — • Harvest target for 2024 remains at 11,000 to
Slide 10: Strategy Update
STRATEGY UPDATE 21.08.2024 Grieg Seafood ASA - Q2 2024 10
Slide 11: Post-smolt strategy update
Post-smolt strategy update • Capital-intensive post-smolt construction initiatives ongoing and on track in Rogaland, Finnmark and Newfoundland Smolt and post-smolt initatives • Post-smolt capacity a keystone in harvest growth in the Group 20,000 Annual capacity (tonnes) ◦ Reduces exposure to biologi
Slide 12: Downstream strategy update
Downstream strategy update • Gardermoen VAP, a state-of-the-art processing plant at Oslo Airport Gardermoen • Part of downstream strategy to increase share of value creation ◦ Improve utilization of our production ◦ Increased flexibility in farming operations • NOK 130 million investment • 10 000 to
Slide 13: Financials
FINANCIALS 21.08.2024 Grieg Seafood ASA - Q2 2024 13
Slide 14: Profit & loss
Q2 Q1 Q2 Profit & loss (NOK million) YTD 2024 YTD 2023 2024 2024 2023 Profit & loss Harvest volume tonnes GWT Sales revenues 15,272 1,520.1 21,075 2,289.8 22,645 2,372.4 36,347 3,809.9 38,003 3,918.2 • Operational EBIT of NOK -35 million (-2.3 per kg) Operational EBIT* -34.8 291.8 547.3 257.0 932.8
Slide 15: Net interest-bearing debt
Net interest-bearing debt • The Group had at 30 June 2024 a net interest-bearing debt Movements in net interest-bearing debt ex. IFRS 16 ex. the effect of IFRS 16 of NOK 4,298 million (NOK million) ◦ Payment of dividend and investment in assets and biomass driving △ 665 the increased leverage throug
Slide 16: Financial position
Financial position Capital structure (NOK million) 30.06.2024 Green bond loan 1,393 Term loan 1,837 • Green bond loan of NOK 1,393 million Revolving credit facility 960 Lease liabilities (incl IFRS 16) 1,466 • 73% of gross interest-bearing liabilities green or Other interest-bearing liabilities 82 s
Slide 17: Investments
Investments • Gross investments* in Q2 2024 of NOK 307 million (YTD NOK 592 million) ◦ Growth investments Q2 2024 of NOK 250 million (YTD 442 million) ◦ Maintenance investments Q2 2024 of NOK 57 million (YTD 149 million) • Planned 2024 CapEx of ~ NOK 1,400 million ◦ Maintenance investments ~ NOK 300
Slide 18: Financials summary
Financials summary • Equity ratio of 42% as at 30 June 2024 - 45% according to financial covenant • Extension of bank facility of NOK 1 000 million signed in Q2 2024 ◦ Free liquidity per 30 June 2024 of NOK 1,606 million • Deliver shareholder value - over time, target 30-40% of the Group's net profi
Slide 19: Outlook and Summary
OUTLOOK AND SUMMARY 21.08.2024 Grieg Seafood ASA - Q2 2024 19
Slide 20: Outlook
Outlook Guiding Sales & Market Rogaland Finnmark BC NL GSF Group (tonnes GWT) Q1 2024 (actuals) 9,400 5,700 700 5,300 21,100 • Expect continued robust salmon market due to healthy demand and stable Q2 2024 (actuals) 2,800 3,900 8,600 — 15,300 supply Q3 2024 8,500 5,000 3,200 — 16,700 • Estimated con
Slide 21: Summary
Summary • BC results impacted by biological event, expected a negative Q3 2024 Operational EBIT for BC in the range of NOK 230-250 million • Challenging quarter for Finnmark, however fully harvested Spiro-exposed fish in July 2024 • Underlying production in Norway improved during the quarter and int
Slide 22: Upcoming financial results Q3 2024
UPCOMING FINANCIAL RESULTS Q3 2024: 7 November 2024 The Company reserves the right to make amendments to the financial calendar 21.08.2024 Grieg Seafood ASA - Q2 2024 22
Slide 23: Appendix Q2 2024
APPENDIX Q2 2024 21.08.2024 Grieg Seafood ASA - Q2 2024 23
Slide 24: Our approach to sustainable business
Our approach to sustainable business Our pillars HEALTHY SUSTAINABLE PROFIT & LOCAL OCEAN FOOD INNOVATION PEOPLE COMMUNITIES Topics • Fish health and welfare • Safe and healthy food • Profitable operations • Human rights • Local value creation • Protecting wild salmon • Sustainable feed • Our market
Slide 25: Spot market price development
Spot market price development NASDAQ SALMON INDEX (NOK/KG) 140 130 120 110 100 90 80 70 60 50 40 30 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 2020 2021 2022 2023 2024 21.08.2024 Grieg Seafood ASA - Q2 2024 25
Slide 26: Profit & loss
GRIEG SEAFOOD GROUP NOK 1 000 Q2 2024 Q2 2023 YTD 2024 YTD 2023 Sales revenues 1,520,108 2,372,444 3,809,887 3,918,202 Other income 7,228 15,035 12,530 39,910 Share of profit from associates 8,267 -3,335 6,666 1,004 Raw materials and consumables used -644,023 -953,582 -1,705,588 -1,368,788 Salaries
Slide 27: Comprehensive income
GRIEG SEAFOOD GROUP NOK 1 000 Q2 2024 Q2 2023 YTD 2024 YTD 2023 Net profit for the period -700,796 -562,781 -1,031,489 -135,562 Comprehensive Currency effect on investment in subsidiaries Currency effect on loans to subsidiaries Tax effect -19,316 -12,520 2,754 76,655 28,188 -6,201 12,902 6,667 -1,4
Slide 28: Financial position - assets
GRIEG SEAFOOD GROUP NOK 1 000 30.06.2024 30.06.2023 31.12.2023 Goodwill 735,454 767,359 727,111 Licenses incl. warranty licenses 1,490,665 1,547,669 1,489,798 Other intangible assets 13,129 14,357 13,275 Property, plant and equipment incl. right-of-use assets 5,561,071 4,745,845 5,095,401 Indemnific
Slide 29: Financial position - equity and liabilities
GRIEG SEAFOOD GROUP NOK 1 000 30.06.2024 30.06.2023 31.12.2023 EQUITY AND LIABILITIES Share capital 453,788 453,788 453,788 Financial Treasury shares -5,255 -5,685 -5,255 Contingent consideration 701,535 701,535 701,535 Retained earnings and other equity 4,309,482 4,909,496 5,519,102 position Total
Slide 30: Cash flow
GRIEG SEAFOOD GROUP NOK 1 000 Q2 2024 Q2 2023 YTD 2024 YTD 2023 EBIT (Earnings before interest and taxes) -597,609 -96,375 -917,197 428,412 Depreciation, amortization and write-down 163,110 138,201 314,158 259,966 Gain/loss on sale of property, plant and equipment -265 -2,600 -413 -475 Share of prof
Slide 31: Cash flow
Cash flow Changes in cash and cash equivalents NOK million • Net cash flow from operations NOK -76 million • Operational EBITDA* impacted cash flow positively with 418 NOK 128 million (NOK 686 million in Q2 2023) 128 366 • Changes in working capital of NOK -131 million, incl. biomass release of NOK
Slide 32: Share information
Share information THE 20 LARGEST SHAREHOLDERS IN GRIEG SEAFOOD ASA AT NO. OF SHARE- 30.06.2024 SHARES HOLDING Grieg Aqua AS 56,914,355 50.17% Number of shares • 113,447,042 shares incl. treasury shares OM Holding AS 5,160,982 4.55% Ystholmen Felles AS 1,923,197 1.70% Last issues • Q2 2020 - NOK 7 mi
Slide 33: Key metrics and long term targets
Key metrics Long term targets FY 2021 FY 2022 FY 2023 YTD 2024 Harvest volume 120 000-135 000 tonnes 75,601 tonnes 84,697 tonnes 72,015 tonnes 36,347 tonnes NOK 44.1/kg NOK 47.7/kg NOK 62.3/kg NOK 69.9/kg Cost Cost leader in our operating regions CAD 8.8/kg CAD 9.1/kg CAD 11.3/kg CAD 11.9/kg 1 NIBD/
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