Leroy Seafood Group Asa · OSL:LSG
Leroy Seafood Group Asa — Q2 2024 Earnings Presentation
33 slides from Leroy Seafood Group Asa's earnings presentation, Aug 21, 2024
Slide 1: Leroy Seafood Group ASA Q2 2024
Lergy Seafood Group ASA Q2 2024 A Henning Beltestad Sjur Malm CEO CFO 21 August 2024
Slide 2: 1. Highlights
1. Highlights 2. Key financial highlights 3. Outlook
Slide 3: 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 4: Highlights of the quarter
LEROY Highlights of the quarter Operational EBIT of MNOK 906 (vs MNOK 950 Q2 23) Operational EBIT (NOKm) Strong biological development for Faming in Norway Operational Strong improvement in biology and earnings at Scottish Sea Farms EBIT (NOKm) 989 659 906 Continued positive development for the VAPS
Slide 5: Segments
LEROY Segments Farming Wild catch VAP, Sales & Distribution ER ” a a
Slide 6: Farming highlights this quarter
Farming highlights this quarter • • • • • •
Slide 7: The value chain consists of farming and VAPS&D
• • • • • The value chain consists of farming and VAPS&D
Slide 8: The value chain consists of farming and VAPS&D
• • • • • • • The value chain consists of farming and VAPS&D
Slide 9: The value chain consists of farming and VAPS&D
• • • • • • • The value chain consists of farming and VAPS&D
Slide 10: Scottish Sea Farms / Lerøy Sjøtroll Havbruk results
100% basis, inNOKm Q2 2024 Q2 2023 YTD 2024 YTD 2023 0, ott Havbruk (50% owned) Revenues 1414 692 2 262 1197 Operational EBIT 234 “144 372 “135 Harvested volume (GWT) 12.235 6 325 19 532 20 313 Operational EBIT/kg 191 -22,8 19,0 -67 Strong biological development in the quarter and next generations o
Slide 11: Farming volumes 2019-2024E and target
Farming volumes 2019 2020 2021 2022 2023 2024E Target Leray Aurora AS 32,8 35,0 440 401 43,1 47,0 50,0 Leray Midt AS 64,8 67,9 72,6 68,8 613 70,0 80,0 Leroy Sjgtroll 60,6 68,0 70,0 65,7 55,2 58,0 70,0 Total Norway 158,2 170,9 186,6 174,6 159,6 175,0 200,0 Scottish Seafarms (Leray's 50% share) 129 12
Slide 12: Wild catch highlights this quarter
Wild catch highlights this quarter • • • • • • •
Slide 13: Catch volumes wild catch and remaining quota
Remaining Remaining quota Catch volumes wild catch Q2-24 Q2-23 quota 2024 2023 Cod 1,5 3) 48 8,7 Saithe 2,6 2) 7,2 11,4 Haddock 0,5 23 0,6 1 Shrimps 47 4,6 Other 8,6 11,6 Total 17,8 23,7 12,6 21,1
Slide 14: Sales and processing operations in countries
LEROY Sales and processing operations in 14 countries NoRWAV@ _ @FINLAND luog wy fhe world @ SWEDEN @ VAP, sales and distribution uk@ _ @ DENMARK @ NETHERLANDS @ FRANCE SPAIN® @ ira NORTH AMERICA @ ETT beset et @ Aran @cHINA
Slide 15: VAP, S&D highlights this quarter
VAP, S&D highlights this quarter • • • • • •
Slide 16: 2. Key financial highlights
1. Highlights 2. Key financial highlights 3. Outlook
Slide 17: Profit and Loss statement
LEROY Profit and Loss statement (NOKm) Q2 2024 Q22023 4% Revenue and other income 7 649 7668 = -0% Highlight flis. quarter Operational EBITDA** 1300 1307. -1% Depreciation,amortisation, impairments 394 358 Operational EBIT** 906 950 -5% * * Healthy development in Farming and 7 2) ; EPS (NOK) On an V
Slide 18: Highlights this quarter
Highlights this quarter • • • • • •
Slide 19: Change in net interest-bearing debt this quarter
Change in net interest-bearing debt this quarter NOKm 8000 6761 6000 5538 4000 2000 1492 383 238 267 122 3 1282 -2000 Opening Q2 2024 EBITDA Change working Capex Dividends paid Net Payable tax Other items Closing Q2 2024 capital finance+lFRS 16 effects* “Includes instalments on lease liabilities to
Slide 20: Prioritizing investments that will improve biology and fish welfare
Prioritizing investments that will improve biology and fish welfare Capex (in NOKm) Mill NOK 2.000 1.650 1.500 1.458 1.460 35 Maintenance and smaller upgrades of around 345 414179 ~ NOK 1b! 1.000 aaR 178 . . sting significantly in r technology and Itegic 's in farming; NOK 350m in new s 500 NOK 200m
Slide 21: Employment
Employment direct employees in Norway jobs in total, (direct and indirect) billion
Slide 22: 3. Outlook
1. Highlights 2. Key financial highlights 3. Outlook
Slide 23: Making progress on strategic targets
G4 Making progress on strategic targets >50 © #1 1,25 bn NOK in revenue by 2030 EBIT/kg for farming and bn NOK in EBIT for VAP S&D by 2025 VAP S&D by 2025 ~ 30 bn NOK in 2023 643 MNOK in 2023 46% 200.000 © reduction in total GHG tonnes harvested in 2025 emissions by 2030 (Salmon and trout in Norway)
Slide 24: VAP S&D: Continued strong progress and promising outlook
VIP S10 Continued strong progress and promising outlook Operational EBIT target (NOKm) Short-term actions prin rol ~ ns, market p culture for continuous improve 402 Q223 Q224 2025 Target Rolling 12m Rolling 12m Long-term actions Consequence products in our own value chain logistics Sustainable LT In
Slide 25: Farming: Reaching 2025 harvest target through operational improvements
Farming Reaching 2025 harvest target through operational improvements Tonnes harvested salmon and trout 200 000 Operational efficiency through... 159 600 Smolt production Technology 2023 Targeted growth 2025 Target
Slide 26: Farming: Improvements in roe and smolt expected to yield results
Farming Improvements in roe and smolt expected to yield results from harvest in 2025 Improvements in farming Resulting in better performance Illustration of when different measures will impact results/harvest Improved genetics expected to contributing to higher growth rate in sea Genetics Process im
Slide 27: Farming: Strong biological performance
Farming Strong biological performance - 5 year low treatment frequency Net growth rate Mortality Average daily percentage, number of fish es ee =) Continued positive development in key biological drivers * Explained by improved roe, smolt, genetics and new technology Last 5Y* YTD Q2 24 Last 5Y* YTD
Slide 28: Farming – shielding technology
Farming – shielding technology • • • •
Slide 29: Farming – shielding technology
Farming – shielding technology • • • • • • • • • •
Slide 30: Outlook
LEROY Outlook - Strong biological development H1 2024 5 chavenging quota situation in 2024 - Increased demand for integrated, - Contracts share 2024 currently around 30% sustainable, value chain - Quotas for 2024 . . - Expect to see significant improvements Improved market share in some key from: -
Slide 31: 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 32: Q&A
Q&A
Slide 33: Slide 33