Leroy Seafood Group Asa · OSL:LSG

Leroy Seafood Group Asa — Lerøy Seafood Group — Q1 2023 Earnings Presentation

32 slides from Leroy Seafood Group Asa's earnings presentation, May 16, 2023

  1. Slide 1: Lerøy Seafood Group ASA First quarter 2023 results

    Lerøy Sea food Group ASA First quarter 2023 results Henning Sjur Ma lm Beltesta d CEO CFO 16 May 2023

  2. Slide 2: Creating the world's most efficient and sustainable value chain for seafood

    Creating the world’s most efficient and sustainable value chain for seafood

  3. Slide 3: Targets for 2025 and beyond

    Targets for 2025 and beyond L SG Farming & VAP, S&D VAP, S&D >50 #1 1.25 bn NOK in revenue by 2030 bn NOK in EBIT for EBIT/kg for farming and VAP S&D by 2025 VAP S&D by 2025 L SG Wild Catch Farming 46% 500 205,000 reduction in total GHG mill NOK in EBIT for Wild tonnes harvested in 2025 emissions by

  4. Slide 4: Highlights of the quarter

    Highlights of the quarter • Record revenue for a first quarter and strong earnings Opera tiona l EBIT* (NOKm) • Operational EBIT of NOK 26,6/kg (all inclusive) Operational 989 EBIT* (NOKm) 927 927 889 833 822 • Farming volumes impacted by a challenging biological situation in H2/22. Expected harvest

  5. Slide 5: Segments

    SEGMENTS FARMING WILD CATCH VAP, SALES AND DISTRIBUTION

  6. Slide 6: Farming highlights this quarter

    Opera tiona l EBIT Fa rming Farming highlights this quarter 970 813 797 722 742 633 Op.EBIT (NOKm) 457 • Low harvest volume, with price realisation well below spot 403 prices driven by 18% contract share, impact from winter wounds and not optimal harvest profile Op. EBIT/kg (NOK) 11.0 7.9 14.1 19.7

  7. Slide 7: Lerøy Aurora

    Lerøy Aurora Q1 2023 Q1 2022 2022 2021 Revenue (NOKm) 515 368 2 798 2 541 Operational EBIT (NOKm) 136 94 740 445 Lerøy Aurora Harvested volume (GWT) 5 698 4 887 40 109 43 963 Prod. cost (ex. prod. fee) 46,0 41,8 Harvest weight (avg. in kg) 3,7 3,6 4,1 4,0 • Strong improvement in biological performan

  8. Slide 8: Lerøy Midt

    Lerøy Midt Q1 2023 Q1 2022 2022 2021 Revenue (NOKm) 862 846 5 018 4 141 Lerøy Midt Operational EBIT (NOKm) Harvested volume (GWT) 309 8 667 290 11 767 1 474 68 793 838 72 623 Prod. cost (ex. prod. fee) 47,0 41,5 Harvest weight (avg. in kg) 4,2 4,8 4,4 4,4 • Building biomass in the quarter, following

  9. Slide 9: Lerøy Sjøtroll

    Lerøy Sjøtroll Q1 2023 Q1 2022 2022 2021 Revenue 1 253 1 056 4 693 3 913 Lerøy Sjøtroll Operational EBIT (NOKm) Harvested volume (GWT) 298 14 237 248 15 403 928 65 727 484 70 049 Prod. cost (ex. prod. fee) 55,9 47,8 Harvest weight (avg. in kg) 3,7 4,1 4,0 4,2 • Still impacted by challenging biologic

  10. Slide 10: Norskott Havbruk (50% owned)

    100% basis, in NOKm Q1 2023 Q1 2022 2022 2021 Norskott Havbruk (50% owned ) Revenues 506 639 3 188 2 307 Operational EBIT* 9 105 214 244 Harvested volume (GWT) 5 170 7 840 35 936 32 350 Operational EBIT*/kg 1,7 13,4 6,0 7,6 NIBD 2 391 2 099 2 037 2 234 • Challenging biology in H2/22 gives low harves

  11. Slide 11: Farming volumes (1000' GWT)

    Farming volumes (1000’ GWT) Farming volumes 2019 2020 2021 2022 2023E 2024E 2025E Lerøy Aurora AS 32,8 35,0 44,0 40,1 47,0 48,0 50,0 Lerøy Midt AS 64,8 67,9 72,6 68,8 64,0 75,0 80,0 Lerøy Sjøtroll 60,6 68,0 70,0 65,7 64,0 72,0 75,0 Total Norway 158,2 170,9 186,6 174,6 175,0 195,0 205,0 Scottish Seaf

  12. Slide 12: Wild catch highlights this quarter

    Wild catch highlights this quarter Revenue a nd Opera tiona l EBIT* wild ca tch NOKm NOKm 1 200 Revenue 300 1 079 EBIT 1 031 1 031 1 000 868 800 200 600 686 663 • Strong quarter, with strong catch efficiency and positive 236 554 229 development in prices with the exception of haddock 400 100 200 93

  13. Slide 13: Wild catch quotas and catch volumes (GWT 1,000)

    W ild ca tch quota s and ca tch volumes (GW T 1,000) Remaining Remaining Catch volumes wild catch Q1-23 Q1-22 2022 2021 quota 2023 quota 2022 Cod 8,0 10,0 23,7 26,6 11,7 14,0 Saithe 5,7 3,5 12,9 13,2 11,4 11,6 Haddock 7,3 7,4 10,4 10,9 3,3 2,4 Shrimps 8,6 4,1 Other 4,3 4,1 16,2 16,8 Total 25,3 25,1

  14. Slide 14: VAP, S&D highlights this quarter

    VAP, S&D highlights this quarter Revenue a nd EBIT VAP, S&D (NOKm) Revenue EBIT-margin p.a. 8 000 4,0 % 7 113 6 962 6 122 6 309 1,9 % 6 409 6 100 5 122 5 121 0,9 % 4 000 -1,0 % 0,0 % • Higher prices, weakening NOK, are key drivers for significant y-o-y increase in revenue - -4,0 % • Significant impr

  15. Slide 15: Our sales and processing operations now span 14 countries

    Our sa les a nd processing opera tions now span 14 countries

  16. Slide 16: Highlights, Key financial highlights, Outlook

    1. Highlights 2. Key financial highlights 3. Outlook

  17. Slide 17: Highlights this quarter

    Profit and Loss statement (NOKm) Q1 2023 Q1 2022 ▲% Highlights this quarter Revenue and other income 6 971 5 524 26% Operational EBITDA** 1 317 1 173 12% Depreciation & amortisation 347 321 Operational EBIT** 989 889 11% EPS (NOK)* 1,04 1,02 2% • Strong revenue growth on higher prices Salmon and tro

  18. Slide 18: Highlights this quarter

    Ba lance sheet (NOKm) Intangible assets 31.03.2023 8 704 31.03.2022 8 560 ▲ 143 Highlights this quarter Right-of-use-assets 2 845 2 931 -87 Tangible fixed assets 7 636 7 279 357 Financial non-current assets 1 622 1 527 95 • Inflationary trends gives significant lift in Total non-current assets 20 80

  19. Slide 19: Change in net interest-bearing debt this quarter

    Change in net interest-bearing debt this quarter NOKm 5 000 4 346 4 302 4 000 3 000 2 000 1 000 618 392 169 67 1 25 0 -1 000 -1 317 -2 000 Opening Q1 2023 EBITDA Change working Capex Dividends paid Net Payable tax Other items Closing Q1 2023 capital finance+IFRS 16 effects* *Includes instalments on

  20. Slide 20: Significant positive impact

    Significant positive impact 3 600 employees in 60 municipalities Around NOK 2,0 bn in taxes 5 million daily meals and fees NOK 19 bn of purchased goods 5 100 suppliers in 300 municipalities Own activity Suppliers

  21. Slide 21: Resource tax proposal

    Resource tax proposal • Final voting in Norwegian Storting before summer • The proposal is to increase tax rate in the “sea phase” by 35%, a part of the process of making a salmon • Efficient tax rate dependent on share of profit and investments in the “sea phase” • The resource tax will reduce oper

  22. Slide 22: Highlights, Key financial highlights, Outlook

    1. Highlights 2. Key financial highlights 3. Outlook

  23. Slide 23: 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% 1843300 -2.8% 1880300 2.0% 2007300! 6.8% Norw

  24. Slide 24: Atlantic Salmon Consumption

    NOK/KG (NSI 3-6) Q1 pr w8: LE ROY 105.05 32.10% (79.52) Atlantic Salmon Consumption Q1 Market 2020 2021 2022 2023 Growth Growth % EU 246498 301914 278063 247604 -30,460 -11.0% Others 176562 197307 187049 189 773 2,724 15% USA 135807 155835 159540 159 389 -151 -0.1 % Russia 18 567 26 692 14 893 14171

  25. Slide 25: Spot Prices, Fresh Atlantic Salmon

    Quarter 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 LE ROY Qi a eer tee et ee ee eee |e Q2 36 441 #38 #28 #42 #40 38 #64 67 68 62 58 63 105 116 Q3 32. 39 27 26 «638 «©3506 (41 60 56 55 49 4755 CD. Spot Prices, Fresh Atlantic Salmons 3: ss 32 ta sto 58 59 57 83. 8779: 1

  26. Slide 26: Outlook strongly affected by resource taxation

    Outlook strongly a ffected by resource ta xa tion Farming Wild Catch VAP, S&D - Proposed “Resource tax” adds - Demand development varies across - Expect improved earnings 2023 vs 2022 uncertainty species - Resource tax adds uncertainty and - Expect harvest volume incl. share of - Likely development

  27. Slide 27: Creating the world's most efficient and sustainable value chain for seafood

    Creating the world’s most efficient and sustainable value chain for seafood

  28. Slide 28: Q&A

    Q&A

  29. Slide 29: Appendix

    Appendix

  30. Slide 30: Reconciliation between operational EBIT and EBIT before fair value adjustments

    Reconcilia tion between opera tiona l EBIT a nd EBIT before fa ir va lue a djustments RECONCILIATION Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Operational EBIT 888 768 927 390 832 838 822 071 989 278 EBIT before fair value adjustments 851 817 711 895 831 017 800 150 969 094 Difference 36 950 215 495 1

  31. Slide 31: Disclaimer

    Disclaimer This presentation has been produced by Lerøy 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 solely res

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