Leroy Seafood Group Asa · OSL:LSG
Leroy Seafood Group Asa — Q3 2024 Earnings Presentation
37 slides from Leroy Seafood Group Asa's earnings presentation, Nov 14, 2024
Slide 1: Leroy Seafood Group ASA Q3 2024
Lergy Seafood Group ASA Q3 2024 7 Wl Henning Beltestad Sjur Malm CEO CFO 14 November 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 REDFISH 7 oo = ROE FARMING. INTEGRATED VALUE CHAIN We carel WHITEFISH fam % Se WILD CATCH PROcEssING vap
Slide 4: Customers are seeking our value proposition
Customers are seeking Our value proposition
Slide 5: Highlights of the quarter
LEROY Highlights of the quarter Operational EBIT (NOKm) Weak price development for salmon and trout More challenging biology in Q3, but back on track in Q4 989 950 822 Strong improvement in biology and earnings at Scottish Sea Farms (SSF) 765 631 Record earnings in the VAPS&D (12 months rolling basi
Slide 6: Segments
LEROY Segments Farming Wild catch VAP, Sales & Distribution ER ” a a
Slide 7: Farming highlights this quarter
Farming highlights this quarter • • • • • • •
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: The value chain consists of farming and VAPS&D
• • • • • • • The value chain consists of farming and VAPS&D
Slide 11: Scottish Seafarms (50% owned) results
100% basis, in NOKm Q3 2024 Q3 2023 YTD 2024 YTD 2023 H 0, Scottish Seafarms (50% owned Revenues 1176 367 3438 2065 Operational EBIT 90 “121 462 -257 Harvested volume (GWT) 11881 8 818 31.413 20 313 Operational EBIT/kg 76 137 147 “12,6 Significant increase in harvest volume with good harvest weights
Slide 12: Farming volumes 2020-2025E
Farming volumes 2020 2021 2022 2023 2024E 2025E Leray Aurora AS 35,0 440 40,1 43,1 45,0 50,0 Lergy Midt AS 67,9 72,6 68,8 613 67,0 75,0 Lergy Sjotroll 68,0 70,0 65,7 55,2 58,0 70,0 Total Norway 170,9 186,6 174,6 159,6 170,0 195,0 Scottish Seafarms (Leroy's 50% share) 12,0 16,2 18,0 12.4 20,0 16,0 To
Slide 13: Wild catch highlights this quarter
Wild catch highlights this quarter • • • • • • • •
Slide 14: Catch volumes wild catch
Catch volumes wild catch Remaining quota 2024 Haddock Shrimps 3,3 57 0,5 96 Remaining quota
Slide 15: Sales and processing operations in countries
LEROY Sales and processing operations in 14 countries er © eroy in fhe world @ SWEDEN @ VAP, sales and distribution uK@ _ @ DENMARK @ NETHERLANDS @ FRANCE SPAIN® @ ira NORTH AMERICA @ ETT beset et @ Aran @cHINA
Slide 16: VAP, S&D highlights this quarter
VAP, S&D highlights this quarter • • • • •
Slide 17: 2. Key financial highlights
1. Highlights 2. Key financial highlights 3. Outlook
Slide 18: Profit and Loss statement
LEROY Profit and Loss statement (NOKm) Q3 2024 Q32023 4% Revenue and other income 7 889 8001 1% Highlight flis. quarter Operational EBITDA** 818 1008 -19% Depreciation,amortisation, impairments 405 377 Operational EBIT** 412 631 -35% EPS (NOK)" 0.62 017 * Significant impact on profitability from ’ :
Slide 19: Highlights this quarter
Highlights this quarter • • • • • •
Slide 20: Change in net interest-bearing debt this quarter
Change in net interest-bearing debt this quarter NOKm 8 000 6761 6791 6 000 4000 2000 671 264 5 10 1 ie) -150 169 -2000 Opening Q3 2024 EBITDA Change working Capex Dividends paid Net Payable tax Otheritems Closing Q3 2024 capital finance+lFRS 16 effects* “Includes instalments on lease liabilities to
Slide 21: 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 of around 286 41479 1,000 178 2024 cap imate around 1,8bn * NOK 400m in new shielding technology * NOK 200m in im ing smolt quality NOK 200m in land indust 500 om y for H1/25 °
Slide 22: Employment
Employment direct employees in Norway jobs in total, (direct and indirect) billion
Slide 23: 3. Outlook
1. Highlights 2. Key financial highlights 3. Outlook
Slide 24: 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 884 MNOK (12m rolling) 46% 200.000 — reduction in total GHG tonnes harvested in 2025 emissions by 2030 (Salmon and trout in
Slide 25: VAP S&D: Continued strong progress and promising outlook
VIP S10 Continued strong progress and promising outlook Operational EBIT target (NOKm) Short-term actions Long-term actions Higher utilisatio volume growth Consequence products in our own value chain logistics Sustainable LT Increased flexibility and Implementing nsibilities, price Lerey Way culture
Slide 26: 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 27: Improvements in roe and smolt expected to yield results from 2025
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 H1 24 5 H2 25 Improved genetics expected to contributing to higher growth rate in sea Genet
Slide 28: Strong biological performance in 2024
Farming Strong biological performance in 2024 Net growth rate Mortality Average daily percentage, number of fish Development YTD is positive, with positive trends so far in Q4/24 Last 5Y* YTD Q3 24 Last 5Y* YTD Q3 24 Biceltrectments Fewer winter wounds expected this winter with support —{3%] of vacc
Slide 29: Significant improvements in Leroy Sjøtroll
Farming Significant improvements in Ler@y Sjotroll Net growth rate Mortality Lice treatments Average daily percentage, number of fish pe = Last 5Y* YTD Q3 2024 Last 5Y* YTD Q3 2024 Last 5Y* YTD Q3 2024 *Average YTD Q3 2019-2023 *Average YTD Q3 2019-2023 *Average YTD Q3 2019-2023
Slide 30: Biological performance on track so far in Q4
Farming Biological performance on track so far in Q4, encouraging for 2025 Net growth rate Mortality Lice treatments Average daily percentage, number of fish pe a 5 Last SY* Q424- Last 5Y* Q424- Last SY oe per 11. Nov per11.Nov per 11. Nov *Average Q4 2019-2023 as per 11. Nov *Average Q4 2019-2023 a
Slide 31: Fish welfare improving as lice treatments reduced with shielding
Th farming Fish welfare improving as lice treatments are significantly reduced with shielding technology Lice treatments Shielding technology continue to deliver promising results Technology was put to test in third quarter, and the impact on reducing treatments is evident Lower number of treatments
Slide 32: Farming – shielding technology
Farming – shielding technology • • • • • • • • • •
Slide 33: Salmon price (spot, NOK/kg, quarterly average)
Salmon price (spot, NOK /kg, quarterly average) : Kontali. Last NSI Update: 1 ‘Salmon price (NOK /kg) spot NSI FCA Oslo 125 109 100 75 50 25 Qs QN2D®_=~——Q22®_=—QH22_—QH22D_ QHZ. = QAZI_—QS2_— QHZ. QZ. QA QIAN QHA (QTD)
Slide 34: Outlook
LEROY Outlook VAP, S&D - Biological development in 2024 is - Challenging quota situation in 2024 - Expect improved profitability in 2025 promising for 2025 and 2025 compared to 2024 - Contracts share for salmon in 2024 - Quotas for 2024 - Increased demand for integrated, oii , 5 currently around 30%
Slide 35: 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 REDFISH 7 oo = ROE FARMING. INTEGRATED VALUE CHAIN We carel WHITEFISH fam % Se WILD CATCH PROcEssING vap
Slide 36: Q&A
Q&A
Slide 37: The Norwegian Seafood Pioneer