Leroy Seafood Group Asa · OSL:LSG
Leroy Seafood Group Asa — Lerøy Seafood Group — Q2 2023 Earnings Presentation
36 slides from Leroy Seafood Group Asa's earnings presentation, Aug 23, 2023
Slide 1: Lerøy Seafood Group ASA Q2 2023
Lergy Seafood Group ASA Q2 2023 HE Henning Beltestad Sjur Malm CEO CFO 23 August 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: Farming, Wild Catch and VAP, S&D
L SG Farming & VAP, S&D VAP, S&D L SG Wild Catch Farming
Slide 4: Highlights of the quarter
LEROY Highlights of the quarter Record revenue and healthy earnings Operational EBIT* (NOKm) Operational EBIT* (NOKm) Operational EBIT of NOK 28,7/kg (all inclusive) vs. 25,2/kg in Q2/22 989 950 927 ggg 927 Resource tax adopted by Norwegian Storting in May 2023 833 522 Expected harvest volume incl.
Slide 5: Segments
LEROY SEGMENTS FARMING WILD CATCH VAP, SALES AND DISTRIBUTION
Slide 6: Farming highlights this quarter
Farming highlights this quarter • • • •
Slide 7: Lerøy Aurora
Ler@y Aurora Strong improvement in biological performance continues. Quarter impacted by harvesting of relatively low volume with low harvest weight With higher volumes in H2/23, a significant cost decline per kilo is expected in coming quarters Well underway in implementing LeroyWay. Positive impac
Slide 8: Lerøy Midt
Leroy Midt Strong biological performance. Significant biomass build in quarter Cost increase q-o-q, impacted by challenges H2/22 With increasing volume in H2/23 a significant fall in cost is expected Expect harvest volume of 64,000 GWT in 2023 Midt Q2 2023 Revenue (NOKm) 960 Operational EBIT (NOKm)
Slide 9: Lerøy Sjøtroll
Leroy Sjotroll Positive development for trout while challenging for salmon In Q3, two sites confirmed with ISA. Forced harvest with low average weights will have significant impact on cost and price realisation in Q3/23, and harvest volume in 2023. Best estimate today is a negative result impact of
Slide 10: Norway Royal Salmon / Scottish Sea Farms (50% owned) results
100% basis, inNOKm Q2 2023 Q2 2022 YTD 2023 YTD 2022 0, No ott Havbruk (50% owned) Revenues 692 384 1197 1523 Operational EBIT 144 190 “135 295 Harvested volume (GWT) 6 325 9 489 11.495 17.329 Low harvest volumes, harvesting from biologically Operational EBIT/kg 5225) 20,0 “iB 170 challenged sites a
Slide 11: Farming volumes 2019-2025T
Farming volumes 2019 2020 2021 2022 2023E 2024T 2025T Lergy Aurora AS 32,8 35,0 44,0 40) 47,0 48,0 50,0 Leroy Midt AS 64,8 679 72,6 68,8 64,0 75,0 80,0 Lergy Sjotroll 60,6 68,0 70,0 65,7 57,0 72,0 75,0 Total Norway 158,2 170,9 186,6 174,6 168,0 195,0 205,0 Scottish Seafarms (Leray's 50% share) 12,9
Slide 12: Wild catch highlights this quarter
Wild catch highlights this quarter • • •
Slide 13: Catch volumes wild catch
Remaining Remaining Catch volumes wild catch Q2-23 Q2-22 2023 2022 quota 2023 quota 2022 Cod Sl 3,8 11,1 13,9 87 10,1 Saithe 2) 39 78 74 11,4 88 Haddock 23 13 9,6 88 1) 1) Shrimps 46 62 4,6 6,2 Other 11,6 34 16,0 75 Total 23,7 18,6 49,0 43,8 21,1 20,0
Slide 14: VAP, S&D highlights this quarter
VAP, S&D highlights this quarter • • • •
Slide 15: Our sales and processing operations span countries
LEROY Our sales and processing operations now span 14 countries me © leroy in fhe world @ SWEDEN @ VAP, sales and distribution uk@ _ @ DENMARK @ NETHERLANDS @ FRANCE SPAIN@ @ ITALY NORTH AMERICA @ ETT @ TURKEY @ JAPAN @cHINA
Slide 16: 1. Highlights
1. Highlights 2. Key financial highlights 3. Outlook
Slide 17: Profit and Loss statement / Highlights this quarter
LEROY Profit and Loss statement (NOKm) Q2 2023 Q2 2022 A% Revenue and other income 7671 6566 17% Operational EBITDA** 1307 1249 5% Depreciation & amortisation 396 322 Operational EBIT** 950 927 2% EPS (NOK)* -2)11 0,83 -354% Salmon and trout harvest volume (GWT) 29 659 33.083 -10% Operational EBIT**
Slide 18: Highlights this quarter
Highlights this quarter • • • • •
Slide 19: Change in net interest-bearing debt this quarter
NOKm 6000 4000 2000 -2:000 Change in net interest-bearing debt this quarter 4302 5992 1526 468 628 194 142 2 1274 Opening Q2 2023 EBITDA Change working Capex Dividends paid Net Payable tax Other items Closing Q2 2023 capital finance+tIFRS 16 effects* “Includes instalments on lease liabilities to oth
Slide 20: Resource tax proposal
LEROY Resource tax proposal Adopted by the Norwegian Storting 31 May 2023 The proposal is to increase tax rate in the "sea phase" by 25%, a part of the process of making a salmon Efficient tax rate dependent on share of profit and investments in the "sea phase’, thus is it not possible to make comme
Slide 21: Significant positive impact
S34 Significant positive impact 3600 employees in 60 municipalities ____ Around NOK 2,0 bn in taxes and fees NOK 19 bn of purchased goods 5100 suppliers in 300 municipalities @ Own activity ®@ Suppliers
Slide 22: Lerøy is on track towards targets set in the Paris agreement
LEROY Ler@y is on track towards targets set in the Paris agreement In PwC annual review of Norwegian companies, Leray is said to be one of only nine large companies on track to reach Paris agreement This is the second year Lergy is on this exclusive list Ler@y is also, by Coller Fairr, voted top thr
Slide 23: 2. Key financial highlights
1. Highlights 2. Key financial highlights 3. Outlook
Slide 24: 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% 1865800 1,5% 1969700 56% Norw
Slide 25: Atlantic Salmon Consumption
NOK/KG (NSI 3-6): LEROY 107.28 14.61% (93.60) Atlantic Salmon Consumption YTD - June Market 2020 2021 +2022 2023 Growth Growth % EU 515883 580138 550245 513354 -36,891 -6.7% Others 347 482 382347 360076 370320 10,244 28% USA 268879 322845 318775 316904 -1,870 -06% Russia 32070 46902 22318 27414 5,09
Slide 26: Spot Prices, Fresh Atlantic Salmon
Quarter 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 LE ROY Qi 29° 34 «40 «27 «23606470 «641 58 «665 C0 1 B52 BO 104 Q2 36 41 38 28 42 40 38 64 67 68 62 58 63 105 105 Q3 32. 39 27 26 38 #35 #41 60 S6 55 49 47 55 69 83 Spot Prices, Fresh Atlantic Salmon nan 3 2 32 a7 1 4
Slide 27: Outlook
LEROY Outlook Proposed “Resource tax" adds uncertainty Expect harvest volume incl. share of associated of around 181,500 GWT in 2023. Lower cost expected H2/23 and improvement initiatives will fuel growth in years to come Contract share of 15% in H2/23 In line with communication on CMD 2022 making s
Slide 28: Green investments - New technology protecting the salmon from sea lice
Green investments - New technology protecting the salmon from sea lice Expected to further improve fish welfare and improve profitability
Slide 29: Green investments timeline 2012-2022
• • • • • • • 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Slide 30: Lerøy is investing in new production technology to protect against sea lice
Ler@y is investing in new production technology to protect against sea lice Submerged cage Sinking the containment for our exposed and/or deep sites Subsea waterborne feeding Air pocket -30 m (under the lice infected waters) Traditional net cage with a roof Semi-closed containment Deep skirt with a
Slide 31: Timeline
Timeline Lerøy Sjøtroll Lerøy Midt
Slide 32: Targets for 2025
Which is expected to contribute towards our strategic targets [ourges for 2025 205.000 93% 4,5 Tonnes harvest volume Superior quality Average harvest weight (Norway) (GWE) 1,19 -4,6 Economic feed NOK/kg conversion rate reduced production cost Baseline 2021 | Target 2025 Superior quality includes ord
Slide 33: 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 34: Q&A
Q&A
Slide 35: 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 36: Slide 36