Leroy Seafood Group Asa · OSL:LSG
Leroy Seafood Group Asa — Lerøy Seafood Group — Q4 2022 Earnings Presentation
33 slides from Leroy Seafood Group Asa's earnings presentation, Feb 21, 2023
Slide 1: Lerøy Seafood Group ASA Fourth quarter 2022 results
Lerøy Seafood Group ASA Fourth quarter 2022 results Henning Beltestad Sjur Malm CEO CFO 21 February 2023
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
Slide 3: Targets for 2025 and beyond
Targets for 2025 and beyond L SG Farming & VAPS&D VAPS&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 203
Slide 4: Resource tax proposal
Resource tax proposal • 28 of September the Norwegian Government proposed to implement a new resource tax, with additional 40% tax on profits generated in the open sea phase of farming • The proposal has immediate and long term negative effects for the industry • Lerøy has submitted a consultation r
Slide 5: Highlights of the quarter
Highlights of the quarter • Record revenue for the year EBIT* (NOKm) • EBIT* all. incl. of NOK 15,2/kg EBIT* (NOKm) 902 923 852 831 800 • Positive development VAPS&D, further improvement expected in 2023 583 579 • Challenging biological situation for some of the farming assets. 455 Expected harvest
Slide 6: Segments
SEGMENTS FARMING WILD CATCH VAP, SALES AND DISTRIBUTION
Slide 7: Farming highlights this quarter
EBIT Farming* Farming highlights this quarter 959 791 774 702 621 EBIT* (NOKm) 427 • EBIT/kg in farming increased from NOK 13,7/kg in Q4/21 to 388 NOK 14,5/kg in Q4/22 251 • Healthy performance in Lerøy Aurora, with more challenging EBIT*/kg (NOK) 6.0 10.6 7.6 13.7 19.4 29.0 14.1 14.5 biology in Ler
Slide 8: Lerøy Aurora
Lerøy Aurora Q4 2022 Q4 2021 2022 2021 Revenue (NOKm) 1 050 865 2 798 2 541 EBIT* (NOKm) 290 240 740 445 Lerøy Aurora Harvested volume (GWT) 15 119 14 136 40 109 43 963 Prod. cost (ex. prod. fee) 46,0 41,8 Harvest weight (avg. in kg) 4,1 4,0 • Healthy biological performance, but still significant co
Slide 9: Lerøy Midt
Lerøy Midt Q4 2022 Q4 2021 2022 2021 Revenue (NOKm) 1 472 1 109 5 018 4 141 EBIT* (NOKm) 301 291 1 474 838 Lerøy Midt Harvested volume (GWT) 20 999 18 259 68 793 72 623 Prod. cost (ex. prod. fee) 47,0 42,1 Harvest weight (avg. in kg) 4,4 4,4 • Challenging biologic situation in H2/22. This impacts gr
Slide 10: Lerøy Sjøtroll
Lerøy Sjøtroll Q4 2022 Q4 2021 2022 2021 Revenue 1 217 1 124 4 693 3 913 EBIT* 185 174 928 484 Lerøy Sjøtroll Harvested volume (GWT) 17 192 18 937 65 727 70 049 Prod. cost (ex. prod. fee) 55,9 47,9 Harvest weight (avg. in kg) 4,0 4,2 *includes salmon and trout. • Challenging biological quarter. High
Slide 11: Norskott Havbruk (50% owned)
Norskott Havbruk (50% owned) 100% basis, in NOKm Q4 2022 Q4 2021 2 022 2 021 Revenues 693 344 3 188 2 307 EBIT* -128 -29 214 244 Harvested volume (GWT) 7 317 4 903 35 936 32 350 EBIT/kg * -17,5 -5,8 6,0 7,6 • Challenging biology. Results negatively impacted with issues with micro-jellyfish and AGD.
Slide 12: 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
Slide 13: Wild catch highlights this quarter
Revenue and EBIT wild catch Wild catch highlights this quarter NOKm 1 200 Revenue EBIT 1 031 NOKm 300 1 000 867 868 800 200 600 686 663 620 • Lower quotas brings lower catch and thus as a significant 236 554 negative y-o-y impact on profitability 400 185 100 200 93 65 73 17 27 • For 2022 positive de
Slide 14: Wild catch quotas and catch volumes (GWT 1,000)
Wild catch quotas and catch volumes (GWT 1,000) Catch volumes wild catch Q4-22 Q4-21 2022 2021 Cod 5,7 8,8 23,7 26,6 Saithe 2,7 3,3 12,9 13,2 Haddock 1,4 1,5 10,4 10,9 Shrimps 0,0 0,0 9,3 9,4 Other 3,3 3,4 15,4 11,5 Total 13,1 17,1 71,7 71,5
Slide 15: VAP S&D highlights this quarter
Revenue and EBIT VAP S&D (NOKm) VAP S&D highlights this quarter 8 000 Revenue EBIT-margin p.a. 4,0 % 7 113 6 962 6 100 6 122 6 309 1,9 % 5 122 5 121 0,9 % 4 628 4 000 0,0 % • All-time high revenue for 2022 -1,0 % • Significant demand uptick in 2022 has created record - -4,0 % demand and also supply
Slide 16: Our sales and processing operations now span 14 countries
Our sales and processing operations now span 14 countries
Slide 17: Highlights, Key financial highlights, Outlook
1. Highlights 2. Key financial highlights 3. Outlook
Slide 18: Highlights this quarter: Profit and Loss statement
Profit and Loss statement (NOKm) Q4 2022 Q4 2021 ▲% Revenue 7 114 6 519 9% Other gains and losses -2 10 EBITDA Depreciation & amortisation 1 141 341 1 224 322 -7% Highlights this quarter EBIT* 800 902 -11% Income from associates* -68 -12 Net finance -81 -59 • Lower margin through value chain in Pre-
Slide 19: Highlights this quarter: Balance sheet
Balance sheet (NOKm) Intangible assets 31.12.2022 8 643 31.12.2021 8 594 ▲ 49 Highlights this quarter Right-of-use-assets 2 864 2 661 203 Tangible fixed assets 7 487 7 297 190 Financial non-current assets 1 565 1 457 108 • Inflationary trends gives significant lift in working capital items Total non
Slide 20: Change in net interest-bearing debt this quarter
Change Change in interest-bearing in net net interest-bearing debt debt this quarter NOKm 5 000 4 410 4 346 4 000 3 000 2 000 1 000 451 208 188 231 0 0 -2 -1 000 -1 141 -2 000 Opening Q4 2022 EBITDA Change working Capex Dividends paid Net Payable tax Other items Closing Q4 2022 capital finance+IFRS
Slide 21: Significant positive impact
Significant positive impact 3 500 employees in 60 municipalities More than NOK 1,5bn in Employment effect taxes and fees 5 million daily meals of 13 000 people NOK 13 bn of purchased goods 4 500 suppliers in 300 municipalities Own activity Suppliers
Slide 22: Added uncertainty for future investment due to resource tax proposal
Added uncertainty for future investment due to resource tax proposal ANNUAL CAPEX INVESTMENTS Mill NOK • Invested significantly in developing our 1.975 2.000 127 value chain in recent years – the basis for our 2025 targets 307 1.650 1.484 176 • 1.458 1.500 197 35 15 Annual investment in maintenance
Slide 23: Highlights, Key financial highlights, Outlook
1. Highlights 2. Key financial highlights 3. Outlook
Slide 24: Atlantic Salmon - Supply
LEROY Atlantic Salmon - Supply in tons WFE Year 2017 2018 2019 2020 2021 2022 2023 Region Volume Change Volume Change Volume Change Volume Change|Volume (Change Volume (Change| Volume Change Europe 1493900 45%) 1505100) 0.7%) 1650500; 9.7%, 1675900) 1.5% 1895500) 13.1%/1845300 -2.6%/ 1897500; 28% No
Slide 25: Atlantic Salmon Consumption
NOK/KG (NSI 3-6) Q1 pr w8: LEROY 74.09 23.30% (60.09) Atlantic Salmon Consumption Q4 Market 2019 2020 2021 2022 Growth Growth % EU 308 328 346823 360303 360683 380 0.1% Others 201648 210427 215469 218112 2,643 1.2% USA 134673 148085 155878 167766 11,889 7.6% Japan 16621 21374 21006 17531 -3,474 -16.
Slide 26: Spot Prices, Fresh Atlantic Salmon
LEROY Spot Prices, Fresh Atlantic Salmon - Cross Section, FCA Oslo, Superior Quality as of week 5-2023 — Weekly Price NSI FCA Oslo — Quarterly Price NSI FCA Oslo 140 120 100 80 60 40 20 0 2008 2010 2012 2014 Quarter 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Qi ea) Q2
Slide 27: Outlook strongly affected by resource taxation
Outlook strongly affected by resource taxation Farming Wild Catch VAP S&D - Proposed “resource tax” impacts from - Healthy profitability in 2022 - Expect improved earnings 2023 vs 2022 1 January 2023 and brings significant uncertainty - Likely development in 2023 quotas: - Resource tax adds uncertai
Slide 28: Roadmap with strategic initiatives to increase operational efficiency and profitability
We have defined a clear roadmap with strategic initiatives to increase operational efficiency and profitability Production Process- Feed Lerøy Way planning improvement smolt Biology R&D Production unit Smolt Roe & Brood stock onshore expansion Process- Process Production technology Lice management V
Slide 29: Reducing our environmental impact in daily operations across the value chain
We are working on reducing our environmental impact in daily operations – across our value chain… Smolt Feed Customers Farming Wildcatch Industry VAP Distribution Production Production & society Emissions from Water use and Food wastage Emissions from electriricy and Material for Transport to fish d
Slide 30: Creating the world's most efficient and sustainable value chain for seafood
Creating the world’s most efficient and sustainable value chain for seafood
Slide 31: Q&A
Q&A
Slide 32: 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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