Leroy Seafood Group Asa · OSL:LSG
Leroy Seafood Group Asa — Q1 2024 Earnings Presentation
36 slides from Leroy Seafood Group Asa's earnings presentation, May 15, 2024
Slide 1: Leroy Seafood Group ASA Q1 2024
Lergy Seafood Group ASA Q1 2024 A Henning Beltestad Sjur Malm CEO CFO 15 May 2024
Slide 2: 1. Highlights 2. Key financial highlights 3. Outlook
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 INTEGRATED VALUE CHAIN We carel WHITEFISH fam % Se WILD CATCH PROcEssING vap
Slide 4: Highlights of the quarter
LEROY Highlights of the quarter Operational EBIT of MNOK 842 (vs MNOK 989 Q1 23) Good biological development in Q1 24, but low temperatures impact growth Biology and earnings at Scottish Seafarms is improving Significant improvement in earnings for the VAPS&D segment Healthy earnings in Wild catch,
Slide 5: Segments
Segments Wild catch
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: Sjøtroll Havbruk (50% owned) results
100% basis, in NOKm Q12024 Q12023 YTD 2024 YTD 2023 0, ott Havbruk (50% owned) Revenues 848 506 848 506 Operational EBIT 138 9 138 9 Harvested volume (GWT) 7297 5170 7297 5170 Operational EBIT/kg 189 47 189 17 Improved biological status in all regions NIBD 3015 239 3015 2391 Harvest volume up y-o-y
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 40,1 43,1 47,0 50,0 Leroy Midt AS 648 67,9 72,6 68,8 613 70,0 80,0 Ler@y Sjotroll 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) 12,9 1
Slide 12: Wild catch highlights this quarter
Wild catch highlights this quarter • • • •
Slide 13: Catch volumes wild catch
Catch volumes wild catch Remaining quota 2024 Remaining quota 2023 Haddock Shrimps 63 98 11 11,7 1,4 3,3 17,2 26,4
Slide 14: Sales and processing operations in countries around the world
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 15: VAP, S&D highlights this quarter
VAP, S&D highlights this quarter • • • • •
Slide 16: 1. Highlights 2. Key financial highlights 3. Outlook
1. Highlights 2. Key financial highlights 3. Outlook
Slide 17: Profit and Loss statement
LEROY Profit and Loss statement (NOKm) Q12024 Q12023 4% Revenue and other income 7110 6971 2% Highlights flis. quarfer Operational EBITDA** 1234 1337 -8% Depreciation,amortisation, impairments 392 347 Operational EBIT** 842 989 -15% EPS (NOK)" 081 404 -22% * Slightly lower volumes and lower margins
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 6 000 5538 5209 4000 2.000 466 436 232 378 1 13 C) 1198 -2.000 Opening Qi2024. = EBITDA. Change working Capex Dividends paid Net Payable tax Otheritems Closing Q12024 capital finance+IFRS 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 Mill NOK Capex (in NOKm) 2.000 1.650 1.500 1.458 1.460 286 and smaller upgrades of around 14179 1,000 178 significantly in r hnology and s in farming NOK 500m in new shielding technology 500 NOK 200m in improving smolt quality 18 st
Slide 21: Employment
Employment direct employees in Norway jobs in total, (direct and indirect) billion
Slide 22: 1. Highlights 2. Key financial highlights 3. Outlook
1. Highlights 2. Key financial highlights 3. Outlook
Slide 23: Making progress on strategic targets, but some targets are stretched
GG Making progress on strategic targets, but some targets are stretched >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 20
Slide 24: Our emissions, our ambition, focus areas
LSG Our emissions Our ambition Focus areas
Slide 25: Wild Catch: reduced earnings potential as cod quotas reduced
Wild Cafch Reduced earnings potential as cod quotas reduced. EBIT guidance withdrawn Cod quota development (in tonnes HOG) (5196! Significantly lower quotas on main species cod and R*) haddock As of today, best indication is that cod quota will be further reduced in 2025 with further impact on compa
Slide 26: VAP S&D: promising outlook
VIP S10 Promising outlook Operational EBIT target (NOKm) Short-term actions Long-term actions Higher utilisation of our VAP factor volurr Consequence products in our ning own value chain logistics Sustainable rtain ubstant LT Increased flexibility and Implementing price Leroy Way achievement 2023 20
Slide 27: Using the entire fish through productive innovation
VIP S10 Using the entire fish through productive innovation, driving sustainability and supporting our strategy within VAP S&D SalmoFer*
Slide 28: Farming: reaching 2025 harvest target through operational improvements
Farming Reaching 2025 harvest target through operational improvements Tonnes harvested salmon and trout 200 000 2023 Targeted growth 2025 Target Operational efficiency —) , through... Ss SN J] Smolt production Technology
Slide 29: Improvements in roe and smolt expected to yield results
Farming Improvements in roe and smolt expected to yield results from harvest in 2025 High-quality roe and smolt Improved genetics expected to contributing to higher growth rate in sea Process improvements in roe and smolt production, e.g. new improved production protocols making the fish more robust
Slide 30: Strong biological performance
Farming Strong biological performance Net growth rate Mortality Average daily percentage, number of fish Strong start of 2024 in terms biological performance, despite low sea temperatures * Explained by improved roe, smolt, genetics and new technology Last 5Y* Q124 Last 5Y* Q1 24 Quality downgrades
Slide 31: Farming – shielding technology
Farming – shielding technology • • • • • • • •
Slide 32: Farming – shielding technology
Farming – shielding technology • • • • •
Slide 33: Outlook
LEROY Outlook - Positive start of 2024 after a challenging - Challenging quota situation into - Increased demand for integrated 2023. 2024 sustainable, value chain - Contracts share 2024 currently around 25% - Quotas for 2024 - Improved market share in some key - Expect to see significant improvemen
Slide 34: 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 INTEGRATED VALUE CHAIN We carel WHITEFISH fam % Se WILD CATCH PROcEssING vap
Slide 35: Q&A
Q&A
Slide 36: Slide 36