Leroy Seafood Group Asa · OSL:LSG
Leroy Seafood Group Asa — Q4 2023 Earnings Presentation
34 slides from Leroy Seafood Group Asa's earnings presentation, Feb 28, 2024
Slide 1: Leroy Seafood Group ASA Q4 2023
Lergy Seafood Group ASA Q4 2023 HE Henning Beltestad Sjur Malm CEO CFO 28 February 2024
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 REDFISH 7 oo = ROE INTEGRATED VALUE CHAIN We carel WHITEFISH fam % Se WILD CATCH PROcEssING vap
Slide 3: Highlights of the quarter
LEROY Highlights of the quarter Operational EBIT (NOKm) 5 _ Cz 7 c « Operational Revenue for 2023 exceeding NOK 30bn for the first time in history eait (oxen) 989 950 sag 227 Making progress towards 2025 strategic targets 833 822 765 631 Good biological development in early 2024 Significant improvem
Slide 4: Segments
Segments Wild catch
Slide 5: Farming highlights this quarter
Farming highlights this quarter • • • • • •
Slide 6: The value chain consists of farming and VAPS&D
• • • • The value chain consists of farming and VAPS&D
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: Norskott Havbruk (50% owned) results
100% basis, in NOKm Q4 2023 Q4 2022 YTD 2023 YTD 2022 Norskott Havbruk (50% owned) Revenues 97 393 2561 3188 Operational EBIT -47 128 304 214 Harvested volume (GWT) 4571 7317 24 884 35 936 Previously mentioned biological challenges impacting Operational EBIT/kg 10,3 75 12,2 60 harvest volume, averag
Slide 10: Farming volumes
Farming volumes 2019 2020 2021 2025 Target Leray Aurora AS 32,8 35,0 44,0 40,1 43) 47,0 50,0 Lergy Midt AS 64,8 679 72,6 68,8 61,3 70,0 80,0 Leroy Sjgtroll 60,6 68,0 70,0 65,7 55,2 58,0 75,0 Total Norway 158,2 170,9 186,6 174,6 159,6 175,0 205,0 Scottish Seafarms (Leray's 50% share) 129 12,0 16,2 18
Slide 11: Wild catch highlights this quarter
Wild catch highlights this quarter • • • • •
Slide 12: Catch volumes wild catch
Catch volumes wild catch Q4-23 Q4-22 2023 2022 Cod 5,0 57 19,5 23,7 Saithe 33 27 15,5 12,9 Haddock 1,6 14 11,3 10,4 Shrimps = - 9,0 93 Other Dil 33 20,6 15,4 Total 12,5 13,1 75,9 71,7
Slide 13: Sales and processing operations in countries
LEROY Sales and processing operations in 14 countries NoRWAY@ _ @FINLAND leroy iw fhe world @ SWEDEN @ VAP, sales and distribution uK@ _ @ DENMARK @ NETHERLANDS @ FRANCE SPAIN@ — @ ITALY NORTH AMERICA @ ETT @ TURKEY @ JAPAN @cHINA
Slide 14: VAP, S&D highlights this quarter
VAP, S&D highlights this quarter • • • • • • • •
Slide 15: 1. Highlights 2. Key financial highlights 3. Outlook
1. Highlights 2. Key financial highlights 3. Outlook
Slide 16: Profit and Loss statement
LEROY Profit and Loss statement (NOKm) Q42023 Q42022. a% Revenue and other income 8229 7114 16% Operational EBITDA** 1180 1163 1% Depreciation,amortisation, impairments 414 341 Operational EBIT** 765 822 Th EPS (NOK)* 1,09 075 45% Salmon and trout harvest volume (GWT) 47 483 53310 -11% Operational E
Slide 17: Highlights this quarter
Highlights this quarter • • • • •
Slide 18: Change in net interest-bearing debt this quarter
Change in net interest-bearing debt this quarter NOKm 6 000 5471 5209 4000 2000 543 37 2 164 25 0 -178 1135, -2000 Opening Q4 2023 EBITDA Change working Capex Dividends paid Net Payable tax Other items Closing Q4 2023 capital finance+lFRS 16 effects* “Includes instalments on lease liabilities to oth
Slide 19: 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 4479 286 Maintenanc and smaller upgrades of around - bn 1,000 178 significantly in r hnology and s in farming NOK 500m in new shielding technology 500 NOK 200m in improving smol
Slide 20: Resource tax implementation
LEROY Resource tax implementation Adopted by the Storting 31 May 2023, with full year effect 2023 Farming segment Increase tax rate in the "sea phase” by 25% to a total of 4 Best estimate for 2023 of tax and production fee for operation within REDFISH : oo 2 source tax regime NOK 2.0bn, of which NOK
Slide 21: 1. Highlights 2. Key financial highlights 3. Outlook
1. Highlights 2. Key financial highlights 3. Outlook
Slide 22: Making progress on strategic targets, but some targets are stretched
Making progress on strategic targets, but some targets are stretched >50 © bn NOK in revenue by 2030 ~ 30 bn NOK in 2023 46% © reduction in total GHG emissions by 2030 (baseline 2019) ~ 14,2% reduction in 2022 #1 EBIT/kg for farming and VAP S&D by 2025 500 @ mill NOK in EBIT for Wild catch by 2025 2
Slide 23: VAP S&D: Substantial earnings growth through targeted initiatives
VIP S10 Substantial earnings growth through targeted initiatives Operational EBIT target (NOKm) Short-term actions Long-term actions Consequence products in our own value chain logistics Sustainable LT Increased Implementing flexibility and Leroy Way with price improvements 643 , achievement downstr
Slide 24: VAP S&D: Planned strategic projects towards 2030
VIP S10 Planned, strategic projects further increasing value creation towards 2030 i ql . was Incr flexibility an Gensee ans. [pee losusthy Implementing Leroy Way Sustainable logistics ne pdeed e bility a price achievements our own value chain * Utilizing 100% of the raw material is + Implementing L
Slide 25: Wild Catch: Substantially reduced cod quotas
Wild Cafch Substantially reduced cod quotas - EBIT target for 2025 under review Cod quota development (in tonnes HOG) -51% Substantially lower quotas for cod is challenge, that must be mitigated through * Higher catches of alternative species 27700 * Increased utilisation of raw material (100% fish)
Slide 26: Wild Catch: On-shore facilities set to improve
Wild Cafch On-shore facilities set to improve Batsfjord * Rebuilt factory, completed Feb 2024 + New production technology and automation * Improving productivity; handling higher volumes with no increase in staff * Focus on utilizing the raw material and developing new whitefish products + Recently
Slide 27: Farming: Reaching 2025 harvest target through operational improvements
Farming Reaching 2025 harvest target through operational improvements Tonnes harvested salmon and trout 45 400 159 600 205000 2023 Targeted growth 2025 Target Operational efficiency —) , through... Ss SN J] Smolt production Technology
Slide 28: Farming: 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 Resulting in better performance Illustrationn of when different measures will impact results/harvest Improved genetics expected to contributing to higher H1 24 growth rate in sea ca ™ Gene
Slide 29: Farming: Leroy Sjøtroll performance set to improve
tr farming Lergy Sjotroll - performance is set to improve. Shifting production towards high- performing trout and utilising shielding technology. Trout - strong biological performance Reaching harvest target of 75.000 GWT in 2025 Shifting volumes from salmon to trout, shielding expo salmon, remainin
Slide 30: Farming – shielding technology
Farming – shielding technology • • • • • • • • •
Slide 31: Outlook
LEROY Outlook Positive start of 2024 after a challenging 2023. Contracts share 2024 as of today slightly above 20% Expect to see significant improvements from: - Roe and Smolt quality - New farming technology - Process improvement/Implementing LerayWay Challenging quota situation into 2024 Quotas fo
Slide 32: 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 33: Q&A
Q&A
Slide 34: Slide 34