Leroy Seafood Group Asa · OSL:LSG
Leroy Seafood Group Asa — Lerøy Seafood Group — Q2 2022 Earnings Presentation
33 slides from Leroy Seafood Group Asa's earnings presentation, Aug 24, 2022
Slide 1: Q2 2022 – August 24th
LEROY Q2 2022 ani AUGUST 24TH
Slide 2: Value chain
- © & a _ VALUE CHAIN We carl 3
Slide 3: Highlights, Key Financial Figures, Outlook
1. Highlights 2. Key Financial Figures 3. Outlook
Slide 4: Highlights
Highlights
Slide 5: Q2 2022 Highlights
Q2 2022 Highlights 1,000 EBIT* 923 900 800 - Record high quarterly revenue 700 600 NOK million 500 - Extreme price development lifts price realisation and cost. Positive for 400 upstream assets, while temporary challenging for downstream operations 300 200 100 - EBIT excl. FV adj. and settlement cos
Slide 6: Lerøy Seafood Group ASA
Lerøy Seafood Group ASA VAP, Sales and Farming Wild catch distribution
Slide 7: Q2 2022 Farming highlights
Q2 2022 Farming highlights 1,000 EBIT* farming 959 900 800 - Price realisation significantly impacted by contract positions entered into in 700 2021. Contract share for salmon in quarter of 46% NOK million 600 500 400 - Biomass growth as expected in Q2 2022, but somewhat lower growth than 300 expect
Slide 8: Farming volumes
Farming volumes 2016 2017 2018 2019 2020 2021 2022E GWT GWT GWT GWT GWT GWT GWT Lerøy Aurora AS 30 000 39 200 36 800 32 800 35 000 44 000 ~40 000 Lerøy Midt AS 52 200 64 500 66 500 64 800 67 900 72 600 ~68 000 Lerøy Sjøtroll 68 000 54 000 58 800 60 600 68 000 70 000 ~72 000 Total Norway 150 200 157
Slide 9: Q2 2022 Wildcatch highlights
Q2 2022 Wildcatch highlights 300 EBIT Wildcatch 250 236 - Record profitability for first half year. EBIT Q2/22 of NOK 93m compared to 200 NOK 65 m in Q2/21 NOK million 150 100 93 - Strong price development, positive for profitability on catching, while a 50 challenge for the processing activity. 0 -
Slide 10: Catch volumes Wild Catch
Catch volumes Wild Catch Catch volume Catch volume Remaining quota Remaining quota Q2/22 Q2/21 YTD 2022 YTD 2021 2022 2021 Cod 3 833 3 241 13 855 14 354 10 122 13 884 Saithe 3 896 3 347 7 406 7 377 8 827 8 478 Haddock 1 330 2 435 8 771 8 432 1 051 7 048 Shrimps 6 197 5 174 6 197 5 174 Other 3 394 2
Slide 11: Q2 2022 VAPS&D highlights
Q2 2022 VAPS&D highlights 6,500 Revenue and EBIT-margin VAPS&D 6,309 4.0 6,000 3.5 3.0 - Extreme price development on all input factors take time to transfer through 5,500 2.5 EBIT margin (%) the value chain. Challenging to grow volume in startup facilities 5,000 NOK million 2.0 4,500 1.5 4,000 1.0
Slide 12: Significant network of processing facilities
Signficant network of processing facilities - Global reach and sales to more than 70 countries - A significant industrial activity within trading, processing, sales and distribution of fish (including white species) - It takes time to adjust prices through the value chain Distribution facilities
Slide 13: Key financial figures
Key financial figures
Slide 14: Key financial figures – Q2 2022
Key financial figures – Q2 2022 (NOKm) Q2 2022 Q2 2021 ▲% Revenue 6 567 5 304 24 % Other gains and losses 0 44 EBITDA* 1 244 899 38 % Depreciation & amortisation 322 316 EBIT* 923 583 58 % Income from associates* 70 52 Net finance -90 -54 Pre-tax profit* 903 580 56 % EPS (NOK)* 1,11 0,74 50 % Salmon
Slide 15: Balance sheet
Balance sheet (NOKm) 30.06.2022 30.06.2021 ▲% Intangible assets 8 710 8 609 Right-of-use-assets 2 843 2 602 Tangible fixed assets 7 379 7 179 Financial non-current assets 1 738 1 133 Total non-current assets 20 670 19 523 Biological assets at cost 5 044 4 423 Fair value adjustment of biomass 3 200 1
Slide 16: Change in NIBD
Change in NIBD Q2 2022 Q2 2021 YTD 2022 YTD 2021 FY 2021 EBI TDA before fair v alue adjustment on biological assets 1 034 899 2 207 1 658 3 778 Paid tax -142 -110 -285 -224 -387 Change in w orking capital -444 114 -1 073 302 414 Other (Net gain from sales of NCA) 1 -46 0 -48 -64 NIBD impact from ope
Slide 17: EBIT per segment
EBIT per segment EBIT* Q2 2022 EBIT* Q2 2021 1,100 93 -64 1,100 1,000 959 1,000 -72 923 900 6 900 800 800 700 700 161 600 600 583 -44 NOKm NOKm 13 500 500 65 388 400 400 300 300 200 200 100 100 0 0 Farming Wildcatch VAPS&D LSG Elimination Q1 2022 Farming Wildcatch VAPS&D LSG Elimination Q1 2021 ASA/
Slide 18: Lerøy Aurora
Lerøy Aurora Q2 2022 Q2 2021 YTD 2022 YTD 2021 Improvement in quality, positive outlook Revenue (NOKm) 351 328 718 813 EBIT* (NOKm) 87 45 179 60 • Significant y-o-y improvement in harvest quality Harvested volume (GWT) 4 422 5 154 9 309 14 150 • Healthy growth so far in 2022, and on track to see sig
Slide 19: Lerøy Midt
Lerøy Midt Q2 2022 Q2 2021 YTD 2022 YTD 2021 Steady performance Revenue (NOKm) 1 210 908 2 055 1 781 EBIT* (NOKm) 474 205 760 340 • Steady performance Harvested volume (GWT) 14 131 14 980 25 898 31 442 • As expected q-o-q and y-o-y cost increase driven by inflationary trends. EBIT/kg* (NOK) 33.6 13.
Slide 20: Lerøy Sjøtroll
Lerøy Sjøtroll Q2 2022 Q2 2021 YTD 2022 YTD 2021 Improvement initiatives gradually yielding results Revenue (NOKm) 1 194 964 2 250 1 852 EBIT* (NOKm) 395 139 637 238 • Improvement initiatives gradually yielding results in both growth and cost level. Adjusted for inflationary cost elements a signific
Slide 21: Wildcatch (Lerøy Havfisk/LNWS)
Wildcatch (Lerøy Havfisk/LNWS) Q2 2022 Q2 2021 YTD 2022 YTD 2021 Strong profitability YTD Revenue (NOKm) 868 686 1 899 1 553 • High catch efficiency and high prices is the core drivers for record EBITDA (NOKm) 145 115 433 351 EBIT (NOKm) 93 65 330 250 profitability in first half of 2022 Havfisk, cat
Slide 22: VAPS&D – VAP, Sales and Distribution
VAPS&D – VAP, Sales and Distribution Q2 2022 Q2 2021 YTD 2022 YTD 2021 Extreme price development gives pressure on profitability Revenue (NOKm) 6 309 5 122 11 429 9 750 • Price development on seafood and transportation cost significantly EBIT (NOKm) -64 161 -38 262 stronger than expected, bringing p
Slide 23: Norskott Havbruk (associate, 50% owned)
Norskott Havbruk (associate, 50% owned by Lerøy Seafood Group) Q2 2022 Q2 2021 YTD 2022 YTD 2021 Starting to realise synergies from acquisition Revenue (NOKm) 884 793 1 523 1 190 • High cost base harvesting from sites with biological challenges in Q3 and EBIT* (NOKm) 190 119 295 193 Q4 2021 Harveste
Slide 24: Outlook
Outlook
Slide 25: 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%) 1675000) 1.5% 1894200) 13.1%/1860600 -1.8%/ 1962900) 5.5% N
Slide 26: Spot prices, fresh Atlantic salmon
Quarter 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 L E ROY Qi a rd ett Ae ee Q2 26 36 #41 #38 #2 42 #40 38 64 67 #68 62 58 63 105 Q3 28 32 #39 #27 «26 «638 «635641 «60 «656 6 655 C49 47 558 Spot Prices, Fresh Atlantic Salmons. 2 5 3 2 2% wm a 62 59 59 87 53 87 88 - Cr
Slide 27: Atlantic Salmon - Harvest Volumes Norway
Tons YTD July: LEROY 756,200 Change from Last Year Atlantic Salmon - Harvest Volumes Norway oe in tons WFE 200 000 40% 150 000 20% 100 000 0% 50 000 -20% -40% January February March April May June July August September October November December Figures as per: 2019 ° 2020 ° 2021 * 2022 — Growth --Ze
Slide 28: Atlantic Salmon - Harvest Volumes
Tons YTD July: LEROY 1,501,500 Change from Last Year Atlantic Salmon - Harvest Volumes WW a in tons WFE 400 000 40% 300 000 20% 200 000 0% 100 000 -20% -40% January February March April May June July ‘August September October November December Figures as per: 2019 ©2020 ©2021 e¢ 2022 — Growth ---Zer
Slide 29: Atlantic Salmon Consumption
NOK/KG (NSI 3-6) Q1 pr w8: LEROY 107.53 68.39% (63.85) Atlantic Salmon Consumption Q2 Market 2019 2020 2021 2022 Growth Growth % EU 266100 268950 277535 268607 -8,928 -3.2% Others 172505 171337 185075 170657 -14,418 -7.8% USA 127813 132855 166594 162060 -4,534 -2.7% Japan 13675 16458 16600 12492 -4,
Slide 30: Outlook 2022
Klikke for å legge til annet bilde Outlook 2022 - Farming • Expected harvest volume 2022 incl. associates around 203,000GWT and growth from this level in 2023 • Contract share for salmon in Q3/22 around 35% • Expect lower cost H2/22 vs H1/22 - Wild Catch • Quotas for 2023. Expectations for 20% reduc
Slide 31: Capital Markets Day 2022
CAPITAL MARKETS DAY 2022 22-23 SEPTEMBER HITRA, NORWAY Some seats left. Click here to register: https://www.leroyseafood.com/en/investor/capital-markets- day-2022/
Slide 32: Value chain
- © & a _ VALUE CHAIN We carl 3
Slide 33: Contact
CONTACT – Henning Beltestad, hb@leroy.no CONTACT – Sjur Malm, sjur.malm@leroy.no