Grieg Seafood Asa · OSL:GSF
Grieg Seafood Asa — Q1 2016 Earnings Presentation
31 slides from Grieg Seafood Asa's earnings presentation, May 12, 2016
Slide 1: Grieg Seafood ASA Q1 2016
Grieg Seafood ASA Q1 2016 Andreas Kvame | CEO Atle Harald Sandtorv | CFO 12 May 2016 griegseafood.com 1
Slide 2: Agenda
Agenda • Highlights • Business Units (Regions) • Financials • Outlook griegseafood.com 2
Slide 3: Highlights Q1 2016
HIGHLIGHTS Q1 2016 griegseafood.com 3
Slide 4: Highlights Q1 2016
Highlights Q1 2016 • Best-ever quarterly results with EBIT of MNOK 214 (EBIT/kg NOK 15.7). • EBIT/kg NOK 19.6 in Norway (contract share 25%). • A historically strong market. • Stable sea production in all regions. • Harvested volume was 13 635 tons gutted weight. • The expected volume for 2016 is ma
Slide 5: Financial highlights Q1 2016
Financial highlights Q1 2016 Q1 2016 Q1 2015 Total operating income (TNOK) 1 299 397 1 033 616 EBITDA (TNOK) 252 345 108 047 EBIT before fair value adj. (TNOK) 214 382 70 042 EBIT / kg (NOK) 15,72 5,35 Harvest volume (tons gwe) 13 635 13 081 griegseafood.com 5
Slide 6: Business Units (Regions)
BUSINESS UNITS (REGIONS) griegseafood.com 6
Slide 7: Business units performance – Q1 2016
Business units performance – Q1 2016 EBIT before biomass adjustment/KG gwt griegseafood.com 7
Slide 8: GSF Rogaland
GSF Rogaland Q1 2016 Q1 2015 • Cost slightly down, further improvement in the cost level Harvest (gwt) 3 776 2 761 expected in Q2. Sales revenues 226 045 120 730 • Smolt and sea production as EBIT 72 932 16 067 planned in Q1. EBIT/kg 19,3 5,8 • Decided to expand the smolt plant in Rogaland. – Increa
Slide 9: GSF Finnmark
GSF Finnmark Q1 2016 Q1 2015 • Cost slightly down in Q1. Harvest (gwt) 6 296 5 042 Sales revenues 331 609 192 320 • Cost expected to be high in Q2. EBIT 124 566 23 769 – Øksfjorden will be harvested, lice challenges, decision to fallow. EBIT/kg 19,8 4,7 – Low harvest volume in Q2. • Cost expected to
Slide 10: GSF BC (Canada)
GSF BC (Canada) • Cost level expected to be stable Q1 2016 Q1 2015 ahead. Harvest (gwt) 1 324 1 840 • Sea production was stable Sales revenues 67 644 74 033 throughout Q1. EBIT 12 458 13 342 • Furunculosis at smolt plant EBIT/kg 9,4 7,3 – Normally external backup smolt replacing lost internal smolt.
Slide 11: GSF Shetland
GSF Shetland • Cost moving down, but low harvest Q1 2016 Q1 2015 volume in Q2 impacting cost/kg Harvest (gwt) 2 240 3 438 negatively. Sales revenues 131 333 194 903 • Smolt and sea production as planned in EBIT 731 11 285 Q1. EBIT/kg 0,3 3,3 • VAP equipment sold (MNOK 6.2), moving EBIT/kg up to NOK
Slide 12: Ocean Quality (GSF 60%, Bremnes 40%)
Ocean Quality (GSF 60%, Bremnes 40%) • Positive/stable margins in Norway. Norway: griegseafood.com 12
Slide 13: Financials
Financials griegseafood.com 13
Slide 14: Profit and Loss
Profit and Loss All figures in NOK 1,000 Q1 2016 Q1 2015 Total operating income 1 299 397 1 033 616 EBITDA 252 345 108 047 Depreciation and amortisation -37 962 -38 006 EBIT before biomass adj 214 382 70 042 Fair value adj biological assets 79 497 -112 793 EBIT after biomass adj. 293 879 -42 751 Sha
Slide 15: Net financial
Net financial All figures in NOK 1,000 Q1 2016 Q1 2015 Changes in fair value from hedging instruments -545 -5 604 Net financial interest -23 917 -22 614 Net currency gain (losses) -28 600 3 544 Dividends 0 0 Net other financial expenses/-income -699 -687 Net financial item -53 761 -25 361 griegseafo
Slide 16: Investments
Investments Maintenance level griegseafood.com 16
Slide 17: Cash Flow
Cash Flow Q1 2016 Q1 2015 Cash - opening balance 392 020 181 498 EBITDA 252 345 108 047 Inventory, trade payables and trade receivables -152 675 -4 107 Other adjustments 9 535 15 530 Cash flow from operations 109 205 119 470 Capital expenditure (fixed assets) -23 149 -119 779 Investments in associat
Slide 18: Net Interest Bearing Debt/EBITDA
Net Interest Bearing Debt/EBITDA NIBD NIBD/EBITDA (excl. factoring) (according to covenants) griegseafood.com 18
Slide 19: NIBD
NIBD MNOK Q1 2016 Q1 2015 Term Loan 1 143 833 Revolving Credit 400 275 Bond 0 400 Leasing 312 309 Other interest bearing debt 6 12 Cash - closing balance -369 -201 NIBD excl factoring 1 492 1 627 Factoring 319 155 griegseafood.com 19
Slide 20: Balance sheet 1
Balance sheet 1 ASSETS 31.03.16 31.03.15 Goodw ill 109 669 108 997 Licenses 1 076 927 1 073 923 Other intangible assets 17 577 13 974 Property, plant and equipment 1 477 482 1 475 818 Investments in associated and joint venture companies 14 748 29 078 Other non-current assets 5 193 2 829 Total non-c
Slide 21: Balance sheet 2
Balance sheet 2 EQUITY AND LIABILITIES 31.03.16 31.03.15 Share capital 446 648 446 648 Treasury Shares -5 000 -5 000 Retained earnings and other equity 1 956 067 1 758 206 Total equity 2 397 715 2 199 854 Deferred tax liabilities 578 877 545 237 Pension- and other obligations 9 351 1 612 Subordinate
Slide 22: Key financial indicators
Key financial indicators Q1 2016 Q1 2015 EBITDA-margin before adj biomass 19 % 10 % EBIT-margin before adj biomass 16 % 7% NIBD/EBITDA before adj biomass 3,9 4,0 ROCE before adj biomass 24 % 7% Equity ratio 41 % 41 % griegseafood.com 22
Slide 23: Outlook
OUTLOOK griegseafood.com 23
Slide 24: Harvest estimate
Harvest estimate Guiding 2016 Rogaland Finnmark BC Shetland GSF Group (1,000 tons gw e) Q1 3,8 6,3 1,3 2,2 13,6 Growth % 37 % 25 % -28 % -35 % 4% Q2 6,2 1,5 4,2 2,1 13,9 Growth % -11 % 18 % -28 % -42 % -21 % Q3-Q4 9,3 15,5 7,3 10,4 42,5 Total 19,2 23,3 12,8 14,7 70,0 Growth % 26 % 20 % -11 % -10 % 7
Slide 25: Supply outlook
Supply outlook Global supply growth farmed salmon (YoY): • Global supply moving down, 2016 vs 2015 expected to be -7%. Strong market is expected. • Norway – from positive to negative growth rate: • 2015: +3% • 2016: -4% (1,065’ MT) • Chile – negative growth rate: • 2015: +1% • 2016: -21% (420’ MT) •
Slide 26: Outlook summary/actions GSF
Outlook summary/actions GSF • Strong market expected ahead, including US. • Aim to bring the cost level down to the industry average, or lower. • 10% annual increase in production 2017-2019, increasing biomass in 2016. • GSF’s smolt programme - increasing number and size of smolt. o Increasing both
Slide 27: Thank you !
Thank you ! griegseafood.com 27
Slide 28: Appendix
APPENDIX griegseafood.com 28
Slide 29: Share info
Share info − Number of shares • 111.7 million (after full conversion of bonds in August 2009). − Last issues: Q2 2009 • 139 MNOK new share issue. − Subordinated convertible bond issue: Q1 2009 • 100 mill. convertible at NOK 4.00 per share within 31.12.2010. • 85% converted in Q2 2009. • 15% converte
Slide 30: Shareholders
Shareholders No. shares % GRIEG HOLDINGS 55 801 409 49,97 % DNB NOR MARKETS, AKSJEHAND/ANALYSE 22 144 074 19,83 % NORDEA BANK SVERIGE AB 6 582 998 5,90 % KONTRARI AS 4 881 172 4,37 % YSTHOLMEN 2 928 197 2,62 % OM HOLDING AS 2 610 000 2,34 % STATE STREET BANK AND TRUST CO. 1 305 901 1,17 % GRIEG SEAF
Slide 31: Profit and Loss
Profit and Loss All figures in NOK 1,000 Q1 2016 Q1 2015 Total operating incom e 1 299 397 1 033 616 Share of profit from joint venture -275 5 810 Change in inventories 1 078 92 974 Raw materials and consumables used -716 289 -690 814 Salaries and personnel expenses -123 024 -100 452 Other operating