Leroy Seafood Group Asa · OSL:LSG
Leroy Seafood Group Asa — Q3 2022 Earnings Presentation
32 slides from Leroy Seafood Group Asa's earnings presentation, Nov 15, 2022
Slide 1: Third quarter 2022 results
Lergy Seafood Group ASA Third quarter 2022 results Henning Beltestad Sjur Malm CEO CFO 15 November 2022
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: LSG Farming, Wild Catch and VAPS&D
L SG Farming & VAPS&D VAPS&D L SG Wild Catch Farming
Slide 4: Resource tax proposal
LEROY 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, which includes significant redu
Slide 5: Highlights of the quarter
LEROY Highlights of the quarter EBIT* (NOKm) +252 IB EBIT* (NOKm) Record-high turnover, with EBIT* up 44% compared to Q3 21 Lower prices gives lower margin in farming, but improvement in om VAPS&D Total harvest volume around 202,000 GWT expected for 2023** Positive development in WildCatch Resource
Slide 6: Segments
SEGMENTS
Slide 7: Farming highlights this quarter
Farming highlights this quarter • • • • •
Slide 8: Leroy Aurora
Leroy Aurora * Strong biological performance * Significant q-o-q decrease in costs. Cost higher than last year, but lower than inflationary trend * Expect harvest volume of 40,000 GWT in 2022 and 46,000 GWT in 2023 djustment 1 100% basis y Aurora Revenue (NOKm) EBIT* (NOKm) Harvested volume (GWT) Q3
Slide 9: Leroy Midt
. yy Midt Q3 2022 Q3 2021 YTD 2022 YTD 2021 Leroy Midt Revenue (NOKm) 1491 1251 3546 3032 EBIT* (NOKm) 413 207 1174 4 Harvested volume (GWT) 21896 22 922 47794 * Q-o-q reduction in cost. Increase in cost compared to last year but lower than inflationary trend EBIT pr kg (in NOK) * More challenging b
Slide 10: Leroy Sjøtroll
Leroy Sjotroll Challenging biological quarter. High number of treatments impacts growth Cost increase q-o-q Expect harvest volume of 66,000 GWT in 2022 and 68,000 GWT in 2023 Leray Sjetroll Q3 2022 Q3 2021 YTD 2022 YTD 2021 Revenue 1226 937 3.476 2789 EBIT* 106 72 743 310 Harvested volume (GWT) 18 6
Slide 11: Scottish Seafarms / Norskott Havbruk (50% owned)
ott Havbruk (50% owned) 100% basis, in NOKm Q3 2022 Q32021 YTD 2022 YTD 2021 Revenues 972 773 2495 1963 EBIT* 47 80 342 273 Harvested volume (GWT) 11290 10 126 28 619 27 447 . EBIT/kg * 42 79 12,0 99 Results negatively impacted by environmental issues 3 related to micro-jellyfish and gill health NIB
Slide 12: Farming volumes 2019-2025E
Farming volumes 2019 2020 2021 2022E 2023E 2024E 2025E Lergy Aurora AS 32,8 35,0 44,0 40,3 46,0 48,0 50,0 Leray Midt AS 64,8 679 72,6 68) 66,0 75,0 80,0 Leroy Sjotroll 60,6 68,0 70,0 66,4 68,0 72,0 75,0 Total Norway 158,2 170,9 186,6 174,8 180,0 195,0 205,0 Scottish Seafarms (Ler@y's 50% share) 12,9
Slide 13: Wild catch highlights this quarter
Wild catch highlights this quarter • • • •
Slide 14: Catch and quota
catch quo Remaining Remaining quota Species Q3 22 Q321 YTD 2022 YTD 2021 quota 2022 2021 Cod 4, 34 179 17,7 6) 13,9 Saithe 2,8 2,5 10,2 99 75 8,5 Haddock 02 09 9,0 93 17 7,0 Shrimps 3, 43 93 94 Other 46 1,3 12,2 8,0 Total 14,9 12,3 58,6 54,4 15,3 29,4
Slide 15: VAP S&D highlights this quarter
VAP S&D highlights this quarter • • •
Slide 16: Our sales and processing operations now span countries
LEROY Our sales and processing operations now span 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 17: 1. Highlights 2. Key financial highlights 3. Outlook
1. Highlights 2. Key financial highlights 3. Outlook
Slide 18: Highlights this quarter: Profit and Loss statement
LEROY Profit and Loss statement (NOKm) Q3 2022 Q3 2021 A% Revenue 7441 6325 18% Other gains and losses 8 6 EBITDA 1173 895 31% Highlights flis. quarter Depreciation & amortisation 342 316 EBIT* 831 579 44% Income from associates* 19 38 Net finance +66 A2 * High prices and volume brings Pre-tax profi
Slide 19: Highlights this quarter
Highlights this quarter • • • • •
Slide 20: Change in net interest-bearing debt this quarter
Change in net interest-bearing debt this quarter NOKm 5000 4917 4410 4000 3000 2000 1000 187 294 162 -1000 1173 -2000 Opening Q3 2022 EBITDA Change working Capex Dividends paid Net Payable tax Other items Closing Q3 2022 capital finance+lFRS 16 effects* “Includes instalments on lease liabilities to
Slide 21: Significant ripple effects in Norway
LEROY Significant ripple effects in Norway More than 3,000 employed directly by Leray 60 municipalities where we operate 12.8 bn NOK in purchased goods from more than 280 Norwegian municipalities and 4 500 suppliers 647.5 mill. NOK in paid taxes from our employees 13 000 persons in Norway from our o
Slide 22: 1. Highlights 2. Key financial highlights 3. Outlook
1. Highlights 2. Key financial highlights 3. Outlook
Slide 23: 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% 1877600) -0.9% 1922800 24%
Slide 24: Spot prices, fresh Atlantic salmon
Quarter 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 LE ROY Qi 26 29 34 #40 27 #36 #47 «#41 #58 65 60 61 68 52 80 a2 26 36 «641 #38 «+28 #42 #40 38 #+%64 #67 #68 62 58 63 105 Q3 28 32 39 «27 «622606 «6338 «= 35 41 0 56 55 49 47 55D Spot Prices, Fresh Atlantic Salmon tia
Slide 25: Atlantic Salmon - Harvest Volumes Norway
LEROY Atlantic Salmon - Harvest Volumes Norway in tons WFE 200 000 150 000 100 000 50 000 January February March April May June July 2020 ©2021 °2022 * 2023 — Growth August ---Zero-line September Figures as per: 31.10.2022 Source: Kontali October November December 2023 40% 20% 0% -20% -40%
Slide 26: Atlantic Salmon - Harvest Volumes WW
LEROY. 2028 Atlantic Salmon - Harvest Volumes WW in tons WFE 300 000 30% 250 000 20% 200 000 10% 150 000 0% 100 000 10% 50 000 -20% -30% January February March April May June July August September October November December Figures as per: 2020 ©2021 °2022 * 2023 — Growth ---Zero-line 31.10.2022 Sour
Slide 27: Atlantic Salmon Consumption
LEROY Atlantic Salmon Consumption Q3 Figures as per: 31.10.2022 Source: Kontali 400 000 350 000 300 000 250 000 200 000 150 000 100 000 50000 a3 Market 2020 2021 2022 Chng Chng % EU 328700 345900 364100 18200 5% USA 145000 156300 «160900 4600 3% Russia 23 800 18.400 15300-3100 -17% Japan 18700 16 10
Slide 28: Outlook strongly affected by resource taxation
LEROY Outlook strongly affected by resource taxation Proposed “resource tax" may impact from 1 January 2023 and brings significant uncertainty Contract share in Q4/22 of 38%. Contract share 2023 of 1% Expect harvest volume incl. share of associated of around 202,000 GWT in 2023 Inflationary trend wi
Slide 29: 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 30: Q&A
Q&A
Slide 31: Disclaimer
LEROY Disclaimer This presentation has been produced by Leray 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 sole
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