Grieg Seafood ASA Q Per Grieg jr. Chairman of the board. Atle Harald Sandtorv CFO/Acting CEO. 11 May griegseafood.com

Transcription

1 Grieg Seafood ASA Q Per Grieg jr. Chairman of the board Atle Harald Sandtorv CFO/Acting CEO 11 May

2 Agenda Highlights Business Units (Regions) Financials Outlook 2

3 HIGHLIGHTS Q

4 Highlights Q EBIT before fair value adjustment of biomass was MNOK 70 in Q1 (MNOK 143 in 2014). Production has been good throughout the period, with volume indication for 2015 maintained at tons. Some of the expected Q1 volume has been moved to Q2. High costs on harvested fish in the company s European regions. Higher production and lower costs in BC. Strong underlying market in Europe, but price pressure as a consequence of increased offer and a closed Russian market. Considerable falling/descending prices in the American market. With the establishment of Ocean Quality in North America, sales from all GSF regions are now handled through this organisation. OQ is consolidated as a subsidiary of GSF.

5 Financial highlights Q Q Q Total operating income (TNOK) EBITDA (TNOK) EBIT before fair value adj. (TNOK) EBIT / kg (NOK) 5,35 10,94 Harvest volume (tons gwe) EBIT/kg excl. non-controlling interest OQ: NOK % volume decrease. 5

6 BUSINESS UNITS (REGIONS) 6

7 Business units performance Q EBIT before biomass adjustment/kg gwt 5,82 9,52 4,71 15,94 7,25-5,44 3,28 10,08 Rogaland Finnmark BC Scotland Q1 15 Q1 14 Q1 15 Q1 14 Q1 15 Q1 14 Q1 15 Q1 14 Harvest (gwt) Sales MNOK

8 GSF Rogaland Sea production was stable throughout Q1. Harvest from PD locations and with large treatment costs resulting in high Q cost. Q Q Harvest (gwt) Sales revenues EBIT EBIT/kg 5,82 9,52 of which Markets NOK/kg 1,02 0,40 Cost expected to still be high in Q2, then moving down. 8

9 GSF Finnmark Sea production was stable throughout Q1. The EBIT of NOK4.7 per kilo includes profit of NOK0.9 per kilo related to sale of a well boat. Q Q Harvest (gwt) Sales revenues EBIT EBIT/kg 4,71 15,94 of which Markets NOK/kg 0,35 0,05 Cost in Q1 was high as fish were harvested from inefficient locations. Low harvest volume in 2015 will affect the cost negatively. In 2016 harvest volume will increase and cost will move down. 9

10 GSF BC (Canada) Ocean Quality was established in North America in Q1. The contribution from sales was NOK 1 per kilo in Q The biological situation was favourable in 2014 and the production volume in the region has increased. The overall effect of this is reduced cost of harvested fish in Q Q Q Harvest (gwt) Sales revenues EBIT EBIT/kg 7,25-5,44 of which Markets NOK/kg 0,98 Sea and smolt production was also stable throughout Q Price pressure due to large Canadian industry supply increase. 10

11 GSF Shetland Ocean Quality continues to show good margins. Contribution from sales NOK 2 per kg in Q1. Sea and smolt production was stable throughout Q The fish harvested in Q1 were characterised by high sea lice treatment costs. Q Q Harvest (gwt) Sales revenues EBIT EBIT/kg 3,28 10,08 of which Markets NOK/kg 2,01 Processing of fish (filleting and smoking) has been temporarily stopped. High costs in Q2 due to gill disease and lice challenges on 13 generation to be harvested. First smolt batch from new hatchery. 11

12 Ocean Quality (GSF 60%, Bremnes 40%) Total margin moving up in Norway. North America: High margin in UK. Positive margin in North America in the first quarter with a new sales organization. Norway: UK: 12

13 Improvements and targets Targets Prosesses Be the best farmer in our regions on cost Mortality below 14% on generation (93%yearly survival) Increase MAB utilization to 1200 t gw per year (Norway) Segmentation of markets to maximize price Keep the fish alive Focus on planning, execution and quality Organize for best practice Install sense of urgency in organization Future foundation ITC integration 13

14 Financials 14

15 Profit and Loss All figures in NOK 1,000 Q Q Total operating income EBITDA Depreciation and amortisation EBIT before biomass adj Fair value adj biological assets EBIT after biomass adj Share of profit from ass. companies Net financial Profit before tax Estimated taxation Net profit in the period

16 Net financial All figures in NOK 1,000 Q Q Changes in fair value from hedging instruments Net financial interest Net currency gain (losses) Dividends 0 0 Net other financial expenses/-income Net financial item

17 Investments Capex Maintenance level * Green licenses Finnmark included in 2014 figures 40 MNOK * 17

18 Cash Flow Q Q Cash - opening balance EBITDA Inventory, trade payables and trade receivables Other adjustments Cash flow from operations Capital expenditure (fixed assets) Investments in associated companies/shares 0 0 Change in other non-current receiveables Cash flow from investments Changes in interest-bearing debt Paid dividends 0 0 Net interest and financial items Cash flow from financing Currency effect on cash - opening balance Changes in cash (incl currency effect on cash) Cash - closing balance

19 Net Interest Bearing Debt/EBITDA NIBD (excl factoring) NIBD/EBITDA (according to covenants) 19

20 NIBD MNOK Q Q Term Loan Revolving Credit Bond Leasing Other interest bearing debt 12 5 Cash - closing balance NIBD excl factoring Factoring

21 Balance sheet 1 ASSETS Goodw ill Licenses Other intangible assets Property, plant and equipment Investments in associtated and joint venture companies Other non-current assets Total non-current assets Inventories Biological assets Fair value biological assets Accounts receivable Other current receivables Derivates and other financial instruments 0 0 Cash and cash equivalents Total current assets Total assets

22 Balance sheet 2 EQUITY AND LIABILITIES Share capital Treasury Shares Retained earnings and other equity Total equity Deferred tax liabilities Pension- and other obligations Subordinated loans Borrow ings and leasing Total non-current liabilities Short-term loan facilities Factoring Accounts payable Tax payable Derivates and other financial instruments Other current liabilities Total current liabilities Total liabilities Total equity and liabilities

23 Key financial indicators Q Q EBITDA-margin before adj biomass 10 % 17 % EBIT-margin before adj biomass 7 % 14 % NIBD/EBITDA before adj biomass 4,0 2,4 ROCE before adj biomass 7 % 18 % Equity ratio 41 % 42 % 23

24 OUTLOOK 24

25 Harvest estimate Guiding 2015 (1,000 tons gw e) Rogaland Finnmark BC Shetland GSF Group Q1 2,8 5,0 1,8 3,4 13,1 Growth % 29 % -13 % 75 % -17 % 0 % Q2 6,4 1,1 5,5 3,7 16,7 Growth % 18 % -86 % 225 % -5 % -12 % Q3-Q4 11,4 15,8 5,7 9,4 42,3 Growth % 117 % 24 % 62 % -16 % 29 % Total 20,5 22,0 13,0 16,5 72,0 Growth % 60 % -17 % 108 % -14 % 11 % 2015 guidance of 72,000 MT. Production in BC close to normal. Finnmark/Shetland guiding down due to site/area structure, expected to increase in

26 Supply outlook Global supply growth moving down, 2015 vs 2014 expected to be 3%. Global supply growth farmed salmon (YoY): Norway - stable growth rate: 2014: +5% 2015: +5% (1,135 MT) Chile form positive to negative growth rate: 2014: +25% 2015: -3%(508 MT) Canada from negative to positive growth rate: 2014: -11% 2015: +19% (130 MT) NASDAQ (Norway) price development : UK stable growth rate: 2014: +9% 2015: +4% (161 MT) 26

27 Outlook summary Limited supply growth is expected to result in a strong market in the period ahead, but with the possibility of regional variations in the short term. Harvest volume guiding 2015 of 72,000 MT. Increasing 7,000 MT vs Growth expected to continue in The harvested volume in Q is expected to be 16,700 MT. It is expected high costs for the fish which will be harvested in the company s European regions in Q2. Ocean Quality has expanded its activities to include the sale of GSF s fish in BC. All of the fish produced by GSF is now sold through Ocean Quality, Short term price pressure in North America New CEO, Andreas Kvame, will start 1 June The company s main goal is lower cost through continuous improvement of biological performance, including better utilisation of licences/equipment. 27

28 Thank you! 28

29 APPENDIX 29

30 Share info Number of shares million (after full conversion of bonds in August 2009). Last issues: Q MNOK new share issue. Subordinated convertible bond issue: Q mill. convertible at NOK 4.00 per share within % converted in Q % converted in Q EPS 0,5 NOK/share Q ,5 NOK/share Q Shareholder structure Largest 20 have 94.12% of total no. of shares. 30

31 Shareholders No. shares % GRIEG HOLDINGS ,97 % DNB NOR MARKETS, AKSJEHAND/ANALYSE ,94 % NORDEA BANK NORGE ASA MARKETS ,92 % KONTRARI AS ,87 % YSTHOLMEN ,62 % OM HOLDING AS ,34 % STATE STREET BANK AND TRUST CO ,16 % GRIEG SEAFOOD ASA ,12 % KVASSHØGDI AS ,90 % GRIEG SHIPPING II AS ,74 % SKANDINAVISKA ENSKILDA BANKEN AB ,74 % VERDIPAPIRFONDET PARETO NORDIC ,43 % STOREBRAND VEKST ,40 % VERDIPAPIRFONDET DNB SMB ,40 % THE BANK OF NEW YORK MELLON ,36 % HSBC BANK PLC ,34 % MP PENSJON PK ,25 % SVENSKA HANDELSBANKEN AB ,24 % SKANDINAVISKA ENSKILDA BANKEN AB ,20 % GRIEG LTD A/S ,19 % Total 20 largest shareholders ,12 % Total other ,88 % Total numbers of shares ,00 % 31

32 Profit and Loss All figures in NOK 1,000 Q Q Total operating income Share of profit from joint venture Change in inventories Raw materials and consumables used Salaries and personnel expenses Other operating expenses EBITDA Depreciation and amortisation Depreciation and amortisation of licenses Impairment adjustments on assets 0 0 EBIT before biomass adj Fair value adj biological assets EBIT after biomass adj Share of profit from ass. companies Net financial Profit before tax and biomass adj Profit before tax Estimated taxation Net profit in the period