Q1 2015 - PowerPoint PPT Presentation

Grieg Seafood ASA Q1 2015 ������������������������������������� ������������������������������������� ��� �!�"#�$ griegseafood.com 1

Agenda • Highlights • Business Units (Regions) • Financials • Outlook griegseafood.com 2

HIGHLIGHTS Q1 2015 griegseafood.com 3

Highlights Q1 2015 • 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 72 000 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. griegseafood.com

Financial highlights Q1 2015 Q1 2015 Q1 2014 Total operating income (TNOK) 1 033 616 1 026 275 EBITDA (TNOK) 108 047 175 687 EBIT before fair value adj. (TNOK) 70 042 143 246 EBIT / kg (NOK) 5,35 10,94 Harvest volume (tons gwe) 13 081 13 095 EBIT/kg excl. non-controlling interest OQ: NOK 4.9. • 0.1% volume decrease. • griegseafood.com 5

BUSINESS UNITS (REGIONS) griegseafood.com 6

Business units performance – Q1 2015 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) 2 761 2 138 5 042 5 775 1 840 1 053 3 438 4 129 Sales MNOK 121 110 192 256 74 59 195 199 griegseafood.com 7

GSF Rogaland Sea production was stable Q1 2015 Q1 2014 • throughout Q1. Harvest (gwt) 2 761 2 138 Sales revenues 120 730 110 480 EBIT 16 067 20 347 Harvest from PD locations and • with large treatment costs EBIT/kg 5,82 9,52 resulting in high Q1 2015 cost. of which Markets NOK/kg 1,02 0,40 Cost expected to still be high in • Q2, then moving down. griegseafood.com 8

GSF Finnmark Q1 2015 Q1 2014 Sea production was stable throughout • Q1. Harvest (gwt) 5 042 5 775 Sales revenues 192 320 255 960 EBIT 23 769 92 080 The EBIT of NOK 4.7 per kilo includes • profit of NOK 0.9 per kilo related to sale EBIT/kg 4,71 15,94 of a well boat. 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. griegseafood.com 9

GSF BC (Canada) • Ocean Quality was established in Q1 2015 Q1 2014 North America in Q1. The contribution from sales was NOK 1 Harvest (gwt) 1 840 1 053 per kilo in Q1 2015. Sales revenues 74 033 58 562 EBIT 13 342 -5 724 • The biological situation was EBIT/kg 7,25 -5,44 favourable in 2014 and the of which Markets NOK/kg 0,98 production volume in the region has increased. The overall effect of this is reduced cost of harvested fish in Q1 2015. • Sea and smolt production was also stable throughout Q1 2015. • Price pressure due to large Canadian industry supply increase. griegseafood.com 10

GSF Shetland • Ocean Quality continues to show Q1 2015 Q1 2014 good margins. Contribution from sales Harvest (gwt) 3 438 4 129 NOK 2 per kg in Q1. Sales revenues 194 903 198 682 • Sea and smolt production was stable EBIT 11 285 41 618 throughout Q1 2015. EBIT/kg 3,28 10,08 of which Markets NOK/kg 2,01 • The fish harvested in Q1 were characterised by high sea lice treatment costs. • 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. • griegseafood.com 11

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

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

Financials griegseafood.com 14

Profit and Loss Q1 2015 Q1 2014 All figures in NOK 1,000 Total operating income 1 033 616 1 026 275 EBITDA 108 047 175 687 Depreciation and amortisation -38 006 -32 441 EBIT before biomass adj 70 042 143 246 Fair value adj biological assets -112 793 -50 983 EBIT after biomass adj. -42 751 92 263 Share of profit from ass. companies 889 1 669 Net financial -25 361 -22 177 Profit before tax -67 223 71 756 Estimated taxation 15 838 -15 406 Net profit in the period -51 385 56 350 griegseafood.com 15

Net financial Q1 2015 Q1 2014 All figures in NOK 1,000 Changes in fair value from hedging instruments -5 604 1 496 Net financial interest -22 614 -21 043 Net currency gain (losses) 3 544 -1 874 Dividends 0 0 Net other financial expenses/-income -688 -755 Net financial item -25 361 -22 177 griegseafood.com 16

Investments Capex Maintenance level * * Green licenses Finnmark included in 2014 figures – 40 MNOK griegseafood.com 17

Cash Flow Q1 2015 Q1 2014 Cash - opening balance 181 498 182 258 EBITDA 108 047 175 687 Inventory, trade payables and trade receivables -4 107 -50 766 Other adjustments 15 530 -25 885 Cash flow from operations 119 470 99 036 Capital expenditure (fixed assets) -119 779 -40 711 Investments in associated companies/shares 0 0 Change in other non-current receiveables -17 -2 Cash flow from investments -119 796 -40 713 Changes in interest-bearing debt 37 673 64 968 Paid dividends 0 0 Net interest and financial items -19 073 -20 293 Cash flow from financing 18 600 44 675 Currency effect on cash - opening balance 1 448 971 Changes in cash (incl currency effect on cash) 19 722 103 969 Cash - closing balance 201 220 286 227 griegseafood.com 18

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

NIBD Q1 2015 Q1 2014 MNOK Term Loan 833 530 Revolving Credit 275 500 Bond 400 400 Leasing 309 218 Other interest bearing debt 12 5 Cash - closing balance -201 -286 NIBD excl factoring 1 627 1 367 Factoring 155 206 griegseafood.com 20

Balance sheet 1 31.03.15 31.03.14 ASSETS Goodw ill 108 997 107 155 Licenses 1 073 923 987 496 Other intangible assets 13 974 5 185 Property, plant and equipment 1 475 818 1 202 010 Investments in associtated and joint venture companies 29 078 31 569 Other non-current assets 2 828 1 634 Total non-current assets 2 704 617 2 335 050 Inventories 92 612 60 371 Biological assets 1 655 074 1 372 663 Fair value biological assets 168 385 350 253 Accounts receivable 394 446 369 116 Other current receivables 96 788 100 845 Derivates and other financial instruments 0 0 Cash and cash equivalents 201 220 286 227 Total current assets 2 608 524 2 539 476 Total assets 5 313 142 4 874 526 griegseafood.com 21

Balance sheet 2 31.03.15 31.03.14 EQUITY AND LIABILITIES Share capital 446 648 446 648 Treasury Shares -5 000 -5 000 Retained earnings and other equity 1 758 206 1 595 540 Total equity 2 199 854 2 037 188 Deferred tax liabilities 545 237 566 245 Pension- and other obligations 1 612 788 Subordinated loans 22 900 21 679 Borrow ings and leasing 1 257 164 1 001 944 Total non-current liabilities 1 826 914 1 590 656 Short-term loan facilities 562 117 646 016 Factoring 154 916 205 758 Accounts payable 339 908 278 023 Tax payable 55 254 2 805 Derivates and other financial instruments 30 526 6 939 Other current liabilities 143 652 107 141 Total current liabilities 1 286 374 1 246 682 Total liabilities 3 113 287 2 837 338 Total equity and liabilities 5 313 142 4 874 526 griegseafood.com 22

Key financial indicators Q1 2015 Q1 2014 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 % griegseafood.com 23

OUTLOOK griegseafood.com 24