Q4 2014 - PowerPoint PPT Presentation

Grieg Seafood ASA Q4 2014 ������������������������������������� ����������������� ������������ !�" griegseafood.com 1

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

HIGHLIGHTS Q4 2014 griegseafood.com 3

Highlights Q4 2014 • EBIT before FV adjustment of biomass MNOK 140 in Q4 2014. • EBIT before FV adjustment of biomass MNOK 341 YTD. • MNOK 60 gain from sales of SalmoBreed AS included in above EBIT. • Good seawater production in BC. • Gill disease in combination with sea lice treatment causing MNOK 19 write down in Shetland. • Increasing prices, but weaker marked due to trade sanctions against Russia. • Andreas Kvame new CEO, starting within 1 June. Tekst griegseafood.com

Financial highlights Q4 2014 Q4 2014 Q4 2013 YTD 2014 YTD 2013 Total operating income (TNOK) 765 829 695 711 2 739 041 2 425 041 EBITDA (TNOK) 181 495 121 939 481 466 484 330 EBIT before fair value adj. (TNOK) 140 140 86 975 340 857 348 293 EBIT / kg (NOK) 8,79 5,44 5,27 6,00 Harvest volume (tons gwe) 15 941 15 995 64 736 58 061 EBIT/kg excl. capital gain SalmoBreed: NOK 5,0. • 0.3% volume decrease. • 1.4% average increase in realised prices. • griegseafood.com 5

BUSINESS UNITS (REGIONS) griegseafood.com 6

Business units performance – Q3 2014 EBIT before biomass adjustment/KG gwt 8,06 6,98 6,58 8,79 0,16 -13,44 4,15 6,29 Rogaland Finnmark BC Scotland Q4 14 Q4 13 Q4 14 Q4 13 Q4 14 Q4 13 Q4 14 Q4 13 Harvest (gwt) 3 175 2 617 5 804 5 735 620 878 6 342 6 765 Sales MNOK 147 119 210 209 42 62 303 301 griegseafood.com 7

Business units performance – YTD 2014 EBIT before biomass adjustment/KG gwt 6,09 9,60 7,78 9,39 -7,64 -1,15 4,22 2,07 Rogaland Finnmark BC Scotland YTD14 YTD13 YTD14 YTD13 YTD14 YTD13 YTD14 YTD13 Harvest (gwt) 12 778 15 088 26 470 23 076 6 257 6 739 19 231 13 158 Sales MNOK 573 641 975 870 278 331 852 567 griegseafood.com 8

GSF Rogaland Seawater production as expected. • Q4 2014 Q4 2013 YTD 2014 YTD 2013 The growth rate among fish previously • Harvest (gwt) 3 175 2 617 12 778 15 088 affected by PD slightly lower than Sales revenues 146 968 119 194 572 550 640 584 normal. EBIT 25 598 18 276 77 835 144 794 Harvest late in the quarter affecting • EBIT/kg 8,06 6,98 6,09 9,60 average price positive. of which Markets NOK/kg -0,30 0,87 0,55 0,58 Harvest from PD and AGD locations • moving the cost up. griegseafood.com 9

GSF Finnmark Q4 2014 Q4 2013 YTD 2014 YTD 2013 Seawater production as expected, except for • occurrence of IPN in some locations. Harvest (gwt) 5 804 5 735 26 470 23 076 Sales revenues 209 696 209 204 975 291 870 081 Challenges with maturation early in the • EBIT 38 175 50 424 205 934 216 778 quarter moving the average price down. EBIT/kg 6,58 8,79 7,78 9,39 Cost in Q4 was slightly lower than the • of which Markets NOK/kg 0,27 0,04 0,30 0,13 corresponding figure for fish harvested in Q3 2014. However, there are variances in cost per location harvested. Final allocation of 4 green licences. • Harvest guiding down in 2015 due to site/area • structure, moving the cost/kg up. griegseafood.com 10

GSF BC (Canada) Seawater production better than planned • in Q4. Q4 2014 Q4 2013 YTD 2014 YTD 2013 Harvest (gwt) 620 878 6 257 6 739 Smolt production according to plan in Q4. • Sales revenues 41 704 62 431 277 757 330 682 Low harvest volume in Q4 . • EBIT 97 -11 806 -47 810 -7 777 Cost expected to decrease in 2015. • EBIT/kg 0,16 -13,44 -7,64 -1,15 griegseafood.com 11

GSF Shetland Gill disease combined with sea lice • Q4 2014 Q4 2013 YTD 2014 YTD 2013 treatment caused increase in Harvest (gwt) 6 342 6 765 19 231 13 158 mortality. Sales revenues 302 904 301 209 852 455 567 432 The fish harvested in Q4 were • EBIT 26 334 42 565 81 087 27 279 affected by high treatment costs. EBIT/kg 4,15 6,29 4,22 2,07 Sales margin from OQ increasing. • of which Markets NOK/kg 2,84 1,09 griegseafood.com 12

Ocean Quality (sales Norway/UK – associated company – 60%) Negative development in Norway: • Total margin moving down. • Price achieved vs. market (NOS): 101% • Contract share Norway 8%. • Stronger performance in Shetland: • Positive margin from sales. • Price achieved vs. market (NOS + 5,15): 108% • Contract share UK 31%. • Norway: UK: griegseafood.com 13

Financials griegseafood.com 14

Profit and Loss Q4 2014 Q4 2013 YTD 2014 YTD 2013 All figures in NOK 1,000 Total operating income 765 829 695 711 2 739 041 2 425 041 EBITDA 181 495 121 939 481 466 484 330 Depreciation and amortisation -41 355 -34 964 -140 609 -136 037 EBIT before biomass adj 140 140 86 975 340 857 348 293 Fair value adj biological assets 116 967 174 494 -127 108 267 450 EBIT after biomass adj. 257 107 261 468 213 749 615 743 Share of profit from ass. companies -78 166 2 865 2 244 Net financial -162 -17 169 -55 722 -73 057 Profit before tax 256 867 244 466 160 892 544 930 Estimated taxation -48 097 -29 246 -22 806 -113 945 Net profit in the period 208 770 215 219 138 086 430 985 griegseafood.com 15

Net financial Q4 2014 Q4 2013 YTD 2014 YTD 2013 All figures in NOK 1,000 Changes in fair value from hedging instruments -11 754 -695 -8 377 4 276 Net financial interest -20 984 -24 923 -85 416 -95 486 Net currency gain (losses) 34 507 9 808 45 994 25 882 Dividends 0 27 474 495 Net other financial expenses/-income -1 931 -1 386 -8 396 -8 224 Net financial item -162 -17 169 -55 722 -73 057 griegseafood.com 16

Investments Capex Maintenance level griegseafood.com 17

Cash Flow Q4 2014 Q4 2013 YTD 2014 YTD 2013 Cash - opening balance 123 513 227 338 163 913 239 885 EBITDA 181 495 121 939 481 466 484 330 Inventory, trade payables and trade receivables -318 137 -188 357 -310 823 -177 099 Other adjustments 53 288 -9 228 18 017 10 051 Cash flow from operations -83 354 -75 646 188 660 317 282 Capital expenditure (fixed assets) -195 178 -57 972 -337 014 -163 961 Investments in associated companies/shares 66 966 0 71 920 16 397 Change in other non-current receiveables -76 -28 47 777 Cash flow from investments -128 288 -58 000 -265 047 -146 787 Changes in interest-bearing debt 246 822 90 267 119 062 -162 340 Paid dividends 0 0 0 0 Net interest and financial items -19 204 -19 679 -67 338 -86 285 Cash flow from financing 227 618 70 588 51 724 -248 625 Currency effect on cash - opening balance 4 514 -367 4 753 2 158 Changes in cash (incl currency effect on cash) 20 490 -63 425 -19 910 -75 972 Cash - closing balance 144 003 163 913 144 003 163 913 griegseafood.com 18

Net Interest Bearing Debt NIBD NIBD/EBITDA 1 600 6 1 400 4 1 200 2 1 000 Q1 14 Q2 14 Q3 14 Q3 13 Q4 13 NIBD NIBD/EBITDA griegseafood.com 19

NIBD Q4 2014 Q4 2013 MNOK Term Loan 855 555 Revolving Credit 200 425 Bond 400 400 Leasing 290 216 Other interest bearing debt 3 12 Cash - closing balance -144 -164 NIBD 1 604 1 445 griegseafood.com 20

Balance sheet 1 31.12.14 31.12.13 ASSETS Goodw ill 108 708 107 310 Licenses 1 066 184 994 066 Other intangible assets 11 517 4 545 Property, plant and equipment 1 424 562 1 204 207 Investments in associtated and joint venture companies 41 937 41 190 Other non-current assets 1 585 2 667 Total non-current assets 2 654 493 2 353 986 Inventories 88 250 74 015 Biological assets 1 562 812 1 368 321 Fair value biological assets 281 285 398 011 Accounts receivable 254 043 177 815 Other current receivables 57 287 54 015 Derivates and other financial instruments 0 518 Cash and cash equivalents 144 003 163 913 Total current assets 2 387 679 2 236 608 Total assets 5 042 172 4 590 594 griegseafood.com 21

Balance sheet 2 31.12.14 31.12.13 EQUITY AND LIABILITIES Share capital 446 648 446 648 Treasury Shares -5 000 -5 000 Retained earnings and other equity 1 780 270 1 546 910 Total equity 2 221 918 1 988 558 Deferred tax liabilities 559 542 557 350 Pension- and other obligations 2 532 610 Subordinated loans 22 795 22 598 Borrow ings and leasing 1 196 103 1 022 354 Total non-current liabilities 1 780 972 1 602 913 Short-term loan facilities 540 895 582 209 Accounts payable 300 521 317 753 Tax payable 50 645 1 471 Derivates and other financial instruments 23 475 11 631 Other current liabilities 123 746 86 059 Total current liabilities 1 039 282 999 124 Total liabilities 2 820 254 2 602 036 Total equity and liabilities 5 042 172 4 590 594 griegseafood.com 22

Key financial indicators Q4 2014 Q4 2013 YTD 2014 YTD 2013 EBITDA-margin before adj biomass 24 % 18 % 18 % 20 % EBIT-margin before adj biomass 18 % 13 % 12 % 14 % NIBD/EBITDA before adj biomass 3,3 3,0 3,3 3,0 ROCE before adj biomass 16 % 12 % 10 % 12 % Equity ratio 44 % 43 % 44 % 43 % griegseafood.com 23

OUTLOOK griegseafood.com 24