Grieg Seafood ASA · OSL:GSF
Grieg Seafood ASA — Q4 2016 Earnings Presentation
31 slides from Grieg Seafood ASA's earnings presentation, Feb 16, 2017
Slide 1: Grieg Seafood ASA
Grieg Seafood ASA Andreas Kvame | CEO Atle Harald Sandtorv | CFO 16 February 2017 griegseafood.com 1
Slide 2: Agenda
Agenda • Highlights • Business Units (Regions) • Financials • Outlook griegseafood.com 2
Slide 3: Highlights Q4 2016
HIGHLIGHTS Q4 2016 griegseafood.com 3
Slide 4: Highlights Q4 2016
Highlights Q4 2016 • GSF’s best quarter ever with EBIT of MNOK 456 (EBIT per kg: NOK 21.80). • High harvest volume (20 917 tons) in a strong market. • The Board proposes a dividend of NOK 3 per share. • EBIT per kg: NOK 27.9 in Norway. – Fixed price contracts account for 32% of turnover. – ISA outbr
Slide 5: Financial highlights Q4 2016
Financial highlights Q4 2016 Q4 2016 Q4 2015 YTD 2016 YTD 2015 Total operating income (TNOK) 2 069 178 1 189 313 6 603 591 4 638 370 EBITDA (TNOK) 502 039 86 907 1 341 661 261 311 EBIT before fair value adj. (TNOK) 456 115 43 118 1 167 745 47 742 EBIT / kg (NOK) 21,81 2,82 18,04 0,73 Harvest volume
Slide 6: Business Units (Regions)
BUSINESS UNITS (REGIONS) griegseafood.com 6
Slide 7: Business units performance – Q4 2016
Business units performance – Q4 2016 EBIT before FV adjustment/KG gwt griegseafood.com 7
Slide 8: Business units performance – YTD 2016
Business units performance – YTD 2016 EBIT before FV adjustment/KG gwt griegseafood.com 8
Slide 9: GSF Rogaland
GSF Rogaland • Harvesting volume up Q4 2016 Q4 2015 YTD 2016 YTD 2015 compared to Q3. Harvest (gwt) 5 766 3 713 18 367 15 236 • Cost moving down to a Sales revenues 371 113 183 904 1 140 398 666 074 normalised level. EBIT 177 054 37 854 466 756 83 516 • Stable and good production EBIT/kg 30,7 10,2 2
Slide 10: GSF Finnmark
GSF Finnmark • Harvesting volume up compared to Q3. Q4 2016 Q4 2015 YTD 2016 YTD 2015 • Cost, excluding ISA, moving Harvest (gwt) 9 336 5 348 22 104 19 481 down to a normalised level. Sales revenues 580 942 240 521 1 244 255 799 824 • ISA in Hammerfest. EBIT 244 317 57 721 447 131 124 004 – Increasi
Slide 11: GSF BC (Canada)
GSF BC (Canada) • Algae in 2016. Q4 2016 Q4 2015 YTD 2016 YTD 2015 – Causing high cost in Q4 2016. Harvest (gwt) 1 917 2 245 10 715 14 311 – Cost expected also to be high in Q1 2017. Sales revenues 119 013 112 750 615 438 573 900 – Reduced fish quality and lower EBIT 13 367 22 426 80 526 13 310 real
Slide 12: GSF Shetland
GSF Shetland • Harvesting from high-cost Q4 2016 Q4 2015 YTD 2016 YTD 2015 locations in Q4 2016. Harvest (gwt) 3 897 3 974 13 541 16 370 • Also harvesting from high-cost Sales revenues 240 039 192 469 859 815 773 525 sites in Q1 2017. EBIT 34 336 -68 191 176 558 -164 833 EBIT/kg 8,8 -17,2 13,0 -10,1
Slide 13: Financials
Financials griegseafood.com 13
Slide 14: Profit and Loss
Profit and Loss All figures in NOK 1,000 Q4 2016 Q4 2015 YTD 2016 YTD 2015 Total operating income 2 069 178 1 189 313 6 603 591 4 638 370 EBITDA 502 039 86 907 1 341 661 261 311 Depreciation and amortisation -45 925 -43 789 -173 916 -213 569 EBIT before biomass adj 456 115 43 118 1 167 745 47 742 Fa
Slide 15: Net financial
Net financial All figures in NOK 1,000 Q4 2016 Q4 2015 YTD 2016 YTD 2015 Changes in fair value from hedging instruments 1 802 5 081 9 287 6 608 Net financial interest -7 568 -39 030 -72 720 -120 925 Net currency gain (losses) 6 991 -2 027 -69 926 26 001 Dividends 0 0 0 0 Net other financial expenses
Slide 16: Investments
Investments Maintenance level • Maintenance MNOK 200. • Expansion smolt plant Rogaland MNOK 100. • Expansion smolt plant Finnmark MNOK 100. • New sites MNOK 200. griegseafood.com 16
Slide 17: Cash Flow
Cash Flow Q4 2016 Q4 2015 YTD 2016 YTD 2015 Cash - opening balance 199 468 309 339 392 020 181 498 EBITDA 502 039 86 907 1 341 661 261 311 Inventory, trade payables and trade receivables -109 824 -87 395 -404 850 72 095 Other adjustments 113 160 -19 161 16 302 33 876 Cash flow from operations 505 37
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 Q4 2016 Q4 2015 Term Loan 1 075 1 165 Revolving Credit 0 450 Bond 0 0 Leasing 317 334 Other interest bearing debt 17 12 Cash - closing balance -504 -392 NIBD excl factoring 906 1 569 Factoring 503 338 griegseafood.com 19
Slide 20: Balance sheet
Balance sheet 1 ASSETS 31.12.16 31.12.15 Goodw ill 108 595 110 647 Licenses 1 060 622 1 093 338 Other intangible assets 17 598 16 993 Property, plant and equipment 1 510 379 1 534 770 Investments in associated and joint venture companies 0 25 947 Other non-current assets 7 169 14 410 Total non-curre
Slide 21: Balance sheet
Balance sheet 2 EQUITY AND LIABILITIES 31.12.16 31.12.15 Share capital 446 648 446 648 Treasury Shares -5 000 -5 000 Retained earnings and other equity 2 762 101 1 795 863 Total equity 3 203 749 2 237 511 Deferred tax liabilities 669 083 539 040 Pension- and other obligations 11 360 4 498 Subordinat
Slide 22: Key financial indicators
Key financial indicators Q4 2016 Q4 2015 YTD 2016 YTD 2015 EBITDA-margin before adj FV 24 % 7% 20 % 6% EBIT-margin before adj FV 22 % 4% 18 % 1% NIBD/EBITDA before adj FV 0,7 6,3 0,7 6,3 ROCE before adj FV 52 % 5% 33 % 1% Equity ratio 47 % 38 % 47 % 38 % Equity ratio excluding OQ (bank covenants): 5
Slide 23: Outlook
OUTLOOK griegseafood.com 23
Slide 24: Harvest estimate
Harvest estimate Guiding 2017 Rogaland Finnmark BC Shetland GSF Group (1,000 tons gw e) Q1 3,8 1,5 1,3 1,8 8,4 Growth % 0% -76 % -5 % -18 % -39 % Q2-Q4 16,2 23,5 7,7 14,2 61,6 Growth % 11 % 49 % -18 % 25 % 21 % Total 20,0 25,0 9,0 16,0 70,0 Growth % 9% 13 % -16 % 18 % 8% griegseafood.com 24
Slide 25: Supply outlook
Supply outlook Global supply growth farmed salmon (YoY): Low expected global supply growth 2017. • Norway • 2016: -5% • 2017: 0% (1,055’ MT) • Chile • 2016: -15% • 2017: +4% (473’ MT) • North America • 2016: +6% NASDAQ (Norway) price development : • 2017: -3% (143’ MT) • UK • 2016: -4% • 2017: +7% (
Slide 26: Outlook summary/actions GSF
Outlook summary/actions GSF • Strong market expected ahead. • Dividend of NOK 3 per share. • Cost level down to the industry average, or lower. • 10% annual increase in production 2018-2020. • Harvest volume 2017 of 70,000 tons (+8% vs 2016). • Expected fixed price contracts of 60% in Q1 2017. • GSF
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 AS 55 801 409 49,97 % FOLKETRYGDFONDET 3 390 000 3,04 % OM HOLDING AS 3 105 000 2,78 % YSTHOLMEN AS 2 928 197 2,62 % MORGAN STANLEY AND CO INTL PLC 2 067 749 1,85 % STATE STREET BANK AND TRUST COMP 1 814 836 1,63 % VERDIPAPIRFONDET PARETO INVESTMENT 1 711 000
Slide 31: Profit and Loss
Profit and Loss All figures in NOK 1,000 Q4 2016 Q4 2015 YTD 2016 YTD 2015 Total operating incom e 2 069 178 1 189 313 6 603 591 4 638 370 Share of profit from joint venture 989 -237 569 6 994 Change in inventories 1 521 157 315 338 449 132 503 Raw materials and consumables used -1 048 193 -888 043