Grieg Seafood ASA · OSL:GSF
Grieg Seafood ASA — Investor Day (2018)
15 slides from Grieg Seafood ASA's investor day presentation, 2018
Slide 1: Financial targets and investments in sustainable growth
Financial targets and investments in sustainable growth Atle Harald Sandtorv, CFO 79
Slide 2: Financial targets
Financial targets Target 2017 Growth 100 000 tonnes in 2020 62 598 tonnes At or below industry average Cost NOK 43.4/kg NOK 37.9/kg in 2020 NIBD/EBITDA < 4.5 NIBD/EBITDA 1.2 Financial Equity ratio > 35% Equity ratio 47% Profitability Return on Capital Employed of 12% ROCE 24% Capital structure NIBD/
Slide 3: Ambition to grow - targeting 100 000 tonnes in 2020
Ambition to grow - targeting 100 000 tonnes in 2020 • 26 million in 2017 Smolt release • 26 million in 2018 • Increasing smolt size from 142 grams in 2018 to 230 grams in 2020 • Smolt quality • Smolt size Increase survival • Reduced time in sea • Biosecurity 81
Slide 4: Aiming for cost at or below industry average
Aiming for cost at or below industry average Regional cost development 2010-2020E NOK/kg Finnmark NOK/kg Rogaland 39.8 41.0 37.0 37.0 38.6 37.0 36.0 36.0 35.1 36.0 33.9 33.8 33.5 28.2 29.1 27.6 26.0 26.3 26.2 25.3 24.7 23.6 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2010 2011 2012 201
Slide 5: Targeting Group cost of NOK 37.90/kg in 2020
Targeting Group cost of NOK 37.90/kg in 2020 • Increased survival NOK 3/kg - Robust smolt 38.0 - Reduced time in sea - Biosecurity • Harvest cost NOK 1/kg 43.41 42.37 37.70 39.67 39.40 37.90 - Increased efficiency from higher volumes 34.04 35.19 31.35 32.47 29.78 • Miscellaneous NOK 1/kg - Precision
Slide 6: Investments
Investments Total investments of NOK 650 million in 2018 Digitalization in salmon Post-smolt strategy farming Biosecurity and fish welfare Expansion opportunities NOK 100 million NOK 20 million NOK 40 million NOK 57 million • Expansion at Adamselv • Central feeding • Aeration systems • New licence u
Slide 7: Capacity expansion opportunities
Capacity expansion opportunities Improve utilization of current Acquisitions and joint ventures New regions and new concepts capacity in existing regions in existing regions 85
Slide 8: Investment opportunities assumptions
Investment opportunities assumptions Primary processing Smolt facility Post-smolt facility Farming sites Biomass facility • Investment: NOK 250m • Investment: NOK 750m • Investment: NOK 60m • Average biomass recent 6 • Investment: NOK 450m • Average capital employed: • Average capital employed: • Av
Slide 9: Implied targets for various investment opportunities
Implied targets for various investment opportunities Capital employed per kilo Investment per kilo Expanding Expanding Onshore New current Onshore New (NOK/kg HOG) current MAB expansion licences (NOK/kg HOG) MAB expansion licences License - - 122* License - - 122* Smolt phase 6 6 6 Smolt phase 3 3 3
Slide 10: Funding secured through 2022
Funding secured through 2022 All figures in NOK 1 000 Q2 2018 YE 2017 • Syndicated bank loans and credit facilities through 2022 Term loan 1 170 690 985 000 Revolving credit 190 000 300 000 - Total credit framework ~NOK 2 300 million Leasing 354 001 260 251 - Revolving credit facility NOK 1 000 mill
Slide 11: Creating shareholder value
Creating shareholder value Maximize return through dividend and share value appreciation • Dividend payout dependent on Earnings per share 10.7 - Earnings/cash flow Dividends per share - Investments - Financial structure 5.0 3.9 4.0 • NIBD/harvest volume: NOK 20/kg 2.0 1.3 1.5 • Dividend an average
Slide 12: Strong performance most recent 3 years
Strong performance most recent 3 years Outperforming market and sector Three-year performance rebased 120.00 100.00 80.00 60.00 40.00 20.00 0.00 01.09.2015 01.12.2015 01.03.2016 01.06.2016 01.09.2016 01.12.2016 01.03.2017 01.06.2017 01.09.2017 01.12.2017 01.03.2018 01.06.2018 Grieg Seafood OSE Seafo
Slide 13: Creating value for all stakeholders
Creating value for all stakeholders Shareholders Employees Society Environment Competitive return through Provide job opportunities for Generate means to support Safeguard ability to operate dividend payments and share current and new employees the development of a better sustainably value appreciat
Slide 14: Summary
Summary Grieg Seafoods ROOTED IN NATURE
Slide 15: Photo: Eilert Munch
Grieg Seafoods ROOTED IN NATURE