Q4 2014 - - PowerPoint PPT Presentation

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Q4 2014 - - PowerPoint PPT Presentation

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Grieg Seafood ASA Q4 2014 !"

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griegseafood.com

Grieg Seafood ASA

  • !"

Q4 2014

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griegseafood.com

Agenda

  • Highlights
  • Business Units (Regions)
  • Financials
  • Outlook

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griegseafood.com

HIGHLIGHTS Q4 2014

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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

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Financial highlights Q4 2014

  • EBIT/kg excl. capital gain SalmoBreed: NOK 5,0.
  • 0.3% volume decrease.
  • 1.4% average increase in realised prices.

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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

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BUSINESS UNITS (REGIONS)

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Business units performance – Q3 2014

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8,06 6,98 6,58 8,79 0,16

  • 13,44

4,15 6,29 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

Rogaland Finnmark BC Scotland

EBIT before biomass adjustment/KG gwt

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Business units performance – YTD 2014

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6,09 9,60 7,78 9,39

  • 7,64
  • 1,15

4,22 2,07

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

Rogaland Finnmark BC Scotland

EBIT before biomass adjustment/KG gwt

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griegseafood.com

GSF Rogaland

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  • Seawater production as expected.
  • The growth rate among fish previously

affected by PD slightly lower than normal.

  • Harvest late in the quarter affecting

average price positive.

  • Harvest from PD and AGD locations

moving the cost up.

Q4 2014 Q4 2013 YTD 2014 YTD 2013

Harvest (gwt) 3 175 2 617 12 778 15 088 Sales revenues 146 968 119 194 572 550 640 584 EBIT 25 598 18 276 77 835 144 794 EBIT/kg 8,06 6,98 6,09 9,60

  • f which Markets NOK/kg
  • 0,30

0,87 0,55 0,58

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GSF Finnmark

  • Seawater production as expected, except for
  • ccurrence of IPN in some locations.
  • Challenges with maturation early in the

quarter moving the average price down.

  • Cost in Q4 was slightly lower than the

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.

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Q4 2014 Q4 2013 YTD 2014 YTD 2013

Harvest (gwt) 5 804 5 735 26 470 23 076 Sales revenues 209 696 209 204 975 291 870 081 EBIT 38 175 50 424 205 934 216 778 EBIT/kg 6,58 8,79 7,78 9,39

  • f which Markets NOK/kg

0,27 0,04 0,30 0,13

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GSF BC (Canada)

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  • Seawater production better than planned

in Q4.

  • Smolt production according to plan in Q4.
  • Low harvest volume in Q4 .
  • Cost expected to decrease in 2015.

Q4 2014 Q4 2013 YTD 2014 YTD 2013

Harvest (gwt) 620 878 6 257 6 739 Sales revenues 41 704 62 431 277 757 330 682 EBIT 97

  • 11 806
  • 47 810
  • 7 777

EBIT/kg 0,16

  • 13,44
  • 7,64
  • 1,15
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GSF Shetland

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  • Gill disease combined with sea lice

treatment caused increase in mortality.

  • The fish harvested in Q4 were

affected by high treatment costs.

  • Sales margin from OQ increasing.

Q4 2014 Q4 2013 YTD 2014 YTD 2013

Harvest (gwt) 6 342 6 765 19 231 13 158 Sales revenues 302 904 301 209 852 455 567 432 EBIT 26 334 42 565 81 087 27 279 EBIT/kg 4,15 6,29 4,22 2,07

  • f which Markets NOK/kg

2,84 1,09

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Ocean Quality (sales Norway/UK – associated company – 60%)

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  • 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:

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Financials

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Profit and Loss

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All figures in NOK 1,000 Q4 2014 Q4 2013 YTD 2014 YTD 2013 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

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Net financial

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All figures in NOK 1,000

Q4 2014 Q4 2013 YTD 2014 YTD 2013

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 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
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Investments

Maintenance level 17

Capex

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Cash Flow

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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 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 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

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Net Interest Bearing Debt

1 600 1 200 2 6 NIBD

NIBD/EBITDA NIBD NIBD/EBITDA

1 000 1 400 4

Q3 13

19

Q4 13 Q1 14 Q2 14 Q3 14

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NIBD

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MNOK

Q4 2014 Q4 2013

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

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Balance sheet 1

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ASSETS

31.12.14 31.12.13

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 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

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Balance sheet 2

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EQUITY AND LIABILITIES

31.12.14 31.12.13

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

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Key financial indicators

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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 %

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OUTLOOK

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Harvest estimate

  • 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

2016.

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Guiding 2015 (1,000 tons gw e)

Rogaland Finnmark BC Shetland GSF Group

Q1 2,7 5,6 1,7 3,8 13,9 Growth % 28 %

  • 3 %

63 %

  • 7 %

6 % Q2-Q4 17,8 16,4 11,3 12,7 58,1 Growth % 67 %

  • 21 %

117 %

  • 16 %

12 % Total 20,5 22,0 13,0 16,5 72,0 Growth % 60 %

  • 17 %

108 %

  • 14 %

11 %

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Supply outlook

  • Global supply growth 2014 vs 2013 9%
  • Lower global supply growth (3%) in 2015 vs. 2014
  • Norway - stable growth rate:
  • 2014: +5%
  • 2015: +4% (1,123’ MT)
  • Chile – form positive to negative growth rate:
  • 2014: +25%
  • 2015: -4% (505’ MT)
  • Canada – from negative to positive growth rate:
  • 2014: -11%
  • 2015: +19% (130’ MT)
  • UK – increased growth rate:
  • 2014: +9%
  • 2015: +3% (160’ MT)

Global supply growth farmed salmon (YoY):

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NOS (Norway) price development :

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Outlook summary

  • Limited supply growth is expected to result in a strong market in the period ahead.
  • Harvest volume guiding 2015 of 72,000 MT. Increasing 7,000 MT vs 2014. Growth expected to continue in

2016.

  • Ocean Quality is developing its business to include the sale of GSF’s fish in BC effective from and

including Q1 2015.

  • Andreas Kvame has been appointed CEO of the company and will start no later than 1 June 2015.
  • The company’s main goal is lower cost through continuous improvement of biological performance,

including better utilisation of licences/equipment.

  • 4 new green licences in Finnmark represent a solid basis for growth in this region.
  • Considering new debt facilities to strengthen financial flexibility to refinance (bond) and pursue further

growth opportunities.

  • Dividend to be decided in connection with the annual accounts 2014.

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Thank you !

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APPENDIX

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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% converted in Q3 2009.

−

EPS

  • 1,95 NOK/share Q4 2013.
  • 1,89 NOK/share Q4 2014.

−

Shareholder structure

  • Largest 20 have 94.23% of total no. of shares.

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Shareholders

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  • No. shares

%

GRIEG HOLDINGS 55 801 409 49,97 % DNB NOR MARKETS, AKSJEHAND/ANALYSE 22 188 238 19,87 % NORDEA BANK NORGE ASA MARKETS 6 605 998 5,92 % KONTRARI AS 6 559 309 5,87 % YSTHOLMEN 2 928 197 2,62 % OM HOLDING AS 2 610 000 2,34 % STATE STREET BANK AND TRUST CO. 1 305 901 1,17 % GRIEG SEAFOOD ASA 1 250 000 1,12 % KVASSHØGDI AS 1 000 000 0,90 % SKANDINAVISKA ENSKILDA BANKEN AB 850 742 0,76 % GRIEG SHIPPING II AS 824 565 0,74 % VERDIPAPITFONDET DNB SMB 802 762 0,72 % VERDIPAPIRFONDET PARETO NORDIC 475 000 0,43 % STOREBRAND VEKST 447 713 0,40 % HSBC BANK PLC 394 179 0,35 % THE BANK OF NEW YORK MELLON 327 939 0,29 % STATE STREET BANK & TRUST COMPANY 225 000 0,20 % GRIEG LTD A/S 217 390 0,19 % MP PENSJON PK 204 991 0,18 % PICTET & CIE (EUROPE) S.A 202 478 0,18 %

Total 20 largest shareholders

105 221 811 94,23 % Total other 6 440 189 5,77 %

Total numbers of shares

111 662 000 100,00 %

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Profit and Loss

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All figures in NOK 1,000

Q4 2014 Q4 2013 YTD 2014 YTD 2013

Total operating income 765 829 695 711 2 739 041 2 425 041 Share of profit from joint venture 1 664 208 10 002 5 645 Change in inventories 95 495 95 668 116 243 133 261 Raw materials and consumables used

  • 377 088
  • 371 046
  • 1 269 768
  • 1 102 239

Salaries and personnel expenses

  • 96 897
  • 90 371
  • 339 592
  • 302 223

Other operating expenses

  • 207 508
  • 208 231
  • 774 460
  • 675 155

EBITDA 181 495 121 939 481 466 484 330 Depreciation and amortisation

  • 38 188
  • 34 423
  • 135 387
  • 133 468

Depreciation and amortisation of licenses

  • 3 167
  • 541
  • 5 222
  • 2 569

Impairment adjustments on assets 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 and biomass adj 139 900 69 972 288 000 277 480 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