Q MAY 8TH 2018

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Stuart Mosley
5 years ago
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1 Q MAY 8TH 2018

2 1. Highlights 2. Key Financial Figures 3. Outlook

3 Highlights

Klikke for å legge til annet bilde Q1 2018 - EBIT beforefv adj. NOK 960 million - Harvest volume 37576 GWT - EBIT/kg all incl.

4 Klikke for å legge til annet bilde Q EBIT beforefv adj. NOK 960 million - Harvest volume GWT - EBIT/kg all incl. (excl. EBIT Havfisk & LNWS) ofnok Contract share of 22% - NIBD NOK 2293 million - Harvest guidance GWT for 2018 XXLofoten

5 Quarterly historic figures EBIT* EBIT/kg**, all inclusive , Q4/17 Q3 17 Q2 17 Q1 17 Q4 16 Q3 16 Q2 16 Q1 16 Q4 15 Q3 15 Q2 15 Q1 15 Q4 14 Q3 14 Q2 14 Q1 14 Q1/18 Q4/17 Q3 17 Q2 17 Q1 17 Q4 16 Q3 16 Q2 16 Q1 16 Q4 15 Q3 15 Q2 15 Q1 15 Q4 14 Q3 14 Q2 14 Q1 14 *before biomass adjustment **before biomass adjustment excl. EBIT contribution from Wild Catch NOK million NOK Q1/18

6 Lerøy Seafood Group ASA Farming Wild catch VAP, Sales and Distribution

7 Klikke for å legge til annet bilde Q1 2018: Farming Highlights - Spot prices below last year NSI Q1/18 NOK 59.5 vs NOK 65.3 in Q1/17 (-9%) Up NOK 10/kg q-o-q, and down NOK 6/kg y-o-y - Trout price achievement well below salmon - Contract prices marginally above spot - Cost (RFS) down from Q4/17 - Biomass at sea End Q1/18 at 99,028 LWT vs 89,181 LWT end Q1/17 (+11%)

8 Farming volumes 2012 GWT 2013 GWT 2014 GWT 2015 GWT 2016 GWT 2017 GWT 2018E GWT Lerøy Aurora AS* Lerøy Midt AS Lerøy Sjøtroll Total Norway Villa Organic AS** Norskott Havbruk(UK)*** Total *) Included harvested volume from Villa Organic after split July 2014 **) LSG s share of Villa Organic s volume in H1 2014, not consolidated ***) LSG s share, not consolidated

Klikke for å legge til annet bilde Q1 2018: Wild Catch -

highest catch volume in any quarter in history - Average

Y-o-y prices for cod up 12%, haddock 20% while saithe down 1%.

9 Klikke for å legge til annet bilde Q1 2018: Wild Catch - Q1/18 harvest volume at 22,268 tons, up 8% y-o-y, and the highest catch volume in any quarter in history - Average prices up 11% y-o-y. Y-o-y prices for cod up 12%, haddock 20% while saithe down 1%. - As it takes time to adjust prices to end-market, increase in raw material prices is a challenge within processing

10 Remaining quotas Havfisk/Wild Catch Catch volume Q1/18 Catch volume Q1/17 Catch volume YTD 2018 Catch volume YTD 2017 Remaining quota 2018 Remaining quota 2017 Cod Haddock * Saithe Shrimps Other Total *) Quota for Haddock was increased during 2017 (redistributed). This number shows status as of Q1/2017

11 Klikke for å legge til annet bilde Q1 2018: VAP, Sales and Distribution - Position as full fletched integrated seafood supplier has been enhanced significantly over the previous year - Positive development with key strategic customers, but volatile and increasing prices in Q has negative impact on profitability - EBIT in Q1/18 of NOK 65m compared to NOK 86m in Q1/17

12 Key Financial figures

13 Key financial figures Q (NOKm) Q Q % Revenue % Other gains and losses 0 0 EBITDA % Depreciation & amortisation EBIT* % Income from associates* Net finance Pre-tax profit* % EPS (NOK)* 1,31 1,59-17 % Harvested Volume (GWT) % EBIT* all incl. excl. Wildcatch 20,8 25,8-19 % ROCE* (%) 25,3 % 35,9 % -30 % * Before biomass adjustment

14 Balance sheet (NOKm) % Intangible assets % Tangible fixed assets % Financial non-current assets % Total non-current assets % Biological assets at cost % Fair value adjustment of biomass % Other inventory % Receivables % Cash and cash equivalents % Total current assets % Total assets % Equity % Equity ratio 57,5 % 55,1 % 4 % NIBD % * Before biomass adjustment

15 Funding NOK million Later Total To be paid Total Covenants Q NIBD/EBITDA < Adj. Equity ratio >30 % 68.2 %

16 Cash flow Q Q FY 2017 EBITDA before fair value adjustment on biological assets Paid tax Change in working capital Other Cash from operating activities Business combinations and redemption of non-controlling interests * Net investments in capex and intangibles Dividends received Other changes in non-current assets Cash from investing activities * Net financial cost New equity Dividends distributed Cash from financing activities Change in NIBD from business combinations Change in NIBD from other interest bearing receivables Change in NIBD from currency conversion differences on LT debt in Change in NIBD from agio on FX loans Other changes (incl.currency effects) Net cash flow / change in NIBD NIBD at beginning Change in NIBD NIBD at end * The amount may differ from the corresponding amount in the cash flow statement in the quarterly report, as cash acquired through business combination is not included.

17 EBIT per segment EBIT* Q EBIT* Q NOKm NOKm Farming Havfisk/NWS VAPS&D Elim./LSG Q Farming Wild Catch VAPS&D Elim./LSG Q * Before biomass adjustment

18 Lerøy Aurora Q Q Revenue (NOKm) EBIT* (NOKm) Harvested volume (GWT) EBIT/kg* (NOK) Growth of almost 10,000GWT since 2016, at low cost Marginal increase in RFS (release-from-stock) cost q-o-q, but still at low level EBIT*/kg 28.4 Seeing positive impact from larger post-smolt, and decision made to further invest in post-smolt capacity NOK As of today, expectations are continued low costs in Q Q Q Q Q * Before biomass adjustment

19 Lerøy Midt Q Q Revenue (NOKm) EBIT* (NOKm) Harvested volume (GWT) EBIT/kg* (NOK) Positive development continues Growth of more than 12,000GWT in 2017, and potential for further growth in 2018 and beyond EBIT*/kg 21.8 Lower RFS (release-from-stock) cost q-o-q NOK As of today, expectations are for further cost reductions q-o-q through Q Q Q Q Q * Before biomass adjustment

20 Lerøy Sjøtroll Q Q Revenue (NOKm) EBIT* (NOKm) RFS cost significantly down q-o-q, but significant potential for reductions into 2018 and beyond. Harvested volume (GWT) EBIT/kg* (NOK) Price achievement for the Group NOK 6/kg lower for trout than for salmon in the quarter. Trout was 30% of quarterly harvest volume EBIT*/kg New RAS smolt facility being built, with first eggs in Q2 2018, and first release of smolt in NOK Significant potential in both volume and costs, but for 2018 expectations are that cost will remain higher than for Lerøy Midt and Lerøy Aurora 0 Q Q Q Q Q * Before biomass adjustment

21 Wild Catch (Havfisk/LNWS) Q Q EBITDA (NOKm) High catch volume, with high catch efficiency and improving prices gives higher profitability y-o-y. Positive development in shrimp fishery EBIT(NOKm) Havfisk, catch volume Q Q Cod Haddock Saithe Shrimps Other Total New trawler, Nordtinddelivered in Q1/18, with satisfactory performance in operation Development of the white fish processing industry in Norway is challenging. The solution is higher efficiency in operations, and broader market reach Havfisk, prices Q Q Cod Haddock The solution will require time, and investments. Lerøy is expecting stability in framework conditions to make necessary steps possible for a turn-around of this industry in Norway. Saithe

22 Norskott Havbruk (associate, 50% owned by Lerøy Seafood Group) Q Q Revenue (NOKm) EBIT* (NOKm) Satisfactory result, with good biological performance in all regions Harvested volume (GWT) EBIT/kg* (NOK) ,9 However, harvested volume in 2018 is impacted by accelerated harvest at some sites in 2017 EBIT*/kg Contract share in the quarter of 32% NOK Q Q Q Q Q * Before biomass adjustment ** Figures based on 100% basis

23 VAP&D VAP, Sales and Distribution Q Q Revenue (NOKm) EBIT(NOKm) EBIT margin 1.4 % 1.7 % 2.5 % 2.5 % Position as an integrated seafood supplier continues to strengthen Positive underlying development in most operations, but volatile price development in Q1/18 a challenge for downstream operations Revenue and EBIT margin (line graph) % High focus on product development, seeing positive development in key markets NOKm % EBIT margin Q Q Q Q Q %

24 Outlook

25 Atlantic salmon Supply in tons WFE Change Change Change Change Change Change Norway ,3 % ,8 % ,9 % ,1 % ,1 % ,9 % United Kingdom ,0 % ,0 % ,5 % ,4 % ,7 % ,8 % Faroe Islands ,3 % ,9 % ,6 % ,2 % ,9 % ,2 % Ireland ,1 % ,0 % ,6 % ,6 % ,6 % ,9 % Iceland ,1 % ,3 % ,2 % ,0 % ,0 % ,2 % Total Europe ,1 % ,8 % ,8 % ,4 % ,3 % ,5 % Chile ,6 % ,5 % ,6 % ,7 % ,8 % ,8 % Canada ,7 % ,5 % ,3 % ,0 % ,1 % ,3 % USA ,6 % ,2 % ,8 % ,4 % ,6 % ,1 % Australia ,5 % ,7 % ,5 % ,4 % ,8 % ,5 % Others ,3 % ,7 % ,9 % ,8 % ,2 % ,4 % Total Others ,0 % ,1 % ,2 % ,4 % ,5 % ,0 % Total World-wide ,1 % ,1 % ,0 % ,5 % ,4 % ,7 % Figures as per Source: Kontali

26 SPOT prices, fresh Atlantic salmon cross-section, FCA Oslo as of week (Superior quality).

27 Atlantic salmon - Harvest Quantities Norway in tons WFE Harvest qty, YTD Apr: ,1% ( ) 2018 Figures as per Source: Kontali

28 Atlantic salmon - Harvest Quantities Europe in tons WFE Harvest qty, YTD Apr: ,8% ( ) % % 20% % -1% 0% 4% 6% 2% 3% 4% 4% 6% 10% 0% % % January February March April May June July August September October November December -20% Chng line Figures as per Source: Kontali

29 Atlantic salmon - Harvest Quantities Chile in tons WFE Harvest qty, YTD Apr: ,0% ( ) 2018 Figures as per Source: Kontali

30 Atlantic salmon - Harvest Quantities WW in tons WFE Harvest qty, YTD Apr: ,0% ( ) % 23% % 11% % % 0% 0% 5% 4% 0% 2% 3% -1% 2% 0% % 0 January February March April May June July August September October November December Chng line -20% Figures as per Source: Kontali

31 Atlantic Salmon Consumption 2018 Q1 NOK/KG (NSI 3-6) Q1: 60,82-9,3 % (67,04) Market Chng Chng % EU % USA % Japan % Russia % Other Markets % Total % % % % % 10 % -9 % 51 % 15 % 100 % 50 % 0 % - EU USA Japan Russia Other Markets -50 % Figures as per Source: Kontali / Nasdaq Chng % 0-line

32 Atlantic Salmon Consumption (Other markets) 2018 Q % 100 % % % 37 % 40 % 31 % 18 %20 % 20 % 24 % 12 % 14 % 8 % 14 % 19 % 14 % 4 % 6 % -3 % -5 % -12 % -19 % -5 % 20 % -2 % -9 % 9 % 50 % 25 % 0 % % % % Chng % 0-line Figures as per Source: Kontali / Nasdaq

33 Atlantic Salmon Consumption (Others in other markets) 2018 Q % 200 % % % 71 % 27 % 13 %14 %11 % 12 % 9 % 0 % -4 % -29 % -40 % -5 % -35 % 25 % 56 % 0 % 43 % -18 % 80 % 0 % -7 % 100 % 50 % 0 % % % Chng % 0-line Figures as per Source: Kontali / Nasdaq

Klikke for å legge til annet bilde Outlook - Demand for seafood remains

contract share for salmon and trout in Q2/18 ~25% - Significant

34 Klikke for å legge til annet bilde Outlook - Demand for seafood remains strong, outlook remains positive - Harvest guidance for salmon and trout including associates GWT for 2018, with lower release from stock cost in H2/18 - Expected contract share for salmon and trout in Q2/18 ~25% - Significant potential in whitefish. Expected catch volume up towards 65,000 tonnes in 2018, with a y-o-y increase in catch volume of shrimps

36 CONTACT Henning Beltestad, CONTACT Sjur Malm,

Q NOVEMBER 8TH 2018

Q NOVEMBER 8TH 2018 Q3 2018 NOVEMBER 8TH 2018 1. Highlights 2. Key Financial Figures 3. Outlook Highlights Klikke for å legge til annet bilde Q3 2018 - EBIT before FV adj. NOK 660 million - Harvest volume 37 227 GWT - EBIT/kg