Lerøy Seafood Group ASA: Capital Markets Day 2022

Leroy Seafood Group ASA

Lerøy Seafood Group (“LSG”) will host its capital markets inaugural day today 22 Septembernd, 2022 in Hitra in Norway. The main theme will be the strategy of the LSG group with a particular focus on the agricultural segment. Financial and operational targets for 2025 will be launched.

20 YEARS OF PROFITABLE GROWTH WHILE DEVELOPING A FULLY INTEGRATED VALUE CHAIN

Over the past 20 years LSG has developed a fully integrated value chain for seafood with an average revenue growth of 12% per year and a return on capital employed of 17% per year.

LSG operates salmon and trout farms in three regions of Norway and has a major wild-catching business that complements the product offering. The downstream operation of VAP S&D is growing and an increasing share of the group’s raw materials are processed through the group’s value chain. Our sales and processing operations now cover 14 countries.

THE WORLD’S MOST EFFICIENT AND SUSTAINABLE VALUE CHAIN ​​FOR SEAFOOD

Historically, the value chains for seafood have been highly fragmented and unsuitable to meet the increasingly complex needs of customers. By comparison, LSG’s fully integrated value chain is more reliable, faster and cost-efficient. The group’s sustainable value chain supports full traceability, quality assurance and greater value creation through product innovation. This is what our strategic clients do he expects and what we work for every day. this is our competitive advantage, comments CEO Henning Belttestad.

FINANCIAL AND OPERATIONAL GOALS FOR 2025 AND BEYOND

Execution of the strategy is the key to continuous high profitability. Our goals presented today at Capital Markets Day are:

  • Revenue of NOK 50 billion by 2030

  • Market-leading EBIT pr kg for agriculture and S&D VAP by 2025

  • Segment EBIT, S&D VAP: NOK 1.25 billion by 2025

  • Segment EBIT, wild catch: NOK 500 million by 2025

  • Agriculture: Harvest volume (Norway) of 205,000 GWT by 2025

For the agricultural segment, the operational efficiency targets towards 2025 include:

  • Production cost reduction of NOK 4.6 per kg in 2025 (measured in 2021 cash)

  • Economic feed conversion ratio of 1.19

  • Average harvested weight 4.5 kg

  • 93% of salmon and trout are of superior quality

as any business todayLerøy is experiencing cost inflation, however we aim to counterbalance this through operational improvements, says Belttestad.

HOW WE REACH OUR GOALS

LSG will strengthen and develop our core business:

  • Improve biology, as described below

  • Improve sales and production planning

  • Increase the volume share for strategic customers and attract additional strategic customers

  • Increase the share of raw materials processed through the group’s value chain

  • Accelerate digital transformation and automation

Regarding biology, LSG aims to increase survival rate, increase growth rate, increase license capacity utilization and improve crop quality, further strengthening its position as a climate sustainable global food producer. and environmental. Agriculture volumes have increased 9% annually over the past three years, driven by post-smolt investments. The post-smolt strategy has proved successful, but there is still untapped potential. COO Farming, Bjarne Reinert, will elaborate on this at today’s event.

Our goals are ambitious but achievable. The common theme it’s operational improvements through everything our segments wWe have clearly defined initiatives to achieve operational excellence which we will demonstrate today. I am confident we are on track for continued profitable growth, says Belttestad.

LIVE BROADCAST

The presentations can be followed through a live webcast and the presentation is available at https://www.leroyseafood.com/en/investor/capital-markets-day-2022/

The agenda and timing of September 22, 2022 are as follows:

For those attending the physical event, practical information was distributed via text messages on 19 Septemberth.

For more information, please contact:

  • CFO Sjur Malm, phone +47 417 72 020

  • CEO Henning Belttestad, phone +47 911 43 545

  • Head of Treasury and Investor Relations Hans Ljøen, phone +47 481 87 750

ABOUT LERØY SEAFOOD GROUP ASA

Lerøy Seafood Group ASA is a global seafood company based in Bergen. The group is approx. 5,500 employees process approximately 400,000 tons of seafood each year through our value chain, which equates to approximately 5 million meals a day. The Group has a vertically integrated value chain for goldfish and whitefish and significant businesses using third party products.

The Group’s values ​​- open, honest, responsible and creative – underpin everything we do and work hard to achieve our goal of creating the world’s most efficient and sustainable value chain for seafood. The return on capital employed (ROCE) target is 18%. The Group has set a series of sustainability goals, including reducing greenhouse gas emissions by 46% by 2030.

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