Grieg Seafood ASA: Capital Markets Day 2022

Grieg Seafood ASA

Short-term and long-term objectives reaffirmed and platform for sustainable growth beyond 2026 well established

The first point of the stock message sent on June 15, 2022 at 06:00 has been corrected below to reflect the good year: “Harvest volume of 90,000 tons in 2022: increase in harvest volumes to 120-135,000 tons in 2026. “

Grieg Seafood is hosting a Financial Markets Day outside Stavanger, Norway today June 15, 2022 under the title “Farming the ocean for a better future”.

Grieg Seafood has been farming salmon for almost three decades and today the company is one of the leading salmon farmers in the world. Grieg Seafood’s activities are concentrated in Norway and Canada. The ocean has the potential to provide low impact food for generations to come and sustainable farming practices are the foundation of the company’s business.

Grieg Seafood today confirmed its growth ambitions with an annual harvest volume target of 90,000 tonnes in 2022 and 120-135,000 tonnes in 2026 depending on the successful utilization of current capacity, opportunities for available expansions and new concepts. Newfoundland represents the company’s new growth area and Grieg Seafood is today building a platform for sustainable growth beyond 2026 on Canada’s East Coast.

The operational and financial objectives of Grieg Seafood presented today at the capital markets day are:

  • Harvest volume of 90,000 tonnes in 2022: Increase in harvest volumes to 120-135,000 tonnes in 2026

  • Maintain a clear ambition to be a cost leader in all regions where Grieg Seafood operates

  • A long-term target net interest-bearing debt to harvest volume ratio of NOK 30/kg

  • A capital ratio above 31%

  • Requirement of a minimum of 12% return on capital employed (ROCE) for all investment decisions

  • Distribution policy of 30% to 40% of the Group’s net profit after tax adjusted for fair value measurements

The Group’s objective is to offer shareholders a competitive return on the capital invested through the payment of dividends and the appreciation of the value of the share, at a level at least equivalent to that of other companies presenting a comparable risk. Any future dividend will depend on the future results, financial condition and cash flows of the Group. The Board considers that the dividend paid must accompany the growth of the Group’s profits, while ensuring that shareholders’ equity is maintained at a healthy and optimal level. In addition, the board must ensure that it has adequate financial resources to pave the way for future growth and investment and meet its desire to minimize capital costs. The Board has adopted a dividend policy according to which the average dividend, over a period of several years, should correspond to 30-40% of the profit after tax before adjusting the fair value of the biological assets.

Furthermore, although an interest-bearing net debt per kg harvested of up to NOK 30 is considered reasonable, it can be exceeded in times of growth-related investments. On this basis, the size of the dividend could be adjusted within the margin indicated above.

Based on the sustainability that is Grieg Seafood’s license to operate, the three pillars of Grieg’s strategy are:

  1. Global growth. Grieg Seafood will develop the business responsibly towards an ambition to achieve an annual harvest of 120-135,000 tonnes. Growth will come from better utilization of current capacity, expansion opportunities and new concepts.

  2. Cost improvement. Grieg Seafood will continue to focus relentlessly on cost improvement. Post-smolt will improve fish biology, welfare and growth, while preventative measures and further digitization through precision breeding will work in the same direction.

  3. Repositioning of the value chain. Grieg Seafood will improve and stabilize group revenues through enhanced collaboration, value-added processing and brand development with strategic partners.

Commenting on Grieg Seafood’s Financial Markets Day, Andreas Kvame, CEO, said:

“Grieg Seafood has successfully delivered on our ambitions communicated in our last Capital Markets Update despite the fact that the past two years have been marked by upheaval. Today, sustainability is a fundamental tenet of Grieg Seafood’s strategy and three pillars; global growth, cost improvement and value chain repositioning remain our priorities.

Going forward, we are ready to use our existing operations in Norway and British Columbia with our new growth platform in Newfoundland to take Grieg Seafood to the next level. Based on our many years of experience, solid expertise and highly qualified employees, I am convinced that this journey is worthwhile.

Presentation and webcast

Presentations take place at Flor & Fjære outside Stavanger from 10:00 a.m. to 2:00 p.m. CEST.

Management presentations will be streamed live at the following link: https://channel.royalcast.com/landingpage/hegnarmedia/20220615_1/

And the presentation materials are published on https://investor.griegseafood.com/reports-&-presentations#cmu

A recording will be available after the event.

For more information, please contact:

Andreas Kvame, CEO, tel. : +47 907 71 441

Atle Harald Sandtorv, Chief Financial Officer, tel. : +47 908 45 252

About Grieg Seafood

Grieg Seafood ASA is one of the world’s leading salmon farmers. Our farms are located in Finnmark and Rogaland in Norway, British Columbia and Newfoundland in Canada. Our head office is located in Bergen, Norway. Grieg Seafood ASA was listed on the Oslo Stock Exchange in June 2007. More than 750 people work in the company in all our regions.

Sustainable farming practices are the foundation of Grieg Seafood’s business. The lowest possible environmental impact and the best possible fish welfare are both an ethical responsibility and a driver of economic profitability. Towards 2026, we aim for global growth, cost reductions and to evolve from a pure salmon supplier to an innovation partner for selected customers.

To learn more, please visit www.griegseafood.com

The information contained in this announcement may be defined as inside information pursuant to Article 7 of the Market Abuse Regulation and is made public pursuant to Article 17 of the Market Abuse Regulation and Article 5- 12 Norwegian Securities Trading Act.

Attachment