Our four regions and their priorities

Transcription

1 Our four regions and their priorities

2 Our operations Finnmark Shetland Rogaland British Columbia Finnmark Rogaland Shetland British Columbia Tonnes Tonnes Tonnes Tonnes Tonnes harvested 49

3 Finnmark Roy-Tore Rikardsen, Regional Manager 50

4 Operational characteristics tonnes capacity GWT 27 sea water licenses Optimal biological conditions Advantageous water temperatures. Low interconnectivity between sites 2 smolt facilities 1 primary processing facility Strong biological performance Preventive measures have been effective Seasonal day length variations Short days require efficient feeding in winter 51

5 Historical performance Harvest volume (1 000 tonnes GWT) Total regional sales revenue (NOK million) EBIT/kg (NOK) Cost/kg harvested (NOK)

6 Proximity to Russia gives additional potential Primary processed product sold through Ocean Quality, primarily to EU market Geographic proximity to Russia - Historically an important market for GSF Finnmark - Potential competitive edge from possible re-opening of the Russian market Norwegian exports to Russia (1 000 tonnes WFE)

7 Securing new locations to improve capacity utilization Current: 80% MAB* capacity utilization Current location capacity: ~ tonnes Sites at times harvested with low average weight to ensure sufficient fallow periods Hammerfest 3 locations MAB t Nordkapp 5 locations MAB t Target: Improved MAB* utilization Target location capacity: tonnes in applications for ~5,600 tonnes locations Loppa 6 locations MAB t Alta 4 locations MAB t Decision expected on 2 applications in 2018 Application for new location Existing locations *Maximum Allowed Biomass 54

8 Increasing smolt capacity to support production growth Access to high quality smolt is key to ensuring production growth with sustainable biology 2018 Target Total smolt capacity (million) Adamselv in-house smolt facility Hasvik* Large smolt joint venture with NRS Production: 6.5 million smolt Size: 150 grams Production: smolt Size: 200 grams Capacity 2019: 8 million smolt Size 2019: 200 grams Entirely self-sufficient Capacity 2019: 2 million smolt Size: 200 grams Adamselv Hasvik (GSF share) External *All numbers provided are Grieg Seafood s share 55

9 Improve and safeguard survival rates to ensure sustainable growth GSF Finnmark employs strict routines to ensure fish welfare and to increase survival rates Secure access to high-quality smolt Smolt release scheduled to avoid seasonal sanitary challenges Proper routines and hygiene when placing fish in the sea Use of lice skirts and cleaner fish for sea lice prevention Camera surveillance and sensor technology for environment control 56

10 Finnmark priorities Securing new locations to improve capacity utilization Increasing smolt capacity to support production growth Safeguarding survival rates to ensure sustainable growth 2020 target: tonnes GWT 57

11 Rogaland Knut Utheim, Chief Operating Officer 58

12 Operational characteristics tonnes capacity GWT 20* sea water licenses Sophisticated onshore capabilities Post-smolt expected to drive biological improvements and cost efficiency 2 smolt facilities 1 primary processing facility Pioneer within precision farming First Precision Farming pilot launch autumn Aqua Cloud testing underway Environmentally challenging region Has historically struggled with pancreas disease and sea lice *20 licenses include one double license and a long-term rental agreement with Rogaland County for an additional license 59

13 Historical performance Harvest volume (1 000 tonnes GWT) Total regional sales revenue (NOK million) EBIT/kg (NOK) Cost/kg harvested (NOK)

14 Post-smolt production ensures biological control Why large-smolt? 1. Improved biological control from shorter production time in sea Fewer lice treatments per fish Shorter exposure to other biological risks More release flexibility to handle seasonal risks 2. Moving production onshore releases capacity and reduces the number of active sites Trosnavåg Expanded in 2017 Current capacity: tonnes 2018 Average smolt size: 200 grams Production cycle: less than 550 days Two smolt facilities Targets Tytlandsvik To be completed by end Partnership with Bremnes Seashore and Vest Havbruk Capacity: tonnes* Expect tonnes* in Average smolt size: 400 grams Production cycle: below 450 days, 2 sites below 365 days *Grieg Seafood s share 61

15 Larger smolt size reduces seawater production time Actual growth first 22 weeks of seawater production Size (grams) g smolt 320g smolt 460g smolt 1 000g smolt Week 62

16 Precision farming ensures efficient operations Better feeding leads to better growth Launch fall ensure all technical aspect function correctly Centralize and improve feeding operations Gather and analyze new and historical data to support decision making at the growth sites Free up time for employees at growth sites to focus on technical aspects, such as lice counts and cleaner fish HMS - employee safety, improved surveillance of boats and employees Aiming for full coverage by

17 Rogaland priorities Post-smolt production ensures biological control, targeting 500 grams in 2020 Larger smolt size significantly reduces seawater production time Precision farming ensures efficient operations 2020 target: tonnes GWT 64

18 Shetland Grant Cumming, Regional Manager 65

19 Operational characteristics tonnes capacity GWT Favorable environmental conditions Strong water exchange and optimal water temperatures 1 RAS smolt facility 1 primary processing facility Large number of small sites Close proximity between sites and different farmers leads to high biological interconnectivity RAS production capability High share of smolt from RAS facility results in strong capacity utilization and improved biosecurity 66

20 Historical performance Harvest volume (1 000 tonnes GWT) Total regional sales revenue (NOK million) EBIT/kg (NOK) Cost/kg harvested (NOK)

21 Market overview GSF Shetland Exports market share (YTD 2018) UK market characteristics USA 11% of sales Asia 4% of sales Strong preference for Scottish salmon Strong price variations depending on Scottish supply Long-term average premium around NOK 4 per kilo Sales largely go to retailers. Not necessarily on contract, but with an agreement on volumes United Kingdom 65% of sales Europe 20% of sales Market expectations 1. Potential Brexit: Barriers to trade in EU, but potential to build close relations with UK retailers 2. Exports to US and Asian markets continuously growing, leading to improved diversification 3. Main expectations: Continuing shift from reliance on EU market to reliance on UK, Asian and US markets 68

22 Several initiatives underway to improve biosecurity and fish welfare Fewer sites Management agreements Monitoring Improved treatment Production sites cut from 27 in 2014 to 17 in 2018 Production focused on best sites with the strongest biological control Integrated Pest Management (IPM) principles, including: - 3 month shared fallow period in whole areas - Improved coordination of treatment activity Testing for germs at early stages using Polymerase Chain Reaction (PCR) Use of image analysis microscope to classify and count algae presence Fresh water treatment facilities (avoids use of hydrogen peroxide) Use of aeration, sea lice skirts and cleaner fish Plan to increase net harvest biomass back to tonnes in

23 Shetland priorities Strong UK market and growing opportunities in the US and Asia Several initiatives underway to ensure strong biosecurity and improved fish welfare 2020 target: tonnes GWT 70

24 British Columbia Rocky Boschman, Regional Manager 71

25 Operational characteristics tonnes capacity GWT Harmful algae presence Utilizes leading monitoring- and algae prevention technology 1 smolt facility Low interconnectivity between farmers Present in 4 areas with highly autonomous biological control Complex licensing system Provincial leases contingent on licenses and agreements with the First Nations 72

26 Historical performance Harvest volume (1 000 tonnes GWT) Total regional sales revenue (NOK million) EBIT/kg (NOK) Cost/kg harvested (NOK)

27 Market overview North America YTD 2018 the North American market has comprised about 73% of GSF BC exports Mainly whole fish sold, but fillets and other value added products sales are growing North American market growing by double digits every year The Skuna Bay brand Skuna Bay products are sold at a premium and in 2018 have comprised close to 20% of GSF BC revenues Won the American Marketing Association Marketer of the Year award 74

28 Market overview China Selective harvest has contributed to increasing average harvest size by ~1kg from 2017 to 2018 Larger size leads to increased exports to China YTD 2018 the Chinese market has made up ~27% of GSF BC exports, up from 6.5% in 2017 In the first two months of 2018, GSF BC was the world s largest exporter of salmon into China Premium product at premium price Fresh, whole fish Significant growth potential Current bottlenecks Cargo space Issuance of health certificates 75

29 Exploiting technology to maximize feeding Feeding decisions are significantly influenced by various environmental factors Historically Going forward Feeding decisions based on experience and gut-feeling Real-time indicator monitoring Oxygen sensors in pens Daily water samples analyzed Satellite imagery used to monitor algae movements Aeration systems Allow for feeding in marginal situations Have improved survival rates during HAB events Advanced feeding systems Capacity to feed in short time frames Developing feeding hubs for continued improvements Poor basis for efficient decision making process Improved basis for decision making, resulting in optimized feeding operations 76

30 Investing in low-cost access to high-quality smolt Current situation Golden River smolt facility 4 million smolt 120 grams 60-70% self-sufficient Campbell River property Potential smolt expansion Golden River smolt facility 6 million smolt 120 grams 100% self-sufficient Construction of post-smolt RAS facility at Campbell River Improved biological control 1. Shorter production cycles allow for freedom in terms of when they place the fish in the sea 2. Longer fallow periods improve biological recovery 77

31 British Columbia priorities Exploiting technology to maximize feeding Investing in low-cost access to high quality smolt 2020 target: tonnes GWT 78

32 Photo: Eilert Munch