Lerøy Seafood Group ASA: Q4 2022 Results

21 Feb 2023 06:30 CET

GROWTH IN SEAFOOD DEMAND BRINGS STRONG REVENUE IN 2022

Lerøy posted record revenue of NOK 26.6 billion in 2022. This reflects a year of
high prices, driven by strong demand for seafood. Operating profit before fair
value adjustments was MNOK 3,195 compared to MNOK 2,518 in 2021.

"Seafood markets were strong in 2022. Like other industries, we also experienced
cost pressure," says CEO Henning Beltestad. "The other defining event of the
year was the resource rent tax proposal. We've already seen this have
significantly negative effects on investments in coastal regions. This is
extremely unfortunate for Norway as a seafood nation, for the industry and for
everyone who works in it," Beltestad continues.

Lerøy's consultation response to the Ministry of Finance can be read here (in
Norwegian): https://www.leroyseafood.com/globalassets/leroy-seafood/about-
leroy/news/norge-taper/220401-leroy-horingssvar.pdf

Based on the results for 2022, the Board of Directors has recommended a dividend
of NOK 2.5 per share. The proposal will be presented for decision at the Annual
General Meeting in May.

OPERATING PROFIT BEFORE FAIR VALUE ADJUSTMENT OF NOK 800 MILLION IN Q4 2022

Operating profit before fair value adjustments was NOK 800 million in Q4 2022,
compared with NOK 902 million in the same period of 2021. The decrease can be
attributed to lower earnings for Wild Catch because of lower catch volumes, as
well as lower margins in VAP S&D than in Q4 2021.

"The earnings improvement in VAP S&D from last quarter is positive, and a trend
that we expect to continue in 2023. Within Farming, we experienced challenging
biology in Lerøy Midt and Lerøy Sjøtroll, affecting growth, and the harvest
volume for 2023 is now estimated at 193,500 GWT. We have initiated several
measures throughout the value chain, which will gradually show positive
effects," says Beltestad.

CREATING THE MOST EFFICIENT AND SUSTAINABLE VALUE CHAIN FOR SEAFOOD

By 2025, Lerøy shall have a market-leading EBIT per kg through the value chain,
EBIT for VAP S&D of NOK 1.25 billion, EBIT for Wild Catch of NOK 500 million and
a harvest volume in Norway of 205,000 tonnes. The Group's revenue shall reach
NOK 50 billion by 2030.

"We're standing by these ambitious but achievable targets. The common
denominator for success is operational improvements. We have clearly defined
initiatives for achieving our goals. At the same time, we have to acknowledge
that the proposed resource rent tax brings increased uncertainty," Beltestad
says.

Lerøy has set a target of reducing its greenhouse gas emissions by 46% by 2030.
Lerøy Seafood Group is ranked in the top three in the Coller FAIRR Protein
Producer Index, making it one of the most sustainable protein producers in the
world. Lerøy was mentioned in PwC Norway's report "Klimaindeksen for 2022" as
one of ten big companies in Norway that are cutting greenhouse gas emissions in
line with the Paris Agreement.

"We continue to take new steps to further consolidate our position as a producer
of sustainable seafood. Key to this are innovative partnerships with feed
suppliers to evaluate new ingredients. We are also working to reduce emissions
from transport and evaluate alternative fuels for our fishing fleet. Our
integrated value chain puts us in a unique position to reach our sustainability
targets," says Beltestad.

Through cooperation our employees work hard every day to create the most
efficient and sustainable value chain for seafood. I'd like to thank them for
the work they do every day to help the company achieve this," Beltestad
finishes.

Queries may be addressed to the CEO, Henning Beltestad, or the CFO, Sjur S.
Malm.

ABOUT LERØY SEAFOOD GROUP ASA

Lerøy Seafood Group ASA is a global seafood corporation with its head office in
Bergen. The Group's approx. 5,500 employees process between 350,000 and 400,000
tonnes of seafood every year via our value chain, corresponding to around 5
million meals every day. The Group has a vertically integrated value chain for
red fish and whitefish, as well as significant activities using third-party
products.

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

More information:
Access the news on Oslo Bors NewsWeb site

583028_LSG Q4 22 presentation.pdf
583028_LSG Q4 22 report.pdf