Salmon Evolution Asa · OSL:SALME
Salmon Evolution Asa — Q2 2024 Earnings Presentation
27 slides from Salmon Evolution Asa's earnings presentation, Aug 15, 2024
Slide 1: Presentation Q2 2024
PRESENTATION Q2 2024 CEO: Trond Håkon Schaug-Pettersen CFO: Trond Vadset Veibust 15 August 2024
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) has been prepared by Salmon Evolution ASA (the “Company” and together with is subsidiaries, the “Group”) except where context otherwise requires, solely for information purposes. This Presentation, and the information contained herein, does not const
Slide 3: Agenda
• Highlights • Operations • Growth • Financials • Summary and outlook • Appendices EXTENDING THE OCEAN POTENTIAL 3
Slide 4: Highlights in the quarter
Highlights in the quarter • Positive cash flow from operations of 37.5 NOKm. • Group EBITDA of 45.4 NOKm - Farming EBITDA of 58.6 NOKm and NOK 37.1 EBITDA/kg. • Record high harvest in Q2-24 of 1,581 tonnes HOG. Continued strong all-in price realization of 106 NOK/kg driven by an industry leading sup
Slide 5: Highlights
• Highlights • Operations • Growth • Financials • Summary and outlook • Appendices EXTENDING THE OCEAN POTENTIAL 5
Slide 6: Capitalizing on very strong salmon prices in Q2
Capitalizing on very strong salmon prices in Q2 All-time high harvest volume Increasing harvest weights expected in H2 • Record high harvest of 1,581t HOG in Q2-24 and 2,481t HOG Harvest volumes (tonnes, HOG) Superior share in the first half of 2024. • Q2 average harvest weight of 3.6 kg LW driven b
Slide 7: Setting the stage for an active second half of 2024
Setting the stage for an active second half of 2024 Comments Biomass development • High harvest activity during the quarter impacting both biomass Net biomass growth1 / total biomass (tonnes, LW) volume and production. 1 600 2 750 • Standing biomass of 2,032 tonnes LW end Q2. 2 500 • Net growth of 1
Slide 8: The compounding effect of a strong start
The compounding effect of a strong start Focusing on smolt quality The importance of strong smolt • Identified root cause leading to recent smolt quality issues Indre Harøy batches – Implied harvest weight • Future groups will have additional actual SGR* first 40 days (grams LW) @ 1.0% SGR vaccinati
Slide 9: Closing in on full potential
Closing in on full potential Improving every day We are getting there! • In 2024 we expect to harvest ~5,000 tonnes HOG. Illustration – 2024 harvest (tonnes, HOG) • One-offs impact the 2024 harvest volume. Further potential • Underlines importance of regular supply of high 7,900t Remaining quality s
Slide 10: Salmolytics is our data-driven optimization tool
WE LEVERAGE THE BENEFITS OF LAND-BASED SALMON FARMING Salmolytics is our data-driven optimization tool Identifying and replicating optimal conditions for fish growth Data Collection Systematization and Computation, analytics Application Contextualization and AI Collect over 40 million data points Un
Slide 11: Growth
• Highlights • Operations • Growth • Financials • Summary and outlook • Appendices EXTENDING THE OCEAN POTENTIAL11
Slide 12: Indre Harøy phase 2: Moving ahead
ILLUSTRATIVE TIMELINE Indre Harøy phase 2: Moving ahead Q2-24 Q3-24 Q1-26 Q4-26 Final investment Mobilization and First smolt First harvest decision construction Increasing planned output to 18,000t HOG with additional tank capacity • Phase 2 adding 10,100t HOG and increasing planned output from Pha
Slide 13: Indre Harøy site to deliver 36,000 tonnes HOG
INDRE HARØY PHASE 1 - 3 Indre Harøy site to deliver 36,000 tonnes HOG Phase 3 +18,000t HOG All necessary licenses Phase 2 and in place optimisation +10,100t HOG Mobilization & Increased production with construction Q3-24 added tank capacity Phase 1 7,900t HOG Operational since Q1-22 • Utilizing exis
Slide 14: Optimising production at Indre Harøy
INDRE HARØY PHASE 1 AND 2 Optimising production at Indre Harøy Optimized grow-out program Key benefits Current grow-out program Optimising production Start weight: Start weight: New pre Phase 2 build out increased to add 10.1kT (7.9kT) through ~130 grams ~400 grams an increase of tank capacity optim
Slide 15: Upsized Phase 2 project fully funded
Upsized Phase 2 project fully funded Sources and uses – Indre Harøy Phase 2 expansion including additional tank capacity • DNB Bank and Nordea Bank have credit approved an NOKm increase of bank facilities1 of 675 NOKm. CFO • With new bank facilities a combined LTV Phase 1 and 2 100 Project buffer of
Slide 16: Creating cash flow foundation for substantial organic growth
POTENTIAL TO FULLY FUND NORWAY EXPANSION ON RETAINED EARNINGS – FOR ILLUSTRATIVE PURPOSES Creating cash flow foundation for substantial organic growth Est. harvest volume Ph.2 ~18,000 tonnes, HOG • When Phase 2 is fully operational, Illustrative realized salmon Salmon Evolution has a strong cash NOK
Slide 17: Indre Harøy is only the beginning
EXPANSION PLANS Indre Harøy is only the beginning Norway expansion North America South Korea SE focused on capital discipline and leveraging human capital Yangyang grow out site Jeongson Target smolt facility site areas 36,000t HOG planned Indre 18-54,000t HOG Harøy phase 1-3 potential additional si
Slide 18: Financials
• Highlights • Operations • Growth • Financials • Summary and outlook • Appendices EXTENDING THE OCEAN POTENTIAL18
Slide 19: Farming: Strong financial results
CONSOLIDATED KEY FIGURES AND HIGHLIGHTS: Q2 2024 Farming: Strong financial results REVENUE EBITDA EBITDA/KG HARVEST VOLUME 170.5 NOKm 58.6 NOKm NOK 37.1 1,581 TONNES HOG Farming Norway • Total harvest volume of 1,581t HOG vs. 901t HOG in (figures in NOKm) Q2 24 Q1 24 YTD 24 YTD 23 the first quarter.
Slide 20: Other: Expansion cost base
CONSOLIDATED KEY FIGURES AND HIGHLIGHTS: Q2 2024 Other: Expansion cost base REVENUE EBITDA EXPANSION PROJECTS EXPANSION COST1 5.4 NOKm -13.2 NOKm Three - 3 NOK 8.4/KG • In Other segment all resources related to projects and technology department are employed, as well as other corporate functions. A
Slide 21: Group: Another profitable quarter
CONSOLIDATED KEY FIGURES AND HIGHLIGHTS: Q2 2024 Group: Another profitable quarter REVENUE EBITDA EBIT EBITDA/KG 170.5 NOKm 45.4 NOKm 26.4 NOKm NOK 28.7 Group • Another profitable quarter with EBITDA of 45.4 NOKm (figures in NOKm) Q2 24 Q1 24 YTD 24 YTD 23 and EBIT of 26.4 NOKm. Total operating reve
Slide 22: Group: Positive cash flow from operations
CONSOLIDATED KEY FIGURES AND HIGHLIGHTS: Q2 2024 Group: Positive cash flow from operations CASH FLOW OPERATIONS TOTAL CASH FLOW CASH AND CASH EQUIVALENTS NIBD 37.5 NOKm 343.2 NOKm 683 NOKm 17 NOKm Summary of financial position • 37.5 NOKm positive cash flow from operations – (figures in NOKm) 30 Jun
Slide 23: Cost leadership is our objective
INDRE HARØY Cost leadership is our objective Company illustration - full run rate Phase 1 Upsized Phase 1+2 Upsized Phase 1-3 Harvest volume (kt, HOG) 8 18 36 Farming EBITDA cost/kg (HOG)1 53.0 50.0 47.0 Depreciation – adjusted2 4.0 5.0 5.0 EBIT adjusted cost/kg (HOG) – Farming 57.0 55.0 52.0 Expans
Slide 24: Summary and outlook
• Highlights • Operations • Growth • Financials • Summary and outlook • Appendices EXTENDING THE OCEAN POTENTIAL24
Slide 25: Creating a foundation for substantial profitable growth
UNIQUE GROWTH PLATFORM Creating a foundation for substantial profitable growth Proven operational Increasing planned output New debt package Strong cash generating Significant organic growth excellence to 18,000t HOG secured fundament potential • 2+ years in full operation • Phase 2 adding 10,100t H
Slide 26: Appendices
• Highlights • Operations • Growth • Financials • Summary and outlook • Appendices EXTENDING THE OCEAN POTENTIAL26
Slide 27: Next update
Next update 7th November 2024 – Q3 2024 presentation | Q3 operational update will be released early October