Atlantic Sapphire Asa · OSL:ASA
Atlantic Sapphire Asa — Corporate Update (September 2023)
29 slides from Atlantic Sapphire Asa's corporate update, Sep 19, 2023
Slide 1: Company Update
Company Update September 19, 2023
Slide 2: Important Information and Disclaimer (1/2)
IMPORTANT INFORMATION AND DISCLAIMER (1/2) IMPORTANT INFORMATION THIS DOCUMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, ITS TERRITORIES, DEPENDENCIES OR POSSESSIONS, INCLUDING ANY STATE OF THE UNITE
Slide 3: Important Information and Disclaimer (2/2)
IMPORTANT INFORMATION AND DISCLAIMER (2/2) IN RELATION TO THE UNITED STATES AND U.S. PERSONS, THIS COMPANY PRESENTATION IS BEING FURNISHED ONLY TO INVESTORS THAT ARE “QUALIFIED INSTITUTIONAL BUYERS” (“QIBs”), AS DEFINED IN RULE 144A UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURI
Slide 4: Summary of Key Risk Factors (1/2)
SUMMARY OF KEY RISK FACTORS (1/2) SUMMARY OF RISK FACTORS Investing in the Shares involves inherent risks. Investors should consider all of the information set forth in this Presentation, and in particular, the risk factors set out below. An investment in the Shares is suitable only for investors wh
Slide 5: Summary of Key Risk Factors (2/2)
SUMMARY OF KEY RISK FACTORS (2/2) Risks relating to laws and regulations • The Group's business and operations is subject to extensive laws, regulations and permit requirements and the Group's failure to comply with such could negatively affect its business. Financial risks • The Group will require
Slide 6: The Vision Behind Atlantic Sapphire – And Where Are We Now
The Vision Behind Atlantic Sapphire – And Where Are We Now ▪ Atlantic Sapphire is Large-scale site Phase 2 under Unique economic and Backed by highly capturing a US already operational construction to more environmental renowned financial megatrend and approaching than double capacity proposition sp
Slide 7: 2023 In Summary
2023 In Summary Jan May Jul Sept - - - - Apr Jun Aug Infrastructure Upgrades Production Mode Temperature Issues Return to Production Mode ▪ Heavy infrastructure upgrades and ▪ Stable conditions ▪ Temperature-related challenges ▪ Expect to have targeted operational improvements, requiring ▪ Low morta
Slide 8: Positive Ramp-Up in Biomass Gain in H1 2023
Positive Ramp-Up in Biomass Gain in H1 2023 Monthly biomass development (2023) Weekly feeding (2023) and comments Infrastructure upgrade Positive effects Temperature Tons of feed period from upgrades issues 25% 700 500 600 500 20% 400 400 300 15% 200 300 Jan Feb Mar Apr May Jun Jul Aug 10% ▪ Infrast
Slide 9: Q3 2023 Temperature Challenges
Q3 2023 Temperature Challenges Chiller capacity in operation and average water Comments temperature in growout systems per week ▪ Higher-than-anticipated downtime for maintenance and repairs of the rental chillers resulted in water temperature increases 6,000 Satisfactory chiller performance Higher
Slide 10: Operational Expectations Going Forward
Operational Expectations Going Forward H2 23 H1 24 Return to Production Mode Expected EBITDA break-even for Phase 1 ▪ 44% added chiller capacity to be installed by end- ▪ Standing biomass expected to have reached September, expected to lower and stabilize water Phase 1 budgeted level temperatures at
Slide 11: Management and Nordlaks Identified Key Improvement Measures
Management and Nordlaks Identified Key Improvement Measures Nordlaks – a leader within salmon farming Improvement in organization and procedures ▪ The result of Nordlaks’ and management’s review after Nordlaks joined the board seat has resulted in several tangible improvements ▪ Nordlaks is a large
Slide 12: Reduced Cash Burn Expected in H2 2023
Reduced Cash Burn Expected in H2 2023 H2’23 vs H1’23 s (USDm) Reducing the cost base by USD12m in H2 vs. H1 2023 ▪ Planned capex spend of ~USD 8m (H1 2023: USD15m), given Est. cash burn reduction that no new investment decisions will be made 12m cost reductions from achieved incremental ▪ Infrastruc
Slide 13: Current Fundraising Estimated To Be Sufficient To Reach EBITDA Break Even
Current Fundraising Estimated To Be Sufficient To Reach EBITDA Break Even Comments Estimated sources and uses (USDm) ▪ The Company estimates that the current fundraise will be sufficient to reach EBITDA break-even during H1 2024, given that temperatures 99-106 stabilize and performance in the farm g
Slide 14: Atlantic Sapphire’s Advantageous Location Unlocks Premium Pricing
Atlantic Sapphire’s Advantageous Location Unlocks Premium Pricing Highly developed footprint in close proximity Significant upside on price achievement to Commentary to Atlantic Sapphire follow satisfactory operational performance US price achievement: Premium fish (superior) and ~2,000 locations ca
Slide 15: Commissioned Phase 1 Facility and Phase 2 Under Construction
Commissioned Phase 1 Facility and Phase 2 Under Construction Phase 1 & 2 aerial view Atlantic Sapphire today ~580 ✓ Listed on the Oslo Stock Exchange - fully focused on the US ✓ Unique and patented water intake and discharge 305 capabilities ✓ Significant investments into construction of Phase 1 fac
Slide 16: Powerful Equity Story With Strong Growth Potential
Powerful Equity Story With Strong Growth Potential ▪ Atlantic Sapphire is Large-scale site Phase 2 under Unique economic and Backed by highly capturing a US already operational construction to more environmental renowned financial megatrend and approaching than double capacity proposition sponsors a
Slide 17: Supporting pages
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Slide 18: H1 2023 – Financial Statements Operational Update – August ‘23
H1 2023 – Financial Statements Operational Update – August ‘23 H1 2023 Consolidated Statement of Operations ▪ Harvest volume: 870t HOG in H1 2023 (H1 2022: 1,217t HOG) ▪ Cost of Good Sold in H1 2023 up by USD4.3m Y/Y, despite lower harvest volume ▪ Mortality cost of USD7.2m (H1 2022: USD1.3m) ▪ USD1
Slide 19: H1 2023 – Financial Statements Operational Update – August ‘23
H1 2023 – Financial Statements Operational Update – August ‘23 H1 2023 Consolidated Statement of Financial Position ▪ Cash: USD23.6m ▪ NIBD: USD 21.0m in H1 2023 (H1 2022: USD 41.4m) ▪ Capex: USD13.4m invested in phase 2 capex and USD1.2m invested in other capex 19 |
Slide 20: Key Risk Factors (1/9)
KEY RISK FACTORS (1/9) 1 RISK FACTORS Investing in the Shares involves inherent risks. Investors should consider all of the information set forth in this Presentation, and in particular, the risk factors set out below. An investment in the Shares is suitable only for investors who understand the ris
Slide 21: Key Risk Factors (2/9)
KEY RISK FACTORS (2/9) 1.1.2 Land-based salmon farming is a new, technology intensive method of salmon farming. If the Group is unable to effectively compete with existing methodologies, the Group's business and financial prospects would be adversely impacted The Group is applying recirculating aqua
Slide 22: Key Risk Factors (3/9)
KEY RISK FACTORS (3/9) 1.1.5 The Group has a limited operating history and the Group's past financial results may not be indicative of its future performance The Group began operations in 2010 and has a limited history of generating revenue, especially in a steady state production phase. As a result
Slide 23: Key Risk Factors (4/9)
KEY RISK FACTORS (4/9) 1.1.8 The Group's intellectual property rights are valuable, and any inability to protect them could reduce the value of its business and products The Group's success depends in large part on its proprietary technology and patents, trade secrets, trademarks and other intellect
Slide 24: Key Risk Factors (5/9)
KEY RISK FACTORS (5/9) In addition, job candidates and existing employees often consider the value of the equity-linked awards they receive in connection with their employment. If the value of the Company's Shares declines, it may adversely affect the Group's ability to hire or retain highly skilled
Slide 25: Key Risk Factors (6/9)
KEY RISK FACTORS (6/9) Construction work on Phase 2 at the Homestead Bluehouse is inherently subject to risk of delays compared to construction progress estimates set by the Company and Wharton-Smith from time to time (whether or not agreed as fixed construction deadlines and project milestones), in
Slide 26: Key Risk Factors (7/9)
KEY RISK FACTORS (7/9) 1.2 Risks relating to laws and regulations 1.2.1 The Group's business and operations is subject to extensive laws, regulations and permit requirements and the Group's failure to comply with such could negatively affect its business The Group's business and operations are subje
Slide 27: Key Risk Factors (8/9)
KEY RISK FACTORS (8/9) The lender under the Credit Facility has also required that the maximum amount of capital expenditures related to Phase 2 shall not exceed USD 300 million, and no funds for capital expenditure in excess of this have been committed. There can be no assurance that additional fin
Slide 28: Key Risk Factors (9/9)
KEY RISK FACTORS (9/9) 1.4 Risks relating to the Shares 1.4.1 Future issuances of Shares or other securities may dilute the holdings of shareholders and could materially affect the price of the Share The Company may, in the future, decide to offer additional Shares or other securities to finance new
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