Proximar Seafood As · OSL:PROXI
Proximar Seafood As — Q3 2023 Earnings Presentation
34 slides from Proximar Seafood As's earnings presentation, Nov 10, 2023
Slide 1: Presentation of 3Q 2023
Company Presentation Presentation of 3Q 2023 10.11.2023 Nytt bilde – Fisk eller anlegg? PRIVATE AND CONFIDENTIAL
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward-looking information and statements. Such forward-looking information and statements are based on the current, estimates and projections of Proximar Seafood AS (“the Company”) or assumptions based on information currently available to the Company.
Slide 3: Today's speakers
Today’s speakers Joachim Nielsen CEO “Our vision is to be a leading Company Presentation provider of sustainably produced seafood and provide a growing population with proteins.” Ole Christian Willumsen CFO 3 3
Slide 4: Highlights of the 3rd quarter 2023
Highlights of the 3rd quarter 2023 Important metrics development: Completion and handover of the grow-out building Biomass development # batches in # Proximar employees • Completion of handover of the grow-out building and production transfer of ownership of entire facility in September • This mar
Slide 5: Nursery department – production tanks
Nursery department – production tanks Company Presentation Photos: Proximar 5
Slide 6: High transportation cost coupled with high salmon prices give strong pricing in Japan
High transportation cost coupled with high salmon prices give strong pricing in the Japanese market Implied transportation cost Norway-Japan1), 12 month rolling Japan market price2) vs Norway export price, 12 month rolling Prices (NOK / kg) Difference in prices (NOK / kg) Prices (NOK / kg) Differenc
Slide 7: Robust outlook and attractive market fundamentals
Robust outlook and attractive market fundamentals Attractive market prices, driven by higher import costs – … translating to robustness in our business model also in Proximar well positioned for attractive margins… terms of volumes NOK / kg (HOG) at steady state production EBIT cost NOK / kg (HOG) a
Slide 8: Ongoing sales and marketing preparations with Marubeni
Ongoing sales and marketing preparations with Marubeni Close and active • Preparations for sales and marketing together with our long-term sales and distribution partner, collaboration between Marubeni Corporation Proximar and Marubeni on planning of the sales and • Strong interest from potential cu
Slide 9: Ongoing installation of equipment by AquaMaof in the grow-out building
Ongoing installation of equipment by AquaMaof in the grow- out building – first fish transfer in December Hand-over completed in September, ownership transferred to Proximar Currently ongoing installation of production equipment by AquaMaof Company Presentation CAPEX revised to ~ 1240 MNOK (1 195 MN
Slide 10: Production update: Encouraging growth through all batches
Production update: Encouraging growth through all batches, stable conditions in all departments Growth curves for Proximar’s first batches Proximar’s biomass development Growth in line with Compared to Skretting growth model, figures in grams In metric tonnes, live weight production plan System show
Slide 11: Proximar's RAS system providing excellent growth conditions and stable water quality
Proximar’s RAS system from AquaMaof is providing excellent growth conditions and stable water quality parameters Development in important water quality parameters in Proximar’s facility (Nursery B used as example) Temperature O2 levels in production tank Ammonia (NH𝟑 ) pH Figures in degrees Celsius
Slide 12: Continuing to build the team
Continuing to build the team - well on track for 2024 and first harvest Continued focus on the transition from construction to production and constantly recruiting new members to our team Production staffing ahead • Preparations for the first transfer of batches from the nursery to the of expectatio
Slide 13: Financial summary 3rd quarter 2023
Financial summary 3rd quarter 2023 P&L Q3 2023 Q3 2022 YTD 2023 YTD 2022 2022 Revenue and other income 0 0 6 0 0 Operating expenses Operating expenses -10 998 -6 187 -33 513 -17 265 -25 485 increasing as planned due Net financials - 3 382 -2 246 - 4 242 2 234 -3 236 to growing operational Earnings b
Slide 14: Financing requirements going forward
Financing requirements going forward CAPEX RELATED: • Total increase in 2Q and 3Q ~MNOK 90 Additional funding OPEX & WORKING CAPITAL RELATED: requirement of 165 MNOK planned resolved by combination of alternative • Following ongoing 2024 budget review additional working capital requirements and OPEX
Slide 15: Strategic opportunities
Strategic opportunities Background: Looking into 2024 and • Proximar is actively investigating strategic opportunities to strengthen the company going forward beyond, Proximar increasingly work on and secure shareholder returns developing strategic partnerships, primarily in • Further intensifying e
Slide 16: Summary and outlook
Summary and outlook Summary (end of) 3Q 2023: Production showing encouraging results, steady growth and stable water quality Further strengthening of the team, attracting very talented and qualified candidates Final drawdown of the bank loan secured and completion of grow-out building handover Compa
Slide 17: Q&A
Company Presentation 1 Q&A
Slide 18: Appendix: Consolidated statement of comprehensive income
Company Presentation Appendix: Consolidated statement of comprehensive income 1
Slide 19: Statement from the Board of Directors
Statement from the Board of Directors We hereby confirm that the financial statements for the period from To the best of our knowledge, the quarterly report gives a true and fair 1 January through 30 September 2023 to the best of our knowledge view of the main events during the accounting period and
Slide 20: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income (Amounts in NOK 1.000) Note Q3 2023 Q3 2022 YTD 2023 YTD 2022 2022 Revenue - - - - - Other income 2 - - 6 - - Revenue and other income - - 6 - - Cost of materials 1 202 - 3 378 - 680 Changes in biomass 3 -8 418 - -17 336 - -2 826 Personnel expenses 5 92
Slide 21: Consolidated statement of financial position
Consolidated statement of financial position (Amounts in NOK 1.000) Equity and liabilities 30 Sept 2023 30 Sept 2022 31 Dec 2022 ASSETS Equity Share capital 4 5 943 3 979 3 979 Non-current assets Share premium reserve 417 821 367 313 363 654 Assets under construction 2 1 005 731 535 074 618 162 Othe
Slide 22: Consolidated statement of changes in equity
Consolidated statement of changes in equity Share Share premium (Amounts in NOK 1.000) Note Translation Total equity capital reserve Other equity differences Balance at 1 January 2022 3 979 386 809 - -393 390 395 Loss for the period -23 183 622 -22 561 Currency effect on investment in subsidiaries *
Slide 23: Consolidated statement of cash flows
Consolidated statement of cash flows (Amounts in NOK 1.000) Note Q3 2023 Q3 2022 YTD 2023 YTD 2022 2022 Cash flow from operating activities Profit/(loss) before tax -14 380 -8 434 -37 750 -19 499 -28 721 Income taxes paid 0 - -10 - - Depreciation 2 2 958 657 9 195 1 474 3 750 Gain from sales of fixe
Slide 24: Note - Summary of significant accounting policies
Note 1 - Summary of significant accounting policies The Proximar Seafood group is an Norwegian-registered seafood company engaged in land-based fish farming, with its head office in Bergen, Norway. The Proximar group has started the construction of a production facility for Atlantic salmon close to
Slide 25: Note - Land, property, plant and equipment (1/2)
Note 2 - Land, property, plant and equipment (1/2) Amounts in 1.000 NOK Split between Right-of-use assets and owned assets: 30.09.2023 30.09.2022 Carrying amount RoU-assets 1 202 2 317 Carrying amount owned assets 1 216 404 537 008 Total property, plant and equipment incl. right-of-use assets 1 217
Slide 26: Note - Land, property, plant and equipment (2/2)
Note 2 - Land, property, plant and equipment (2/2) Amounts in 1.000 NOK Estimated useful life and depreciation plan is as follows: Economic life Not applicable Not applicable 25 years 25 years 3-15 years Depreciation plan Not applicable Not applicable Linear Declining Linear * Currency effect relate
Slide 27: Note – Biological assets
Note 3 – Biological assets Amounts in 1.000 NOK The group started with production in October 2022. At period end September 30th biological assets consists of the first batches of eggs measured at cost. Volumes of biomass (count) 30.09.2023 30.09.2022 31.12.2022 Volume of biomass 638 794 - 250 995 Re
Slide 28: Note - Share capital and shareholders (1/2)
Note 4 - Share capital and shareholders (1/2) The share capital of NOK 5.943.278 consisted of 59.432.780 shares, each with a nominal value of NOK 0,1 at 30 September 2023. All shares carry equal rights. The movement in the number of shares during the year was as follows: Ordinary shares at 1. Januar
Slide 29: Note - Share capital and shareholders (2/2)
Note 4 - Share capital and shareholders (2/2) List of main shareholders at 30. September 2023: Number of Ownership Shareholder Country shares percentage Daimyo Invest AS 7 996 238 13.5 % Grieg Kapital AS 6 480 049 10.9 % Helida AS 4 042 000 6.8 % Loyden AS 2 805 000 4.7 % Kvasshødgi AS 2 744 844 4.6
Slide 30: Note - Earnings per share
Note 5 - Earnings per share Amounts in NOK Q3 2023 Q3 2022 YTD 2023 YTD 2022 2022 Profit (loss) for the year -22 351 572 -5 718 277 -48 514 153 -20 924 694 -22 560 824 Weighted average number of outstanding shares during the year 59 180 171 39 787 650 49 684 364 39 787 650 39 787 650 Earnings (loss)
Slide 31: Note - Borrowings and other current liabilities (1/3)
Note 6 - Borrowings and other current liabilities (1/3) Amounts in NOK The Group has, through its subsidiary Proximar Ltd. (Japan), received a loan from a syndicate consisting of three large Japanese banks for a corporate loan of JPY 8.8 billion (NOK ~680 million). The loan is considered to be offer
Slide 32: Note - Borrowings and other current liabilities (2/3)
Note 6 - Borrowings and other current liabilities (2/3) Amounts in NOK In April 2023, the Group released a tap issue of the bonds with an option for conversion to shares in the parent company. The total amount issued is NOK 40.000.000 and consists of 40 mill bonds. The conversion rate of the bonds i
Slide 33: Note - Borrowings and other current liabilities (3/3)
Note 6 - Borrowings and other current liabilities (3/3) Amounts in NOK Payment profile non-current and current liabilities 2023 2024 2025 Total At 30. September 2023 Bullet credit facility 231 335 231 335 Loan to financial institution 626 384 626 384 Non-current interest bearing debt 104 200 104 200
Slide 34: Note – Subsequent events
Note 7 – Subsequent events The Group has repaid the outstanding principal of the term loan of JPY 2.500.000.000 with a maturity date of 29 March 2024, in full in October 2023. Company Presentation 34