Aker Biomarine Asa · OSL:AKBM
Aker Biomarine Asa — Q3 2022 Earnings Presentation
24 slides from Aker Biomarine Asa's earnings presentation, Nov 1, 2022
Slide 1: Third Quarter 2022
THIRD QUARTER 2022 Aker BioMarine ASA 1 November 2022
Slide 2: Third quarter 2022 highlights
Third quarter 2022 highlights ▪ Revenue up 10% up from same quarter last year, with 28% increased EBITDA ▪ Net profit of USD 5 million ▪ Krill offshore production of 50,100 MT year-to-date ▪ 23% higher than the year before ▪ Ingredients ▪ Qrill Aqua with increased volume and price ▪ Superba sales wi
Slide 3: Revenue and Adjusted EBITDA
Revenue and Adjusted EBITDA Revenue Adjusted EBITDA1 USD million USD million 76 73 68 21 62 19 57 15 8 7 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 3 1) Aker BioMarine evaluates the performance based on Adjusted EBITDA. This metric is defined as operating profit
Slide 4: Our operations in Antarctica
Our operations in Antarctica Increased market share in a large, growing and strictly regulated krill biomass in Antarctica Krill fishing in Area 48 Growing annual market share 1 %: max share of precautionary catch limit per area Aker BioMarine’s share of global krill catch ▪ Large and growing krill
Slide 5: Offshore operation details
Offshore operation details Significantly increased produced volumes in 2022 Annual production Quarterly production Solid leap in volumes this year Higher Q3 volumes Metric tons (MT) Metric tons per quarter ▪ Well-functioning vessel fleet with 25,000 steady operations 53,200 ▪ Offshore production imp
Slide 6: Highlights Qrill category
Highlights Qrill category ▪ Good sales performance in the quarter ▪ Revenues Qrill Aqua increased 24% compared with a year ago ▪ Implemented price increase for Qrill Aqua on the back of the significant industry raw material inflation ▪ Increased focus on Norwegian salmon farming industry ▪ Cooperate
Slide 7: Targeting around 30% higher Qrill Aqua revenue in 2022 than 2021
Targeting around 30% higher Qrill Aqua revenue in 2022 than 2021 Annual revenue Qrill category USD million ▪ Increased offshore krill production an important Thousands factor in lifting Qrill category revenue 120 ▪ Increased Qrill Aqua volume ▪ Targeting 20-25% higher sales volume in 2022 90 than 20
Slide 8: Highlights Superba
Highlights Superba Sales in 2022 impacted by macro events – set for delivering on our plans Superba revenue USD million, rolling 12 months ▪ Superba sales of USD 14 million in the quarter ▪ Marginally up from Q3-21, but behind our target 100 ▪ Adjusted sales forecast for the full year 80 ▪ Lower sal
Slide 9: Submission for health claim for Superba krill oil in South Korea
Submission for health claim for Superba krill oil in South Korea Submission finalized with the Ministry of Food and Drug Safety, awaiting decision by review-board in Q4 Superba sales in South Korea Brands failed the consumers ▪ Brands were too aggressive with their claims USD millions ▪ Fraudulent k
Slide 10: Update on the Superba sales acceleration plan
Update on the Superba sales acceleration plan Longer-term annual sales growth target of +15% to 20% Strengthened the Renewed pipeline New products and Improved organization to of business innovations for documentation and facilitate for sales prospects increased offering health claims on growth and
Slide 11: Highlights Brands segment
Highlights Brands segment Increasing our Kori offering Lifted Private label gross margins Launch of a multi-benefit omega-3 Price increases in September to gummies supplement offset inflation ▪ Sales of USD 27 million, 10% higher than same period last year Average margin development at major retaile
Slide 12: Financials
FINANCIALS ANIMVWOI8 Yan (vy)
Slide 13: Financial development
Financial development Group figures Revenue Adj. EBITDA and margin Net interest-bearing debt USD million USD million and % USD million 76 30 35% 73 360 349 68 29% 28% 30% 324 62 25 314 305 57 24% 21 25% 20 19 20% 15 15 14% 15% 10 10% 8 7 10% 5 5% 0 0% Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2021
Slide 14: Ingredients segment
Ingredients segment Revenue Adj. EBITDA and margin USD million USD million 80% 25 54 22 49 70% 44 20 60% 40 16 15 50% 15 30 40% 45% 39% 10 30% 7 34% 20% 5 23% 5 10% 0% 9% - Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 ▪ Qrill category: sales up 16% compared to Q3 2
Slide 15: Brands segment
Brands segment Revenue Adj. EBITDA and margin USD million USD million 18% 16.0 17% 30 31 16% 15% 14.0 14% 27 27 13% 12.0 11% 25 12% 11% 10.0 10% 9% 8.0 8% 7% 6% 5% 6.0 5% 3.3 4.0 4% 3% 1% 1.3 2.0 2% 1% 0.3 0% 0.0 -1% -2% -2.0 -3% -1.2 -4% -5% -2.5 -4.0 -6% -6.0 -7% -8% -5% -8% -9% -8.0 Q3 2021 Q4 20
Slide 16: Profit and loss statement
Profit and loss statement Q3 2022 Q3 2021 YTD 2022 YTD 2021 2021 USD million (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) Net sales 67.9 62.0 198.2 186.3 262.1 Net sales Cost of goods sold (36.6) (40.5) (115.2) (118.0) (174.0) ▪ Net sales for the quarter up 10% compared to third quarter
Slide 17: Balance sheet statement
Balance sheet statement Q3 2022 Q3 2021 2021 USD million (Unaudited) (Unaudited) (Audited) ASSETS 325.1 322.5 327.9 Property, plant and equipment Property, plant and equipment ▪ Growth and maintenance capex in the quarter, primarily in the Ingredients Right to use assets 10.7 12.3 11.3 segment on ve
Slide 18: Cash flow statement
Cash flow statement Q3 2022 Q3 2021 YTD 2022 YTD 2021 2021 USD million (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Net profit (loss) after tax 4.6 13.5 9.8 0.4 (8.0) Cash flow from operations Taxes, net 0.2 0.2 (1.2) 3.9 3.9 ▪ Positive cash flow from operations despite build-up of in
Slide 19: Adjusted full-year 2022 targets
Adjusted full-year 2022 targets Earnings target unchanged - expecting lower topline growth and higher margins for the year ▪ Qrill Aqua: Higher volumes and prices lifts sales Sales growth of 8%-12% (prev. 20%-25%) ▪ Superba: Organizational reset and macro backdrop impacts speed of recovery Good mome
Slide 20: Appendix
@) AKER BIOMARINE APPENDIX
Slide 21: Important information
Important information This presentation has been prepared by Aker BioMarine ASA (the "Company"). The presentation does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of the Company
Slide 22: Revenue per product
Revenue per product Excluding eliminations between Ingredients and Brands 2.8 3.5 3.2 30.0 4.5 3.3 27.2 27.3 24.8 30.5 27.1 30.8 27.3 22.0 14.1 23.7 13.3 12.7 14.5 13.9 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Krill oil Qrill Aqua Brands Other Qrill category * * Other includes Qrill Pet, Asta and QHP
Slide 23: Aker BioMarine has hedged ~90% of fuel price exposure through 2024
Aker BioMarine has hedged ~90% of fuel price exposure through 2024 Curbing the impact on surging oil prices and creates predictability in largest cost drive Spot price development Gasoil 0.1% FOB Rotterdam Barges (USD/Mt) 1,400 ▪ In mid-2020 Aker BioMarine locked in 100% of estimated 2021-2024 fuel
Slide 24: Aker BioMarine
ey AKER BIOMARINE