Aker Biomarine Asa · OSL:AKBM
Aker Biomarine Asa — Q4 2021 Earnings Presentation
30 slides from Aker Biomarine Asa's earnings presentation, Feb 17, 2022
Slide 1: Fourth Quarter 2021 Presentation
FOURTH QUARTER 2021 PRESENTATION Aker BioMarine ASA 17 February 2022
Slide 2: 2021 - reduced revenue and earnings
2021 - reduced revenue and earnings Growth- and improvement plans initiated Revenue Adjusted EBITDA1 and margin USD mill. USD mill. ▪ The revenue and Adjusted EBITDA for 350 100 30% 2021 is in line with revised company guiding from early September 300 25% 262 80 ▪ Main factors for reduced adj. earni
Slide 3: Q4 2021 highlights
Q4 2021 highlights ▪ Revenue and Adj. EBITDA in line with guiding ▪ Krill oil sales increased by almost 80% from third quarter ▪ US customers the main driver ▪ Strong sales growth in Brands ▪ Obtained full distribution for Kori brand at two major US retailers, Sam’s Club and Costco ▪ Harvesting in t
Slide 4: Revenue and Adjusted EBITDA
Revenue and Adjusted EBITDA Revenue Adjusted EBITDA1 USD mill. USD mill. 76 74 76 21 62 19 50 15 7 7 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 ▪ Ingredients: 4% lower year/year, with marginal changes for both Qrill and Superba. ▪ Total adjustments in Q4 2020 of
Slide 5: Offshore operations
Offshore operations Our Antarctic krill fishery has been awarded an A-rating for the 7 th consecutive year* *) By Sustainable Fisheries Partnership (www.sustainablefish.org) 5
Slide 6: Offshore operations
Offshore operations Annual harvesting variations – expecting average annual volumes of 55,000-60,000 MT Annual production Daily production this season Antarctic Endurance phased in since 2019 Substantial variations Metric tons (MT) Metric tons (MT) ▪ 43,800 MT produced in 2021 60,000 600 ▪ Experienc
Slide 7: Onshore operations
Onshore operations Strong performance at krill oil plant in Houston with all-time-high production in 2021 Krill oil production and unit cost Houston facility Tons LTM 1,400 35 ▪ Q4 production reached a new all-time-high of 27% above the same quarter last year 1,200 30 ▪ Production cash cost per unit
Slide 8: Ingredients segment - Sales
Ingredients segment - Sales Krill meal (Qrill) Krill oil (Superba) ▪ Sales in the Qrill category were USD 30 million in the quarter, in line with the ▪ The growth plan for Superba has already yielded results and the revenue same period last year, and 13% above last quarter increased by almost 80% fr
Slide 9: Sales comeback for Superba krill oil
Sales comeback for Superba krill oil Total revenue Superba krill oil USD million 35 ▪ High sales volume in Q4 2021 30 ▪ Almost 80% increase from Q3, mainly driven by growth in the US 25 ▪ 2022: targeting 15% volume growth ▪ Sales not expected to be evenly distributed 20 between quarters ▪ Q1-22 expe
Slide 10: Superba growth plan & progress
Superba growth plan & progress Identified and maturing >80 prospects with a Recent actions and milestones total short-term potential of ~800 MT ▪ Key organizational changes ▪ Simon Seward appointed EVP and head of HH&N 1 ▪ Thong Luu appointed SVP HH&N Asia RoW, 19% ▪ Charlie Ross appointed SVP HH&N
Slide 11: Important new study: Krill oil significantly reduces major cardiovascular risk factors
Important new study: Krill oil significantly reduces major cardiovascular risk factors The study* is among the most substantial evidence to date for krill oil’s health benefits 1 Patients consuming the krill oil 2 The effect of krill oil was possibly even experienced a 33.5% reduction in blood stron
Slide 12: Brands segment
Brands segment Lang Pharma Nutrition (Private label) Epion (Kori consumer brand) Revenue breakdown by customer, Q4 2021 Surging Kori sales for stacking up available products USD million Other (Epion) Q1 2021 Q2 2021 Q3 2021 Q4 2021 ▪ Increased sales in the quarter as a result of the increased krill
Slide 13: Financials
FINANCIALS ANIMVWOI8 Yan (vy)
Slide 14: Financial developments
Financial developments Revenue Adj. EBITDA Adj. EBITDA margin Net interest-bearing debt USD mill. USD mill. USD mill. USD mill. 76 76 28% 314 21 232 10% 7 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 Q1 Q2 Q3 Q4 2020 2021 2021 2021 2021 14
Slide 15: EBITDA adjustments
EBITDA adjustments Limited adjustments in 2021. Kori launch cost prominent in 2020 4th Quarter Full year USD million 2021 2020 2021 2020 EBITDA 6.0 11.0 43.3 56.6 Kori launch cost - 6.7 - 17.0 Ex.ord. Covid-19 cost - 3.0 - 3.0 Transaction, restructuring and other cost 1.1 0.4 4.7 1.5 Sum adjustments
Slide 16: Ingredients segment
Ingredients segment Revenue Adj. EBITDA and margin USD million USD million 80% 20 56 54 18 70% 17 18 46 16 16 60% 40 14 50% 12 30 40% 10 40% 39% 7 8 30% 31% 6 5 20% 24% 4 10% 2 9% 0% - Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 16
Slide 17: Brands segment
Brands segment Revenue Adj. EBITDA and margin USD million USD million 18% 12.0 32 Kori launch cost All Kori expenses excluded in included in 30 16% adj. EBITDA* adj. EBITDA* 10.0 14% 12% 25 25 12% 11% 8.0 23 10% 6.0 8% 6% 3.3 4.0 2.9 4% 2% 2% 2.0 2% 0.5 0.6 0% 0.0 -2% -1.2 -2.0 -4% -5% -6% -4.0 Q4 2
Slide 18: Cost reductions in 2021
Cost reductions in 2021 Lowering total cost in Ingredients segment with 3% Ingredients cost base per main area* USD million 166 161 ▪ USD 10 million in reduced cost base 154 for 2021 from above 50 implemented initiatives 124 ▪ Led to a reduction in total cost base compared to 2020 despite several 98
Slide 19: Profit and loss in Q4 2021 and full year 2021
Profit and loss in Q4 2021 and full year 2021 Q4 2021 Q4 2020 2021 2020 USD million Net sales (Unaudited) (Unaudited) (Audited) (Unaudited) ▪ Revenue in the quarter was USD 75.7m, on par with same period last year. Sales in the Ingredients segment was 4% lower at USD 53.7m, while sales in Net sales
Slide 20: Balance sheet at end of Q4 2021
Balance sheet at end of Q4 2021 2021 2020 USD million Property, plant and equipment (Unaudited) (Unaudited) ▪ In February 2021, the Group took delivery of Antarctic Provider, replacing ASSETS La Manche which was sold in October 2021. Total project purchase price Property, plant and equipment 327.9 2
Slide 21: Cash flow in Q4 2021 and full year 2021
Cash flow in Q4 2021 and full year 2021 Q4 2021 Q4 2020 2021 2020 USD million Cash flow from operations (Unaudited) (Unaudited) (Audited) (Unaudited) ▪ During Q4-21 there has been release of inventory combined with NRV adjustment amounting to USD 12.2m Net profit (loss) after tax (9.1) 2.9 (8.7) (5.
Slide 22: Targets & Outlook
TARGETS & OUTLOOK ANIMVWOI8 Yan (vy)
Slide 23: Aker BioMarine - Roadmap for growth and value creation
Unchanged from the Capital Markets Update, December 2021 Aker BioMarine - Roadmap for growth and value creation Operational leverage, margin uplift and unlocking the long-term growth potential Ambition to nearly double revenues the next four years Main value creation pillars Revenue, USD million1 60
Slide 24: Our agenda: Profitable growth and exploit the large market potential
Unchanged from the Capital Markets Update, December 2021 Our agenda: Profitable growth and exploit the large market potential Krill harvesting Krill meal Krill oil Private label and consumer brands in US Increase # of fishing days, improve Lift price and grow business Short- and long-term sales Capi
Slide 25: Outlook 2022
Unchanged from the Capital Markets Update, December 2021 Outlook 2022 20%-25% Innovations ▪ Aion: ongoing process to spin off the company targeted 2022 revenue growth expected to be concluded in first half 2022 ▪ Lysoveta: aiming for first commercial supplement product ready by end of year. Ongoing
Slide 26: Appendix
@) AKER BIOMARINE APPENDIX
Slide 27: 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 28: Revenue per product
Revenue per product Excluding eliminations between Ingredients and Brands 2.8 3.5 4.5 24.7 30.0 4.5 32.3 3.1 24.8 27.0 23.2 27.1 24.5 22.0 9.5 25.1 23.7 17.7 16.6 13.3 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Krill oil Qrill Aqua Brands Other* * Other includes Asta, Pet and QHP 28 In the reported fig
Slide 29: Overview of news flow and key events
Overview of news flow and key events DATE NEW PUBLICATIONS AND SCIENCE New study: Krill Oil significantly reduces major cardiovascular risk factors. This US study shows that krill oil significantly reduces the triglyceride levels in the blood, an important measure 17 Jan of heart health. New study:
Slide 30: Aker BioMarine
ey AKER BIOMARINE