Salmones Camanchaca SA · BCS:SALMOCAM

Salmones Camanchaca SA — Camanchaca — Q1 2017 Earnings Presentation

21 slides from Salmones Camanchaca SA's earnings presentation, May 24, 2017

  1. Slide 1: Camanchaca

    s© Camanchaca a)

  2. Slide 2: Northern Pelagic Fishing: Good Catches

    Northern Pelagic Fishing: Good Catches North: Normalization of temperatures at sea; Abundant biomass near Iquique; Low costs Thousands of tons 140- 150 49 40-45 18 11 34 5 1 2016 2017 2016 2017 E 2016 2017 2016 2017 2016 2017 E Q1 Q2 Q3 Q4 Year Northern catches include own and third parties Company’

  3. Slide 3: South-Central Pelagic Fishing

    South-Central Pelagic Fishing J. Macke.: Normal fishing conditions vs very favorable conditions in Q1 2016-2015. Sardine: Normalization in 8th region. Higher third parties catches (+50%). Jack Mackerel Thousands of tons Sardine (own) 106 92-106 Sardine (third parties) 12 50 45- 23 50 2 22 25-30 10-

  4. Slide 4: Fishmeal Price

    Fishmeal Price Prices down due to higher quotas and catches in Peru. US$ / ton (Camanchaca) Peru’s Fishing Quota (North-Centre Region): Nov to Jan: 2.0 M Ton May to Jul: (98% catched) 2.8 M Ton May to Jul: May to Jul: Nov to Jan: May to Jul: 2.5 M Ton Nov to Jan: 2.6 M Ton 1.1 M Ton 1.8 M Ton (68% c

  5. Slide 5: Camanchaca Diesel Price (US$/lt)

    Camanchaca Diesel Price (US$/lt) 0.84 0.84 0.82 0.70 0.54 0.54 0.49 0.43 0.44 0.39 0.41 0.37 0.30 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q1 2017: • With constant volume, increased fuel costs of US $ 0.8 million. • Fuel cost is approx.

  6. Slide 6: Stocks

    Stocks (valued at cost) Recovery of inventories of Fishmeal (US$ 883/ton), Fish Oil (US$ 695/ton) and Mussels (US$ 1.6/kg) March 31, 2017 December 31, 2016 March 31, 2016 December 31, 2015 VOLUM Months of ThUS$ VOLUME ThUS$ VOLUME ThUS$ VOLUME ThUS$ E Production SALMON Atlantic Salmon (Tons) 1,467 0

  7. Slide 7: Salar: 2015 Stocking Reduction Decision

    Salar: 2015 Stocking Reduction Decision Harvest (thousands of tons WFE) 45 43 39 12 32 32 29 HAB 24 Q1 27 11 12 9 5 2014 2015 2016 2017 E 2015 Prices at their historical lows impacted by currency devaluations against the US dollar led to the decision of not stocking 2 sites in favor of a solid finan

  8. Slide 8: Atlantic Salmon Price

    Atlantic Salmon Price Stable prices for an estimated increase ~ 3% of world supply in 2017 but with differences in semesters. Lower harvests in Q1-17 due to HAB 2016 and lower stocking 2015. Harvest (Thousands of Tons) Price (US$ / Kg WFE) 2016 2017 6.5 Δ+16% 7.1 6.8 6.7 5.6 Δ+16% 6.2 Δ+69% 5.8 4.2

  9. Slide 9: Atlantic Salmon Price: Long-term trend

    Atlantic Salmon Price: Long-term trend Urner Barry Equivalent Trim C 2-3 (US$/Lb) Large devaluation in major markets and non-tariff restrictions Algae bloom 6.5 Overshooting recovery 6.0 ISA Virus post ISA 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 jul-16 jul-04 jul-05 jul-06 jul-07 jul-08 jul-09 jul-10 jul-11

  10. Slide 10: Atlantic Salmon: Return of the raw material (relative performance)

    Atlantic Salmon: Return of the raw material (relative performance) Camanchaca vs Market (Salmonex, January 2015 = Base 100) Urner Barry Salmonex Camanchaca 200 180 160 140 120 100 80 60 40 20 0 Jan-15 Apr-15 Jul-15 Jan-16 Apr-16 Jul-16 Jan-17 Apr-17 Oct-15 Oct-16 Lag in months with strong spot price

  11. Slide 11: Salar Stocking: Chilean Industry

    Salar Stocking: Chilean Industry Salar Stocking January to April (million fish) +20% 40 42 +40% 35 30 2014 2015 2016 2017 Source: Information and self-estimation 11

  12. Slide 12: Salar Stocking Plans 10th and 11th regions

    Salar Stocking Plans 10th and 11th regions Salar Stocking in previous cycle vs post new regulation cycle (million fish): 50% of the neighborhoods -5,4% Previous cycle Post new regulation cycle 79.5 75.2 6.8 6.8 Total 10th - 11th Region Source: Subsecretaría de Pesca y Acuicultura 12

  13. Slide 13: Chilean Salmon Price Expectation for 2017

    Chilean Salmon Price Expectation for 2017 Urner Barry Trim C 2-3, spot market USD/Lb 6.50 6.00 5.50 5.00 4.50 4.00 3.50 3.00 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Fishpool Index Forwards Based Model Adjusted By: • Seasonal Historical Demand in the USA •

  14. Slide 14: Atlantic Salmon Sanitary Conditions in Camanchaca

    Atlantic Salmon Sanitary Conditions in Camanchaca (closed cycle) Q1-16 affected by harmful algae bloom (HAB) event. Favorable sanitary conditions starting in Q2-16 Mortality 2015 2016 2017 64.3% 36.8% 19.2% 8.7% 5.5% 9.0% 5.5% 7.3% 3.8% E E Q1 Q2 Q3 Q4 Year Economic Feed Conversion Ratio 2.87 1.58 1

  15. Slide 15: Atlantic Salmon Costs

    Atlantic Salmon Costs Q4-15 and H1-16 affected by SRS and low oxygen conditions in the 10th region. Better Q1-17 vs Q1-15 and Q1-16. Atlantic Salmon - Liveweight ex-cage cost (US$ / kg) 3.66 3.75 3.08 3.09 Others 3.07 2.95 3.02 2.92 2.79 2.79 Medicine Labor Smolt OPEX Feed Q4 2014 Q1 2015 Q2 2015 Q3

  16. Slide 16: Development of Atlantic Salmon Margins

    Development of Atlantic Salmon Margins Back to positive margins in Q2-16 increased in H2-16 Lower harvests in Q1-17 (-47%) with increase in unit cost. Raw Material Cost and RMP (Raw Material Return) 10th region sites 11th region sites Base 100 = RMP January 2014 130 Leptepu Puelche Leptepu Puelche |

  17. Slide 17: Development of Atlantic Salmon Margins

    Development of Atlantic Salmon Margins EBIT (US$/Kg WFE) before Fair Value in the Salmon business Atlantic Salmon Business EBIT without trout joint account 3.0 2.78 2.5 1.93 2.0 1.5 0.87 1.0 0.46 0.5 0.0 -0.5 -0.72 -1.0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

  18. Slide 18: Results January – March

    Results January – March (US$ million) 2016 2017 Profit/Loss 6.7 2.4 1.4 0.3 -0.5 -2.7 -3.6 -4.6 Fishing Salmon Other Seafood TOTAL EBITDA (before Fair Value) 18.8 15.3 0.4 -1.2 -0.2 -3.9 -6.0 -7.3 Fishing Salmon Other Seafood TOTAL 18

  19. Slide 19: Last 4 mobile quarters development

    Last 4 mobile quarters development EBITDA Revenues X% EBITDA/Revenues 496 489 488 487 483 485 483 470 459 462 453 13.3% 446 12.4% 12.0% 439 11.0% 11.4% 66.1 10.2% 60.0 58.7 10.0% 53.0 55.4 6.7% 5.6% 45.1 47.1 4.9% 3.0% 32.8 2.3% 25.5 1.8% 21.6 14.5 10.1 8.7 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2

  20. Slide 20: Q1 2014 – Q1 2017: Last 4 mobile quarters development

    Q1 2014 – Q1 2017: Last 4 mobile quarters development 157 157 163 184 179 161 169 151 146 147 141 33.1 126 22.6 29.0 27.3 107 105 20.4 18.8 15.7 18.9 15.6 FISHING 11.2 10.3 6.7 -6.9 -9.7 Total 353 352 328 Revenues 295 288 299 278 279 275 263 263 269 252 260 247 Own 233 242 Revenues 222 SALMON 227 63

  21. Slide 21: Camanchaca

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Camanchaca — Q1 2017 Earnings Presentation on 6ix