Proximar Seafood As · OSL:PROXI
Proximar Seafood As — H2 2022 Earnings Presentation
36 slides from Proximar Seafood As's earnings presentation, Feb 24, 2023
Slide 1: Presentation of 2nd half 2022
Company Presentation Presentation of 2nd half 2022 24.02.2023 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: Japan is the perfect location for land-based fish farming
Japan is the perfect location for land-based fish farming → Large and stable market, premium pricing, cost and emission savings, along with economic stability PROXImity to a large, premium pricing MARket saves transportation, which Japan has a stable economic system and export significantly reduce e
Slide 4: Proximar at a glance
Proximar at a glance Norwegian company building a land-based RAS facility Experienced team and owners, Offtake agreement in place, for production of Atlantic salmon in Japan and strong partners in Japan attractive margins expected Figures in NOK/kg (HOG) • Stage I planned production of 5,300 tonnes
Slide 5: The significant cost advantage illustrates the robustness in our business model
The significant cost advantage illustrates the robustness in our business model Expected annual harvest with varying densities Expected non-tax (EBT) cost at varying harvest levels Tonnes (HOG) at steady state production NOK / kg (HOG) at steady state production 6 660 Proximar net price1:112 6 000 P
Slide 6: Highlights of the 2nd half 2022
Highlights of the 2nd half 2022 Important metrics development: Issue of convertible bond in October of MNOK 250 Construction # batches in # Proximar employees • Strong support from our major shareholders completion production • Successfully secured funding in a challenging market Increased JAML co
Slide 7: Subsequent events
Subsequent events JPY 4.0 • Credit approved loan offer (~MNOK 300) for post construction financing billion loan • Drawdown end of 2024 offer • Subject to syndication, but large interest of participation received • Permitting subordinated debt to accommodate Proximar’s debt target • Received loan off
Slide 8: Proximar has entered production phase, with completion of facility expected in ~6 months
Proximar has entered production phase, with completion of facility expected in ~6 months Construction initiated First harvest Today (Medio 2024) 2020 2021 2022 2023 2024 2025 Construction period (~28 months) Company Presentation Engineering completed Site preparations Hatchery construction Grow-out
Slide 9: ~6% increase in CAPEX estimate
~6 % increase in CAPEX estimate, of which 3/4 relates to currency development and optional extras to enhance production & OPEX Currency effect will be offset by Proximar raising debt in JPY Proximar CAPEX update, comparison to October estimate Figures in mNOK Proximar has chosen to 20 1115 upgrade f
Slide 10: The facility entering the final stages of construction works
The facility entering the final stages of construction works Post smolt grow out Construction of facility according to original schedule – completion of Company Presentation construction targeted 3Q23 More than 95% of CAPEX Hatchery and nursery fixed and limited exposure to material cost increase se
Slide 11: Production initiated with first batch of eggs in October
Production initiated with first batch of eggs in October The juveniles are currently in start feeding and two additional batches has been inserted since Proximar facility: Performance according to our expectations and in-line with performance seen in other Aqua Maof facilities Company Presentation A
Slide 12: Experiencing a significant interest for Proximar in Japan
Experiencing a significant interest for Proximar in Japan Strong interest for Proximar in Japan, demonstrated by the broad coverage in the Japanese media following the ceremony in November Company Presentation We are also experiencing keen interest from potential buyers of our fish through Marubeni
Slide 13: Financial summary 2nd half 2022
Financial summary 2nd half 2022 Operating expenses P&L H2 2022 H2 2021 Full-year 2022 Full-year 2021 increase due to operational Revenue and other income 0 0 0 0 start-up. Operating expenses -14 408 -4 279 -25 485 -9 825 Net financials - 3 248 -1 300 -3 236 -15 191 Strong equity of MNOK 390 Earnings
Slide 14: Debt financing update
Debt financing update Proximar has received a debt financing offer of JPY 8.8 bn from a syndicate of two large Japanese banks Proximar Seafood AS has, through its subsidiary Proximar Ltd. (Japan), received a loan offer from a syndicate consisting of two large Japanese banks for a corporate loan of J
Slide 15: Japanese market for Atlantic salmon remains solid despite significant increase in prices
Japanese market for Atlantic salmon remains solid despite significant increase in prices Atlantic salmon consumption in Japan Toyusu market prices Figures in kMT, head-on-gutted equivalents Figures in NOK/kg, head-on-gutted NOK/kg LTM average 180 ~45 % increase in market 65 66 160 prices of Atlantic
Slide 16: Increased implied transportation cost from Norway to Japan
Increased implied transportation cost from Norway to Japan, with 2022 average of 29 NOK/kg Atlantic salmon price/cost Development in price/cost components NOK/kg (HOG) components Japan 160 NOK/kg (HOG) 140 General cost increase of 111+premium Targeted premium transportation along with Price premium
Slide 17: Summary and outlook
Summary and outlook Summary (end of) H2 2022: On track on construction with regards to time and cost Production successfully started according to schedule, and first batches demonstrating good performance The technology by AquaMaof continued to prove its functionality showing stable performance and
Slide 18: Q&A
Company Presentation 1 Q&A
Slide 19: Appendix: Consolidated statement of comprehensive income
Company Presentation Appendix: Consolidated statement of comprehensive income 1
Slide 20: Statement from the Board of Directors
Statement from the Board of Directors We hereby confirm that the financial statements for the period from 1 To the best of our knowledge, the half-year report gives a true and fair July through 31 December 2022 to the best of our knowledge have been view of the main events during the accounting peri
Slide 21: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income (Amounts in NOK 1.000) Note H2 2022 H2 2021 31 Dec 2022 31 Dec 2021 Revenue - - 0 - Revenue and other income - - - - Production cost 680 680 Changes in biomass and inventory 3 -2 826 -2 826 Personnel expenses 7 008 1 835 12 939 5 280 Depreciation and Am
Slide 22: Consolidated statement of financial position
Consolidated statement of financial position (Amounts in NOK 1.000) Note 31 Dec 2022 31 Dec 2021 (Amounts in NOK 1.000) Note 31 Dec 2022 31 Dec 2021 ASSETS Equity and liabilites Non-current assets Assets under construction 2 649 729 384 839 Equity Property, plant and equipment incl. right-of-use ass
Slide 23: Consolidated statement of changes in equity
Consolidated statement of changes in equity Share Share premium Other Translation (Amounts in NOK 1.000) Total equity Note capital reserve equity differences Balance at 1 January 2021 1 510 32 579 - 39 34 128 Loss for the period -25 544 -25 544 Currency effect on investment in subsidiaries * 1 970 1
Slide 24: Consolidated statement of cash flows
Consolidated statement of cash flows (Amounts in NOK 1.000) Note H2 2022 H2 2021 31 Dec 2022 31 Dec 2021 Cash flow from operating activities Loss before tax -17 655 -5 579 -28 721 -25 016 Income taxes paid - -6 - -6 Depreciation 2 2 934 111 3 750 112 Change in biological asset 3 -2 868 -2 868 Change
Slide 25: 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 26: Note - Land, property, plant and equipment (1/2)
Note 2 - Land, property, plant and equipment (1/2) Amounts in 1.000 NOK Assets under Equipment Right-of-use Period ended 31 December 2022 construction Buildings RAS and vehicles assets Total Cost at 1. July 2022 451 730 - - 1 850 3 430 457 009 Additions in the period 189 670 47 442 62 982 20 656 748
Slide 27: Note - Land, property, plant and equipment (2/2)
Note 2 - Land, property, plant and equipment (2/2) Amounts in 1.000 NOK Assets under construction is recognized based on milestone payments. The management has assessed that the payment schedule is the best estimate to reflect the percentage of completion on the construction process. Total capital e
Slide 28: Note - Biological assets
Note 3 – Biological assets Amounts in 1.000 NOK The group startet with production in October. At year end 2022 biological assets consists of the two first batches of eggs measured at cost. Volumes of biomass (count) 2022 2021 Volume of biomass 250 995 - Production cost * Depreciation 212 Company Pre
Slide 29: Note - Deferred tax and tax expense
Note 4 - Deferred tax and tax expense Amounts in 1.000 NOK Specification of income tax expense The tax benefit/(expense) is calculated based on income before tax and consists of current tax and deferred tax. Income tax expense 2022 2021 Current tax expense -6 160 528 Income tax expense -6 160 528 Co
Slide 30: Note - Share capital and shareholders (1/2)
Note 5 - Share capital and shareholders (1/2) The share capital of NOK 3,978,765 consisted of 39,787,650 shares, each with a nominal value of NOK 0,1 at the end of 2022. All shares carry equal rights. The movement in the number of shares during the year was as follows: 2022 2021 Ordinary shares at b
Slide 31: Note - Share capital and shareholders (2/2)
Note 5 - Share capital and shareholders (2/2) List of main shareholders at 31 Desember 2022 and 2021 31 Dec 2022 31 Dec 2021 Number of Ownership Number of Ownership Shareholder shares percentage shares percentage Daimyo AS 3 996 238 10,0 % 3 996 238 10,0 % Grieg Kapital AS 3 180 049 8,0 % 3 180 049
Slide 32: Note - Earnings per share
Note 6 - Earnings per share Amounts in NOK H2 2022 H2 2021 31 Dec 2022 31 Dec 2021 Profit (loss) for the year -11 495 361 -5 578 985 -22 560 824 -25 015 878 Weighted average number of outstanding shares during the year 39 787 650 38 430 982 39 787 650 38 430 982 Earnings (loss) per share - basic and
Slide 33: Note - Borrowings and other current liabilities (1/3)
Note 7 - Borrowings and other current liabilities (1/3) Amounts in NOK The Group has two loans from credit institutions and one convertible bond in 2022. In September 2021 the Group entered into a credit facility with a Japanese credit institution. The total financing agreement is JPY 2.500.000.000.
Slide 34: Note - Borrowings and other current liabilities (2/3)
Note 7 - Borrowings and other current liabilities (2/3) Amounts in NOK Non-current liabilities Borrowing company Currency 2022 2021 Non-current bullet credit facility Proximar Ltd (Japan) Seafood AS JPY 242 925 95 766 Long term loan to financial institution (Norway) Proximar Seafood AS NOK 0 921 Con
Slide 35: Note - Borrowings and other current liabilities (3/3)
Note 7 - Borrowings and other current liabilities (3/3) Amounts in NOK Current trade payables and other payables 2022 2021 Current portion of borrowing and lease liabilities 2 029 1 165 Trade payables 530 1 160 Taxes payable Japan 1 448 0 Social security and other taxes 319 461 Salaries and vacation
Slide 36: Note - Subsequent events
Note 8 - Subsequent events The Group has, through its subsidiary Proximar Ltd. (Japan), received a loan offer from a syndicate consisting of two large Japanese banks for a corporate loan of JPY 8.8 billion (NOK ~680 million). The offer consists of a Highly Confident Letter along with a term sheet. T