Aker Biomarine Asa · OSL:AKBM
Aker Biomarine Asa — Q3 2023 Earnings Presentation
30 slides from Aker Biomarine Asa's earnings presentation, Nov 1, 2023
Slide 1: Third Quarter 2023
THIRD QUARTER 2023 Aker BioMarine ASA 1 November 2023
Slide 2: Third quarter 2023 highlights
Third quarter 2023 highlights ▪ Revenue of USD 94.6 million, up 39% from USD 67.9 million in the same quarter last year ▪ Adjusted EBITDA of USD 24.9 million, up 32% from USD 18.8 million same quarter last year ▪ Krill offshore production volumes of 12,073 MT (12,737 MT) – vessels currently at shipy
Slide 3: Quarterly revenue and Adjusted EBITDA
Quarterly revenue and Adjusted EBITDA Revenue Adjusted EBITDA1 USD million USD million 95 89 25 79 21 68 69 21 19 6 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 3 1) Aker BioMarine evaluates the performance based on Adjusted EBITDA. This metric is defined as operat
Slide 4: Offshore operations
Offshore operations 2023 season tracking on par with 2022 Annual production Quarterly production Metric tons (MT) Metric tons per quarter ▪ Steady harvesting operations 25 000 ▪ Q3 production of 12,073 MT, down 5% YoY 52 000 51 700 ▪ YTD production prior to shipyard of 49,800 MT, flat YoY 45 000 20
Slide 5: Continuously working to increase fishing volumes through operational learning and excellence
Continuously working to increase fishing volumes through operational learning and excellence Fishing days Production per fishing day Days MT ▪ Increase no. of fishing days per year 360 300 1. Reduce krill search time (search drones) 2. Minimize technical downtime 320 3. Increase offload efficiency 2
Slide 6: Highlights Qrill category
Highlights Qrill category LTM Qrill category revenues up 28% YoY Annual revenue, USD million ▪ Qrill Aqua with 46% higher revenues YoY 150 Thousands ▪ Higher volumes main driver ▪ Prices up 3% YoY and 10% QoQ 120 ▪ Continued favorable market for marine Omega3 and fishmeal drives demand, especially i
Slide 7: Sales volumes of Qrill now exceeds production over the last 12 months
Sales volumes of Qrill now exceeds production over the last 12 months LTM Qrill meal sales vs production 1) (MT) +43% ▪ Significant Qrill demand has been built since ’21 ▪ Endurance added significant volumes ▪ Superba has required less Nutra meal due to shut down in Houston – switching volumes over
Slide 8: Qrill Aqua provides significant value to farmers and feed producers, creating higher willingness to pay
Qrill Aqua provides significant value to farmers and feed producers, creating higher willingness to pay Qrill Aqua – price development Total value of krill Aqua, illustrative Krill with premium to fish meal prices USD/Mt (USD, 2012 = 1) +4% 10 500 16% CAGR in 1.5 sales volume 1.4 +2% 1.3 +9% ~3x ret
Slide 9: Highlights Superba
Highlights Superba Superba revenue up 51% YoY USD million 25 ▪ Superba revenues of USD 20.9 million, up 51% YoY ▪ Healthy development in Asia, Europe and Australia ▪ Superba consumer sales re-launched in South Korea 20 ▪ Houston started to ramp up production 15 ▪ Houston set up to produce Algae base
Slide 10: Successful launch in Korea – clear strategy to rebuild market
Successful launch in Korea – clear strategy to rebuild market Past Channel Future Distribution Distribution ▪ First round of TV shopping was initiated end of Q3, Partners Other with a corresponding educational documentary ▪ Sales during the first month has beat the TV channels target - marketing cam
Slide 11: Highlights Brands segment
Highlights Brands segment Lang Epion ▪ Revenues up +23% YoY ▪ Sales of Kori was lower YoY due ▪ Continued shipments of the new to a change of distribution with a gummy products major retailer ▪ Successful promotions at club channels ▪ Kori also expanded distribution ▪ General good demand for private
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 95 26% 30 30% 28% 89 26% 399 388 24% 25 373 79 25 25% 360 359 21 68 69 21 20 20% 19 15 15% 10 9% 10% 6 5 5% 0 0% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2
Slide 14: Ingredients segment
Ingredients segment Revenue Adj. EBITDA and margin USD million USD million 30 64 62 60% 24 25 53 50% 21 44 20 42 40% 15 31% 16 30% 37% 15 33% 34% 10 20% 10% 4 5 9% 0% - Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 ▪ Qrill category: revenues up 42% compared to Q3-22
Slide 15: Brands segment
Brands segment Revenue Adj. EBITDA and margin USD million USD million 18% 16,0 17% 16% 14,0 34 15% 14% 31 12,0 30 30 13% 12% 27 11% 10,0 10% 9% 7% 8,0 8% 7% 6% 5% 6,0 5% 2% 4,0 4% 2,2 3% 1,3 1% 2% 0% 0,2 0,8 2,0 1% 0% 0,0 -1% -2% -0,0 -2,0 -3% -4% -4,0 -5% -6% -7% -6,0 -8% -9% -8,0 Q3 2022 Q4 2022 Q
Slide 16: Profit and loss in Q3 2023 and full year 2022
Profit and loss in Q3 2023 and full year 2022 USD million Q3 2023 Q3 2022 2022 Net sales (Unaudited) (Unaudited) (Audited) ▪ Revenue in the quarter was USD 94.6m, up from 67.9m in Q3-22 driven by sales growth especially in the Ingredient segments. Brands segment is up driven by Lang. Reduced Kori kr
Slide 17: Balance sheet at end of Q3 2023 and end of 2022
Balance sheet at end of Q3 2023 and end of 2022 USD million Q3 2023 Q3 2022 2022 (Unaudited) (Unaudited) (Audited) Property, plant and equipment ▪ Depreciation of USD 9.1m in the quarter. Additions to PPE mainly include investments into Understory (Protein), development activities, shipyard and ASSE
Slide 18: Cash flow in Q3 2023 and full year 2022
Cash flow in Q3 2023 and full year 2022 USD million Q3 2023 Q3 2022 2022 Cash flow from operations (Unaudited) (Unaudited) (Audited) ▪ Higher cash flow from operations in Q3-23 compared to Q3-22 driven by net change in working capital. Lower net profit in the period due to higher depreciations and f
Slide 19: Outlook fourth quarter 2023
Outlook fourth quarter 2023 Operations Qrill Aqua Superba Brands ▪ Harvesting YTD is on ▪ Expect revenues for the ▪ Expect revenues for the ▪ Expect revenues for the track to deliver on a fourth quarter to be on fourth quarter to be fourth quarter to be normalized harvesting par with the same above
Slide 20: Appendix
@) AKER BIOMARINE APPENDIX
Slide 21: Revenue per product
Revenue per product Excluding eliminations between Ingredients and Brands 3,5 1,3 3,2 29,6 31,1 2,7 3,0 29,9 27,3 33,5 40,1 39,9 32,9 27,5 20,6 16,9 18,3 20,7 20,9 13,8 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Krill oil Qrill Aqua Brands Other Qrill category * * Other includes Qrill Pet, Asta and QHP
Slide 22: Aker BioMarine has hedged most of fuel price exposure through 2024
Aker BioMarine has hedged most 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 23: Offshore cost impacted by regional fuel prices spread
Offshore cost impacted by regional fuel prices spread Fuel price spread development Montevideo vs Gasoil 0.1% FOB Rotterdam Barges (USD/Mt) ▪ The fuel price was hedged by using call options for Gasoil 1 800 0.1% FOB Rotterdam Barges, but fuel is bought from Montevideo 1 600 ▪ Spread Rotterdam vs Mon
Slide 24: Preliminary overview of new business segments
Preliminary overview of new business segments 24
Slide 25: New segment structure to be implemented by Q1 2024
New segment structure to be implemented by Q1 2024 FINANCIAL REPORTNG SEGMENTS RATIONALE FOR CHANGE Feed Human Consumer Emerging Corporate Ingredients Health Health Businesses Ingredients Products 1. Increased Shareholder Transparency Qrill and Superba / Nutra NPD Lang Epion Intra-BU Pharma Brands e
Slide 26: Feed Ingredients
Feed Ingredients The leading krill harvester and producer of krill meal Estimated Revenue ▪ Growing aquaculture feed market faced with marine raw material scarcity External and intracompany sales, USDm ▪ Strong documentation of product benefits and growing Nutrameal (to HHI) Qrill (Aqua, Pet, Asta O
Slide 27: Human Health Ingredients
Human Health Ingredients ▪ Manufactures and sells premium krill oil to the B2B Estimated Revenue supplement segment under the brand Superba External and intracompany sales, USDm ▪ Products backed by IP protection and strong science QHP Superba krill oil 109 ▪ Strong position in attractive Omega-3 ma
Slide 28: Consumer Health Products
Consumer Health Products Lang Pharma Nutrition – our private label offering in the US Estimated Revenue ▪ Operates in the attractive US supplement market External and intracompany sales, USDm ▪ >20 year relationships with major tier-1 Mass retailers ▪ Rapid product innovation and experienced leaders
Slide 29: 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 30: Aker BioMarine
ey AKER BIOMARINE