Arctic Fish Holding As · OSL:AFISH
Arctic Fish Holding As — Q4 2021 Earnings Presentation
36 slides from Arctic Fish Holding As's earnings presentation, Feb 23, 2022
Slide 1: Arctic Fish Q4 Presentation
Arctic Fish Q4 Presentation 23rd February 2022
Slide 2: Disclaimer
Disclaimer Cautionary note regarding forward-looking statements This presentation is the managements summary of the 4th quarter report, it includes forward-looking statements that reflect the Company's current views with respect to future events and financial and operational performance. These forwa
Slide 3: Agenda
1 Highlights for the period 2 Operational performance & Group financials 3 Building blocks 4 Markets 5 Growth projects 6 Outlook and summary
Slide 4: Highlights in Q4 2021
Highlights in Q4 2021 Historically the largest year in terms of sales volume • Harvested 2,938 tonnes in the quarter, bringing the year total to 11,479 tonnes harvested – a 54% increase YoY. • Farming EBIT of 10.1 NOK pr.kg - an improvement of 14.7 NOK pr. kg from Q4 20. • The growth developed posit
Slide 5: Agenda
1 Highlights for the period 2 Operational performance & Group financials 3 Building blocks 4 Markets 5 Growth projects 6 Outlook and summary
Slide 6: Operational performance
Operational performance Operational EBIT (NOK pr. kg) 10,6 9,7 10,1 5,7 • Operational EBIT pr. kg down by 0.5 NOK pr. kg, a 5% decrease from Q3 21 Q1 21 Q2 21 Q3 21 Q4 21 • An increase in associated costs of harvesting affected the production costs. Farming Operational EBIT development YoY (NOK pr.
Slide 7: Operational performance cont.
Operational performance cont. Production costs pr. kg (NOK) • Harvested 2,938 tonnes GW, 50 tonnes less than in Q4 20 51,3 Production costs Harvesting & wellboat costs 49,1 • Production cost pr. kg in Q4 21 up by 2.0 NOK pr. kg from Q3 21. 45,1 46,5 44,2 44,5 42,7 12,8 9,0 • Production costs up most
Slide 8: Q1 expectations due to Dyrafjordur incident
Q1 expectations due to Dyrafjordur incident As previously stated, the compromised fish health and consequent mortalities in Dyrafjordur is thought to have been caused by the following: • The highest mortality is related to cages with the highest average weight. Examination on fish shows mortality re
Slide 9: Profit and loss
Profit and loss • Operating revenues of 166.3 MNOK. Key figures from P/L • Operational EBIT of 27.5 MNOK. • Harvested volume of 2,938 tonnes (YoY 2% decrease). KEY FIGURES Q4 Q4 FY FY • Negative fair value adjustment of 13.9 MNOK. (NOK '000) 2021 2020 2021 2020 • Production tax of 0.8 MNOK. Operatin
Slide 10: Financial position
Financial position Key figures from Balance sheet KEY FIGURES (NOK '000) 31.12.2021 30.9.2021 31.12.2020 Intangible assets 52.119 49.340 34.297 • Investments in Sea Farming equipment. Deferred tax assets 19.479 Property, plant and equipment 657.161 605.124 559.988 • Investments in Smolt Production f
Slide 11: NIBD development and financial covenants
NIBD development and financial covenants NIBD development (MNOK) Alternate performance measures Net interest bearing debt NET INTEREST BEARING DEBT (NOK '000) 31.12.2021 30.9.2021 31.12.2020 Reported long term interest bearing debt 318.152 201.720 245.184 Reported short term interest bearing debt 36
Slide 12: CAPEX
CAPEX Ongoing investments Planned capital expenditure going forward • Expansion of smolt capacity Planned Capital Expenditures (MNOK) 600 • Farming equipment 565 500 • Branding initiatives 400 • Biomass build-up 300 • Increase harvesting capacity • Within the 2022 Capex there are still pending final
Slide 13: Existing Credit facilities from bank
Existing Credit facilities from bank • Existing loan agreement components are as follows: • 300 MNOK revolving facility for Biomass. • 321 MNOK long term loan, 20 MNOK has been repaid reducing the availability under this part of the loan agreement. • 30 MNOK overdraft facility. • Additional facility
Slide 14: Agenda
Agenda 1 Highlights for the period 2 Operational performance & Group financials 3 Building blocks 4 Markets 5 Growth projects 6 Outlook and summary
Slide 15: The building blocks of Arctic Fish
The building blocks of Arctic Fish Excellence in Sea A robust and strong farming and Smolt sustainability profile Production Growing markets and Attractive licenses and strategic marketing production potential vision
Slide 16: Excellence in Sea Farming and Smolt Production
Excellence in Sea farming and Smolt Excellence in Sea Farming and Smolt Production Production Smolt production Sea Farming • Produced 3.4 million smolt at an average • Growth in line with expectations and weight of 152 gr. improved by 3.2% YoY. • At year end the biomass in the facility was • At year
Slide 17: A robust and strong sustainability profile
A robust and strong A robust and strong sustainability profile sustainability profile First of its kind hi-tech smolt facility with 100% green energy ESG focus All Icelandic attributes • All sites ASC certified preserved; low sea temperature and density • Reducing CO2 emissions with: • Prioritizing
Slide 18: Licenses enabling growth and production potential
Attractive licenses and Licenses enabling growth and production potential production potential New 4,000 tonnes (MAB) license in Arnarfjörður had Arctic Fish has pending applications in the final stages already advertised to be issued, a new license in a new for additional 4.8kt MAB in Ísafjarðardjú
Slide 19: Growing markets and strategic marketing vision
Growing markets and strategic marketing Growing markets and strategic marketing vision vision • Since 2019 we have more than tripled our annual sales • 2021 was the highest volumes of harvesting in the history of the company, 54% increase YoY. • The fish delivered continues to be of a high quality.
Slide 20: Agenda
Agenda 1 Highlights for the period 2 Operational performance & Group financials 3 Building blocks 4 Markets 5 Growth projects 6 Outlook and summary
Slide 21: Market outlook
Market outlook • Q4 price achievement increased by 18.5 NOK pr. kg, or Q3 2021 LAST QUARTER 55,1 by 48% YoY • The price achievement increase can mostly be traced back to Covid-19 effects in 2020. Q42021 Q4 2021 56,6 • Price achievement increased by 1.5 NOK pr. kg QoQ • Good timing of harvesting, att
Slide 22: Global harvest volumes – expectations for 2022
Global harvest volumes – expectations for 2022 0% YoY Global supply estimates 1.000 Tonnes 2.893 2.892 • Overall market expectations are indicating growth stagnation for global supply • Due to lower smolt stocking in 2020 result in a global supply growth stagnation expected in 2022 should support hi
Slide 23: Agenda
Agenda 1 Highlights for the period 2 Operational performance & Group financials 3 Building blocks 4 Markets 5 Growth projects 6 Outlook and summary
Slide 24: Ongoing Growth Projects
Ongoing Growth Projects • The hatchery has a proven record of smolt production, with roughly 12 million smolt having been produced at the hatchery since 2017. 1 • With the planned expansion, the smolt Project on track, Increased smolt capacity capacity will be ~1,000 tonnes ~ 5 million smolt at ~200
Slide 25: Smolt expansion plan
Smolt expansion plan Commentary Expected tank volume increase from 6,000 m3 to 13,500m3 • Two-step plan to increase tank volume with 7,500m3 and increase smolt capacity to 5 million smolt. Tank volume, thousand m3 13,52 • It is expected that the expansion will be finished first half of 2023. 3,72 •
Slide 26: Smolt construction progress and layout
Smolt construction progress and layout 26
Slide 27: Targeting ~24kt harvest volume in 2025
Targeting ~24kt harvest volume in 2025 Smolt release forecast Harvest volumes forecast Million smolts In thousand tonnes, HOG +89% +109% 5,1 4,9 24,0 4,2 3,6 15,0 2,9 2,7 13,0 2,7 10,1 11,5 1,8 7,4 0,7 3,3 2017 2018 2019 2020 2021 2022E 2023E 2024E 2025E 2019 2020 2021 2022E 2023E 2024E 2025E
Slide 28: Agenda
Agenda 1 Highlights for the period 2 Operational performance & Group financials 3 Building blocks 4 Markets 5 Growth projects 6 Outlook and summary
Slide 29: Harvesting estimates
Harvesting estimates Harvested quantity in Q4 decreased 2% YoY: 2020 Q4: 2,988 tonnes 2021 Q4: 2,938 tonnes Total harvested quantity increased by 54% YoY: 2020: 7,443 tonnes 2021: 11,479 tonnes 2022E: 10,100 tonnes Harvested quantity pr. quarter (‘000 tonnes) 10.1 11.5 7.4 5,5 4,6 3,8 3,0 2,9 2,9 2,
Slide 30: Appendix: Group financials
Appendix: Group financials pecticFish
Slide 31: Group income statement
Group income statement CONSOLIDATED INCOME STATEMENT Q4 Q4 FY FY (NOK '000) 2021 2020 2021 2020 Operating revenues 166.253 130.509 595.895 375.667 Cost of goods sold 90.732 92.956 299.189 192.800 Salaries 11.526 11.932 54.151 42.025 Depreciation 12.940 11.755 46.501 40.113 Other operating costs 23.5
Slide 32: Statement of the financial position
Statement of the financial position STATEMENT OF FINANCIAL POSITION (NOK '000) 31.12.2021 30.9.2021 31.12.2020 Deferred tax assets 19.479 0 0 Intangible assets 52.119 49.340 34.297 Property, plant and equipment 657.161 605.124 559.988 Right of use assets 4.435 0 0 Non-current financial assets 629 62
Slide 33: Statement of equity
Statement of equity STATEMENT OF EQUITY Equity allocated to parent company 31.12.2021 shareholders Non- Treasury Retained controlling (NOK '000) Share capital shares earnings Total interests Total equity Equity at 01.01.2021 689.476 0 -210.672 478.805 0 478.805 Total comprehensive income 0 0 152.563
Slide 34: Group cash flow statement
Group cash flow statement Statement of cash flow Q4 Q4 FY FY (NOK '000) 2021 2020 2021 2020 Operational EBIT 27.218 -11.706 86.944 6.319 Adjusted for: Depreciation 12.940 11.755 46.501 40.113 Production tax -790 0 -3.843 -312 Change in inventories/biological assets -44.055 -16.925 -71.661 -146.716 C
Slide 35: Shareholders
Shareholders Ownership structure: The largest 20 shareholders as of 31.12.2021* Rank Name # of shares % ownership 1 NORWAY ROYAL SALMON ASA 16.346.824 51,28% 2 BREMESCO HOLDINGS LIMITED 9.104.582 28,56% 3 J.P. Morgan Bank Luxembourg S.A. 3.031.424 9,51% 4 Landsbankinn hf. 519.716 1,63% 5 VERDIPAPIRF
Slide 36: |ecticFish
|ecticFish