Nordic Aqua Partners As · OSL:NOAP
Nordic Aqua Partners As — Q2 2024 Earnings Presentation
29 slides from Nordic Aqua Partners As's earnings presentation, August 2024
Slide 1: Nordic Aqua Partners Q2 2024
Nordic Aqua Partners Q2 2024 August 2024
Slide 2: Disclaimer
DISCLAIMER This presentation contains statements regarding future results, which are subject to risks and uncertainties. Consequently, actual results may differ significantly from the results indicated or implied in these statements. No representation or warranty (expressed or implied) is made as to
Slide 3: Agenda
Agenda Highlights Operations Project Sales and Market Financials Outlook & Summary 3
Slide 4: Highlights
Highlights • Second quarter harvest of 523 tonnes HOG with an average weight of 4.54 kg HOG and superior rate of 99% • Average sales price EUR 8.94 / kg HOG in Q2 • Geosmin issue in July, continuing into Q3 causing lower turnover and significant reduced harvest in H2/24 • Good operational and biolog
Slide 5: Agenda
Agenda Highlights Operations Project Sales and Market Financials Outlook & Summary 5
Slide 6: Biological production
Biological production • Average farming cost of EUR 5.23/kg, HOG, in line with guiding • Q2 biomass production of 1,014 tonnes. Total biomass of 2,432 tonnes by quarter end. During Q2 Nordic Aqua reached steady state production • Adjusted harvest plan: no harvest in Q3 and 400 to 600 tonnes expected
Slide 7: Batches 2-5
Batches 2-5 Summary Batch 2 and 3 performance as expected Fish size (g) Fish size (g) • The growth in Batch 2 was somewhat affected by construction of the RAS units • Accumulated mortality from 150g is 1.4% and 1.2% for Batch 2 and Batch 3, respectively Summary Batch 4 and 5 growth above expectation
Slide 8: Measures taken to ensure premium quality
Measures taken to ensure premium quality • Detection of off-flavour incidents caused by geosmin in July • Root causes identified and corrective initiatives securing premium quality implemented ‒ Protein skimmers in production units ‒ Change in operation protocols for biofilters ‒ Increase ozonation
Slide 9: Agenda
Agenda Highlights Operations Project Sales and Market Financials Outlook & Summary 9
Slide 10: Stage 1 status – Completed
Stage 1 status – Completed Greenery completed and opening ceremony late May 2024 10
Slide 11: Stage 2 status
Stage 2 status • The hatchery’s extra capacity and RAS 11 in the small building is finished and operational • The construction of RAS 12 and 13 has begun • The piling for the large building started in January 2024 • First inlay of eggs in Q3 2024 11
Slide 12: Timeline of Gaotang buildout
Timeline of Gaotang buildout 2021 2022 2023 2024 2025 2026 2027 2028 Q3 Construction start Stage 1 Q1 Production start 4,000 tonnes Q2 First harvest Q3 Construction start Stage 1+2 Q3 Production start 8,000 tonnes Q3 First harvest Stage 1+2+3 Timeline to be decided in 20,000 tonnes Q4 2024 Q2 12
Slide 13: Agenda
Agenda Highlights Operations Project Sales and Market Financials Outlook & Summary 13
Slide 14: Nordic Aqua has started commercial sales
Nordic Aqua has started 3.000 12,00 commercial sales 2.500 10,00 2.000 8,00 EUR 1,000 kg, HOG 1.500 6,00 • First commercial sales was in April 2024, then 1.000 4,00 gradually increased through May and reached full 500 2,00 scale harvest end of June 2024 0 0,00 April May June • Second quarter harvest
Slide 15: Imports of Atlantic salmon to China Q2 and H1 2024
Imports of Atlantic salmon to China Q2 and H1 2024 Import volume per quarter Import volume per half year Fresh or chilled Atlantic salmon (tonnes) Fresh or chilled Atlantic salmon (tonnes) 25.000 50.000 45.000 20.000 40.000 35.000 15.000 30.000 25.000 10.000 20.000 15.000 5.000 10.000 5.000 0 0 2019
Slide 16: Imports of Atlantic salmon to China Q2 and H1 2024
Imports of Atlantic salmon to China Q2 and H1 2024 Q2 – Market share per COO H1 - Market share per COO Fresh or chilled Atlantic salmon (%) Fresh or chilled Atlantic salmon (%) 3% 1% 1% 2% 1% 2% 7% 7% 6% 6% 17% 12% 15% 14% 5% 7% 6% 8% 9% 8% 3% 3% 13% 9% 13% 16% 7% 10% 14% 3% 12% 6% 16% 31% 11% 12% 2
Slide 17: Imports of Atlantic salmon to China Q2 and H1 2024
Imports of Atlantic salmon to China Q2 and H1 2024 Import price per month Fresh or chilled Atlantic salmon (EUR/kg). Volumes in kg 20,00 15,00 10,00 5,00 Jan Mar May July Sep Nov Jan Mar May July Sep Nov Jan Mar May July Sep Nov Jan Mar May July Sep Nov Jan Mar May July Sep Nov Jan Mar May July Sep
Slide 18: Compelling value proposition to local market
Compelling value proposition to local market Freshness Safety The product is significantly fresher than any The Product is free from antibiotics, competitive Atlantic Salmon, 5 days to most medicines, and parasites. products. Sustainability Agility The product holds the highest of quality It is the
Slide 19: Investing in building market recognition for premium position
Investing in building market recognition for premium position • Launch event of Nordic PureAtlantic ‒ Launching event with customers and key stakeholders celebrating the arrival of the first scaled up RAS produced Atlantic salmon in China • Marketing activities towards end-users ‒ Showing how to mar
Slide 20: Agenda
Agenda Highlights Operations Project Sales and Market Financials Outlook & Summary 20
Slide 21: Financial review
Financial review • Q2 sales of EUR 4.7 million – influenced by the delay of Key Figures first harvest and a sharp decline in global salmon prices (figures in EUR 1000) Q2 2024 Q2 2023 YTD YTD 2023 2024 in June Revenue 4,674 0 4,674 0 EBITDA -1,470 -1,142 -319 -2,087 • Farming cost at EUR 5.23/kg. EB
Slide 22: CAPEX and FUNDING
CAPEX and FUNDING • Estimated total CAPEX for Stage 1 ‒ Farming technology stage 1 EUR 53.0 million ‒ Leasehold improvements stage 1 EUR 3.5 million ‒ Processing plant EUR 4.5 million ‒ EUR 53.9 million accrued end of Q2 2024 • Estimated total CAPEX for Stage 2 ‒ Farming technology stage 2 EUR 63 mi
Slide 23: Agenda
Agenda Highlights Operations Project Sales and Market Financials Outlook & Summary 23
Slide 24: Summary and outlook
Summary and outlook • Good operational and biological performance for all batches • Second quarter with harvest of 523 tonnes HOG with an average weight of 4.54 kg HOG • Q2 biomass production of 1,014 tonnes. Total biomass of 2,432 tonnes by quarter-end • Geosmin issue in July, mitigating measures i
Slide 25: Thank you
Investor Contacts Tom Johan Austrheim Thank you CFO, NOAP tel:+47 982 09 873 tom@nordicaquapartners.com Next event: Ragnar Joensen Q3 2024, 14 November CEO, NOAP tel:+298 599112 ragnar@nordicaquapartners.com
Slide 26: Appendix
Appendix 26
Slide 27: Profit & Loss
Profit & Loss (figures in EUR 1000) Q2 2024 Q2 2023 YTD 2024 YTD 2023 Revenue 4,674 0 4,674 0 • Revenue in Q2 2024 amounted to EUR 4.7 Purchase of goods -2,273 -407 -4,581 -603 Change in inventory and biological assets (at cost) 1,373 765 6,049 1,301 million (EUR 0.0 million) Other operating income
Slide 28: Financial Position
Financial Position (figures in EUR 1000) 30.06.2024 30.06.2023 31.12.2023 Assets Assets under construction Property, plant & equipment 28,805 39,223 45,831 865 31,161 21,906 • Total assets of EUR 124 million (EUR 86 Right of Use assets 18,400 0 9,287 Deferred tax assets 1,101 0 0 million), increase
Slide 29: Cash Flow
Cash Flow (figures in EUR 1000) Q2 2024 Q2 2023 YTD 2024 YTD 2023 Cash flow from operating activities • Net cash flow in Q2 2024 EUR 2.3 million Operating profit/loss -2,315 -1,238 -1,964 -2,208 Adjustments 1,598 66 237 597 (EUR 6.2 million) Changes in working capital 548 -3,586 -20 -3,223 Net cash