Salmones Camanchaca SA · BCS:SALMOCAM
Salmones Camanchaca SA — Camanchaca — Q2 2016 Earnings Presentation
22 slides from Salmones Camanchaca SA's earnings presentation, Sep 1, 2016
Slide 1: September 1, 2016
September 1, 2016
Slide 2: Results January – June 2016
Results January – June 2016 (US$ mill.) 2015 2016 EBITDA (before Fair Value) 17.2 10.4 6.3 6.1 4.3 0.5 0.3 -2.1 Fishing Salmon Other Seafood TOTAL Profit/Loss 4.4 3.1 1.9 2.0 1.4 -0.7 -0.5 -2.6 Fishing Salmon Other Seafood TOTAL 2
Slide 3: Development: Last 4 mobile quarters
Development: Last 4 mobile quarters EBITDA Revenues X% EBITDA/Revenues 496 489 483 485 470 462 453 13.3% 446 12.4% 12.0% 439 11.0% 66.1 10.2% 60.0 58.7 10.0% 53.0 45.1 47.1 4.9% 2.3% 21.6 1.8% 10.1 8.7 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 3
Slide 4: Development: Last 4 mobile quarters by division
Development: Last 4 mobile quarters 163 184 179 161 169 157 146 147 141 FISHING 33.1 29.0 27.3 20.4 22.6 18.8 18.9 15.7 15.6 295 288 279 275 299 260 263 263 269 SALMON 36.1 38.2 EBITDA 31.5 27.5 25.6 20.1 Revenues 6.7 -7.5 -5.8 OTHER 32 33 33 35 32 30 31 31 30 2.2 SEAFOOD 1.6 0.8 -0.8 -0.3 -0.8 -1.3
Slide 5: Oceanic Niño Index (ONI)
3-Month Nino Region 3.4 Average Oceanic Nifio Index (ONI) Oceanic Nifio Index (ONI) |nttp://orerw cpc.ncep.nose gov/products/analyss_monitoring/ensostuff/ensoye as.shtm! } Red= Strong Bite Shar Black = Mi LNs jerate (either) 97-58 23-74 88-89 -2.0 a Pee og 6 2 oS vee FP Pos PPP POS PP LPP PPE PPI EE
Slide 6: El Niño phenomenon effects
El Niño phenomenon effects Estimated Effect Division Effect US$ mill. Northern Fishing Anchovy Lower catches (12 months) at higher prices -12.1 Plant Extraordinary Stoppage Costs -5.9 Southern Fishing Sardine (third parties) Lower catches (12 months) at higher prices -2.9 Jack Mackerel Higher catch
Slide 7: Pelagic Fishing: Northern Fishing Division
Pelagic Fishing: Northern Fishing Division Anchovy: Lower catches due to El Niño phenomenon. Thousands of tons 46-61 87 75-90 27 22 20 18 18 10 1 2015 2016 2015 2016 2015 2016 E 2015 2016 E 2015 2016 E Q1 Q2 Q3 Q4 Year Historical Q4 catches (average = 61 th. tons) 107 105 79 83 78 71 71 54 55 60 42
Slide 8: Pelagic Fishing: Southern Fishing Division
Pelagic Fishing: Southern Fishing Division J. Macke.: Favorable fishing conditions (94% of the annual quota catched in H1 2016). Sardine: Lower catches vs H1 2015 due to fish absence in the 8th region (third parties). Own catches (industrial): more than double in H1 2016. Thousands of tons 115 Jack
Slide 9: Fishmeal Price
Fishmeal Price Prices hit a peak in Q1 2015, and fell after normalization of the Peruvian fishing quotas. Current prices show recovery due to the effects of El Niño: low Peruvian catches. US$ / ton (Camanchaca) Peru’s Fishing Quota (North-Centre Region): May to Jul: Nov to Jan: May to Jul: Nov to Ja
Slide 10: Stocks
Stocks (valued at cost) Increase in canned fish; Reductiopn in salmon; Lower fishmeal and fish oil production June 30, 2016 December 31, 2015 June 30, 2015 Months of VOLUME ThUS$ VOLUME ThUS$ VOLUME ThUS$ Production SALMON Atlantic Salmon (Tons) 3,084 1.4 25,939 7,458 42,198 4,177 26,418 Salmon Tota
Slide 11: Atlantic Salmon Sanitary Conditions
Atlantic Salmon Sanitary Conditions (closed cycle) Mortality 2015 2016 64.3% 43.0% 19.2% 40.0% 8.7% 14.2% 12.9% 10.9% 5.4% 12.0% 7.0% Q1 Q2 Q3 Q4 Year Economic Feed Conversion Rate 2.88 1.58 1.90 1.35 1.30 1.36 1.40 1.35 1.35 1.80 1.20 - Q1 Q2 Q3 Q4 Year Company’s estimations are based on current in
Slide 12: Costs
Costs Q4-15 and Q1-16 affected by SRS and low oxygen conditions in the 10th region. Better conditions in Q2-16 vs Q2-14. Atlantic Salmon - Liveweight ex-cage cost (US$ / kg) 3.81 3.66 3.75 3.35 Others 3.07 2.95 3.02 3.08 2.92 Medicine Labor Smolt OPEX Feed Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3
Slide 13: Atlantic Salmon Price
Atlantic Salmon Price Price upward due to decreasing global supply (-6%): Algae Bloom in Chile and slight Norway decrease. Harvest (Thousands of Tons) Price (US$ / Kg WFE) 2015 2016 5.5 5.8 5.8 4.4 4.8 Δ+25% 4.5 4.4 4.2 Δ+28% Δ+32% 4.1 Δ-12% 43 15.6 31 11.6 11.2 9.1 8.9 4.9 6.7 E E Q1 Q2 Q3 Q4 Year
Slide 14: Atlantic Salmon Price: Long-term trend
Atlantic Salmon Price: Long-term trend Urner Barry Equivalent Trim C 2-3 *- US$/Lb 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 aug-16 jul-04 jul-05 jul-06 jul-07 jul-08 jul-09 jul-10 jul-11 jul-12 jul-13 jul-14 jul-15 jul-16 ene-04 ene-05 ene-06 ene-07 ene-08 ene-09 ene-10 ene-11 ene-12 ene-13 ene-14 ene-15
Slide 15: Hike in price
Hike in price Prices every week: Chilean salmon (UB trim D 3-4 lb) UB price: around US$ 5,5 /lb Source: ABG Sundal Collier (08/25/2016) 15
Slide 16: Camanchaca's Atlantic Salmon RMP
Camanchaca’s Atlantic Salmon RMP Camanchaca vs Market (Salmonex, January 2014 = Base 100) Urner Barry Salmonex Camanchaca 120 100 80 60 40 20 0 Jan-14 Apr-14 Jul-14 Jan-15 Apr-15 Jul-15 Jan-16 Apr-16 Jul-16 Oct-14 Oct-15 June 2016: Camanchaca’s prices again exceed UBarry and Salmonex indexes (+68 an
Slide 17: Development of Atlantic Salmon Margins
Development of Atlantic Salmon Margins Return to positive margins in Q2 2016 10th region sites 11th region sites Leptepu Raw Material Cost and RMP (Raw Material Return) Cahuelmó Base 100 = RMP January 2013 Porcelana Leptepu |-----Ahoní-----| Benjamín Loncochalgua 210 Licha Puelche Tahuenahuec Pilpil
Slide 18: Development of Atlantic Salmon Margins
Development of Atlantic Salmon Margins EBIT (US$/Kg WFE) before Fair Value in the Salmon business 1.0 0.8 0.6 0.4 0.31 0.14 0.2 0.0 -0.2 -0.4 -0.6 -0.8 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 -0.10 -0.38 Atlantic Salmon Business includes other Revenues and Costs due t
Slide 19: Change in Sanitary Regulation
Change in Sanitary Regulation The last modification created the individual (per company and neighborhood) Smolt Release Reduction Program (PRS). It sets a 3% limit for the smolt release growth for the sites with a high biosecurity classification on which apply density limits reaching up to 8 kg
Slide 20: Diesel Price
Diesel Price US$/lt 2015 2016 0.54 -44% 0.54 -31% 0.49 0.50 0.40 0.43 0.40 0.37 0.30 0.35 0.35 Q1 Q2 Q3 Q4 Year H1 2016: At constant volume, fuel savings of US$ 2.2 million. Favorable effects are stabilized Company’s estimations are based on current information, which could change due to deviations
Slide 21: EPI Agreement
EPI Agreement Contract starts on October 11, 2016 2018 fishing season operational continuity; return of the land on April 2019 Relocation of the plant will have efficiency and environmental improvements, mandatory Balance Sheet Assets (June 30) Equipment has an average age above 18 years
Slide 22: Camanchaca
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