Proximar Seafood As · OSL:PROXI
Proximar Seafood As — Investor Presentation (December 2023)
35 slides from Proximar Seafood As's investor presentation, Dec 7, 2023
Slide 1: Proximar Seafood Company presentation
Proximar Seafood Company presentation December 2023 1 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: Proximar – Executive Summary
Proximar – Executive Summary • Proximar’s land-based salmon facility in Japan in operation since Q4 2022 Capacity of 5,300 tonnes (HOG) 9 batches currently in production (more than 1 million individuals) Low mortality and encouraging biomass development Biomass as of 30.11.23 of ~29 tonnes,
Slide 4: Significant discount to invested capital and replacement cost
Significant discount to invested capital and replacement cost Mkt. cap at a significant discount to invested equity.. ..and EV with significant discount to invested capital2) NOKm NOKm - 60% 530 +20 % 1 560 1 245 215 Invested equity Current market cap1) Enterprise value Invested capital Estimated re
Slide 5: Remarkable margins in a market where the cost of transportation and import is high
Remarkable margins in a market where the cost of transportation and import is high… Significant advantage with local production.. .. due to high additional costs for non-local farmers NOK / kg (HOG), 12 month rolling, EBITDA-cost NOK / kg (HOG), 12 month rolling, EBITDA-cost 180 165 160 140 120 -43
Slide 6: Profitable and robust business model for Proximar
…which translates into a profitable and robust business model for Proximar Illustration of earnings potential based on current price levels, updated production cost estimates and assuming full production capacity: Net sales price1) Cost2)Significant advantage with local production.. EBITDA Annual pr
Slide 7: Construction completed and production ongoing
Construction completed and production ongoing Construction initiated First harvest Today (3Q 2024) 2020 2021 2022 2023 2024 2025 Construction period (~28 months) Engineering completed Site preparations Hatchery construction Grow-out construction Production First egg insertion Eggs –> smolt (October
Slide 8: Agenda
Agenda PROXImity to MARket I Land-based salmon farming in Japan with significant cost advantage Appendix 8 Confidential
Slide 9: Why invest in Proximar
Why invest in Proximar Market factors Company specific factors Food security –local production supplying the The AquaMaof RAS technology in the R&D facility has Japanese market with fresh Atlantic salmon harvested Local Demonstrated proven its functionality in land-based Atlantic salmon the same day
Slide 10: The Oyama #1 facility
The Oyama #1 facility Grow-out building Hatchery/Nursery building 10 Confidential
Slide 11: Interior illustration of the Oyama #1 facility
Interior illustration of the Oyama #1 facility Grow-out building Hatchery/Nursery building 11 Confidential
Slide 12: Proximar - production on track (I/II)
Proximar - production on track (I/II) Hatchery and nursery facility For a more comprehensive production report, visit proximarseafood.com/investor/reports-and-presentations 12 Confidential
Slide 13: Proximar - production on track (II/II)
Proximar - production on track (II/II) Nursery department – production tanks 13 Confidential
Slide 14: First fish transfer to grow-out in December
First fish transfer to grow-out in December Hand-over completed in September, ownership transferred to Proximar Currently ongoing installation of production equipment by AquaMaof Very attractive CAPEX level, totalling ~NOK 1,240m, equivalent to ~NOK 235, including land CAPEX largely secured before c
Slide 15: Production update: Encouraging growth through all batches
Production update: Encouraging growth through all batches, stable conditions in all departments Growth in line with Growth curves for Proximar’s first batches Proximar’s biomass development production plan Compared to Skretting growth model, figures in grams In metric tonnes, live weight System show
Slide 16: Continuing to successfully build the team
Continuing to successfully build the team - well on track for 2024 and first harvest Continued focus on the transition from construction to production and constantly recruiting new members to our team Production staffing ahead of expectations • Preparations for the first transfer of batches from nur
Slide 17: Proximar has assembled a top-tier operational and technical team
Proximar has assembled a top-tier operational and technical team Operations and production Technical COO – Dharma Rajeswaran CTO – Lars Stigaard • More than 30 years of experience from farming with Atlantic salmon • Extensive experience from RAS, including • Has worked with recirculating aquaculture
Slide 18: Atlantic salmon market price in Japan mainly linked to export price from Norway
Atlantic salmon market price in Japan mainly linked to export price from Norway and cost of transport Relevant prices in Japan given transportation advantage supports Historical comparison between calculated relevant price and attractive price expectations market price in Japan NOK / kg (HOG) NOK /
Slide 19: Proximar's product well positioned for the Japanese market
Proximar’s product well positioned for the Japanese market Japan consumer preferences Survey by NSC1) reveals favourable Japanese consumer preferences • The Japanese are known as quality-oriented seafood consumers 69% of the respondents have • Market studies show that more than half of the populatio
Slide 20: Operating cost break-down for stage I
Operating cost break-down for stage I An attractive cost base supports the strong business model NOK / kg (HOG) 59 4 EBITDA cost 6 Production costs excluding capital costs (depreciation) Feed is the largest cost 4 component - indicative 43 3 feed cost of NOK ~32 / kg1 7 G&A Overhead costs in Proxima
Slide 21: Robust business model and attractive market fundamentals
Robust business model and attractive market fundamentals Attractive market prices, driven by higher import costs … translating to robustness in our business model also – Proximar well positioned for attractive margins… in terms of volumes NOK / kg (HOG) at steady state production EBITDA cost (NOK /
Slide 22: Ongoing sales and marketing preparations with Marubeni
Ongoing sales and marketing preparations with Marubeni • Preparations for sales and marketing together with our long-term sales and distribution partner, Close and active Marubeni Corporation collaboration between Proximar and Marubeni on • Strong interest from potential customers in Japan, but also
Slide 23: Targeting a volume of ~26,000 tonnes in stages
Targeting a volume of ~26,000 tonnes in stages, with further expansion potential Proximar has a staged business plan for considerable expansion of capacity Proximar’s harvest volume plan by stage ~5,300 tonnes (HOG) start facility 1,000 tonnes (HOG) • Proximar’s first facility in Japan next to Mount
Slide 24: Near term outlook for Proximar
Near term outlook for Proximar Continue building biomass with regular inserts and recruiting more production staff and focusing on transitioning from construction to production The long-term outlook of the Japanese market for Atlantic salmon remains attractive, with high prices achieved A first move
Slide 25: Summary
Summary Market factors Company specific factors Food security –local production supplying the The AquaMaof RAS technology in the R&D facility has Japanese market with fresh Atlantic salmon harvested Local Demonstrated proven its functionality in land-based Atlantic salmon the same day close to the m
Slide 26: Agenda
Agenda PROXImity to MARket Land-based salmon farming in Japan with significant cost advantage II Appendix 26 Confidential
Slide 27: Land-based salmon farming in Japan with significant cost advantage
Land-based salmon farming in Japan with significant cost advantage Norwegian company operating a land-based RAS facility for production of Atlantic salmon in Japan, with backing from Central location Major cities in Japan industrial investors close to the major Proximar’s location cities in Japan Pr
Slide 28: A total of NOK 1560 million has been invested in Proximar
A total of NOK 1560 million has been invested in Proximar Proximar’s current capital structure NOKm Guaranteed credit facility: 1560 • Lender: JA Mitsui Leasing • Original amount and currency: JPY 750 million Guaranteed credit facility; 55 • Maturity: March 2024 Shareholder loan; 104 • Terms: 7.65 %
Slide 29: AquaMaof in brief – the technology supplier
AquaMaof in brief – the technology supplier Pioneer within Atlantic salmon RAS technology for grow-out AquaMaof AquaMaof’s Atlantic salmon RAS facility in Poland Operating for nearly 35 years, Israeli AquaMaof is a veteran in advanced technology solutions for aquaculture Roughly 15 years ago, th
Slide 30: Demonstrated technology verified by years of de-risking at multiple sites
Demonstrated technology verified by years of de- risking at multiple sites Low water exchange Achieved by using conventional technology of denitrification, lowering production costs and enabling locating proximity to market Large water buffer Large water buffer - total water in the facility more tha
Slide 31: AquaMaof technical solution in brief
AquaMaof technical solution in brief Superior performance secured with AquaMaof’s technology Technology overview Strict bio-security control and Water treatment protocols 100% of the water goes through the Over-pressurized building filter treatment in every cycle, no Quarantine and disinfectio
Slide 32: Proximar's business model puts sustainability at centre
Proximar’s business model puts sustainability at centre Proximar has a sustainable business model… …verified by leading certifiers Significantly reduced carbon footprint due to elimination of long-distance air freight. Proximar has chosen a production technology with low consumption of water and ene
Slide 33: Blue-sustainability loan with syndicate of three large Japanese banks
“Blue-sustainability loan” with syndicate of three large Japanese banks Proximar has received debt financing of NOK ~650m Bank syndicate • Proximar got Japan’s first “blue-sustainability loan” from a syndicate consisting of Mizuho Bank is a leading global three large Japanese banks, for a corporate
Slide 34: A solid network of partners and investors established
A solid network of partners and investors established to enable successful execution of all stages of the project Established network of partners and stakeholders Planning & permits Construction Operations & aquaculture Marketing & sales City of Oyama, Shizuoka Proximar has established a network of
Slide 35: Confidential
35 Confidential
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