Atlantic Sapphire Asa · OSL:ASA
Atlantic Sapphire Asa — Q4 2023 Earnings Presentation
29 slides from Atlantic Sapphire Asa's earnings presentation, Feb 29, 2024
Slide 1: Company Update
Company Update February 29, 2024
Slide 2: Important Information and Disclaimer (1/2)
IMPORTANT INFORMATION AND DISCLAIMER (1/2) IMPORTANT INFORMATION THIS DOCUMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, ITS TERRITORIES, DEPENDENCIES OR POSSESSIONS, INCLUDING ANY STATE OF THE UNITE
Slide 3: Important Information and Disclaimer (2/2)
IMPORTANT INFORMATION AND DISCLAIMER (2/2) This Company Presentation is current as of 29 February 2024. Neither the delivery of this Company Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been n
Slide 4: Summary of Key Risk Factors (1/2)
SUMMARY OF KEY RISK FACTORS (1/2) SUMMARY OF RISK FACTORS Investing in the Shares involves inherent risks. Investors should consider all of the information set forth in this Presentation, and in particular, the risk factors set out below. An investment in the Shares is suitable only for investors wh
Slide 5: Summary of Key Risk Factors (2/2)
SUMMARY OF KEY RISK FACTORS (2/2) Risks relating to laws and regulations • The Group's business and operations is subject to extensive laws, regulations and permit requirements and the Group's failure to comply with such could negatively affect its business. Financial risks • The Group will require
Slide 6: Operational Update, Financial Update, Risk Factors
Operational Update Financial Update Risk Factors 6|
Slide 7: Stable Performance On The Back Of Infrastructure Improvements
Stable Performance On The Back Of Infrastructure Improvements Strong biomass Feeding and feed Farming temperatures Share of high-quality growth across all conversion rates at stable around 14°C salmon steadily recent batches solid levels increasing • The batches that have been • Recent batches of fi
Slide 8: Mix Of Batches Quickly Improving
Mix Of Batches Quickly Improving Comments Share of biomass exposed to elevated temperatures decreasing ▪ Parts of the pre-Q3 2023 batches went into early Standing biomass development in %1 maturation due to the temporary challenges with the 100% temperature 80% ▪ The farming conditions have signific
Slide 9: Stable Temperature and Growth Conditions Have Improved Performance
Stable Temperature and Growth Conditions Have Improved Performance Monthly biomass gain development (Jul’23-Jan’24)1 % of net biomass to standing biomass (Jul’23-Jan’24) Biomass gain, Pre-Q3 batches % of net biomass gain to avg. Pre-Q3 batches net (RLW tons) Post-Q3 batches monthly standing biomass2
Slide 10: Supportive Feeding Rates And Conversion Ratios
Supportive Feeding Rates And Conversion Ratios Average feed conversion ratios (FCRs)1 Monthly feeding bFCR Tons of feed 2.4 eFCR 800 1.7 600 1.0 1.1 400 200 Pre-Q3 batches Post-Q3 batches Weight dist., ~1.4 ~2.1 ~0.5 ~1.1 0 kg2 Sep 23 Oct 23 Nov 23 Dec 23 Jan 24 ▪ Significant improvement in feed con
Slide 11: System Temperatures Have Stabilized After Chiller Improvements
System Temperatures Have Stabilized After Chiller Improvements Comments Monthly average temperatures in Grow-Out System until Feb’241 ▪ New rental chiller capacity brought online after summer Positive effects Temperature (Co) from new chiller of 2023, immediately resolving prior issues with capacity
Slide 12: Operational Update, Financial Update, Risk Factors
Operational Update Financial Update Risk Factors 12 |
Slide 13: Year End 2023 Cash Balance in Line With Estimate
Year End 2023 Cash Balance in Line With Estimate Cash balance – Sep’23 estimate vs actual Comments ▪ Cash balance for year end 2023 mostly in line with the guidance given Comparable in connection with the September 2023 Private Placement ▪ As announced, the Company experienced higher maturation leve
Slide 14: Cost Base Will be Scaled With Ramp-Up of Production Volume
Cost Base Will be Scaled With Ramp-Up of Production Volume “Fixed cost” scaling Comments Estimated “fixed cost” per year Estimated “fixed cost” per kg for different ▪ Atlantic Sapphire’s current cost base is (USDm)1 harvest levels scaled to support a higher volume 130 8.1 7.3 ▪ Current cost of ~USD
Slide 15: Current Fundraising Estimated To Be Sufficient To Prove Phase 1 Performance
Current Fundraising Estimated To Be Sufficient To Prove Phase 1 Performance Sources and Uses Amended debt facility overview Sources & Uses overview USDm Facility Status USDm Expiry Contemplated equity raise 35 Phase 1 Term Drawn 42 Oct 26 Available RCF1 17 Loan Cash position YE 2023 38 Phase 2 Undra
Slide 16: Atlantic Sapphire's Advantageous Location Unlocks Premium Pricing
Atlantic Sapphire’s Advantageous Location Unlocks Premium Pricing Significant upside on price achievement to Highly developed footprint near Atlantic Commentary follow satisfactory operational performance Sapphire US price achievement: Premium fish (superior) and ▪ Under stable conditions, ~80-90% o
Slide 17: Phase 1 Facility in Operation and Phase 2 Under Construction
Phase 1 Facility in Operation and Phase 2 Under Construction Site overview USDm ~650 Phase 1 Design capacity: 9,500t Phase 2 Phase 1 Permitted Constructed Operational Proven ~330 ✓ ✓ ✓ (✓) 130 Market Net asset Invested capitalization2 value equity Phase 2 (YE’23)1 Design capacity: 15,000t Permitted
Slide 18: Powerful Equity Story With Strong Growth Potential
Powerful Equity Story With Strong Growth Potential ▪ Atlantic Sapphire is Large-scale site Phase 2 under Unique economic and Backed by highly capturing a US already operational construction to more environmental renowned financial megatrend and approaching than double capacity proposition sponsors a
Slide 19: Operational Update, Financial Update, Risk Factors
Operational Update Financial Update Risk Factors 19 |
Slide 20: Key Risk Factors (1/9)
KEY RISK FACTORS (1/9) 1 RISK FACTORS Investing in the Shares involves inherent risks. Investors should consider all of the information set forth in this Presentation, and in particular, the risk factors set out below. An investment in the Shares is suitable only for investors who understand the ris
Slide 21: Key Risk Factors (2/9)
KEY RISK FACTORS (2/9) 1.1.2 Land-based salmon farming is a new, technology intensive method of salmon farming. If the Group is unable to effectively compete with existing methodologies, the Group's business and financial prospects would be adversely impacted. The Group is applying recirculating aqu
Slide 22: Key Risk Factors (3/9)
KEY RISK FACTORS (3/9) In addition, the Group depends on consumers' willingness to pay a premium price for healthy, sustainably farmed salmon, such as the Group's salmon farmed in its Bluehouses. There can be no assurance that consumers will be willing to pay premium prices or that demand for farm-r
Slide 23: Key Risk Factors (4/9)
KEY RISK FACTORS (4/9) 1.1.8 The Group's intellectual property rights are valuable, and any inability to protect them could reduce the value of its business and products The Group's success depends in large part on its proprietary technology and patents, trade secrets, trademarks and other intellect
Slide 24: Key Risk Factors (5/9)
KEY RISK FACTORS (5/9) In addition, job candidates and existing employees often consider the value of the equity-linked awards they receive in connection with their employment. If the value of the Company's Shares declines, it may adversely affect the Group's ability to hire or retain highly skilled
Slide 25: Key Risk Factors (6/9)
KEY RISK FACTORS (6/9) Construction work on Phase 2 at the Homestead Bluehouse is inherently subject to risk of delays compared to construction progress estimates set by the Company and Wharton-Smith from time to time (whether or not agreed as fixed construction deadlines and project milestones), in
Slide 26: Key Risk Factors (7/9)
KEY RISK FACTORS (7/9) 1.2 Risks relating to laws and regulations 1.2.1 The Group's business and operations is subject to extensive laws, regulations and permit requirements and the Group's failure to comply with such could negatively affect its business The Group's business and operations are subje
Slide 27: Key Risk Factors (8/9)
KEY RISK FACTORS (8/9) The lender under the Credit Facility has also required that the maximum amount of capital expenditures related to Phase 2 shall not exceed USD 300 million, and no funds for capital expenditure in excess of this have been committed. There can be no assurance that additional fin
Slide 28: Key Risk Factors (9/9)
KEY RISK FACTORS (9/9) 1.4 Risks relating to the Shares 1.4.1 Future issuances of Shares or other securities may dilute the holdings of shareholders and could materially affect the price of the Share The Company may, in the future, decide to offer additional Shares or other securities to finance new
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