Nordic Aqua Partners As · OSL:NOAP
Nordic Aqua Partners As — H2 2021 Earnings Presentation
34 slides from Nordic Aqua Partners As's earnings presentation, Mar 21, 2022
Slide 1: H2 2021 Presentation 21.03.2022
H2 2021 Presentation 21.03.2022
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 and Nordic Aqua Partners in brief Project Review Market Assumptions and KPI’s Financials Outlook & Summary Nordic Aqua Partners 3
Slide 4: Highlights
Highlights • Project on time and on budget – Hatchery completed • Inlay of first eggs in hatchery completed in Q1 2022 • Installation of AKVA Group RAS technology started in December 2021 and is progressing as planned • Strong salmon price development to the Chinese market • Capex of 94 MDKK in peri
Slide 5: Nordic Aqua Partners – first producer of fresh salmon in China
Nordic Aqua Partners – first producer of fresh salmon in China Fully funded to reach 4,000 tonnes, equity in place for 1 8,000 tonnes Existing plan for 20,000 tonnes and an ambition to reach 2 50,000 tonnes Uniquely located near Shanghai, with access to +100 3 million customers within 5 hours World
Slide 6: Agenda
Agenda Highlights and Nordic Aqua Partners in brief Project Review Market Assumptions and KPI´s Financials Outlook & Summary Nordic Aqua Partners 6
Slide 7: Project status
Project status • Project on time and on budget Hatchery, admin and RAS 1,2,3 • Construction activity in full motion – carried under lease agreement • Completed hatchery and first inlay of eggs • AKVA Group started installation of RAS technology during December 2021, all process equipment has arrived
Slide 8: Good progress at the construction site
Good progress at the construction site Construction site early December 2021 Construction site early March 2022 Stage 1: 38k 𝑚2 Stage 2: 19k 𝑚2 Nordic Aqua Partners 8
Slide 9: First eggs have arrived at Gaotang
First eggs have arrived at Gaotang • Successfully completed inlay of 350,000 eggs in March 2022 • First of four inlays scheduled for 2022 • Will be moved to start feeding tanks in Q2 2022 • Eggs produced by Benchmark Genetics Iceland • Imported in accordance with the license issued by local authorit
Slide 10: Installing RAS technology and building organization
Installing RAS technology and building organization • Senior RAS team in place, track-record of land-based farming • Recruitment and subsequent training of local farming operators ongoing RAS Team Hatchery Senior RAS management Ragnar Joensen Ola Frøvik Bergur Magnussen Johan Toftegaard COO Farm Man
Slide 11: 4,000 tonnes RAS facility under construction
4,000 tonnes RAS facility under construction • Delivered by leading technology provider AKVA Group • Internal RAS team with extensive experience • Successful operation of similar systems • High certainty on capex after having completed several similar facilities • Will run RAS system with low saline
Slide 12: Timeline of Gaotang buildout
Timeline of Gaotang buildout TIMELINE IN GAOTANG BUILDOUT 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Stage 1 Q1 First eggs in hatchery 4,000 tonnes Q1 First harvest and steady state 4,000 tonnes harvest Q2 Eggs for Stage 2 Stage 1+2 8,000 tonnes Q2 First Harvest Stage 2 Commences latest after
Slide 13: Agenda
Agenda Highlights and Nordic Aqua Partners in brief Project Review Market Assumptions and KPI´s Financials Outlook & Summary Nordic Aqua Partners 13
Slide 14: Sharp recovery in demand for Norwegian salmon during 2021
Sharp recovery in demand for Norwegian salmon during 2021 Norwegian export of salmon to China (k tonnes HOG) 3,5 30,0 3,0 25,0 2,5 • Market for Atlantic salmon is expected to exceed pre- 20,0 pandemic levels in 2022, and expected to grow to > 2,0 250,000 tons by 2025 15,0 1,5 • On-line and home deli
Slide 15: Salmon prices – to the Chinese market
Salmon prices – to the Chinese market Export prices 2021 from Norway to China, NOK/kg HOG 180 • Market prices for fresh salmon is expected to remain high also after current pandemic restrictions have been eased 160 140 134 • We do therefore expect to see attractive margins for our locally farmed sal
Slide 16: Agenda
Agenda Highlights and Nordic Aqua Partners in brief Project Review Market Assumptions and KPI’s Financials Outlook & Summary Nordic Aqua Partners 16
Slide 17: Budget remains unchanged since IPO
Budget remains unchanged since IPO Lease Akva Group RAS technology Production cost Budget includes headroom for Terms fixed for Stage 1 Stage 1: inflation and Stage 2 (8,000 t) Turn-key contract at fixed price Next stages: Development and adjustments expected to offset current inflation impact Nordi
Slide 18: Project Milestones
Project Milestones Key milestones and KPI’s Stage 1 Stage 2 Stage 3**** Total RAS Capex 500 MNOK (370 MDKK) 500 MNOK (370 MDKK) 1,500 MNOK (1,100 MDKK) 2,500 MNOK (1,840 MDKK) Equity requirement 600 MNOK (448 MDKK) TBD Secured bank financing** 250+50 MNOK (186+36 MDKK) Annual volume tonnes (HOG) 4,0
Slide 19: Assumed production capacity
Assumed production capacity Stage 2 production volume for different kg (lwe) / m3 14000 Zone actually reached* 12000 NOAP 150 10000 NOAP 127 Phase 2 volume 8000 6000 Reducing EBIT cost/kg by NOK5 4000 2000 0 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 *Based on personal
Slide 20: Agenda
Agenda Highlights and Nordic Aqua Partners in brief Project Review Market Assumptions and KPI´s Financials Outlook & Summary Nordic Aqua Partners 20
Slide 21: Project Financials
Project Financials Capex plan Gaotang Island stage 1 / Total 370 MDKK 89 • Capex of 94 MDKK in H2 2021 • Mainly on smolt facility already on site, and 64 prepayments of major components for grow out facility 47 44 • Remaining capex of 258 MDKK 30 32 28 • Next large payment will be in Q2 2022 when th
Slide 22: Profit & Loss
Profit & Loss Summary of result (figures in DKK 1000) H2 2021 H2 2020 FY2021 FY2020 Total operating income 620 0 620 0 • Financial performance according to plan and Personnel expenses -4.976 -3.070 -8.601 -4.111 budget Other external expenses -5.732 -9.367 -9.606 -14.876 Depreciations -138 -2 -166 -
Slide 23: Cash flow
Cash flow (figures in DKK 1000) H2 2021 H2 2020 FY2021 FY2020 Cash flow from operations Operating profit/loss -10.225 -12.439 -17.752 -18.990 Adjustments for: Depreciation 138 2 166 3 Changes in working capital: Change in other current receivables -3.643 -77 -4.401 -462 • Cash flow according to plan
Slide 24: Financial Position
Financial Position (figures in DKK 1000) 31.12.21 31.12.20 ASSETS Property, plant & equipment 112.431 5.412 Deposits 10.296 9.284 Total non-current assets 122.727 14.718 Other current receivables 4.656 628 Receivables 1.234 0 • Total assets of 406 MDKK Cash and cash equivalents 277.345 399.588 Total
Slide 25: Agenda
Agenda Highlights and Nordic Aqua Partners in brief Project Review Market Assumptions and KPI´s Financials Outlook & Summary Nordic Aqua Partners 25
Slide 26: Summary and Outlook
Summary and Outlook • Project on time and on budget • Entered production phase in March 2022 with first inlay of eggs • Recruitment and training of local farming operators ongoing • Strong development of the Chinese market for Atlantic Salmon • Initiated a project to investigate all aspects of a pos
Slide 27: Q&A
Q&A Nordic Aqua Partners 27
Slide 28: Appendix
Appendix Nordic Aqua Partners 28
Slide 29: Management team and Board of Directors
Management team and Board of Directors with extensive experience from land-based fish farming and China Legal management structure Board of Directors Ole Juul Jørgensen Hjalti Hvitklett Ragnar Joensen Knut Nesse Ove Nodland CEO CFO Chairman Board Member Board Member (NOAP) (NOAP) (NOAP) (NOAP) (NOAP
Slide 30: Attractive lease with local government
Attractive lease with local government Stage M2 Monthly lease Lease/kg Stage 1 / A 38,000 21.3 DKK/m2 2.8 DKK Stage 2 / B 19,000 21.3 DKK/m2 1.4 DKK Total Stage 1 + 2 57,000 21,4 DKK/m2 2.1 DKK Nordic Aqua Partners 30
Slide 31: Upscaling to 20,000 harvest by 2027
Upscaling to 20,000 harvest by 2027 BUILDOUT STAGE 1-4 STAGE 1 Hatchery, Administration, Utilities and Grow-out facility for 4,000 tons STAGE 2 Grow-out facility for +4,000 tons [total 8,000 tons] STAGE 3 Grow-out for +12,000 tons [20,000 tons] STAGE 4 – Option Option for expansion with +30,000 tons
Slide 32: Leading RAS Technology
Leading RAS Technology 4,000 tonnes RAS facility under construction Nordic Aqua Partners 32
Slide 33: Nordic Aqua Partners
¢ Nordic Aqua Partners reater Beijing area ~92,000,000 Greater Shanghai area ~100,000,000 Greater Hong Kong area ~50,000,000 REPLICATION Being and Hong Kong, 20.000 tonnes Hos Tonnes EXPANSION Gaotang project, 30.000 tonnes STAGE 2 Gaotang project 8.000 tonnes 2022 2029 «ne 2025 «= 2028 = 2027 . . .
Slide 34: www.nordicaquapartners.com
www.nordicaquapartners.com Nordic Aqua Partners 34