Proximar Seafood As · OSL:PROXI
Proximar Seafood As — Q1 2023 Earnings Presentation
32 slides from Proximar Seafood As's earnings presentation, May 12, 2023
Slide 1: Presentation of 1st quarter 2023
Company Presentation Presentation of 1st quarter 2023 12.05.2023 PRIVATE AND 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: Today's speakers
Today’s speakers Joachim Nielsen CEO “Our vision is to be a leading Company Presentation provider of sustainably produced seafood and provide a growing population with proteins.” Pål Grimsrud CFO 3 3
Slide 4: Japan is the perfect location for land-based fish farming
Japan is the perfect location for land-based fish farming → Large and stable market, premium pricing, cost and emission savings, along with economic stability PROXImity to a large, premium pricing MARket saves transportation, which Japan has a stable economic system and export significantly reduce e
Slide 5: Proximar at a glance
Proximar at a glance Norwegian company building a land-based RAS facility Experienced team and owners, Offtake agreement in place, for production of Atlantic salmon in Japan and strong partners in Japan attractive margins expected Figures in NOK/kg (HOG) • Stage I planned production of 5,300 tonnes
Slide 6: The significant cost advantage illustrates the robustness in our business model
The significant cost advantage illustrates the robustness in our business model Expected annual harvest with varying densities Expected non-tax (EBIT) cost at varying harvest levels Tonnes (HOG) at steady state production NOK / kg (HOG) at steady state production 6 660 Proximar net price1:121 6 000
Slide 7: Proximar has entered production phase, with completion of facility expected in Q3
Proximar has entered production phase, with completion of facility expected in Q3 Construction initiated First harvest Today (3Q 2024) 2020 2021 2022 2023 2024 2025 Construction period (~28 months) Company Presentation Engineering completed Site preparations Hatchery construction Grow-out constructi
Slide 8: The facility entering the final stages of construction works
The facility entering the final stages of construction works Post smolt grow out Construction activities approaching the final stages – completion of construction targeted 3Q23 Company Presentation Currently ongoing Hatchery and nursery installation of production tanks and concrete floors taking sha
Slide 9: Technology demonstrating good water quality
Technology demonstrating good water quality October 2022 March 2023 Q3 2024 Next four batches inserted Continued deployment Contingency taken into the on monthly basis going production plan to address forwards Company Presentation expected start-up issues Some start-up related issues experienced, of
Slide 10: Highlights of the 1st quarter 2023
Highlights of the 1st quarter 2023 Important metrics development: Transfer of first batch to first feeding and nursery Construction # batches in # Proximar employees • The first batch was transferred to first feeding in completion production January, has since been followed by two additional batch
Slide 11: Subsequent events
Subsequent events • A combination of new equity and a shareholder loan from Grieg Kapital AS, provided Fully Proximar an additional NOK 180 million funded • The proceeds will be used for CAPEX and working capital at the company’s phase 1 facility in Oyama, which is now fully funded • The annual gene
Slide 12: Financial summary 1st quarter 2023
Financial summary 1st quarter 2023 P&L Q1 2023 Q1 2022 Operating expenses Revenue and other income 6 0 steadily increasing due to Operating expenses -8 962 -4 174 growing operational activity Net financials - 847 716 Earnings before taxes -9 673 -3 459 The construction related assets reflects that t
Slide 13: Summary and outlook
Summary and outlook Summary (end of) 1Q 2023: Construction approaching final stages with completion of grow out in 3Q Production continuing with monthly batches of egg inserts Further strengthened the production team attracting very talented and qualified candidates Proximar continues to receive str
Slide 14: Q&A
Company Presentation 1 Q&A
Slide 15: Appendix: Consolidated statement of comprehensive income
Company Presentation Appendix: Consolidated statement of comprehensive income 1
Slide 16: Statement from the Board of Directors
Statement from the Board of Directors We hereby confirm that the financial statements for the period from 1 To the best of our knowledge, the quarterly report gives a true and fair January through 31 March 2023 to the best of our knowledge have been view of the main events during the accounting peri
Slide 17: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income (Amounts in NOK 1.000) Q1 2023 Q1 2022 2022 Revenue - - - Other income 2 6 Revenue and other income 6 - - Cost of materials 881 - 680 Changes in biomass and inventory 3 -5 067 - -2 826 Personnel expenses 4 525 1 958 12 939 Depreciation and Amortisation
Slide 18: Consolidated statement of financial position
Consolidated statement of financial position (Amounts in NOK 1.000) Note 31 March 2023 31 March 2022 31 Dec 2022 (Amounts in NOK 1.000) Note 31 March 2023 31 March 2022 31 Dec 2022 Assets Equity and liabilites Non-current assets Equity Assets under construction 2 787 370 409 584 649 729 Property, pl
Slide 19: Consolidated statement of changes in equity
Consolidated statement of changes in equity Share Share premium Other Translation (Amounts in NOK 1.000) Total equity Note capital reserve equity differences Balance at 1 January 2022 3 979 386 809 - -393 390 395 Loss for the period -22 561 -22 561 Currency effect on investment in subsidiaries * 249
Slide 20: Consolidated statement of cash flows
Consolidated statement of cash flows (Amounts in NOK 1.000) 31 March 2023 31 March 2022 31 Dec 2022 Cash flow from operating activities Profit/(loss) before tax -9 676 -3 459 -28 721 Income taxes paid - 0 0 Depreciation 3 104 153 3 750 Change in biological assets -5 221 -2 868 Change in inventory -6
Slide 21: Summary of significant accounting policies
Note 1 - Summary of significant accounting policies The Proximar Seafood group is an Norwegian-registered seafood company engaged in land-based fish farming, with its head office in Bergen, Norway. The Proximar group has started the construction of a production facility for Atlantic salmon close to
Slide 22: Land, property, plant and equipment (1/2)
Note 2 - Land, property, plant and equipment (1/2) Amounts in 1.000 NOK Split between Right-of-use assets and owned assets: 31.03.2023 31.03.2022 Carrying amount RoU-assets 2 103 1 175 Carrying amount owned assets 923 183 410 035 Total property, plant and equipment incl. right-of-use assets 925 286
Slide 23: Land, property, plant and equipment (2/2)
Note 2 - Land, property, plant and equipment (2/2) Amounts in 1.000 NOK Estimated useful life and depreciation plan is as follows: Economic life Not applicable 25 years 25 years 3-15 years Depreciation plan Not applicable Linear Declining Linear * Currency effect relates to exchange differences aris
Slide 24: Biological assets
Note 3 – Biological assets Amounts in 1.000 NOK The group started with production in October 2022. At period end March 31th biological assets consists of the four first batches of eggs measured at cost. Volumes of biomass (count) 31.03.2023 31.03.2022 31.12.2022 Volume of biomass 347 096 - 250 995 C
Slide 25: Share capital and shareholders (1/2)
Note 4 - Share capital and shareholders (1/2) The share capital of NOK 4.032.765 consisted of 40.327.650 shares, each with a nominal value of NOK 0,1 at 31 March 2023. All shares carry equal rights. The movement in the number of shares during the year was as follows: Ordinary shares at beginning of
Slide 26: Share capital and shareholders (2/2)
Note 4 - Share capital and shareholders (2/2) List of main shareholders at 31 March 2023 Number of Ownership Shareholder shares percentage Daimyo Invest AS 3 996 238 9,9 % Grieg Kapital AS 3 180 049 7,9 % Loyden AS 2 805 000 7,0 % Kvasshødgi AS 2 744 844 6,8 % Nutreco International B.V. 2 160 493 5,
Slide 27: Earnings per share
Note 5 - Earnings per share Amounts in NOK 31 March 2023 31 March 2022 31 Dec 2022 Profit (loss) for the year 22 736 743 -27 823 084 -22 561 021 Weighted average number of outstanding shares during the year 39 935 965 39 787 650 39 787 650 Earnings (loss) per share - basic and diluted (in NOK) 0,57
Slide 28: Borrowings and other current liabilities (1/3)
Note 6 - Borrowings and other current liabilities (1/3) Amounts in NOK In December 2022 the Group renegotiated a credit facility of JPY 2.500.000.000. The facility recognised at end of 2022 is derecognised and a new loan is recognised in March 2023. The agreement has a fixed interest rate of 2,65% a
Slide 29: Borrowings and other current liabilities (2/3)
Note 6 - Borrowings and other current liabilities (2/3) Amounts in NOK Non-current liabilities Borrowing company Currency 31.03.2023 31.03.2022 31.12.2022 Proximar Seafood AS Convertible bond loan (Norway) NOK 215 046 214 720 Proximar Seafood AS Non-current interest bearing debt* (Norway) NOK 30 000
Slide 30: Borrowings and other current liabilities (3/3)
Note 6 - Borrowings and other current liabilities (3/3) Amounts in NOK Non-current b ullet credit facility: Credit facility guarantee: The loan is guaranteed by Grieg Kapital AS, who is also a shareholder. As security for Proximar Ltd.'s payment obligations, the Guarantor has a first priority pledge
Slide 31: Other short term receivables
Note 7 – Other short term receiveables During the construction process, and under Japanese VAT-regulation laws, VAT related to the construction expenses cannot be refunded until the construction work is completed. As per period end Q1 2023 a total of TNOK 13 049 has been paid related to VAT for cons
Slide 32: Subsequent events
Note 8 – Subsequent events In April 2023 the Group carried out a tap issue on the convertible bond loan. The total issue was NOK 40.000.000 with the same maturity and interest rate as the convertible bond loan. The company has an option to buy these bonds back before end of August 2023. In April 202