Proximar Seafood As · OSL:PROXI
Proximar Seafood As — Q2 2023 Earnings Presentation
35 slides from Proximar Seafood As's earnings presentation, Aug 18, 2023
Slide 1: Company Presentation: Presentation of 2Q and H1 2023
Company Presentation Presentation of 2Q and H1 2023 18.08.2023 Nytt bilde – Fisk eller anlegg? 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.” Ole Christian Willumsen CFO 3 3
Slide 4: Highlights of the 2nd quarter 2023
Highlights of the 2nd quarter 2023 Important metrics development: Completed acquisition of the land Construction # batches in # Proximar employees • In May, we completed the acquisition of the land, completion production settling the seller credit and transferring the formal ownership to Proximar
Slide 5: Picture from mid-August of a ~80 grams juvenile
Picture from mid-August of a ~80 grams juvenile Company Presentation 5
Slide 6: 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 7: Proximar at a glance
Proximar at a glance Norwegian company building a land-based RAS facility Experienced team and owners, Local production provides for production of Atlantic salmon in Japan and strong partners in Japan significant cost advantage Figures in NOK/kg (HOG) • Stage I planned production of 5,300 tonnes • C
Slide 8: 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 (EBIT) cost at varying harvest levels Tonnes (HOG) at steady state production NOK / kg (HOG) at steady state production 6 660 Proximar net price1:129 6 000 Planned
Slide 9: On track with the initial schedule, construction completed and production developing
On track with the initial schedule, construction activities completed and production developing according to schedule Construction initiated First harvest Today (3Q 2024) 2020 2021 2022 2023 2024 2025 Construction period (~28 months) Company Presentation Engineering completed Site preparations Hatch
Slide 10: All construction works completed and equipment installations ongoing
All construction works completed and equipment installations ongoing Construction activities completed, ongoing preparations for inspection process and hand-over Company Presentation Currently ongoing installation of production equipment by AquaMaof CAPEX slightly revised to ~NOK 1 195m (NOK 1 150m
Slide 11: ~28 months of construction process finally completed (1/2)
~28 months of construction process finally completed (1/2) The construction of the grow-out building is completed – minor finishing works ongoing Company Presentation Equipment installation still ongoing by AquaMaof The quality of works is very high, and in line with the works in the Hatchery & Nurs
Slide 12: ~28 months of construction process finally completed (2/2)
~28 months of construction process finally completed (2/2) Company Presentation 12
Slide 13: Production update: Batch is showing encouraging growth
Production update: Batch 1 is showing encouraging growth and passed ~80 grams in mid-August Growth curves for Proximar’s first two batches Compared to growth model Growth in line with production plan Company Presentation See improvement in system performance Number of individuals in system as of 30/
Slide 14: Water quality stable and good, good growth conditions and fish welfare
Water quality stable and good, good growth conditions and fish welfare Water quality continuously being monitored Company Presentation Stable water quality seen over time Temperature control demonstrated during peak Oyama temperature comparison: Proximar maintains water temperature summer season, in
Slide 15: Operational update: Continuing to build the team
Operational update: Continuing to build the team and well on track for the future • Proximar is transitioning from construction to production • Resources currently being freed up from construction supervision to operational and production Production staffing ahead • Continued efforts to strengthen t
Slide 16: Financial summary 2nd quarter 2023
Financial summary 2nd quarter 2023 P&L Q2 2023 Q2 2022 YTD 2023 YTD 2022 2022 Revenue and other income 0 0 6 0 0 Operating expenses Operating expenses -13 554 -6 903 -22 516 -11 078 -25 485 increasing as planned due Net financials - 139 -703 - 860 12 -3 236 to growing operational Earnings before tax
Slide 17: Summary and outlook
Summary and outlook Summary (end of) 2Q 2023: Good progress in the final stages of the construction works and handover of grow-out building on track for 3Q Production in general showing steady growth and stable water quality Further strengthening of the team, attracting very talented and qualified c
Slide 18: Q&A
Company Presentation 1 Q&A
Slide 19: Appendix: Consolidated statement of comprehensive income
Company Presentation Appendix: Consolidated statement of comprehensive income 1
Slide 20: 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 30 June 2023 to the best of our knowledge have been view of the main events during the accounting perio
Slide 21: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income (Amounts in NOK 1.000) Q2 2023 Q2 2022 YTD 2023 YTD 2022 2 022 Revenue - - - - - Other income 2 - - 6 - - Revenue and other income - - 6 - - Cost of materials 1 295 - 2 176 - 680 Changes in biomass and inventory 3 -3 851 - -8 918 - -2 826 Personnel expe
Slide 22: Consolidated statement of financial position
Consolidated statement of financial position (Amounts in NOK 1.000) 30 June 2023 30 June 2022 31 Dec 2022 EQUITY AND LIABILITIES ASSETS Equity 30 June 2023 30 June 2022 31 Dec 2022 Non-current assets Share capital 4 5 905 3 979 3 979 Assets under construction 2 820 138 420 851 618 162 Share premium
Slide 23: Consolidated statement of changes in equity
Consolidated statement of changes in equity Share Share premium Translation (Amounts in NOK 1.000) Note Total equity capital reserve Other equity differences Balance at 1 January 2022 3 979 386 809 - -393 390 395 Loss for the period -23 183 622 -22 561 Currency effect on investment in subsidiaries *
Slide 24: Consolidated statement of cash flows
Consolidated statement of cash flows (Amounts in NOK 1.000) Note Q2 2023 Q2 2022 YTD 2023 YTD 2022 2 022 Cash flow from operating activities Profit/(loss) before tax -13 694 -7 606 -23 370 -11 065 -28 721 Income taxes paid -10 - -10 - - Depreciation 2 3 133 664 6 237 817 3 750 Gain from sales of fix
Slide 25: Note - Summary of significant accounting policies
Note 1 - Summary of significant accounting policies The Proximar Seafood group is a 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 M
Slide 26: Note - 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: 30.06.2023 30.06.2022 Carrying amount RoU-assets 1 635 2 718 Carrying amount owned assets 1 039 884 453 291 Total property, plant and equipment incl. right-of-use assets 1 041
Slide 27: Note - 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 Not applicable 25 years 25 years 3-15 years Depreciation plan Not applicable Not applicable Linear Declining Linear * Currency effect relate
Slide 28: Note - Biological assets
Note 3 – Biological assets Amounts in 1.000 NOK The group started with production in October 2022. At period end June 30th biological assets consists of the first batches of eggs measured at cost. Volumes of biomass (count) 30.06.2023 30.06.2022 31.12.2022 Volume of biomass 509 221 - 250 995 Reconci
Slide 29: Note - Share capital and shareholders (1/2)
Note 4 - Share capital and shareholders (1/2) The share capital of NOK 5.905.278 consisted of 59.052.780 shares, each with a nominal value of NOK 0,1 at 30 June 2023. All shares carry equal rights. The movement in the number of shares during the year was as follows: Ordinary shares at beginning of p
Slide 30: Note - Share capital and shareholders (2/2)
Note 4 - Share capital and shareholders (2/2) List of main shareholders at 30 June 2023: Number of Ownership Shareholder shares percentage Daimyo Invest AS 7 996 238 13,5 % Grieg Kapital AS 6 480 049 11,0 % Helida AS 4 042 000 6,8 % Loyden AS 2 805 000 4,7 % Kvasshødgi AS 2 744 844 4,6 % Nutreco Int
Slide 31: Note - Earnings per share
Note 5 - Earnings per share Amounts in NOK Q2 2023 Q2 2022 30 June 2023 30 June 2022 30 Dec 2022 Profit (loss) for the year -24 200 165 -5 940 217 -26 162 611 -15 206 417 -22 560 824 Weighted average number of outstanding shares during the year 49 618 356 39 787 650 44 830 952 39 787 650 39 787 650
Slide 32: Note - Other short term receivables
Note 6 – 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 Q2 2023 a total of TNOK 8 211 has been paid related to VAT for const
Slide 33: Note - Borrowings and other current liabilities (1/3)
Note 7 - Borrowings and other current liabilities (1/3) Amounts in NOK The Group has, through its subsidiary Proximar Ltd. (Japan), received a loan from a syndicate consisting of three large Japanese banks for a corporate loan of JPY 8.8 billion (NOK ~680 million). The loan is considered to be offer
Slide 34: Note - Borrowings and other current liabilities (2/3)
Note 7 - Borrowings and other current liabilities (2/3) Amounts in NOK In April 2023, the Group released a tap issue of the bonds with an option for conversion to shares in the parent company. The total amount issued is NOK 40.000.000 and consists of 40 mill bonds. The conversion rate of the bonds i
Slide 35: Note - Borrowings and other current liabilities (3/3)
Note 7 - Borrowings and other current liabilities (3/3) Amounts in NOK Payment profile non-current liabilities 2023 2024 2025 Total At 30. June 2023 Bullet credit facility 240 129 - 240 129 Non-current interest bearing debt 104 200 104 200 Convertible bond loan 242 300 242 300 Total - 240 129 346 50