Aker Biomarine Asa · OSL:AKBM
Aker Biomarine Asa — Q1 2022 Earnings Presentation
30 slides from Aker Biomarine Asa's earnings presentation, Apr 29, 2022
Slide 1: First Quarter 2022
FIRST QUARTER 2022 Aker BioMarine ASA 29 April 2022
Slide 2: First quarter 2022 highlights
First quarter 2022 highlights ▪ Increased revenue and EBITDA compared with Q1 2021 ▪ Brand segment sales growth ▪ Lift in Kori sales following national roll-out in Costco & Sam’s Club ▪ Positive development in private label ▪ Ingredient segment in line with last year ▪ Superba sales low following pa
Slide 3: Revenue and Adjusted EBITDA
Revenue and Adjusted EBITDA Revenue Adjusted EBITDA1 USD million USD million 74 76 62 19 57 50 15 8 7 7 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 3 1) Aker BioMarine evaluates the performance based on Adjusted EBITDA. This metric is defined as operating profit b
Slide 4: Offshore operations
Offshore operations Annual harvesting variations – expecting average annual volumes of 55,000-60,000 MT Annual production Increased production in Q1 Antarctic Endurance phased in since 2019 Focus on lifting Q2 and Q3 volumes Metric tons (MT) Metric tons per day ▪ Good start to 2022 season 60,000 25,
Slide 5: Ingredients segment
Ingredients segment Krill meal (Qrill) Krill oil (Superba) US breakfast show?? (omtale av studie) ▪ Revenue in the Qrill category of USD 17 million in the quarter, up 38% compared ▪ Superba sales of USD 13 million gives a solid start to the year with a year ago • Impacted by high volume sales in Q4
Slide 6: Brands
@) AKER BIOMARINE BRANDS
Slide 7: The Brands segment
The Brands segment Revenue1 Adj. EBITDA1 USD million USD million 140 15 120 12 100 9 80 6 60 Kori launch cost reported 3 as 40 Adj. EBITDA in 2020 0 20 - -3 2019 2020 2021 LTM Q122 2019 2020 2021 LTM Q122 7 1) After inter-company eliminations. In the 2020 figures, the cost related to the launch of K
Slide 8: Lang Pharma Nutrition, steady sales growth with predictable margins
Lang Pharma Nutrition, steady sales growth with predictable margins Revenue1 EBITDA1 USD million USD million 140 15 120 12 ▪ Above 20% annual sales 100 growth the last eight years 80 9 ▪ Solid business with the largest US retail chains as 60 6 customers 40 ▪ High EBITDA-to cash 3 conversion 20 - 0 2
Slide 9: Kori is a fast-growing consumer brand with high marketing investments
Kori is a fast-growing consumer brand with high marketing investments Revenue1 EBITDA1 USD million USD million 14 6 ▪ Investments to build brand equity, market leadership and 12 3 revenues 10 0 ▪ Marketing investments 8 -3 booked as operational cost 6 -6 ▪ Marketing investments since launch of Kori
Slide 10: Aker BioMarine's combined vertical integration and market leadership creates unique market dynamics
Aker BioMarine’s combined vertical integration and market leadership creates unique market dynamics Generating margins wherever the consumer buys krill oil products Aker BioMarine Lang Pharma Nutrition Epion Brands Retailers Consumers Ingredients Corporate brand manufacturer that Invests in consumer
Slide 11: Lang provides a valuable consumer brand platform for Aker BioMarine
Lang provides a valuable consumer brand platform for Aker BioMarine Partnering with leading retail chains, supplying innovative dietary supplement and nutrition products in growth categories Revenue breakdown by customer Revenue breakdown by category LTM as of Q1 2022 LTM as of Q1 2022 ▪ Provides pr
Slide 12: Through Lang, Aker BioMarine is well positioned to capitalize on growing retail focus on private label
Through Lang, Aker BioMarine is well positioned to capitalize on growing retail focus on private label Segment transformed from a pure financial tactic to a strategic necessity for retailers Retailers market their own products to meet changing consumer needs and grow earnings Increased shelf space i
Slide 13: Epion Brands - our consumer brand vehicle in the US
Epion Brands - our consumer brand vehicle in the US Driving consumer education and category innovation, benefiting own brands and the overall market Kori has achieved with full listing in all major Vertical integration allows for higher marketing retail chains in less than two years investments than
Slide 14: Kori brand has already made its mark in the category
Kori brand has already made its mark in the category Kori leading brand driving the omega-3 category Large need remains for omega-3s >$15m 76% #1 >70% 93% spent on marketing in Kori’s of the total marketing spend in Heart Disease: leading of the US population is believe omega-3s have 1st year leadin
Slide 15: Introducing new Kori innovations in 2022
Introducing new Kori innovations in 2022 Introducing Kori krill oil gummies Introducing Kori Mind & Body ▪ Heart healthy omega-3s ▪ Omega-3 – heart health & building blocks for a healthy ▪ 1st Pure Krill Gummy in the brain market ▪ Vitamin B-12 – nervous system ▪ Non-GMO Krill oil with no health & h
Slide 16: Brands segment - Q1 2022 summary
Brands segment - Q1 2022 summary Revenue1 EBITDA1 USD million USD million 35 6 30 4 25 2 20 15 0 10 -2 5 0 -4 Lang Epion Brands Lang Epion Brands 16 1) Includes inter-company eliminations.
Slide 17: Brands - Roadmap for growth and value creation
Brands - Roadmap for growth and value creation Grow both private label and own consumer brand activities Steady growth the past years of 15% p.a. Main value creation pillars Revenue, USD million ▪ Capitalize on strong relationships with the largest 250 Further develop retail chains; 85% of total ret
Slide 18: Financials
FINANCIALS ANIMVWOI8 Yan (vy)
Slide 19: Financial development
Financial development Group figures Revenue Adj. EBITDA and margin Net interest-bearing debt USD million USD million and % USD million 76 30 30% 74 324 26% 311 314 305 293 25 25% 62 22% 57 20 50 20 20% 14% 14% 15 14 15% 10% 10 10% 8 7 7 5 5% 0 0% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q1 2021 Q2 20
Slide 20: Ingredients segment
Ingredients segment Sales and earnings on par with same quarter last year Revenue Adj. EBITDA and margin USD million USD million 80% 20 54 18 18 70% 46 16 16 60% 40 14 50% 12 30 30 40% 10 7 40% 39% 7 8 30% 5 6 20% 24% 23% 4 10% 2 0% 9% - Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q1 2021 Q2 2021 Q3 202
Slide 21: Brands segment
Brands segment High sales volume of our US consumer brand, Kori krill oil Revenue Adj. EBITDA and margin USD million USD million 18% 16.0 32 17% 30 31 16% 15% 14.0 14% 12.0 13% 25 12% 11% 11% 10.0 23 10% 9% 8.0 8% 7% 6.0 6% 5% 3.3 4% 2% 2% 4.0 3% 2% 0.5 0.6 2.0 1% 0% 0.0 -1% -2% -2.0 -3% -1.2 -4% -5
Slide 22: Aker BioMarine has hedged 100% of fuel demand through 2024
Aker BioMarine has hedged 100% of fuel demand for through 2024 Curbing the impact on surging oil prices and predictability in largest cost drive Spot price development Gasoil 0.1% FOB Rotterdam Barges (USD/Mt) 1,200 ▪ In mid-2020 Aker BioMarine locked in 100% of estimated Spot price development 2021
Slide 23: Profit and loss statement
Profit and loss statement Q1 2022 Q1 2021 2021 USD million (Unaudited) (Unaudited) (Audited) Net sales Net sales 56.9 50.1 262.1 ▪ Revenue in the quarter was USD 56.9m, up 6.8m from Q1-21 driven by Cost of goods sold (35.9) (32.9) (173.9) continued sales growth in the Brands segment. Lower krill oil
Slide 24: Balance sheet statement
Balance sheet statement Q1 2022 Q1 2021 2021 USD million (Unaudited) (Unaudited) (Audited) ASSETS Property, plant and equipment Property, plant and equipment 324.3 332.8 327.9 ▪ Growth and maintenance capex in the quarter primarily in the Ingredients segment on vessel and Houston production related
Slide 25: Cash flow statement
Cash flow statement Q1 2022 Q1 2021 2021 USD million (Unaudited) (Unaudited) (Audited) Cash flow from operations Net profit (loss) after tax (9.8) (9.9) (8.7) ▪ Improved cash flow from operations in Q1-22 compared to Q1-21, Tax expenses (0.4) 0.3 0.8 driven by release of trade receivables and ethano
Slide 26: Full-year 2022 targets & outlook
Full-year 2022 targets & outlook Revenue Targeted revenue growth of +20%-25% Adjusted EBITDA margin1 Targeted margin of 20%-25% A shutdown to carry out upgrades and perform efficiency Houston factory improvements is planned from June 2022 and for the remainder of the year. The shutdown will not impa
Slide 27: Appendix
@) AKER BIOMARINE APPENDIX
Slide 28: Important information
Important information This presentation has been prepared by Aker BioMarine ASA (the "Company"). The presentation does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of the Company
Slide 29: Revenue per product
Revenue per product Excluding eliminations between Ingredients and Brands 2.8 4.5 30.0 4.5 32.3 3.3 3.1 24.8 30.5 23.2 27.1 24.5 22.0 9.5 14.1 23.7 17.7 16.6 13.3 12.7 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Krill oil Qrill Aqua Brands Other* * Other includes Asta, Pet and QHP 29
Slide 30: Aker BioMarine
ey AKER BIOMARINE