Aker Biomarine Asa · OSL:AKBM
Aker Biomarine Asa — Q3 2021 Earnings Presentation
24 slides from Aker Biomarine Asa's earnings presentation, Oct 29, 2021
Slide 1: Third Quarter 2021 Presentation
THIRD QUARTER 2021 PRESENTATION Aker BioMarine ASA 29 October 2021
Slide 2: Highlights
Highlights ▪ Sales and earnings development in line with expectations ▪ Good harvesting towards the end of the quarter ▪ 7,195 MT in the quarter compared to 8,727 MT Q3 2020 ▪ Houston facility with all-time-high production and low unit cost ▪ Obtained full 2022-distribution for the Kori brand at two
Slide 3: Revenue and Adjusted EBITDA
Revenue and Adjusted EBITDA REVENUE ADJUSTED EBITDA1 USDm USDm 76 74 70 27 62 21 50 19 15 7 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 ▪ Ingredients: 21% lower y/y, where lower Superba sales in South Korea and the US ▪ The decrease from same period last year main
Slide 4: Eventful news flow in the quarter
Eventful news flow in the quarter Key events Science Organizational changes ▪ Aker BioMarine’s key patent for krill oil in ▪ Aker BioMarine expands its product portfolio ▪ Seth French appointed CEO for the Brands Europe validated with a Halal-certified krill oil ingredient segment in the US ▪ Major
Slide 5: Ingredients segment - Operations
Ingredients segment - Operations Offshore Onshore ▪ Krill harvesting was challenging throughout most of the quarter with ice ▪ The plant in Houston reached an all-time-high production with a 24% blocking the entrance to sub-area 48.2, preventing fishing during large increase from same period last ye
Slide 6: Ingredients segment - Sales
Ingredients segment - Sales QRILL Superba ▪ Sales of USD 26.4 million in the quarter, in line with the same period ▪ Sales of USD 13.3 million in the quarter, 42% lower than the same period last year, and 6% above last quarter last year, and 20% below last quarter ▪ Sales to Asia amounted to 49% of
Slide 7: Brands segment
Brands segment Lang (Private label) Epion ▪ Sales in the private label business were stable compared to third ▪ POS sales 65% higher than the same period last year, and around 20% quarter 2020 below last quarter ▪ Sales to major customers, including Sam’s Club, CVS, Costco and ▪ Important achievemen
Slide 8: Kori brand sales in the US market
Kori brand sales in the US market UNITS SOLD AND MARKETING REACH ▪ Lower Kori POS (Point of Sales) in the 90,000 1,400,000,000 quarter mainly due to a discontinuation of a SKU (Stock 80,000 1,200,000,000 Keeping Unit) at one of the larger retailers that will shift to a new SKU 70,000 when launching
Slide 9: Finance
FINANCE SNINVYWOId dav a
Slide 10: Financial development in Q3 2021 versus Q3 2020
Financial development in Q3 2021 versus Q3 2020 REVENUE ADJUSTED EBITDA1 ADJUSTED EBITDA MARGIN NET INTEREST-BEARING DEBT USDm USDm % USDm 70 27 305 38% 62 222 24% 15 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 1) Aker BioMarine evaluates the performance based on Adjusted EBITDA.
Slide 11: Ingredients segment
Ingredients segment REVENUE ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN USDm USDm 80% 25 56 23 50 70% 46 20 60% 18 17 40 16 50% 15 30 40% 45% 40% 39% 10 30% 31% 7 20% 24% 5 10% 0% - Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 11
Slide 12: Production volumes
Production volumes OFFSHORE KRILL MEAL PRODUCTION (LTM) ONSHORE KRILL OIL EXTRACTION (LTM) Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 ▪ Offshore production volume for Q3 2021 was 7,196 MT, down from 8,727 ▪ Stro
Slide 13: Brands segment
Brands segment REVENUE ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN USDm USDm 30% Kori launch cost All Kori expenses 12.0 32 excluded in included in adj. EBITDA* adj. EBITDA* 25% 10.0 28 25 20% 8.0 23 20 15% 12% 6.0 10% 10% 4.0 5% 2.9 2% 2.0 2.4 2% 0% 0.5 0.6 0.0 (1.2) -5% -5% (2.0) -10% (4.0) Q3 2020
Slide 14: Profit and loss in Q3 2021 and full year 2020
Profit and loss in Q3 2021 and full year 2020 Q3 2021 Q3 2020 YTD 2021 YTD 2020 2020 USD thousands Net sales: (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) ▪ Sales in the Ingredients segment was 21% lower than Q3-20 driven by reduced krill oil sales in South Korea and the US. Sales for k
Slide 15: Balance sheet at end of Q3 2021 and year end 2020
Balance sheet at end of Q3 2021 and year end 2020 Q3-2021 Q3-2020 2020 USD thousands (Unaudited) (Unaudited) (Audited) Property, plant and equipment ASSETS ▪ Additions in the quarter include capex in the Ingredients segment. Disposals 322 528 285 351 266 556 include the sale of La Manche (USD 1.1m n
Slide 16: Refinancing secures flexibility and reduced financial cost
Refinancing secures flexibility and reduced financial cost Sustainability-linked loan with a more favorable structure with increased flexibility on covenants, dividends and indebtedness ▪ Agreed new financing structure with its current bank group and one new bank entering the syndicate ▪ The amortiz
Slide 17: Cash flow in Q3 2021 and full year 2020
Cash flow in Q3 2021 and full year 2020 Q3 2021 Q3 2020 YTD 2021 YTD 2020 2020 USD thousands Cash flow from operations (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) ▪ The Increase in ‘Net profit (loss) after tax’ is driven by the fair value adjustment of the earn-out. This item has no
Slide 18: Concluding remarks
Concluding remarks SNINVAOIG 4dNv a
Slide 19: Unchanged full-year 2021 outlook
Unchanged full-year 2021 outlook Offshore production Expected at 40-45 KT Onshore production Strong performance at Houston factory Revenue Expected to come in somewhat below last year’s level Adjusted EBITDA margin1 15%-17% 1) Aker BioMarine evaluates the performance based on Adjusted EBITDA. This m
Slide 20: Welcome to Capital Markets Update
Welcome to Capital Markets Update 1 December 2021 - A fully digital event 20
Slide 21: Operating leverage and unit cost
Operating leverage and unit cost Realizing scale effects in supply chain a key driver for results OFFSHORE VOLUME & UNIT COST ONSHORE VOLUME & UNIT COST USD/MT* USD/kg* MT MT 2015 2016 2017 2018 2019 2020 2021E 2015 2016 2017 2018 2019 2020 2021E 21 * Unit costs excludes asset depreciation costs. On
Slide 22: Revenue per product
Revenue per product REVENUE PER PRODUCT (EXCLUDING ELIMINATIONS BETWEEEN INGREDIENTS AND BRANDS1)) USDm 3.3 27.8 4.5 24.8 23.9 22.0 23.2 13.3 Q3 2020 Q3 2021 Krill oil Qrill Aqua Brands Other * * Other includes Asta, Pet and QHP 22
Slide 23: EBITDA adjustments
EBITDA adjustments Q3 2021 EBITDA adjustments Q3 2020 EBITDA adjustments USDm USDm 4.3 1.1 (0.4) 1.6 1.1 26.8 21.8 (0.4) 14.7 12.4 EBITDA Gains/ losses on Transaction Restructuring Adjusted EBITDA Gains/ losses on Transaction Launch cost Adjusted sale of assets related costs and legal EBITDA sale of
Slide 24: P&L reconciliation
P&L reconciliation USDm Q3 2021 Q3 2020 Ingredients 39.8 50.4 Brands 24.8 27.8 Eliminations (2.7) (8.0) Reported revenues 62.0 70.2 EBITDA reconciliation USDm Q3 2021 Q3 2020 Ingredients 13.4 21.9 Brands (1.2) (0.8) Eliminations 0.2 0.8 Reported EBITDA 12.4 21.8 Adjustments 2.3 5.0 Adjusted EBITDA 1