Aker Biomarine Asa · OSL:AKBM
Aker Biomarine Asa — Q4 2023 Earnings Presentation
27 slides from Aker Biomarine Asa's earnings presentation, Feb 14, 2024
Slide 1: Fourth Quarter 2023
FOURTH QUARTER 2023 Aker BioMarine ASA 14 February 2024
Slide 2: Q4 2023 highlights
Q4 2023 highlights ▪ A year of strong revenue growth ▪ Fourth quarter revenues of USD 82.9 million, up 5% YoY ▪ 2023 revenues of USD 335.2 million, up 21% YoY ▪ Ingredients EBITDA adj. of USD 19.3 million (USD 16.2 million) ▪ Brands EBITDA adj of USD -0.1 million (USD 2.2 million) ▪ Group EBITDA of
Slide 3: Quarterly revenue and Adjusted EBITDA
Quarterly revenue and Adjusted EBITDA Revenue Adjusted EBITDA1 USD million USD million 95 89 83 25 79 21 69 21 18 6 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 3 1) Aker BioMarine evaluates the performance based on Adjusted EBITDA. This metric is defined as operat
Slide 4: Annual revenue and Adjusted EBITDA
Annual revenue and Adjusted EBITDA Business model with high operating leverage, but margin hampered by low production of Suberba in Houston and higher fuel price Revenue Adjusted EBITDA1 and margin USD million USD million and % 100 30% 27% 25% 25% 90 335 25% 24% 78 25% 21% 22% 80 288 70 277 Kori 69
Slide 5: Offshore operations
Offshore operations Annual production Quarterly production Metric tons (MT) Metric tons per quarter ▪ Offshore production impacted by longer 25 000 than expected stay at shipyard 52 000 50 700 ▪ Q4 production of 880 MT 20 000 ▪ 5-year classing of two vessels resulted in larger 45 000 43 800 scope th
Slide 6: Commissioning of Provider and five-year class resulted in harvesting below a normalized year for 2023
Commissioning of Provider and five-year class resulted in harvesting below a normalized year for 2023 Further upside from continued operational excellence and drone April and May Nov and Des 2023 Normalized Provider issues Shipyard Production Production Catch days lost 34 days 85 days Production per
Slide 7: USV deployed at harvesting ground
USV deployed at harvesting ground Proof of concept in progress Big Data predicts areas with high krill concentration Drone travels to verify krill concentration Fleet follows 7
Slide 8: Highlights Qrill category
Highlights Qrill category LTM Qrill category revenues up 21% YoY Annual revenue, USD million 21% ▪ Q4 Qrill Aqua revenues down 4% YoY 150 Thousands 21% ▪ 2023 Qrill Aqua revenues increased by 26%, significant volume growth 120 ▪ Favorable marine ingredient market continues to support demand and pric
Slide 9: Good momentum on Aqua prices in the second half of the year
Good momentum on Aqua prices in the second half of the year Qrill Aqua price (USD/MT) Historical price development Qrill Aqua2 and fish meal prices (USD, 2012 = 1) Indexed pricing +5% 1.6 Qrill Aqua Fish meal 1.5 1.4 Price gap between 1.3 Qrill Aqua and fish meal 1.2 1.1 1.0 0.9 0.8 0.7 Avg. 2023 4Q
Slide 10: Highlights Human Health Ingredients
Highlights Human Health Ingredients Superba revenue up 11% YoY USD million 25 20 15 ▪ Superba revenues of USD 18.8 million, up 11% YoY 10 ▪ 2023 with 36% sales growth 5 ▪ Growth across most regions, particularly in China, South Korea, Australia and Europe 0 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2
Slide 11: Highlights Brands segment
Highlights Brands segment Lang Epion ▪ Revenues up +8% YoY ▪ Revenues down 27% YoY due to a ▪ Growth mainly driven by increased change of distribution with a sales of gummies, prenatal and major retailer (as reported in brain health products with some of Q3) the largest retailers ▪ Higher EBITDA mar
Slide 12: Financials
FINANCIALS ANIMVWOI8 Yan (vy)
Slide 13: Financial development
Financial development Group figures Revenue Adj. EBITDA and margin Net interest-bearing debt USD million USD million and % USD million 95 30 30% 89 26% 26% 399 388 83 24% 25 373 365 79 25 21% 25% 359 21 69 20 21 20% 18 15 15% 10 9% 10% 6 5 5% 0 0% Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022 Q1 2
Slide 14: Ingredients segment
Ingredients segment Revenue Adj. EBITDA and margin USD million USD million 30 64 62 60% 55 24 25 53 50% 21 19 20 42 40% 16 37% 15 30% 33% 35% 20% 31% 10 9% 5 10% 4 0% - Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 ▪ Qrill category: revenues down 2% compared to Q4-2
Slide 15: Fuel cost as the main cost driver for Ingredients in 2023
Fuel cost as the main cost driver for Ingredients in 2023 Fuel price spread development Montevideo vs Gasoil 0.1% FOB Rotterdam Barges (USD/Mt) ▪ Fuel costs increased by USD ~10m in 2023 vs 2022 1 800 ▪ The fuel price was hedged by using call options for Gasoil 1 600 0.1% FOB Rotterdam Barges 1 400
Slide 16: Brands segment
Brands segment Revenue Adj. EBITDA and margin USD million USD million 18% 16,0 17% 16% 14,0 34 15% 14% 31 31 12,0 30 30 13% 12% 11% 10,0 10% 9% 7% 8,0 8% 7% 6,0 6% 5% 2% 4,0 4% 2,2 3% 0% 1% 0,8 0% 2,0 2% 1% 0,2 0% 0,0 -1% -2% -0,0 -0,1 -2,0 -3% -4% -4,0 -5% -6% -7% -6,0 -8% -9% -8,0 Q4 2022 Q1 2023
Slide 17: Profit and loss statement
Profit and loss statement Q4 2023 Q4 2022 YTD 2023 YTD 2022 USD million Net sales (Unaudited) (Unaudited) (Unaudited) (Audited) ▪ Net sales for the quarter up 5% compared to Q4-22. The positive development is driven by higher Superba sales in the Ingredients segment while Qrill Aqua sales is in line
Slide 18: Balance sheet at end of 2023 and end of 2022
Balance sheet at end of 2023 and end of 2022 USD million Q4 2023 Q4 2022 Property plant and equipment (Unaudited) (Audited) ▪ Additions mainly reflect shipyard cost in the quarter, but also new equipment in Houston, investments in growth projects such as protein, algae, Lysoveta and PL+. ASSETS Inta
Slide 19: Cash flow in Q4 2023 and 2022 and full year 2023 and 2022
Cash flow in Q4 2023 and 2022 and full year 2023 and 2022 USD million Q4 2023 Q4 2022 2023 2022 (Unaudited) (Unaudited) (Unaudited) (Audited) Cash flow from operations ▪ Higher cash flow from operations in Q3-23 compared to Q3-22 driven by Net profit (loss) after tax 9.9 0.2 -9.0 10.0 net change in
Slide 20: Financial and legal reorganization has been completed
Financial and legal reorganization has been completed Business units are now operational as separate business units Feed Ingredients (AFI) Human Health Ingredients (HHI) Consumer Health Products Emerging Businesses ▪ Krill harvesting and processing ▪ Manufacturing and selling krill oil to the ▪ Lang
Slide 21: Feed Ingredients: Financials
Feed Ingredients: Financials Revenue and cash EBITDA, adjusted1 Run rate cash EBITDA sensitivity Cash EBITDA3 Variable cost Fixed cost The sensitivity table assumes sales volume equal production volume in any given year, such that revenue and associated production costs Sales volume growth 14% 20% 0
Slide 22: Outlook
Outlook Human Health Consumer Health Feed Ingredients Emerging Businesses Ingredients Product ▪ Growing undersupply of ▪ Growing global ▪ Retailers focusing more ▪ Focus on driving marine nutrients nutrition market on private label towards profitability ▪ Positive impact from ▪ Increased market shar
Slide 23: Appendix
@) AKER BIOMARINE APPENDIX
Slide 24: Feed Ingredients: 2023 cash EBITDA
Feed Ingredients: 2023 cash EBITDA 2023 cash EBITDA (USDm)1 Cash EBITDA explanation: USDm Cash EBITDA adj. ▪ “Cash basis” refers to revenue and costs being accounted for as they are incurred Pro Forma Reported IFRS revenue 167 Adjustments (11) ▪ Under IFRS costs are allocated to inventories Adjusted
Slide 25: Revenue per product
Revenue per product Excluding eliminations between Ingredients and Brands 3,5 1,3 3,2 3,1 29,6 31,1 2,7 29,9 30,9 33,5 40,1 39,9 32,9 32,4 20,6 16,9 18,3 20,7 20,9 18,8 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Krill oil Qrill Aqua Brands Other Qrill category * * Other includes Qrill Pet, Asta and QHP
Slide 26: 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 27: Aker BioMarine
ey AKER BIOMARINE