Atlantic Sapphire Asa · OSL:ASA
Atlantic Sapphire Asa — Corporate Update (May 2020)
40 slides from Atlantic Sapphire Asa's corporate update, May 4, 2020
Slide 1: Oslo Stock Exchange Listing Company Update
Oslo Stock Exchange Listing Company Update May 4th, 2020 |
Slide 2: Important Information
IMPORTANT INFORMATION This presentation (the "Presentation") has been produced by Atlantic Sapphire AS (the "Company") exclusively for information purposes. This Presentation has not been approved, reviewed or registered with any public authority or stock exchange. This Presentation is not a prospec
Slide 3: Massive Transformative Purpose
Massive Transformative Purpose Massive Transformative Purpose TM Pioneering Bluehouse Farming, Locally; Transforming Protein Production, Globally; To Feed The World Sustainably. 3|
Slide 4: Corporate Overview
1. Corporate Overview Founded in 2010. Listed on the Oslo Stock Exchange (Ticker: ASA), Norway Large Scale Production Facilities, South Florida – US ▪ 220 kt HOG production facility under development ▪ Sole, in-market BluehouseTM producer at scale ▪ Strategic intellectual property roadmap establishe
Slide 5: Management
2. Management Selected management Selected board Johan E. Andreassen Jose Prado CEO, AS USA & Co-Founder CFO & EVP ▪ Headed a 30,000 tonnes capacity salmon farming company, Villa Organic, ▪ 21 years full investment cycle experience, from early stage to mid-cap from idea inception to IPO and strategi
Slide 6: Opportunity
3. Opportunity … and is experiencing high sea lice and disease management Sea farming requires 2-20 ̊C sea temperature and sheltered areas… issues Area not eligible for conventional net pen salmon farming ▪ Close to 100% of the global supply of Atlantic salmon is produced in sea ▪ The conventional i
Slide 7: US Salmon Market
4. US Salmon Market US is the single largest market for Atlantic …and the US demand for salmon is …with considerable upside potential salmon… increasing rapidly… Market size Atlantic salmon (kt)1 US Atlantic salmon demand (WFE kt)2 Salmon consumption per capita (kg/year)3 81 % implied increase in 7.
Slide 8: US Market Potential
5. US Market Potential Estimated US market size, Atlantic salmon (kt)1 US market projection, 2027 (kt)1 ~900 ~900 +7% Large addressable market at play for Sapphire and other producers 120 2019 2020 2021 2022 2023 2024 2025 2026 2027 2020 US Projected 2027 Market Total US market Conventionial sea far
Slide 9: Global Salmon Trade Patterns
6. Global Salmon Trade Patterns1 Norway, Faroe kt Islands, Iceland Harvest 1,522 Market 55 Russia kt Harvest 43 Market 139 North America kt EU kt Harvest 178 Harvest 273 Market 634 Asia kt Market 1,201 Harvest 34 Market 668 5-8 days LatAm kt Harvest 978 Market 194 Oceania kt Harvest 84 Market 79 = H
Slide 10: Conventional Industry Environmental Issues
7. Conventional Industry Environmental Issues Diseases and parasites Escapes Untreated fish waste Conventional ocean net pen farming experiences a series of Impact on wild concerns salmon Medicines and pesticides Predators Micro plastics Conventional Ocean Net Pen Farming Industry Issues Are Signifi
Slide 11: ESG Leadership
8. ESG Leadership Salmon Farming Is Regarded As A Sustainability Leader In Protein Production1 ▪ Atlantic Sapphire is set to publish its first ESG report (GRI) in Q2(20) FAIRR Index – Benchmarking intensive livestock and fish farming companies on ESG issues Top 3: Salmon farmers Atlantic Sapphire Is
Slide 12: Unique Value Proposition
9. Unique Value Proposition Typical conventional sea based salmon farming value chain Land-based Well boat Sea based Well boat End Processing Trucking Airfreight Trucking hatchery transport net pens transport consumer Atlantic Sapphire Miami operation value chain BluehouseTM Trucking End consumer At
Slide 13: Bluehouse Infrastructure
10. BluehouseTM Infrastructure 1 Egg hatchery 2 Juvenile tanks 4 3 Smolt tanks 4 4 Growout tanks 6 3 5 Biofilters 5 2 1 6 Processing 7 5 7 Truck pick-up Treated, non-toxic waste water Fresh and saline discharged intake water From Egg To Plate – BluehouseTM Fully Controls Key Drivers Of Production Cy
Slide 14: Location Rationale – Miami, Florida
11. Location Rationale – Miami, Florida Atlantic Ocean 1 Discharge water – Unique geology to 5¢ 10¢ sustainably discharge salt water in quantities required to scale 14¢ 2 Intake water – Highly productive aquifers Atlantic Ocean with stable, high quality salt and fresh 11¢ groundwater 7¢ 3 Electricit
Slide 15: US Water Infrastructure
12. US Water Infrastructure Why South Florida is ideal for Bluehouse salmon farming Florida Provides Unique And Incomparable Water Infrastructure Conditions For BluehouseTM Production At Scale1 1 Based on management knowledge and experience. 15 15 |
Slide 16: Risk Mitigation With Scale
13. Risk Mitigation With Scale # % of biomass per independent system # of separate growout systems % 100 100 90 90 80 80 70 65 70 60 60 50 50 40 40 30 30 Today 21 20 20 10 8 10 1 2 0 0 DK 1 DK 2 DK _US @ 10kt DK – US @ 30kt DK – US @ 90kt Risk Of Biomass Loss Is Sought Reduced With Scale Due To Incr
Slide 17: Risk Mitigation With Innovation
14. Risk Mitigation With Innovation months Revenue impact per incident (months) Continued innovation reduces impact of one-off 4 biomass loss events ▪ A potential mortality event impact is reduced by improved reaction time. 3 ▪ Q2 ‘20 work underway to divide existing growout systems in two, which wi
Slide 18: Land Expansion Opportunities
15. Land Expansion Opportunities ▪ Atlantic Sapphire is targeting to acquire up to an additional 300-500 acres of land in South West Miami-Dade County that meets BluehouseTM requirements ▪ The addressable area is ~35,000 acres, zoned Atlantic Sapphire USA for agriculture, and consists primarily of n
Slide 19: Offtake
16. Offtake Unique product attributes and brand promise ▪ Delicious taste – mild and less fishy flavour, versatile for cooking ▪ Sustainable – lower carbon footprint, possibility to switch to compostable packaging ▪ Eco-friendly – reduces impact on wild species and the environment ▪ All natural – fr
Slide 20: Unique Market Opportunities
17. Unique Market Opportunities Retailers moving towards more sustainable sourcing, in line with consumers’ increasing focus on what’s 1 Retail good for them and the planet Bluehouse salmon has won blind tastings with 2 Food service Michelin-starred and celebrity chefs. Our name is printed on menus,
Slide 21: Vertical Integration Opportunities
18. Vertical Integration Opportunities Packaging Broodstock material Sustainable Secondary power processing BluehouseTM vertical integration opportunities Feed Biogas Value-added Oxygen ingredients ▪ Identified opportunities expected to increase efficiency and new revenue streams, while maintaining
Slide 22: US Build-out plan
19. US Build-out plan US construction management will drive the 2031 business plan: Annual harvest volumes (kt HOG) Annual production in kt HOG 220 200 165 140 120 95 75 55 35 23 13 5 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 The Road to 220,000t Of Annual BluehouseTM Salmon Produc
Slide 23: Summary
20. Summary Why Atlantic Sapphire Management Team ▪ Industry-leading, experienced team. Equity-linked performance culture ▪ Technology proof of concept achieved in Denmark, including considerable learning Denmark Experience from continued process improvements, as well as mistakes ▪ Commercial scale
Slide 24: Oslo Stock Exchange Listing Company Update
Oslo Stock Exchange Listing Company Update May 4th, 2020 24 |
Slide 25: Contents
Contents Miami Bluehouse salmon ▪ Oslo Stock Exchange Listing ▪ Covid-19 Update ▪ US Update ▪ US Product Quality Update ▪ 2020 Milestones ▪ US Photos ▪ Shareholder Overview 25 |
Slide 26: Oslo Stock Exchange Listing
Oslo Stock Exchange Listing Oslo Stock Exchange May 5th, 2020 expected listing on the fully regulated Oslo Børs. Updated ticker: ASA ▪ Corporate governance actions, including conversion to a public company and board & management changes completed ▪ Enhances profile with investors, business partners
Slide 27: Covid-19 Update
Covid-19 Update US Phase 1 construction and operations advancing, despite Covid-19 risks ▪ Classified as an “essential business” by local authorities, operations and construction have proceeded without significant delays. Early implementation of prevention measures taken, and close management contin
Slide 28: US Update
US Update US growout tank Fish transfer to the 2nd growout system completed ▪ Commissioning of remaining 4 systems on track ▪ ~3.5m fish swimming in the US BluehouseTM ▪ Over 80 full time employees US Bluehouse salmon Lead tank of salmon average ~2kg, with largest ~3kg ▪ Fish appetite in line with e
Slide 29: US Product Quality Update
US Product Quality Update Excellent US product testing results: mild and versatile taste, ideal for US consumer preference Bluehouse Salmon ▪ Fillet color and texture at or above target KPIs, for fish size and stage of growth ▪ Unique, stable water source supporting product quality ▪ Longer product
Slide 30: 2020 Milestones
2020 Milestones Key Upcoming Milestones in 2020 ▪ First ESG report (GRI) completed in Q2 ’20 ▪ DK: Harvest in Q3 ‘20 ▪ US: Phase 1 construction completion in Q3 ‘20 ▪ US: First US harvest in Q3 ‘20 ▪ US: Phase 2 design and capex budget developed by Q4 ’20 ▪ US: Master plan developed for 160 acres by
Slide 31: US Photos (I)
US Photos (I) Processing plant under construction Salmon farmers in Miami, Florida 31 |
Slide 32: US Photos (II)
US Photos (II) 36,000 m2/390,000 ft2 Phase 1 (April, 2020) Team members working on commissioning 32 |
Slide 33: Shareholder Overview (As of May 1st)
Shareholder Overview (As of May 1st) Atlantic Sapphire ASA Total Shares Outstanding: 71,276,100 Oslo Børs Ticker Symbol: ASA Share Price (As of May 1, 2020): NOK 115.00 / share Market Capitalization: NOK 8.2B Ranking Holding Percentage Name Country Type 1 9,459,849 13.3% ALSCO AS Norway Ordinary 2 4
Slide 34: Appendix
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Slide 35: Proudly raised in the USA
Ah Rte — ae ace > a Proudly raised in the USA 4 Bluehouse Salmon Bluehouse, green planet.
Slide 36: We're sustainably raising salmon in the USA
We’re sustainably raising salmon in the USA that are good for you and better for our oceans. No added hormones, antibiotics, or pesticides. Delicious, all-natural, protein-rich, and the only fresh sushi-grade salmon. Local production in the USA (Homestead, FL), supporting our economy and communities
Slide 37: Challenges with ocean farming that we solve
Challenges with ocean farming that we solve with our Bluehouses: No disease and parasites Farming fish in a No antibiotics and pesticides Bluehouse is one No microplastics solution to feed No mercury our world’s No untreated fish waste No escapes growing No predators population No air freight to mai
Slide 38: Our Unique Approach is the Leanest Salmon Value Chain
Typical conventional Our Unique Approach is value chain the Leanest Salmon Land-based hatchery Well boat transport Processing Trucking End Consumer Value Chain and All- American Well boat Sea based Trucking Airfreight transport net pens o Mitigated risk of exposure and supply interruption o No styro
Slide 39: We love our oceans which is why we let them be
Responsibly raised on shore. Supports our economy. Low carbon footprint. We love our oceans which is why we let Eliminates impact on wild salmon, costal areas and the seabed. them be.
Slide 40: 'Star of Innovation' at European SME Awards 2019
‘Star of Innovation’ at European SME Awards 2019 Atlantic Sapphire innovative technology is being recognized ▪ ‘Most Innovative Small and Mid-Cap Company in Europe of 2019’ at the European SME Awards ▪ The Awards aim to promote best practices and to highlight the best European Small and Mid-Sized Co