Aker Biomarine Asa · OSL:AKBM
Aker Biomarine Asa — Q1 2023 Earnings Presentation
24 slides from Aker Biomarine Asa's earnings presentation, Apr 28, 2023
Slide 1: First Quarter 2023
FIRST QUARTER 2023 Aker BioMarine ASA 28 April 2023
Slide 2: First quarter 2023 highlights
First quarter 2023 highlights ▪ Revenues of USD 69.0, up 22% year over year ▪ Adjusted EBITDA of USD 6.1 million ▪ Net profit of USD -17.6 million ▪ Krill offshore production stable YoY at 19,850 MT ▪ Ingredients ▪ Qrill Aqua revenues of USD 20.6 million, up 46% YoY ▪ Superba revenues of USD 18.3 mi
Slide 3: Quarterly revenue and Adjusted EBITDA
Quarterly revenue and Adjusted EBITDA Revenue Adjusted EBITDA1 USD million USD million 79 21 73 21 68 69 19 57 8 6 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 3 1) Aker BioMarine evaluates the performance based on Adjusted EBITDA. This metric is defined as operati
Slide 4: Offshore operations
Offshore operations Start to 2023 season in line with recent years Annual production Quarterly production Metric tons (MT) Metric tons per quarter ▪ Q1 production of 19,850 MT 25 000 ▪ 5% below Q1-22 and 2% above Q1-21 52 000 51 100 ▪ Production has continued to be good with 20 000 45 000 YTD harves
Slide 5: Offshore operational excellence
Offshore operational excellence Working systematically over time drive results Harvesting hours ▪ Optimizing time the trawl is in the water fishing ▪ Q1’23 with 10% increase in harvesting hours YoY ▪ Numerous small and large initiatives implemented ▪ Modified Antarctic Provider to work as scientific
Slide 6: Highlights Qrill category
Highlights Qrill category LTM Qrill category revenues up 21% YoY Annual revenue, USD million ▪ Qrill Aqua with 46% higher revenues YoY driven by Thousands both higher volume and price 120 ▪ Qrill Aqua secured two new important customer contracts of 9,400mt for delivery in 2023 90 ▪ Strong Qrill dema
Slide 7: Highlights Superba
Highlights Superba Positive growth trajectory as we execute on the sales acceleration plan Superba revenue USD million 25 ▪ Superba sales of USD 18.3 million in the quarter ▪ Up 44% from same quarter last year ▪ Positive sales development, especially in Asia, 20 Europe and US mass market, as a resul
Slide 8: Approval of health claim for Superba in South Korea
Approval of health claim for Superba in South Korea Plan to reinitiate marketing and sales with local partner in the second quarter Superba sales in South Korea Market has been closed since 2020 ▪ The governmental bodies tightened the regulation on the krill USD millions oil category, effectively cl
Slide 9: What happens next in South Korea?
What happens next in South Korea? 1 Re-launch on TV Shopping ▪ Initiate TV Shopping campaigns and marketing efforts together with local partner 2 Expand through new channels and alliances ▪ New channels: online, brick & mortar, MLM etc. ▪ Build a sustainable platform for long term krill sales 3 Kril
Slide 10: Highlights Lang
Highlights Lang Positive momentum US private label supplement market 1 YoY % ▪ Strong growth in Lang sales, +13% YoY 8 6 ▪ Multiple new products awarded, to be rolled 4 out later this year, including the new Gummi 2 category with Sam’s Club 0 ▪ Positive development in margin – increase in -2 prices
Slide 11: Highlights Epion
Highlights Epion Kori keeps expanding its presence Out of store consumer sales (POS 1) Revenues USD million ▪ 5 new retail chains added year to date – products to be rolled out at more than 6,000 additional doors during 2023 +44% ▪ One major retailer has increased distribution with 10% Q1’22 Q1’23 1
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 30 35% 373 360 359 79 349 29% 73 25 28% 30% 324 68 69 26% 21 21 25% 57 20 19 20% 15 14% 15% 10 9% 10% 8 6 5 5% 0 0% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q
Slide 14: Ingredients segment
Ingredients segment Revenue Adj. EBITDA and margin USD million USD million 25 53 60% 49 22 44 50% 20 42 45% 16 15 40% 15 30 30% 34% 31% 10 20% 7 23% 4 5 10% 9% 0% - Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 ▪ Qrill category: sales up 34% compared to Q1-22, drive
Slide 15: Brands segment
Brands segment Revenue Adj. EBITDA and margin USD million USD million 18% 16.0 17% 16% 14.0 34 15% 14% 12.0 31 30 13% 12% 27 27 11% 10.0 10% 9% 7% 8.0 8% 7% 5% 6.0 6% 5% 4.0 4% 1% 2.2 3% 1.3 2.0 2% 1% 0.3 0% 0% 0.0 -1% -2% 0.0 -2.0 -3% -4% -5% -2.5 -4.0 -6% -7% -8% -6.0 -8% -9% -8.0 Q1 2022 Q2 2022
Slide 16: Profit and loss statement
Profit and loss statement Q1 2023 Q1 2022 2022 USD million Net sales (Unaudited) (Unaudited) (Audited) ▪ Revenue in the quarter was USD 69.0m, up 12.2m from Q1-22 driven by sales growth in both segments. Net sales from ingredients segment up USD 11.5m driven by krill meal and krill oil. Net sales fr
Slide 17: Balance sheet statement
Balance sheet statement Q1-2023 Q1-2022 2022 USD million (Unaudited) (Unaudited) (Audited) ASSETS Property, plant and equipment Property, plant and equipment 333.2 324.3 333.2 ▪ Depreciation of USD 8.2m in the quarter. Additions to PPE include Right to use assets 8.8 10.2 9.9 investments into Lysove
Slide 18: Cash flow statement
Cash flow statement Q1 2023 Q1 2022 2022 USD million (Unaudited) (Unaudited) (Audited) Cash flow from operations Net profit (loss) after tax (17.6) (9.8) 10.0 ▪ Negative cash flow from operations of USD 5.4m driven by Net loss after tax combined with higher interest rate payments of USD 6.9 and lowe
Slide 19: Outlook second quarter 2023
Outlook second quarter 2023 Operations Qrill Aqua Superba Brands ▪ Start of the year as ▪ Expect revenues for the ▪ Expect revenues for the ▪ Expect higher sales for expected, on track to second quarter to be second quarter to be second quarter deliver on a normalized above the same quarter above sa
Slide 20: Appendix
@) AKER BIOMARINE APPENDIX
Slide 21: 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 22: Revenue per product
Revenue per product Excluding eliminations between Ingredients and Brands 3.2 3.7 2.7 3.0 29.9 3.2 27.2 27.3 33.5 30.5 32.9 31.1 20.6 27.5 14.3 16.9 18.3 12.6 14.4 13.8 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Krill oil Qrill Aqua Brands Other Qrill category * * Other includes Qrill Pet, Asta and QHP
Slide 23: Aker BioMarine has hedged much of fuel price exposure through 2024
Aker BioMarine has hedged much of fuel price exposure through 2024 Curbing the impact on surging oil prices and creates predictability in largest cost drive Spot price development Gasoil 0.1% FOB Rotterdam Barges (USD/Mt) 1 400 ▪ In mid-2020 Aker BioMarine locked in 100% of estimated 2021-2024 fuel
Slide 24: Aker BioMarine
ey AKER BIOMARINE