Slide 1: Arctic Fish Q3 Presentation
Arctic Fish Q3 Presentation 9th November 2021
Slide 2: Agenda
1 Highlights for the period 2 Operational performance & Group financials 3 Building blocks 4 Markets 5 Growth projects 6 Outlook and summary
Slide 3: Highlights in Q3 2021
Highlights in Q3 2021 • This year already, we have sold more salmon (8,542 tonnes) than any other year in the company’s history • Farming EBIT of 10.6 NOK pr. kg that is an improvement of 10.3 NOK pr. kg compared to last years 3rd quarter • Excellent smolt quality that gives a strong start for produ
Slide 4: Agenda
1 Highlights for the period 2 Operational performance & Group financials 3 Building blocks 4 Markets 5 Growth projects 6 Outlook and summary
Slide 5: Operational performance
Operational performance • EBIT 27 MNOK in the quarter and up by 12 MNOK from the previous quarter • Operational EBIT pr. kg up by 0.89 NOK pr. kg, a 9.2 % increase from Q2 21 • Costs are at relatively stable levels and slightly decreased from Q2 21 Farming Operational EBIT development YoY • Operatio
Slide 6: Operational performance
Operational performance Production costs pr. kg (NOK) Harvesting & wellboat costs • Harvested 2,925 tonnes, 138 tonnes more than in Q3 20 Production costs 51,3 • Production cost pr. kg in Q3 21 down by 0.6 NOK from Q2 21 49,1 44,2 45,1 44,5 42,7 • Production costs decreased mostly due to good growth
Slide 7: Profit and loss
Profit and loss • Operating revenues of 161 MNOK Key figures from P/L • Operational EBIT of 26.9 MNOK • Harvested volume of 2,925 tonnes (YoY 5 % increase) KEY FIGURES Q3 Q3 YTD YTD • Negative fair value adjustment of 24,2 MNOK due to (NOK '000) 2021 2020 2021 2020 changes in the harvesting schedule
Slide 8: Financial position
Financial position Key figures from Balance sheet KEY FIGURES (NOK '000) 30.9.2021 30.6.2021 30.9.2020 31.12.2020 Intangible assets 49.340 48.243 31.914 34.297 • Investments in sea farming equipment; cages and nets in Property, plant and equipment 605.124 605.706 545.257 559.988 Non-current financia
Slide 9: NIBD development and financial covenants
NIBD development and financial covenants Net interest bearing debt NET INTEREST BEARING DEBT (NOK '000) 30.9.2021 30.6.2021 31.3.2021 NIBD development Reported long term interest bearing debt 201.720 221.242 214.847 MNOK Reported short term interest bearing debt 36.621 40.125 244.462 Interest bearin
Slide 10: CAPEX
CAPEX Ongoing investments Planned capital expenditure going forward • Expansion of smolt capacity Property, plant and equipment Intangible assets • Farming equipment MNOK 94 • Branding initiatives • Biomass build-up • Increase harvesting capacity 15 82 81 78 Q1 - Q3 21 Q4 21 E 10
Slide 11: Existing Credit facilities from bank
Existing Credit facilities from bank • Existing loan agreement components are as follows: • 300 MNOK revolving facility for Biomass • 321 MNOK long term loan • 30 MNOK overdraft facility • Additional facility approved by bank to be finalized in line with construction project needs and definitions: •
Slide 12: Agenda
Agenda 1 Highlights for the period 2 Operational performance & Group financials 3 Building blocks 4 Markets 5 Growth projects 6 Outlook and summary
Slide 13: The building blocks of Arctic Fish
The building blocks of Arctic Fish Excellence in Sea A robust and strong farming and Smolt sustainability profile production Growing markets and Attractive licenses and strategic marketing production potential vision 13
Slide 14: Excellence in Sea Farming and Smolt production
Excellence in Sea farming and Smolt Excellence in Sea Farming and Smolt production production Smolt production Sea Farming • Produced 3,4 million smolt at and average • Growth as expected with good FCR and weight of 152 gr. already good survival rates • Good quality smolt with high survival rate in
Slide 15: A robust and strong sustainability profile
A robust and strong A robust and strong sustainability profile sustainability profile First of its kind hi-tech smolt facility with 100% green energy ESG focus All Icelandic attributes • All sites ASC certified preserved; low sea temperature and density • Reducing CO2 emissions with: • Prioritizing
Slide 16: Licenses enabling growth and production potential
Attractive licenses and Licenses enabling growth and production potential production potential Arctic Fish has pending applications in the final stages New 4,000 tonnes (MAB) license in Arnarfjörður for additional 4.8kt MAB in Ísafjarðardjúp. already advertised, a new license in a fjord and at a sit
Slide 17: Growing markets and strategic marketing vision
Growing markets and strategic marketing Growing markets and strategic marketing vision vision Markets are growing and so are we! • Since 2019 we have more than tripled our annual sales • 2021 the highest volumes traded in the history of the company, already 13 % more volume than for FY 2020 • The fi
Slide 18: Agenda
Agenda 1 Highlights for the period 2 Operational performance & Group financials 3 Building blocks 4 Markets 5 Growth projects 6 Outlook and summary
Slide 19: Market outlook
Market outlook Q2 2021 LAST QUARTER 54,72 • Q3 price achievement increased by 10.56 NOK pr. kg, or by 23.7 % YoY Q32021 Q3 2021 55,06 • Price achievement increased by 0.3 NOK pr. kg QoQ • Good timing of harvesting and big size of fish Q3 2020 44,50 contributed positively to the good price LAST YEAR
Slide 20: Global harvest volumes – expectations Q4 2021
Global harvest volumes – expectations Q4 2021 -3 % YoY Global supply estimates 1.000 Tonnes • Expected 3 % YoY decrease for Q4 2021 777 754 • Global supply (harvest volumes) is expected to decrease in Q4 21 compared to last year, with the world supply amounting to 754 thousand tonnes • The global su
Slide 21: Agenda
Agenda 1 Highlights for the period 2 Operational performance & Group financials 3 Building blocks 4 Markets 5 Growth projects 6 Outlook and summary
Slide 22: Ongoing Growth Projects
Ongoing Growth Projects • The hatchery has a proven record of smolt production, with roughly 12 million smolt having been produced at the hatchery since 2017 1 • With the planned expansion, the smolt Increased smolt Project started, capacity capacity will be ~1,000 tones ~ 5 million smolt at ~200 gr
Slide 23: Smolt expansion plan
Smolt expansion plan Commentary Expected tank volume increase from 6,000 m3 to 13,500m3 • Two-step plan to increase tank volume with 7,500m3 and increase smolt capacity to 5 million smolt Tank volume, thousand m3 13,52 • It is expected that the expansion will be finished first half of 2023 3,72 • To
Slide 24: Targeting ~24kt harvest volume in 2025
Targeting ~24kt harvest volume in 2025 Smolt release forecast Harvest volumes forecast Million smolts In thousand tonnes, HOG +72 % +2.1m +210 % +16.3kt 5,0 5,0 24,0 4,3 3,5 15,0 2,9 2,8 2,7 13,0 12,5 11,5 1,8 7,4 0,7 3,3 2017 2018 2019 2020 2021E 2022E 2023E 2024E 2025E 2019 2020 2021E 2022E 2023E
Slide 25: Agenda
Agenda 1 Highlights for the period 2 Operational performance & Group financials 3 Building blocks 4 Markets 5 Growth projects 6 Outlook and summary
Slide 26: Harvesting estimates 2021 and 2022
Harvesting estimates 2021 and 2022 • Harvest volumes in Q3 increased 5 % YoY 2020 Q3: 2,788 tonnes Actual harvested volume (tonnes) Expected harvested volume (tonnes) 2021 Q3: 2,924 tonnes 2020 YTD: 4,456 tonnes 2021 estimates 2021 YTD: 8,541 tonnes 7 • Total quantity to increase by 55 % YoY 2020: 7
Slide 27: Appendix: Group financials
Appendix: Group financials 27
Slide 28: Group income statement
Group income statement CONSOLIDATED INCOME STATEMENT Q3 Q3 YTD YTD FY (NOK '000) 2021 2020 2021 2020 2020 Operating revenues 161.000 127.659 429.642 245.158 375.667 Cost of goods sold 68.516 80.279 208.457 99.843 192.800 Salaries 17.253 10.297 42.624 30.093 42.025 Depreciation 11.961 9.842 33.562 28
Slide 29: Statement of the financial position
Statement of the financial position STATEMENT OF FINANCIAL POSITION (NOK '000) 30.9.2021 30.6.2021 30.9.2020 31.12.2020 Intangible assets 49.340 48.243 31.914 34.297 Property, plant and equipment 605.124 605.706 545.257 559.988 Non-current financial assets 629 629 623 626 Non-current assets 655.094
Slide 30: Statement of equity
Statement of equity STATEMENT OF EQUITY Equity allocated to parent company 30.9.2021 shareholders Treasury Non-controlling (NOK '000) Share capital shares Retained earnings Total interests Total equity Equity at 01.01.2021 689.476 0 -210.672 478.805 0 478.805 Total comprehensive income 0 0 117.484 1
Slide 31: Group cash flow statement
Group cash flow statement Statement of cash flow Q3 Q3 YTD YTD FY (NOK '000) 2021 2020 2021 2020 2020 Operational EBIT 26.904 -1.017 59.414 18.026 6.319 Adjusted for: Depreciation 11.961 9.842 33.562 28.358 40.113 Production tax -818 -312 -3.054 -312 -312 Change in inventories/biological assets -39.
Slide 32: Shareholders
Shareholders Ownership structure: The largest 20 shareholders as of 30.9.2021* Rank Name # of shares % ownership 1 NORWAY ROYAL SALMON ASA 16.346.824 51,28% 2 BREMESCO HOLDINGS LIMITED 9.104.582 28,56% 3 J.P. Morgan Bank Luxembourg S.A. 2.967.456 9,31% 4 Landsbankinn hf. 485.675 1,52% 5 VERDIPAPIRFO
Slide 33: pecticFish
pecticFish