Arctic Fish Holding As · OSL:AFISH
Arctic Fish Holding As — Q2 2022 Earnings Presentation
30 slides from Arctic Fish Holding As's earnings presentation, Aug 31, 2022
Slide 1: Arctic Fish Q2'22 Presentation
Arctic Fish Q2’22 Presentation 31st of August 2022
Slide 2: Disclaimer
Disclaimer Cautionary note regarding forward-looking statements This presentation is the managements summary of the 2nd quarter report, it includes forward-looking statements that reflect the Company's current views with respect to future events and financial and operational performance. These forwa
Slide 3: Agenda: Highlights for the period
1 Highlights for the period 2 Operational performance & Group financials 3 Key features 4 Growth projects 5 Outlook and summary
Slide 4: Highlights in Q2 2022
Highlights in Q2 2022 ▪ Farming Operational EBIT of 36.8 NOK pr. kg An improvement of 27.2 NOK pr. kg from Q2 2021 ▪ High salmon prices in market Price achievement amounted to 84.6 NOK pr. kg ▪ Harvesting quantities Harvested 1.029 tonnes in the quarter – a 44% decrease YoY ▪ Production costs of 47.
Slide 5: Operational KPI's
Operational KPI’s Harvested volumes Revenue Operational EBIT pr. Kg (Farming) In thousand tonnes, HOG MNOK NOK pr. kg 369,5 5,6 5,3 36,8 268,6 -7% 38% 23,6 1,8 99,8 87,0 9,7 1,0 7,0 239% 2021 H1 2022 H1 Q2'21 Q2'22 2021 H1 2022 H1 Q2'21 Q2'22 2021 H1 2022 H1 Q2'21 Q2'22 ▪ Arctic Fish has harvested 5
Slide 6: Agenda: Operational performance & Group financials
1 Highlights for the period 2 Operational performance & Group financials 3 Key features 4 Growth projects 5 Outlook and summary
Slide 7: Operational performance
Operational performance Operational EBIT pr. kg continues to develop Operational Farming EBIT of 36.8 NOK pr. kg has positively developed positively YoY due to the following factors High salmon prices in the quarter impact the operational Price achievement increased by 29.7 NOK pr. kg EBIT pr. kg fi
Slide 8: Stable and strong cost performance over time
Stable and strong cost performance over time Production cost development from 2021 and onwards NOK pr. kg (HOG) Harvesting, packing & Wellboat COGS 47,7 46,5 46,5 45,1 44,5 38,8 12,5 9,0 12,0 12,7 10,0 8,9 36,1 34,6 35,2 34,5 33,7 29,9 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 1 Biological performance 2 O
Slide 9: Profit and loss
Profit and loss ▪ Operating revenues of 87 MNOK Key figures from P/L ▪ Operational EBIT of 35.8 MNOK ▪ Harvested volume of 1,029 tonnes (YoY 44% decrease) KEY FIGURES Q2 Q2 YTD YTD ▪ Positive fair value adjustment of 36.9 MNOK due to (NOK '000) 2022 2021 2022 2021 increased forward prices Operating
Slide 10: Financial position
Financial position ▪ Total assets increased by 90.4 MNOK from the prior period (Q1’2022). ▪ Receivables decreased by 12.0 MNOK from the prior period (Q1’2022). ▪ Biological assets and other inventories increased by 98.8 MNOK from the prior period (Q1’2022). ▪ Property, plant, and equipment increased
Slide 11: NIBD development and financial covenants
NIBD development and financial covenants NIBD development (MNOK) Alternate performance measures (APM) Net interest bearing debt (NOK '000) 30.06.2022 31.03.2022 30.06.2021 Reported long-term interest-bearing debt 359.477 308.021 221.242 Reported short-term interest-bearing debt 40.406 37.914 40.125
Slide 12: CAPEX
CAPEX Ongoing investments Planned capital expenditure going forward ▪ We are committing to our growth plan with extensive Actual Capital Expenditures (MNOK) Planned Capital Expenditures (MNOK) investments in our Smolt Production capacity and in a 400 Harvesting facility. 371 ▪ Both investments are a
Slide 13: 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, 20 MNOK has been repaid reducing the availability under this part of the loan agreement ▪ 30 MNOK overdraft facility ▪ 150 MNOK smolt expansion
Slide 14: Agenda: Key features
Agenda 1 Highlights for the period 2 Operational performance & Group financials 3 Key features 4 Growth projects 5 Outlook and summary
Slide 15: A robust and strong sustainability profile
A robust and strong sustainability profile Certifications 100% First of its kind hi-tech smolt facility ✓ with 100% green energy1 All Icelandic attributes preserved; low All sites ASC certified sea temperature and density No antibiotics have ever been used on ▪ All fish sold and all sites in use hav
Slide 16: Licenses enabling growth and production potential
Licenses enabling growth and production potential Licenses and applications are well positioned for future growth with locations in different fjords Current license applications In thousand tonnes (MAB) 31.9 I Ísafjarðardjúp 4.8 Additional license for 4.800 tonnes 27.1 5.31 I ▪ Handed in an applicat
Slide 17: Markets and sales
Markets and sales ▪ The markets for salmon were substantially stronger in the quarter opposed to the previous year mostly due to Covid- 19 affecting 2021 prices. ▪ Despite the good market conditions the price achievement Price achievement development was not optimal as the volume harvested was at lo
Slide 18: Agenda: Growth projects
Agenda 1 Highlights for the period 2 Operational performance & Group financials 3 Key features 4 Growth projects 5 Outlook and summary
Slide 19: Smolt expansion in Tálknafjörður
Smolt expansion in Tálknafjörður Commentary ▪ Two-step plan to increase tank volume with 7,500m3 and increase smolt capacity to 5 million smolt. ▪ It is expected that the expansion will be completed in the end of Q2’2023. ▪ Total cost is estimated to 260 MNOK. ▪ Total investment will strengthen the
Slide 20: Harvesting facility in Bolungarvik
Harvesting facility in Bolungarvik Commentary Design ▪ Contracts signed for all major components of the new harvesting plant. Groundwork ongoing and production of equipment started, and ready in Q2 2023. ▪ The facility will fulfil Arctic Fish needs with additional possibilities to service others as
Slide 21: Agenda: Outlook and summary
Agenda 1 Highlights for the period 2 Operational performance & Group financials 3 Key features 4 Growth projects 5 Outlook and summary
Slide 22: Harvesting estimates
Harvesting estimates Harvesting volumes and forecast In thousand tonnes, HOG ▪ Arctic Fish continues developing according to its -8% growth plan but harvesting quantities in 2022 take a 11,5 10,6 substantial hit due to the mortality incident which occurred in Q1’2022. Harvesting volumes in 2022 are
Slide 23: Appendix: Group financials
Appendix: Group financials pecticFish
Slide 24: Group income statement
Group income statement CONSOLIDATED INCOME STATEMENT Q2 Q2 YTD YTD FY (NOK '000) 2022 2021 2022 2021 2021 Operating revenues 87.001 99.798 369.526 268.641 595.895 Cost of goods sold -15.794 35.429 158.897 139.941 299.189 Salaries 16.432 13.352 33.595 25.371 54.151 Depreciation 13.355 11.211 25.849 2
Slide 25: Statement of the financial position
Statement of the financial position STATEMENT OF FINANCIAL POSITION (NOK '000) 30.6.2022 31.3.2022 30.6.2021 31.12.2021 Deferred tax assets 13.170 22.550 0 19.479 Intangible assets 54.257 53.136 48.243 52.119 Property, plant and equipment 823.518 741.014 605.706 657.161 Right of use assets 4.098 4.2
Slide 26: Statement of equity
Statement of equity STATEMENT OF EQUITY Equity allocated to parent company 30.6.2022 shareholders (NOK '000) Share capital Share premium Accumulated earnings Total equity Equity at 01.01.2022 31.877 1.001.740 -58.109 975.508 Total comprehensive income 0 0 25.234 25.234 Transactions with shareholders
Slide 27: Group cash flow statement
Group cash flow statement STATEMENT OF CASH FLOW Q2 Q2 YTD YTD FY (NOK '000) 2022 2021 2022 2021 2021 Operational EBIT 35.833 14.710 -9.155 32.510 86.944 Adjusted for: Depreciation 13.355 11.211 25.849 21.601 46.501 Production tax -897 -602 -4.432 -2.236 -3.843 Change in inventories/biological asset
Slide 28: Appendix: Ownership structure - Shareholders
Appendix: Ownership structure - Shareholders
Slide 29: Shareholders
Shareholders Ownership structure: The largest 20 shareholders as of 30.6.2022* Rank Name # of shares % ownership 1 NORWAY ROYAL SALMON ASA 16.346.824 51,28% 2 Sildarvinnslan hf ** 10.899.684 34,19% 2 J.P. Morgan Bank Luxembourg S.A. ** 1.301.149 4,08% 3 Landsbankinn hf. 479.651 1,50% 4 KVERVA FINANS
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