Aker Biomarine Asa · OSL:AKBM
Aker Biomarine Asa — Q2 2023 Earnings Presentation
28 slides from Aker Biomarine Asa's earnings presentation, Jul 14, 2023
Slide 1: Second Quarter 2023
SECOND QUARTER 2023 Aker BioMarine ASA 14 July 2023
Slide 2: Second quarter 2023 highlights
Second quarter 2023 highlights ▪ Continued year-over-year revenue growth for the Group ▪ Adjusted EBITDA of USD 21.5 million (USD 21.4 million) ▪ Good harvesting operations, tracking on par with last year ▪ Qrill Aqua and Superba delivers good volume growth, margins impacted by onboarding of new cli
Slide 3: Quarterly revenue and Adjusted EBITDA
Quarterly revenue and Adjusted EBITDA Revenue Adjusted EBITDA1 USD million USD million 89 21 21 21 79 73 19 68 69 6 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2023 3 1) Aker BioMarine evaluates the performance based on Adjusted EBITDA. This metric is defined as operat
Slide 4: Offshore operations
Offshore operations 2023 season tracking on par with 2022 Annual production Quarterly production Metric tons (MT) Metric tons per quarter ▪ Q2 production of 17,846 MT, up 9% YoY 25 000 52 000 52 400 ▪ Good start to Q3 harvesting with YTD production per 14 July at 39,600 MT, up 2% 20 000 45 000 YoY 4
Slide 5: Highlights Qrill category
Highlights Qrill category LTM Qrill category revenues up 22% YoY Annual revenue, USD million ▪ Qrill Aqua with 30% higher revenues YoY Thousands ▪ Higher volumes main driver 120 ▪ Underlying prices up 9% YoY, excluding the onboarding of a large account ▪ Signed contract for 5,000mt with new major 90
Slide 6: Highlights Superba
Highlights Superba Superba revenue up 42% YoY USD million 25 ▪ Superba revenues of USD 20.6 million, up 42% YoY ▪ Healthy development in Asia, Europe and Australia ▪ South Korea: preparing for sales launch with local 20 partner ▪ Good cooperation – local partner to start TV Shopping campaigns and ma
Slide 7: Sharp increase in prices for fish meal and oil
Sharp increase in prices for fish meal and oil Sharply higher fish meal and oil prices Impact on Aker BioMarine products ▪ Supply crunch since 2022 Aker BioMarine products ▪ 2023 1st anchovy season in Peru cancelled, likely to exacerbate the situation Not a direct substitute, but Fish oil and fish m
Slide 8: Clear strategic approach to changes in market dynamics
Clear strategic approach to changes in market dynamics Krill meal Krill oil ▪ Strategy to consistently increase prices ▪ Focus on growing volume at stable prices ▪ Renegotiating prices every 6 months ▪ In retail stores, krill oil has historically been selling at ~4x the price of fish oil ▪ Planned h
Slide 9: Protein factory in Ski, Norway completed on time and budget
Protein factory in Ski, Norway completed on time and budget ▪ Produced first protein test batch end of June ▪ Current design capacity is 112 MT/year, further debottlenecking could increase the output to 240 MT/year ▪ Customer dialogues ongoing - product currently undergoing formulation studies to su
Slide 10: Highlights Brands
Highlights Brands Lang Epion ▪ Revenues up +11% YoY, driven by ▪ Revenues declined by 6% YoY, impacted by less volume and price increase promotional activity by retailers implemented last year ▪ Out of store consumer sales (POS) increased by 28% ▪ Main growth driver was kid’s gummies, YoY1 launched
Slide 11: New financial reporting structure
New financial reporting structure 11
Slide 12: Today Aker Biomarine is structured in Ingredients and Brands
Today Aker Biomarine is structured in Ingredients and Brands which has enabled scaling the business to reach key milestones FINANCIAL REPORTING STRUCTURE TODAY KEY MILESTONES Ingredients Brands Superba / Lang Pharma Capital investment in 4 vessels driving Lysoveta cost efficient harvesting Qrill Epi
Slide 13: Group will be restructured to increase transparency, focus and flexibility
To drive the next phase of development, the Group will be restructured to increase transparency, focus and flexibility NEW FINANCIAL REPORTING STRUCTURE RATIONALE FOR CHANGE Feed Human Consumer Emerging Ingredients Health Health Businesses Ingredients Products Increased Shareholder Transparency • Ea
Slide 14: Overview of Aker BioMarine's new reporting segments
Overview of Aker BioMarine’s new reporting segments Feed Ingredients Human Health Ingredients Consumer Health Products Emerging Businesses ▪ World leading krill harvester in the ▪ Leading manufacturer and supplier ▪ Exclusive supplier of innovative ▪ Venture phase business areas under Antarctica of
Slide 15: Financials
FINANCIALS ANIMVWOI8 Yan (vy)
Slide 16: Financial development
Financial development Group figures Revenue Adj. EBITDA and margin Net interest-bearing debt USD million USD million and % USD million 30 35% 89 399 29% 373 28% 30% 79 25 360 359 26% 24% 349 73 21 68 69 21 25% 21 20 19 20% 15 15% 10 9% 10% 6 5 5% 0 0% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 2022
Slide 17: Ingredients segment
Ingredients segment Revenue Adj. EBITDA and margin USD million USD million 25 62 60% 22 21 53 20 49 50% 44 16 42 40% 15 34% 15 45% 30% 33% 31% 10 20% 4 5 10% 9% 0% - Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 ▪ Qrill category: revenues up 21% compared to Q2-22, d
Slide 18: Offshore cost impacted by regional fuel prices spread
Offshore cost impacted by regional fuel prices spread Fuel price spread development Montevideo vs Gasoil 0.1% FOB Rotterdam Barges (USD/Mt) ▪ In mid-2020 Aker BioMarine locked in 100% of estimated 1 800 2021-2024 fuel demand 1 600 ▪ Marine Gas Oil is largest cost category for Aker BioMarine 1 400 (a
Slide 19: 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 30 30 13% 12% 27 27 11% 10,0 10% 9% 7% 8,0 8% 7% 5% 6,0 6% 5% 4,0 4% 2,2 1% 3% 1% 1,3 0% 2,0 2% 1% 0,3 0,2 0% 0,0 -1% -2% -0,0 -2,0 -3% -4% -4,0 -5% -6% -7% -6,0 -8% -9% -8,0 Q2 2022 Q3 2022 Q
Slide 20: Profit and loss statement
Profit and loss statement USD million Q2 2023 Q2 2022 2022 Net sales (Unaudited) (Unaudited) (Audited) ▪ Revenue in the quarter was USD 88.6m, up 15.2m from Q2-22 driven by sales growth especially in the Ingredient segments. Net sales from Net sales 88.6 73.4 277.2 Ingredients segment up USD 13m dri
Slide 21: Balance sheet statement
Balance sheet statement USD million Q2 2023 Q2 2022 2022 (Unaudited) (Unaudited) (Audited) Property, plant and equipment ▪ Depreciation of USD 8.1m in the quarter. Additions to PPE mainly include ASSETS investments into Understory (Protein plant), USV, development activities Property, plant and equi
Slide 22: Cash flow statement
Cash flow statement USD million Q2 2023 Q2 2022 2022 (Unaudited) (Unaudited) (Unaudited) Net profit (loss) after tax -2.4 15.0 10.0 Cash flow from operations ▪ Lower cash flow from operations in Q2-23 compared to Q2-22 driven by net Tax expenses -1.6 0.8 2.2 loss. Net interest and guarantee expenses
Slide 23: Outlook third quarter 2023
Outlook third quarter 2023 Operations Qrill Aqua Superba Brands ▪ Harvesting YTD is on ▪ Expect revenues for the ▪ Expect revenues for the ▪ Expect revenues for the track to deliver on a third quarter to be third quarter to be third quarter to be normalized harvesting above the same quarter above sa
Slide 24: Appendix
@) AKER BIOMARINE APPENDIX
Slide 25: 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 26: Revenue per product
Revenue per product Excluding eliminations between Ingredients and Brands 1,3 3,2 3,7 2,7 29,6 3,0 29,9 27,2 27,3 33,5 40,1 32,9 31,1 20,6 27,5 16,9 18,3 20,7 14,4 13,8 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Krill oil Qrill Aqua Brands Other Qrill category * * Other includes Qrill Pet, Asta and QHP
Slide 27: 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 28: Aker BioMarine
ey AKER BIOMARINE