Aker Biomarine Asa · OSL:AKBM
Aker Biomarine Asa — Q2 2022 Earnings Presentation
29 slides from Aker Biomarine Asa's earnings presentation, Jul 14, 2022
Slide 1: Second Quarter 2022
SECOND QUARTER 2022 Aker BioMarine ASA 14 July 2022
Slide 2: Second quarter 2022 highlights
Second quarter 2022 highlights ▪ Revenue on par with second quarter 2021, with increased EBITDA ▪ Net profit of USD 15 million (USD -3 in Q2 2021) ▪ Ingredients ▪ Qrill category with high revenues from increased volume and price ▪ Superba sales negatively impacted by macroeconomic events ▪ Brands ▪
Slide 3: Revenue and Adjusted EBITDA
Revenue and Adjusted EBITDA Revenue Adjusted EBITDA1 USD million USD million 74 76 73 21 62 19 57 15 8 7 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 3 1) Aker BioMarine evaluates the performance based on Adjusted EBITDA. This metric is defined as operating profit
Slide 4: Offshore operations
Offshore operations Annual production Quarterly production Antarctic Endurance phased in since 2019 Focus on lifting Q3 volumes Metric tons (MT) Metric tons per day ▪ Well-functioning fleet with steady 60,000 25,000 operations ▪ Krill availability and concentration improved 50,000 compared to previo
Slide 5: Ingredients
INGREDIENTS ANIMVWOI8 Yan (vy)
Slide 6: Highlights Qrill category
Highlights Qrill category ▪ Good sales performance in the quarter ▪ Revenues increased 18% compared with a year ago ▪ Secured FDA approval for Qrill Aqua in the United States, opening the US and Canadian market ▪ New study documenting Qrill growth performance in shrimp ▪ Price inflation in the globa
Slide 7: Aker BioMarine has lifted Qrill category prices
On the back of surging global prices on ingredients, Aker BioMarine has lifted Qrill category prices Qrill’s relative price competitiveness versus alternative ingredients is retained Salmon price Shrimp price Prices of important feed ingredients NOK per kg. USD per kg. Index: January 2021 = 1 120 18
Slide 8: Qrill Aqua still yields high returns for salmon and shrimp farmers
After price increase, Qrill Aqua still yields high returns for salmon and shrimp farmers, driving up demand Salmon farming economics with Qrill Aqua Shrimp farming economics with Qrill Aqua Illustrative example Illustrative example Increased Increased growth ~3x growth ~3x return on return on Lower
Slide 9: Highlights Superba
Highlights Superba Superba sales of USD 14.5 million in the quarter ▪ Lower than targeted mainly due to macroeconomic events like the COVID-shutdown in China and customer and retailers building down inventory to manage recession risks ▪ With these challenges we target +0 to 5% revenue growth in 2022
Slide 10: Strengthen the organization to facilitate for growth
1 Strengthen the organization to facilitate for growth Strengthening teams in all regions – focus on industry expertise with global & local marketing Q1-22 Q1-22 Simon Seward Q3-21 ▪ New leadership for Human Health & Charlie Ross New EVP & head of HH&N Thong Luu Nutrition (HH&N) New SVP Americas New
Slide 11: Renewed high-quality pipeline of new business prospects
2 Renewed high-quality pipeline of new business prospects Mid-2022 expected as turning point in Superba transition Large opportunity pipeline & existing customers; the cornerstone of our growth ambitions Expanding market Repositioning + new products & innovations Target CAGR +15-20% Rebuilt sales te
Slide 12: Still a large identified potential for Superba
2 Still a large identified potential for Superba1 1) Facsimile from the Capital Market Update, December 2021 12
Slide 13: New products for increased offering and growth
3 New products for increased offering and growth Introducing PL+ in Q4 2022: A phospholipid-based delivery platform for health ingredients, expanding the market for krill oil beyond omega-3 Expanding PL+ EPA & DHA to drive innovation in Absorption of CBD in plasma existing market omega-3 market Kril
Slide 14: Important portfolio addition with the launch of PL+
3 Important portfolio addition with the launch of PL+ Aker BioMarine’s addressable market for krill oil increases significantly Global omega-3 ingredient supplements market $800 million Global cannabidiol (CBD) market $1.6 billion Global curcumin Global coenzyme Q10 market market $200 million $600 m
Slide 15: Improved documentation and claims on Superba krill oil
4 Improved documentation and claims on Superba krill oil Strengthened marketing capabilities as proprietary science enables new growth opportunities A new study shows that daily krill oil supplementation have beneficial effects on muscle function and size in healthy, older people1 A new study will s
Slide 16: Highlights Brands segment
Highlights Brands segment ▪ Sales of USD 27 million, 16% lower than same period last year ▪ Lang Pharma Nutrition: lower sales driven by supply chain disruption in several of the large retailers ▪ Kori: increased sales compared to same quarter last year on the back of the improved retail roll-out ▪
Slide 17: Financials
FINANCIALS ANIMVWOI8 Yan (vy)
Slide 18: Financial development
Financial development Group figures Revenue Adj. EBITDA and margin Net interest-bearing debt USD million USD million and % USD million 76 30 35% 74 73 349 29% 30% 324 62 25 311 314 26% 305 57 24% 21 25% 20 19 20% 15 15 14% 15% 10 10% 8 7 10% 5 5% 0 0% Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q2 2021
Slide 19: Ingredients segment
Ingredients segment Revenue Adj. EBITDA and margin USD million USD million 80% 25 54 22 49 70% 46 60% 18 20 40 16 50% 15 30 40% 45% 40% 39% 10 30% 7 20% 5 23% 5 10% 0% 9% - Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 ▪ Qrill category: sales up 18% compared to Q2 2
Slide 20: Brands segment
Brands segment Revenue Adj. EBITDA and margin USD million USD million 18% 16.0 32 17% 30 31 16% 15% 14.0 14% 27 13% 12.0 25 12% 11% 10.0 10% 9% 8% 11% 8.0 7% 6.0 6% 5% 3.3 4.0 4% 3% 2% 0.6 0.3 2.0 1% 0% 0.0 -1% -2% 2% 1% -2.0 -3% -1.2 -4% -5% -2.5 -4.0 -6% -5% -6.0 -7% -8% -8% -9% -8.0 Q2 2021 Q3 20
Slide 21: Profit and loss statement
Profit and loss statement Q2 2022 Q2 2021 YTD 2022 YTD 2021 2021 USD million (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) Net sales Net sales 73.4 74.3 130.3 124.4 262.1 ▪ Revenue in Q2-22 on par with last year. Sales in the Ingredients segment Cost of goods sold (42.8) (44.6) (78.6) (7
Slide 22: Balance sheet statement
Balance sheet statement Q2 2022 Q2 2021 2021 USD million (Unaudited) (Unaudited) (Audited) Property, plant and equipment ASSETS ▪ Growth and maintenance CAPEX in the quarter, primarily in the Ingredients Property, plant and equipment 323.1 325.2 327.9 segment and includes investments on growth proje
Slide 23: Cash flow statement
Cash flow statement Q2 2022 Q2 2021 YTD 2022 YTD 2021 2021 USD million (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Cash flow from operations Net profit (loss) after tax 15.0 (3.2) 5.3 (13.1) (8.0) ▪ Improved cash flow from operations in Q2-22 compared to Q2-21. Net interest and guara
Slide 24: Full-year 2022 targets reiterated
Full-year 2022 targets reiterated Targeted Targeted revenue growth Adjusted EBITDA1 margin of +20%-25% of +20%-25% 1) Aker BioMarine evaluates the performance based on Adjusted EBITDA. This metric is defined as operating profit before depreciation, amortization, write-downs and impairments, and spec
Slide 25: Appendix
@) AKER BIOMARINE APPENDIX
Slide 26: 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 27: Revenue per product
Revenue per product Excluding eliminations between Ingredients and Brands 2.8 4.5 3.5 30.0 4.5 32.3 3.3 27.2 24.8 30.5 27.1 24.5 30.8 22.0 14.1 23.7 16.6 13.3 14.5 12.7 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Krill oil Qrill Aqua Brands Other* * Other includes Asta, Pet and QHP 27
Slide 28: Aker BioMarine has hedged ~90% of fuel price exposure through 2024
Aker BioMarine has hedged ~90% 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 29: Aker BioMarine
ey AKER BIOMARINE