Atlantic Sapphire Asa · OSL:ASA
Atlantic Sapphire Asa — Investor Presentation (August 2024)
25 slides from Atlantic Sapphire Asa's investor presentation, Aug 20, 2024
Slide 1: Company Presentation
Company Presentation August 2024
Slide 2: Important Information and Disclaimer (1/2)
IMPORTANT INFORMATION AND DISCLAIMER (1/2) IMPORTANT INFORMATION THIS DOCUMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, ITS TERRITORIES, DEPENDENCIES OR POSSESSIONS, INCLUDING ANY STATE OF THE UNITE
Slide 3: Important Information and Disclaimer (2/2)
IMPORTANT INFORMATION AND DISCLAIMER (2/2) The distribution of this Company Presentation by the Company in certain jurisdictions is restricted by law. Accordingly, this Company Presentation may not be distributed or published in any jurisdiction except under circumstances that will result in complia
Slide 4: Summary of company highlights
Summary of company highlights 01 02 03 04 Positioned to be a key Production stabilized, to Economies of scale to be New management team salmon producer in the be further optimized and unlocked with added with strong focus on world’s largest market scaled volume building value • All permits and licen
Slide 5: Stable performance on key operational parameters since October 2023
Stable performance on key operational parameters since October 2023 Monthly mortality rates (% of fish) Monthly average water temperatures (Co) 9% Changing of protocols 23.0 Changing of protocols 17.5 8% 17.0 7% 16.5 16.0 6% 15.5 5% 15.0 4% 14.5 14.0 3% 13.5 2% 13.0 1% 0.5 0% 0.0 Aug-23 Oct-23 Aug-2
Slide 6: Operational update
01 Operational update ATLANTIC SAPPHIRE.
Slide 7: Stable operational performance since 2023 infrastructure improvements
Stable operational performance since 2023 infrastructure improvements, now a solid foundation which is to be optimized towards profitability 01 02 03 04 Strong biomass growth across all Feeding at good levels but room to Sales of high-quality salmon to Recognizing past challenges & batches after new
Slide 8: New management team in place with extensive salmon farming experience
New management team in place with extensive salmon farming experience New management with +50 years of combined salmon farming experience Board members with extensive industry experience Pedro Courard | CEO Kenneth J. Andersen Marta Rojo Alonso • +25 years of experience from the salmon farming indus
Slide 9: Setting a clear course for the company to achieve operational excellence
Setting a clear course for the company to achieve operational excellence Today Stage 4: Operational excellence ✓ Longer-term target ✓ Oct’23 – Jun’24 Stage 3: Getting ahead of the curve 2017 – Sep’23 Stage 2: Industrialization, Near-term focus Fully operational Phase 1 + Phase 2 Stage 1: Commissioni
Slide 10: Stabilized biological performance and identified bottlenecks in the operation
Stabilized biological performance and identified bottlenecks in the operation to be resolved before full capacity can be utilized Phase 1 performance has been stabilized Fine tuning of the facility, achieving operational excellence • Since the hiring of Mario Palma as Chief Operating Officer in Octo
Slide 11: Tangible capex plan to de-bottleneck and optimize Phase 1
Tangible capex plan to de-bottleneck and optimize phase 1 Operational efficiency and production improvement through bottleneck removal Commentary Overview of capex items (USDm) • Management identified several de-bottlenecking and 11 ~35 optimizing initiatives requiring some ~USD 25m of capex investm
Slide 12: Feeding restrictions to be unlocked through de-bottlenecking
Feeding restrictions to be unlocked through de-bottlenecking Key comments Quarterly feeding rate (kg) Changing of protocols • Monthly feeding levels have increased since October 2023 as a result of the investments made into de-bottlenecking and optimizing feeding activities • The feeding capacity of
Slide 13: Strong focus on building scale with the addition of Phase 2
Strong focus on building scale with the addition of Phase 2 Phase 1+2 Phase 1 328 675 265 Design capacity: 25,000 tons1 Design capacity: 9,500 tons1 Substantial asset 52 backing (USDm) Market cap. Net asset value Total asset value Invested equity 1 (H1 2024) (H1 2024) Phase 1 operational and ✓ ✓ ✓ (
Slide 14: Stable performance on key operational parameters since October 2023
Stable performance on key operational parameters since October 2023 Monthly mortality rates (% of fish) Monthly average water temperatures (Co) 9% Changing of protocols 23.0 Changing of protocols 8% 17.5 17.0 7% 16.5 6% 16.0 15.5 5% 15.0 4% 14.5 3% 14.0 13.5 2% 13.0 1% 0% 0.0 Oct-23 Oct-23 Feb-23 Ma
Slide 15: Highly encouraging biomass development
Highly encouraging biomass development Net biomass gain (RLW tons) Harvest volume (RLW tons, bars) and avg. harvest weights (kg. RLW, line) Capacity adjustments Decent Harvesting due to system weights and Early harvest due out mature downtime and improved to planned fish at low low Transition price
Slide 16: Financial update
02 Financial update ATLANTIC SAPPHIRE.
Slide 17: Current fundraise estimated to be sufficient to fund Company towards positive EBITDA
Current fundraise estimated to be sufficient to fund Company towards achieving positive EBITDA for Phase 1 Sources and uses until estimated EBITDA positive for Phase 1 Amendment of debt facility Sources USDm USDm Uses Facility Status per 30.06.24 USDm Expiry Minimum liquidity covenant reduction 5 11
Slide 18: Atlantic Sapphire's advantageous location unlocks premium pricing
Atlantic Sapphire’s advantageous location unlocks premium pricing Attractive price levels for premium fish Reaching majority premium pricing from Q4 2024 Approximate long-term sales prices (USD / kg. HOG) Price achievement (USD / kg. HOG) & share of Premium quality fish (% of total fish harvested) 1
Slide 19: Key focus of new management to achieve profitability
Key focus of new management to achieve profitability Bridge-to-profitability for optimized Phase 1 and for fully operational Phase 1 + Phase 2 EBITDA, USD/kg (HOG) 2.5-3.0 USD ~5/kg Potential for further improvement, mainly by further decreasing FCR (however, this requires additional capex beyond th
Slide 20: Competitive advantages to be fully utilized by new management team
Competitive advantages to be fully utilized by new management team Abundant access to Discharge capacity in All production permits Highly competent and Local producer in world’s Land plot supports water place secured experienced employees largest salmon market further scaling • ‘Endless’ access thro
Slide 21: H1 2024 key highlights and figures
H1 2024 key highlights and figures Overview of key figures Commentary • Approximately 2,750t RLW gross biomass gain and total harvest volume of 2,395t HOG for H1 2024 • Consistent price achievement on premium fish • Overall cost per kg of biomass produced decreased compared to the same period in 202
Slide 22: H1 2024 financial statements (1/3)
H1 2024 financial statements (1/3) Consolidated statement of operations Commentary Consolidated Statement of Operations • Harvest volume: 2,395t HOG in H1 2024 (870t in H1 2023) • Cost of Goods Sold: • Y/Y increase of primarily driven by increased harvest volume and realization of COGS from such bat
Slide 23: H1 2024 financial statements (2/3)
H1 2024 financial statements (2/3) Consolidated statement of financial position Commentary • Operating Cash: USD 10.0m • Restricted Deposits1: USD 15.2m • CAPEX: USD 6.0m • Largely tied to US Phase 2 construction with USD 113.3m invested as of 30 June 2024, of which approximately: • USD 106.2m are i
Slide 24: H1 2024 financial statements (3/3)
H1 2024 financial statements (3/3) H1 2024 key financials by segment summary All focus is on the US, considering to divest the remaining Danish assets * EBITDA adjusted for fair value adjustment on biological assets and impairment of non-current assets 24
Slide 25: Atlantic Sapphire
ATLANTIC SAPPHIRE.
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