Aker Biomarine Asa · OSL:AKBM
Aker Biomarine Asa — Q1 2021 Earnings Presentation
31 slides from Aker Biomarine Asa's earnings presentation, April 2021
Slide 1: Q1 2021 Presentation
Q1PRESENTATION Q4 PRESENTATION 16 29FEBRUARY APRIL 20212021 Q3 2020 PRESENTATION Matts Johansen, CEO Katrine Klaveness, CFO 30 OCTOBER 2020 1
Slide 2: Important Notice
Important Notice 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 or a
Slide 3: First quarter 2021 highlights
First quarter 2021 highlights Solid operational performance Good offshore production with alle three vessels performing well and all-time-high February Antarctic Provider delivered and commenced operations early April Onshore production in Houston continued to improve efficiency and costs
Slide 4: Revenue and Adjusted EBITDA
Revenue and Adjusted EBITDA REVENUE ADJUSTED EBITDA1 USDm USDm 76 71 72 70 27 21 50 18 13 7 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Decline from Q1 2020 mainly driven by lower Superba sales to South Korea and Lang Limited harvesting in Q4 2020 led to a hig
Slide 5: Ingredients segment - Operations
Ingredients segment - Operations Offshore Onshore Bytt Production of 19,500 MT in Q1 2021, up 12% and 770% compared with Q1 Continued high operational performance at Houston factory 2020 and Q4 2020, respectively Despite a two week shutdown during the winter storm, production was Well functi
Slide 6: Ingredients segment - Sales
Ingredients segment - Sales Superba QRILL Superba sales dropped 32% y/y in the quarter, mainly as a result of high Sales decrease in the Qrill category by 17% y/y in the quarter South Korea sales in Q1 2020 QHP had the largest shortfall due to lower product availability Sales in South Korea
Slide 7: Brands segment
Brands segment Lang Epion Sales composition1 Sales Q1 2020 43% 57% Ingredients Brands Lang sales according to plan for Q1 2021, although Kori continues to grow sales with new and existing retailers significantly lower than Q1 2020 launching the product in new stores and online Q1 2020 was boos
Slide 8: Kori brand in the US – Higher sales and limited marketing spend
Kori brand in the US – Higher sales and limited marketing spend UNITS SOLD AND MARKETING COST PROMISING MARKETING RESULTS Return on media spend four times higher in Q1 than during 2020 Digital media activity kept Kori searches on Google higher compared to weeks last year without TV marketing T
Slide 9: Targeting decarbonization and improved human and planetary health
Targeting decarbonization and improved human and planetary health NUTRITION, 2030 GOALS HEALTH & ACTION ON 2030 GOALS WELLBEING CLIMATE 1 billion extra servings CHANGE 50% reduction annually of carbon intensity Through ingredients that make Net zero by 2050 RESPONSIBLE aquaculture production more SU
Slide 10: LYSOVETA – progress with first pharma collaboration and scaling up production in Houston
LYSOVETA – progress with first pharma collaboration and scaling up production in Houston PHARMA COLLARBORATION Aker BioMarine signed first pharmaceutical collaboration for development of therapies based on LYSOVETA in January 2021 Our partner is in process of raising up to USD 50 million to cove
Slide 11: INVI™ Protein submitted regulatory application to the EU market in April
INVI™ Protein submitted regulatory application to the EU market in April INVI PROJECT PROGRESSING AS PLANNED Submitted novel food application for regulatory approval EU in April Submitted GRAS application for regulatory approval in the US in February High customer demand after the brand launch
Slide 12: New product launches with corresponding margin potential
New product launches with corresponding margin potential Wide ranging innovation competencies… …targeting significant margin uplift potential New business model ™ Existing business Model Fundamental research Existing technical or New technical or knowledge competences knowledge competences Aqua feed
Slide 13: AION offers Circularity as a Service (CaaS) to the global recycled plastic market
AION offers Circularity as a Service (CaaS) to the global recycled plastic market Service providers Integrated supply chain management Waste sources E2E ESG transparency reporting and traceability Logistics CaaS Customers (both upstream and downstream) Recovery players Leasing Branding and services
Slide 14: Rapid expansion to drive revenue and earnings growth
Rapid expansion to drive revenue and earnings growth 2021 2022-2023 2023-2025 2030 Build organization and gain Scale and build supplier Europe and North America commercial traction network scale-up Gain global scale Overall ambition Prove commercial viability (3-6 Test and tune scalability of
Slide 15: AION is well positioned to execute on our ambitious plan
AION is well positioned to execute on our ambitious plan by on- boarding a strong team and partnering with innovative customers Key activities in Q1 Focus areas and outlook Customer partnership with McDonald’s Norway extended Continued recruitment process. Targeting to reach 15-20 to McDonald’s
Slide 16: Finance
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Slide 17: Financial development in Q1 2021 versus Q1 2020
Financial development in Q1 2021 versus Q1 2020 REVENUE ADJUSTED EBITDA ADJUSTED EBITDA MARGIN NET INTEREST-BEARING DEBT USDm USDm % USDm -29% -46% 14% -27% 71 13 18% 406 14% 293 50 7 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 17
Slide 18: Ingredients segment performance
Ingredients segment performance REVENUE ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN USDm USDm 56 80% 23 ,25 51 50 70% ,20 42 60% 17 16 50% ,15 30 40% 45% ,10 30% 8 7 32% 31% 20% 24% ,5 10% 19% 0% - Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Lower Superba and Qri
Slide 19: Production volumes on a rolling twelve-month basis
Production volumes on a rolling twelve-month basis ONSHORE KRILL OIL EXTRACTION (LTM) Above doubling of production last 12 months MT Production shortfall of about 40MT due to a controlled two-week factory closure during winter storm in February The shortfall is expected to be regained during 1
Slide 20: Brands segment performance
Brands segment performance REVENUE ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN USDm USDm 33 30% 12 28 25% 10 25 23 20% 8 20 16% 15% 15% 13% 12% 6 5 10% 4 4 4 2 5% 2% 2 0% 0,5 - Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Lang performance according to plan in Q1 2
Slide 21: Profit and loss in Q1 2021 and full year 2020
Profit and loss in Q1 2021 and full year 2020 Q1 2020 Q1 2021 2020 USD thousands Net sales: (Unaudited) (Unaudited) (Audited) • Net sales down in Q1-21 compared to Q1-20, volume driven reduction in both segments. • Net sales in Brands segment behind last year following an exceptionally Net sales 70
Slide 22: Balance sheet at end of Q1 2021 and year end 2020
Balance sheet at end of Q1 2021 and year end 2020 Q1-2020 Q1-2021 2020 USD thousands (Unaudited) (Unaudited) (Audited) Inventories ASSETS Build-up of inventory during the quarter driven by strong offshore Inventories 95 937 129 641 114 559 production combined with lower Qrill Aqua sales due to del
Slide 23: Cash flow in Q1 2021 and full year 2020
Cash flow in Q1 2021 and full year 2020 Q1 2020 Q1 2021 2020 USD thousands Cash flow from operations (Unaudited) (Unaudited) (Unaudited) Change in working capital primarily include build-up of inventories offset by release of trade and other receivables amounting (following a high Profit (loss) af
Slide 24: Outlook
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Slide 25: Outlook
Outlook OPERATIONS Offshore production still expected at 60,000-70,000 MT for the year All vessels performing operationally and technically as expected Strong performance at Houston factory continues Expected full catch up of lost volumes from the winter storm shutdown Capacity program alr
Slide 26: Operating leverage and unit cost
Operating leverage and unit cost OFFSHORE VOLUME & UNIT COST ONSHORE VOLUME & UNIT COST USD/MT* USD/kg* MT MT MT 2015 2016 2017 2018 2019 2020 2021E 2015 2016 2017 2018 2019 2020 2021E 26 * Unit costs excludes asset depreciation costs
Slide 27: Appendix
Q AKER BIOMARINE APPENDIX
Slide 28: Revenue development per product
Revenue development per product REVENUE PER PRODUCT (EXCLUDING ELIMINATIONS BETWEEEN INGREDIENTS AND BRANDS1)) USDm 74.2 4.3 53.5 32.7 3.1 23.2 10.8 9.5 26.4 17.7 Q1 2020 Q1 2021 Krill oil Qrill Aqua Brands Other2 1) Elimination between Lang and Epion is included for Q1 2021 28 2) Other includes Ast
Slide 29: EBITDA adjustments
EBITDA adjustments EBITDA ADJUSTEMENTS EBITDA ADJUSTEMENTS Q1 2021 EBITDA adjustments Q1 2020 EBITDA adjustments USDm 6.8 USDm 12.7 11.7 1.0 5.9 0.9 EBITDA Q4 Transaction related cost Adjusted EBITDA EBITDA Q4 Juvel operating expenses Adjusted EBITDA Transaction related costs: Mainly a continuatio
Slide 30: P&L reconciliation
P&L reconciliation USDm Q1 2020 Q1 2021 Ingredients 41.5 30.3 Brands 32.7 23.2 Eliminations (3.5) (3.4) Reported revenues 70.7 50.1 EBITDA reconciliation USDm Q1 2020 Q1 2021 Ingredients 6.8 6.4 Brands 4.8 0.5 Eliminations (0) (1.0) Reported EBITDA 11.7 5.9 Adjustments 1.0 0.9 Adjusted EBITDA 12.7 6
Slide 31: Aker BioMarine has hedged 100% of fuel demand for 2021-2024
Aker BioMarine has hedged 100% of fuel demand for 2021-2024 PREDICTABILITY IN LARGEST COST DRIVER CALL OPTIONS IN THE MONEY AS PER END Q1’21 800 In mid 2020 Aker BioMarine locked in 100% of estimated 700 2021-2024 fuel demand 600 500 Call strike + The hedging strategy was motivated by low fuel p