Arctic Fish Holding As · OSL:AFISH
Arctic Fish Holding As — Q2 2021 Earnings Presentation
31 slides from Arctic Fish Holding As's earnings presentation, Aug 23, 2021
Slide 1: Arctic Fish Q2 report 2021
Arctic Fish Q2 report 2021 23rd August 2021
Slide 2: Agenda
Agenda 1 Highlights for the period 2 Operational performance 3 Group financials 4 Markets 5 Growth projects 6 Outlook and summary
Slide 3: Highlights in Q2 2021
Highlights in Q2 2021 • Operations are on track, and the company is growing steadily. Farming EBIT of 9.66 NOK pr. kg , a significant improvement from • the last quarter. Arctic Fish continues to deliver a high percentage of superior • quality salmon. Improved price achievement impacts the farming E
Slide 4: Agenda
Agenda 1 Highlights for the period 2 Operational performance 3 Group financials 4 Markets 5 Growth projects 6 Outlook and summary
Slide 5: Operational performance
Operational performance Farming Operational EBIT development YoY +5,78 • Operational EBIT pr. kg up by 5.78 NOK from Q2 20 to Q2 21 • Operational Farming EBIT of 9.66 NOK pr. kg has developed positively due to the following factors: • Price achievement up by NOK 1.79 pr. kg from Q2 20 and up NOK 10.
Slide 6: Operational performance
Operational performance • Harvested 1,824 tonnes, 1,019 tonnes more than in Q2 20. Production costs pr. kg (NOK) 51,3 • Production cost pr. kg in Q2 21 up by 6.2 NOK from Q1 21 49,1 44,2 45,1 10,6 7,5 42,7 • Production costs increased due to start up of harvesting 38,8 7,3 1,5 7,9 2,3 9,1 from a new
Slide 7: Agenda
Agenda 1 Highlights for the period 2 Operational performance 3 Group financials 4 Markets 5 Growth projects 6 Outlook and summary
Slide 8: Profit and loss
Profit and loss • Operating revenues of 99.8 MNOK Key figures from P/L • Operational EBIT of 14.7 MNOK • Harvested volume of 1,824 tonnes (YoY 126 % increase) KEY FIGURES Q2 Q2 YTD YTD (NOK '000) 2021 2020 2021 2020 • Positive fair value adjustment of 42.7 MNOK • Production tax of 0.6 MNOK Operating
Slide 9: Financial position
Financial position Key figures from Balance sheet • Investments in sea farming equipment; boat, cages, nets in the KEY FIGURES (NOK '000) 30.6.2021 31.3.2021 30.6.2020 31.12.2020 quarter. Intangible assets 48.243 40.149 29.459 34.297 • Investments in Smolt production to secure production capacity Pr
Slide 10: NIBD development and financial covenants
NIBD development and financial covenants Net interest bearing debt NET INTEREST BEARING DEBT NIBD development (NOK '000) 30.6.2021 31.3.2021 31.12.2020 Reported long term interest bearing debt 221.242 214.847 245.184 Reported short term interest bearing debt 40.125 244.462 301.154 Interest bearing l
Slide 11: CAPEX
CAPEX Ongoing investments Planned capital expenditure going forward The planned CAPEX is • Expansion of smolt capacity Property, plant and equipment Intangible assets intended to be funded by i.a. bank debt and • Farming equipment mNOK cash flows from operations • Branding initiatives 94 • Biomass b
Slide 12: Credit facilities from bank
Credit facilities from bank • Existing loan agreement components are as follows: • 300 Million NOK revolving facility for Biomass • 340 Million NOK long term loan • 30 Million NOK overdraft facility • Additional facility approved by bank to be finalized in line with construction projects: • 150 Mill
Slide 13: Agenda
Agenda 1 Highlights for the period 2 Operational performance 3 Group financials 4 Markets 5 Growth projects 6 Outlook and summary
Slide 14: Market outlook
Market outlook • Q2-21 price achievement increased by 3 % from Q2-20 Q1 2021 44,48 • Price achievement increased by 23 % QoQ • COVID-19 is still an unknown variable in terms of future Q2 2021 54,72 price predictions for coming months • The prices Arctic Fish achieves are “FCA packing Q2 2020 52,94 s
Slide 15: Global harvest volumes – second half of 2021
Global harvest volumes – second half of 2021 2-3% YoY Global harvest volumes • Expected negative growth for Q3 & Q4 2021 2.786 compared to 2020 2.715 Growth is expected to be negative 1.2 % globally, compared to a 1.000 Tons positive 0.2% increase between 2019 & 2020 • Less supply will likely have a
Slide 16: Agenda
Agenda 1 Highlights for the period 2 Operational performance 3 Group financials 4 Markets 5 Growth projects 6 Outlook and summary
Slide 17: Ongoing Growth Projects
Ongoing Growth Projects • In 2020 the Company released ~2.9m smolt with more than 8.9m smolt released since 2017 Civil contractor 1 • With the planned expansion, the smolt chosen and Increased smolt P capacity will be ~1,000 tones ~ 5 million smolt at ~200 grams contracts capacity finalized, • Exist
Slide 18: Smolt expansion plan
Smolt expansion plan Commentary Expected tank volume increase from 6,000 m3 to 13,500m3 • Two-step plan to increase tank volume with 7,500m3 and increase smolt capacity to 5 million smolt Tank volume, thousand m3 13,52 • Planned groundwork starting in August 2021 after completing i.a. 3,72 final des
Slide 19: Targeting ~24kt harvest volume in 2025
Targeting ~24kt harvest volume in 2025 Smolt release forecast Harvest volumes forecast Million smolts In thousand tonnes, HOG +72% +2.1m +210% +16.3kt 5,0 5,0 24,0 4,3 3,5 15,0 2,9 2,8 2,7 12,1 12,5 12,0 1,8 7,4 0,7 3,3 2017 2018 2019 2020 2021E 2022E 2023E 2024E 2025E 2019 2020 2021E 2022E 2023E 20
Slide 20: Agenda
Agenda 1 Highlights for the period 2 Operational performance 3 Group financials 4 Markets 5 Growth projects 6 Outlook and summary
Slide 21: Harvesting estimates 2021
Harvesting estimates 2021 • Harvest volumes in Q2 increased 126% YoY 2020 Q2: 805 tonnes Expected harvested volume (tonnes) Actual harvested volume (tonnes) 2021 Q2: 1,824 tonnes 2020 YTD: 1,668 tonnes 7.000 2021 estimates 2021 YTD: 5,617 tonnes • Total quantity to increase by 61,2% YoY 6.000 2020:
Slide 22: Summary Q2 2021
Summary Q2 2021 Farming EBIT pr. kg has improved since last quarter due to an improved • market and better price achievement. Operations on track with steady development and growth. • Arctic Fish continues to deliver a high percentage of superior quality • salmon. • Biomass growth and production has
Slide 23: Appendix: License information
Appendix: License information 23
Slide 24: Farming and license portfolio
Farming and license portfolio Licenses and applications are well positioned for future growth with locations in different fjords In thousand tonnes (MAB) 31.9 7x Areas with granted licenses 6x Areas with applied licenses 4.8 4.0 23.1 II West Fjords 5.31 Fjords with applications I Total applications
Slide 25: Appendix: Group financials
Appendix: Group financials 25
Slide 26: Group income statement
Group income statement CONSOLIDATED INCOME STATEMENT Q2 Q2 YTD YTD FY (NOK '000) 2021 2020 2021 2020 2020 Operating revenues 99.798 53.327 268.641 117.499 375.667 Cost of goods sold 35.429 9.179 139.941 19.564 192.800 Salaries 13.352 9.915 25.371 19.796 42.025 Depreciation 11.211 9.371 21.601 18.516
Slide 27: Statement of the financial position
Statement of the financial position STATEMENT OF FINANCIAL POSITION (NOK '000) 30.6.2021 31.3.2021 30.6.2020 31.12.2020 Intangible assets 48.243 40.149 29.459 34.297 Property, plant and equipment 605.706 581.274 544.321 559.988 Non-current financial assets 629 629 559 626 Non-current assets 654.579
Slide 28: Statement of equity
Statement of equity STATEMENT OF EQUITY 30.6.2021 Equity allocated to parent com pany shareholders Non- Treasury controlling (NOK '000) Share capital shares Retained earnings Total interests Total equity Equity at 01.01.2021 689.476 0 -210.672 478.805 0 478.805 Total com prehensive incom e 0 0 120.7
Slide 29: Group cash flow statement
Group cash flow statement 29 Statement of cash flow Q2 Q2 YTD YTD FY (NOK '000) 2021 2020 2021 2020 2020 Operational EBIT 14.710 2.139 32.510 19.042 6.319 Adjusted for: Depreciation 11.211 9.371 21.601 18.516 40.113 Production tax ~602 le) -2.236 le) -312 Change in inventories/biological assets -36.
Slide 30: Shareholders
Shareholders Ownership structure: The largest 20 shareholders as of 30.6.2021* Rank Name # of shares % ownership 1 NORWAY ROYAL SALMON ASA 16.346.824 51,28% 2 BREMESCO HOLDINGS LIMITED 9.104.582 28,56% 3 J.P. Morgan Bank Luxembourg S.A. 2.874.224 9,02% 4 Landsbankinn hf. 481.893 1,51% 5 KVERVA FINAN
Slide 31: pecticFish
pecticFish