Proximar Seafood As · OSL:PROXI
Proximar Seafood As — Q3 2024 Earnings Presentation
42 slides from Proximar Seafood As's earnings presentation, Nov 15, 2024
Slide 1: Company Presentation – Presentation of Q3 2024
Company Presentation Presentation of Q3 2024 15.11.2024 Nytt bilde – Fisk eller anlegg? PRIVATE AND CONFIDENTIAL
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward-looking information and statements. Such forward-looking information and statements are based on the current, estimates and projections of Proximar Seafood AS (“the Company”) or assumptions based on information currently available to the Company.
Slide 3: Today's speakers
Today’s speakers Joachim Nielsen CEO “Proximar aims to be a leading Company Presentation provider of sustainably produced seafood by setting the standard for land-based aquaculture” Ole Christian Willumsen CFO 3 3
Slide 4: Agenda
Agenda • Highlights of the quarter • Sales & Marketing Company Presentation • Production • Business case and Financial Summary • Summary & Outlook 4
Slide 5: Successfully started harvesting & sales - first mover advantage in Japan
Successfully started harvesting & sales - well-positioned with a significant first mover advantage in the Japanese market Norwegian company operating a land-based RAS facility for production of Atlantic salmon in Japan Local production in Well-performing • Long-term sales and distribution agreement
Slide 6: Highlights of the 3rd quarter 2024
Highlights of the 3rd quarter 2024: First sales achieving NOK ~130 / kg and strong interest in the Japanese market First harvest completed and sold • A major milestone on 30/9 as the company harvested its first Atlantic salmon (~1.2 tonnes) • 100% superior grade • Average harvested weight ~4 kg (H
Slide 7: Biomass build-up according to the production plan
Biomass build-up according to the production plan – aiming for full utilization in 2027 @ 5,300 tonnes HOG Important key metrics: Biomass development # batches in production # Proximar employees Company Presentation 733 18 45 47 15 38 12 33 360 10 40 112 31/12/2023 31/03/2024 30/06/2024 30/09/2024 3
Slide 8: First harvest & sales confirming business model
First harvest & sales – confirming Proximar’s business model and strong advantage of production in Japan • First harvest started 30/9 with a trial harvest of ~1.2 tonnes • Since late October, Proximar has been harvesting on a weekly basis Strong price achievements • Price achievement average NOK ~12
Slide 9: Launching Fuji Atlantic Salmon
Launching «Fuji Atlantic Salmon»- taking advantage of being the only domestic producer of Atlantic salmon in Japan • In parallel with the first harvest, the brand & logo Fuji Atlantic Salmon was announced in Japan. • Aiming to make simple association of our product towards consumers - addressing bot
Slide 10: Positioning of Proximar – enormous interest in Japan
Positioning of Proximar – gaining enormous interest for the company and its product in Japan • Late October, a press conference was held together with Marubeni to announce the start of regular commercial shipments - 18 media channels participated, including national TV • The media coverage of Proxim
Slide 11: First harvest attracted strong attention in Japan
First harvest attracted strong attention in Japan – press conference at Marubeni, articles in Nikkei, national television etc. Company Presentation 11
Slide 12: High visibility across supermarkets selling Fuji Atlantic Salmon
High visibility across the various supermarkets selling «Fuji Atlantic Salmon» - and strong interest seen from consumers Fuji Atlantic Salmon has been very visible in the Company Presentation supermarkets Still volumes being supplied are limited, but supply will increase gradually, also enabling wid
Slide 13: Turbidity challenges being resolved
Turbidity challenges being resolved – turbidity sharply dropping to levels within targeted range • Turbidity has impacted the growth in the third quarter following a prolonged period of restricted feeding to reduce risk Turbidity has remained a • Action plan including ozone system installation is no
Slide 14: Post-smolt grow-out facility provides stable water quality
The post-smolt grow-out facility provides stable water quality on all key parameters for good growth conditions for Atlantic salmon Development of important water quality parameters in Proximar’s post-smolt grow-out facility in 2024 Temperature O2 levels in production tank Ammonia (NH𝟑 ) pH Figures
Slide 15: Production update: Stable production and low mortality
Production update: Stable production and low mortality Growth curves for Proximar’s first batches Proximar’s biomass development Compared to Skretting growth model, figures in grams In metric tonnes, live weight Besides the impact on growth by reduced feeding, Growth rates have been impacted by we c
Slide 16: Cost of importing Norwegian Atlantic salmon to Japan
The cost for importing Norwegian Atlantic salmon to Japan averaged NOK 118/kg in Q3 2024 – Proximar’s first harvest realized at ~10% higher prices Cost development for import of Norwegian fresh Atlantic salmon in Japan Figures in NOK/kg, head-on-gutted 164 157 155 5 147 5 5 147 5 145 142 142 141 5 5
Slide 17: Robust outlook & attractive market fundamentals
Robust outlook & attractive market fundamentals – business model further confirmed by witnessed price achievement Attractive market prices, driven by higher import costs – … translating to robustness in our business model also in Proximar well positioned for attractive margins… terms of volumes NOK
Slide 18: Financial summary 3rd quarter 2024
Financial summary 3rd quarter 2024 P&L Q3 2024 Q3 2023 2023 Revenue and other income 145 0 6 Operating expenses -14 824 -10 998 -63 771 The very first sales Net financials - 9 041 - 3 382 -26 944 revenue recorded in the Earnings before taxes -23 720 -14 380 -90 709 quarter – at premium Company Prese
Slide 19: Final equipment installations expected completed by end of 2024
Final equipment installations – expected to be completed by end of 2024 and limited uncertainties seen Proximar is finalizing equipment installations of the last module and feeding system • The third module in the grow-out has been completed, and biofilter maturation ongoing All installation works r
Slide 20: Harvest outlook 2024/2025
Harvest outlook 2024/2025: Reiterating overall harvesting plan, some slight timing adjustments • The overall volumes for 2024 and 2025 are in-line with previous guidance of ~4,700 tonnes • Harvest volumes will be high during Q4 2025, and some volumes could be moved to January 2026 from December 2025
Slide 21: Proximar enters 2025 in a pole market position
Proximar enters 2025 in a pole market position, with strengthened outlook for creating shareholder value PROXIMAR - on track to deliver on goals from 2021 Summary: - Completed facility at very attractive CAPEX levels (NOK ~240 / kg) First sales confirming price premium potential and value of local
Slide 22: Q&A
Company Presentation 2 Q&A
Slide 23: Consolidated Financial Statement Q3 2024
Company Presentation Consolidated Financial Statement Q3 2024 2 PRIVATE AND CONFIDENTIAL
Slide 24: Statement from the Board of Directors
Statement from the Board of Directors We hereby confirm that the financial statements for the period from To the best of our knowledge, the report gives a true and fair view of the 1 January through 30 September 2024 to the best of our knowledge main events during the accounting period and their eff
Slide 25: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income (Amounts in NOK 1.000) Note Q3 2024 Q3 2023 YTD 2024 YTD 2023 2023 Revenue 145 - 145 - - Other income - - - 6 6 Revenue and other income - - 145 6 6 Cost of materials 13.792 1.201 25.279 3.378 5.930 Changes in biomass 2 -30.077 -8.418 -55.843 -17.336 -1
Slide 26: Consolidated statement of financial position
Consolidated statement of financial position EQUITY AND LIABILITY (Amounts in NOK 1.000) 30 Sept 30 Sept Equity Note 2024 2023 2023 Share capital 6 14.217 5.943 5.967 ASSETS Share premium reserve 436.127 417.821 366.597 Non-current assets Other equity 23.998 20.322 19.591 Translation differences -3.
Slide 27: Consolidated statement of changes in equity
Consolidated statement of changes in equity Share Share premium (Amounts in NOK 1.000) Translation Total equity Note capital reserve Other equity differences Balance at 1 January 2023 3.979 363.654 22.562 -274 389.922 Loss for the period -92.723 -622 -93.345 Currency effect on investment in subsidia
Slide 28: Consolidated statement of cash flows
Consolidated statement of cash flows Amounts in 1.000 NOK Note Q3 2024 Q3 2023 YTD 2024 YTD 2023 2023 Cash flow from operating activities Loss before tax -23.720 -14.380 -79.004 -37.750 -90.709 Income taxes paid - -0 - -10 - Depreciation 12.957 2.957 34.347 9.195 15.270 Change trade receivables -163
Slide 29: Note - Summary of significant accounting policies
Note 1 - Summary of significant accounting policies The Proximar Seafood group is a Norwegian-registered seafood company engaged in land-based fish farming, with its head office in Bergen, Norway. Proximar Group is operating a production facility for Atlantic salmon close to Mount Fuji, Japan, throu
Slide 30: Note – Biological assets (1/3)
Note 2 – Biological assets (1/3) Biological assets are, in accordance with IAS 41, measured at fair value, unless the fair value cannot be measured reliably. For salmon in the grow-out facility a present value model is applied to estimate the fair value. Changes in fair value of biological assets ar
Slide 31: Note – Biological assets (2/3)
Note 2 – Biological assets (2/3) Amounts in 1.000 NOK Volume of biological assets Q3 2024 Q3 2023 YTD 2024 YTD 2023 2023 Biological assets beginning of period 360 1 40 0 0 Increase due to production 375 11 704 12 40 Reduction due to harvest/sale -1 -1 Reduction due to incident-based mortality 0 -9 V
Slide 32: Note – Biological assets (3/3)
Note 2 – Biological assets (3/3) Amounts in 1.000 NOK Specification of biological assets Number of fish Biomass Cost of Fair value Biological assets (1000) (tonnes) production *** adjustment **Carrying amount Smolt 1.146 23 15.332 15.332 Non-harvestable fish 777 711 63.116 15.170 78.286 Total 30 Sep
Slide 33: Note - Land, property, plant and equipment (1/2)
Note 3 - Land, property, plant and equipment (1/2) Split between Right-of-use assets and owned assets: Q3 2024 Q3 2023 2023 Carrying amount RoU-assets 6.140 1.202 922 Carrying amount owned assets 1.404.121 1.216.404 1.278.387 Total property, plant and equipment incl. right-of-use assets 1.410.261 1.
Slide 34: Note - Land, property, plant and equipment (2/2)
Note 3 - Land, property, plant and equipment (2/2) Assets under Equipment and Year ended 31 December 2023 construction Land Buildings RAS vehicles Total Cost at 30 September 2023 1.005.732 89.560 45.341 60.300 25.763 1.226.696 Additions in Q4/reclassifications * -672.660 1.571 584.028 108.854 38.145
Slide 35: Note – Leasing (1/2)
Note 4 – Leasing (1/2) Amounts in NOK 1,000 Proximar Seafood AS leasing agreements consists of buildings and equipment used in the administration. The leasing contract of buildings had a duration until 31 May 2024. Proximar Ltd. leasing agreements consists of buildings, vehicles and equipment used f
Slide 36: Note – Leasing (2/2)
Note 4 – Leasing (2/2) Amounts in NOK 1000 Year ended 30 September 2023 Property Vehicles Equipment Total Cost at 1 January 2023 3.359 819 4.178 Currency effect 659 161 820 Cost at 30 September 2023 4.018 979 4.998 Accumulated depreciation at 1 January 2023 1.457 210 1.667 Depreciation in Q1, Q2 and
Slide 37: Note - Earnings per share
Note 5 - Earnings per share Amounts in NOK Q3 2024 Q3 2023 YTD 2024 YTD 2023 2023 Profit (loss) for the year -13.956.827 -22.352.407 -75.720.673 -48.514.018 -93.344.517 Weighted average number of outstanding shares during the year 142.172.780 59.180.171 139.102.927 49.684.364 52.187.041 Earnings (lo
Slide 38: Note - Share capital and shareholders (1/2)
Note 6 - Share capital and shareholders (1/2) The share capital of NOK 14.217.278 consisted of 142.172.780 shares, each with a nominal value of NOK 0.1 at 30 September 2024. All shares carry equal rights. The movement in the number of shares during the year was as follows: 30 Sept. 2024 2023 Ordinar
Slide 39: Note - Share capital and shareholders (2/2)
Note 6 - Share capital and shareholders (2/2) List of main shareholders at 30 September 2024 30 September 2024 Number of Ownership Shareholder shares percentage Grieg Kapital AS 15.480.049 10,9 % Nordfjord AS 9.206.080 6,5 % Six SIS AG 7.400.000 5,2 % Company Presentation Kvasshøgdi AS 7.244.844 5,1
Slide 40: Note - Borrowings and other current liabilities (1/3)
Note 7 - Borrowings and other current liabilities (1/3) Amounts in 1,000 NOK In March 2024 the loan from JAML was extended at same terms with new maturity date, 31 December 2025. The outstanding principal of JPY 750.000.000 shall be paid in full on the maturity date. Interests are paid quarterly. Gr
Slide 41: Note - Borrowings and other current liabilities (2/3)
Note 7 - Borrowings and other current liabilities (2/3) Amounts in NOK Non-current liabilities* Currency Borrowing company 30 Sept 2024 30 Sept 2023 31 December 2023 Proximar Seafood AS Convertible bond loan NOK (Norway) 245.223 216.199 202.725 Proximar Seafood AS Non-current interest bearing debt N
Slide 42: Note - Borrowings and other current liabilities (3/3)
Note 7 - Borrowings and other current liabilities (3/3) Amounts in NOK Description of liabilities Currency Interest rate Final maturity Pledges Bullet credit facility JPY 2,65% December 2025 Shares in Proximar Ltd Loan to financial institution JPY TIBOR + 4.0 % August 2025 All assets Non-current int