Arctic Fish Holding As · OSL:AFISH
Arctic Fish Holding As — Q1 2021 Earnings Presentation
32 slides from Arctic Fish Holding As's earnings presentation, May 11, 2021
Slide 1: Arctic Fish Q1 report 2021
Arctic Fish Q1 report 2021 11th May 2021
Slide 2: Agenda
Agenda 1 Highlights for the period 2 Segment information 3 Group financials 4 Markets 5 Growth projects 6 Outlook and summary
Slide 3: Highlights in Q1 2021
Highlights in Q1 2021 Operational EBIT of 17,8 mNOK for the group, and a farming operational • EBIT 5,67 NOK/kg • Production cost down by 3,9 NOK/kg from Q4 2020 • Average price of 44,48 NOK/kg • Harvested 7% more than expected – Harvested 3.793 tonnes • Successful listing on Euronext Growth Oslo St
Slide 4: Financial Highlights in Q1 2021
Financial Highlights in Q1 2021 • Operating revenue 168,8 mNOK KEY FIGURES Q1 Q1 (NOK '000) 2021 2020 Operating revenue 168.843 64.172 • Operational EBIT of 17,8 mNOK Operational EBITDA 28.190 26.048 Operational EBIT 17.800 16.903 EBIT 56.439 16.903 Earnings before tax (EBT) Earnings per share (NOK)
Slide 5: Agenda
Agenda 1 Highlights for the period 2 Segment information 3 Group financials 4 Markets 5 Growth projects 6 Outlook and summary
Slide 6: Farming
Farming Farming Operational EBIT per kg FARMING - KEY FIGURES 16,98 Q1 Q1 (NOK '000) 2021 2020 5,67 3,88 Operating revenues 168.843 64.172 Operational EBIT 21.521 14.646 0,30 Volume harvested (tonnes) 3.793 863 -4,62 Operational EBIT per kg 5,67 16,98 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 • Operational EBIT
Slide 7: Farming
Farming Production cost pr. Kg (HOG) Harvested volume (tonnes) COGS Wellboat Harvesting & packing 4.000 3.793 51,3 3.500 49,1 2.988 3.000 2.788 10,6 44,2 7,5 42,7 2.500 1,5 38,8 2,3 7,9 2.000 9,1 1,9 7,8 1.500 1,5 40,1 1,1 1.000 863 805 38,4 34,4 32,2 29,9 500 - Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q1 20 Q
Slide 8: Agenda
Agenda 1 Highlights for the period 2 Segment information 3 Group financials 4 Markets 5 Growth projects 6 Outlook and summary
Slide 9: Key income statement items
Key income statement items Operating revenue Operational EBIT Earnings per share 375.667 2,31 17.800 16.903 0,26 168.843 6.008 64.172 -1,21 Q1 2020 FY 2020 Q1 2021 Q1 2020 FY 2020 Q1 2021 Q1 2020 FY 2020 Q1 2021 • Revenue up by 163% YoY • Operational EBIT up by 5,3% YoY • Earnings pr. share up 2,05
Slide 10: Key balance sheet items
Key balance sheet items Q4 20 Q1 21 Q4 20 Q1 21 Q4 20 Q1 21 8,22% 0,83% 1,60% 491.967 1.114.020 369.331 313.290 896.667 726.494 -8,04% 131.583 478.805 (66.175) (24.549) Biomass pre FV Net Rec/pay NWC Equity Cap. Empl ROCE% ROE% • Biomass pre FV down by 56 mNOK • Equity up by 417,8 mNOK • Return on c
Slide 11: NIBD development and financial covenants
NIBD development and financial covenants NIBD development Net interest bearing debt NET INTEREST BEARING DEBT (NOK '000) 31.3.2021 31.12.2020 Reported long term interest bearing debt 214.847 245.184 Reported short term interest bearing debt 244.462 301.154 Interest bearing long term receivables - -
Slide 12: The proceeds from the private placement will mainly be used to fund growth investments
The proceeds from the private placement will mainly be used to fund growth investments Sources and uses of proceeds Planned capital expenditure going forward NOKm Seawater Freshwater Processing, plant & other Miscellaneous The remaining Completed private placement 350 planned CAPEX is mNOK Total new
Slide 13: Credit facilities from bank of mNOK 670
Credit facilities from bank of mNOK 670 • Late in Q4 2020 Arctic Fish completed a new loan agreement, the main components of the agreement are as follows: • 300 Million NOK revolving facility for Biomass • 340 Million NOK long term loan • 30 Million NOK overdraft facility • Covenants: • 40% Equity r
Slide 14: Agenda
Agenda 1 Highlights for the period 2 Segment information 3 Group financials 4 Markets 5 Growth projects 6 Outlook and summary
Slide 15: Market outlook
Market outlook • Q1-21 price achievement decreased by 34,8% from Q1- 20 Q1 2021 44,48 • With negative growth in global harvest volume for the rest of year provides a positive view on the salmon price, but COVID-19 is still a risk. Q1 2020 68,24 • It should be noted that the prices Arctic Fish achiev
Slide 16: Global harvest volumes 2021
Global harvest volumes 2021 +3% YoY • Q1 global growth coming in at 12 % YoY, mainly driven by 2.800 strong growth from Europe 2.786 2.780 • Q2 is expected to give limited growth of 1 %, due to 1.000 Tons significant reduction in Chile 2.760 • Second half of 2021 is expected to have roughly same 2.7
Slide 17: Agenda
Agenda 1 Highlights for the period 2 Segment information 3 Group financials 4 Markets 5 Growth projects 6 Outlook and summary
Slide 18: Considerable growth for Arctic Fish is expected
Considerable growth for Arctic Fish is expected • In 2020 the Company released ~2.9m smolt with more than 8.9m smolt released since 2017 In advanced 1 • With the planned expansion, the smolt Increased smolt detail planning capacity capacity will be ~1,000 tones ~ 5 million smolt at ~200 grams P phas
Slide 19: Aggressive smolt expansion plan
Aggressive 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 late Q2 2021 after completing i.a. final
Slide 20: 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 21: Agenda
Agenda 1 Highlights for the period 2 Segment information 3 Group financials 4 Markets 5 Growth projects 6 Outlook and summary
Slide 22: Harvesting estimates 2021
Harvesting estimates 2021 Harvest volumes Expected harvested volume (tonnes) Actual harvested volume (tonnes) Q1 2021 (YoY 440%) 12.000 12.000 • 2020 Q1: 863 tonnes 2021 Q1: 3.793 tonnes Total quantity to increase by 61,2% YoY 10.000 • 2020: 7.443 tonnes 2021E : 12.000 tonnes 8.000 14.000 Harvesting
Slide 23: Summary
Summary • Successful listing on Euronext Growth Oslo IPO: 19th February 2021 • Production cost in Q1 2021 down by 3,9 NOK from Q4 2020 Harvesting costs have been steadily declining due to volumes and improved biology Total quantity harvested is expected to increase by 61,2% YoY • 2020: 7.443 tonnes
Slide 24: Appendix: License information
Appendix: License information 24
Slide 25: 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 26: Appendix: Group financials
Appendix: Group financials 26
Slide 27: Group income statement
Group income statement CONSOLIDATED INCOME STATEMENT Q1 Q1 FY (NOK '000) 2021 2020 2020 Operating revenues 168.843 64.172 375.667 Cost of goods sold 102.873 10.386 192.800 Salaries 12.098 9.881 42.025 Depreciation 10.390 9.145 40.113 Other operating costs 25.682 17.858 94.410 Operational EBIT 17.800
Slide 28: Statement of the financial position
Statement of the financial position STATEMENT OF FINANCIAL POSITION (NOK '000) 31.3.2021 31.3.2020 31.12.2020 Intangible assets 40.149 28.899 34.297 Property, plant and equipment 581.274 502.484 559.988 Non-current financial assets 629 559 626 Non-current assets 622.052 531.942 594.911 Inventory and
Slide 29: Group cash flow statement
Group cash flow statement Statement of cash flow Q1 Q1 FY (NOK '000) 2021 2020 2020 Operational EBIT 17.800 16.903 6.319 Adjusted for: Depreciation 10.390 9.145 40.113 Production tax -1.633 0 -312 Change in inventories/biological assets 48.281 -29.415 -146.716 Change in account receivables and accou
Slide 30: Statement of equity
Statement of equity STATEMENT OF EQUITY 31.3.2021 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 73.72
Slide 31: Shareholders
Shareholders Ownership structure: The largest 20 shareholders as of 31.3.2021* 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. 2.661.068 8,35% 4 Landsbankinn hf. 477.368 1,50% 5 CLEARSTREAM
Slide 32: Slide 32