Proximar Seafood As · OSL:PROXI
Proximar Seafood As — Q1 2024 Earnings Presentation
34 slides from Proximar Seafood As's earnings presentation, May 16, 2024
Slide 1: Presentation of 1Q 2024
Company Presentation Presentation of 1Q 2024 16.05.2024 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 “To be a leading provider of Company Presentation sustainably produced seafood by setting the standard for land-based aquaculture” Ole Christian Willumsen CFO 3 3
Slide 4: Proximar at a glance – 2024 a milestone year, approaching first harvest
Proximar at a glance – 2024 a milestone year, approaching first harvest Norwegian company operating a land-based RAS facility for production of Atlantic salmon in Japan Local production in Well-performing • Stage I targeted production of 5,300 tonnes robust system market Company Presentation (HOG) •
Slide 5: 2024 is an important year of transition for Proximar
2024 is an important year of transition for Proximar – from project and construction to sales and steady operations Important key metrics: Biomass development # batches in production # Proximar employees Company Presentation 111,9 12 38 33 10 26 7 20 11,5 39,8 5 1,4 30/06/2023 30/09/2023 31/12/2023
Slide 6: Highlights of the 1st quarter 2024 – biomass almost tripled since year end
Highlights of the 1st quarter 2024 – biomass almost tripled since year end Continuing with transfer of fish to the grow-out building • Following the first batch of fish transferred in December, 2 more batches were transferred • No irregular mortality during / post transfer Company Presentation F
Slide 7: Production update: Continued strong growth across all batches
Production update: Continued strong growth across all batches Growth curves for Proximar’s first batches Proximar’s biomass development Compared to Skretting growth model, figures in grams In metric tonnes, live weight 2.400 Continuing to see good 2.200 growth and low mortality related to water qual
Slide 8: Post-smolt grow-out facility provides stable water quality and good growth conditions
The post-smolt grow-out facility provides stable water quality and good growth conditions across all parameters Development in important water quality parameters in Proximar’s post-smolt grow-out facility in 2024 Temperature O2 levels in production tank Ammonia (NH𝟑) pH Figures in degrees Celsius…
Slide 9: Pictures from the grow-out building
Pictures from the grow-out building Company Presentation Fish from sample testing of first batch 10h of May Average size of first batch ~2.4 kg Color ~26+ Texture and taste very good 9
Slide 10: Cost for importing Norwegian Atlantic salmon to Japan averaged NOK 143/kg in Q1 2024
The cost for importing Norwegian Atlantic salmon to Japan averaged NOK 143/kg in Q1 2024 Cost development for import of Norwegian fresh Atlantic salmon in Japan Figures in NOK/kg, head-on-gutted 164 157 155 5 152 147 5 5 5 145 142 5 141 5 5 5 5 136 5 131 5 5 5 131 5 5 125 124 5 5 122 121 122 123 123
Slide 11: Robust outlook and attractive market fundamentals
Robust outlook and attractive market fundamentals 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 / kg (HOG) at steady state production EBIT cost NOK / kg (HOG) a
Slide 12: Marubeni Corporation – showing a strong commitment
Marubeni Corporation – showing a strong commitment Marubeni has recently strengthened its focus on aquaculture • Established Food Ingredients & Aquaculture Business Development Section, also in charge of Proximar • Firming up sales efforts with separate Proximar division (changing name to Marubeni S
Slide 13: Continuing to receive strong interest in Japan
Proximar – continuing to receive strong interest in Japan and more efforts planned going forward Marubeni / Proximar – more activities planned in the coming months Company Presentation Building visibility as part of preparations for sales and marketing – in collaboration with Marubeni Attending SusH
Slide 14: Recruitment - on track with staffing plan
Recruitment - on track with staffing plan and aligned with production requirement Well on track with the right team to deliver on a successful production going forward Production staffing secured • Denitrification System Manager in place with extensive experience from the aquaculture industry and al
Slide 15: Financial summary 1st quarter 2024
Financial summary 1st quarter 2024 P&L Q1 2024 Q1 2023 2023 Revenue and other income 0 6 6 Operating expenses Operating expenses -20 476 -8 962 -63 771 increasing as planned due Net financials - 9 011 - 720 -26 944 to growing operational Earnings before taxes -29 487 -9 676 -90 709 activity Company
Slide 16: Summary and outlook
Summary and outlook Summary: Production continues to show reassuring results, steady growth and stable water quality Staffing in-line with production plan and close to fully staffed – all key positions filled with experienced people, and internal training program established to secure transfer of kn
Slide 17: Q&A
Company Presentation 1 Q&A
Slide 18: Appendix: Consolidated statement of comprehensive income
Company Presentation Appendix: Consolidated statement of comprehensive income 1
Slide 19: Statement from the Board of Directors
Statement from the Board of Directors We hereby confirm that the financial statements for the period from 1 To the best of our knowledge, the quarterly report gives a true and fair January through 31 March 2024 to the best of our knowledge have been view of the main events during the accounting peri
Slide 20: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income (Amounts in NOK 1.000) Note 31 March 2024 31 March 2023 2023 Other income - 6 6 Revenue and other income - 6 6 Cost of materials 3.738 881 5.930 Changes in biomass 3 -9.147 -5.067 -17.772 Net fair value adjustment biomass 3 -1.978 - - Personnel expenses
Slide 21: Consolidated statement of financial position
Consolidated statement of financial position (Amounts in NOK 1.000) 31 March 31 March EQUITY AND LIABILITIES 2024 2023 2023 31 March 31 March Equity Note 2024 2023 2023 ASSETS Share capital 5 14.217 4.033 5.967 Share premium reserve 484.386 357.099 366.597 Non-current assets Other equity 19.591 21.6
Slide 22: Consolidated statement of changes in equity
Consolidated statement of changes in equity Share Share premium Translation (Amounts in NOK 1.000) 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 23: Consolidated statement of cash flows
Consolidated statement of cash flows (Amounts in NOK 1.000) Note 31 March 2024 31 March 2023 2023 Cash flow from operating activities Loss before tax -29.487 -9.676 -90.709 Depreciation 11.120 3.104 15.270 Change other receivables 29.067 - - Gain from sales of fixed assets - -6 Net fair value adjust
Slide 24: Note - Summary of significant accounting policies
Note 1 - Summary of significant accounting policies The Proximar Seafood group is an Norwegian-registered seafood company engaged in land-based fish farming, with its head office in Bergen, Norway. Proximar Group is constructing a production facility for Atlantic salmon close to Mount Fuji, Japan, t
Slide 25: Note - Land, property, plant and equipment (1/2)
Note 2 - Land, property, plant and equipment (1/2) (Amounts in NOK 1.000) Split between Right-of-use assets and owned assets: 31/03/2024 31/03/2023 2023 Carrying amount RoU-assets 2.195 2.103 922 Carrying amount owned assets 1.307.278 923.184 1.278.387 Total property, plant and equipment incl. right
Slide 26: Note - Land, property, plant and equipment (2/2)
Note 2 - Land, property, plant and equipment (2/2) Assets under Equipment and Year ended 31 December 2023 construction Land Buildings RAS vehicles Total Cost at 1 March 2023 754.144 33.226 49.934 66.291 24.451 928.046 Additions in period Q2, Q3 and Q4 2023/reclassifications -359.113 61.069 584.028 1
Slide 27: Note – Biological assets (1/3)
Note 3 – 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 28: Note – Biological assets (2/3)
Note 3 – Biological assets (2/3) Amounts in 1.000 NOK Tonnes Count Volume of biological assets 31/03/2024 2023 31/03/2024 2023 Biological assets beginning of period 40 0 1.135.907 250.995 Increase due to production 82 40 191.836 884.912 Reduction due to incident based mortality 3 February -9 -49.867
Slide 29: Note – Biological assets (3/3)
Note 3 – Biological assets (3/3) Amounts in 1.000 NOK Carrying amount of biological assets 2023 Biological assets as of 1 January 2.868 Increase due to production in period 1 January to 31 March 5.221 Biological assets as of 31 March 8.089 Increase due to production in Q2, Q3 and Q4 11.661 Biologica
Slide 30: Note - Earnings per share
Note 4 - Earnings per share Amounts in NOK 31/03/2024 31/03/2023 2023 Profit (loss) for the year -29.954.771 -1.961.910 -93.344.517 Weighted average number of outstanding shares during the year 132.895.002 39.935.965 52.187.041 Earnings (loss) per share - basic and diluted (in NOK) -0,23 -0,05 -1,79
Slide 31: Note - Share capital and shareholders (1/2)
Note 5 - 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 31 March 2024. All shares carry equal rights. The movement in the number of shares during the year was as follows: 31.03.2024 2023 Ordinary share
Slide 32: Note - Share capital and shareholders (2/2)
Note 5 - Share capital and shareholders (2/2) List of main shareholders at 31 March 2024 31/03/2024 Number of Ownership Shareholder shares percentage Grieg Kapital AS 15.480.049 10,9 % Nordfjord AS 9.000.000 6,3 % Myrlid AS 8.318.257 5,9 % Six SIS AG 7.900.000 5,6 % Kvasshøgdi AS 7.244.844 5,1 % Hel
Slide 33: Note - Borrowings and other current liabilities (1/2)
Note 6 - Borrowings and other current liabilities (1/2) Amounts in 1,000 NOK The Group has been in process of extending the loan agreement with JAML. In March 2024 the loan was extended at same terms with new maturity date, 30 December 2025. The outstanding principal of JPY 750.000.000 shall be paid
Slide 34: Note - Borrowings and other current liabilities (2/2)
Note 6 - Borrowings and other current liabilities (2/2) Amounts in NOK Payment profile non-current liabilities 2024 2025 2026 Total At 31 March 2024 Non-current bullet credit facility 53.583 - 53.583 Long term loan to financial institution 628.707 - 628.707 Long term loan 104.200 - 104.200 Convertib