Slide 1: Arctic Fish Q1 2022 Presentation
Arctic Fish Q1 2022 Presentation 25th of May 2022
Slide 2: Disclaimer
Disclaimer Cautionary note regarding forward-looking statements This presentation is the managements summary of the 1st quarter report, it includes forward-looking statements that reflect the Company's current views with respect to future events and financial and operational performance. These forwa
Slide 3: Agenda
1 Highlights for the period 2 Operational performance & Group financials 3 Building blocks 4 Markets 5 Growth projects 6 Outlook and summary
Slide 4: Highlights in Q1 2022
Highlights in Q1 2022 A quarter filled with operational challenges alongside good market conditions ▪ Farming Operational EBIT of 20.4 NOK pr. kg An improvement of 14.7 NOK pr. kg from Q1 2021 ▪ High salmon prices in markets and relatively stable cost performance An overall positive effect on the Fa
Slide 5: Quarterly Key Performance Indicators (KPI's)
Quarterly Key Performance Indicators (KPI’s) Quarterly harvest volumes In thousand tonnes, HOG 4,2 3,8 2,8 3,0 2,9 2,9 1,9 0,9 0,8 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Quarterly production costs NOK pr. kg Production costs Harvesting/wellboat costs 51,3 49,1 44,2 42,7 45,1 44,5 46,5
Slide 6: Agenda
1 Highlights for the period 2 Operational performance & Group financials 3 Building blocks 4 Markets 5 Growth projects 6 Outlook and summary
Slide 7: Operational performance
Operational performance Operational EBIT (NOK pr. kg) 20,4 Operational EBIT pr. kg up by 14.7 NOK from Q1 21 9,7 10,6 10,1 ▪ An increase in associated costs of harvesting affected 5,7 the production costs as well as other biological production factors that caused a higher cost pr. kg. Q1 21 Q2 21 Q3
Slide 8: Stable and strong cost performance over time
Stable and strong cost performance over time Historical production cost development and medium-term target NOK pr. kg (HOG) Harvesting & packing Wellboat COGS Annual 60 52,0 51,3 50 49,1 45,0 46,5 46,5 10,0 43,2 44,2 45,1 44,5 10,6 7,5 42,7 38,8 6,8 40 2,0 8,6 1,5 7,9 7,3 7,6 10,3 7,4 2,3 9,1 1,6 5,
Slide 9: Q1 Dyrafjordur incident
Q1 Dyrafjordur incident As previously stated regarding the incident in Dyrafjordur, the following had an effect in Q1: ▪ There was an extraordinarily high mortality in Dyrafjordur, at two of our sites in the fjord. Due to this situation, there was a write down of biological assets and non-recurring
Slide 10: Profit and loss
Profit and loss ▪ Operating revenues of 282.5 MNOK Key figures from P/L ▪ Non recurring costs of 129 MNOK related to the incident in Dyrafjordur. ▪ Operational EBIT of -45.0 MNOK KEY FIGURES Q1 Q1 FY (NOK '000) 2022 2021 2021 ▪ Harvested volume of 4,221 tonnes (YoY 11% increase) ▪ Positive fair valu
Slide 11: Financial position
Financial position Key figures from Balance sheet KEY FIGURES (NOK '000) 31.3.2022 31.3.2021 31.12.2021 Deferred tax assets 19.479 0 19.479 Ongoing investments Intangible assets 53.136 40.149 52.119 Property, plant and equipment 741.014 581.274 657.161 ▪ Sea Farming equipment Right of use assets 4.2
Slide 12: NIBD development and financial covenants
NIBD development and financial covenants NIBD development (MNOK) Alternate performance measures (APM) Net interest bearing debt (NOK '000) 31.03.2022 31.3.2021 31.12.2021 Reported long-term interest-bearing debt 308.021 214.847 318.152 Reported short-term interest-bearing debt 37.914 244.462 36.063
Slide 13: CAPEX
CAPEX Ongoing investments Planned capital expenditure going forward ▪ We are committing to our growth plan with extensive Actual Capital Expenditures (MNOK) Planned Capital Expenditures (MNOK) investments in our Smolt Production capacity and in a 500 Harvesting facility. 468 ▪ Both investments are a
Slide 14: Existing Credit facilities from bank
Existing Credit facilities from bank Existing loan agreement components are as follows: ▪ 300 MNOK revolving facility for Biomass ▪ 321 MNOK long term loan, 20 MNOK has been repaid reducing the availability under this part of the loan agreement ▪ 30 MNOK overdraft facility Additional facilities appr
Slide 15: Agenda
Agenda 1 Highlights for the period 2 Operational performance & Group financials 3 Building blocks 4 Markets 5 Growth projects 6 Outlook and summary
Slide 16: The building blocks of Arctic Fish
The building blocks of Arctic Fish Excellence in Sea A robust and strong Farming and Smolt sustainability profile Production Growing markets and Attractive licenses and strategic marketing production potential vision
Slide 17: Excellence in Sea Farming and Smolt Production
Excellence in Sea farming and Smolt Excellence in Sea Farming and Smolt Production Production Smolt Farming Sea Farming ▪ Despite the incident in Dyrafjordur it should be noted that the ▪ In 2021 Produced 3.4 million smolt at an average weight of 152 growth has been as expected in sites that have be
Slide 18: A robust and strong sustainability profile
A robust and strong A robust and strong sustainability profile sustainability profile Certifications 100% First of its kind hi-tech smolt facility with 100% green energy1 ✓ All sites ASC certified All Icelandic attributes preserved; low sea temperature and density ▪ All fish sold and all sites in us
Slide 19: Licenses enabling growth and production potential
Attractive licenses and Licenses enabling growth and production potential production potential Awarded licenses in Q1 2022 Licenses and applications are well positioned for future growth Arnarfjörður with locations in different fjords I A license for 4.000 tonnes ✓ In thousand tonnes (MAB) 31.9 Curr
Slide 20: Growing markets and strategic marketing vision
Growing markets and strategic marketing Growing markets and strategic marketing vision vision Since 2019 we have more than tripled our annual sales ▪ Historically Q1 2022 was the largest quarter in terms of sales volume Harvested 4,221 tonnes in the quarter – an 11% increase YoY ▪ Indications for a
Slide 21: Agenda
Agenda 1 Highlights for the period 2 Operational performance & Group financials 3 Building blocks 4 Markets 5 Growth projects 6 Outlook and summary
Slide 22: Markets and sales
Markets and sales Q1 prices increased by 22.4 NOK pr. kg, or by 50% YoY ▪ The markets for salmon were strong in the quarter opposed to the previous year. Impacted by the incident Q1 2021 LAST YEAR 44,5 ▪ Despite the good market conditions the price achievement was not optimal as the excess volume, a
Slide 23: Agenda
Agenda 1 Highlights for the period 2 Operational performance & Group financials 3 Building blocks 4 Markets 5 Growth projects 6 Outlook and summary
Slide 24: Ongoing Growth Projects
Ongoing Growth Projects ▪ A proven track record, building on our proven approach to RAS smolt production 1 ▪ With the planned expansion, the smolt Project on track, Increased smolt capacity capacity will be ~1,000 tonnes ~ 5 million smolt at ~ 200 grams. P timeline and cost wise ▪ Existing smolt pro
Slide 25: 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 13,52 Tank volume, thousand m3 ▪ It is expected that the expansion will be finished first half of 2023 3,72 ▪ To
Slide 26: Smolt construction making headway
Smolt construction making headway 26 Construction on track ▪ With warmer weathers and better conditions overall, the construction is ramping up and making good progress with opportunities to move ahead of the schedule over the next months ▪ The timeline expectations of completing the expansion in th
Slide 27: Bolungarvik - New harvesting facility in progress
Bolungarvik - New harvesting facility in progress Commentary Design ▪ Design criteria aims at securing a capacity of 50.000 tonnes per year on single dayshift with additional extension possibilities. ▪ The facility will fulfil our internal needs and there are external growth opportunities with volum
Slide 28: Agenda
Agenda 1 Highlights for the period 2 Operational performance & Group financials 3 Building blocks 4 Markets 5 Growth projects 6 Outlook and summary
Slide 29: Harvesting estimates
Harvesting estimates Harvesting volumes and forecast In thousand tonnes, HOG ▪ Arctic Fish continues developing according to its -8% growth plan but harvesting quantities in 2022 take a 11,5 substantial hit due to the mortality incident which 10,6 occurred in Q1 2022. Harvesting volumes in 2022 are
Slide 30: Appendix: Group financials
Appendix: Group financials pecticFish
Slide 31: Group income statement
Group income statement CONSOLIDATED INCOME STATEMENT Q1 Q1 FY (NOK '000) 2022 2021 2021 Operating revenues 282.525 168.843 595.895 Cost of goods sold 174.691 102.873 299.189 Salaries 17.163 12.098 54.151 Depreciation 12.494 10.390 46.501 Other operating costs 123.164 25.682 109.110 Operational EBIT
Slide 32: Statement of the financial position
Statement of the financial position STATEMENT OF FINANCIAL POSITION (NOK '000) 31.3.2022 31.3.2021 31.12.2021 Deferred tax assets 22.550 0 19.479 Intangible assets 53.136 40.149 52.119 Property, plant and equipment 741.014 581.274 657.161 Right of use assets 4.234 0 4.435 Non-current financial asset
Slide 33: Statement of equity
Statement of equity STATEMENT OF EQUITY Equity allocated to parent company 31.3.2022 shareholders Accumulated (NOK '000) Share capital Share premium earnings Total equity Equity at 01.01.2022 31.877 1.001.740 -58.109 975.508 Total comprehensive income 0 0 -12.284 -12.284 Transactions with shareholde
Slide 34: Group cash flow statement
Group cash flow statement STATEMENT OF CASH FLOW Q1 Q1 FY (NOK '000) 2022 2021 2021 Operational EBIT -44.988 17.800 86.944 Adjusted for: Depreciation 12.494 10.390 46.501 Production tax -3.535 -1.633 -3.843 Change in inventories/biological assets 205.416 48.281 -71.661 Change in account receivables
Slide 35: Shareholders
Shareholders Ownership structure: The largest 20 shareholders as of 31.3.2022* 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. 3.023.139 9,48% 4 Landsbankinn hf. 548.137 1,72% 5 VERDIPAPIRFO
Slide 36: |ecticFish
|ecticFish