Atlantic Sapphire Asa · OSL:ASA
Atlantic Sapphire Asa — Investor Presentation (May 2019)
35 slides from Atlantic Sapphire Asa's investor presentation, May 7, 2019
Slide 1: Private Placement: Accelerating US Growth
Private Placement 7 May 2019 Accelerating US Growth |
Slide 2: Important Information
IMPORTANT INFORMATION This presentation (the "Presentation") has been produced by Atlantic Sapphire AS ("Atlantic Sapphire" or the “Company”), solely for use in connection with the contemplated offering of shares by the Company (the "Private Placement"). This Presentation and any information contain
Slide 3: Summary of Key Risk Factors (1/2)
SUMMARY OF KEY RISK FACTORS (1/2) RISK FACTORS In the following is a summary of the key risks facing the Group. Please see slide 32-36 for a full description of risk factors. Key risks relating to the Group and the industry in which it operates: • Land-based salmon farming is a new industry and is s
Slide 4: Summary of Key Risk Factors (2/2)
SUMMARY OF KEY RISK FACTORS (2/2) RISK FACTORS • Atlantic Sapphire may be target for activism of various kinds with the aim to cause reputational damage or damage to production facilities (spread of information, sabotage, etc.). • The Group’s planned and future construction projects are and will be
Slide 5: Contents
Contents Offering overview Company Overview 1. Accelerating US Build-out 1. Core Values & Massive Transformative Purpose 2. Denmark Update 2. Management Team 3. US Update 3. Opportunity 4. Strategy Development 4. US Salmon Market 5. Revised US Production Plan 5. US Market Potential 6. Vertical Integ
Slide 6: Accelerating US Build-out
1. Accelerating US Build-out Performance to date in DK operations and US construction management are driving business plan acceleration Annual harvest volumes (kt HOG) 220 New plan 2 Former plan New plan yields 200 ~65kt in cumulative harvest by 2026 165 140 3 1 Long term annual 120 Immediate harves
Slide 7: Denmark Update
2. Denmark Update Denmark 2019 update Performing in line with expectations Standing biomass target achieved: ~870 metric tons (rlw)1 Strong performance last twelve months Biomass gain: ~1,150 metric tons (rlw), eFCR (net feed conversion): ~1.05 Mortality as % of biomass gain: ~3.5% (~2.5% resu
Slide 8: Denmark Photos
2. Denmark Photos Denmark BluehouseTM 8.5kg salmon Salmon in grow out tank Excellent Water Quality Control 8|
Slide 9: US Update
3. US Update US 2019 update Construction milestones Freshwater quality meeting planned KPIs Post-smolt (first saline water) commissioning expected by Q3 Complete commissioning of RAS systems, ahead of biological demand Phase I construction ~90% complete by year end Finalize planning and de
Slide 10: US Photos
3. US Photos August 2018 April 2019 Roofing extended Grow out tank Start feeding tanks Post-smolt tanks Construction in progress 1.6 Million Fish, Up To Parr, Under The Roof To Date. Project Completion Remains On Schedule 10 |
Slide 11: Strategy Development
4. Strategy Development Technology innovation and existing infrastructure expected to enable accelerated production phasing Incremental capacity added: former vs new plan (kt HOG) The new plan allows for continuous build-out in smaller New capacity phasing phases expected to reduce construction co
Slide 12: Revised US Production Plan
5. Revised US Production Plan Cumulative harvest volumes (kt HOG) Cumulative Volume addition harvest New plan expected to increase cumulative harvest vs former plan 350 volumes in the amount of ~45kt (~53%) by 2024 65% ~ 59% 60% 300 ~ 53% 55% 50% 250 ~ 41% 45% ~ 36% 40% 200 35% 30% 150 25% ~ 16% 20%
Slide 13: Vertical Integration Opportunities
6. Vertical Integration Opportunities Packaging Broodstock material Sustainable Secondary power processing BluehouseTM vertical integration opportunities Feed Fertilizer Value-added Oxygen ingredients Identified opportunities expected to increase efficiency and new revenue streams, while maintaini
Slide 14: Use of Proceeds
7. Use of Proceeds Initiatives Description Use of proceeds 2019 - begin phase 2a design and pre-construction planning Advance US 2a build- 2020 - equity to construct 6 independent grow out systems out (+10kt HOG in 2021) USD 42 million 2021 - increase US projected biomass gain (rlw) from 12kt
Slide 15: Phase 2a Financing
8. Phase 2a Financing Phase 2a (10kt) capex financing sources (USDm) ~115 ~73 ~42 Contemplated equity and new Phase 2a + land equity from Additional net debt and Phase 2a capex debt is projected to construct 6 private placement1 operating cash flow and working capital additional, independent grow ou
Slide 16: Land Expansion Opportunities
9. Land Expansion Opportunities Atlantic Sapphire is targeting to acquire up to an additional 300-500 acres of land in South West Miami-Dade County that meets BluehouseTM requirements The addressable area is ~35,000 acres, zoned Atlantic Sapphire USA for agriculture, and consists primarily of nu
Slide 17: Company Overview
ATLANTIC GQ SAPPHIR Company Overview
Slide 18: Core Values & Massive Transformative Purpose
1. Core Values & Massive Transformative Purpose Core values Massive Transformative Purpose Passion – Purpose. Dedication. Drive. Performance – Initiative. Collaboration. Results. TM Pioneering Bluehouse Farming, Locally; Innovation – Continuous improvement. Insights. Learning. Transforming Protein P
Slide 19: Management
2. Management Selected board Executive management members Johan E. Andreassen Jose Prado CEO & Co-Founder CFO & EVP Headed a 30,000 tonnes capacity salmon farming company, Villa Organic, 21 years full investment cycle experience, from early stage to mid-cap from idea inception to IPO and strateg
Slide 20: Opportunity
3. Opportunity … and is experiencing high sea lice and disease management Sea farming requires 2-20 ̊C sea temperature and sheltered areas… issues Area not eligible for conventional net pen salmon farming Close to 100% of the global supply of Atlantic salmon is produced in sea The conventional i
Slide 21: US Salmon Market
4. US Salmon Market US is the single largest market for Atlantic …and the US demand for salmon is …with considerable upside potential salmon… increasing rapidly… Market size Atlantic salmon (kt)1 US Atlantic salmon demand (WFE kt)2 Salmon consumption per capita (kg/year)3 81 % implied increase in 7.
Slide 22: US Market Potential
5. US Market Potential Estimated US market size, Atlantic salmon (kt)1 US market projection, 2027 (kt)1 ~900 ~900 +7% Large addressable market at play for Sapphire and other land-raised producers 120 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Supply from Total US market conventional sea farmi
Slide 23: Global Salmon Trade Patterns
6. Global Salmon Trade Patterns1 Norway, Faroe kt Islands, Iceland Harvest 1,403 Market 54 Russia kt Harvest 34 Market 130 North America kt EU kt Harvest 190 Harvest 240 Market 595 Asia kt Market 1,142 Harvest 30 Market 615 5-8 days LatAm kt Harvest 930 Market 160 Oceania kt Harvest 83 Market 75 = H
Slide 24: Unique Value Proposition
7. Unique Value Proposition Typical conventional sea based salmon farming value chain Land-based Well boat Sea based Well boat End Processing Trucking Airfreight Trucking hatchery transport net pens transport consumer Atlantic Sapphire Miami operation value chain BluehouseTM Trucking End consumer At
Slide 25: Conventional Industry Environmental Issues
8. Conventional Industry Environmental Issues Diseases and parasites Escapes Untreated fish waste Conventional ocean net pen farming experiences a series of Impact on wild concerns salmon Medicines and pesticides Predators Micro plastics Conventional Ocean Net Pen Farming Industry Issues Are Signifi
Slide 26: ESG Leadership
9. ESG Leadership Salmon Farming Is Regarded As An ESG Leader In Protein Production1 FAIRR Index – Benchmarking intensive livestock and fish farming companies on ESG issues Salmon farmers Atlantic Sapphire Is Well Positioned To Be Top Ranked on ESG Parameters, Globally. Source: Coller FAIRR Protein
Slide 27: Location Rationale – Miami, Florida
10. Location Rationale – Miami, Florida Atlantic Ocean 1 Discharge water – Unique geology to 5¢ 10¢ sustainably discharge salt water in quantities required to scale 14¢ 2 Intake water – Highly productive aquifers Atlantic Ocean with stable, high quality salt and fresh 11¢ groundwater 7¢ 3 Electricit
Slide 28: Bluehouse Infrastructure
11. BluehouseTM Infrastructure 1 Egg hatchery 2 Juvenile tanks 4 3 Smolt tanks 4 4 Grow out tanks 6 3 5 Biofilters 5 2 1 6 Processing 7 5 7 Truck pick-up Treated, non-toxic waste water Fresh and saline discharged intake water From Egg To Plate – BluehouseTM Fully Controls Key Drivers Of Production C
Slide 29: US Water Infrastructure
12. US Water Infrastructure Unique Florida groundwater aquifer production and discharge geology Critical production wells are already Biscayne Aquifer- fresh water supply completed and tested water quality successfully 1 Onsite access to underground aquifers for fresh and saline water supply Flo
Slide 30: Summary
13. Summary Why Atlantic Sapphire Management Team Industry-leading, experienced team. Equity-linked performance culture Technology proof of concept achieved in Denmark, including considerable learning Denmark Experience from continued process improvements, as well as mistakes Commercial scale
Slide 31: Key Risk Factors (1/5)
KEY RISK FACTORS (1/5) KEY RISK FACTORS RISK FACTORS Investing in the shares ("Shares") issued by Atlantic Sapphire AS ("Company" or "Atlantic Sapphire", and together with its subsidiaries, the "Group") involves inherent risk. Investors should consider all of the information set forth in this Presen
Slide 32: Key Risk Factors (2/5)
KEY RISK FACTORS (2/5) RISK FACTORS (CONTINUED) • The Group is in an ongoing developing and commercialization process where one of the Group’s key strategies is to develop and build a land-based recirculating aquaculture system for farming of Atlantic salmon in USA. The Group has limited operating h
Slide 33: Key Risk Factors (3/5)
KEY RISK FACTORS (3/5) RISK FACTORS (CONTINUED) • The Group’s activities are subject to extensive international and national regulations, in particular relating to environmental protection, food safety, hygiene and animal welfare. The Group's activities are further subject to the Group maintaining i
Slide 34: Key Risk Factors (4/5)
KEY RISK FACTORS (4/5) RISK FACTORS (CONTINUED) • Certain global environmental organisations aim to eradicate salmon farming. Consequently, salmon farming companies such as Atlantic Sapphire may be targets for activism of various kinds with the aim to cause reputational damage or damage to productio
Slide 35: Key Risk Factors (5/5)
KEY RISK FACTORS (5/5) RISK FACTORS (CONTINUED) • The Group operates in several countries worldwide. As such, the Group is subject to changes in applicable tax laws, regulations, or tax treaties, and the interpretation thereof in the various countries in which the Group operates or earn income or ar