Prfoods As · OMXTSE:PRF1T
Prfoods As — AS PRFoods — Debt Investor Presentation (March 2020)
45 slides from Prfoods As's debt investor presentation, Mar 25, 2020
Slide 1: Company Presentation
COMPANY PRESENTATION 25.03.2020
Slide 2: Important Information
IMPORTANT INFORMATION This presentation is not a prospectus for the purposes of Regulation (EU) 2017/1129, as on a United States securities exchange. The Company does not intend to take the Company’s strategy, plans or future financial or operating performance amended (the "Prospectus Regulation") a
Slide 3: Table of Contents
TABLE OF CONTENTS 4 Executive summary 7 Overview of the Company 13 Overview of the operations 22 Overview of the market 24 PRFoods stock information 28 Overview of the financials 33 Use of proceeds and collateral 36 Overview of the terms 38 Other information 43 Contact information
Slide 4: Executive Summary and Notes' Offering Terms
EXECUTIVE SUMMARY AND NOTES’ OFFERING TERMS AS PRFoods (the „Company“, „Group“, „Issuer“) is a fish Issuer AS PRFoods farming and production company that is listed on the main Name of security PRFoods note 22.01.2025 list of Nasdaq Tallinn Stock Exchange since 5th of May 2010. Type of security Secur
Slide 5: Financial Snapshot
FINANCIAL SNAPSHOT KEY HIGHLIGHTS FROM BALANCE SHEET1 KEY HIGHLIGHTS FROM INCOME AND CASH FLOW STATEMENT1 01.07.2017- 01.07.2018- 01.07.2018- 01.07.2019- MEUR MEUR 30.06.2018 30.06.2019 31.12.2019 30.06.2018 30.06.2019 31.12.2018 31.12.2019 Revenue 94.9 85.7* 46.1 44.7 Net debt 18.1 20.5 17.8 EBITDA
Slide 6: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS PRFOODS – FARMING, PRODUCING, AND SELLING DELICIOUS FISH PRODUCTS LEADING PLAYER IN THE INDUSTRY RISK DIVERSIFICATION OPPORTUNITY FOR UNLOCKING THE POTENTIAL IN HIGH VALUE-ADDED FISH FARMING SECTOR Based on the Company’s assessment, PRFoods is.. The Company owns multiple sm
Slide 7: Overview of the Company
PRFOODS OVERVIEW OF THE COMPANY oii
Slide 8: Mission Vision
MISSION VISION PRFoods is a producer of delicious, healthy and innovative fish products. The Company PRFoods strives towards being the best and most well-known dealer of eco-friendly raw takes pride in being modern, innovative and responsible – both socially and fish and producer and seller of tasty
Slide 9: Historical Background and Company's Development
HISTORICAL BACKGROUND AND COMPANY’S DEVELOPMENT INITIAL FOCUS ON VARIOUS BUSINESS SEGMENTS INCLUDING ICE CREAM, FROZEN FOOD, AND FISH 2003 2005 2006 2007 2008 2009 2010 Acquisition of 32.25% holding in Acquisition of Heimon Kala Oy by Establishment of Saaremerekala AS Saaremerekala AS acquired Estab
Slide 10: The Group's Legal Structure
THE GROUP’S LEGAL STRUCTURE TO ACCELERATE GROWTH AND EXPAND INTERNATIONALLY THE GROUP HAS EVOLVED VIA ACQUISITIONS AS PRFoods Group holding company Saaremere Kala AS Fish group holding company 100% Heimon Kala Oy1 Vettel OÜ Redstorm OÜ2 Avamere Kalakasvatus OÜ3 JRJ & PRF Ltd Fish farming, production
Slide 11: Scope of the Business Activities: Wide Geographical Range
SCOPE OF THE BUSINESS ACTIVITIES: WIDE GEOGRAPHICAL RANGE WITH FISH FARMING AND PRODUCTION TAKING PLACE IN VARIOUS LOCATIONS, GROUP’S SALES KNOW-HOW REACHES FROM EUROPE TO ASIA AND NORTH-AMERICA Fish farming Acquiring fresh fish EMPLOYEES PER AREA OF ACTIVITY EMPLOYEES PER COUNTRY Fish farming Produ
Slide 12: Key Personnel
KEY PERSONNEL A TEAM WORKING TOGETHER TO ENSURE THE COMPANY’S SUSTAINABLE DEVELOPMENT IN ACCORDANCE WITH SET OBJECTIVES AND STRATEGY INDREK KASELA MAARJA KENS JARKKO ALHO CEO CFO COO Experience: Experience: Experience: Chairman of the Supervisory Board at Premia Foods AS Operations Manager at Global
Slide 13: Overview of the Operations
OVERVIEW OF THE OPERATIONS 13
Slide 14: Business Model: Control Over the Whole Value Chain
BUSINESS MODEL: CONTROL OVER THE WHOLE VALUE CHAIN THE COMPANY IS VERTICALLY INTEGRATED BY BEING IN FISH FARMING, PROCESSING, AND SALES. THIS GIVES PRFOODS A COMPETITIVE ADVANTAGE BY ENABLING THEM TO EXERT CONTROL OVER FARMING AND TREATING PRACTICES, WHICH IN TURN RESULTS IN HIGH-QUALITY PRODUCTS AS
Slide 15: PRFoods Fish Farms: Diversifying Risk
PRFOODS FISH FARMS: DIVERSIFYING RISK BY KEEPING THE FISH POPULATION AT AN OPTIMUM LEVEL SMALL SIZE, GEOGRAPHICAL DIVERSIFICATION, NO USE OF ANTIBIOTICS AND LOW MORTALITY RATES ARE THE MAIN FEATURES AND ADVANTAGES OF THE GROUP’S FISH FARMS, ACCORDING TO PRFOODS’ OPINION. WHILE THE FIRST TWO OF THESE
Slide 16: Development Potential in Fish Farming
DEVELOPMENT POTENTIAL IN FISH FARMING FOCUS ON INCREASING FISH FARMING CAPACITY EBITDA FROM OPERATIONS/HARVESTED FISH, EUR/KG • The total harvested volume in the financial year 2018/2019 was about 1,900 tonnes, 3 During the 6 months of the financial year 2019/2020 a total of 1,796 tonnes of fish was
Slide 17: Production Facilities
PRODUCTION FACILITIES LIST OF PRFOODS PRODUCTION FACILITIES Heimon Kala Oy 1 Kokkola, Finland Renko, Finland John Ross Jr & Coln Valley Vettel OÜ United Kingdom Saaremaa, Estonia 17 1 Trio Trading Ab Oy has merged with Heimon Kala on 31 January 2020
Slide 18: Brands: Portfolio Including Award-Winning Brands
BRANDS: PORTFOLIO INCLUDING AWARD-WINNING BRANDS Heimon products were listed as Seafood Excellence finalists in 2019 in Brussels, where John Ross (Aberdeen) Ltd has been awarded a Royal Warrant by appointment to Her only 37 finalists were chosen from 12 countries around the world. The annual product
Slide 19: Renown Brands: Heimon and John Ross
RENOWN BRANDS: HEIMON AND JOHN ROSS THE GROUP’S MAIN FINNISH BRAND IS “HEIMON” THAT IS GRADUALLY INTRODUCED TO JOHN ROSS JR (ABERDEEN) LTD, A PRODUCER OF PREMIUM QUALITY SMOKED SALMON THE ESTONIAN RETAIL MARKET AS WELL PRODUCTS IN TRADITIONAL RED BRICK KILNS DATING BACK TO 1857 Heimon Kala is a fish
Slide 20: Breakdown of the Sales
BREAKDOWN OF THE SALES: A MIX OF DIFFERENT PRODUCT SEGMENTS AND DIFFERENT GEOGRAPHICAL MARKETS THE GROUP IS IN A PROCESS OF RESTRUCTURING ITSELF TOWARDS HIGHER VALUE-ADDED PRODUCTS THAT LED TO REDUCTION OF SALES OF LOWER MARGIN PRODUCTS IN 2018/2019 Sales revenue by country, M EUR Sales revenue by p
Slide 21: Environmental Responsibility: Sustainability at the Core
ENVIRONMENTAL RESPONSIBILITY: SUSTAINABILITY KEPT AT THE CORE OF GROUP’S STRATEGY The Company is aware of the environmental impact of materials are friendly to the environment. Among other the fish industry, therefore they take steps necessary to things, the Group is committed to improving sustainab
Slide 22: Overview of the Market
PRFOODS [= lu S2 a x = Ww x= = uw fo) = uw => a wi > fe) 22
Slide 23: Export Prices of Fish: Determined by the Global Market
EXPORT PRICES OF FISH: DETERMINED BY THE GLOBAL MARKET The fish industry is extremely dependent on availability Therefore, the world market fish supply is relatively rigid and the price of raw fish in the short-term, while demand is somewhat shifting FLUCTUATIONS OF THE PRICES OF RAW FISH depending
Slide 24: PRFoods Stock Information
PRFOODS STOCK INFORMATION 24
Slide 25: Dynamics of the Share Price Since the Listing
DYNAMICS OF THE SHARE PRICE SINCE THE LISTING SINCE THE LISTING OF ITS SHARES ON THE STOCK EXCHANGE, THE COMPANY HAS PAID TO ITS SHAREHOLDERS IN TOTAL OF 17.3 MILLION EUROS - IN THE FORM OF DIVIDENDS AND SHARE CAPITAL REDUCTIONS PRFoods has twice reduced the nominal value of shares (nominal value of
Slide 26: Dynamics of the Share Price: 01.01.2018–31.12.2019
DYNAMICS OF THE SHARE PRICE: 01.01.2018–31.12.2019 THE REGISTERED SHARE CAPITAL OF THE COMPANY IS 7,736,572 EUROS, WHICH ARE DIVIDED INTO 38,682,860 ORDINARY SHARES WITHOUT NOMINAL VALUE. ALL SHARES ARE FREELY TRANSFERABLE AND OF THE SAME KIND, I.E., HAVE EQUAL VOTING AND DIVIDEND RIGHTS STOCK PRICE
Slide 27: Shareholders of PRFoods
SHAREHOLDERS OF PRFOODS 31.12.2019 No. of shares 31.12.2019 % of total 31.12.2019 No. of shares 30.06.2019 % of total 30.06.2019 Change ING Luxembourg S.A. (Nominee account) 24,258,366 62.71% 24,258,366 62.71% - Lindermann, Birnbaum & Kasela OÜ 1,604,623 4.15% 1,593,623 4.12% 11,000 Ambient Sound In
Slide 28: Overview of the Financials
OVERVIEW OF THE FINANCIALS 28
Slide 29: Financial Development
FINANCIAL DEVELOPMENT: IN THE RUN-UP TO POST-ACQUISITION INTEGRATION AND SYNERGY REALIZATION DEVELOPMENTS IN SALES AND PROFITABILITY ACHIEVEMENTS IN 2018/2019 M EUR 1 Revenue (left scale) Gross margin (right scale) Operational EBITDA margin (right scale) 35 35,0% Improvement in the operational cash
Slide 30: Income Statement
INCOME STATEMENT LAUNCHED SYNERGY AND COST-CUTTING PROGRAM TO IMPROVE PFOFITABILITY SEASONALITY OF THE BUSINESS AND COST SAVINGS The fluctuations in sales volumes within a year are affected Thousand EUR 01.01.2017- 01.07.2018- 01.07.2018- 01.07.2019- by the seasonality consumption behavior of consum
Slide 31: Balance Sheet
BALANCE SHEET RECENTLY DECREASED BORROWINGS AMOUNT LEVERAGE As of 30.06.2019 net debt stood at 20.5 M EUR and the net Thousand EUR debt to operational EBITDA was 5.1. 30.06.2018 30.06.2019 31.12.2019 The increase in net leverage was to a large extent caused by Audited Audited Unaudited weak results
Slide 32: Cash Flow
CASH FLOW ENHANCED INVENTORY MANAGEMENT IMPROVING OPERATIONAL CASH FLOW INVENTORIES Differences in the 12 months cash flow from investment and financing activities in the last two financial years are explained by large-scale acquisitions financed with investment loans in 2017. 2017/2018 12m 2018/201
Slide 33: Use of Proceeds and Collateral
USE OF PROCEEDS AND COLLATERAL 33
Slide 34: Use of Proceeds
USE OF PROCEEDS THE PROCCEDS OF THE OFFERING WILL BE USED TO REFINANCE EXISTING DEBT LIABILITIES AND FOR INVESTMENTS INTO FISH FARMS IN FINLAND, SWEDEN AND ESTONIA USE OF PROCEEDS OF THE FIRST TRANCHE 9.1 The net proceeds1 of the First Tranche First Tranche of the Notes of the Notes were approximate
Slide 35: Overview of the Collateral
OVERVIEW OF THE COLLATERAL SECURED NOTES INVESTORS WILL OBTAIN FIRST AVAILABLE RANK AFTER SEB PANK AND A FIRST RANKING PLEDGE OVER 85.0149% OF THE SHARES OF THE UK SUBSIDIARY Share pledge Name of the pledgor: Saaremere Kala AS, Name of the pledgor: Saaremere Kala AS, Name of the pledgor: Heimon Kala
Slide 36: Final Terms of the Notes
PRFOODS FINAL TERMS OF THE NOTES 36
Slide 37: Overview of the Notes Terms
OVERVIEW OF THE NOTES TERMS Issuer AS PRFoods Legal & administrative Incorporation country Estonia Financial adviser Redgate Capital AS Co. Reg. nr 11560713 Legal adviser Advokaadibüroo COBALT OÜ LEI code 529900PFXFO2ZDCRNK93 Issuer’s group webpage https://www.prfoods.ee/ Collateral agent SPV under
Slide 38: Other Information
PRFOODS OTHER INFORMATION 38
Slide 39: Overview of the Risk Factors: Key Risks Specific to the Issuer (1)
OVERVIEW OF THE RISK FACTORS KEY RISKS SPECIFIC TO THE ISSUER (1) Investing in the Notes entails various risks. A number of risk factors and uncertainties may adversely affect the Group. If any of these risks or uncertainties actually occurs, it could have a material adverse effect on the business,
Slide 40: Overview of the Risk Factors: Key Risks Specific to the Issuer (2)
OVERVIEW OF THE RISK FACTORS KEY RISKS SPECIFIC TO THE ISSUER (2) Epidemic Diseases Food industry in general is affected by the occasional spread of epidemic diseases as has been demonstrated by the spread of bovine spongiform encephalopathy (commonly known as mad-cow disease), avian influenza (comm
Slide 41: Overview of the Risk Factors: Key Risks Specific to the Notes Issue (1)
OVERVIEW OF THE RISK FACTORS KEY RISKS SPECIFIC TO THE NOTES ISSUE (1) Early Redemption Risk In accordance with the Terms, the Notes may be redeemed prematurely on the initiative of the Issuer. In such event, the rate of return from an investment into the Notes may be lower than initially anticipate
Slide 42: Overview of the Risk Factors: Key Risks Specific to the Notes Issue (2)
OVERVIEW OF THE RISK FACTORS KEY RISKS SPECIFIC TO THE NOTES ISSUE (2) Collateral Agent Risk The Noteholders shall not have any independent power to enforce the Collateral or to exercise any rights or powers arising under the Collateral Agreements. A failure on part of the Collateral Agent to perfor
Slide 43: Contact Information
PRFOODS CONTACT INFORMATION 43
Slide 44: Contact Information
CONTACT INFORMATION FOR ADDITIONAL INFORMATION ABOUT THE NOTES OFFERING PLEASE PRFOODS AS CONTACT REDGATE CAPITAL, A FINANCIAL ADVISER FOR THE ISSUE Andrei Zaborski Phone: +372 50 63 680 E-mail: Andrei.Zaborski@redgatecapital.eu Kristjan Petjärv Indrek Kasela Phone: Phone: +372 506 4642 +372 53 826
Slide 45: PRFoods
PRFOODS