Proximar Seafood As · OSL:PROXI
Proximar Seafood As — Q2 2024 Earnings Presentation
35 slides from Proximar Seafood As's earnings presentation, Aug 23, 2024
Slide 1: Presentation of Q2 and H1 2024
Company Presentation Presentation of Q2 and H1 2024 23.08.2024 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 “Proximar aims to be a leading Company Presentation provider of sustainably produced seafood by setting the standard for land-based aquaculture” Ole Christian Willumsen CFO 3 3
Slide 4: Proximar at a glance – approaching first harvest, stable production
Proximar at a glance – approaching first harvest, stable production Norwegian company operating a land-based RAS facility for production of Atlantic salmon in Japan Local production in Well-performing • Long-term sales and distribution agreement robust system with Marubeni Corporation – first sales
Slide 5: Highlights of the 2nd quarter 2024 – first sales agreement secured
Highlights of the 2nd quarter 2024 – first sales agreement secured, confirming price premium for Proximar products Continuing transfer of fish to the grow-out building • Continuing transfer of biomass to the grow-out building, stable performance, low mortality • 2 of 4 modules in operation, last 2
Slide 6: Proximar continuing its progress – biomass more than tripled
Proximar continuing its progress – biomass more than tripled and approaching first sales in September Important key metrics: Biomass development # batches in production # Proximar employees Company Presentation 360 15 45 12 38 10 33 7 26 40 112 12 30/09/2023 31/12/2023 31/03/2024 30/06/2024 30/09/20
Slide 7: Sales and marketing
Sales and marketing First sales agreement with high quality customer, more agreements expected in the near future • In end of June, Marubeni Seafoods (“Marubeni”) reached an agreement with a high-quality customer, specializing in seafood • Pricing agreed, confirming the premium potential Proximar ha
Slide 8: Production update: Stable production and low mortality
Production update: Stable production and low mortality Growth curves for Proximar’s first batches Proximar’s biomass development Compared to Skretting growth model, figures in grams In metric tonnes, live weight Steady growth performance and low During July and August, feeding has been mortality con
Slide 9: Post-smolt grow-out facility provides stable water quality, but turbidity issue
The post-smolt grow-out facility provides stable water quality, but has lately experienced an issue related to turbidity 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
Slide 10: Cost for importing Norwegian Atlantic salmon to Japan
The cost for importing Norwegian Atlantic salmon to Japan averaged NOK 137/kg in Q2 2024 – currently at levels around NOK ~115/kg Cost development for import of Norwegian fresh Atlantic salmon in Japan Figures in NOK/kg, head-on-gutted 164 157 155 5 147 5 5 147 5 145 142 142 141 5 5 140 5 5 136 5 13
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: Financial summary 2nd quarter 2024
Financial summary 2nd quarter 2024 P&L Q2 2024 Q2 2023 2023 Revenue and other income 0 0 6 Earnings before tax Operating expenses -12 250 -13 554 -63 771 develop as planned with Net financials - 13 547 - 140 -26 944 growing operational Earnings before taxes -25 798 -13 694 -90 709 activity, includin
Slide 13: Update on completion of the facility & equipment installation and financing
Update on completion of the facility & equipment installation and financing Proximar is finalizing equipment installations, to complete all modules and related infrastructure at the facility • The two last modules in the grow-out building will be installed and completed in Q3 and Q4. This will enabl
Slide 14: Summary and outlook
Summary and outlook Summary: First sales agreement secured confirming price premium potential and value of local production in Japan Production continues to show steady growth, low mortality and stable water quality Staffing in-line with production plan, internal training program to secure transfer
Slide 15: Q&A
Company Presentation 1 Q&A
Slide 16: Appendix: Consolidated Financial Statement Q2 and 1H 2024
Company Presentation Appendix: Consolidated Financial Statement Q2 and 1H 2024 1 PRIVATE AND CONFIDENTIAL
Slide 17: 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 report gives a true and fair view of the January through 30 June 2024 to the best of our knowledge have been main events during the accounting period and thei
Slide 18: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income (Amounts in NOK 1.000) Note Q2 2024 Q2 2023 2023 Other income - 0 6 Revenue and other income - 0 6 Cost of materials 7 749 1 295 5 930 Changes in biomass 2 -16 619 -3 851 -17 772 Net fair value adjustment biomass 2 -8 129 - - Personnel expenses 9 666 7
Slide 19: Consolidated statement of financial position
Consolidated statement of financial position (Amounts in NOK 1.000) 30 June 30 June EQUITY AND LIABILITIES Note 2024 2023 2023 Equity ASSETS Share capital 6 14 217 5 905 5 967 Share premium reserve 458 588 430 439 366 597 Non-current assets Other equity 19 591 20 495 19 591 Translation differences -
Slide 20: Consolidated statement of changes in equity
Consolidated statement of changes in equity Share Share premium (Amounts in NOK 1.000) Translation 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 21: Consolidated statement of cash flows
Consolidated statement of cash flows Amounts in 1.000 NOK Note Q2 2024 Q2 2023 2023 Cash flow from operating activities Loss before tax -25 798 -13 694 -90 709 Income taxes paid - -10 - Depreciation 10 271 3 133 15 270 Change other receivables - - - Gain from sales of fixed assets - -6 -6 Net fair v
Slide 22: Summary of significant accounting policies
Note 1 - Summary of significant accounting policies The Proximar Seafood group is a 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, th
Slide 23: Biological assets (1/4)
Note 2 – Biological assets (1/4) 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 24: Biological assets (2/4)
Note 2 – Biological assets (2/4) Amounts in 1.000 NOK Tonnes Count Volume of biological assets 30 June 2024 31 March 2024 2023 30 June 2024 31 March 2024 2023 Biological assets beginning of period 112 40 0 1 277 876 1 135 907 250 995 Increase due to production 248 82 40 347 866 191 836 884 912 Reduc
Slide 25: Biological assets (3/4)
Note 2 – Biological assets (3/4) Amounts in 1.000 NOK Reconciliation of changes in the carrying amount of biological assets 2023 Carrying amount as of 1 January 2 868 Cost to stock in period 1 January to 31 March* 5 070 Currency translation differences 151 Total carrying amount of biological assets
Slide 26: Biological assets (4/4)
Note 2 – Biological assets (4/4) Amounts in 1.000 NOK Specification of biological assets Number of fish Biomass Cost of Fair value Carrying Biological assets (1000) (tonnes) production *** adjustment ** amount Smolt 1 143 22 13 525 13 525 Non-harvestable fish (>0,1 kg) 483 339 29 108 10 107 39 214 T
Slide 27: Land, property, plant and equipment (1/2)
Note 3 - Land, property, plant and equipment (1/2) (Amounts in NOK 1.000) Split between Right-of-use assets and owned assets: 30 June 2024 30 June 2023 2023 Carrying amount RoU-assets 6 048 1 635 922 Carrying amount owned assets 1 248 872 1 039 884 1 278 387 Total property, plant and equipment incl.
Slide 28: Land, property, plant and equipment (2/2)
Note 3 - Land, property, plant and equipment (2/2) Assets under Equipment and Year ended 31 December 2023 construction Land Buildings RAS vehicles Total Cost at 30 June 2023 820 138 93 702 47 352 62 907 23 466 1 047 566 Additions in Q3 and Q4/reclassifications * -459 842 584 028 108 854 41 233 274 2
Slide 29: Leasing (1/2)
Note 4 – Leasing (1/2) Amounts in NOK 1,000 Proximar Seafood AS leasing agreements consists of buildings and equipment used in the administration. The leasing contract of buildings has a duration until 31 May 2024. Proximar Ltd. leasing agreements consists of buildings, vehicles and equipment used f
Slide 30: Leasing (2/2)
Note 4 – Leasing (2/2) Amounts in NOK 1000 Year ended 30 June 2023 Property Vehicles Equipment Total Cost at 1 January 2023 3 359 819 4 178 Currency effect -161 -40 -202 Cost at 30 June 2023 3 198 779 3 977 Accumulated depreciation at 1 January 2023 1 457 210 1 667 Depreciation in Q1 and Q2 2023 579
Slide 31: Earnings per share
Note 5 - Earnings per share Amounts in NOK Q2 2024 Q2 2023 2023 Profit (loss) for the year -31 809 075 -24 198 701 -93 344 517 Weighted average number of outstanding shares during the year 142 172 780 49 618 356 52 187 041 Earnings (loss) per share - basic and diluted (in NOK) -0,22 -0,49 -1,79 Comp
Slide 32: Share capital and shareholders (1/2)
Note 6 - 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 30 June 2024. All shares carry equal rights. The movement in the number of shares during the year was as follows: 30 June 2024 2023 Ordinary shar
Slide 33: Share capital and shareholders (2/2)
Note 6 - Share capital and shareholders (2/2) List of main shareholders at 30 June 2024 30 June 2024 Number of Ownership Shareholder shares percentage Grieg Kapital AS 15 480 049 10,9 % Nordfjord AS 9 800 000 6,9 % Six SIS AG 7 900 000 5,6 % Myrlid AS 7 757 393 5,5 % Kvasshøgdi AS 7 244 844 5,1 % Co
Slide 34: 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 wi th new maturity date, 31 December 2025. The outstanding principal of JPY 750.000.000 shall be pai
Slide 35: 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 30 June 2024 Non-current bullet credit facility 49 712 - 49 712 Long term loan to financial institution 583 282 - 583 282 Long term loan 104 200 - 104 200 Convertibl