Slide 1: Arctic Fish Q3'22 Presentation
Arctic Fish Q3’22 Presentation 16th of November 2022
Slide 2: Disclaimer
Disclaimer Cautionary note regarding forward-looking statements This presentation is the managements summary of the 3rd 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 Key features 4 Growth projects 5 Outlook and summary
Slide 4: Highlights in Q3'2022
Highlights in Q3’2022 Solid biological performance and output targets surpassed Smolt output in 2022 at 3,9 million smolt and overall structure and long-term growth maintained as planned, with 2 new farming areas this year. Farming Operational EBIT of 9.8 NOK pr. kg Slightly lower than the Farming O
Slide 5: Operational KPI's
Operational KPI’s Harvested volumes Revenue Operational EBIT pr. Kg (Farming) In thousand tonnes, HOG MNOK NOK pr. kg 8,5 485,5 7,2 429,6 19,9 -15% 13% 10,6 9,8 2,9 161,0 8,2 2,0 116,0 143% 2021 YTD 2022 YTD Q3'21 Q3'22 2021 YTD 2022 YTD Q3'21 Q3'22 2021 YTD 2022 YTD Q3'21 Q3'22 ▪ Arctic Fish has ha
Slide 6: Agenda
1 Highlights for the period 2 Operational performance & Group financials 3 Key features 4 Growth projects 5 Outlook and summary
Slide 7: Operational performance
Operational performance Operational EBIT pr. kg turns downward for the first Operational Farming EBIT of 9.8 NOK pr. kg has time this year developed negatively YoY due to the following factors Salmon prices in the quarter impact the operational EBIT Price achievement increased by 3.9 NOK pr. kg. pos
Slide 8: Stable and strong cost performance over time
Stable and strong cost performance over time Production cost development from 2021 and onwards NOK pr. kg (HOG) Harvesting, packing & Wellboat COGS 49,1 47,7 46,5 46,5 45,1 44,5 12,7 38,8 12,5 9,0 12,0 12,7 10,0 8,9 36,1 35,2 36,4 34,5 34,6 33,7 29,9 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 1 Biolo
Slide 9: Profit and loss
Profit and loss ▪ Operating revenues of 116 MNOK. Key figures from P/L ▪ Operational EBIT of 17.2 MNOK. ▪ Harvested volume of 1,968 tonnes (YoY 32% decrease). KEY FIGURES Q3 Q3 YTD YTD ▪ Negative fair value adjustment of -10.7 MNOK due to (NOK '000) 2022 2021 2022 2021 decreased forward prices. Oper
Slide 10: Financial position
Financial position ▪ Total assets increased by 294.3 MNOK from the prior period (Q2’2022). ▪ Receivables increased by 97.6 MNOK from the prior period (Q2’2022). ▪ Biological assets and other inventories increased by 71.8 MNOK from the prior period (Q2’2022). ▪ Property, plant, and equipment increase
Slide 11: NIBD development and financial covenants
NIBD development and financial covenants NIBD development (MNOK) Alternate performance measures (APM) Net interest bearing debt (NOK '000) 30.09.2022 30.06.2022 30.09.2021 Reported long-term interest-bearing debt 536.550 359.477 201.720 Reported short-term interest-bearing debt 105.080 40.406 36.621
Slide 12: CAPEX
CAPEX Ongoing investments Planned capital expenditure going forward ▪ We are committing to our growth plan with extensive investments Actual Capital Expenditures (MNOK) in our Smolt Production capacity and in a Harvesting facility. Planned Capital Expenditures (MNOK) ▪ Both investments are aimed at
Slide 13: 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. ▪ 150 MNOK smolt expans
Slide 14: Agenda
Agenda 1 Highlights for the period 2 Operational performance & Group financials 3 Key features 4 Growth projects 5 Outlook and summary
Slide 15: A robust and strong sustainability profile
A robust and strong sustainability profile Certifications 100% First of its kind hi-tech smolt facility ✓ with 100% green energy1 All Icelandic attributes preserved; low All sites ASC certified sea temperature and density No antibiotics have ever been used on ▪ All fish sold and all sites in use hav
Slide 16: Licenses enabling growth and production potential
Licenses enabling growth and production potential Licenses and applications are well positioned for future growth with locations in different fjords Current license applications In thousand tonnes (MAB) 31.9 I Ísafjarðardjúp 4.8 Additional license for 4.800 tonnes 27.1 5.31 I ▪ Handed in an applicat
Slide 17: Markets and sales
Markets and sales ▪ The markets for salmon saw a substantial decline in strength from the previous quarter, this can be traced back to increased supply, large global harvesting quantities and Price achievement development general stabilization on markets. ▪ Despite the solid market conditions the pr
Slide 18: Agenda
Agenda 1 Highlights for the period 2 Operational performance & Group financials 3 Key features 4 Growth projects 5 Outlook and summary
Slide 19: Smolt expansion in Tálknafjörður
Smolt expansion in Tálknafjörður Commentary ▪ Two-step plan to increase tank volume with 7,500m3 and increase smolt capacity to 5 million smolt. ▪ It is expected that the expansion will be completed in the end of Q2’2023. ▪ Total cost is estimated to 260 MNOK. ▪ Total investment will strengthen the
Slide 20: Harvesting facility in Bolungarvik
Harvesting facility in Bolungarvik Commentary Design ▪ Project going forward on full speed with the aim of finishing in Q2’2023. ▪ The facility will fulfil Arctic Fish needs with additional possibilities to service others as well, with a potential short-term capacity of 60 thousand tonnes. ▪ Strateg
Slide 21: Agenda
Agenda 1 Highlights for the period 2 Operational performance & Group financials 3 Key features 4 Growth projects 5 Outlook and summary
Slide 22: Harvesting estimates
Harvesting estimates Harvesting volumes and forecast In thousand tonnes, HOG • Arctic Fish continues developing according to its growth plan but harvesting quantities in 2022 are affected by the 14,1 mortality incident occurred in Q1’2022. 11,5 • Harvesting volumes in 2022 are expected to be 18% low
Slide 23: Appendix: Group financials
Appendix: Group financials pecticFish
Slide 24: Group income statement
Group income statement CONSOLIDATED INCOME STATEMENT Q3 Q3 YTD YTD FY (NOK 000) 122 2021 2021 2021 Operating revenues 116.000 161.000 485.526 429.642 595.895 Cost of goods sold 27.642 68.516 186.539 208.457. 299.189 Salaries 16.461 17.253 50.056 42.624 54.151 Depreciation 13.822 11.961 39.671 33.562
Slide 25: Statement of the financial position
Statement of the financial position
Slide 26: Statement of equity
Statement of equity STATEMENT OF EQUITY 30.9.2022 Equity allocated to parent com pany shareholders Share Accum ulated (NOK '000) Share capital prem ium earnings Total equity Equity at 01.01.2022 31.877 1.001.740 -58.109 975.508 Total com prehensive incom e 0 0 610 610 Transactions w ith shareholders
Slide 27: Group cash flow statement
Group cash flow statement STATEMENT OF CASH FLOW Q3 Q3 YTD YTD FY (NOK "000) 2022 2021 2022 2021 2021 Operational EBIT 17.236 26.904 8.081 ‘59.414 86.944 Adjusted for: Depreciation 13.822 11.961 33.562) 46.501 Production tax -1.676 818 -3.054 -3.843 Change in inventories/biological assets 82456 8 -3
Slide 28: Appendix: Ownership structure - Shareholders
Appendix: Ownership structure - Shareholders
Slide 29: Shareholders
Shareholders Ownership structure: The largest 20 shareholders as of 30.9.2022* Rank Name # of shares % ownership 1 NORWAY ROYAL SALMON ASA 16.346.824 51,28% 2 J.P. Morgan Bank Luxembourg S.A.** 12.925.224 40,55% 3 Landsbankinn hf. 481.567 1,51% 4 KVERVA FINANS AS 258.000 0,81% 5 CLEARSTREAM BANKING
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