Salmones Camanchaca SA · BCS:SALMOCAM
Salmones Camanchaca SA — Camanchaca — Q3 2017 Earnings Presentation
24 slides from Salmones Camanchaca SA's earnings presentation, Nov 21, 2017
Slide 1: November 21, 2017
November 21, 2017
Slide 2: Good Northern Pelagic Catches
Good Northern Pelagic Catches North: Normalization of temperatures at sea; abundant biomass near Iquique; low costs. Thousands of tons 140- 49 52 145 34 18 11 34 1 7 5 2016 2017 2016 2017 2016 2017 2016 2017 E 2016 2017 E Q1 Q2 Q3 Q4 Year Northern catches include own and third parties Industrial anc
Slide 3: South-Central Pelagic Catches
South-Central Pelagic Catches J. Mackerel: Normal fishing conditions vs very favorable conditions in 2016. Sardine: Normalization in 8th region. Third parties catches doubled as of September. Jack Mackerel Thousands of tons Sardine (own) 110-115 106 Sardine (third parties) 12 57 50 23 2 22 28 10 21
Slide 4: Fishmeal Price
Fishmeal Price As of September, prices down due to higher quotas and catches in Peru. US$ / ton (Camanchaca) Peru’s Fishing Quota (North-Centre Region): Nov to Jan: May to Jul: Nov to Jan: May to Jul: Nov to Jan: May to Jul: Nov to Jan: 1.5 M Ton 2.6 M Ton 1.1 M Ton 1.8 M Ton 2.0 M Ton 2.8 M Ton No
Slide 5: Camanchaca Diesel Price (US$/lt)
Camanchaca Diesel Price (US$/lt) Diesel Oil Price (US$ / lt) 0.84 0.84 0.82 0.70 0.54 0.54 0.49 0.43 0.44 0.42 0.39 0.41 0.41 0.37 0.30 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 As of September 2017: • At constant volume,
Slide 6: Stocks
Stocks (valued at cost) As of September, decrease of fishmeal inventories (US$ 1,095 / ton). Increase in mussels (US$ 2.5 / kg) compared to September 2016 September 30, 2017 December 31, 2016 September 30, 2016 December 31, 2015 Months of VOLUME ThUS$ VOLUME ThUS$ VOLUME ThUS$ VOLUME ThUS$ Productio
Slide 7: Atlantic Salmon Price
Atlantic Salmon Price Normalization in prices due to higher Chilean harvests in H2 with an estimated increase of ~4% in world supply in 2017. Lower harvests in Q1-17 due to Bloom 2016 and lower smolt stocking in 2015. Harvest (Thousands of Tons WFE) Price (US$ / Kg WFE) 2016 2017 6.5 Δ+16% 7.5 7.1 5
Slide 8: Atlantic Salmon Price: Long-term trend
Atlantic Salmon Price: Long-term trend Large devaluation in major Urner Barry Equivalent Trim C 2-3 (US$/Lb) markets and non-tariff restrictions Algae bloom Overshooting recovery ISA Virus post ISA 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 nov-17 jul-06 jan-04 jul-04 jan-05 jul-05 jan-06 jan-07 jul-07
Slide 9: Chilean Salmon Price Expectation until Sep-18
Chilean Salmon Price Expectation until Sep-18 Urner Barry Trim C 2-3, market spot USD/Lb 6.50 6.00 5.50 5.00 4.50 4.00 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Fishpool Index Forwards Based Model Adjusted By: • Seasonal Historical Demand in the USA • US vs Europea
Slide 10: Atlantic Salmon: Return of the raw material (relative performance)
Atlantic Salmon: Return of the raw material (relative performance) Camanchaca vs Market (Salmonex, January 2015 = Base 100) Urner Barry Salmonex Camanchaca 200 180 160 140 120 100 80 60 40 20 0 Apr-15 Apr-16 Apr-17 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Oct-15 Oct-16 Sep-17 Lag in months with str
Slide 11: Salar Stocking in Chilean Industry
Salar Stocking in Chilean Industry Salar Stocking January to September (mill. of smolts), 10th, 11th and 12th región +4% 106 104 101 +5% 100 100 100 80 2012 2013 2014 2015 2016 2017 Source: Undersecretariat for Fisheries and Aquaculture 11
Slide 12: Salar Stocking and Stocking Plans: 10th and 11th regions
Salar Stocking and Stocking Plans: 10th and 11th regions Salar Stocking previous cycle vs post new regulation cycle (mill. of smolt) Previous Cycle Current Cycle +9% (same neighborhoods) (considers new regulation) 25.0 156 143 20.0 15.0 Considers neighborhoods opened between Sep-16 and Sep-17 10.0 5
Slide 13: History and Projection of Harvests and smolt stocking in Camanchaca
History and Projection of Harvests and smolt stocking in Camanchaca Harvests (Thousands of Tons WFE) Atlantic salmon from current active sites Atlantic salmon from previously leased sites Trout 64 64 56 58 58 51 41 43 36 39 2014 2015 2016 2017 E 2018 E 2019 E 2020 E 2021 E 2022 E 2023 E Includes one
Slide 14: Salar Health Conditions in Camanchaca
Salar Health Conditions in Camanchaca (closed cycle) Q1-16 affected by harmful algae bloom (HAB) event. Favorable sanitary conditions starting in Q2-16 Mortality 2015 2016 2017 64.3% 36.8% 19.2% 14.2% 12.9% 10.9% 8.7% 5.5% 9.0% 5.5% 9.5% 7.0% 5.4% 5.4% 4.2% E E Q1 Q2 Q3 Q4 Year Economic Feed Convers
Slide 15: Atlantic Salmon Costs
Atlantic Salmon Costs Q4-15 and H1-16 affected by SRS and low oxygen conditions in the 10th region. Q2-17 affected by harvests coming from third-party-hatchery smolts. Q3-17: downward costs. Atlantic Salmon - Liveweight ex-cage cost (US$ / kg) Feed OPEX Smolt Labor Medicine Others 3.66 3.75 3.34 2.9
Slide 16: Development of Atlantic Salmon Margins
Development of Atlantic Salmon Margins Back to positive margins in Q2-16 increased in H2-16 Q2-17 affected by harvests coming from third-party-hatchery smolts Raw Material Cost and RMP (Raw Material Return) 10th region sites 11th region sites Base 100 = RMP January 2014 130 Leptepu Puelche Leptepu P
Slide 17: Development of Atlantic Salmon Margins
Development of Atlantic Salmon Margins EBIT (US$/Kg WFE) before Fair Value in the Salmon business Atlantic Salmon Business EBIT without trout joint venture 3.0 2.5 2.0 1.29 1.5 0.91 1.0 0.50 0.5 0.0 -0.24 -0.5 -1.0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 20
Slide 18: Results January – September
Results January – September (US$ million) 2016 2017 Profit/Loss 23.8 26.2 21.2 15.8 -0.7 -1.6 -3.3 -7.2 Fishing Salmon Other Seafood TOTAL EBITDA (before Fair Value) 42.2 36.5 16.5 12.4 3.6 6.6 0.5 -1.0 Fishing Salmon Other Seafood TOTAL 18
Slide 19: Last mobile quarters development
Last 4 mobile quarters development EBITDA Revenues X% EBITDA/Revenues 496 489 488 487 485 483 479 470 462 13.3% 453 13.4% 454 12.4% 12.0% 446 439 11.4% 12.9% 66.1 10.2% 64.0 60.0 58.7 10.0% 58.5 55.4 47.1 6.7% 45.1 4.9% 3.0% 32.8 2.3% 21.6 1.8% 14.5 10.1 8.7 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q
Slide 20: Last mobile quarters development
Last 4 mobile quarters development 163 184 179 161 169 146 147 141 33.1 126 121 123 22.6 29.0 27.3 107 105 FISHING 18.8 15.7 18.9 15.6 6.7 -6.9 -9.7 -5.7 -4.0 Total 353 352 Revenues 328 330 299 302 288 279 275 Own 260 263 263 269 Revenues SALMON 233 247 242 223 202 EBITDA 63.6 68.7 38.2 31.5 27.5 25
Slide 21: Salmones Camanchaca: IPO Process
Salmones Camanchaca: IPO Process Corporate Reorganization of Salmones Camanchaca: Extraordinary shareholders meeting on September 14, 2017 Capital increase amount: US$ 38,579,359 Issuance of 340,266 shares subscribed and paid by the Parent Company with: Capitalization of contributions: US$ 1
Slide 22: Debt Refinancing 2017: US$ 165 million
Debt Refinancing 2017: US$ 165 million Debt repayment schedule (US$ mill.) Debt Refinancing 2013 Debt Refinancing 2017 139.1 86.7 16.7 16.7 8.1 6,3* 8.1 6,3* 9.1 6,3* 6,3* 6.7 6.7 6.7 May 2018 Nov 2018 May 2019 Nov 2019 May 2020 Nov 2020 May 2021 Nov 2021 May 2022 Nov 2022 Prepaid repayments in case
Slide 23: Debt Refinancing 2017: US$ 165 million
Debt Refinancing 2017: US$ 165 million Tranche A: TERM LOAN Amount: US$ 25 million to the parent Company (term of 2 years) Amortizations: Semiannual (4 in total) Prepayment if IPO takes place Tranche B: REVOLVING LINE Amount: US$ 40 million to the parent Company (term of 5 years with 2.5
Slide 24: Camanchaca
“sf Camanchaca