Slide 1: Camanchaca Q4 2015 Results
s© OY x 7e) (we = zw Camanchaca
Slide 2: Revenues
Revenues Jan – Dec (MUS$) 2014 2015 -12% 496.4 439.2 -6% -21% 278.5 262.8 184.4 145.8 -8% 33.5 30.6 Fishing Salmon Other Seafood TOTAL Revenues affected by slower catches and weak salar prices 2
Slide 3: Annual Revenues - Fishing
Annual Revenues - Fishing 2014 2015 Volume (Ton) Average price (US$/Ton) Revenues (US$ million) YTD Q4 2014 51,988 1,763 92 YTD Q4 2015 38,620 1,780 69 -25% YTD Q4 2014 13,332 1,960 26 YTD Q4 2015 5,729 1,913 11 -58% Impact of lower catches (-29%) and lower yields of oil (-34%) due to El Niño -21% 4
Slide 4: Annual Revenues - Salmon
Annual Revenues - Salmon Atlantic Salmon 2014 2015 Volume (Ton WFE) Average price (US$/Kg WFE) Revenues (US$ million) YTD Q4 2014 36,814 5.6 206 YTD Q4 2015 42,195 4.4 187 +15% -21% -9% • 2015 without trout vs US$ 12 mill. in 2014 • US$ 10 mill. of lower revenues for services to third parties • Harv
Slide 5: Annual Revenues – Other Seafood
Annual Revenues – Other Seafood Mussels 2014 2015 Volume (Ton) Average price (US$/Kg) Revenues (US$ million) YTD Q4 2014 8,422 2.7 23 YTD Q4 2015 8,877 2.7 24 +5% -1% +4% 28 thousand tons of processed raw material and production record in 2015 of 9,500 tons. (+10%) Higher stocks at the end of 2015 •
Slide 6: Results Jan – Dec (MUS$)
Results Jan – Dec (MUS$) EBITDA (before Fair Value) 2014 2015 66.1 33.1 31.5 21.6 15.7 6.7 1.6 -0.8 Fishing Salmon Other Seafood TOTAL Profit/Loss 11.1 6.2 6.5 1.4 -1.5 -3.6 -6.8 -9.0 Fishing Salmon Other Seafood TOTAL 6
Slide 7: Development: Last 4 mobile quarters
Development: Last 4 mobile quarters EBITDA (MUS$) Revenues (MUS$) X% EBITDA/Revenues 496 489 483 485 459 462 453 13.3% 12.4% 439 12.0% 439 11.0% 66.1 10.2% 60.0 58.7 10.0% 53.0 5.6% 45.1 47.1 4.9% 2.7% 25.5 21.6 11.9 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 7
Slide 8: Driver: Pelagic Fishing
Driver: Pelagic Fishing Sardine: Lower 2015 fishing quota (-18%) and early bans due to lower fish size. J. Macker.: Late catches, but recover as of Q3 2015. Anchovy: Lower 2015 industrial fishing quota (-14%) and late beginning, but with more purchases to third parties; weak Q4 due to El Niño. 271 2
Slide 9: Driver: Fishmeal Price
Driver: Fishmeal Price Prices hit a peak in Q1 2015, and fell after normalization of the Peruvian quota for the 1st season and then rise again due to a lower quota for the 2nd and due to El Niño risks. US$ / ton (Camanchaca) Peru’s Fishing Quota: May to Jul: Nov to Jan: May to Jul: Nov to Jan: May t
Slide 10: Higher Stocks of mussels and abalone. Normal fishing stocks
Higher Stocks of mussels and abalone. Normal fishing stocks (valued at cost) December 31, 2015 December 31, 2014 Months of VOLUME ThUS$ VOLUME ThUS$ Production SALMON Atlantic Salmon (Tons) 7,458 3.4 42,198 6,021 37,889 Salmon Total 42,198 37,889 FISHING Fishmeal (Tons) 5,793 1.3 6,937 4,879 5,492 F
Slide 11: Driver: Favorable Salmon Sanitary Conditions
Driver: Favorable Salmon Sanitary Conditions 2014 2015 Mortality – Atlantic Salmon % in closed cycle 14.2% 12.9% 10.2% 11.7% 9.8% 9.8% 10.9% 8.7% 9.0% 5.4% Q1 Q2 Q3 Q4 Year Q4 2015: Increased SRS and sea lice. Economic Feed Conversion Rate – Atlantic Salmon 1.55 1.41 1.44 1.42 1.35 1.30 1.34 1.36 1.
Slide 12: Algae Bloom in Chile
Algae Bloom in Chile • Mainly affects neighborhoods 1, 2, 3, 6, 7 and 10 (10th Region) • Mortality of approx. 24 million fish, equivalent to more than 39 thousand tons of biomass • Expected Chilean supply 2016: drop ~20% • Expected Global supply 2016: drop ~6% • Estimated impacts for Camanchaca: • 9
Slide 13: Cost reduction
Cost reduction Atlantic Salmon - Cost ex-cage liveweight (US$ / kg) 3.72 3.81 3.35 3.16 3.07 3.08 Others 2.95 2.92 3.02 Medicine Labor Smolt OPEX Feed Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 3.41 3.01 Improvements in cost mainly for better diets and feeding techniques
Slide 14: Driver: Atlantic Salmon Price
Driver: Atlantic Salmon Price Drop in prices due to devaluations of currencies against the USD 2014 2015 US$ / kg WFE (Salmones Camanchaca) Harvest (Thousands of Tons) Δ-22% Δ-20% Δ-19% 6.0 Δ-21% 5.8 Δ-22% 5.6 5.4 5.2 4.8 4.5 4.4 4.4 4.1 14.3 15.6 11.6 43.3 10.8 11.2 39.3 9.2 5.0 4.9 .500 Q1 Q2 Q3 Q
Slide 15: Atlantic Salmon Price: Long-term trend
Atlantic Salmon Price: Long-term trend Urner Barry Equivalent Trim C 2-3 *- US$/Lb 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 mar-16 sep-11 jan-04 sep-04 jan-05 sep-05 jan-06 sep-06 jan-07 sep-07 jan-08 sep-08 jan-09 sep-09 jan-10 sep-10 jan-11 may-11 jan-12 sep-12 jan-13 sep-13 jan-14 sep-14 jan-15 sep-15
Slide 16: Hike in price
Hike in price Prices every week: Chilean salmon (UB trim D 3-4 lb) Source: ABG Sundal Collier (03/17/2016) Price rises +US$ 1.2 / lb in the last weeks 16
Slide 17: Camanchaca's Atlantic Salmon RMP
Camanchaca’s Atlantic Salmon RMP Camanchaca vs Market (Salmonex, January 2012 = Base 100) Urner Barry Salmonex Camanchaca 180 160 140 117 120 100 100 100 89 88 80 74 60 In 2015, Camanchaca’s prices remain above the UBarry and Salmonex indexes (+96 and +76 cents respectively). 17
Slide 18: Development of Atlantic Salmon Margins
Development of Atlantic Salmon Margins Despite significant improvements in costs, tight margins due to price situation 10th region sites 11th region sites Raw Material Cost and RMP (Raw Material Return) Base 100 = RMP January 2013 Porcelana Leptepu Leptepu Loncochalgua Licha Benjamín Puelche Lamalec
Slide 19: Development of Atlantic Salmon Margins
Development of Atlantic Salmon Margins EBIT (US$/Kg WFE) before Fair Value 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 -0.2 -0.4 -0.53 -0.6 -0.8 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 0.64 -0.10 Atlantic Salmon Business includes other Revenues and Costs due to services and sales
Slide 20: Driver: Diesel Price
Driver: Diesel Price Drop from Q4 2014 2014 2015 US$ / lt 0.84 0.84 0.82 0.81 0.70 0.54 0.54 0.49 0.50 0.43 0.00 Q1 Q2 Q3 Q4 Year At constant volume, fuel cost save in 2015 of US$ 6.2 million. 20
Slide 21: Camanchaca
“sf Camanchaca