Proximar Seafood As · OSL:PROXI
Proximar Seafood As — Q4 2023 Earnings Presentation
39 slides from Proximar Seafood As's earnings presentation, Feb 23, 2024
Slide 1: Company Presentation – Presentation of 4Q 2023
Company Presentation Presentation of 4Q 2023 23.02.2024 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 “To be a leading provider of Company Presentation sustainably produced seafood by setting the standard for land-based aquaculture” Ole Christian Willumsen CFO 3 3
Slide 4: Proximar is well positioned to be a leading provider of sustainably produced seafood in Japan
Proximar is well positioned to be a leading provider of sustainably produced seafood in Japan The AquaMaof RAS technology in the R&D facility has Proximar will be supplying the robust Japanese Local proven its functionality in land-based Atlantic salmon market with fresh Atlantic salmon harvested th
Slide 5: Proximar at a glance – 2024 a year of transition
Proximar at a glance – 2024 a year of transition Norwegian company operating a land-based RAS facility Construction works completed in 3Q 2023, equipment installation ongoing • Equipment installation ongoing in the post-smolt grow-out facility, 1 of 4 modules for production of Atlantic salmon in Jap
Slide 6: 2023 has been a year of substantial development for Proximar
2023 has been a year of substantial development for Proximar Important metrics development: Biomass development # batches in production # Proximar employees Company Presentation 33 39.8 10 26 7 20 4 5 14 1.4 11.5 0.3 31/03/2023 30/06/2023 30/09/2023 31/12/2023 31/03/2023 30/06/2023 30/09/2023 31/12/
Slide 7: Highlights of the 4th quarter 2023 – start of operations in the grow out building
Highlights of the 4th quarter 2023 – start of operations in the grow out building First transfer of fish to the grow-out building • In December, the first batch of fish was transferred to the grow-out building • Successful transfer with no irregular mortality during and post transfer Company Pre
Slide 8: High transportation cost coupled with high salmon prices give strong pricing in the Japanese market
High transportation cost coupled with high salmon prices give strong pricing in the Japanese market Implied transportation cost Norway-Japan1), 12 month rolling Japan market price2) vs Norway export price, 12 month rolling Prices (NOK / kg) Difference in prices (NOK / kg) Prices (NOK / kg) Differenc
Slide 9: 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 EBITDA cost NOK / kg (HOG)
Slide 10: Japanese market impacted by the significant price increase in 2022/2023
Japanese market impacted by the significant price increase in 2022/2023, but growth expected to continue long-term Atlantic salmon consumption in Japan Toyusu market prices ~50 % increase in market Figures in kMT, head-on-gutted equivalents Figures in NOK/kg, head-on-gutted prices of Atlantic salmon
Slide 11: Consumption in Asia is significant and expected to grow
Consumption in Asia is significant and expected to grow – Proximar well positioned to export to adjacent countries Atlantic salmon consumption in Eastern Asia Figures in kMT, head-on-gutted equivalents Supportive market development in Eastern Asian markets, despite 253 sharp price increase and 245 2
Slide 12: De-risked sales & distribution with Marubeni off-take
De-risked sales & distribution with Marubeni off-take enabling Proximar to focus on production 10-year off-take / sales and distribution agreement with Marubeni Corporation signed in April 2022 • Marubeni and Proximar working closely together in the preparations related to sales activities, marketin
Slide 13: Tank leakage causing breach in one of the large production tanks
Tank leakage causing breach in one of the large production tanks in the grow-out building • On 3rd of February, we experienced a tank breach in the grow-out building • The breach was caused by a leakage between the floor panels and the center module in the tank Caused identified and plan • The leaka
Slide 14: Tank Breach – implications of fish loss
Tank Breach – implications of fish loss • The estimated number of fish lost in the tank breach incident is around 50,000 fish (less than 5% of the current number of individuals in production). Will be updated if final conclusions divert substantially from the current estimate The implications of the
Slide 15: Production update: Encouraging growth through all batches, stable conditions
Production update: Encouraging growth through all batches, stable conditions in all departments Growth curves for Proximar’s first batches Proximar’s biomass development Growth and number of Compared to Skretting growth model, figures in grams In metric tonnes, live weight individuals in line with p
Slide 16: The post-smolt grow-out facility is providing excellent growth conditions
The post-smolt grow-out facility is providing excellent growth conditions, following a startup period with biofilter maturation 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…
Slide 17: Successful recruitment continuing - well on track for 2024 and first harvest
Successful recruitment continuing - well on track for 2024 and first harvest The successful recruiting continues, with all key positions in place to secure good production results with relevant know-how Production staffing secured and all relevant key • A broad and experienced team with relevant bac
Slide 18: Financial summary 4th quarter 2023
Financial summary 4th quarter 2023 P&L Q4 2023 Q4 2022 YTD 2023 YTD 2022 Revenue and other income 0 0 6 0 Cost of production is Operating expenses -30 258 -8 220 -63 771 -25 485 adjusted for unutilized Net financials - 22 702 -1 002 -26 944 -3 236 production capacity during Earnings before taxes -52
Slide 19: Finance-related issues: Subsequent events
Finance-related issues: Subsequent events Successful Private Placement approved by the General Assembly on January 3: The private placement and the subsequent offerings • Substantially oversubscribed (x1,7) contributed with approx. • Approx. NOK 132 million in net proceedings NOK 155 million in • Co
Slide 20: Summary and outlook
Summary and outlook Summary: Production continues to show reassuring results, steady growth and stable water quality All key functions of the production team in place with relevant experience Start-up of grow-out building with the first batch of fish transferred in December Tank breach negatively im
Slide 21: Q&A
Company Presentation 2 Q&A
Slide 22: Appendix: Consolidated statement of comprehensive income
Company Presentation Appendix: Consolidated statement of comprehensive income 2
Slide 23: Statement from the Board of Directors
Statement from the Board of Directors We hereby confirm that the financial statements for the period from To the best of our knowledge, the quarterly report gives a true and fair 1 January through 31 December 2023 to the best of our knowledge have view of the main events during the accounting period
Slide 24: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income (Amounts in NOK 1.000) Note Q4 2023 Q4 2022 2023 2022 Revenue - - - - Other income 2 - - 6 Revenue and other income - - 6 - Cost of materials 2 552 680 5 930 680 Changes in biomass 3 -436 -2 826 -17 772 -2 826 Personnel expenses 11 608 3 791 29 871 12 9
Slide 25: Consolidated statement of financial position
Consolidated statement of financial position (Amounts in NOK 1.000) Note 2023 2022 Note 2023 2022 ASSETS EQUITY AND LIABILITIES Non-current assets Equity Share capital 4 5 967 3 979 Assets under construction 2 339 042 618 161 Share premium reserve 366 597 363 654 Land 2 91 436 31 568 Other equity 6
Slide 26: Consolidated statement of changes in equity
Consolidated statement of changes in equity Share Share premium Translation (Amounts in NOK 1.000) Total equity Note capital reserve Other equity differences Balance at 1 January 2022 3 979 386 808 - -393 390 394 Loss for the period -23 183 622 -22 561 Currency effect on investment in subsidiaries*
Slide 27: Consolidated statement of cash flows
Consolidated statement of cash flows (Amounts in NOK 1.000) Note Q4 2023 Q4 2022 2023 2022 Cash flow from operating activities Loss before tax -52 960 -9 222 -90 709 -28 721 Depreciation 2 6 075 2 276 15 270 3 750 Gain from sales of fixed assets 2 0 - -6 - Change in biological asset 3 -752 -2 868 -1
Slide 28: Note - Summary of significant accounting policies
Note 1 - Summary of significant accounting policies Note 1 - Summary of significant accounting policies The Proximar Seafood group is an Norwegian-registered seafood company engaged in land-based fish farming, with its head office in Bergen, Norway. The Proximar Group is constructing a production fa
Slide 29: Note - Land, property, plant and equipment (1/2)
Note 2 - Land, property, plant and equipment (1/2) Amounts in 1.000 NOK Split between Right-of-use assets and owned assets: 2023 2022 Carrying amount RoU-assets 922 2 516 Carrying amount owned assets 1 278 387 780 326 Total property, plant and equipment incl. right-of-use assets 1 279 310 782 841 As
Slide 30: Note - Land, property, plant and equipment (2/2)
Note 2 - Land, property, plant and equipment (2/2) Amounts in 1.000 NOK Estimated useful life and depreciation plan is as follows: Economic life Not applicable Not applicable 25 years 25 years 3-15 years Depreciation plan Not applicable Not applicable Linear Declining Linear *Currency effect relates
Slide 31: Note – Biological assets
Note 3 – Biological assets Amounts in 1.000 NOK The group started with production in October 2022. At year end 2023 biological assets consists of the first batches measured at cost. Book value of inventory 2023 2022 Raw materials Tonnes Tonnes Count Count Volume of biological assets 2023 2022 2023 2
Slide 32: Note - Share capital and shareholders (1/2)
Note 4 - Share capital and shareholders (1/2) The share capital of NOK 5.967.278 consisted of 59.672.780 shares, each with a nominal value of NOK 0.1 at the end of 2023. All shares carry equal rights. The movement in the number of shares during the year was as follows: 2023 2022 Ordinary shares at b
Slide 33: Note - Share capital and shareholders (2/2)
Note 4 - Share capital and shareholders (2/2) List of main shareholders at 31 December 2023 and 2022 2023 2022 Number of Ownership Number of Ownership Shareholder shares percentage shares percentage Daimyo AS 7 996 238 13,4 % 3 996 238 10,0 % Grieg Kapital AS 6 480 049 10,9 % 3 180 049 8,0 % Helida
Slide 34: Note - Earnings per share
Note 5 - Earnings per share Amounts in NOK Q4 2023 Q4 2022 2023 2022 Profit (loss) for the year -44 830 499 -1 636 328 -93 344 517 -22 561 021 Weighted average number of outstanding shares during the year 59 586 258 39 787 650 52 187 041 39 787 650 Earnings (loss) per share - basic and diluted (in N
Slide 35: Note - Borrowings and other current liabilities (1/3)
Note 6 - Borrowings and other current liabilities (1/3) Amounts in NOK The Group has, through its subsidiary Proximar Ltd. (Japan), received a loan from a syndicate consisting of three large Japanese banks for a corporate loan of JPY 8.8 billion (NOK ~633 million). The Group shall repay the outstand
Slide 36: Note - Borrowings and other current liabilities (2/3)
Note 6 - Borrowings and other current liabilities (2/3) Amounts in NOK In April 2023, the Group released a tap issue of the bonds with an option for conversion to shares in the parent company. The total amount issued is NOK 40.000.000 and consists of 40 mill bonds. The company had a buy back option
Slide 37: Note - Borrowings and other current liabilities (3/3)
Note 6 - Borrowings and other current liabilities (3/3) Amounts in NOK Payment profile non-current liabilities 2024 2025 2026 Total At 31 December 2023 Non-current bullet credit facility 53 927 - - 53 927 Long term loan to financial institution 632 738 - 632 738 Short term loan 15 000 Long term loan
Slide 38: Note – Other financial expenses
Note 7 – Other financial expenses (Amounts in NOK 1.000) Breakdown of other financial expenses Q4 2023 Q4 2022 2023 2022 Currency losses 13 719 1 262 14 783 3 394 Leasing expenses 27 45 61 72 Other financial expenses 1 636 0 2 674 Sum other financial expenses 15 382 1 307 17 517 3 466 In October 202
Slide 39: Note – Subsequent events
Note 8 – Subsequent events Proximar Seafood AS has registered a share capital increase pertaining to the private placement raising gross proceeds of NOK 140 million in January 2024, 70.000.000 new shares in the Company is issued, each at a subscription price of NOK 2.00 per new share. In February, a