Aker Biomarine Asa · OSL:AKBM
Aker Biomarine Asa — Q4 2022 Earnings Presentation
27 slides from Aker Biomarine Asa's earnings presentation, Feb 15, 2023
Slide 1: Fourth Quarter and Full-Year 2022
FORTH QUARTER AND FULL-YEAR 2022 Aker BioMarine ASA 15 February 2023
Slide 2: Fourth quarter 2022 highlights
Fourth quarter 2022 highlights ▪ Fourth quarter ▪ Increased revenue, EBITDA and margin compared to same quarter last year ▪ Full year 2022 ▪ Increased revenue, EBITDA and margin compared to 2021 ▪ Initiates improvement program ▪ Aims to strengthen the core business and create a more robust company s
Slide 3: Quarterly revenue and Adjusted EBITDA
Quarterly revenue and Adjusted EBITDA Revenue Adjusted EBITDA1 USD million USD million 79 76 21 73 21 68 19 57 8 7 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 3 1) Aker BioMarine evaluates the performance based on Adjusted EBITDA. This metric is defined as operati
Slide 4: Annual revenue and Adjusted EBITDA
Annual revenue and Adjusted EBITDA Revenue Adjusted EBITDA1 and margin USD million USD million and % 100 30% 27% 25% 25% 90 25% 288 24% 277 78 25% 262 22% 80 246 Kori 69 70 launch cost 18% 20% 60 53 48 157 50 15% 39 126 40 117 30 10% 25 30 20 5% 10 0 0% 2016 2017 2018 2019 2020 2021 2022 2016 2017 2
Slide 5: Offshore operations
Offshore operations Significantly increased produced volumes in 2022 Annual production Quarterly production Metric tons (MT) Metric tons per quarter ▪ Offshore production improved compared to 25 000 last year 52 000 ▪ 2022 production of 52,000 MT, 19% above last year 45 000 20 000 43 800 ▪ Q4 produc
Slide 6: Highlights Qrill category
Highlights Qrill category 27% higher Qrill Aqua revenue in 2022 vs. 2021 Annual revenue, USD million ▪ Strong Qrill demand from all markets, especially Thousands Asia 120 ▪ Increased volume and price of Qrill Aqua ▪ Around 15% higher sales volume in 2022 than 2021 90 ▪ Around 15% higher prices in H2
Slide 7: Highlights Superba
Highlights Superba Positive growth trajectory as we execute on the sales acceleration plan Superba revenue USD million ▪ Superba sales of USD 17 million in the quarter 25 ▪ Up >20% from previous quarter South Korea 20 ▪ Executing on sales acceleration plan ▪ South Korea 15 ▪ The final submission of
Slide 8: Update on the Superba sales acceleration plan
Update on the Superba sales acceleration plan Longer-term annual sales growth target of +15% to 20% Strengthened the Renewed pipeline New products and Improved organization to of business innovations for documentation and facilitate for sales prospects increased offering health claims on growth and
Slide 9: Milestones in our South Korean application process
Milestones in our South Korean application process Krill oil products require approval as Health Functional Food (HFF) to resume sales activities AKBM was initially scheduled for approval AKBM application reviewed by Revised statistics board review at MFDS1. approval board. Received feedback submitt
Slide 10: Highlights Brands segment
Highlights Brands segment Kori brand takes market share and is recognized with industry award for retail excellence Kori’s share of US krill oil sales 1 Kori among the winners of the Retail Excellence Award 2 15% ▪ Sales of USD 30 million, in line “Kori Krill Oil has led the charge to create with sa
Slide 11: Improvement initiatives
IMPROVEMENT INITIATIVES ANIMVWOI8 Yan (vy)
Slide 12: After years of strong growth, the slowdown in 2021/22 enabled us to optimize
After years of strong growth, the slowdown in 2021/22 enabled us to optimize and improve the way we do business Total revenues USD million 350 300 250 x2.75 200 150 100 50 0 2015 2016 2017 2018 2019 2020 2021 2022 12
Slide 13: Launching improvement program in Ingredients and Corporate
Launching improvement program in Ingredients and Corporate Annualized recurring effects in excess of USD 20 mill. in addition to certain one-off initiatives in 2023 Recurring cash impact1 by end-2023 Recurring cash impact by end-2024 in excess of in excess of USD 10 mill. USD 20 mill. 13 1) Based on
Slide 14: Overview of improvement program
Overview of improvement program Cost initiatives, structural improvements and organizational changes Main workstreams in focus with examples • Reduce krill search time • Source fuel more effectively Offshore • Improve energy efficiency in the factories • Re-design logistics network to better With th
Slide 15: Financials
FINANCIALS ANIMVWOI8 Yan (vy)
Slide 16: Financial development
Financial development Group figures Revenue Adj. EBITDA and margin Net interest-bearing debt USD million USD million and % USD million 30 35% 360 359 79 349 76 29% 73 28% 30% 324 25 26% 314 68 21 21 25% 57 20 19 20% 15 14% 15% 10 9% 8 10% 7 5 5% 0 0% Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q4 2021 Q
Slide 17: Ingredients segment
Ingredients segment Revenue Adj. EBITDA and margin USD million USD million 25 54 53 60% 22 49 44 50% 20 16 15 40% 45% 15 30 30% 34% 23% 31% 10 20% 5 7 5 10% 9% 0% - Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 ▪ Qrill category: sales up 23% compared to Q4-22, drive
Slide 18: Brands segment
Brands segment Revenue Adj. EBITDA and margin USD million USD million 18% 16.0 17% 30 31 30 16% 15% 14.0 14% 27 27 13% 12.0 12% 11% 10.0 10% 9% 9% 8% 7% 8.0 7% 5% 6.0 6% 5% 4% 2.6 2.2 4.0 3% 1% 1.3 2.0 2% 1% 0.3 0% 0.0 -1% -2% -2.0 -3% -4% -5% -2.5 -4.0 -6% -7% -8% -6.0 -8% -9% -8.0 Q4 2021 Q1 2022
Slide 19: Profit and loss statement
Profit and loss statement Q4 2022 Q4 2021 YTD 2022 YTD 2021 USD million (Unaudited) (Unaudited) (Unaudited) (Audited) Net sales 79.0 75.7 277.2 262.1 Net sales Cost of goods sold (47.1) (56.0) (162.4) (174.0) ▪ Net sales for the quarter up 4% compared to fourth quarter last year. The positive develo
Slide 20: Balance sheet statement
Balance sheet statement 31.12.2022 31.12.2021 USD million (Unaudited) (Audited) ASSETS Property. plant and equipment Property. plant and equipment 333.2 327.9 ▪ Growth and maintenance capex in the quarter. primarily in the Ingredients Right to use assets 9.9 11.3 segment on vessel and Houston produc
Slide 21: Cash flow statement
Cash flow statement Q4 2022 Q4 2021 YTD 2022 YTD 2021 USD million (Unaudited) (Unaudited) (Unaudited) (audited) Net profit (loss) after tax 0.2 (8.4) 10.0 (8.0) Tax expenses 1.2 - 2.2 0.6 Cash flow from operations Net interest and guarantee expenses 9.4 3.7 10.7 13.7 ▪ Positive cash flow from operat
Slide 22: Outlook first quarter 2023
Outlook first quarter 2023 Operations Qrill Aqua Superba Brands ▪ Krill harvesting with a ▪ Expecting higher sales ▪ Expecting higher sales ▪ Expecting higher sales good start to the year. than Q1-22 with stable than Q1-22 in Lang than Q1-22 Expects volume on par prices vs. 2H-22 ▪ Expecting health
Slide 23: Appendix
@) AKER BIOMARINE APPENDIX
Slide 24: Important information
Important information This presentation has been prepared by Aker BioMarine ASA (the "Company"). The presentation does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of the Company
Slide 25: Revenue per product
Revenue per product Excluding eliminations between Ingredients and Brands 2.8 3.0 3.5 3.2 30.0 29.9 3.3 27.2 27.3 30.5 27.1 32.9 30.8 27.3 14.1 23.7 14.5 13.9 16.9 12.7 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Krill oil Qrill Aqua Brands Other Qrill category * * Other includes Qrill Pet, Asta and QHP
Slide 26: Aker BioMarine has hedged much of fuel price exposure through 2024
Aker BioMarine has hedged much of fuel price exposure through 2024 Curbing the impact on surging oil prices and creates predictability in largest cost drive Spot price development Gasoil 0.1% FOB Rotterdam Barges (USD/Mt) 1,400 ▪ In mid-2020 Aker BioMarine locked in 100% of estimated 2021-2024 fuel
Slide 27: Aker BioMarine
ey AKER BIOMARINE