Salmones Camanchaca SA · BCS:SALMOCAM
Salmones Camanchaca SA — Camanchaca — Q3 2016 Earnings Presentation
27 slides from Salmones Camanchaca SA's earnings presentation, Nov 25, 2016
Slide 1: Results January – September 2016
November 25, 2016
Slide 2: Results January – September 2016
Results January – September 2016 (US$ mill.) 2015 2016 Profit/Loss 23.8 15.8 2.1 -1.7 -0.7 -7.2 -13.1 -12.7 Fishing Salmon Other Seafood TOTAL EBITDA (sin Fair Value) 23.6 16.5 12.7 12.4 10.8 3.6 0.2 0.5 Fishing Salmon Other Seafood TOTAL 2
Slide 3: Development: Last 4 mobile quarters
Development: Last 4 mobile quarters 183 178 170 184 179 157 151 157 163 161 169 146 147 141 126 FISHING 33.1 29.0 26.6 30.0 27.3 21.0 20.4 22.6 18.8 15.7 18.9 15.6 11.2 10.3 6.7 328 295 288 299 278 279 275 260 263 263 269 SALMON 237 252 220 36.1 38.2 31.5 27.5 Revenues 199 21.4 25.6 20.1 6.1 6.7 8.2
Slide 4: Development: Last 4 mobile quarters
Development: Last 4 mobile quarters EBITDA Revenues X% EBITDA/Revenues 496 489 483 485 483 470 459 462 453 448 13.3% 446 439 12.4% 12.0% 439 437 11.0% 66.1 419 60.0 10.2% 58.7 10.0% 53.0 45.1 47.1 5.6% 4.9% 3.0% 2.7% 25.5 2.3% 21.6 1.8% 1.7% 1.1% 11.9 14.5 7.2 0.4% 10.1 8.7 4.9 2.0 Q1 Q2 Q3 Q4 Q1 Q2
Slide 5: Pelagic Fishing: Northern Fishing Division
Pelagic Fishing: Northern Fishing Division Anchovy: Lower catches due to El Niño phenomenon, not only in Chile, but also in Peru. Biomass has not reached the right size. Thousands of tons 27 22 87 20 18 18 11 10 40 1 2015 2016 2015 2016 2015 2016 2015 2016 E 2015 2016 E Q1 Q2 Q3 Q4 Year Catches in P
Slide 6: Pelagic Fishing: Southern Fishing Division
Pelagic Fishing: Southern Fishing Division J. Macke.: Favorable fishing conditions (quota completed as of Q3 2016). Diesel used per catched ton drops 43%. Sardine: Lower catches vs 2015 due to fish absence in the 8th region (third parties). Own catches (industrial): more than double as of Q3 2016. D
Slide 7: Global Fishing Quotas 2016 - 2017
Global Fishing Quotas 2016 - 2017 Global Fishing Quotas for Chile Tons 2016 2017 Δ% Sardine 284,000 (1) 313,950 11% Langostino 5,010 (2) 7,454 49% Lobster Anchovey 751,170 743,585 -1% 1) 2016 Global Fishing Quota for sardine was revised and raised to 326,600 tons in Q3-16 2) 2016 Global Fishing Quot
Slide 8: Fishmeal Price
Fishmeal Price Prices hit a peak in Q1-15, and fell after normalization of the Peruvian fishing quotas/catches. Peruvian fishing quota of 2 mill. tons could push current prices down, subject to effective catch. US$ / ton (Camanchaca) Nov to Jan: Peru’s Fishing Quota (North-Centre Region): 2.0 M Ton
Slide 9: Camanchaca Diesel Price (US$/lt)
Camanchaca Diesel Price (US$/lt) 2015 2016 0.54 -44% 0.54 -31% -20% 0.49 0.50 0.43 0.40 0.40 0.37 0.39 0.30 0.35 0.35 Q1 Q2 Q3 Q4 Year As of September 2016: At constant volume, fuel savings of US$ 2.4 million. Favorable effects are stabilized. Company’s estimations are based on current information,
Slide 10: Stocks
Stocks (valued at cost) Increase in canned fish; Reduction in salmon; Lower fishmeal and fish oil production Months of VOLUME ThUS$ VOLUME ThUS$ VOLUME ThUS$ Production SALMON Atlantic Salmon (Tons) 3,676 1.7 32,471 7,458 42,198 4,948 29,100 Salmon Total 32,471 42,198 29,100 FISHING Fishmeal (Tons)
Slide 11: Atlantic Salmon Sanitary Conditions
Atlantic Salmon Sanitary Conditions (closed cycle) Mortality 2015 2016 64.3% 38.0% 19.2% 14.2% 35.0% 8.7% 9.0% 12.9% 10.9% 5.4% 6.0% 2.0% Q1 Q2 Q3 Q4 Year Economic Feed Conversion Rate 2.87 1.58 1.33 1.35 1.70 1.35 1.30 1.36 1.35 1.35 1.60 1.15 Q1 Q2 Q3 Q4 Year Company’s estimations are based on cur
Slide 12: Costs
Costs Q4-15 and H1-16 affected by SRS and low oxygen conditions in the 10th region. Better conditions in Q3-16 vs Q3-14. Atlantic Salmon - Liveweight ex-cage cost (US$ / kg) 3.66 3.75 3.35 Others 3.07 2.95 3.02 3.08 3.09 2.92 Medicine Labor Smolt OPEX Feed Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4
Slide 13: Stocking Geographic Distribution (Previous Cycle)
Stocking Geographic Distribution (Previous Cycle) 11 sites 2 sites 13
Slide 14: Stocking Geographic Distribution (Current Cycle)
Stocking Geographic Distribution (Current Cycle) 6 sites 6 sites 14
Slide 15: Biomass Maximum Exposure by Quarter
Biomass Maximum Exposure by Quarter PRODUCTION RISK MANAGEMENT AND BLOOM MITIGATION (Season 2016/2017) MAX EXPOSURE ON EACH QUARTER (US$ million) 2015 /2016 2016 /2017 Area 4T 1T 2T 3T 4T 1T 2T 3T 1 Seno Reloncaví (Barrio 2) 19.7 22.3 0.0 0.0 0.0 0.1 3.6 8.0 2 Canal Yal 13.4 0.0 0.0 3.4 10.4 16.0 22
Slide 16: Smolt stocking and harvests development
Smolt stocking and harvests development Smolt stocking (Million smolt) 4.0 3.0 3.1 2.4 2.7 2.4 2.2 2.4 2.1 2.0 1.9 1.3 1.4 1.3 1.2 0.8 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 8.9 8.0 8.8 E 8.5 E Harvests (Thousands tons WFE) 15.6 14.3 11.6 11.2
Slide 17: Atlantic Salmon Price
Atlantic Salmon Price Price upward due to decreasing global supply (-6%): Algae Bloom in Chile and slight Norway decrease. Harvest (Thousands of Tons) Price (US$ / Kg WFE) 2015 2016 6.2 6.2 5.8 5.7 4.8 4.5 4.4 Δ+51% 4.4 4.2 Δ+28% Δ+41% 4.1 Δ+30% Δ-12% 43 15.6 11.6 32 11.2 9.1 9.0 7.6 6.7 4.9 E E Q1
Slide 18: Atlantic Salmon Price: Long-term trend
Atlantic Salmon Price: Long-term trend Urner Barry Equivalent Trim C 2-3 *- US$/Lb Large devaluation in major markets and non-tariff restrictions Algae bloom Overshooting recovery 6.0 post ISA 5.5 ISA Virus 5.0 4.5 4.0 3.5 3.0 2.5 2.0 nov-16 jul-05 jan-14 jan-04 jul-04 jan-05 jan-06 jul-06 jan-07 ju
Slide 19: Camanchaca's Atlantic Salmon RMP
Camanchaca’s Atlantic Salmon RMP Camanchaca vs Market (Salmonex, January 2014 = Base 100) Urner Barry Salmonex Camanchaca 120 111 110 100 90 80 70 63 60 50 40 Jan-14 Apr-14 Jul-14 Jan-15 Apr-15 Jul-15 Jan-16 Apr-16 Jul-16 Oct-14 Oct-15 Oct-16 From June 2016: Camanchaca’s prices again exceed UBarry a
Slide 20: Atlantic Salmon: Fresh and Frozen
Atlantic Salmon: Fresh and Frozen Markets - Fresh 2014 As of Oct 2016 13% 6% USA 11% USA Brazil Brazil 28% 59% 51% Argentina Others 32% China Markets – Frozen 17% Japan Russia 25% 24% 29% USA USA Mexico Japan 16% Russia Mexico 5% 5% South Korea Thailand 6% 11% Germany 18% Denmark 14% 8% Others Other
Slide 21: Development of Atlantic Salmon Margins
Development of Atlantic Salmon Margins Return to positive margins in Q2 2016 increased in Q3 2016 10th region sites 11th region sites Leptepu Cahuelmó Raw Material Cost and RMP (Raw Material Return) Base 100 = RMP January 2013 |-----Ahoní-----| Porcelana Leptepu Loncochalgua Johnson 2 Benjamín Licha
Slide 22: Development of Atlantic Salmon Margins
Development of Atlantic Salmon Margins EBIT (US$/Kg WFE) before Fair Value in the Salmon business 1.5 1.29 1.10 (E) 1.0 0.5 0.0 -0.5 -1.0 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 (0.10) 0.13 Atlantic Salmon Business includes other Revenues and Costs due to serv
Slide 23: Change in Sanitary Regulation
Change in Sanitary Regulation Changes to regulation put a brake on growth and severely punish poor health performance Main elements of the new regulation Possible implications • Maintains the territorial ordering based on • The set of elements of the regulation, neighborhoods and macro-zones; The co
Slide 24: Change in Sanitary Regulation
Change in Sanitary Regulation New regulation provides 2 alternatives for smolt stocking 1) Cage Density Site losses > 5% 5% site losses or less Biosecurity Neighborhood: Cage Individual farming site: Cage Risk Score level Density (kg/m3) Density (kg/m3) 79.1 – 100 High 17 17 69.1 – 79 Medium 15 17 5
Slide 25: Regulatory Risks
Regulatory Risks Concession expiration Current Application Risk • Possibility to leave concessions indefinitely • One time PMS. After this, there are 2 options: under the modality of the Sanitary 1. Include the concession in the Management Plan (PMS for its acronym in production plan > 5% of the tec
Slide 26: Debt payment on November 25
Debt payment on November 25 Refinanced debt in May 2013: US$ 234 mill. November 25, 2016 payment of US$ 15.8 mill.: Amortization quota: US$ 8.5 mill. Pesca Sur debt pre-payment: US$ 4.7 mill. Interests: US$ 2.6 mill. Debt balance after payment: US$ 183 mill. Between Q2-2013 and Q3-2016:
Slide 27: Camanchaca
“sf Camanchaca