Nordic Aqua Partners As · OSL:NOAP
Nordic Aqua Partners As — Q1 2024 Earnings Presentation
30 slides from Nordic Aqua Partners As's earnings presentation, May 2024
Slide 1: Nordic Aqua Partners Q1 2024
Nordic Aqua Partners Q1 2024 May 2024
Slide 2: Disclaimer
DISCLAIMER This presentation contains statements regarding future results, which are subject to risks and uncertainties. Consequently, actual results may differ significantly from the results indicated or implied in these statements. No representation or warranty (expressed or implied) is made as to
Slide 3: Agenda
Agenda Highlights and New Recruitments Biology Project Market Financials Outlook & Summary 3
Slide 4: Highlights
Highlights • Good operational and biological performance for all batches • Excellent fish health and welfare, and no signs of maturation • Q1 biomass production of 967 tonnes. Total biomass of 2,046 tonnes by quarter end • Hatchery for Stage 2 is finished • Strengthened commercial and operational co
Slide 5: New Recruitments
New Recruitments Andreas Thorud Tom Johan Austrheim Managing Director, Nordic Aqua China CFO, Nordic Aqua Partners Ana Holden-Peters Ove Nodland Sustainability Director, Nordic Aqua Partners Board Member, Nordic Aqua Partners Marit Solberg Board Member, Nordic Aqua Partners 5
Slide 6: Agenda
Agenda Highlights and New Recruitments Biology Project Market Financials Outlook & Summary 6
Slide 7: Salmon under production at Gaotang
Salmon under production at Gaotang Hatchery RAS 1-2-3 RAS 4-5-6-7-8 7
Slide 8: Batches 2-5
Batches 2-5 Batch 2 Batch 3 Summary 3.000 1.400 Batch 2 and 3 performance as expected 2.500 1.200 1.000 Fish size (g) Fish size (g) 2.000 1.500 800 • The growth in Batch 2 was somewhat affected by 600 1.000 400 construction of the RAS units 500 200 • No signs of maturation - - • Accumulated mortalit
Slide 9: Agenda
Agenda Highlights and New Recruitments Biology Project Market Financials Outlook & Summary 9
Slide 10: Stage 1 status – Completed
Stage 1 status – Completed Greenery completed and opening ceremony late May 2024 10
Slide 11: Processing status
Processing status • Processing Plant was completed in April 2024 • Initial capacity 8,000 tonnes • With minor adjustments capacity can be increased to 20,000 tonnes 11
Slide 12: Stage 2 status
Stage 2 status • The hatchery’s extra capacity in the small building is finished and operational • The construction of RAS 11 and 12 has begun • The piling for the large building started in January 2024 • First inlay of eggs in Q3 2024 12
Slide 13: Expanding to 8,000 tonnes and planning for 20,000 tonnes
Expanding to 8,000 tonnes and planning for 20,000 tonnes • The fish farming part of Stage 1 was on time and budget • For Stage 2 RAS delivery is based on a target price arrangement • The lease agreements with local government are entered at fixed terms and contribute to reduce the risk of potential
Slide 14: Timeline of Gaotang buildout
Timeline of Gaotang buildout 2021 2022 2023 2024 2025 2026 2027 2028 Q3 Construction start Stage 1 Q1 Production start 4,000 tonnes Q1 First harvest Q3 Construction start Stage 1+2 Q3 Production start 8,000 tonnes Q3 First harvest Q2 Construction start* Stage 1+2+3 Production start (Up to smolt, use
Slide 15: Agenda
Agenda Highlights and New Rercruitment Biology Project Market Financials Outlook & Summary 15
Slide 16: Imports of Atlantic salmon to China Q1 2024
Imports of Atlantic salmon to China Q1 2024 Import volume per quarter Fresh or chilled Atlantic salmon (tons) 25.000 20.000 15.000 10.000 5.000 0 2019 2020 2021 2022 2023 2024 Q1 Q2 Q3 Q4 Chinese customs data 16
Slide 17: Imports of Atlantic salmon to China Q1 2024
Imports of Atlantic salmon to China Q1 2024 Q1 - Market share per COO Fresh or chilled Atlantic salmon (% of total volumes) 10% 5% 11% 7% 9% 3% 2% 6% 11% 24% 23% 11% 22% 8% 12% 18% 64% 54% 50% 40% 2021 2022 2023 2024 Chinese customs data Norway Chile Australia United Kingdom Faroe Islands Others 17
Slide 18: Imports of Atlantic salmon to China Q1 2024
Imports of Atlantic salmon to China Q1 2024 Import price per month Fresh or chilled Atlantic salmon (EUR/kg) 20,00 15,00 10,00 5,00 Apr Apr Apr Apr Mar May Sep Mar June May Sep Mar May Sep Mar Sep Mar June Feb Oct Nov Dec June Oct Nov Dec Oct Nov Dec May June Oct Nov Dec Feb Jan Jan July Aug Jan Jul
Slide 19: Nordic Aqua has started commercial harvest
Nordic Aqua has started commercial harvest • First commercial harvest was in April 2024 and will gradually increase through May to reach full scale harvest end of June 2024. • As of the 10th of May 2024, the company has harvested 92 tonnes HOG ‒ High-quality Atlantic Salmon ‒ Average weight of appro
Slide 20: Targeting key distribution channels in the market compelling value proposition
Targeting key distribution channels in the market compelling value proposition Freshness Safety The product is significantly fresher than any The Product is free from antibiotics, competitive Atlantic Salmon, 5 days to most medicines, and parasites. products. Sustainability Agility The product holds
Slide 21: Investing in building market recognition for premium position
Investing in building market recognition for premium position • Conducting chef engagements - Obtaining feedback and promoting Nordic PureAtlantic towards high-end chefs • Marketing activities towards end-users - Showing how to market our product to end-users based on our unique product in local mar
Slide 22: Agenda
Agenda Highlights and New Recruitments Biology Project Market Financials Outlook & Summary
Slide 23: Financial highlights
Financial highlights • Financial performance in line with plans • Biomass 2,046 tonnes on March 31st, 2024, with a value of EUR 16.4 million incl. fair value adjustment • Estimated total CAPEX for Stage 1 ‒ Farming technology stage 1 EUR 53.0 million ‒ EUR 52.1 million accrued end of Q1 2024 ‒ Lease
Slide 24: Profit & Loss
Profit & Loss (figures in EUR 1000) Q1 2024 Q1 2023 • The increase in purchase of goods and Revenue 0 0 operating expenses from Q1 2023 to Q1 Purchase of goods -2,308 -196 2024 is driven by increased production Change in inventory and biological assets (at cost) 4,676 536 Other operating income 103
Slide 25: Financial Position
Financial Position (figures in EUR 1000) 31.03.2024 31.03.2023 31.12.2023 • Total assets of EUR 113 million, increase Assets mainly from investments in PPE and Assets under construction 34,915 43,898 31,161 biomass Property, plant & equipment 25,230 819 21,906 Right of use assets 18,638 0 9,287 Depo
Slide 26: Cash Flow
Cash Flow (figures in EUR 1000) Q1 2024 Q1 2023 • Liquidity according to plans Cash flow from operations Operating profit/loss 351 -970 • Net cash flow in Q1 2024 EUR -10.2 million Net cash generated from operations -1,579 -76 • Cash EUR 13 million, total available liquidity Cash flow from investmen
Slide 27: CAPEX and Production cost breakdown
CAPEX and Production cost breakdown Cost Breakdown 2024 Stage 1+2 Stage 1+2+3 (flexibility) Annual volume tonnes (HOG) 3,400 8,000 20,000 RAS Capex/kg (HOG) 13,30 EUR* 14,50 EUR 13,30 EUR Lease financed capex/kg (HOG) 4,80 EUR* 4,60 EUR 3,80 EUR Farming cost/kg (HOG) 5,40 EUR 5,40 EUR 5,00 EUR Cost
Slide 28: Agenda
Agenda Highlights and New Recruitments Biology Project Market Financials Outlook & Summary 28
Slide 29: Summary and Outlook
Summary and Outlook • Good biological performance with strong growth and excellent fish health • Q1 biomass production of 967 tonnes. Total biomass of 2,046 tonnes by quarter end • Hatchery of Stage 2 is finished and Stage 3 in planning • Strengthened commercial and operational competence • First co
Slide 30: Investor Contacts
Investor Contacts Tom Johan Austrheim CFO, NOAP tel:+47 9820 9873 tom@nordicaquapartners.com Ragnar Joensen CEO, NOAP tel:+298 599112 ragnar@nordicaquapartners.com