Proximar Seafood As · OSL:PROXI
Proximar Seafood As — Q4 2024 Earnings Presentation
38 slides from Proximar Seafood As's earnings presentation, Feb 28, 2025
Slide 1: Presentation of fourth quarter and full year 2024
Company Presentation Presentation of fourth quarter and full year 2024 28.02.2025 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: Agenda
Agenda • Highlights of the quarter • Sales & Marketing Company Presentation • Production • Business case and Financial Summary • Summary & Outlook 3
Slide 4: Successfully started harvesting & sales - first mover advantage in Japan
Successfully started harvesting & sales - well-positioned with a significant first mover advantage in the Japanese market Norwegian company operating a land-based RAS facility producing Atlantic salmon in Japan Local production in Well-performing • Long-term sales and distribution agreement robust s
Slide 5: Highlights of the 4th quarter 2024
Highlights of the 4th quarter 2024: Sales achieving NOK 123 / kg and Fuji Atlantic salmon established as a brand name in Japan First harvest completed and sold • The company harvested 28 tonnes Atlantic salmon in the quarter (29.2 tonnes for the year) • 99,7% superior grade • Average harvested wei
Slide 6: Biomass build-up according to the production plan
Biomass build-up according to the production plan – aiming for full utilization in 2027 @ 5,300 tonnes HOG Important key metrics: Biomass development # batches in production # Proximar employees Company Presentation 1058 18 19 15 59 733 12 45 47 38 112 360 31/03/2024 30/06/2024 30/09/2024 31/12/2024
Slide 7: Turbidity challenges resolved – but biofilter incidents continue to impact growth
Turbidity challenges resolved – but biofilter incidents continue to impact growth rates • Turbidity issues resolved following the final completion of ozone system • Biofilter incidents leading to feeding ~70-80% of capacity in 4Q 2024 and 1Q 2025 Ozone efficiently bringing • Costs of repairs ~MNOK 2
Slide 8: Restricted feeding resulting in larger variations in harvest weights
Restricted feeding resulting in larger variations in harvest weights short-term • Reduced feeding impacting harvest volumes in 1H 2025 by lower average harvest size of fish Feeding restriction • Impact on harvest volumes ~500 tonnes compared to previous 3Q guiding following the turbidity challenges
Slide 9: 99.8% superior grade, high quality and no off-flavor issues
99.8% superior grade, high quality and no off-flavor issues • Continuing to see strong demand and interest in the Japanese market • As of 25th of February – total harvested volumes 202 tonnes • 99.8% superior grade and high quality – demonstrating good system performance Strong average price achieve
Slide 10: Proximar continues to generate strong interest in Japan
Proximar continues to generate strong interest in Japan – and was featured in a nationwide program on December 27th Proximar continues to receive broad media coverage National TV (NHK) Company Presentation covering Proximar in end of April Minato Shimbun selected Proximar as #2 most important news i
Slide 11: RAS system - stable water quality and treatment capacity, turbidity resolved
RAS system - stable water quality and treatment capacity, turbidity resolved • High and stable water quality, all installation works completed • Turbidity issue resolved following the completion of the ozone system • Extra water treatment equipment in place to further secure quality and reduce risk
Slide 12: Production - biological performance and quality demonstrated
Production - biological performance and quality demonstrated, despite construction related issues • Fish health remains good, mortality low and quality high – proof of system functionality Fish health and quality successfully demonstrated by low mortality and high • Regular testing for geosmin level
Slide 13: Benchmark prices remain high
Benchmark prices remain high–averaging 119 NOK/kg for 2H 2024 Cost development for import of Norwegian fresh Atlantic salmon in Japan Figures in NOK/kg, head-on-gutted 164 157 155 5 Demand of Norwegian 147 5 5 5 145 147 141 5 5 142 140 142 Atlantic salmon in Q4 2024 5 5 136 5 131 5 5 5 131 5 5 5 5 i
Slide 14: The market fundamentals are still attractive – validating our business model
The market fundamentals are still attractive – validating our business model The import costs have stayed above 100 NOK/kg for 3 … translating to robustness in our business model also years – enabling attractive margins… with volumes lower than our capacity NOK / kg (HOG) at steady state production
Slide 15: Financial summary 4th quarter 2024
Financial summary 4th quarter 2024 P&L Q4 2024 Q4 2023 2024 2023 Average price of NOK Revenue and other income 3 365 0 3 509 6 123/kg in the 4th quarter Operating expenses -49 882 -30 258 -97 432 -63 771 Net financials - 15 749 -22 702 -47 348 -26 944 Earnings before taxes -62 266 -52 960 -141 271 -
Slide 16: Outlook 2025: Short-term impacts, but encouraging expectations
Outlook 2025: Short-term impacts, but overall encouraging expectations for the first year of full operations • 2025 - first year of full-year operations, and all equipment installations are now completed Negative short-term impact • Reduced feeding following turbidity issues and biofilter incidents
Slide 17: 2025 the first year of full operations
2025 the first year of full operations, with robust fundamentals in place and encouraging outlook PROXIMAR - on track to deliver on goals from 2021 Summary: - Completed facility at very attractive CAPEX levels (NOK ~240 / kg) The RAS facility is demonstrating good and stable performance with adequ
Slide 18: Q&A
Company Presentation 1 Q&A
Slide 19: Consolidated Financial Statement Q4 2024
Company Presentation Consolidated Financial Statement Q4 2024 1 PRIVATE AND CONFIDENTIAL
Slide 20: Statement from the Board of Directors
Statement from the Board of Directors We hereby confirm that the financial statements for the period from 1 To the best of our knowledge, the report gives a true and fair view of the January through 31 December 2024 to the best of our knowledge have main events during the accounting period and their
Slide 21: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income (Amounts in NOK 1.000) Note Q4 2024 Q4 2023 2024 2023 Revenue 3.365 - 3.509 - Other income - - - 6 Revenue and other income 3.365 - 3.509 6 Cost of materials 16.378 2.552 41.658 5.930 Changes in biomass 2 -32.375 -436 -88.218 -17.772 Net fair value adju
Slide 22: Consolidated statement of financial position
Consolidated statement of financial position (Amounts in NOK 1.000) Note 2024 2023 Note 2024 2023 ASSETS EQUITY AND LIABILITIES Non-current assets Equity Assets under construction 3 154.177 339.042 Share capital 7 14.217 5.967 Share premium reserve 373.561 366.597 Land 3 91.987 91.436 Other equity 8
Slide 23: Consolidated statement of cash flows
Consolidated statement of cash flows (Amounts in NOK 1.000) Note Q4 2024 Q4 2023 2024 2023 Cash flow from operating activities Loss before tax -62.266 -52.960 -141.270 -90.709 Income taxes paid - - - - Depreciation 3, 4 15.320 6.075 49.667 15.270 Change trade receivables 163 6 - - Change other recei
Slide 24: 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 2023 3.979 363.654 22.562 -274 389.922 Loss for the period -92.723 -622 -93.345 Currency effect on investment in subsidia
Slide 25: Summary of significant accounting policies
Note 1 - Summary of significant accounting policies The Proximar Seafood group is a Norwegian-registered seafood company engaged in land-based fish farming, with its head office in Bergen, Norway. Proximar Group is constructing a production facility for Atlantic salmon close to Mount Fuji, Japan, th
Slide 26: Biological assets (1/3)
Note 2 – Biological assets (1/3) Biological assets are, in accordance with IAS 41 and IFRS 13, measured at fair value less the associated sales costs, unless the fair value cannot be measured reliably (in which case the cost-method will be applied as for the hatchery and nursery facility). For salmo
Slide 27: Biological assets (2/3)
Note 2 – Biological assets (2/3) Amounts in 1,000 NOK Volume of biological assets Q4 2024 Q4 2023 YTD 2024 YTD 2023 2023 Biological assets beginning of period 733 12 40 0 0 Increase due to production 359 28 1.062 40 40 Reduction due to harvest/sale -34 -35 0 Reduction due to incident based mortality
Slide 28: Biological assets (3/3)
Note 2 – Biological assets (3/3) Amounts in 1,000 NOK Specification of biological assets Number of fish Biomass Cost of Fair value Carrying Biological assets (1000) (tonnes) production *** adjustment ** amount Smolt 1.025 26 16.722 16.722 Non-harvestable fish 1.020 1.032 92.978 9.018 101.996 Total 3
Slide 29: Land, property, plant and equipment (1/2)
Note 3 - Land, property, plant and equipment (1/2) (Amounts in NOK 1.000) Split between Right-of-use assets and owned assets: 2024 2023 Carrying amount RoU-assets 15.371 922 Carrying amount owned assets 1.409.652 1.278.387 Total property, plant and equipment incl. right- of-use assets 1.425.022 1.27
Slide 30: Land, property, plant and equipment (2/2)
Note 3 - Land, property, plant and equipment (2/2) Amounts in 1.000 NOK Net carrying amount at 31 December 2024 154.177 91.987 613.966 434.847 114.675 1.409.652 Assets under Equipment and Year ended 31 December 2023 construction Land Buildings RAS vehicles Total Cost at 1 January 2023 618.162 31.568
Slide 31: Leasing
Note 4 – Leasing Amounts in NOK 1,000 Proximar Seafood AS leasing agreements consists of buildings and equipment used in the administration. The leasing contract of buildings ended May 2024. Proximar Ltd. leasing agreements consists of buildings, machine and vehicles used for personnel and in the op
Slide 32: Long term receivables
Note 5 – Long term receivables In the process of completing the equipment-installation, the company has paid NOK 28.7 million to subcontractors of the company's contractual counterparty to ensure completion as the contractual counterparty has experienced payment difficulties. The company has establi
Slide 33: Earnings per share
Note 6 - Earnings per share Amounts in NOK Q4 2024 Q4 2023 2024 2023 Profit (loss) for the year -63.483.616 -44.830.499 -139.204.289 -22.561.021 Weighted average number of outstanding shares during the year 142.172.780 59.586.258 139.878.824 39.787.650 Earnings (loss) per share - basic and diluted (
Slide 34: Share capital and shareholders (1/2)
Note 7 - Share capital and shareholders (1/2) The share capital of NOK 14.217.278 consisted of 142.172.780 shares, each with a nominal value of NOK 0.1 at the end of 2024. All shares carry equal rights. The movement in the number of shares during the year was as follows: 2024 2023 Ordinary shares at
Slide 35: Share capital and shareholders (2/2)
Note 7 - Share capital and shareholders (2/2) List of main shareholders at 31 December 2024 and 2023 2024 2023 Number of Ownership Number of Ownership Shareholder shares percentage shares percentage Grieg Kapital AS 14.690.049 10,3 % 6.480.049 10,86% Nordfjord AS 9.970.336 7,0 % 425.000 0,71% Kvassh
Slide 36: Borrowings and other current liabilities (1/3)
Note 8 - Borrowings and other current liabilities (1/3) The Group has, through its subsidiary Proximar Ltd. (Japan), signed a new loan agreement with Japan Finance Corporation, securing JPY 300 million (approx. NOK 22 million) in additional funds. The loan, provided at 1.3 % p.a., has a 2 years grac
Slide 37: Borrowings and other current liabilities (2/3)
Note 8 - Borrowings and other current liabilities (2/3) Amounts in NOK 1,000 The convertible bond has an equity component and a debt component. Transaction costs have reduced the total proceeds received from the issue. The transaction costs have been split between the debt and equity component pro r
Slide 38: Borrowings and other current liabilities (3/3)
Note 8 - Borrowings and other current liabilities (3/3) Amounts in NOK 1,000 In 2023, major shareholder Grieg Kapital AS provided Proximar Seafood AS with a loan guarantee of up to NOK 130 million. Following the issue, a loan was executed for a total of NOK 104.2 million. The loan shall be repaid in