Aker Biomarine Asa · OSL:AKBM
Aker Biomarine Asa — Investor Day (December 2021)
98 slides from Aker Biomarine Asa's investor day presentation, Dec 1, 2021
Slide 1: Strongly positioned for growth and value creation
[Picture TBD] Strongly positioned for growth and value creation Capital Markets Update Aker BioMarine ASA 1 December 2021
Slide 2: 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 3: Content
Content Page 5 Company position and targets Page 21 Krill harvesting in Antarctica Page 33 Animal Health & Nutrition (Qrill) Page 43 Human Health & Nutrition (Superba) Page 61 Brands Page 68 Innovations Page 84 Financials Page 97 Key takeaways 3
Slide 4: Strongly positioned for growth and value creation
Aker BioMarine ASA - Capital Markets Update 2021 Strongly positioned for growth and value creation 1 Strongly positioned in attractive market for human and animal nutrition with high sustainability standards 2 Fully-integrated krill producer with cost leadership and high operational leverage 3 Poise
Slide 5: Strongly positioned in attractive market for human and animal nutrition
Strongly positioned in attractive market for human and animal nutrition with high sustainability standards 5
Slide 6: Krill is among the species with the largest biomass on earth
Krill is among the species with Aker BioMarine’s share of global the largest biomass krill production 65% on earth 500 million tons 95 total weight of the global krill granted patents 6
Slide 7: Aker BioMarine controls the entire krill value chain
Aker BioMarine controls the entire krill value chain from harvesting to production all the way to the consumer KRILL INGREDIENT RESEARCH & KRILL OIL SALES & CONSUMER HARVESTING PRODUCTION DEVELOPMENT PRODUCTION MARKETING BRANDS 65% 85% 135 >80% >65 >13m of total global packed and labeled published s
Slide 8: We're in business to improve human and planetary health
We’re in business to improve human NUTRITION, HEALTH & ACTION ON and planetary WELLBEING CLIMATE CHANGE health RESPONSIBLE SUSTAINABLE CONSUMPTION FOOD & PRODUCTION PRODUCTION THE SUSTAINABLE OCEAN BLUE ECONOMY HEALTH COMMITTED TO A STRUCTURED ESG REPORTING SCHEME PROVIDING TRANSPARENCY ON OUR PROGR
Slide 9: Sustainability is at the core of our business
Sustainability is at the core of our business Customer demands and increased awareness Planetary and Economic societal needs opportunities Regulatory push and 9 frameworks
Slide 10: Our 2030 commitments support our mission
Our 2030 commitments support our mission to improve human and planetary health… 1 BILLION EXTRA SUSTAINABLE 5 BILLION DECARBONIZE SERVINGS DIETS DOSES AQUA FEED Making aquaculture Developing innovative Combating lifestyle Decarbonizing aqua and production more products that play an diseases by deliv
Slide 11: Goals that guide responsible operations throughout the value chain
…with goals that guide us in responsible operations throughout the value chain IMPROVE KEEP FULL REDUCE CARBON SUSTAINABILITY CERTIFICATIONS CIRCULARITY INTENSITY Improve sustainability of Maintain unconditional Ensure full circularity Reduce our carbon fisheries through MSC certification and on all
Slide 12: Aker BioMarine is positioned in markets with strong and consistent growth
Aker BioMarine is positioned in markets with strong and consistent growth Global aquaculture Global supplements Global pet food Global retail protein production market market market Million tons 1 USD billion2 USD billion3 USD billion4 106 40 205 123 +2.6% p.a +7.0% p.a +4.6% p.a 34 +4.2% p.a 82 86
Slide 13: The rich nutritional profile of krill
The rich nutritional profile of krill… 25 % FAT 58% CRUDE PROTEIN 10 % ASH 7 % WATER, OTHERS FATTY ACIDS LIPID COMPOSITION AMINO ACIDS TMAO CHITIN (g/100g extracted fat) (%) (%) 142 mg N/100g meal 4% 60 NaCl Aspartic acid Glutamic 2.7% Phospholipids acid Cholesterol 1.4 10 Others Alanine 13 30 11.2
Slide 14: Promotes improvement in health & nutrition across species
… promotes improvement in health & nutrition across species Human health & Aquaculture health & Pet health & nutrition ingredients nutrition ingredients nutrition ingredients ▪ Higher omega-3 uptake in the body compared to ▪ Functions as a feeding stimulant leading to ▪ Higher omega-3 uptake compare
Slide 15: Increase krill value and reduce cost
Increase krill value and reduce cost Driving up value of krill Driving down production cost Relative margin contribution per product Example krill oil production, USD/kg 35 35 30 30 25 25 20 20 15 15 10 10 5 5 - - Aqua feed 2016 Pet2017 food Protein 2018 Krill oil 2019 Lysoveta 2020 Brands 2021 ingr
Slide 16: Improved financial performance the last years
Improved financial performance the last years… … but unsatisfactory sales and profitability in 2021 Revenue Adj. EBITDA1 Adj. EBITDA margin USD million USD million % 350 100 30% 27% 25% 25% 300 24% 25% 75 22% 250 20% 200 50 15% 150 10% 100 25 5% 50 0 0 0% 2016 2017 2018 2019 2020 2021e 2016 2017 201
Slide 17: Roadmap for growth and value creation
Aker BioMarine - Roadmap for growth and value creation Operational leverage, margin uplift and unlocking the long-term growth potential Ambition to nearly double revenues the next four years Main value creation pillars Revenue, USD million1 600 ▪ Grow Qrill product value and prices Increase ▪ Signif
Slide 18: Our agenda: Profitable growth and exploit the large market potential
Our agenda: Profitable growth and exploit the large market potential Krill harvesting Krill meal Krill oil Private label and consumer brands in US Increase # of fishing days, improve Lift price and grow business Short- and long-term sales Capitalize on relationships operations and yield volume in aq
Slide 19: Upside potential to our 2025 target scenario
Upside potential to our 2025 target scenario Examples which demonstrate the impact of success exceeding our target range EBITDA, USD million ~5-10 ~20-25 Our private label offering in the US, Lang Pharma Nutrition, supplies around 70 dietary supplement and nutrition products to the largest retail ch
Slide 20: Our short-term priorities
Our short-term priorities Significantly increasing sales is job # 1 1 Superba turnaround 20%-25% targeted 2022 revenue growth 2 Accelerate growth in US brands 20%-25% 3 High and efficient harvesting targeted 2022 adj. EBITDA margin 20
Slide 21: Fully-integrated krill producer with cost leadership and high operational leverage
Fully-integrated krill producer with cost leadership and high operational leverage 21
Slide 22: Our operations in Antarctica
Our operations in Antarctica Large krill resource-base with strictly regulated fisheries Krill fishing in Area 48 %: max share of precautionary catch limit per area ▪ Large and growing krill biomass in Antarctica ▪ Scientific study 1 from 2019 showing a 17% increase from 2002 ▪ Minor share of biomas
Slide 23: A modern and effective krill vessel fleet
A modern and effective krill vessel fleet Aker BioMarine’s global market share of catch krill volumes ~65% in the 2020/2021 season Antarctic Endurance Antarctic Sea Saga Sea Antarctic Provider HARVESTING VESSEL HARVESTING VESSEL HARVESTING VESSEL SUPPORT VESSEL • In operation: 2019 • In operation: 1
Slide 24: Aker BioMarine operates the most efficient fleet in the industry
Aker BioMarine operates the most efficient fleet in the industry Leading to cost leadership >3x higher production per vessel… … and the leading global producer 2021 average catch per vessel in area 48.1 (MT) 34% 34% 35% 35% 46% >3x 66% 66% 65% 65% 54% 2017 2018 2019 2020 2021 Aker BioMarine’s global
Slide 25: Krill harvesting in 2020 and 2021 significantly lower than expected
Krill harvesting in 2020 and 2021 significantly lower than expected Average harvesting per production day Example from Antarctic Sea, MT per day -30% -20% ▪ 2020 was a year with significant downtime for the total fleet due to technical issues ▪ Fully-operational fleet in 2021 ▪ In the 2021 season, t
Slide 26: Maximize production and reduce cost
Maximize production and reduce cost Produce more Produce cheaper Produce cleaner Cost efficiency program; Increase # of fishing days Energy efficiency minimize cost base Harvesting improvements Optimize logistics Fleet decarbonization and product yield 26
Slide 27: Offshore krill searching strategy to increase number of fishing days
Offshore krill searching strategy to increase number of fishing days Effective search with low carbon footprint Use of the Sounder USV* to optimize krill harvesting ▪ Remotely controlled from shore or ship ▪ Systems from Kongsberg Maritime’s range of sensors for hydroacoustic mapping, positioning, c
Slide 28: Important measures to increase fishing volumes
Important measures to increase fishing volumes However, there will be natural harvesting variations from year to year in Antarctica also in the future Fishing days Production per fishing day Days MT ▪ Increase no. of fishing days per year 360 300 1. Season duration ▪ More efficient yard stay logisti
Slide 29: Roadmap for harvesting growth and value creation
Roadmap for harvesting growth and value creation We prepare for seasonal harvesting variations Offshore harvesting history and expectations Main value creation pillars Metric tons (MT) ▪ Use drones to improve the krill searching ▪ Expand krill holding tank capacity on vessels 80,000 Increase number
Slide 30: Poised for high sales growth across all products and brands
Poised for high sales growth across all products and brands 30
Slide 31: Three modern vessels are a core part of our production process
Three modern vessels are a core part of our production process • 20-32% Fat • 55-69% Protein • 41% PL • 130 ppm Astaxanthin • 1.1-1.4% Choline • 98% fat (TG) • 8 – 15% % omega-3 FA • 0% protein • 650 – 1600 ppm Astaxanthin • 0.5-2% Cholesterol • 15-30% Fat • >54% Protein • 40% PL • >0.8-1.5% Cholest
Slide 32: Invested significantly in R&D and IP
We have invested significantly in R&D and IP to document the health and nutrition benefits and potential from krill 135 published studies 95 granted patents 32
Slide 33: Better fish health, better quality and improved growth
Better fish health, better quality and improved growth 33
Slide 34: Qrill Aqua is a specialty performance ingredient in fish feed
Qrill Aqua is a specialty performance ingredient in fish feed Providing extra performance to secure profitability, sustainability and health Attractive market and large demand for krill-based nutrients Well documented and demonstrated benefits for farmers Sustainable and certified ingredient Well-fu
Slide 35: Growing demand for aquaculture feed
Growing demand for aquaculture feed Availability of omega-3 is a main industry concern Expected demand growth for fish feed in key Curbed supply of omega-3 sources likely to species drive price and demand for Qrill Global aquaculture feed, million tons Omega-3 sources for aquaculture, million tons 2
Slide 36: Qrill Aqua provides a well-documented increase in salmon growth
Qrill Aqua provides a well-documented increase in salmon growth 104 g 300 g 5.5 kg 6.7 kg TRANSFER → SEA PHASE SEA PHASE → HARVEST (10 weeks) A) Control: 52% FM B) Diet: 46% FM + 7.5% QRILL Aqua C) Diet: 40% FM + 15% QRILL Aqua A) Control: 30% FM B) Diet: 20% FM + 10% QRILL Aqua 1,400 Increased feed
Slide 37: Qrill Aqua improves fillet quality and salmon health
Qrill Aqua improves fillet quality and salmon health Firmer fillets Better coloration Less gaping (%) Fat on heart surface (Salmofan dorsal, score) (0=no fat and 3= severe fat coverage) 195 24.5 25.4 3.4 0.7 180 2.5 0.4 Control QRILL Aqua Control QRILL Aqua Control QRILL Aqua Control QRILL Aqua Sour
Slide 38: Qrill Aqua in shrimp feed improves feed intake and production
Qrill Aqua in shrimp feed improves feed intake and production Shrimp feed diets containing 3% krill meal A minimum of 2% krill meal is needed achieved the highest final body weight with a lower FCR and higher yield in plant-based diets to significantly accelerate shrimp growth, while compared to die
Slide 39: Qrill Aqua has a diversified customer base
Qrill Aqua has a diversified customer base Last 30 China Americas Other 1 Marine Fish Rest of Asia Shrimp >70 6 3 2 Next 30 customers main regions main segments 3 Europe Oceanea 4 10 9 5 Salmon 8 India 7 6 39
Slide 40: Qrill Pet provides market differentiation and higher margins
Qrill Pet provides valuable market differentiation for customers and higher margins for Aker BioMarine Higher margins in the pet segment USD per kg Margin Production cost Qrill Aqua Qrill Pet 40
Slide 41: High effect on omega-3 index from QRILL Pet
High effect on omega-3 index from QRILL Pet Increased omega-3 index after Qrill Pet supplementation compared with fish oil Krill-rich diet increased the omega-3 index of active dogs by 41% Omega-3 index (%) EPA(%) DHA(%) Choline levels ( µmol/L) Omega-3 index (%) 13.3 6.35 4.42 2.46 5.80 ▪ Objective
Slide 42: Qrill – Roadmap for growth and value creation
Qrill – Roadmap for growth and value creation Margin improvement mainly through price increase Delivering on our growth ambitions Main value creation pillars Revenue, USD million1 ▪ Improve margins through price ▪ Further grow business volume with companies in aqua feed industry 150 Qrill Aqua ▪ Foc
Slide 43: Krill oil is an efficient delivery form of vital nutrients
Krill oil is an efficient delivery form of vital nutrients, choline & omega-3s 43
Slide 44: Omega-3 – one of the most researched molecules in history
Omega-3 – one of the most researched molecule in history Above 44,000 studies Penicillin Vitamin D Aspirin Prednisone Folic acid Omega-3s Vitamin E Paclitaxel Sodium Valium Acetominophen Probiotics Metformin Amoxicillin Omeprazole Lovastatin Lipitor Hydrochlorothiazide Atenolol 0 20,000 40,000 60,00
Slide 45: Strong underlying need for omega-3 supplements
Strong underlying need for omega-3 supplements >70% >90% of the US population is deficient believe omega 3s have in omega-3s positive effect Source: Progress in Lipids, Nielsen 45
Slide 46: Superba addresses main barriers for consumers not taking omega-3
Superba krill oil is addressing the main barriers for consumers not taking omega-3 supplements Fishy burps after taking 1 Bad Aftertaste 1 Krill oil is water soluble and Capsule size is too big 2 therefore fully blends in the Too expensive 1 stomach, while fish oil separates and gives you Don’t see
Slide 47: Superba provides an attractive value proposition
Superba provides an attractive value proposition to consumers, brands and retailers Consumer friendly Retailers and brand owners sharing a much larger gross margin per unit €10.80 for €25.90 for 120 caps 60 caps VAT 18.4 Gross margin 7.2 Packaging Encapsulation Ingredient Fish oil Krill oil 47
Slide 48: A growing and attractive omega-3 market
A growing and attractive omega-3 market Superba krill oil will continue to outpace the general market growth Global market for omega-3 estimated growth by 3-4% annually USD billion CAGR CAGR CAGR 5 13% 2% 3.5% The global omega-3 market size is expected to continue to grow significantly Consumers are
Slide 49: Doubling of sales 2016-2020 – large drop in South Korea in 2021
Doubling of sales 2016-2020 – large drop in sales to South Korea in 2021 High growth ambitions maintained Superba sales volume Metric tons (MT) 2x ▪ Regulatory issues in South Korea ▪ Regulatory bodies tightened krill oil regulation impacting both the customers ability to market products and consume
Slide 50: Covid has impacted our ability to develop new business
Covid has impacted our ability to develop new business… … similar to several other comparable companies In the US, new product launches in the Health Global retail sales and Hygiene category declined by declined by 13% 5.7% in 2020 vs. 2019 in 2020 vs. 2019 In EU, retail sales declined by For B2B co
Slide 51: In the US, the krill consumer has shifted channel
Example: In the US, the krill consumer is still there, they have just shifted channel Soring US e-commerce activity 2020 Retail store foot traffic Krill oil channel shift USD billion %, Year-over-year Net change, 2020 vs. 2019, USD million 900 20% 15 800 10% 10 700 0% 600 5 500 -10% 0 400 -20% 300 -
Slide 52: Superba turnaround action plan
Superba turnaround action plan Short-term fix Reach full potential Support & fuel 52
Slide 53: Short-term fix: Sales prospect work
Short-term fix: Sales prospect work Identified and maturing >80 prospects with a total potential of ~800 MT Geographical diverse list Good mix of large and small opportunities Number of prospects 61 RoW, 19% China, 35% Europe, 10% ~800 MT 14 6 United Other Asia, 12% 2 States, 25% 1st 2nd 3rd 4th Qua
Slide 54: Superba turnaround identified a set of sales opportunities
The Superba turnaround and plan has identified a set of sales opportunities, incl. short-term potential Metric tons (MT) >3.5 2021 sales Re-establish US accelerated Unlock potential Facilitate Targeted New claims Additional Near-term Identified volume South Korea growth plan in China growth in the c
Slide 55: A large potential for krill oil sales growth
A large potential for krill oil sales growth, independent of analysis method Demand potential estimates ranging from 1,500 to 3,000 tons Identified Potential per Krill oil penetration1 Equivalizing market shares opportunity Analysis of krill oil volume sold by market in Analysis of share of krill oi
Slide 56: The keys to reigniting Korea are in motion
Example: The keys to reigniting Korea are in motion Superba sales volume in South Korea Brands failed the consumers Metric tons (MT) ▪ Brands were too aggressive with their claims ▪ Fraudulent krill oil products (blends with soya and fish oils) ▪ Regulatory bodies struck down particularly hard due t
Slide 57: Unlocking the wider Asian potential
Example: Unlocking the wider Asian potential Replicate South Korea success Home shopping on TV in Japan Home shopping on TV in Taiwan One of five certified for DouYin ▪ Rare opportunity to guest host a large ▪ A successful launch in summer 2021 ▪ For a product to be sold on DouYin, the Japanese TV s
Slide 58: US accelerated growth plan – Multi Level Marketing
Example: US accelerated growth plan – Multi Level Marketing (MLM) 58
Slide 59: Short-term innovations
Example: Short-term innovations Boost Krill 1+1 = 3 Provide extra claim Description Description Description Boosting krill oil nutrients Enhance other ingredients Add an ingredient to either concentration to increase with krill oil’s superior cell strengthen claim or to add a competitive edge delive
Slide 60: Superba - Roadmap for growth and value creation
Superba - Roadmap for growth and value creation Utilize the large volume potential for krill oil in core markets Superba turnaround to provide significant growth Main value creation pillars Revenue, USD million1 Quick ▪ Intensify sales prospect work turnaround and ▪ Close the 5-10 identified quick-w
Slide 61: Brands
PURE ANTARCTIC KRILL OIL with pwoserours NO FISHY AFTERTASTE ant | 4006 PURE ANTARCTIC OIL KRILL ANIMVWOI8 Yan (vy) 61
Slide 62: Consumer brands and private label brands
Consumer brands and private label brands Two different business models in the retail market Customer brands Private label brands ▪ Creating a position directly to the consumers ▪ Product produced by a third-party manufacturer, like Lang, and sold with prominent products under a retailer’s brand name
Slide 63: Private label is an increasingly attractive business in the US
Private label is an increasingly attractive business in the US Transformed from pure financial tactics to a strategic necessity for retailers Retailers develop their own products to meet changing consumer needs and grow profitability ▪ Increased shelf space in stores opens for more private label Glo
Slide 64: Lang Pharma Nutrition, our private label offering in the US
Lang Pharma Nutrition, our private label offering in the US Strategy of being a long-term partner for retailers and bring in products that differentiate ▪ Lang is an experienced and recognized company with a good track record and a high level of service ▪ In 2019, Aker BioMarine acquired Lang Pharma
Slide 65: Epion Brands, our retail and consumer brand company in the US
Epion Brands, our retail and consumer brand company in the US Two of the major retailer channels move to full distribution in stores during Q1 2022, further increasing the reach for the Kori krill oil brand ▪ In 2020, Aker BioMarine established the independent company Epion Brands Inc. to launch Kor
Slide 66: Introducing new innovations that will be ready for 2022
Introducing new innovations that will be ready for 2022 Introducing Kori krill oil gummies Introducing Kori Mind & Body ▪ Heart healthy omega-3s ▪ Omega-3 – heart health & building blocks for a healthy ▪ 1st Pure Krill Gummy in the brain market ▪ Vitamin B-12 – nervous system ▪ Non-GMO Krill oil wit
Slide 67: Brands - Roadmap for growth and value creation
Brands - Roadmap for growth and value creation Grow both private label and own consumer brand activities Steady growth the past years of 15% p.a. Main value creation pillars Revenue, USD million1 ▪ Capitalize on strong relationships with the seven 250 Further develop largest retail chains; 85% of to
Slide 68: Well-developed innovation pipeline driving growth in new areas
Well-developed innovation pipeline driving growth in new areas 68
Slide 69: Innovation is at the core of Aker BioMarine's DNA
Innovation is at the core of Aker BioMarine’s DNA It is embedded in our culture and driven by a skilled and diverse team and extensive external networks PhDs working on R&D Network of external Patents protecting academic research new innovations institutes 35 14 15+ 7 Employees dedicated Number of c
Slide 70: We innovate in all areas of the business with three new launches in 2021
We innovate in all areas of the business with three new launches in 2021 Innovation across the business - new products, New launches in 2021 new business models and new technologies New business model 1 A new era of innovation in brain and eye health with LPC-EPA/DHA ™ 2.0 2 Best-in-class protein pe
Slide 71: Lysoveta
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Slide 72: Lysoveta is at the forefront of brain health innovation
Lysoveta is at the forefront of brain health innovation EP EPA/DHA is important for brain EPA/DHA is transported into the brain Growing focus on brain health development and functioning in LPC form - Lysoveta product family ▪ The body is starting to outperform the brain Cell survival EPA/DHA linked
Slide 73: Transport from the bloodstream into the brain is tightly controlled
Transport from the bloodstream and into the brain is tightly controlled LPC-bound EPA/DHA is the form that is actively transported across the blood-brain barrier BLOOD-BRAIN BARRIER MFSD2A EPA/DHA-EE/FFA EPA/DHA-TG MFSD2A ™ LPC-EPA/DHA Source: Nguyen, L.N., et al., Mfsd2a is a transporter for the es
Slide 74: Lysoveta is the first LPC-EPA/DHA consumer product with extensive IP protection
Lysoveta is the first LPC-EPA/DHA consumer product to market and has extensive IP protection Product development Biological mechanisms and effects Broad IP protection Unit cost for production alternatives Krill Alternative A Alternative B Alternative C ▪ Investment in development of robust, scalable
Slide 75: Fast tracking time-to-market in supplements while maximizing long-term value
Fast tracking time-to-market in supplements while maximizing long-term value in new segments Supplement segment – fast-track to market New segments - maximize long-term value Global brain supplement market, USD billion Global market in 2020, USD billion 13.5 82 CAGR 8% 7.7 45 22 7 Brain supplement P
Slide 76: Focus in 2022
Focus in 2022 Key next steps Regulatory approval US approval by year end 2022 Supplement – ready to market Scientific studies Supplement entry & build new segment opportunities Nutraceutical commercial production Building the LPC-EPA/DHA space Dedicated production line at Houston facility Scale comm
Slide 77: INVI Protein
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Slide 78: Entrance into the large and growing market for protein in human nutrition
Aker BioMarine’s entrance into the large and growing market for protein in human nutrition Protein products continue to grow in Growth driven by increasingly Attractive market landscape for the popularity from a large market size informed and demanding consumers launch of INVI protein peptides Prote
Slide 79: Best-in-class nutritional and functional value propositions
Best-in-class nutritional and functional value propositions Exceptional protein Rich in nutritionally Easy to use in final Sustainable quality and uptake important minerals applications clean label 99% Non-GMO 1.0 A perfect Amino Acid Nitrogen Solubility Non-farmed, Wild-caught Score for all Essenti
Slide 80: Premium positioning with lead launch in the US
Premium positioning with lead launch in the US where INVI received regulatory approval in 2021 Positioning in premium protein Lead launch is in the US where INVI Initial target is active nutrition ingredient segment received regulatory approval via B2B sales model Premium protein market, million ton
Slide 81: Focus in 2022
Focus in 2022 Scaling INVI protein peptides with construction of Key next steps launch plant Product and process development at NORTH AMERICA lab-scale and mid-scale Lab-scale product and process development (grams) SCANDINAVIA Construction and planning operational Lab and small-scale start-up of la
Slide 82: Current plastic use and production is unsustainable
Current plastic use and production is unsustainable Increasing regulatory focus and pressure new solutions Our technologies, economies and societies Waste management systems will not be able to need plastic products cope with the linear model ▪ Plastic is a key material and the demand for it will co
Slide 83: AION is scaling circular solutions for industrial B2B plastic products
AION is scaling circular solutions with tech at the core for industrial B2B plastic products AION offers CaaS (Circularity as a Service) for To scale the potential and impact of CaaS AION is in industrial plastic products with a verified and development of the proprietary technology platform, docume
Slide 84: Strengthening the financial position by lifting profits and cash flow
Strengthening the financial position by lifting profits and cash flow 84
Slide 85: Financial status
Financial status After years of growth, Aker BioMarine delivered unsatisfactory sales and profitability in 2021 USD million Revenue Adj. EBITDA1 and margin Net interest-bearing debt 350 100 30% 450 400 300 25% 350 75 250 20% 300 200 250 50 15% 150 200 10% 150 100 25 100 5% 50 50 0 0 0% 0 2016 2017 2
Slide 86: Financial building blocks to support the growth strategy
Financial building blocks to support the company’s growth strategy ▪ Cash flow ▪ Operational cost per unit ▪ Project CAPEX Profitable Efficient ▪ Cost program ▪ Operational leverage growth operations ▪ Innovations ▪ M&A ▪ Cash position ▪ Funding availability Financial Investment ▪ Solidity ▪ Leverag
Slide 87: Aker BioMarine - Roadmap for growth and value creation
Aker BioMarine - Roadmap for growth and value creation Operational leverage, margin uplift and unlocking the long-term growth potential Ambition to nearly double revenues the next four years Main value creation pillars Revenue, USD million1 600 ▪ Grow Qrill product value and prices Increase ▪ Signif
Slide 88: Large historical investments in operational assets and acquisitions
Large historical investments in operational assets and acquisitions Around USD 700 million in fixed asset investments past 10 years Total capex ▪ Over the past 10 years, Aker BioMarine has invested around USD million, estimates from 2021 USD 700 million in fixed assets, including the Houston plant a
Slide 89: Operational leverage: 2x growth impact on EBITDA
Operational leverage: 2x growth impact on EBITDA Realizing the company’s sales target will unlock the underlying operational leverage Index, 2017 = 100 900 ▪ Improved production volumes, particularly in our onshore plant, 800 3.0- 3.5x last 5 years have demonstrated our operational leverage when sal
Slide 90: Cost per unit a key efficiency driver
Cost per unit a key efficiency driver Onshore facility in Houston with large efficiency gain the past years. Offshore to follow suit Offshore volume and unit cost Onshore volume and unit cost Tons and cost per unit (line), estimates from 2021 Tons and cost per unit (line), estimates from 2021 80 000
Slide 91: Positive cost development 2021
Positive cost development 2021 Lowering total cost in Ingredients segment with 2% Ingredients cost base per main area* USD million 166 162 ▪ USD 10 million in reduced cost base 154 for 2021 from above 50 implemented initiatives 124 ▪ Led to a reduction in total cost base compared to 2020 despite sev
Slide 92: Cost program launched late 2019
Cost program launched late 2019 Full effect by 2021 of around USD 15 million of which around USD 7 million is recurring savings Ingredients cost base per main area USD million ▪ A structured cost savings program 15.3 implemented in 2020 ▪ Key cost categories identified with dedicated category owners
Slide 93: The IPO in July 2020 improved our key financial metrics
The IPO in July 2020 improved our key financial metrics Net interest-bearing debt Equity ratio % USD million ▪ IPO on Euronext Growth 53% (Merkur Market at the time) 397 50% in July 2020 ▪ Private placement of USD 225 million 305 ▪ Repayment of the Aker ASA shareholder loan of USD 90 million and dow
Slide 94: Successful refinancing improving capacity, flexibility and terms
Successful refinancing improving capacity, flexibility and terms ▪ Sustainability-linked facility with attached ESG KPIs ▪ Less complicated structure moving from seven different loans/10 tranches to one loan with three tranches (RCF, Term Loan and Overdraft) ▪ Bank syndicate of three banks; DNB, Rab
Slide 95: Deleveraging from 2022 provides significant financial flexibility
Deleveraging from 2022 provides significant financial flexibility Low leverage in the targeted development Potentially large additional debt capacity towards 2025 USD million, for illustrational purposes Leverage ratio* USD million, for illustrational purposes Leverage ratio* 400 7.0 600 7.0 6.0 6.0
Slide 96: Focus on cash generation
Focus on cash generation Further investments in growth opportunities outside current plans and direct returns Targeting increased free cash flow Aker BioMarine will… Annual FCF, USD million, for illustrational purposes 120 80 … continue to expand its business through organic and inorganic growth 40
Slide 97: Key takeaways
Key takeaways Aker BioMarine is strongly positioned for growth and value creation 1 Strongly positioned in attractive market for human and animal nutrition with high sustainability standards 2 Fully-integrated krill producer with cost leadership and high operational leverage 3 Poised for high sales
Slide 98: Aker BioMarine
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