Kaldvik As · OSL:KLDVK
Kaldvik As — Ice Fish Farm AS — Q1 2022 Earnings Presentation
27 slides from Kaldvik As's earnings presentation, May 25, 2022
Slide 1: Ice Fish Farm AS First Quarter 2022 results
Ice Fish Farm AS First Quarter 2022 results 25 May 2022 Guðmundur Gíslason, CEO Róbert Róbertsson, CFO PRIVATE & CONFIDENTIAL
Slide 2: Forward looking statements
Forward looking statements This Presentation contains forward-looking information and statements relating to the business, financial performance and results of the Group and/or industry and markets in which it operates. Forward-looking statements are statements that are not historical facts and may
Slide 3: Table of contents
Table of contents Key Highlights Financial Performance Combined Growth Path Outlook PRIVATE & CONFIDENTIAL Appendix 3
Slide 4: Highlights in Q1 2022
Highlights in Q1 2022 EBIT/kg (NOK) Salmon ICE FISH FARM AS harvested 2.712 tons in Q1 2022 compared to 1.496.tons in 2021. 12,8 EBIT for salmon amounted to NOK -4,8 per kg in Q1 2022 compared to NOK 4,4 per kg in Q1 2021. 4,4 4,2 Total of 7,2M 330 gr smolts for 2022 generation. All will Q1 2022 Q1
Slide 5: Table of contents
Table of contents Key Highlights Financial Performance Combined Growth Path Outlook PRIVATE & CONFIDENTIAL Appendix 5
Slide 6: Financial summary
Financial summary Challenging Quarter Revenue Group (NOK’m) Harvested volumes doubled in Q1 2022 compared to Q1 2021. 322,8 Despite increased harvesting and higher revenues the EBITDA was negative -1M NOK in Q1. Investments for the past couple of years cause increased depreciation which cause Operat
Slide 7: Financial summary: Strong balance sheet
Financial summary Strong balance sheet Assets NOKm Equity ratio Assets Biological assets decreased 84M NOK 1.658.486 1.713.133 368.565 442.801 Slight increase in PPE and investments in and loans to associated companies. 66,3% 1.289.921 1.270.332 Equity 65,5% Strong equity ratio roughly 66% 31.3.2022
Slide 8: Table of contents
Table of contents Key Highlights Financial Performance Combined Growth Path Outlook PRIVATE & CONFIDENTIAL Appendix 8
Slide 9: Long term effects of combining the companies will pay off
Long term effects of combining the companies will pay off PRIVATE & CONFIDENTIAL 9
Slide 10: Ice will become a market leader with full access of the East Fjord
Ice will become a market leader with full access of the East Fjord 3 + 1 fjords 1 fjord 4 + 1 fjords 8 + 3 sites 7 sites 15 + 3 sites 3 smolt facilities 3 smolt facilities 6 smolt facilities 1 harvest facility 1 harvest facility 1 harvest facility 27.8kt MAB granted 16 kt MAB granted 43.8 kt MAB gra
Slide 11: Production Synergy – Potential for significant improvement
Production Synergy – Potential for significant improvement Reach Stable Yearly Production ≈ 30 000 tonnes. Yearly release 7-8 million post smolt >300 gram Reduced Biological Risk Bigger smolts - > reduced time in sea -> reduce exposure for risks 15 (18) sites and 4 (5) fjords Possibility to separate
Slide 12: Highlights in Q1 2022 – Combination of ICE FISH FARM and Laxar
Highlights in Q1 2022 – Combination of ICE FISH FARM and Laxar Transaction overview Balance sheet of Laxar Expected closing on the 30th May 2022 EUR 31.12.2021 31.12.2020 Licenses 664.839 677.537 Property, Plant and Equipment: 42.060.948 35.015.731 Deferred income tax asset 2.974.297 327.012 Busines
Slide 13: Clear strategical combination rationale
Clear strategical combination rationale Economics of Operational Regulatory Bigger smolts Sales & scale improvment Marketing Economics of scale Will have 100% control United front from East Access to big smolt Brand building through larger of our smolt Coast towards production from Premium salmon, p
Slide 14: Initiatives to improve performance
Initiatives to improve performance Operations and mitigating actions Smolt strategy Production areas – more fjords/more area Full control in the East Coast Better utilization of crew and equipment Same harvest station Better utilization of fish transport (well boat) ISA Actions Surveillance and moni
Slide 15: Certifications that ensure environmentally-friendly production
Certifications that ensure environmentally-friendly production Certified quality and sustainable aquaculture All salmon will be certified All smolt put to sea in 2022 will be certified salmon and possible to sell to high end customers and retailers in USA. Or goal of producing superior premium salmo
Slide 16: Table of contents
Table of contents Key Highlights Financial Performance Combined Growth Path Outloook PRIVATE & CONFIDENTIAL Appendix 16
Slide 17: Outlook combined company
Outlook combined company Future Growth Market Finalise acquisition of Laxar Good opportunity globally for 10th tons license pending in application. premium salmon. Upon finalisation of expansion projects, total smolt capacity will be 8 million at average size of close to 400gr, corresponding to a pl
Slide 18: PRIVATE & CONFIDENTIAL
o PREMIUM TICELAND : SOMEGA “QUALITY ¢ 6 100% 18
Slide 19: Table of contents
Table of contents Key Highlights Financial performance Combined Growth Path Outlook PRIVATE & CONFIDENTIAL Appendix 19
Slide 20: Ice Fish Farm at a glance combined with Laxar
Ice Fish Farm at a glance combined with Laxar Key Highlights Established farming stronghold Fjords with granted licenses Fjords granted license in 2022 100% control of Region 13 farming locations and 36,8th Fjords still waiting to get biomass measurements, before an auction tons MAB licenses potenti
Slide 21: Laxabraut smolt station owned by Laxar
Laxabraut smolt station owned by Laxar Huge capacity Over 30 thousand cubic of tank space. Been in operation since 2017 Delivered big smolts with average weigh of 318gr Most likely biggest smolt station in the world Possible to double production in future Challenge has been sea transfer Good improve
Slide 22: Joint management team
Joint management team Management structure Joint management team CEO - Guðmundur Gíslason Boards of ICE and Laxar ▪ Bs in Business and MBA from University of Reykjavík ▪ Co-founder of ICE Fish Farm in 2012 ▪ Previous experience family car importer company B&L and bult up first data center in Iceland
Slide 23: Licenses status with 71,8 MAB potential
Licenses status with 71,8 MAB potential Issued licenses 36,8 MAB Current applications 17 MAB Potential licenses 18 MAB 15.800 2 10.000 3.500 3 1 6.500 12.800 7.000 2.300 16.000 56.000 2.300 41.000 34.500 18.500 Current license at Laxar license in Current license at Stöðvarfjörður Seyðisfjörður Seyði
Slide 24: Steps for improved production in 2022
Steps for improved production in 2022 Smolt farming Sea farming Processing and distribution End customer ► Ongoing investments for improved ► Production zones to lower risk ► A box factory is being set up at ► Contract for premium salmon from ICE production and more capacity in all ► Shorten time in
Slide 25: Structure of ICE FISH FARM
Structure of ICE FISH FARM Current Interim Merged Laxar (Consolidation) Ice Fish farm Ice Fish farm (Parent) Ice Fish farm (Parent) (Parent) Fiskeldi Austfjarða Fiskeldi Austfjarða Laxar (Consolidation) Laxar (Parent) (100%) ICE + Laxar + Rifós + Búlandstindur (100%) Laxar 100% (Subsidiary) Rifós 99
Slide 26: Risk diversion, smolt south and north, and spread farming over 18 locations
Risk diversion, smolt south and north, and spread farmig over 18 locations Farming locations: Kòpasker (Post smolt station) Rifòs East Fjords (Smolt station) Seyðisfjörður Mjóifjörður Norðfjarðaflói Reyðafjörður 18 farming Fáskrúðsfjörður locations Stöðvafjörður Berufjörður Bulandstindur (Processing
Slide 27: PRIVATE & CONFIDENTIAL
o PREMIUM TICELAND : SOMEGA “QUALITY ¢ 6 100% 23