Aker Biomarine Asa · OSL:AKBM
Aker Biomarine Asa — Investor Presentation (April 2021)
35 slides from Aker Biomarine Asa's investor presentation, Apr 30, 2021
Slide 1: Company Presentation April 2021
COMPANY PRESENTATION April 2021 Q3 2020 PRESENTATION 30 OCTOBER 2020 1
Slide 2: Important Notice
Important Notice 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 or a
Slide 3: Our story in a nutshell
Our story in a nutshell #1 246 289 154 125 2017 2018 2019 2020 Global krill harvester and High growth top line Best-in-class human, aqua, krill oil producer trajectory pet ingredients Vertically integrated business Sustainability at the High growth branded and model core private label supplements 3
Slide 4: We harbour ambitious growth and value creation aspirations
We harbour ambitious growth and value creation aspirations… Target positioning 2020 2024 Revenue ($mm) * Strong growth profile 289 >700 Significant profitability expansion, targeting USD 200m EBITDA by 2024 EBITDA margin 27% 30% Undisputed market leader with unsurpassed scale 78 EBITDA ($mm) 200 Enh
Slide 5: Roadmap for long-term value creation
Roadmap for long-term value creation ASPIRATION TO LIFT OPERATING MARGINS MAIN VALUE CREATION PILLARS Adj. EBITDA (USDm) ▪ Expand offshore harvesting capacity over the next few years and lower logistic cost with new service vessel Scale ▪ Substantial increase in onshore volumes ▪ Drive significant c
Slide 6: Sustainability is at the core and central to our way of doing business
Sustainability is at the core and central to our way of doing business 1 Sustainability framework anchored in UN SDGs Dedicated to improving Pioneering sustainable Ingredients for more Doing more and better human health fisheries sustainable aquaculture with less Contributing to science and innovati
Slide 7: UN Sustainability Development Goals form the basis of our framework
UN Sustainability Development Goals form the basis of our framework… 1 9000 studies document the effects of Omega-3’s SPENT ON SAVED1 BY OMEGA 3’S SOCIETY AKBM 60 clinical studies ROLE HEART LUNG DIABETES 15 PHD’s Dedicated to OMEGA-3 helps prevent Contributing to science, Impact for improving lifes
Slide 8: Key focus on preserving human and planetary health
…with key focus on preserving human and planetary health 1 Krill, the worlds largest Biomass Greenhouse gas intensity Increase in growth (t co2e / t edible protein) (grams) 337 Regular feed Qrill Aqua 42 58 = 10 1.7 Krill Salmon Poultry Pork Beef 325 million +18% extra meals Ingredient for a Reducin
Slide 9: Targeting decarbonization and improved human and planetary health
1 Targeting decarbonization and improved human and planetary health NUTRITION, 2030 GOALS HEALTH & ACTION ON 2030 GOALS WELLBEING CLIMATE 1 billion extra servings CHANGE 50% reduction annually of carbon intensity Through ingredients that make Net zero by 2050 RESPONSIBLE aquaculture production more
Slide 10: Decarbonization strategy to improve competitiveness of krill
Aker BioMarine will further improve the competitiveness of krill 1 through an impactful decarbonization strategy Decarbonization roadmap 2020 to 2030 50% reduction in tons of CO2 per krill product produced MT C02e / MT EDIBLE MT CO2 / MT KRILL INGREDIENT PROTEIN 337 58 5.00 42 2.64 1.32 10 2011 2011
Slide 11: Our vertically integrated business model enables significant scale and flexibility
Our vertically integrated business model enables significant scale and 2 flexibility… Harvesting Ingredient production R&D Krill oil production Sales & marketing Distribution & brands ~70% ofkrillglobal catch 30% CO emissions reduction in 2 ~160 published studies >80% ofoil global krill production ~
Slide 12: Driving significant scale, barriers to entry and economic moats
…driving significant scale and barriers to entry and economic moats… 2 Key barriers to entry Upsized utilization within the krill harvest quota in Area 48 and 58 Unbeatable scale ‘000 MT across competitors in the krill sector 892 892 892 892 892 Robust IP portfolio with 76 patent families and >1,200
Slide 13: Substantial operating leverage and margin improvement potential
…resulting in substantial operating leverage and subsequent margin 2 improvement potential Offshore volumes & unit cost Onshore volumes & unit cost USD/MT USD/kg MT MT 2015 2016 2017 2018 2019 2020 2021E 2015 2016 2017 2018 2019 2020 2021E Note: Dotted line in offshore unit cost ($/MT) based on full
Slide 14: Structural consumer megatrends drive attractiveness of human nutrition markets
Structural consumer megatrends drive the fundamental attractiveness 3 of our addressable markets in human nutrition… Overarching global nutritional themes… Burgeoning global food demand Proliferation of lifestyle diseases Ballooning healthcare costs Million MT Top 5 causes of death USDtn +100% >+264
Slide 15: Growth opportunities in aqua feed and pet nutrition markets
…with significant growth opportunities in aqua feed as well as pet 3 nutrition markets Aqua nutrition Pet nutrition Global capture and aquaculture production1 Pet food markets are witnessing …with Premium category accelerating Million MT live weight steady growth… faster than the rest USDbn US pet f
Slide 16: Proprietary, scientifically-driven approach to redefine the VMS category
We leverage our proprietary, scientifically-driven approach to 3 redefine the vitamins and mineral supplements (VMS) category… 17 scientists at AKBM Free product trials 160 studies published over complemented by longstanding relationships with external researchers to support collaboration with exter
Slide 17: Ingredients targeting disease prevention and improved nutrition and health
…with our ingredients targeting disease prevention and promoting 3 improvement in nutrition and health Preventative health ingredients Sustainable marine ingredients Active ingredients Share of 2020 Share of 2020 47% Share of 2020 51% 2% revenue revenue revenue ✓ Higher uptake in the body compared t
Slide 18: Expertise in private label and own branded consumer supplements
We have established significant expertise in both private label and 4 own branded consumer supplements… Private label offering Brand offering Current retailers Revenue breakdown by customer 2020 Traditional Kori BRAND PROFIT MARKETING MARKETING RETAILER MARGIN RETAILER MARGIN New retailers AKER MARG
Slide 19: Runway for growth of Kori brand with broadening US retail partnerships
…with substantial runway for growth of Kori brand on the back of 4 broadening partnerships with US retailers UNITS SOLD AND MARKETING COST PROMISING MARKETING RESULTS ▪ Return on media spend four times higher in Q1 than during 2020 ▪ Digital media activity kept Kori searches on Google higher compare
Slide 20: Lysoveta – a new business segment with broad application potential
Lysoveta – a new business segment with broad application potential TAPPING INTO LARGE GLOBAL MARKETS WITH STRONG UNDERLYING DRIVERS PHARMA COLLARBORATION ▪ Aker BioMarine signed first pharmaceutical collaboration for Global markets by segments development of therapies based on LYSOVETA in January 20
Slide 21: AION – Circularity as a Service for recycled plastic market
AION – a circularity solution provider offering Circularity as a Service (CaaS) to the global recycled plastic market Service providers Integrated supply chain management Waste sources E2E ESG transparency reporting and traceability Logistics CaaS Customers (both upstream and downstream) Recovery pl
Slide 22: Rapid expansion to drive revenue and earnings growth
Rapid expansion to drive revenue and earnings growth 2021 2022-2023 2023-2025 2030 Build organization and gain Scale and build supplier Europe and North America commercial traction network scale-up Gain global scale Overall ambition ▪ Prove commercial viability (3-6 ▪ Test and tune scalability of ▪
Slide 23: INVI – addressing the large and growing protein market
INVI – adressing the large and growing protein market A UNIQUE PROTEIN INGREDIENT… …FOR THE GLOBAL PROTEIN MARKET Global retail protein market growth (all figures in $bn, Euromonitor) Forecast 40 36 38 34 34 32 12 30 12 27 12 11 12 12 11 10 EXCEPTIONAL PROTEIN EASY TO USE IN FINAL QUALITY APPLICATIO
Slide 24: New product launches with corresponding margin potential
New product launches with corresponding margin potential Wide ranging innovation competencies… …targeting significant margin uplift potential New business model ™ Existing business Model Fundamental research Existing technical or New technical or knowledge competences knowledge competences Aqua feed
Slide 25: Financials
FINANCIALS ANINVWOI8 YayV iS)
Slide 26: Historically, we have delivered a strong financial trajectory
Historically, we have delivered a strong financial trajectory Historical financials Full year 2020 update Top line evolution Profitability evolution Revenue Adjusted EBITDA and % margin (USDm) +2.3x (USDm) +4.3x 289 27.1% 25.6% 246 78 21.5% 154 14.1% 53 125 39 18 2017 2018 2019 2020 2017 2018 2019 2
Slide 27: Well-diversified, blue-chip customer base with longstanding relationships
Well-diversified, blue-chip customer base with longstanding Historical financials relationships Full year 2020 update Majority of revenue from Diversified customer base and strong relationships long term contracts with key customers Ingredients contract base1 Ingredients customer base2 Brands custom
Slide 28: Tailored capex programme to underpin the growth strategy
We have undertaken a tailored capex programme to Historical financials underpin the growth strategy with significant progress till date Full year 2020 update Historical capex development Planned capex to achieve target EBITDA Capex Onshore growth Offshore growth M&A Maintenance (USDm) Provider take-
Slide 29: Financial development in 2020 versus 2019
Historical financials Financial development in 2020 versus 2019 Full year 2020 update Revenue Adjusted EBITDA Adjusted EBITDA Net interest-bearing margin debt USDm USDm % USDm +17% +47% 27% -41% 289 78 27% 406 246 22% 53 232 2019 2020 2019 2020 2019 2020 2019 2020 29
Slide 30: Ingredients segment performance
Ingredients segment performance Full year First quarter 2021 USDm USDm Revenue Adj. EBITDA and Adj. EBITDA margin Revenue 60 Adj. EBITDA and Adj. EBITDA margin 70% 200 70% 180 198 60% 60% 50 160 177 42 50% 50% 140 40 120 32% 40% 30 40% 100 30 27% 30% 24% 30% 80 64 20 19% 60 48 20% 20% 40 10 8 7 10%
Slide 31: Brands segment performance
Brands segment performance Full year First quarter 2021 USDm USDm Revenue Adj. EBITDA and Adj. EBITDA margin Revenue 60 Adj. EBITDA and Adj. EBITDA margin 50% 40 25% 104 45% 35 50 20% 40% 82 30 35% 40 25 14% 15% 33 30% 20 30 25% 10% 15 23 15 10% 15% 20% 20 15% 10 8 5% 10% 10 5 5 2% 5% 0.5 0 0% - 0%
Slide 32: First quarter 2021 - Highlights
First quarter 2021 - Highlights ▪ Solid operational performance ▪ Good offshore production with alle three vessels performing well and all -time-high February ▪ Antarctic Provider delivered and commenced operations early April ▪ Onshore production in Houston continued to improve efficiency and costs
Slide 33: First quarter 2021 - Revenue and Adjusted EBITDA
First quarter 2021 - Revenue and Adjusted EBITDA REVENUE ADJUSTED EBITDA1 USDm USDm 76 71 72 70 27 21 50 18 13 7 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 ▪ Decline in revenue from Q1 2020 mainly driven by lower Superba sales to South Korea ▪ Limited harvesting
Slide 34: First quarter 2021 - Outlook
First quarter 2021 - Outlook OPERATIONS ▪ Offshore production still expected at 60,000-70,000 MT for the year ▪ All vessels performing operationally and technically as expected ▪ Strong performance at Houston factory continues ▪ Expected full catch up of lost volumes from the winter storm shutdown ▪
Slide 35: Thank You
Thank You ® AKER BIOMARINE