Salmones Camanchaca SA · BCS:SALMOCAM
Salmones Camanchaca SA — Camanchaca — Q2 2017 Earnings Presentation
22 slides from Salmones Camanchaca SA's earnings presentation, Sep 1, 2017
Slide 1: September 1, 2017
September 1, 2017
Slide 2: Good Northern Pelagic Catches
Good Northern Pelagic Catches North: Normalization of temperatures at sea; abundant biomass near Iquique; low costs. Thousands of tons 140- 49 52 145 34 18 11 34 1 8 5 2016 2017 2016 2017 2016 2017 E 2016 2017 E 2016 2017 E Q1 Q2 Q3 Q4 Year Northern catches include own and third parties Industrial a
Slide 3: South-Central Pelagic Catches
South-Central Pelagic Catches J. Mackerel: Normal fishing conditions vs very favorable conditions in H1 2016. Sardine: Normalization in 8th region. Third parties catches doubled. Jack Mackerel Thousands of tons Sardine (own) 105-120 106 Sardine (third parties) 12 56 23 50 2 22 28 11 8 21 31 16 2 4 8
Slide 4: Fishmeal Price
Fishmeal Price Prices down due to higher quotas and catches in Peru. US$ / ton (Camanchaca) Peru’s Fishing Quota (North-Centre Region): May to Jul: May to Jul: Nov to Jan: May to Jul: Nov to Jan: May to Jul: 2.5 M Ton Nov to Jan: 2.6 M Ton 1.1 M Ton 1.8 M Ton 2.0 M Ton 2.8 M Ton (68% catched) No quo
Slide 5: Camanchaca Diesel Price (US$/lt)
Camanchaca Diesel Price (US$/lt) Diesel Oil Price (US$ / lt) 0.84 0.84 0.82 0.70 0.54 0.54 0.49 0.43 0.44 0.42 0.39 0.41 0.37 0.30 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 H1 2017: • At constant volume, increased fuel costs of US
Slide 6: Stocks
Stocks (valued at cost) Fishmeal and fish oil inventories decreased (at US$ 1,075 / ton and US$ 830 / ton). Increase in Mussels (at US$ 1.7 / kg) compared to Jun 30, 2016 June 30, 2017 December 31, 2016 June 30, 2016 December 31, 2015 Months of VOLUME ThUS$ VOLUME ThUS$ VOLUME ThUS$ VOLUME ThUS$ Pro
Slide 7: Atlantic Salmon Price
Atlantic Salmon Price Stable prices for an estimated increase ~4% of world supply in 2017 but with differences in semesters. Lower harvests in Q1-17 due to Bloom 2016 and lower stockings 2015. Harvest (Thousands of Tons WFE) Price (US$ / Kg WFE) 2016 2017 6.8 Δ+21% 7.5 5.6 7.1 Δ+29% 6.8 6.2 Δ+69% 5.
Slide 8: Atlantic Salmon Price: Long-term trend
Atlantic Salmon Price: Long-term trend Urner Barry Equivalent Trim C 2-3 (US$/Lb) Large devaluation in major markets and non-tariff restrictions Algae bloom 6.5 Overshooting recovery 6.0 ISA Virus post ISA 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 jan-04 jul-04 jan-05 jul-05 jan-06 jul-06 jan-07 jul-07 jan-08
Slide 9: Chilean Salmon Price Expectation until Jun-18
Chilean Salmon Price Expectation until Jun-18 Urner Barry Trim C 2-3, mercado spot USD/Lb 6.50 6.00 5.50 5.00 4.50 4.00 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Fishpool Index Forwards Based Model Adjusted By: • Seasonal Historical Demand in the USA • US vs European salmon offe
Slide 10: Atlantic Salmon: Return of the raw material (relative performance)
Atlantic Salmon: Return of the raw material (relative performance) Camanchaca vs Market (Salmonex, January 2015 = Base 100) Urner Barry Salmonex Camanchaca 200 180 160 140 120 100 80 60 40 20 0 Jan-15 Apr-15 Jul-15 Jan-16 Apr-16 Jul-16 Jan-17 Apr-17 Jul-17 Oct-15 Oct-16 Lag in months with strong spo
Slide 11: Salar: History and Projection of Harvests in Camanchaca
Salar: History and Projection of Harvests in Camanchaca Harvests (Thousands of Tons WFE) 13 12 9 8 10 13 11 100 90 5.5 5.3 5.3 80 5.2 5.1 5.1 70 X N° harvested sites 4.7 60 Q4 54 Q3 50 48 43 45 Q2 39 40 Q1 33 34 Salar harvest avg wt (Kg WFE) 30 20 10 0 3.0 2014 2015 2016 2017 E 2018 E 2019 E 2020 E
Slide 12: New Health Regulation
New Health Regulation Changes to regulation put a brake on growth and severely punish poor health performance Main elements of the new regulation Implications • Opt for PRS (less Q) or Density (raises the cost) • The set of elements of the regulation, • It maintains the territorial ordering based on
Slide 13: Salar Stocking in Chilean Industry
Salar Stocking in Chilean Industry Salar Stocking January to July (mill. of smolts), 10th, 11th and 12th región 79 +13% 76 +15% 74 72 70 69 2012 2013 2014 2015 2016 2017 Source: Undersecretariat for Fisheries and Aquaculture 13
Slide 14: Salar Stocking and Stocking Plans: 10th and 11th regions
Salar Stocking and Stocking Plans: 10th and 11th regions Salar Stocking previous cycle vs post new regulation cycle (mill. of smolt) Previous Cycle Current Cycle +7% (same neighborhoods) (considers new regulation) 25.0 125 116 20.0 15.0 Considers neighborhoods opened between Sep-16 and Aug-17 10.0 5
Slide 15: Salar Health Conditions in Camanchaca
Salar Health Conditions in Camanchaca (closed cycle) Q1-16 affected by harmful algae bloom (HAB) event. Favorable sanitary conditions starting in Q2-16 Mortality 2015 2016 2017 64.3% 36.8% 19.2% 14.2% 12.9% 10.9% 8.7% 5.5% 5.4% 5.4% 9.0% 4.4% 5.5% 8.0% 6.8% E E E Q1 Q2 Q3 Q4 Year Economic Feed Conve
Slide 16: Atlantic Salmon Costs
Atlantic Salmon Costs Q4-15 and H1-16 affected by SRS and low oxygen conditions in the 10th region. Q2-17 affected by harvests coming from third-party-hatchery smolts. Atlantic Salmon - Liveweight ex-cage cost (US$ / kg) Feed OPEX Smolt Labor Medicine Others 3.66 3.75 3.34 3.02 3.08 3.09 3.13 2.95 2
Slide 17: Development of Atlantic Salmon Margins
Development of Atlantic Salmon Margins Back to positive margins in Q2-16 increased in H2-16 Lower harvests in Q1-17 (-47%) with increase in unit cost. Raw Material Cost and RMP (Raw Material Return) 10th region sites 11th region sites Base 100 = RMP January 2014 130 Leptepu Puelche Leptepu Puelche 1
Slide 18: Development of Atlantic Salmon Margins
Development of Atlantic Salmon Margins EBIT (US$/Kg WFE) before Fair Value in the Salmon business Atlantic Salmon Business EBIT without trout joint account 3.0 2.5 2.0 1.36 1.5 1.0 1.07 0.5 0.31 0.14 -0.07 0.0 0.05 -0.5 -1.0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2
Slide 19: Results January – June
Results January – June (US$ million) 2016 2017 Profit/Loss 7.1 6.9 4.4 1.4 0.4 -0.5 -0.5 -2.6 Fishing Salmon Other Seafood TOTAL EBITDA (before Fair Value) 35.5 27.8 6.1 7.3 4.3 0.3 0.4 -2.1 Fishing Salmon Other Seafood TOTAL 19
Slide 20: Last mobile quarters development
Last 4 mobile quarters development EBITDA Revenues X% EBITDA/Revenues 496 489 488 487 483 485 483 479 470 462 13.3% 453 13.4% 12.4% 12.0% 446 439 11.4% 11.0% 66.1 64.0 60.0 10.2% 58.7 10.0% 53.0 55.4 47.1 6.7% 45.1 4.9% 3.0% 32.8 2.3% 21.6 1.8% 14.5 10.1 8.7 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q
Slide 21: Last mobile quarters development
Last 4 mobile quarters development 157 163 184 179 161 169 146 147 141 33.1 126 121 22.6 29.0 27.3 107 105 FISHING 20.4 18.8 15.7 18.9 15.6 6.7 -6.9 -9.7 -5.7 Total 353 352 330 Revenues 328 295 288 299 279 275 263 263 269 Own 260 247 233 242 Revenues SALMON 222 223 63.6 68.7 EBITDA 36.1 38.2 31.5 27
Slide 22: Camanchaca
“sf Camanchaca