Nordic Aqua Partners As · OSL:NOAP
Nordic Aqua Partners As — Q4 2023 Earnings Presentation
30 slides from Nordic Aqua Partners As's earnings presentation, February 2024
Slide 1: Nordic Aqua Partners Q4 2023
Nordic Aqua Partners Q4 2023 February 2024
Slide 2: Disclaimer
DISCLAIMER This presentation contains statements regarding future results, which are subject to risks and uncertainties. Consequently, actual results may differ significantly from the results indicated or implied in these statements. No representation or warranty (expressed or implied) is made as to
Slide 3: Agenda
Agenda Highlights and New Recruitments Biology Project Market Financials Outlook & Summary 3
Slide 4: Highlights
Highlights • Test harvest mid-February of 5.0 kg LW fish with supreme quality • Good fish health and welfare, <1.6% mortality, and no signs of maturation • Good operational and biological performance for all batches • Q4 biomass production of 469 tonnes. Total biomass of 1,079 tonnes by quarter end.
Slide 5: New Recruitments
New Recruitments Andreas Thorud Tom Johan Austrheim Managing Director, Nordic Aqua China CFO, Nordic Aqua Partners • Extensive experience within Chinese • Extensive experience within financial business life management of listed companies • Coming from a position as Seafood Council • Coming from a po
Slide 6: Agenda
Agenda Highlights and New Recruitments Biology Project Market Financials Outlook & Summary 6
Slide 7: Salmon under production at Gaotang
Salmon under production at Gaotang Hatchery RAS 1-2-3 RAS 4-5-6-7-8 7
Slide 8: Biological performance for Batch 1, 2 and 3 as expected
Biological performance for Batch 1, 2 and 3 as expected Batch 1 Batch 2 Batch 3 Summary Batch 1, 2 and 3 1.200 2.500 4.500 4.000 2.000 1.000 • The growth in the two first 3.500 800 batches was affected by 3.000 construction and maturation Fish size (g) Fish size (g) Fish size (g) 1.500 2.500 600 2.0
Slide 9: Batch 4-5 growth above expectations
Batch 4-5 growth above expectations Batch 4 Batch 5 Summary Batch 4 and 5 450 160 400 140 • Growth in Batch 4 is two 350 120 weeks ahead of budget 300 100 Fish size (g) Fish size (g) 250 200 80 • Batch 5 growth is five weeks 150 60 ahead of budget 100 40 50 20 • Accumulated mortality from - des.22 m
Slide 10: Agenda
Agenda Highlights and New Recruitments Biology Project Market Financials Outlook & Summary 10
Slide 11: Stage 1 status – Farming Technology completed
Stage 1 status – Farming Technology completed Greenery to be completed by April 2024 11
Slide 12: Processing status
Processing status • Processing Plant to be completed by March 2024 • Initial capacity 8,000 tonnes • With minor adjustments capacity can be increased to 20,000 tonnes 12
Slide 13: Stage 2 status
Stage 2 status • Construction initiated in Q3 2023 in small building • Construction of large building started in February 2024 • Start feeding will be completed in April 2024 • First inlay of eggs in Q3 2024 13
Slide 14: Expanding to 8,000 tonnes and planning for 20,000 tonnes
Expanding to 8,000 tonnes and planning for 20,000 tonnes • The fish farming part of Stage 1 was on time and budget • For Stage 2 RAS delivery is based on a target price arrangement • The lease agreements with local government are entered at fixed terms and contribute to reduce the risk of potential
Slide 15: Timeline of Gaotang buildout
Timeline of Gaotang buildout 2021 2022 2023 2024 2025 2026 2027 2028 Q3 Construction start Stage 1 Q1 Production start 4,000 tonnes Q1 First harvest Q3 Construction start Stage 1+2 Q3 Production start 8,000 tonnes Q3 First harvest Q2 Construction start* Stage 1+2+3 Production start (Up to smolt, use
Slide 16: Agenda
Agenda Highlights and New Rercruitment Biology Project Market Financials Outlook & Summary 16
Slide 17: Nordic Aqua preparing for commercial harvest
Nordic Aqua preparing for commercial harvest • Test harvest in February 2024 ‒ Average weight 5.0 kg LW ‒ Excellent in all aspects of quality parameters including colour, fat content, taste and shape • First commercial harvest expected in March 2024 and will gradually increase to ~ 350 tonnes per mo
Slide 18: Brand Logo
Brand Logo • Introducing new brand logo and branding strategy to the Chinese market • Overall, the English brand name ‘Nordic PureAtlantic’ conveys a compelling message of premium quality, purity, and authenticity. It aligns with its Chinese counterpart, 诺谛臻 鲑 (nuò dì zhēn guī), which means ‘high-qu
Slide 19: Brand Logo examples
Brand Logo examples 19
Slide 20: Import of Salmon
Import of Salmon Chinese import of Atlantic fresh and frozen salmon from all countries of origin (1,000 tonnes) 100.000 90.000 80.000 70.000 60.000 50.000 40.000 30.000 20.000 10.000 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 Updated on numbers from 31.12.2023 Chinese Custom Data 20
Slide 21: Average Price of Salmon
Average Price of Salmon Average price on Chinese import of fresh or chilled Atlantic Salmon from all countries of origin (EUR/kg, HOG) 20,00 19,00 18,00 17,00 16,00 15,00 14,00 13,00 12,00 11,00 10,00 9,00 8,00 7,00 6,00 5,00 Jan Mar May July Nov Jan Mar May July Nov Jan Mar May July Nov Jan Mar May
Slide 22: Agenda
Agenda Highlights and New Recruitments Biology Project Market Financials Outlook & Summary
Slide 23: CAPEX and Production cost breakdown
CAPEX and Production cost breakdown Cost Breakdown 2024 Stage 1+2 Stage 1+2+3 (flexibility) Annual volume tonnes (HOG) 3,400 8,000 20,000 RAS Capex/kg (HOG) 13,30 EUR* 13,80 EUR 13,00 EUR Lease financed capex/kg (HOG) 4,80 EUR* 4,60 EUR 3,80 EUR Farming cost/kg (HOG) 5,40 EUR 5,40 EUR 5,00 EUR Cost
Slide 24: Financial highlights
Financial highlights • Financial performance in line with plans and budget • Biomass 1,079 tonnes on December 31st with a value of EUR 9.2 million incl. fair value adjustment • Estimated total CAPEX for completion ‒ Farming technology stage 1 EUR 53.0 million ‒ Leasehold improvements stage 1 EUR 3.5
Slide 25: Profit & Loss
Profit & Loss (figures in EUR 1000) Q4 2023 Q4 2022 YTD 2023 YTD 2022 • The increase in operating expenses from Q4 Purchase of goods -1,259 -102 -2,492 -342 2022 to Q4 2023 is driven by increased Change in inventory and biological assets (at cost) 3,514 206 6,426 726 production Other operating incom
Slide 26: Financial Position
Financial Position (figures in EUR 1000) 31/12/2023 31/12/22 • Total assets of EUR 102 million, increase Assets mainly from investments in PPE and Assets under construction 31,161 35,907 biomass and from changes in working Property, plant & equipment 21,906 707 Right of use assets 9,287 0 capital in
Slide 27: Cash Flow
Cash Flow (figures in EUR 1000) Q4 2023 Q4 2022 YTD 2023 YTD 2022 • Liquidity according to plan and budget Cash flow from operations Operating profit/loss -1,829 -1,050 -4,679 -3,769 • Net cash flow in Q4 2023 EUR 1.9 million Net cash generated from operations -4,912 -3,517 -17,364 -3,083 • Cash EUR
Slide 28: Agenda
Agenda Highlights and New Recruitments Biology Project Market Financials Outlook & Summary 28
Slide 29: Summary and Outlook
Summary and Outlook • Stage 1 is completed, and the fish farming facility is on time and in line with budget • Good biological performance with strong growth and excellent fish health • Test harvest mid-February of 5.0 kg LW fish with supreme quality. First commercial harvest expected in March 2024
Slide 30: Investor Contacts
Investor Contacts Hjalti Hvítklett CFO, NOAP tel:+298 221222 hjalti@nordicaquapartners.com Ragnar Joensen CEO, NOAP tel:+298 599112 ragnar@nordicaquapartners.com