Aker Biomarine Asa · OSL:AKBM
Aker Biomarine Asa — Q4 2020 Earnings Presentation
32 slides from Aker Biomarine Asa's earnings presentation, Feb 16, 2021
Slide 1: Q4 2020 Presentation
Q4 Q4PRESENTATION PRESENTATION 16 16FEBRUARY FEBRUARY2021 2021 Q3 2020 PRESENTATION Matts Johansen, CEO Katrine Klaveness, CFO 30 OCTOBER 2020 1
Slide 2: Important Notice
Important Notice This presentation has been prepared by Aker BioMarine AS (the "Company"). The presentation does not constitute or form part of, and should not be construed as, an offer, solicitat ion or invitation to subscribe for, underwrite or otherwise acquire, any securities of the Company or a
Slide 3: Fourth quarter 2020 highlights
Fourth quarter 2020 highlights ▪ Revenues of USD 75.5 million (USD 71.7 million in the corresponding period last year) ▪ Adjusted EBITDA of USD 21.1 million (USD 8.2 million), representing 28% (11%) Adjusted EBITDA margin ▪ Full year revenues of USD 288.6 million (USD 246.2 million), representing gr
Slide 4: Revenue and Adjusted EBITDA
Revenue and Adjusted EBITDA REVENUE DEVELOPMENT ADJUSTED EBITDA DEVELOPMENT USDm USDm +17% 289 78 47% 246 53 +5% 157% 72 76 21 8 Q4 2019 Q4 2020 2019 2020 Q4 2019 Q4 2020 2019 2020 ▪ Quarter on quarter growth of 5% driven by Ingredients (8.8% y/y), offset by Brands (-12% ▪ Adjusted EBITDA in the qua
Slide 5: Ingredients segment
Ingredients segment Operations Superba QRILL ▪ Early start of season with Antarctic Endurance ▪ Superba sales dropped 14.8% y/y in the quarter, ▪ Qrill Aqua sales increased 39.6% y/y in the and Antarctic Sea at fishing ground on Nov 21 st, mainly as a result of record high South Korea quarter driven
Slide 6: Brands segment
Brands segment Lang Epion Sales development1 Sales 2019 35% 65% Ingredients Brands ▪ Record sales year despite Q4 being lower than Q4 2019, ▪ Aker BioMarine’s consumer brand, Kori, that was launched in mainly due large campaigns in Q4 2019 US during the summer of 2020, continued to grow traction in
Slide 7: Kori sales development since launch in May 2020
2-May 9-May 16-May 23-May 30-May 6-Jun 13-Jun 20-Jun 27-Jun 4-Jul 11-Jul 18-Jul 25-Jul 1-Aug UNITS SOLD – ROLLING 4 WEEK FIGURES 8-Aug 15-Aug 22-Aug 29-Aug 5-Sep 12-Sep 19-Sep Total Unit Sales 26-Sep 3-Oct 10-Oct 17-Oct 24-Oct 31-Oct Marketing 7-Nov 14-Nov 21-Nov 28-Nov 5-Dec 12-Dec 19-Dec 26-Dec 2-
Slide 8: Offshore production development and impact on EBITDA
Offshore production development and impact on EBITDA Historical predictable and growing offshore …with significant and unexpected shortfall …will have a significant positive impact on production… in 2020… EBITDA when producing at expected levels Offshore production, kMT Offshore production, kMT EBIT
Slide 9: Antarctic Provider and key operational benefits
Antarctic Provider and key operational benefits Offload capacity (MT/year) ▪ Delivered February 5 th, expected to reach fishing grounds during March/April +2.5X ▪ Offers several improvements and efficiency gains ✓ Offloading capacity more than doubles Current1) Provider ✓ Fewer sailings between fish
Slide 10: 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 SIGNED AGREEMENTS WITH TWO UNIVERSITIES & PHARMA DEAL Global markets by segments First pharma partnership signed ▪ Develop pharma therapies for brain & eye health ▪ Ake
Slide 11: AION – a circularity solution provider for plastic waste
AION – a circularity solution provider for plastic waste, to be spun out in 21/22 Service providers Market size, USD billion in 2020 Logistics Product and Supply chain solution design management 9.5 INITIAL 5.7 FOCUS Material recovery processor 25.4 Foundries/ product manufacturer Waste handling and
Slide 12: 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 13: 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 14: Aker BioMarine events during the quarter and YTD
Aker BioMarine events during the quarter and YTD SCIENCE AND NEW PUBLICATIONS Delivery of new support vessel, Antarctic Provider Feb OTHER KEY EVENTS Aker BioMarine launched INVITM, a novel protein for human consumption Jan Signed first pharma agreement for development of therapies based on LYSOVETA
Slide 15: Finance
FINANCE ANINVWOI8 YayV iS)
Slide 16: Financial development in 2020 versus 2019
Financial development in 2020 versus 2019 REVENUE ADJUSTED EBITDA ADJUSTED EBITDA MARGIN NET INTEREST-BEARING DEBT USDm USDm % USDm +17% +47% 27% -41% 289 78 27% 406 246 22% 53 232 2019 2020 2019 2020 2019 2020 2019 2020 16
Slide 17: Quarterly development of key financials over the last year
Quarterly development of key financials over the last year REVENUE AND GROSS MARGIN DEVELOPMENT ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN DEVELOPMENT USDm USDm 76 72 71 72 70 27 21 18 49.2% 13 38.2% 32.8% 33.2% 35.8% 31.4% 27.9% 8 24.3% 17.9% 11.4% Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q4 2019 Q1
Slide 18: Ingredients segment performance
Ingredients segment performance REVENUE DEVELOPMENT ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN DEVELOPMENT USDm USDm 34% 64 12% 198 177 48 9% 79% 56 17 51 32.2% 26.9% 10 31.0% 18.9% Q4 2019 Q4 2020 2019 2020 Q4 2019 Q4 2020 2019 2020 ▪ Strong Qrill Aqua revenue growth, volumes significantly up in Q4
Slide 19: Production volumes on a rolling twelve-month basis
Production volumes on a rolling twelve-month basis ONSHORE KRILL OIL EXTRACTION (LTM) ▪ Houston is producing close to existing maximum MT capacity ▪ Target to increase capacity to about 2,000 MT by end of 2022 by: ▪ Reducing bottle necks ▪ Process improvements 80% ▪ New technologies ▪ Use of big dat
Slide 20: Brands segment performance
Brands segment performance REVENUE DEVELOPMENT ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN DEVELOPMENT USDm USDm 27% 104 14.5 84% 82 7.9 -29% 28 -9% 20 2.7 2.4 13.7% 9.7% 9.0% 12.0% Q4 2019 Q4 2020 2019 2020 Q4 2019 Q4 2020 2019 2020 Revenue contribution from 1 March 2019 EBITDA contribution from 1 M
Slide 21: Profit and loss in Q4 2020 and full year 2020
Profit and loss in Q4 2020 and full year 2020 Q4 2019 Q4 2020 2019 2020 USD thousands Net sales: (Unaudited) (Unaudited) (Audited) (Unaudited) • Net sales up in Q4-20 compared to Q4-19 due to higher Qrill Aqua sales partly offset by lower Superba sales in the Ingredients segment. Sales in Brands seg
Slide 22: Balance sheet at end of Q4 2020
Balance sheet at end of Q4 2020 2019 2020 USD thousands (Audited) (Unaudited) Inventories ASSETS ▪ New SKUs in Ingredients segment, 3 rd party manufacturing volumes, by/ Cash and cash equivalents 13,610 10 678 joint products Accounts receivable and prepaid expenses 74,264 97 885 ▪ Ingredient invento
Slide 23: Cash flow in Q4 2020 and full year 2020
Cash flow in Q4 2020 and full year 2020 Q4 2019 Q4 2020 2019 2020 USD thousands Cash flow from operations (Unaudited) (Unaudited) (Audited) (Unaudited) ▪ Change in working capital primarily include build-up of trade and other receivables amounting to USD 16.5m (following a high invoicing in Profit (
Slide 24: Outlook
OUTLOOK ANINVWOId 4axV a
Slide 25: Outlook
Outlook OPERATIONS ▪ Natural variation in catch volumes throughout the season ▪ Seasonal variation smoothens out throughout the year ▪ Track record of predictable and growing harvesting ▪ For 2021, the company expects a production range of 60,000 – 70,000 MT ▪ Realizing scale effects in supply chain
Slide 26: Operating leverage and unit cost development
Operating leverage and unit cost development OFFSHORE VOLUME & UNIT COST ONSHORE VOLUME & UNIT COST USD/MT* USD/kg* MT MT MT 2015 2016 2017 2018 2019 2020 2021E 2015 2016 2017 2018 2019 2020 2021E 26 * Unit costs excludes asset depreciation costs
Slide 27: Sustainable growth: 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 28: Appendix
i] AKER BIOMARINE APPENDIX
Slide 29: Sustainability is at the heart of the way we do business
Sustainability is at the heart of the way we do business Dedicated to improving Pioneering sustainable Ingredients for more Doing more and better human health fisheries sustainable aquaculture with less Helping prevent lifestyle diseases Leveraging technology to reduce by-catch Reducing pressure on
Slide 30: Revenue development per product
Revenue development per product REVENUE PER PRODUCT (EXCLUDING ELIMINATIONS) USDm 302.5 14.8 272.8 11.6 104.4 95.9 82.9 69.4 79.0 75.3 2.8 3.6 28.2 20.4 95.9 100.4 19.3 27.0 28.7 24.4 Q4 2019 Q4 2020 2019 2020 Krill oil Qrill Aqua Brands 1 Other 2 1) Brands (Lang) included from March 2019 in reporte
Slide 31: EBITDA adjustments
EBITDA adjustments EBITDA ADJUSTEMENTS EBITDA ADJUSTEMENTS Q4 2020 EBITDA adjustments 2020 EBITDA adjustments USDm 21.1 USDm 78.1 3.0 3.0 17.0 56.6 1.1 2.5 6.7 11.0 0.1 0.5 EBITDA Q4 Gains/ losses Transactio Launch Other Adjusted EBITDA EBITDA Q4 Gains/ losses Transactio Launch Other Adjusted EBITDA
Slide 32: P&L reconciliation
P&L reconciliation USDm Q4 2019 Q4 2020 YTD Q4 2019 YTD Q4 2020 Ingredients 51.1 55.7 177.2 191.4 Brands 28.2 20.1 82.2 104.4 Eliminations (7.4) (0.3) (13.4) (14.2) Reported revenues 71.9 75.5 246.2 288.6 EBITDA reconciliation USDm Q4 2019 Q4 2020 YTD Q4 2019 YTD Q4 2020 Ingredients 7.0 13.8 40.3 59