Salmones Camanchaca SA · BCS:SALMOCAM
Salmones Camanchaca SA — Camanchaca — FY2016 Earnings Presentation
25 slides from Salmones Camanchaca SA's earnings presentation, Mar 10, 2017
Slide 1: Camanchaca
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Slide 2: Revenues January – December
Revenues January – December (US$ million) 2015 2016 +11% 488.2 +34% 439.2 352.8 -26% 262.8 145.8 107.4 -8% 30.6 28.1 Fishing Salmon Other Seafood TOTAL • Strongest El Niño phenomenon in 65 years lower catches, harmful algae bloom (HAB) and lower mussel yields Drop in quantity sold. • Salmon pric
Slide 3: Revenues - Fishing
Revenues - Fishing 2015 2016 Volume (Ton) Average price (US$/Ton) Revenues (US$ million) YTD Q4 2015 38,620 1,780 69 YTD Q4 2016 29,059 1,600 47 -32% YTD Q4 2015 5,729 1,913 11 1,785 8 -25% YTD Q4 2016 4,601 60% drop in northern catches, 10% in the south-central zone; prices fall due to normalizatio
Slide 4: Revenues - Salmon
Revenues - Salmon Atlantic Salmon 2015 2016 Volume (Ton WFE) Average price (US$/Kg WFE) Revenues (US$ million) YTD Q4 2015 42,195 4.4 187 YTD Q4 2016 38,494 5.6 217 -9% +27% +16% • +US$ 65 mill. due to higher third party sales through USA and Japan offices • +US$ 3.3 mill. due to profits from the tr
Slide 5: Revenues – Other Seafood
Revenues – Other Seafood Mussels 2015 2016 Volume (Ton) Average price (US$/Kg) Revenues (US$ million) YTD Q4 2015 8,877 2.7 24 YTD Q4 2016 7,723 2.6 20 -13% -5% -17% Raw material: 26 thousand ton,s but with a high % bought to 3rd parties Production falls 8% to 8,600 tons. Chiloé crisis 1 month of
Slide 6: Results
Results 2015 2016 Profit/Loss 30.8 13.6 1.4 -3.6 -0.9 -6.8 -9.0 -16.3 Fishing Salmon Other Seafood TOTAL EBITDA (before Fair Value) 38.8 32.8 21.6 15.7 6.7 0.9 -0.8 -6.9 Fishing Salmon Other Seafood TOTAL 6
Slide 7: 2013-2016: Last 4 mobile quarters development
2013-2016: Last 4 mobile quarters development 183 178 170 184 179 157 151 157 163 161 169 146 147 141 33.1 29.0 126 26.6 30.0 27.3 107 FISHING 21.0 20.4 22.6 18.8 15.7 18.9 15.6 11.2 10.3 6.7 -6.9 328 353 295 288 299 278 279 275 SALMON 252 260 263 263 269 237 36.1 38.2 31.5 38.8 Revenues 220 21.4 27
Slide 8: Last 4 mobile quarters development
Last 4 mobile quarters development EBITDA Revenues X% EBITDA/Revenues 496 489 488 483 485 483 470 459 462 453 448 13.3% 446 439 12.4% 12.0% 439 437 11.0% 66.1 419 10.2% 60.0 58.7 10.0% 53.0 47.1 6.7% 5.6% 45.1 4.9% 3.0% 32.8 2.7% 25.5 2.3% 1.7% 21.6 1.8% 1.1% 0.4% 14.5 11.9 10.1 7.2 8.7 4.9 2.0 Q1 Q
Slide 9: Northern Pelagic Fishing
Northern Pelagic Fishing Anchovy: Lower catches due to El Niño phenomenon, not only in Chile, but also in Peru. Biomass didn’t reached the right size or was dispersed or deepened. Thousands of tons 27 87 20 18 18 22 11 34 1 5 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 Q1 Q2 Q3 Q4 Year Recover
Slide 10: El Niño phenomenon
El Niño phenomenon Northern Fishing Division Catches (own and third parties) (Thousands of tons) 400 358 333 300 244 200 200 189 105 150 100 87 35 34 0 Year with severe El Niño phenomenon 10
Slide 11: South-Central Pelagic Fishing
South-Central Pelagic Fishing J. Macke.: Favorable fishing conditions (greater stability in 2016 and 90% catched in H1 2016 vs 83% in H1 2015). Lt Fuel per ton of catch falls 41%. Sardine: Lower catches vs 2015 due to fish absence in the 8th region (third parties). +27% in own catches. Jack Mackerel
Slide 12: Fishmeal Price
Fishmeal Price Prices reached a record high in Q1-15, but with few volumes. Adjustments as Peru catch its quotas (bad H1 and better H2: 98% of the 2 mill. ton caught in 2nd fishing season US$ / ton (Camanchaca) Nov to Jan: Peru’s Fishing Quota (North-Centre Region): 2.0 M Ton (98% catched) May to Ju
Slide 13: Camanchaca Diesel Price (US$/lt)
Camanchaca Diesel Price (US$/lt) 2015 2016 -44% -31% -5% -28% 0.54 0.54 -20% 0.49 0.50 0.43 0.41 0.37 0.39 0.36 0.30 0.41 0.36 Q1 Q2 Q3 Q4 Year 2016: At constant volume, fuel savings of US$ 2.3 million. Due to the low Fishing activity, greater savings were not achieved. 13
Slide 14: Stocks
Stocks (valued at cost) Historically Low Inventories with the exception of canned fish December 31, 2016 December 31, 2015 Months of VOLUME ThUS$ VOLUME ThUS$ Production SALMON Atlantic Salmon (Tons) 2,595 1.2 23,763 7,458 42,198 Salmon Total 23,763 42,198 FISHING Fishmeal (Tons) 1,235 0.3 2,098 5,7
Slide 15: Atlantic Salmon Sanitary Conditions in Camanchaca
Atlantic Salmon Sanitary Conditions in Camanchaca (closed cycle) 2016: Q1 affected by harmful algae bloom (HAB) event. Favorable sanitary conditions in H2 Mortality 2015 2016 64.3% 36.8% 19.2% 14.2% 12.9% 10.9% 8.7% 5.4% 9.0% 5.5% Q1 Q2 Q3 Q4 Year Economic Feed Conversion Ratio 2.87 1.35 1.58 1.36 1
Slide 16: Atlantic Salmon Costs
Atlantic Salmon Costs Q4-15 and H1-16 affected by SRS and low oxygen conditions in the 10th region. Better Q4-16 vs Q4-14 and Q4-15. Atlantic Salmon - Liveweight ex-cage cost (US$ / kg) 3.66 3.75 3.07 2.95 2.92 3.02 3.08 3.09 Others 2.79 Medicine Labor Smolt OPEX Feed Q4 2014 Q1 2015 Q2 2015 Q3 2015
Slide 17: Atlantic Salmon Price
Atlantic Salmon Price Price upward due to decreasing global supply (-7%). Algae Bloom in Chile and sealice in Norway. Harvest (Thousands of Tons) Price (US$ / Kg WFE) 6.8 2015 2016 6.2 5.8 5.6 4.8 4.5 4.4 Δ+67% 4.4 4.2 Δ+28% Δ+41% Δ+27% 4.1 Δ-12% 15.6 43 11.6 33 11.2 9.1 9.0 7.9 6.7 4.9 Q1 Q2 Q3 Q4
Slide 18: Atlantic Salmon Price: Long-term trend
Atlantic Salmon Price: Long-term trend Urner Barry Equivalent Trim C 2-3 (US$/Lb) Large devaluation in major markets and non-tariff restrictions Algae bloom 6.5 Overshooting recovery 6.0 post ISA ISA Virus 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 jul-14 jan-05 jan-04 jul-04 jul-05 jan-06 jul-06 jan-07 jul-07
Slide 19: Camanchaca's Atlantic Salmon RMP
Camanchaca’s Atlantic Salmon RMP Camanchaca vs Market (Salmonex, January 2014 = Base 100) Urner Barry Salmonex Camanchaca 140 116 120 100 80 63 60 40 20 0 Jan-14 Apr-14 Jul-14 Jan-15 Apr-15 Jul-15 Jan-16 Apr-16 Jul-16 Jan-17 Oct-14 Oct-15 Oct-16 From June 2016: Camanchaca’s prices again exceed UBarr
Slide 20: Expectation of price increase 2017 vs 2016
Expectation of price increase 2017 vs 2016 Annual growth in world supply of Atlantic salmon 22% 12% 10% 9% 7% 2% 4% 2.5% 0% -1% -1% -7% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E 2017E Annual Price Change y = -2.4404x + 0.2092 R² = 0.67 2016 50% 40% 30% 20% 2017 E 10% 0% -10% -5% -10% 0
Slide 21: Chilean Salmon Price Expectation for 2017
Chilean Salmon Price Expectation for 2017 Urner Barry Trim C 2-3, spot market US$ / lb 6.00 5.75 5.50 5.25 5.00 ene-17 feb-17 Mar-17 Jan-17 Feb-17 mar-17 abr-17 Apr-17 may-17 May-17 jun-17 jul-17 Aug-17 Jun-17 Jul-17 ago-17 Sep-17 sep-17 Oct-17 oct-17 Nov-17 nov-17 Dec-17 dic-17 Fishpool Index Forwa
Slide 22: Development of Atlantic Salmon Margins
Development of Atlantic Salmon Margins Return to positive margins in Q2 2016 increased in H2 2016 10th region sites 11th region sites Leptepu Raw Material Cost and RMP (Raw Material Return) Cahuelmó Base 100 = RMP January 2013 Porcelana Benjamín Loncochalgua Licha Puelche Ahoní 210 Lamalec Johnson 2
Slide 23: Development of Atlantic Salmon Margins
Development of Atlantic Salmon Margins EBIT (US$/Kg WFE) before Fair Value in the Salmon business 3.0 2.60 2.5 2.0 1.5 1.0 0.76 0.5 0.0 -0.53 -0.5 -1.0 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 (0.10) 0.72 Atlantic Salmon Business includes other Revenues and Costs due t
Slide 24: Productive Capacities according to New Regulation
Productive Capacities according to New Regulation Camanchaca has a harvest capacity of 50 thousand tons WFE, 100% in own concessions Site 2015 2016 E* 2017 E 2018 E 2019 E 2020 E Ahoni 4,427 4,506 4,535 Pilpilehue 5,048 2,466 6,614 495 9,145 Islotes 6,080 9,864 5,841 3,399 6,767 Edwards 3,962 1,160
Slide 25: Camanchaca
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