Atlantic Sapphire Asa · OSL:ASA
Atlantic Sapphire Asa — H1 2024 Earnings Presentation
23 slides from Atlantic Sapphire Asa's earnings presentation, Aug 20, 2024
Slide 1: H1 2024 Operational Update
H1 2024 Operational Update August 20, 2024
Slide 2: Important Information and Disclaimer (1/2)
IMPORTANT INFORMATION AND DISCLAIMER (1/2) IMPORTANT INFORMATION THIS DOCUMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, ITS TERRITORIES, DEPENDENCIES OR POSSESSIONS, INCLUDING ANY STATE OF THE UNITE
Slide 3: Important Information and Disclaimer (2/2)
IMPORTANT INFORMATION AND DISCLAIMER (2/2) The distribution of this Company Presentation by the Company in certain jurisdictions is restricted by law. Accordingly, this Company Presentation may not be distributed or published in any jurisdiction except under circumstances that will result in complia
Slide 4: Operational update
01 Operational update ATLANTIC SAPPHIRE.
Slide 5: Summary of company highlights
Summary of company highlights 01 02 03 04 Positioned to be a key Production stabilized, to Economies of scale to be New management team salmon producer in the be further optimized and unlocked with added with strong focus on world’s largest market scaled volume building value • All permits and licen
Slide 6: Company business plan
Company business plan Timeline for improving phase 1 and development of phase 2 Sep 24 Oct 24 Nov 24 Dec 24 Jan 25 Feb 25 Mar 25 Apr 25 May 25 Jun 25 Jul 25 Aug 25 Sep 25 Oct 25 Nov 25 Stage 1: Proof of concept Stage 2: Resiliency and Efficiency Stage 3: Phase 2 Investment Decision Stage 4: Construc
Slide 7: Stage 1: Improvements positively impacting overall biomass
Stage 1: Improvements positively impacting overall biomass Share of biomass above 2.5 kg Comments Standing biomass development in %1 ▪ Prior fish affected by high temperatures summer ‘23 and subsequent maturation has been harvested out 40% ▪ Due to very low mortality and limited feeding capacity, 35
Slide 8: Stage 1: Stable performance on key operational parameters since October 2023
Stage 1: Stable performance on key operational parameters since October 2023 Monthly mortality rates (% of fish) Monthly average water temperatures (Co) 9% Changing of protocols 23.0 Changing of protocols 8% 17.5 17.0 7% 16.5 6% 16.0 15.5 5% 15.0 4% 14.5 3% 14.0 13.5 2% 13.0 1% 0% 0.0 Feb-24 Feb-23
Slide 9: Stage 1: Strong biomass growth improvement across recent batches
Stage 1: Strong biomass growth improvement across recent batches Comparison of batch growth performance Comments Impact Weight (grams) AS growth model Denmar actual B12 to B26 avg. B28 to B34 avg. Batch 12-26 characteristics Batch 12-26 characteristics 6,000 • Growth slowing • Poor tank volume utili
Slide 10: Stage 1: Proof of concept
Stage 1: Proof of concept Stage 1 complete and validation of the phase 1 plant achieved when the following operational targets are attained • Producing large salmon • 4 consecutive weeks of average of 3.0 kg HOG or more salmon harvested • Biological FCR below 1.3 for harvested fish • 75% of harvest
Slide 11: Stage 2: Feeding restrictions to be unlocked through de-bottlenecking
Stage 2: Feeding restrictions to be unlocked through de-bottlenecking Key comments Quarterly feeding rate (kg) Changing of protocols • Monthly feeding levels have increased since October 2023 as a result of the investments made into de-bottlenecking and optimizing feeding activities • The feeding ca
Slide 12: Stage 2: Investment period to improve resiliency and efficiency
Stage 2: Investment period to improve resiliency and efficiency of existing operations Fine tuning of the facility, achieving operational excellence • The feeding capacity of the facility has been limited by bottlenecks and downtime in the water treatment capacity, and the Company therefore initiate
Slide 13: Stage 3: Phase 2 investment decision
Stage 3: Phase 3 investment decision Stage 1 complete and validation of the phase 1 plant achieved when the following operational targets are attained • Refine detailed design to incorporate lessons learned from proof of concept (stage 1) • Bid and proposal activity, value engineering to optimize •
Slide 14: Financial update
02 Financial update ATLANTIC SAPPHIRE.
Slide 15: Financial status
Financial status Summary of first half 2024 • Stable biological situation, but challenging financial situation • Lower feeding volumes than estimated has led to lower biomass and lower fish weight • Low sales price achieved • Harvest mature fish in Q1, low sales price expected • Harvest small fish i
Slide 16: H1 2024 key highlights and figures
H1 2024 key highlights and figures Overview of key figures Commentary • Approximately 2,750t RLW gross biomass gain and total harvest volume of 2,395t HOG for H1 2024 • Consistent price achievement on premium fish • Overall cost per kg of biomass produced decreased compared to the same period in 202
Slide 17: H1 2024 financial statements
H1 2024 financial statements Consolidated statement of operations Commentary Consolidated Statement of Operations • Harvest volume: 2,395t HOG in H1 2024 (870t in H1 2023) • Cost of Goods Sold: • Y/Y increase of primarily driven by increased harvest volume and realization of COGS from such batches.
Slide 18: H1 2024 financial statements
H1 2024 financial statements Consolidated statement of financial position Commentary • Operating Cash: USD 10.0m • Restricted Deposits1: USD 15.2m • CAPEX: USD 6.0m • Largely tied to US Phase 2 construction with USD 113.3m invested as of 30 June 2024, of which approximately: • USD 106.2m are infrast
Slide 19: H1 2024 financial statements
H1 2024 financial statements 2024 H1 Key Financials by Segment Summary All Focus is on the US, Considering to Divest the Remaining Danish Assets * EBITDA adjusted for fair value adjustment on biological assets and impairment of non-current assets 19
Slide 20: Atlantic Sapphire's Advantageous Location Unlocks Premium Pricing
Atlantic Sapphire’s Advantageous Location Unlocks Premium Pricing Significant upside on price achievement to follow satisfactory operational performance Commentary US price achievement: Premium fish (superior) and fresh average – USD/kg1 • Under stable conditions, ~80-90% of total harvest is Bluehou
Slide 21: Stage 3: Strong focus on building scale with the addition of Phase 2
Stage 3: Strong focus on building scale with the addition of Phase 2 Phase 1+2 Phase 1 328 675 265 Design capacity: 25,000 tons1 Design capacity: 9,500 tons1 Substantial asset 52 backing (USDm) Market cap. Net asset value Total asset value Invested equity 1 (H1 2024) (H1 2024) Phase 1 operational an
Slide 22: Contemplated transaction: Raising capital to fund investments and operations
Contemplated transaction: Raising capital to fund investments and operations towards achieving positive EBITDA for phase 1 Sources and uses until estimated EBITDA positive for Phase 1 Main terms of the contemplated transaction (extract, simplified) Sources USDm USDm Uses 1 Amendment of debt facility
Slide 23: Atlantic Sapphire
ATLANTIC SAPPHIRE.