Investor Presentation • Nov 1, 2022
Investor Presentation
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Aker BioMarine ASA 1 November 2022
3
Increased market share in a large, growing and strictly regulated krill biomass in Antarctica
%: max share of precautionary catch limit per area
Aker BioMarine's share of global krill catch
Significantly increased produced volumes in 2022
Higher Q3 volumes 25,000
Sales in 2022 impacted by macro events – set for delivering on our plans
▪ Lower sales than target, measures taken
▪ x1.5-2.0 times growth, COVID-shutdown prevented sales to full potential in 2022
▪ 15% sales volume growth last 12m; lower than target, inventory adjustments at customers, slower ramp up of new team
USD million, rolling 12 months
Submission finalized with the Ministry of Food and Drug Safety, awaiting decision by review-board in Q4
Longer-term annual sales growth target of +15% to 20%
Increasing our Kori offering Launch of a multi-benefit omega-3 gummies supplement
Average margin development at major retailers
Group figures
Revenue USD million
1.3
5%
| Q3 2022 | Q3 2021 | YTD 2022 | YTD 2021 | 2021 | |
|---|---|---|---|---|---|
| USD million | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) |
| Net sales | 67.9 | 62.0 | 198.2 | 186.3 | 262.1 |
| Cost of goods sold | (36.6) | (40.5) | (115.2) | (118.0) | (174.0) |
| Gross profit | 31.2 | 21.5 | 83.0 | 68.4 | 88.1 |
| SG&A | (20.8) | (21.5) | (64.3) | (63.0) | (85.7) |
| Depreciation, amortization and imp. (non-production assets) | (4.2) | (5.2) | (12.5) | (16.8) | (19.2) |
| Other operating income | 0.1 | 3.0 | 10.1 | 3.0 | 3.1 |
| Other operating cost | - | - | - | - | |
| Operating profit (loss) | 6.4 | (2.2) | 16.2 | (8.4) | (13.7) |
| Net financial items | (1.2) | 15.6 | (5.4) | 9.4 | 6.3 |
| Tax expense | (0.6) | 0.2 | (1.0) | (0.6) | (0.6) |
| Net profit (loss) | 4.6 | 13.5 | 9.8 | 0.4 | (8.0) |
| EBITDA reconciliation | |||||
| Net profit (loss) | 4.6 | 13.5 | 9.8 | 0.4 | (8.0) |
| Tax expense | 0.6 | 0.2 | 1.0 | 0.6 | 0.6 |
| Net financial items | 1.2 | (15.6) | 5.4 | (9.5) | (6.3) |
| Depreciation, amortization and imp. | 4.2 | 5.2 | 12.5 | 16.8 | 19.2 |
| D&A and imp. from production assets incl. in COGS | 8.2 | 9.4 | 26.5 | 28.9 | 37.7 |
| EBITDA (unadjusted) | 18.8 | 12.4 | 55.2 | 37.3 | 43.2 |
| Adjustments | - | 2.3 | (6.9) | 3.5 | 4.7 |
| EBITDA (adjusted) | 18.8 | 14.7 | 48.3 | 40.8 | 47.9 |
▪ Net sales for the quarter up 10% compared to third quarter last year. The positive development is driven by Qrill Aqua sales in the Ingredients segment and Kori Krill oil sales in the Brands segment. Slightly higher Superba volumes in the quarter compared to last year
▪ High offshore production in first half 2022 contributed to lower unit cost on krill meal in the third quarter, improving Qrill Aqua margins compared to last year. Increased margins in the Brands segment due to higher Kori sales
▪ SG&A cost on par with same quarter last year, despite significantly higher freight rates this quarter
▪ Intangible assets amortized according to plan. Depreciation on productionrelated assets included in cost of goods sold. Lower depreciation on Saga Sea and Houston factory this quarter compared to last year
▪ Net financial items impacted by realized and unrealized agio effects. Third quarter 2021 included a fair value adjustment on the Lang earn-out
| USD million | Q3 2022 | Q3 2021 | 2021 |
|---|---|---|---|
| (Unaudited) | (Unaudited) | (Audited) | |
| ASSETS | |||
| Property, plant and equipment | 325.1 | 322.5 | 327.9 |
| Right to use assets | 10.7 | 12.3 | 11.3 |
| Intangible assets and goodwill | 162.6 | 172.6 | 171.5 |
| Contract cost | 5.7 | 7.7 | 7.2 |
| Other non-interest-bearing non-current receivables | 2.6 | 0 | - |
| Investments in associated companies | 11.3 | 0.1 | 0.1 |
| Total non-current assets | 518.0 | 515.2 | 518.0 |
| Inventories | 180.5 | 150.4 | 138.2 |
| Trade receivable and prepaid expenses | 71.5 | 67.5 | 77.7 |
| Derivative assets | 13.1 | 12.8 | 12.5 |
| Cash and cash equivalents | 13.5 | 19.6 | 11.1 |
| Total current assets | 278.6 | 250.3 | 239.5 |
| TOTAL ASSETS | 796.6 | 765.5 | 757.5 |
| LIABILITIES AND OWNERS' EQUITY | |||
| Interest-bearing non-current liabilities | 316.4 | 287.8 | 294.1 |
| Other non-interest-bearing non-current liabilities | 5.6 | 17.4 | 15.7 |
| Total non-current liabilities | 322.0 | 305.2 | 309.8 |
| Interest-bearing debt | 57.2 | 37.3 | 30.7 |
| Accounts payable and other payables | 36.9 | 43.5 | 46.6 |
| Total current liabilities | 94.0 | 80.8 | 77.3 |
| TOTAL LIABILITIES | 416.0 | 386.0 | 387.1 |
| Total equity | 380.5 | 379.6 | 370.5 |
| TOTAL EQUITY AND LIABILITIES | 796.6 | 765.6 | 757.5 |
| Property, plant and equipment ▪ Growth and maintenance capex in the quarter, primarily in the Ingredients |
|---|
| segment on vessels and Houston production related equipment. Also includes investments on growth projects such as INVI and Lysoveta |
| ▪ Prolonged useful life estimate on Saga Sea reducing quarterly depreciations |
| Inventories |
| Build-up of inventory in the Ingredients segment; superba krill oil from Q3- ▪ 21 to Q2-22, and then Qrill Aqua meal last quarter |
| Cash and cash equivalents (including derivatives) |
| ▪ Cash and cash equivalents (including derivatives) were USD 26.6 mill Net interest-bearing debt (including leasing and derivatives) was USD 340.7 mill. |
| Investments in associates |
| ▪ Includes the Group's investment in Aion and other minor investments. The investment in Aion is recognized at fair value based on the latest transaction price |
| USD million | Q3 2022 (Unaudited) |
Q3 2021 (Unaudited) |
YTD 2022 (Unaudited) |
YTD 2021 (Unaudited) |
2021 (Unaudited) |
|---|---|---|---|---|---|
| Net profit (loss) after tax | 4.6 | 13.5 | 9.8 | 0.4 | (8.0) |
| Taxes, net | 0.2 | 0.2 | (1.2) | 3.9 | 3.9 |
| Interest and other finance items, net | (3.4) | 0.9 | (9.0) | 1.8 | 0.9 |
| Other profit and loss items with no cash flow effect | - | (19.6) | (10.7) | (19.6) | (21.1) |
| Impairment charges | - | - | - | 3.9 | 5.8 |
| Depreciation and amortization | 12.7 | 18.0 | 38.9 | 45.3 | 51.1 |
| Foreign exchange loss (gain) | 2.1 | (0.2) | 8.3 | (0.3) | (0.3) |
| Change in accounts receivable, other current receivables, inventories, accounts payable and other |
(15.7) | (1.4) | (45.7) | (40.4) | (31.6) |
| Net cash flow from operating activities | 0.4 | 11.5 | (9.6) | (5.0) | 0.7 |
| Payments for property, plant and equipment | (10.6) | (5.2) | (24.2) | (64.5) | (78.7) |
| Payments for intangibles | - | (0.5) | (2.1) | (1.4) | (2.4) |
| Proceeds from sales of PPE | - | - | - | - | 1.9 |
| Payment of earn-out | - | - | (11.1) | - | - |
| Net cash flow from investing activities | (10.6) | (5.7) | (37.5) | (66.0) | (79.2) |
| Proceeds from issue of debt and change in overdraft facility |
7.4 | 2.1 | 26.2 | 1.4 | 4.2 |
| Net change in external interest-bearing debt | (0.6) | (0.6) | 22.9 | 78.5 | 74.7 |
| Net funds from issue of shares | (0.2) | - | 0.2 | - | - |
| Net cash flow from financing activities | 6.7 | 1.6 | 49.4 | 79.9 | 78.9 |
| Net change in cash and cash equivalents | (3.6) | 7.3 | 2.3 | 8.9 | 0.5 |
| Cash and cash equivalents beginning of the period | 17 | 12.2 | 11.1 | 10.7 | 10.7 |
| Cash and cash equivalents end of period | 13.5 | 19.6 | 13.5 | 19.6 | 11.1 |
| ▪ | Positive cash flow from operations despite build-up of inventories in |
|---|---|
| the Ingredients segment as well as higher accounts payable and | |
| receivable going out of the quarter | |
| ▪ | Interest paid on loan facilities amounting to USD 3.1 mill. |
▪ In the quarter there have been payments on ongoing projects such as protein project in Norway, for Lysoveta, and preparing the Houston facility for new products
▪ Drawdown on the overdraft facility amounting to USD 7.4 mill. and down-payment on the RCF facility in the quarter
Earnings target unchanged - expecting lower topline growth and higher margins for the year
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Excluding eliminations between Ingredients and Brands
Curbing the impact on surging oil prices and creates predictability in largest cost drive
Gasoil 0.1% FOB Rotterdam Barges (USD/Mt)
Building tools?
Free accounts include 100 API calls/year for testing.
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