Results Jan Sep (MUS$)

Transcription

1 December 4, 2015

2 Results Jan Sep (MUS$) EBITDA (before Fair Value) Profit / Loss Fishing Salmon Other Seafood TOTAL Fishing Salmon Other Seafood TOTAL 2

3 Development: Last 4 mobile quarters EBITDA (MUS$) Revenues (MUS$) X% EBITDA/Revenues ,6% 11,0% ,4% ,3% ,0% ,2% 10,0% ,4% 2.0 2,7% Q Q Q Q Q Q Q Q Q

4 Driver: Pelagic Fishing Sardine: Lower fishing quota (-18%) and bans due to low fish size. Jack Mackerel: Delay in catches, but recovery as of Q3. Anchovy: Lower industrial quota (-14%) and initial delay, but more third parties purchases; Weak Q4 due to El Niño phenomenon. Sardine 38 Jack Mackerel Anchovy E Q1 Q2 Q3 Q E Year Thousands of tons In the case of the sardine, and anchovy, catches include own and third parties. Company s estimations are based on current information, which could change due to deviations 4

5 Global Fishing Quotas Global Fishing Quotas for Chile Tons Sardine 323,400 (1) 284,000 Langostino Lobster 8,027 5,111 Anchovy 618, ,652 (2) (1) Global Fishing Quota for sardine was revised and raised to 478,000 tons in Q3-15 (2) Recommendation of scientific and technical committee ORP Global Fishing Quotas for South Pacific (in 2015, Chile got 65% of this quota) Tons Jack Mackerel 460, ,000 (3) (1) Recommendation of scientific and technical committee 5

6 Industrial quota Tendering- Sardine Fully exploited fishery, managed with global catch quota and is at a level equal to or greater than 90% of their maximum sustainable performance auction of maximum Industrial fraction according to Fishery Law (15%). Industrial fraction corresponds to 22% of the global quota, so 3.3% is tendered. Auction gives rise to LTP-B, 20 years renewable. Camanchaca owns 18.3% of the industrial fraction, or 4.03% of the global quota 0.6% of its global share is auctioned. 40% of the total auction is reserved for small businesses, so that the industrial sector can access a maximum of 1.98% of the global quota, and will drop from 22% to 20.68% Camanchaca can access up to 40% of the total, i.e. a maximum of 1.32% of the global quota. After the auction Camanchacas quota could be: In the best case, 22.93% of the industrial fraction (4.74% global share, an increase of 0.72% of this quota) In the worst case, 16.55% of the industrial fraction (3.42% global share, 0.6% less) Auction mode: Closed envelope. Deadlines: 1. Administrative Background: December 10, Economic offer and award: December 17,

7 Driver: Fishmeal Price Prices hit a peak in Q1 2015, and fell after normalization of the Peruvian quota for the 1 st season and then rise again due to a lower quota for the 2 nd and due to El Niño risks. US$ x ton (Camanchaca) Peru s Fishing Quota: May to Jul: 2 M Ton Nov to Jan: 2.5 M Ton May to Jul: 2.5 MM Ton (68% catched) Nov to Jan: No quota 2,247 May to Jul: 2.6 MM Ton (98% catched) Nov to Jan: 1.1 M Ton Prime Fishmeal Price (Chile) IFFO Q4 as of Week ,013 1,813 1,803 1,850 1,844 1,871 1,532 1,398 1,492 1,567 1,613 Q Q Q Q Q Q Q Q Q Q Q ,605 1,763 1,789 7

8 Higher Stocks of fishmeal, fish oil and mussels (valued at cost) September 30, 2015 December 31, 2014 VOLUME Months of Production ThUS$ VOLUME ThUS$ SALMON Atlantic Salmon and Trout (Tons) 4, ,138 6,021 37,889 Salmon Total 29,138 37,889 FISHING Fishmeal (Tons) 10, ,416 4,879 5,492 Fish oil (Tons) 1, , Frozen Jack Mackerel (Tons) 2, ,686 1,418 1,058 Canned Fish (thousands of boxes) , ,211 Langostino Lobster (Tons) , ,789 Fishing Total 25,691 15,534 OTHER SEAFOOD Mussels (Tons) 2, ,113 1,230 3,026 Abalone (Tons) , ,915 Scallops (Tons) ,108 Other Seaafood Total (Tons) 9,196 7,049 COMPANY TOTAL 64,025 60,472 8

9 Driver: Favorable Salmon Sanitary Conditions Mortality Atlantic Salmon % in closed cycle % 8.7% 9.0% 5.4% 11.7% 14.2% 9.8% 12.0% 9.8% 10.5% 10.0% 9.5% Q1 Q2 Q3 Q4 Year Q4 2015: Increased SRS and sea lice. Economic Feed Conversion Rate Atlantic Salmon Q1 Q2 Q3 Q4 Year Company s estimations are based on current information, which could change due to deviations 9

10 Cost reduction Atlantic Salmon - Cost ex-cage liveweight (US$ x kg) Others Medicine Labor Smolt OPEX Feed Q Q Q Q Q Q Q Q Q Improvements in cost mainly for better diets and feeding techniques, coupled with better processes in freshwater. 10

11 Driver: Atlantic Salmon Price Drop in prices due to devaluations of currencies against the USD US$ x kg WFE (Salmones Camanchaca) Harvest (Thousands of Tons) 6.0 Δ-20% Δ-22% Δ-19% ,8 11,6 5,0 4,9 9,2 11,2 14, , Q1 Q2 Q3 Q4 Year E E Company s estimations are based on current information, which could change due to deviations 11

12 jan-04 may-04 sep-04 jan-05 may-05 sep-05 jan-06 may-06 sep-06 jan-07 may-07 sep-07 jan-08 may-08 sep-08 jan-09 may-09 sep-09 jan-10 may-10 sep-10 jan-11 may-11 sep-11 jan-12 may-12 sep-12 jan-13 may-13 sep-13 jan-14 may-14 sep-14 jan-15 may-15 sep-15 nov-15 Atlantic Salmon Price: Long-term trend Urner Barry Trim C US$/Lb In November, market prices 35% below its trendline. If we could have sold at trend price: + US$ 30 million as of September

13 Camanchaca s Atlantic Salmon RMP Camanchaca vs Market (Salmonex, January 2012 = Base 100) 180 Urner Barry Salmonex Camanchaca Camanchaca s RMP (Raw Material Return) higher than the Urner Barry and Salmonex indexes (+88 y +66 cents respectively as of September 2015). 13

14 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Development of Atlantic Salmon Margins Despite significant improvements in costs, tight margins due to price situation 10th region sites 11th region sites Raw Material Cost and RMP Base 100 = RMP January Benjamín Pilpilehue Tahuenahuec Ahoní Izaza Cabudahue Fiordo Largo Leptepu Porcelana Loncochalgua Lamalec Cahuelmó Licha Puelche --Mañihueico-- Contao Islotes Izaza Edw.-- --Pilpilehue-- ---Cabudahue F.Largo P.Arg RM cost before processing RMP Company s estimations are based on current information, which could change due to deviations 14

15 Development of Atlantic Salmon Margins EBIT (US$/Kg WFE) before Fair Value Q Q Q Q Q Q Q Q Q Atlantic Salmon Business includes other Revenues and Costs due to services and sales to third parties, and intercompany salmon sales to our offices abroad. 15

16 Development of Atlantic Salmon Margins - EBIT (US$/Kg WFE) Camanchaca better than their Chilean peers in the last 12 months (0.50) (1.00) (1.50) CAMANCHACA E1 E2 E3 E4 E5 (2.00) (2.50) Q1 Q2 Q3 Q4 Q1 Q2 Q

17 SalMar Norway Royal Salmon Lerøy Seafood Marine Harvest Grieg Seafood CAMANCHACA E1 E3 E2 E4 Development of Atlantic Salmon Margins - EBIT (US$/Kg WFE) As of Q3 2015: Camanchaca is the only Chilean stock exchange listed company with positive EBIT/Kg (0.37) (0.43) (0.85) (1.44) 17

18 Reconstruction and Insurances - Petrohué Pisciculture Reconstruction : In September, the new Hatchery starts operations with 2.88 million eggs. In November, the alevin process was completed successfully. Hatchery Fry 2: alevin process Insurances : In October, Insurance Biomass was settled for US$ 2.1 million. In November, the Company received US$ 4.8 million as an advance for the insurance of fixed assets that will help finance the pisciculture rebuilding 18

19 Driver: Diesel Price Drop from Q US$ x lt E E Q1 Q2 Q3 Q4 Year At constant volume, fuel cost save as of September 2015 of US$ 5.4 million. Company s estimations are based on current information, which could change due to deviations 19

20 Scallop Business Sale in Guanaqueros Concessions Location Guanaqueros, 4th region, Chile Assets as of September Concessions 447 aquaculture hectares (US$ 547 thousand) 2 Biomass 21.6 million of units (US$ 488 thousand) 3 Fixed Assets* US$ 261 thousand TOTAL US$ 1.3 million * Book value 20

21 Basis of Scallop Business Sale in Guanaqueros Downward trend prices and historically negative EBIT Price (US$ / Kg) E EBIT (Th US$) , More background: E Peruvian scallop with competitive advantages. Labor costs in Chile with an upward trend in the north. 2012: Attempted sale of assets fails due to no interest from investors. 2014: Closure of Bahía Inglesa with an impact in profit of US$ 2.5 million. 21

22 Purchase offer for Scallop Business in Guanaqueros On October 27, 2015 a purchase offer for the assets was received. Price: US$ 1 million. Companies participating in the offer: Kosta Fria S.A. Inversiones Alcri Limitada. Inversiones Salar Chico Limitada (Cristián Fernández García, related to the controller). Offer includes: Aquaculture concessions. A wastewater treatment plant with equipment. Scallop biomass. Fixed Assets. The independent evaluator (Larrain Vial) considers that the fair value for assets is equivalent to the amount of US$ 820,000 due to asset valuation (DCF method: US$ 294,000). Camanchaca s Board approves the transaction subject to ratification of the shareholders meeting that takes place on December 10,

23 Certificate of Crime Prevention Model (CPM) is obtained On October 26, the CPM of Camanchaca and its subsidiaries is certified. Certifying organization: BH Compliance. Certificates available on our Web site 23

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