Good Northern Pelagic Catches

Transcription

1 November 21, 2017

2 Good Northern Pelagic Catches North: Normalization of temperatures at sea; abundant biomass near Iquique; low costs. Thousands of tons E Q1 Q2 Q3 Q E Year Northern catches include own and third parties Industrial anchovy catches (after H2 ban) 100% 100% 100% 73% 25% 100% E X% Catches at the end of the year with respect to the annual quota E Affected by El Niño Company s estimations are based on current information, which could change due to deviations 2

3 South-Central Pelagic Catches J. Mackerel: Normal fishing conditions vs very favorable conditions in Sardine: Normalization in 8th region. Third parties catches doubled as of September. Thousands of tons Jack Mackerel Sardine (own) Sardine (third parties) E Q1 Q2 Q3 Q E Year Company s estimations are based on current information, which could change due to deviations 3

4 Fishmeal Price As of September, prices down due to higher quotas and catches in Peru. US$ / ton (Camanchaca) Peru s Fishing Quota (North-Centre Region): Nov to Jan: No quota May to Jul: 2.6 M Ton (98% catched) Nov to Jan: 1.1 M Ton (99% catched) May to Jul: 1.8 M Ton (51% catched) Nov to Jan: 2.0 M Ton (98% catched) May to Jul: 2.8 M Ton (85% catched) Nov to Jan: 1.5 M Ton (starting: Nov 23) 1,850 2,013 2,247 1,844 1,613 1,760 1,570 1,592 1,676 1,551 1,471 1,384 1,425 Prime Fishmeal Price (Chile) IFFO week ,490 Q Q Q Q Q Q Q Q Q Q Q Q Q ,780 1,600 1,404 4

5 Camanchaca Diesel Price (US$/lt) Diesel Oil Price (US$ / lt) Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q As of September 2017: At constant volume, increased fuel costs of US $ 1.3 million vs Fuel cost is approx. 15% of the total cost of fishmeal production (anchovy and industrial sardine). 5

6 Stocks (valued at cost) As of September, decrease of fishmeal inventories (US$ 1,095 / ton). Increase in mussels (US$ 2.5 / kg) compared to September 2016 September 30, 2017 December 31, 2016 September 30, 2016 December 31, 2015 VOLUME Months of Production ThUS$ VOLUME ThUS$ VOLUME ThUS$ VOLUME ThUS$ SALMON Atlantic Salmon (Tons) 3, ,229 2,595 23,763 3,676 32,471 7,458 42,198 Salmon Total 32,229 23,763 32,471 42,198 FISHING Fishmeal (Tons) 2, ,960 1,235 2,098 3,908 5,014 5,793 6,937 Fish oil (Tons) ,896 Frozen Jack Mackerel (Tons) 5, , , , Canned Fish (thousands of boxes) , , , Langostino Lobster (Tons) , , , ,824 Fishing Total 14,648 9,366 18,170 13,015 OTHER SEAFOOD Mussels (Tons) 3, ,470 3,094 5,275 2,317 4,578 2,280 5,304 Abalone (Tons) , , , ,969 Scallops (Tons) Other Seaafood Total (Tons) 9,840 7,114 6,399 7,430 COMPANY TOTAL 56,717 40,243 57,040 62,643 6

7 Atlantic Salmon Price Normalization in prices due to higher Chilean harvests in H2 with an estimated increase of ~4% in world supply in Lower harvests in Q1-17 due to Bloom 2016 and lower smolt stocking in Harvest (Thousands of Tons WFE) Price (US$ / Kg WFE) Δ+69% Δ+29% Δ+5% Δ+16% Q1 Q2 Q3 Q4 E Year E Company s estimations are based on current information, which could change due to deviations 7

8 jan-04 jul-04 jan-05 jul-05 jan-06 jul-06 jan-07 jul-07 jan-08 jul-08 jan-09 jul-09 jan-10 jul-10 jan-11 jul-11 jan-12 jul-12 jan-13 jul-13 jan-14 jul-14 jan-15 jul-15 jan-16 jul-16 jan-17 jul-17 nov-17 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 ISA Virus Overshooting recovery post ISA Δ supply (Source: ABG Sundal Collier): 5% 4% 2% 10% 7% -2% -1% 12% 22% 2% 9% 4% -7% 4% E 8

9 Chilean Salmon Price Expectation until Sep-18 Urner Barry Trim C 2-3, market spot USD/Lb Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Fishpool Index Forwards Based Model Adjusted By: Seasonal Historical Demand in the USA US vs European salmon offer growth differences Estimates subject to supply and demand fluctuations Source: Kontali, Fishpool, own analysis 9

10 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Sep-17 Atlantic Salmon: Return of the raw material (relative performance) Camanchaca vs Market (Salmonex, January 2015 = Base 100) Urner Barry Salmonex Camanchaca Lag in months with strong spot price increases (Mar - Jun 2016 and Jan - Feb 2017) As of September 2017: Camanchaca s return exceeds Salmonex (+23 cent) and Ubarry (+33 cent) indices 10

11 Salar Stocking in Chilean Industry Salar Stocking January to September (mill. of smolts), 10th, 11th and 12th región % % Source: Undersecretariat for Fisheries and Aquaculture 11

12 Salar Stocking and Stocking Plans: 10th and 11th regions Salar Stocking previous cycle vs post new regulation cycle (mill. of smolt) 25.0 Previous Cycle (same neighborhoods) Current Cycle (considers new regulation) % Considers neighborhoods opened between Sep-16 and Sep Total Source: Undersecretariat for Fisheries and Aquaculture 12

13 History and Projection of Harvests and smolt stocking in Camanchaca Harvests (Thousands of Tons WFE) Atlantic salmon from current active sites Atlantic salmon from previously leased sites Trout E 2018 E 2019 E 2020 E 2021 E 2022 E 2023 E Includes one third of the trout harvests originated by the joint venture business started in 2016 Salar smolt stocking (mill. smolt) E 2018 E 2019 E Estimate in November 2017 subject to variations due to future strategic decisions of the Company, changes in regulation, state of sanitary conditions or any other event not contemplated with the information available to date 13

14 Salar Health Conditions in Camanchaca (closed cycle) Q1-16 affected by harmful algae bloom (HAB) event. Favorable sanitary conditions starting in Q2-16 Mortality % 36.8% 8.7% 5.5% 5.4% 19.2% 5.4% 14.2% 9.0% 4.2% 12.9% 5.5% 9.5% 10.9% 7.0% E E Q1 Q2 Q3 Q4 Year Economic Feed Conversion Ratio E E Q1 Q2 Q3 Q4 Year Company s estimations are based on current information, which could change due to deviations 14

15 Atlantic Salmon Costs Q4-15 and H1-16 affected by SRS and low oxygen conditions in the 10th region. Q2-17 affected by harvests coming from third-party-hatchery smolts. Q3-17: downward costs. Atlantic Salmon - Liveweight ex-cage cost (US$ / kg) Feed OPEX Smolt Labor Medicine Others Q Q Q Q Q Q Q Q Q Q Q Company s estimations are based on current information, which could change due to deviations 15

16 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Dec-17 Development of Atlantic Salmon Margins Back to positive margins in Q2-16 increased in H2-16 Q2-17 affected by harvests coming from third-party-hatchery smolts Raw Material Cost and RMP (Raw Material Return) Base 100 = RMP January Leptepu Cahuelmó Lamalec Licha Contao Puelche Mañihueico Islotes Izaza Edwards Ahoní Pilpilehue Cabudahue Puerto Arg. F.Largo Leptepu Cahuelmó Forsyth Johnson 2 Loncoch. Marilmó Porc. 10th region sites Puelche Licha 11th region sites Ahoní Pilpileh.- Maril. Islotes --Izaza-- P. Arg. Porc. --Edwards-- F.Larg RM cost before processing RMP 16

17 Development of Atlantic Salmon Margins EBIT (US$/Kg WFE) before Fair Value in the Salmon business Atlantic Salmon Business EBIT without trout joint venture Q Q Q Q Q Q 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. 17

18 Results January September (US$ million) Profit/Loss Fishing Salmon Other Seafood TOTAL EBITDA (before Fair Value) Fishing Salmon Other Seafood TOTAL

19 Last 4 mobile quarters development EBITDA Revenues X% EBITDA/Revenues % % % % 10.0% % % 1.8% % % % % % 58.5 Q Q Q Q Q Q Q Q Q Q Q Q Q

20 Last 4 mobile quarters development FISHING SALMON Total Revenues Own Revenues EBITDA OTHER SEAFOOD Q Q Q Q Q Q Q Q Q Q Q Q Q

21 Salmones Camanchaca: IPO Process Corporate Reorganization of Salmones Camanchaca: Extraordinary shareholders meeting on September 14, 2017 Capital increase amount: US$ 38,579,359 Issuance of 340,266 shares subscribed and paid by the Parent Company with: Capitalization of contributions: US$ 19,500,024 Fiordo Blanco shares transfer: US$ 18,712,484 Surproceso shares transfer: US$ 366,851 Registration Process with Chilean and Norwegian Authorities (starting 3rd week of September) Designation of new Directors at Salmones Camanchaca Tore Valderhaug - former CEO and former CFO of Cermaq Felipe Sandoval Chairman of Salmon Chile Estimated Placement Date: First Quarter

22 Debt Refinancing 2017: US$ 165 million Debt repayment schedule (US$ mill.) Debt Refinancing 2013 Debt Refinancing ,3* 8.16,3* 9.16,3* 6,3* May 2018 Nov 2018 May 2019 Nov 2019 May 2020 Nov 2020 May 2021 Nov 2021 May 2022 Nov 2022 Prepaid repayments in case IPO takes place 22

23 Debt Refinancing 2017: US$ 165 million Tranche A: TERM LOAN Amount: US$ 25 million to the parent Company (term of 2 years) Amortizations: Semiannual (4 in total) Prepayment if IPO takes place Tranche B: REVOLVING LINE Amount: US$ 40 million to the parent Company (term of 5 years with 2.5 of grace period) Amortizations: Semiannual (6 in total starting in month 30) Availability fee: 0.35% on applicable margin Tranche C: REVOLVING LINE Amount: US$ 100 million to Salmones Camanchaca(term of 5 years with 3 of grace period) Amortizations: 2 of 10% (end of year 3 and 4) Payment in year 5 of the remaining 80% Availability fee: 0.35% on applicable margin Financial Covenants: Net Debt / LTM EBITDA < 4.0x and Net Equity/ Assets > 40% Interest Rate: according to Net Debt / EBITDA ratio In case of IPO: Libor % to 3.25% Without IPO: Libor + 2.5% to 3.5% 23

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