Kaldvik As · OSL:KLDVK
Kaldvik As — Ice Fish Farm AS — Q4 2020 Earnings Presentation
27 slides from Kaldvik As's earnings presentation, Feb 24, 2021
Slide 1: PRIVATE & CONFIDENTIAL
PRIVATE & CONFIDENTIAL
Slide 2: Ice Fish Farm AS Q4 2020 report
PRIVATE & CONFIDENTIAL Ice Fish Farm AS Q4 2020 report Guðmundur Gíslason, CEO Roar Myhre, CFO NTS 24 February 2021
Slide 3: Forward looking statements
Forward looking statements This Presentation contains forward-looking information and statements relating to the business, financial performance and results of the Group and/or industry and markets in which it operates. Forward-looking statements are statements that are not historical facts and may
Slide 4: Table of content
Table of content Key Highlights Financial performance Growth and Premium build up plan PRIVATE & CONFIDENTIAL Appendix 4
Slide 5: Highlights in Q4 2020
Highlights in Q4 2020 Majority of harvest for 2021 contracted Harvested 4,4 kg fish average vs 4,9 kg fish in Q4 2019 Performance in sea versus Q4 2019 • Biomass tons 44% increase • Number of fish in the sea 57% increase • Smolt output 97% increase PRIVATE & CONFIDENTIAL • Biological status excellen
Slide 6: Table of content
Table of content Key Highlights Financial performance Growth and Premium build up plan PRIVATE & CONFIDENTIAL Appendix 6
Slide 7: Financial summary
Financial summary Operational EBIT Group Harvested volume salmon (mNOK) 5.000 3.917 54,0 4.000 3.000 2.000 1.561 1.000 8,0 - Q4 2020 2020 Q4 2020 2020 Revenue Group (mNOK) EBIT/kg (NOK) Salmon 15,27 283 8,07 99 PRIVATE & CONFIDENTIAL Q4 2020 2020 Q4 2020 2020 Key comments Harvested volume was 1.648
Slide 8: Financial highlights in Q4 2020
Financial highlights in Q4 2020 Operating EBIT 8 million in Q4 2020 ICE FISH FARM - KEY FIGURES Q4 2020 Q4 2019 Operating Revenue 98,681 94,247 Operational EBIT margin 8% in Q4 2020 Operating EBITDA 15,435 31,825 Operating EBIT 7,957 25,036 Investments 173 million total year 2020 EBIT with fair mark
Slide 9: Table of content
Table of content Key Highlights Financial performance Looking forward PRIVATE & CONFIDENTIAL Appendix World class feeders: Latest cage EFCR at 1,18 9
Slide 10: Steps for growth in our value chain
Steps for growth in our value chain Smolt production Salmon farming Processing and distribution End customer ▪ Received 550th smolt from Ishtor and ▪ Lower temperature in sea than ▪ Harvesting cost is still high, due to ▪ Sales contracts are in place for majority of 150th form Rifos in Q4. average,
Slide 11: Rifós – fresh water smolt station build up
Rifós – fresh water smolt station build up PRIVATE & CONFIDENTIAL New start feeding house. Egg to 20gr New 6 tanks 20gr to 70gr and vaxinated, redy for transfer to Kópasker. Picture taken end of Október 2020. 11
Slide 12: Pictures from construction of Start feeding house in Rifós smolt station
Pictures from construction of Start feeding house in Rifós smolt station Desember 2020 PRIVATE & CONFIDENTIAL February 2020 Started concrete in November and will receive first eggs in March. 12
Slide 13: Kópasker, 400 gr Post Smolt Station
Kópasker, 400 gr Post Smolt Station Post Smolt will be pumped to well boat, about 300 meters. Drilling for 12.6 degrees full salinity water. Already one finished, plan to finish in Q4. PRIVATE & CONFIDENTIAL First phase house being built. Will have 3,000 square meter house built over the tanks. Smol
Slide 14: Kópasker post smolt site, 12,4 degrees full salinity
Kópasker post smolt site, 12,4 degrees full salinity September 2020 PRIVATE & CONFIDENTIAL February 2021 Start moving smolt to the station beginning May 2021 and output June 2021, one year ahead of schedule. 14
Slide 15: First Cage in Fáskrúðsfjörður of 2019 generation
First Cage in Fáskrúðsfjörður of 2019 generation Started 12. June 2019 with our 2019 generation 127gr smolt. Finished harvest 18 February 2021 Average Harvest weight 5,6 kg. EFCR 1,18 95% superior quality. PRIVATE & CONFIDENTIAL 15
Slide 16: License update, after Q4
License update, after Q4 Current licenses of 20,800 tons have been advertised by government in Q1 2021 with more fertile salmon. From 12,000 tons to 18,500 tons. Applications are moving along. 37.800 Optimistic will have them converted to licenses 3.500 this year. Planned start using Stöðvafjörður a
Slide 17: Potential future growth to 50.000 tons
Potential future growth to 50.000 tons, 15 times more than 2020 harvest By utilizing Maximum biomass allowance (MAB) in our fjords in our plans we achieve up to 30% more harvest volume with MAB. Future license of 37,800 tons could reach harvest volume of 50,000 tons. 60000 50.000 50000 40000 30000 2
Slide 18: Growth investment plan.
Growth investment plan. Detailed planned capital expenditure overview Top of the line equipment and smolt stations NOKm 2021 2022 2023 Floting rings The upcoming update on license allow 21 40 21 usage of MAB (maximum biomass Nets allowance) and more sites and generations 8 24 20 Birdnets, cameras, o
Slide 19: Marketing our unique selling points
Marketing our unique selling points PRIVATE & CONFIDENTIAL 19
Slide 20: Sales and markets
Sales and markets Differentiated product, highest quality, premium brand. ICE FISH SALMON. Origin ICELAND, high on Omega3 , AquaGap certification, sustainable, color is 30+, full traceability, no chemicals, no GMO, no treatments, relaxed farming, fantastic taste, low carbon footprint with smolt stat
Slide 21: Outlook:
Outlook: Market Premium prices and good biological status gives the outlook of continued good performance and increasing demand Retail sector has grown during COVID, and this consumption has created bigger market for salmon Majority of harvest 2021 is sold out Iceland fastest growing salmon region i
Slide 22: Outlook:
Outlook: Finance and business development Good operational performance Strong balance sheet and cash level to continue growth Smolt build up, Barges and boats for 2021 have been financed Financing for smolt stations have been financed Open for Potential merger and acquisitions Sustainability and res
Slide 23: PRIVATE & CONFIDENTIAL
PRISTINE WATERS % FARMING “ . > rs 2 : Py < RESPONSIBLE cry bd S ICELAND : *, QUALITY ¢ 23
Slide 24: Table of content
Table of content Key Highlights Financial performance Growth and Premium build up plan PRIVATE & CONFIDENTIAL Appendix 24
Slide 25: Financial statement
Financial statement Consolidated statement of comprehensive income Balance sheet PRIVATE & CONFIDENTIAL ICE FISH FARM Q3 report. 25
Slide 26: Structure of ICE FISH FARM
Structure of ICE FISH FARM Ice Fish Farm AS 100.0% Fiskeldi Austfjarða hf. 100.0% Landeldisstöðin Sleipnir ehf. 50.0% 33.3% PRIVATE & CONFIDENTIAL Eldisstöðin Ísþór hf. Bùlandstindur ehf. (Smolt station) (Harvesting company) 99,5% Rifòs hf. (Smolt station) 26
Slide 27: The East fjords of Iceland have a number of favorable conditions
The East fjords of Iceland have a number of favorable conditions Aquaculture conditions in the East fjords Key advantages 1 Little wildlife Few wild fish with natural habitat or spawning Low risk of genetic mix with wild in the area, translating into low risk of interbreeding salmon with wild salmon