Kaldvik As · OSL:KLDVK
Kaldvik As — Ice Fish Farm AS — Q3 2020 Earnings Presentation
25 slides from Kaldvik As's earnings presentation, Nov 12, 2020
Slide 1: Ice Fish Farm AS – Q3 report
PRIVATE & CONFIDENTIAL Ice Fish Farm AS – Q3 report Guðmundur Gíslason, CEO Roar Myhre, CFO NTS 12 November 2020
Slide 2: 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 3: Table of content
Table of content Key Highlights Financial performance Growth and Premium build up plan PRIVATE & CONFIDENTIAL Appendix 3
Slide 4: Highlights in Q3 2020
Highlights in Q3 2020 EBIT of NOK 12.88 per kg on salmon. No issues with logistics in sales Performance in sea versus Q3 2019 • Biomass 39% increase • Smolt output 75% increase Smolt stations • Build up going faster than planned • Mortality on transfer’s 6% Premium Organic Ice Fish Salmon • New bran
Slide 5: Table of content
Table of content Key Highlights Financial performance Growth and Premium build up plan PRIVATE & CONFIDENTIAL Appendix 5
Slide 6: Financial summary
Financial summary Harvested volume salmon Operational EBIT Group and artic charr (tonnes) (mNOK) 2,612 46.1 800 9.2 Q3 2020 YTD 2020 Q3 2020 YTD 2020 (01.07-30.09) (01.07-30.09) Revenue Group EBIT/kg (NOK) Salmon 20.04 185 12.88 51 PRIVATE & CONFIDENTIAL Q3 2020 YTD 2020 Q3 2020… (01.07-30.09) YTD 2
Slide 7: Financial highlights in Q3 2020
Financial highlights in Q3 2020 Operating revenue NOK 50.9 million. ICE FISH FARM - KEY FIGURES Q3 2020 Q3 2019 Operating Revenue 50,929 7,997 Average salmon price NOK 47.49 Operating EBITDA 17,003 - 12,342 Operating EBIT 9,192 - 16,973 (NASDAQ) making our Premium EBIT with fair market value 10,658
Slide 8: Giga growth investment plan, to 35 thousand tons
Giga growth investment plan, to 35 thousand tons. Detailed planned capital expenditure overview Top of the line equipment and smolt stations Total investment NOKm 2020 2021 2022 2023 2024 Farming operations: New sites for next Floating rings 12 20 37 19 0 year. Nets 8 10 26 21 14 Birdnets, cameras,
Slide 9: Table of content
Table of content Key Highlights Financial performance Looking forward PRIVATE & CONFIDENTIAL Appendix 9
Slide 10: Major steps for growth in our value chain
Major steps for growth in our value chain Smolt production Salmon farming Processing and distribution End customer ▪ Isthor delivered record number of ▪ A bit lower growth than expected. ▪ New grader was installed. Increase ▪ Sales contracts are in place for majority of smolts this year. ICE receive
Slide 11: Location is everything when you want to grow big smolts
Location is everything when you want to grow big smolts Rifós/Kópakser • The Mid-Atlantic Ridge (MAR) is a mid- ocean ridge, a divergent or constructive plate boundary located along the floor of the Atlantic Ocean, and part of the longest mountain range in the world. • In the area of north of Icelan
Slide 12: Kópasker GIGA project, Strategically important for growth
Kópasker GIGA project, Strategically important for growth PRIVATE & CONFIDENTIAL 100 gr takes 3 months to reach 400 gr. 400gr in sea is 7 months faster than 100gr. 12
Slide 13: Rifós – fresh water
Rifós – fresh water 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. 13
Slide 14: 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 15: Bigger smolt is better
Bigger smolt is better Total months Farmed tons Generations Time in sea generation Tons per Size into sea 400gr 15 3 45 35,000 105,000 100gr 22 2 44 35,000 70,000 50% increased volume 35,000 tons EBIT/kg 17 NOK Increased EBIT 595,000,000 NOK PRIVATE & CONFIDENTIAL Less risk as time in sea shortens.
Slide 16: Now we have added organic to our premium salmon offering
NOW WE HAVE ADDED ORGANIC TO OUR PREMIUM SALMON OFFERING We have conditions to farm Organic salmon …Ice Fish Farm is the first Icelandic farmer to have this implementation stage of certification for Organic salmon. ORGANIC NEW We are already producing certified premium salmon under strict certificat
Slide 17: License update
License update Overall new licenses in ICELAND have been moving along: • Laxar has received additional 10th tons of license. • Licenses for smolt production have been issued. Only few people working on this currently in our institutions. • Minister has given more funds to hire more people. Outlook f
Slide 18: Outlook
Outlook: Sales Premium prices and good biological status gives the outlook of continued good performance. Harvest Harvest for 2020 estimated at 3.500 tons. Harvest for 2021 estimated at 8.700 tons. Harvest for 2022 estimated at 15.500 tons. Production Smolt investments and build up is going faster a
Slide 19: PRIVATE & CONFIDENTIAL
PRISTINE WATERS % FARMING “ . > rs 2 : Py < RESPONSIBLE cry bd S ICELAND : *, QUALITY ¢ 19
Slide 20: Table of content
Table of content Key Highlights Financial performance Growth and Premium build up plan PRIVATE & CONFIDENTIAL Appendix 20
Slide 21: Financial statement
Financial statement Consolidated statement of comprehensive income Balance sheet ‘ 000 NOK Q3 2020 Q3 2019 FY 2019 ‘ 000 NOK 30.09.2020 30.06.2019 Total revenue 50,929 7,997 293,304 Licenses 664,527 615,036 Cost of materials 18,192 1,838 225,178 Other intangible assets 14,430 14,374 Employee benefit
Slide 22: 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) 98% Rifòs hf. (Smolt station) 22
Slide 23: 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
Slide 24: Ice Fish Farm is one of the leading Icelandic salmon farmers
Ice Fish Farm is one of the leading Icelandic salmon farmers based on granted licenses – situated in the East fjords Farming locations: Granted licenses of Kòpasker (Planned smolt station) 20,800 tonnes salmon in two fjords Rifòs 8 farming Seyðisfjörður (Smolt station) sites Mjóifjörður Norðfjarðafl
Slide 25: Two pending applications for a total of 16,800 tonnes
Ice Fish Farm has two pending applications for a total of 16,800 tonnes Final approval for salmon farming in Seyðisfjörður and Stöðvafjörður expected granted Geographical location of the new fjords Comments Stöðvafjörður – 6,800 tonnes ▪ The total applications for Stöðvafjörður and Seyðisfjörður ama