Company Overview
Presentation prepared for ABG Sundal Collier Alfonso Mรกrquez de la Plata, CEO Puerto Montt, Chile January 2012
Agenda
1. Overview
2. AquaChile
3. Financial Review
4. Growth Plan
5. New Developments
Empresas AquaChile at a glance • AquaChile is a Chilean company producing and commercializing Atlantic Salmon, Pacific Salmon, Sea Trout and Tilapia.
Chilean Salmon Companies by Market Cap (MUS$ )** 907 417
• Is the largest producer in Chile of Salmon and Sea Trout. Owns 149 aquacultures licenses which provides a solid basis for its growth.
405
380 101
• Has more than 400 customers, in 50 countries and leads the world production of Pacific Salmon and Sea Trout. Source: Bloomberg
• 54 th tons of Salmon and Trout and 19 th tons of Tilapia (2010) • 70 th tons of Salmon and Trout and 18 th tons of Tilapia (2011E)
Shareholder’s Structure***
• Figures as of September 2011 (MUS$ ) • Sales:
335.4
• EBITDA*:
62.4
• Net Income:
17.7
• Net Debt:
62.2
Puchi Family 33,0%
Others 33,92%
• Public since May 19, 2011 • Market capitalization of US$ 907 millions as of January 5, 2011
Fischer Family 33,0%
• Main Shareholders: Puchi and Fischer Family *Before fair value biomass adjustment **As of January 5, 2011
Pension Funds 6,0%
3
*** As of December 31, 2011
Others 28,0%
Source: The Company
25 Years of Successful Track Record Annual Sales
Today
Crisis
In MUS$
• ISA virus effects • Financial restructuring • New legal framework focused on long term sustainability • Advantages of diversification
2006 – 2007 Period • 3rd largest world producer • Global presence and reputation • IPO and acquisition plans
Beginnings • 25 years of history • Merger with Salmones Pacífico Sur • Track record forming strategic alliances • Sustained growth
501
• Diversified business model • Full vertical integration • High growth potential • Industry consolidation capacity
553 484 440 388
326 213
1986
93
79
2000
2001
138
128
2002
2003
2004
2005
2006
2007
2008
2009
Source: The Company
4
2010
2011
Focus in Diversification for Success
Pacific Salmon
Sea Trout
Atlantic Salmon
Main Figures*
% of Consolidated EBIT
% of Consolidated Sales
Geographic Diversification
15%
X and XI Region
Sales LTM MUS$ 51.6
18%
WFE Tons Sales: 8,902 EBIT LTM MUS$ 12.8
Sales LTM MUS$ 131 WFE Tons Sales: 25,049
41%
39%
36%
31%
EBIT LTM MUS$ 28.6
Sales LTM MUS$105 WFE Tons Sales: 25,604
X and XI Region
EBIT LTM MUS$ 25.2
Guanacaste
Sales LTM MUS$ 50.9
Tilapia
X and XI Region
4%
WFE Tons Sales: 17,265
15% Lake Bayano
EBIT LTM MUS$ 2.6 * Figures in MUS$ as of September 30, 2011
Source: The Company
5
Agenda
1. Overview
2. AquaChile
3. Financial Review
4. Growth Plan
5. New Developments
AquaChile: A World-Class player in the Salmon and Tilapia Industry
Vertical integration throughout the value chain
15 Years of Successful and Proven Genetic Development
State of the art Sea Licenses and Productive Assets
Global Presence and Reputation
7
Vertical integration throughout the value chain AquaChile is completely vertical integrated in the Salmon and Tilapia business. The Company adds value to all of its productive chain, from genetics up to sales.
Integration
SALMON AND SEA TROUT
FRESH WATER Eggs & Smolts
SEA WATER Farming PROCESSING
GENETICS
COMMERCIALIZATION
FEED Source: The Company
TILAPIA
FRY PRODUCTION
FARMING
PROCESSING GENETICS
COMMERCIALIZATION
FEED* Source: The Company
* The feed plant will be finished during 2012
8
AquaChile: A World-Class player in the Salmon and Tilapia Industry
Vertical integration throughout the value chain
15 Years of Successful and Proven Genetic Development
State of the art Sea Licenses and Productive Assets
Global Presence and Reputation
9
Genetic: 15 Years of Successful and Proven Genetic Development Aquainnovo: Created to be a world class center for genetic improvement in aquaculture AquaChile 83%
Increase in harvest weight of the Pacific Salmon In WFE kg 3,56
Universidad de Chile 15%
D 40%
2,54
Others 2% 1999
2009 Source: The Company
Improvement in Tilapia conversion factor of ACI Group
Reduction in the Tilapia’s on growing cycle In number of days 456
2,09 1,95
384
1,92 1,70
2007
Source: The Company
2008
2009
2010
1,65
345
D 19%
290
2007
2011e
10
Source: The Company
2008
2009
2010
D 36%
AquaChile: A World-Class player in the Salmon and Tilapia Industry
Vertical integration throughout the value chain
15 Years of Successful and Proven Genetic Development
State of the art Sea Licenses and Productive Assets
Global Presence and Reputation
11
Fresh water: Wide Capacity and Flexibility AquaChile will produce smolts to not only supply its needs but also to eventually sell to third parties Production capacity in million of smolts
Pacific Salmon
Atlantic Salmon
Sea Trout
41.6 26.5 17,8
25,2
4,8
8,6
21,7
17,8 Capacity Own Capacity
7,8
Capacity Long Term Contract
Capacity Projects Under Construction Source: The Company
Concrete projects to support growth Type of Facility Capacity Disease free eggs and smolts Property
Chaicas Project
Smolts Project
Recirculation Hatchery
Recirculation Hatchery
120 million eggs and 12.6 million smolts
12.6 million smolts
Yes
Yes
Call option for 100% of the ownership
100%
12
Sea water: Largest and Non-Replicable Licenses Base Largest licenses base and neighborhood presence in the industry
Los Lagos Region INDUSTRY Total of 24 neighborhoods
Capacity for organic growth Operational and productive continuity
AQUACHILE 56 Licenses in 12 neighborhoods
Continuous supply to clients Species diversification
Natural, climate and sanitary risks diversification
50% of
neighborhoods Of the Los Lagos region
Licenses and neighborhood by producer Company
# Licenses
%
# Neighborhood
%
AquaChile
149
14.3%
29
50.0%
Marine Harvest
141
13.5%
26
44.8%
Multiexport
86
8.3%
22
37.9%
Camanchaca
73
7.0%
14
24.1%
Los Fiordos
64
6.1%
12
20.7%
Mainstream
63
6.1%
16
27.6%
Unimarc
52
5.0%
14
24.1%
Australis
50
4.8%
12
20.7%
Pesca Chile
50
4.8%
10
17.2%
Otras
313
30,1%
Total
1,041
Source: The Company/Subpesca 2009
Aysén Region INDUSTRY Total of 34 neighborhoods AQUACHILE 93 Licenses and 17 neighborhoods
50% of
neighborhoods Of the Aysén region
58 Source: The Company
13
Licenses
Neighborhoods
Processing : Installed Capacity to Absorb Growth 6 plants with a total capacity of 191,000 tons, including one of the largest plants in the World Current production capacity of Chilean processing plants In thousands of WFE tons 68 36 16
Cardonal Plant Type
PAC-HACCP Certification Location
Cailín
25
25
Hueñocoihue
Antarfood
Calbuco
Costa Rica
21
Value Added
Whole Salmon
Whole Salmon
Value Added
Value Added
Value Added
Yes
Yes
Yes
Yes
Yes
Yes
Puerto Montt
Quellón
Dalcahue
Chonchi
Calbuco
Guanacaste Source: The Company
Diversity of Salmon Products
Diversity of Tilapia Products
Whole
HG
Trim C
Whole
Trim D
Trim E
Portions
Breaded Filets
14
Filets
AquaChile: A World-Class player in the Salmon and Tilapia Industry
Vertical integration throughout the value chain
15 Years of Successful and Proven Genetic Development
State of the art Sea Licenses and Productive Assets
Global Presence and Reputation
15
Commercialization : Global Presence and Reputation AquaChile has over 400 clients in more than 50 countries in the five continents Destination of AquaChile’s main Salmon, Sea Trout and Tilapia sales In WFE tons
Operations Exports from Chile in 2010 in nets tons Exports from Costa Rica in 2010 in nets tons
Source: The Company
16
Our Brands and Our Main Clients Renowned Brands
Reputable Clients
17
Agenda
1. Overview
2. AquaChile
3. Financial Review
4. Growth Plan
5. New Developments
Recovery and Profitability Revenues
EBITDA
In MUS$ 501
In MUS$
553 484
20%
440
388
326
25%
27% 10%
378 43
80
49
-3%
-9%
-16 2004
2005
2006
2007
2008
2009
2010
2010 IFRS
2005
EBITDA
Net Income
EBIT
In MUS$
In MUS$ 84
26 12%
45
15
2006
2007
2008
2009
16%
12% 3%
67
2010
2010 IFRS
EBITDA Margin Legal change: Industry Revival
120
58 68
17%
58
-40
Sanitary Crisis: Caligus and ISA Virus
51
18%
136
213
2004
15%
15%
35
33
44
50
2010
2010 IFRS
-75 -14%
-142
-35 -64
2004
2005
2006
2007
Net Income
2008
-32% 2009
2010
2004
2010 IFRS
Net Margin
Source: The Company
Note: The gray bars represent values in Chilean GAAP
19
2005
2006
2007
2008
2009
Recovery and Profitability (Cont..) Sales Volume, by specie
EBIT per kg Pre IFRS Adj.
In thousands of WFE tons
In US$ per WFE kg
Acum. 3Q 2010
Acum. 3Q 2011
Acum. 3Q 2010
Acum. 3Q 2011
23,3 1,4
18,6 15,1 8,9
8,8
11,5
1,1
0,9
13,5
0,5
0,4
0,3
0,3
0,8 Atlantic Salmon
Pacific Salmon
Sea Trout
Tilapia
-1,1 Atlantic Salmon
EBITDA Pre IFRS Adj.
Net Income
In MUS$
In MUS$
120%
Pacific Salmon
Sea Trout
305%
62,4
17,7
28,4
4,4
Acum. Q3 2010
Source: The Company
Acum. Q3 2010
Acum. Q3 2011
20
Acum. Q3 2011
Tilapia
Solid Financial Position Net Debt / EBITDA
Net Debt
In times
PCGA
In MUS$
IFRS
PCGA 389
6,70
6,07
1,79
2004
2005
174
88
1,28
2006
389
300
144
2,07
IFRS 397
2007
-
-
2008
2009
62
0,68 2010
Sep-11 LTM
2004
2005
2006
2007
2008
2009
2010
sep-11
Source: The Company
Restructured Financial Debt Maturity Total Restructured Debt: MUS$ 182
58,5 41,2 33,7 22,5
18,7 7,5
0,0
0,0
2011
2012
2013
2014
2015
2016
2017
2018 Source: The Company
21
Financial Summary 2010
3Q11
2011
∆ QoQ ∆ YoY
In mUS$
3Q10
2010
1Q11
2Q11
3Q11
LTM
Sales
72.405
387.841
135.884
96.960
102.568
466.706
42%
31%
Operational Cost (1)
-61.814
-299.848
-93.231
-80.235
-85.024
-345.443
38%
21%
OPERATIONAL MARGIN
10.590
87.993
42.653
16.724
17.545
121.263
66%
76%
Other Cost and Operating Expenses (2)
-4.511
-30.269
-9.923
698
-5.297
-29.567
17%
-5%
EBITDA pre FV adj.
6.079
57.724
32.730
17.421
12.248
91.697
101%
120%
Depreciation
-2.118
-16.587
-4.890
-5.454
-4.105
-22.388
94%
67%
EBIT pre FV adj.
3.961
41.137
27.840
11.967
8.143
69.309
106%
142%
Net revenues from Biological Assets (3)
-512
9.290
-9.948
4.211
-7.648
1.854
1393%
125%
EBIT post fair value adj.
3.449
50.427
17.892
16.178
495
71.163
-86%
150%
Other Non Operating Items
2.189
7.667
-8.391
-6.402
-2.034
289
-193%
78%
NET INCOME
5.638
58.093
9.501
9.776
-1.539
71.451
-127%
305%
Total Assets
485.526
571.376
569.234
794.940
752.512
752.512
55%
336%
Total Liabilities
505.708
538.395
528.300
378.439
337.504
337.504
-33%
146%
Total Equity
-20.182
32.981
40.934
416.501
415.008
415.008
-2156%
-4423%
EBITDA Margin
(1) Operational Costs are calculated considering: Cost of Goods Sold minus depreciation, minus the higher cost of the biomass of fish sold arising from the revaluation for their natural growth (2) Other Costs and Operating Expense includes the accounts: "Distribution Costs" and "Sales General & Administration Expenses" (3) Net Revenues from Biological Assets, is the profit for the natural growth of the biomass of unsold fish, plus the higher cost of the biomass of fish arising from the revaluation for their natural growth, minus the profit for the natural growth of the biomass of fishes sold (See note 11. Biological Assets ).
22
Source: The Company
Agenda
1. Overview
2. AquaChile
3. Financial Review
4. Growth Plan
5. New Developments
Growth Plan Sowing In million of smolts 54
57
57
13
13
13
16
16
16
16
50 42
37
12
11
24
21
10
9
15
13
9 9
16
22
25
28
28
12
2009
2010
2011e
2012e
2013e
2014e
2015e
2016e
15
Sea Trout
Pacific Salmon
Total
Source: The Company
Sales Volume1 In thousands of WFE tons per species
CAGR
20%
202
179 151
92 18 24 21 29
2009
72
88
110
27 29
19 23 30
18 27 28 15
24 27 37 22
2010
2011e
2012e
Atlantic Salmon
39
39
Sea Trout
(1) For estimates, we assume that tons harvested equal sales volume
24
36
31 32
215 41
32
32
39
39
55
77
95
102
2013e
2014e
2015e
2016e
Pacific Salmon
Total
Source: The Company
Agenda
1. Overview
2. AquaChile
3. Financial Review
4. Growth Plan
5. New Developments
New Developments
1.
AquaInnovo – CITA
2.
Salmones Chaicas
26
New Developments (Cont‌)
www.verlasso.com
Source: The Company
27
New Developments (Cont‌) www.verlasso.com Alejandro
Cristian
Verlasso salmon
Verlasso farms
Source: The Company
28