EMPRESAS AQUACHILE
Corporate Presentation March 2012
1
1
Overview
2
AquaChile
3
Financial Review
4
Sustainability and Stakeholders
5
New Developments
2
Empresas AquaChile at a glance.
AquaChile is a Chilean company that produces and commercializes Atlantic Salmon, Pacific Salmon, Sea Trout and Tilapia.
It owns inland farms in Costa Rica and the only three farming licenses granted in the Bayano Lake in Panama to produce Tilapia. It has more than
It has operations in Chile, Costa Rica, Panama and a commercial office in the United States.
50 400 customers in countries. Chilean Salmon Exports Ranking as of December 2011
It is the largest producer in Chile of Salmon and Sea Trout. It owns 149 sea licenses which provide a solid basis for its growth.
Source: Infotrade
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Empresas AquaChile at a glance.
2011 physical sales:
Figures as of December 2011:
65,089
17,240
WFE tons.
WFE tons.
Sales MUSD
Net Income MUSD
501.2
54.9
EBITDA* MUSD
Net Interest Bearing Debt MUSD
95.4
82.8
*Before fair value biomass adjustment
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Empresas AquaChile at a glance.
Chilean Salmon Companies by Market Cap (MUSD)*
Public since
May 19th, 2011 Market capitalization of
USD 970 million
Source: Bloomberg
as of March 13th, 2012 Main Shareholders:
Shareholder’s Structure**
Puchi and Fischer Families 2011 average daily trading volume
USD 2,0 million Source: The Company
*As of March 13th, 2012 ** As of December 31th, 2011
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25 years of succesful track record. Annual Sales InBeginnings MUSD
• 25 years of history • Merger with Salmones Pacífico Sur • Track record forming strategic alliances • Sustained growth
2006 – 2007 Period
• 3rd largest world producer • Global presence and reputation • IPO and acquisition plans
Crisis
• ISA virus effects • Financial restructuring • New legal framework focused in long term sustainability • Advantages of diversification
Today
• • • •
Diversified business model Vertical integration High growth potential Industry consolidation capacity
Revenues In MUSD
Source: The Company
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Focus in
diversification for success. Atlantic Salmon
Sales: MUSD 76.9 WFE Tons Sales: 14,251 EBIT: MUSD 14.6 EBIT/Kg WFE USD 1.03
19%
Sea Trout
Sales: MUSD 136.5 WFE Tons Sales: 25,366 EBIT: MUSD 29.8 EBIT/Kg WFE USD 1.18
39%
Pacific Salmon
% of Consolidated EBIT
Sales: MUSD 107.5 WFE Tons Sales: 25,473 EBIT: MUSD 28.8 EBIT/Kg WFE USD 1.13
38%
Tilapia
Main Figures*
Sales MUSD 47.5 WFE Tons Sales: 17,240 EBIT: MUSD 2.9 EBIT/Kg WFE USD 0.17
4%
* Figures in MUSD as of December 31, 2011
% of Consolidated Sales
Geographic Diversification
15%
X and XI Region
27%
X and XI Region
21%
X and XI Region
9%
Bayano Lake Guanacaste
Source: The Company
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1
Overview
2
AquaChile
3
Financial Review
4
Sustainability and Stakeholders
5
New Developments
8
Organic growth plan Supported by strong market fundamentals Sowing In million of smolts
13
12 11
11
16
16
13
13
16
16
15 9
9
13
17 16
9 3
11
2 2009
2010
2011
2012e Atlantic Salmon
Sales Volume1
22
25
28
28
2013e
2014e
2015e
2016e
Sea Trout
Pacific Salmon
Source: The Company
CAGR 20%
In thousands of WFE tons per species
202 179
151 110
92 18 24 21
72 19 23
82
24
17 25
27 37
29
30 1
25 14
2009
2010
2011
Atlantic Salmon
27 29
36 31
32
32
215 41 32
39
39
95
102
2015e
2016e
39
39 55
77
22
2012e
Sea Trout
(1) For estimates, we assume that tons harvested equal sales volume
2013e
Pacific Salmon
2014e
Tilapia
Source: The Company
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AquaChile: Strong organic growth plan based on unique assets
Sea Water: High quality and diversified license portfolio Fresh Water: Flexibility and excess installed capacity Processing: Installed capacity to absorb growth Vertical integration throughout the value chain Global presence and reputation
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Sea water: Unique, diversified and large license portfolio.
One of the largest sea licenses base and the largest presence within sanitary areas in the Chilean industry.
149 Sea licenses distributed in
29 Sanitary Areas -Geographic distribution -Organic growth capacity -Operational and productive continuity -Continuous supply to clients -Species diversification -Natural, climate and sanitary risk diversification
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Sea water: Unique, diversified and large license portfolio.
Los Lagos Region
Geographical diversification in sea licenses for Salmon and Sea Trout production.
INDUSTRY Total of 24 sanitary areas AQUACHILE 56 sea licenses in 12 sanitary areas
50% of sanitary areas of the Los Lagos Region
Aysen Region INDUSTRY Total of 34 sanitary areas AQUACHILE 93 sea licenses and 17 sanitary areas
50% of sanitary areas of the Aysen Region
Sea licenses
Sanitary areas 12 /46
Sea water: Sea licenses Xth Region.
Sea licenses Xth Region
Sea licenses used during 2012
Sea licenses not used during 2012 13 /46
Sea water: Sea licenses XIth Region.
Sea licenses XIth Region
Sea licenses used during 2012
Sea licenses not used during 2012 14 /46
Tilapia Costa Rica & Panama: Large water volume and favorable climate. Geographical diversification in Tilapia production Costa Rica -Strategic access to large volumes of high-quality water
Guanacaste
-Optimal location for logistics
Costa Rica Bayano Lake
-21,000 tons WFE capacity
Panama
Panama -The Company has the only three tilapia farming licenses granted in the Bayano Lake -Potential to produce over 20,000 ton WFE
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AquaChile: Strong organic growth plan based on unique assets
Sea Water: High quality and diversified license portfolio Fresh Water: Flexibility and excess installed capacity Processing: Installed capacity to absorb growth Vertical integration throughout the value chain Global presence and reputation
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Fresh water: Flexibility and excess installed capacity.
Geographical diversification in fresh water.
23*
hatcheries from the IXth Region to the XIth Region, including 1 hatchery near Santiago.
13**
fresh water farming licenses in the Xth and XIth Regions for Sea Trout and Coho smoltification.
7
brackish water licenses in the XIth Region for Coho smoltification.
* Four of them are rented under long term contract ** Two of them are rented under long term contract 17 /46
Fresh water: Flexibility and excess installed capacity. AquaChile produces smolts not only to supply its own needs but also to eventually sell them to third parties.
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AquaChile: Strong organic growth plan based on unique assets
Sea Water: High quality and diversified license portfolio Fresh Water: Flexibility and excess installed capacity Processing: Installed capacity to absorb growth Vertical integration throughout the value chain Global presence and reputation
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Processing: Installed capacity to absorb growth. 7 plants with a total capacity of 194,000 WFE tons, including one of the largest plant in the World Current production capacity of AquaChile’s processing plants In thousands of WFE tons
Plant Type
Value Added
Whole Salmon
Whole Salmon
Value Added
Value Added
Value Added
Value Added
PAC-HACCP Certification
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Puerto Montt
Quellón
Dalcahue
Chonchi
Calbuco
Guanacaste
Panama
Location
Source: The Company
*Rented under long term contract
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Processing: Installed capacity to absorb growth. Chile
Costa Rica
Diversity of Salmon Products
Diversity of Tilapia Products
Whole
Trim D
HG
Trim C
Trim E
Portions
Whole
Fillets
Breaded Fillets 21 /46
AquaChile: Strong organic growth plan based on unique assets
Sea Water: High quality and diversified license portfolio Fresh Water: Flexibility and excess installed capacity Processing: Installed capacity to absorb growth Vertical integration throughout the value chain Global presence and reputation
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Vertical integration troughout the value chain. INTEGRATION
AquaChile is vertically integrated in the Salmon and Tilapia business. The Company adds value to all of its productive chain, from genetics up to commercialization.
SALMON AND SEA TROUT
FRESH WATER Eggs & Smolts
SEA WATER Farming
GENETICS
PROCESSING
COMMERCIALIZATION
PROCESSING
COMMERCIALIZATION
FEED
TILAPIA
FRY PRODUCTION
GENETICS
FARMING
FEED* FEED
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Genetics: 15 years of succesfull and proven genetic development. Aquainnovo: Created to be a world class center for genetic improvement in aquaculture Increase in harvest weight of the Pacific Salmon AquaChile 83%
In WFE kg
Universidad de Chile 15%
Δ+40%
Others 2%
Source: The Company
Reduction in the Tilapia’s on growing cycle
Improvement in Tilapia conversion factor of ACI Group
In number of days
Δ+36%
Δ+19%
Source: The Company
Source: The Company
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Genetics: 15 years of succesfull and proven genetic development.
Genetics in Salmon and Sea Trout
Genetics in Tilapia
25 /46
Fish feed plant: State of the art assets to feed our fish.
Joint venture with Biomar in Chile, one of the world’s leading suppliers of high performance fish feed.
126,000 tons of installed capacity.
Modular design allows the company to double its output capacity.
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AquaChile: Strong organic growth plan based on unique assets
Sea Water: High quality and diversified license portfolio Fresh Water: Flexibility and excess installed capacity Processing: Installed capacity to absorb growth Vertical integration throughout the value chain Global presence and reputation
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Commercialization: Global presence and reputation. AquaChile has over 400 clients in more than 50 countries in the five continents We have more than 19 years of experience in Asia and over 20 years in the fresh salmon market
Some 2011’s Figures
Destination of AquaChile’s main Salmon, Sea Trout and Tilapia sales In net tons
2,715,000
, 3.266
Boxes
315 32
234 85
, 4.947
42 42
, 5.596
143
145
, 23.276 21
, 3.690
810
3,171 Trucks
793
2.018 ,
848 , 1.113
Tilapia
21 78
, 1.859 36
1,813
127
Containers
23 2 803
Salmon
78
611
Cargo 767
1.681 ,
Operations Salmon and Sea Trout sales 2011 (net tons) Tilapia Sales 2011 (net tons)
Source: The Company
28 /46
AquaChile Inc: Servicing the United States from Miami.
Experienced customer service Reliability and commitment
We deliver!
The only Salmon & Tilapia company with operations inside Miami International Airport
Improved cold chain Less handling involved
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Our brands and
our main clients. Renowned Brands
Reputable Clients
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1
Overview
2
AquaChile
3
Financial Review
4
Sustainability and Stakeholders
5
New Developments
31
Recovery and
profitability.
Revenues
EBITDA Pre FV Adj.
In MUSD
In MUSD
Source: The Company
Sanitary Crisis: Caligus Legal change: and ISA Virus Industry Revival Source: The Company
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Recovery and
profitability.
Net Income
EBIT Pre FV Adj.
In MUSD
In MUSD
2010 IFRS
2011 IFRS
Source: The Company
Source: The Company
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Recovery and
profitability. Sales Volume, by specie
EBIT per kg Pre IFRS Adj.
In thousands of WFE tons
In USD per WFE kg
Source: The Company
EBITDA Pre IFRS Adj. In MUSD
Source: The Company
65%
Source: The Company
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Solid financial position.
Net Debt / EBITDA
PCGA
In times
Net Debt
IFRS
In MUSD
PCGA
IFRS
6.7 6.0
2.0
1.7
1.2
0.9
Source: The Company
Source: The Company
Restructured Financial Debt Maturity Total Restructured Debt: MUS$ 182
Source: The Company
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Financial
summary. 2011
2010 4Q10
2010
1Q11
2Q11
3Q11
4Q11
2011
∆QoQ
∆YoY
Sales
131,294
387,841
135,884
96,960
102,568
165,740
501,151
26%
29%
Operational cost (1)
-90,671
-309,524
-93,231
-80,235
-85,024
-126,364
-384,854
39%
24%
Operational margin
40,623
78,317
42,653
16,724
17,545
39,376
116,298
-3%
48%
Other cost and operating expenses (2)
-11,326
-20,593
-9,923
698
-5,297
-6,421
-20,944
-43%
2%
EBITDA pre FV adj.
29,297
57,724
32,730
17,421
12,248
32,955
95,355
12%
65%
Depreciation & Amortization
-7,939
-16,587
-4,890
-5,454
-4,105
-4,824
-19,273
-39%
16%
EBIT pre FV adj.
21,358
41,137
27,840
11,967
8,143
28,131
76,081
32%
85%
Net revenues from biological assets (3)
15,239
9,290
-9,948
4,211
-7,648
18.278
4,893
20%
-47%
EBIT post FV adj.
36,597
50,427
17,892
16,178
495
46,409
80,974
27%
61%
Other non operating items
17,116
7,667
-8,391
-6,402
-2,034
-9,271
-26,098
-154%
-440%
Financial expenses
-1,532
-11,521
-5,329
-6,115
-1,481
-1,047
-13,972
-32%
21%
USD Th
37
630
100
968
232
333
1,632
800%
159%
Other non operating items (4)
1,932
2,201
270
456
-33
-243
450
-113%
-80%
Income taxes
16,679
16,356
-3,432
-1,712
-751
-8,313
-14,209
-150%
-187%
Net income
53,713
58,093
9,501
9,776
-1,539
37,137
54,876
-31%
-6%
Total Assets
571,376
571,376
569,234
794,940
752,512
826,505
826,505
45%
45%
Total Liabilities
539,404
539,404
528,300
378,439
337,504
375,409
375,409
-30%
-30%
Total Equity
31,972
31,972
40,934
416,501
415,008
451,097
451,097
1311%
1311%
Financial income
Source: The Company
(1) “Cost of sales” deducted “Adjustment from depreciation and amortization expenses” (2) “Distribution costs” plus “Administration expenses” (3) “Fair Value of biological assets harvested and sold” plus “Fair Value of biological assets for the year” (See Note 11 to the Financial Statements. Biological Assets)
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1
Overview
2
AquaChile
3
Financial Review
4
Sustainability and Stakeholders
5
New Developments
Sustainability: New regulation with long term vision New regulation, more oversight and continuous improvement: Concrete results
Regulatory framework
Supervision and self-regulation
Results
Sernapesca workforce increase in X, XI and XII Regions
Mortality index
Fresh Water Smolts in lakes and estuaries Broodstock Biocontainment and bioexclusion Eggs
128
Sea Water All in/all out Fallowing Density Biocontainment and bioexclusion Macrozones
Farming Licences
Plants
Minimum Distance New concessions Time Transfer Loss
In %
88% 68
2009
2010
Source: Chile Transparente/Sernapesca
Harvest weight evolution
Source : Aquabench
Kg WFE
Self-regulation Active participation of industry actors in recent cases of sanitary code violations
Biocontainment and bioexclusion from harvesting until packing
Source: Aquabench
Source: The Company
Larger Size and Operational Scale
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Management and Board of Directors - Top management accumulate more than
300 years in the aquaculture industry
4 of the AquaChile’s founders plus other 3 directors with
- Board of Directors composed by
extensive experience in commodities production business, aquaculture and investments
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We are committed to our employees, our clients and the environment. -More than
4,800 employees in Chile, Costa Rica, Panama & United States OUR LABOR AND ENVIROMENTAL STANDARDS
-Benefits above legal requirements -On the job training -Costa Rica: ISO 14001:2004, OHSAS 18001:2007 and BAP for Global Aquaculture Alliance, the most demanding at present -Chile: Global GAP certification in progress -Social Responsibility Report available (www.aquachile.com/sustainability)
40 /46
We are committed to our employees, our clients and the environment.
-To produce quality, healthy and safe food
OUR CORPORATE SOCIAL RESPONSIBILITY PRINCIPLES
-To act in a proactive and respectful way towards the environment -To develop in a safe and healthy work environment -To benefit the communities and suppliers in the places where the company operates
41 /46
We are committed to our employees, our clients and the environment.
42 /46
1
Overview
2
AquaChile
3
Financial Review
4
Sustainability and Stakeholders
5
New Developments
43
Disease free recirculation hatchery: Chaicas.
44 /46
State of the art
research facility: Lenca.
45 /46
Harmoniously raised fish www.verlasso.com
Alejandro
Cristian
Verlasso salmon
Verlasso farms
46 /46
Fish feed in Costa Rica: association with Biomar.
47 /46
Pet food flavoring plant: association with SPF.
48 /46