EMPRESAS AQUACHILE S.A RESULTS FOR THIRD QUARTER 2013
November 2013
1.
About Empresas AquaChile S.A.
03
2.
Quarterly Summary
04
3.
Analysis of Results
06
4.
Balance Sheet Analysis
13
5.
Cash Flow Analysis
15
6.
Financial Covenants and Productivity Indicators
16
7.
Relevant Events
17
8.
Outlook
19
9.
Consolidated Balance Sheet
20
10.
Consolidated Income Statement
21
11.
Historical Harvests and Smolts Stocking
22
2
ABOUT EMPRESAS AQUACHILE S.A.
Aquachile S.A. is a Chilean company that produces food from aquaculture farmed species such as Atlantic Salmon, Pacific Salmon, Sea Trout and Tilapia. AquaChile has operations in Chile, Costa Rica, Panama and the United States, selling and commercializing their products around the world. The company is made up of a group of companies that strategically farm, produce and sell food. It gives employment to more than 5,300 people in Chile, the United States, Costa Rica and Panama and it is one of the main produces of Sea Trout and Pacific Salmon in the world, being also the main provider of fresh Tilapia to the United States. AquaChile is the main Salmon and Sea Trout producer in Chile with a market share of 10.4% in 2012 in terms of exported net volume (source: Infotrade). The Company has 151 aquaculture water licenses, which gives them a solid basis for growing and diversifying. The company exports their products to more than 230 customers in more than 30 countries. The company is also an important Tilapia producer in Costa Rica and it is starting to harvest in Panama, being one of the main fresh Tilapia provider in the United States with a 25% market share in 2012 (source: Urner Barry).
CONTACT EMPRESAS AQUACHILE S.A. Investor Relations investor.relations@aquachile.com Tel. (56- 65) 2433600 / 550 For more information, visit: www.aquachile.com
03
QUARTERLY SUMMARY
On September 30, 2013 AquaChile reported accumulated sales of US$ 535.5 million, this is higher than the US$ 353.4 million reported for the same period in 2012. This is mainly due to the increase of the valued sale of Atlantic Salmon (US$ 151 million) and of Pacific Salmon (US$ 37 million), which in part compensates the recognition of a drop in fish feed sales in the affiliate Alitec Pargua S.A.1 of US$ 42 million. On the other hand the EBITDA for September 30, 2013 was US$-34.7 million, which is less than the US+13.5 million reported for the same period of 2012. The reason for this is because the margins of the farmed species decreased due to a lower productive performance of Atlantic Salmon and Sea Trout farm sites that were harvested and then sold and also because the export prices for Pacific Salmon were lower in comparison to the prices seen during the first nine months of 2012. However, the export prices for Atlantic Salmon and Sea Trout were higher in comparison to the same period of the previous year. AquaChile has continued according to its plan of recovering production levels, especially in relation to Atlantic Salmon. At the same time, higher physical sales of all farmed species were higher during the first nine months in comparison to the same period of 2012. The consequence of this was a 52% increase in the consolidated valued sales in comparison to the first nine months of 2012 and 100% in comparison to the first quarter of the same year. Within this context, the export price scenario for the first nine months of this year have been favorable, showing a faster increase than what was expected, especially for Atlantic Salmon that saw a 33% increase in comparison to the same quarter of the previous year and a 22% increase in comparison to the same period of 2012, which particularly benefits the species that AquaChile has been putting more emphasis in recovering its production levels for 2013.
During this time, especially during the first quarter of this year, the fish biomass of Atlantic Salmon and of Sea Trout were affected by a higher presence of Caligus2 (sealice) in the industry and in the producing neighborhoods where AquaChile is raising its biomass. This caused higher treatment costs against this parasite; a higher feed conversion rate and a smaller growth in those farm sites that were more affected giving lower harvesting weights; a smaller dilution in the fixed costs, and sub-optimal trade for the mixed production. An improvement in production was observed for the third quarter as was a decrease in the costs of the raw material, since a large part of the fish biomass that had been affected by Caligus (sealice) were harvested during the first half of this year and a small number of them were harvested during the 3Q13. It is expected that from this moment onwards, fish weight will improve as will the harvesting quality which will optimize the commercial mix of the species that were affected by Caligus (sealice), that is to say Atlantic Salmon and Sea Trout. Furthermore, the biomass experienced better growth during the third quarter and a better feed conversion, slowly going back to historical levels. However, faced with a probable seasonal increase of Caligus during the Spring-Summer, the company decided, together with many other producers in the market, to adopt in collaboration the strategy that the Norwegian industry used for dealing with this parasite, which includes coordinated treatments in broad geographical areas, the coordinated rotation of the drugs that are used and improvements in applying these treatments. We are expecting that the scenario for international export prices for Salmon and Sea Trout to continue its upward trend, keeping in mind that the Chilean industry has moderated
1 At the end of 2012, accounting is done on the basis of proportional consolidation for this company, in accordance with IFRS Regulations, under which only 50% of the company’s sales are entered. 2 Caligus: is a crustacean parasite which latches on to and completes its life cycle on salmon. A high concentration of these parasites can adversely affect the salmon’s growth and disease immunity. Treatments exist to limit the level of infection in farming centers.
04
QUARTERLY SUMMARY
its fish stocking since it is expected that the salmon supply during 2013 and 2014 will grow significantly less than it did in 2012, more in line with demand which continues to be strong in all of the markets in which the company participates. It is important to note that during recent times the Chilean Salmon farming industry has been successfully recovering the production levels for Atlantic Salmon that existed before the ISA crisis. However, due to new regulations, fish stocking restrictions are much stricter because of the obligatory sanitary fallowing period, and even more so when the new density regulation is set in place. On the one hand, this will decrease Chile’s potential production capacity, but on the other hand it will increase the sustainability of the industry. Furthermore, producers and trade associations from the Chilean salmon industry are sitting down with the corresponding authorities to go over those measures or standards set that-although effective to confront the ISA virus crisis years ago-today, do not bring greater sanitary benefits and only serve to increase costs for the Chilean salmon farming industry. The Company’s consolidated sales for the 3Q13 were a total of US$ 191.4 million, which was a 100% increase in comparison to the reported sales for the 3Q12. The volume of physical sales for the 3Q13 were indeed higher for Atlantic Salmon (185%), Pacific Salmon (5627%) and Tilapia (21%), whereas Sea Trout had an 8% decrease in comparison to the same period the previous year. In reference to the sales price there was an increase in the sales price of Atlantic Salmon (33%), Pacific Salmon (17%) and Sea Trout (49%), whereas Tilapia had a 4% decrease in comparison to the same quarter of 2012. On the other hand, the revenues were less for fish feed sale in comparison to the same period the previous year. This is mainly associated to the proportional con-
solidation of the feed producer affiliate Alitec Pargua S.A. which reflects the joint agreements in accordance to what is established in the IFRS Standard. The consolidated EBITDA reached US$ -1.6 million during the 3Q13, which is a positive comparison to the US$ -11.7 million reported for the same period 2012 and to the US$ -11.9 million that were reported in the 2Q13. The explanation for this improvement seen during the same quarter 2012 was the improved margins of all the salmonid species associated to the average sales price increase of the same, which was compensated by the increase in the sales cost for Atlantic Salmon and Sea Trout. AquaChile reported a US$ -1.9 million loss during the 3Q13, which is a positive comparison to the US$ -10.0 million that was reported for the same period of 2012. The reason for this improvement was the margins of all the salmonid species in comparison to the same period the previous year which is associated to higher export prices, which is also recognized as a better result for the net fair value adjustment effect on the biomass. The company’s net financial debt totalled US$ 283.8 million at the close of the 3Q13, showing a US$ 35.9 million increase at the end of the 4Q12. The reason for this increase was that there were more financial liabilities which have strengthened the administration of the Company’s working capital allowing them to hold back the selling of the stock of the finished product thus optimizing export returns, taking advantage of the inventory availability and/or of the finished products to trade them better in the market.
05
ANALYSIS OF RESULTS
SUMMARY OF MAIN CONSOLIDATED FIGURES figures in thus$ SALES EBIT PRE FV ADJ.
3q13
3q12
∆qoq
191,393
95,743
100%
acum. 13 acum. 12 535,488
∆yoy
2012
353,437
52%
409,541
-7,950
-15,290
-48%
-54,877
1,136
-4932%
-20,687
EBITDA PRE FV ADJ. (2)
-1,566
-11,693
-87%
-34,690
13,470
-
-4,287
EBITDA PRE FV ADJ. MARGIN
-0.8%
-12.2%
-
-6.5%
3.8%
-
-1.0%
NET INCOME
-1,930
-9,998
-81%
-35,162
-25,731
37%
-43,156
SALMON AND SEA TROUT SALES - WFE TONS
(1)
27,226
12,837
112%
87,953
49,041
79%
64,934
EBIT / KG WFE SALMON AND SEA TROUT
-0.24
-1.13
-79%
-0.61
0.01
-
-0.30
TILAPIA SALES - WFE TONS
6,485
5,359
21%
19,185
16,335
17%
21,342
EBIT / KG WFE TILAPIA
-0.21
-0.15
42%
-0.08
0.04
-
-0.06
1 EBIT Pre FV Adj. (hereinafter, EBIT): Income from ordinary activities minus Cost of Sales (i.e. Gross Earnings pre Fair value), minus Administration Expenses minus Distribution Costs. All these figures are obtained directly from the company Income Statement. 2 EBITDA Pre FV Adj. (hereinafter, EBITDA): Income from ordinary activities minus Cost of Sales (i.e. Gross Earnings pre Fair value), minus Administration Expenses minus Distribution Costs plus Adjustment from Depreciation and Amortization Expenses. All these figures are obtained directly from the Income Statement and the note 16 (PP&E) from the company Financial Statements.
Source: AquaChile
The sales revenues for this quarter reached US$ 191.4 million, this is more than the US$ 95.7 million reported during the same period in 2012. The revenues for Atlantic Salmon increased by 185% (US$ 67 million), for Pacific Salmon by 6602% (US$ 20 million), for Sea Trout by 37% (US$ 10 million) and for Tilapia 16% (US$ 3 million). On the other hand, the company Alitec Pargua S.A., an affiliate dedicated to producing fish feed increased their Directors from 5 to 6 Directors at the end of 2012
leaving AquaChile as a 50% shareholder where now it does not have the majority of the Board of Directors, preparing themselves to have control when it comes to making decisions. In the accounting, according to the IFRS Standard, the best way to reflect joint agreements is a proportional consolidation. That means that only 50% of this company’s sales can be reported. So only a lower feed sale can be recognized in comparison to the same period of 2012.
06
ANALYSIS OF RESULTS
QUARTERLY SALES TREND (US$ MILLIONS)
166
158
193
191
2Q13
3Q13
152
136 97
103
100
96 56
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
QUARTERLY CONSOLIDATED SALES ANALYSIS (US$ MILLIONS) Sales 3Q12
Atlantic Salmon
Sea Trout
96
Tilapia
Fish Feed
20
13 59
Pacific Salmon
3
0 -3
-1
Other incomes
Sales 3Q13
8
191
-11
8
∆ Price
∆ Volume
07
ANALYSIS OF RESULTS
QUARTERLY EBITDA TREND (US$ MILLIONS)
33
33
25 17 12 0,3 -2 -12
-12 -18
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
-21
1Q13
2Q13
3Q13
QUARTERLY NET INCOME TREND (US$ MILLIONS) 37
10
10 2 -2
-2
-5 -10 -17
-17 -28
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
08
ANALYSIS OF RESULTS
The consolidated EBITDA pre Fair Value adjustments2(*) reached US$ -1.6 million during the third quarter of 2013, which is a positive comparison to the US$ -11.7 million from the same period last year and to the US$ -11.9 million for the second quarter of 2013. The reason for this observed improvement in comparison to the same quarter of 2012 is that the margins improved for all of the salmonid species that are associated to the increase of the average sales price, which was compensated by the increase of the sales cost for Atlantic Salmon and Sea Trout due to a higher fish feed price and to the higher levels of Caligus (sealice) in the fish biomass for these two species. This means higher treatment costs for this parasite; higher feed conversion rate and a smaller growth in those farm sites that were more affected by the presence of Caligus (sealice), meaning smaller harvesting weights, a smaller dilution of the fixed costs and a sub-optimal trade for the productive mix. At the same time, the improvement of the EBITDA that was observed during the second quarter of this year can be explained by the increase of the sales price as also the costs of raw material, which reflect a slow improvement in the company’s productivity indexes. Furthermore, and thanks to the strategy of slowing down the sales of the 2012/2013 season of Pacific Salmon, consistently better prices were obtained during the previous quarters making the EBIT pos-
itive by US$ 3.1 million for this quarter. With this, the EBITDA margin (which is EBITDA over common revenues) recorded for the 3Q13 is -0.8% in comparison to the -12.2% reported during the same period 2012. The company has recognized a profit for the third quarter 2013 due to the net effect of valuing the biomass at a fair value of US$ +8.2 million. This number is higher than the US$ 7.0 million loss reported during the 3Q12. The main reasons for this are: i) recognizing a higher cost of the harvested biomass during the third quarter 2013 due to the fair value effect of US$ +4.6 million (increase), a number which is higher than the increasedcost of US$ 2.7 million reported for the same period last year; and ii) recognizing a fair value of US$ +4.5 million for the fish that are being raised during the third quarter 2013 that is higher than the number reported during the third quarter 2012 of US$ -6.3 million. This is a consequence of the higher market prices for Atlantic Salmon and for Sea Trout (See Note 10 of the Consolidated Financial Statements: Biological Assets). Furthermore, the company has recognized a US$ 2.9 million profit during the 3Q13 as a result of applying the net value of the finished products, in comparison to the provision of US$ -0.3 million reported during the 3Q12.
2 (*): In order to measure the financial performance under IFRS, AquaChile used the EBIT pre Fair Value adjustments parameters (before adjusting the revalue of the fish biomass at fair value). The fair value adjustments of the fish biomass come from the IFRS regulation to value the biomass at a fair value. Changes in the price and composition of the biomass during the period can have an impact on its value. AquaChile reported its EBIT before the fair value adjustments to show the performance of its operations during the period. It is important to emphasize that the fish biomass that is being raised and is now at a commercial weight is valued at fair value in accordance to the IFRS and for the effect AquaChile considers the market price, which is obtained for the sales most recently made by the company for the previous month and/or conservatively the price that was observed in the market that could be applied to future sales. Furthermore, AquaChile considers the most basic product obtained in the processing plants for these estimates, that is to say, gutted fish with head on HON (Head On) for Atlantic salmon, and gutted fish without head HG (Headed and Gutted) for sea trout and Pacific salmon or Coho, without taking into consideration the prices of a mix of products that have a higher added value. It is important to point out that among the fish species that it farms and sells, the company has Pacific salmon, which is a highly seasonal species. For this reason, it normally stocks the farm sites between the months of November and March of each year and harvests between the months of October and February when the fish reach the optimal commercial weights. However, many times the fish that are being raised reach an average weight that is higher than 2.5 kg WFE at the end of December or the 4th quarter of each year, and in accordance to the company’s policies, are classified to be valued at fair value, generating an effect on the results due to the natural growth of the biomass.
09
ANALYSIS OF RESULTS
ANALYSIS OF PHYSICAL SALES, VALUED, AND MARGIN BY SEGMENT figures in thus$
3q13
3q12
∆ qoq acum 13 acum 12 ∆ yoy
2012
15,798
5,534
185%
36,943
10,976
237%
16,267
91,111
23,963
280%
200,147
48,909
309%
70,464
5.77
4.33
33%
5.42
4.46
22%
4.33
-7,406
-3,326
123%
-26,164
-6,653
293%
-11,512
ATLANTIC SALMON SALES VOLUME
TON WFE
SALES
MUS$
AVERAGE PRICE
US$ / KG WFE
EBIT
MUS$
EBIT / KG WFE
US$ / KG WFE
-0.47
-0.60
-22%
-0.71
-0.61
17%
-0.71
SALES VOLUME
TON WFE
6,622
7,219
-8%
24,136
23,333
3%
31,249
SALES
MUS$
36,422
26,572
37%
109,496
101,280
8%
127,863
AVERAGE PRICE
US$ / KG WFE
5.50
3.68
49%
4.54
4.34
5%
4.09
EBIT
MUS$
-2,277 -10,740
-79%
-29,905
-3,540
745%
-16,932
EBIT / KG WFE
US$ / KG WFE
-0.34
-1.49
-77%
-1.24
-0.15
717%
-0.54
TON WFE
4,806
84
5627%
26,873
14,733
82%
17,418
SALES
MUS$
19,942
298
6602%
95,869
59,291
62%
67,506
AVERAGE PRICE
US$ / KG WFE
4.15
3.55
17%
3.57
4.02
-11%
3.88
EBIT
MUS$
3,111
-424
-
2,658
10,710
-75%
9,117
EBIT / KG WFE
US$ / KG WFE
0.65
-5.06
-
0.10
0.73
-86%
0.52
21%
19,185
16,335
17%
21,342 62,172
SEA TROUT
PACIFIC SALMON SALES VOLUME
TILAPIA SALES VOLUME
TON WFE
6,485
5,359
SALES
MUS$
18,577
16,068
16%
55,572
47,958
16%
AVERAGE PRICE
US$ / KG WFE
2.86
3.00
-4%
2.90
2.94
-1%
2.91
EBIT
MUS$
-1,377
-800
72%
-1,465
619
-
-1,360
EBIT / KG WFE
US$ / KG WFE
-0.21
-0.15
42%
-0.08
0.04
-
-0.06
33,711
18,196
85%
107,138
65,376
64%
86,276
166,052 66,900
148%
461,084
257,439
79%
328,006
The Atlantic Salmon business for the 3Q13 increased its revenues by 280% (US$ 67.1 million) in comparison to the same period of 2012 due to a 185% increase in the sales volume (10,264 tons WFE increase) and a 33% increase in the average sales price. The EBIT Pre Fair Value Adjustment showed a US$ 7.4 million loss. The EBIT Pre Fair Value Adjustment / Kg WFE at unit level reached US$ -0.47 / Kg WFE showing an improvement in the average sales price. Also, an improvement was observed in relation to the US$ -0.78 /Kg WFE during the 2Q13. This is because the sales price improved as did the costs of the raw material showing a slow improvement of the company’s productivity indexes. Besides, the Ebit / Kg WFE of this species is influenced by implementing the project carried out by AquaChile together with the multinational DuPont® regarding the Verlasso® salmon. This project is still in the “market test” phase which means higher production costs, branding and marketing are needed to introduce this new product category, and this affects the average Ebit /kg WFE averaged for this segment. It is important to highlight that Verlasso®is the first and only farmed salmon in the world to recently receive the “Good Alternative” category from Monterey Bay Aquarium’s Seafood Watch, a program that helps consumers choose seafood products that cause less impact on the oceans and in turn contribute to being environmentally friendly. The Sea Trout business saw a 37% increase in its revenues (US$ 9.9 million) for the 3Q13 in comparison to the same period 2012 due to a 49% increase in the average sales price which was slightly compensated by the 8% decrease in the sales volume (597 tons WFE decrease). The EBIT Pre Fair Value Adjustment presented a US$ 2.3 million loss. The EBIT Pre Fair Value Adjustment / Kg WFE at unit level reached US$ -0.34 / Kg WFE showing a US$ -1.49 improvement in comparison to the same time last year. This is explained mainly by the higher average sales price. Also there was an improvement observed of the US$ -1.69 / Kg WFE of the 2Q13 explained by the higher sales price and also the costs of the raw material showing a slow improvement of the company’s productive indexes. The Pacific Salmon or the Coho Salmon business for the 3Q13 saw a 6602% increase in its revenues (US$ 19.6 million) in comparison to the same period of 2012 due to a 5,627% increase in the sales volume (that is a 4,722 tons WFE increase) and to a 17% increase in the average sales price. The EBIT Pre Fair Value Adjustment showed a US$ 3.1 million gain. The EBIT Pre Fair Value Adjustment / Kg WFE reached US$ +0.65 /Kg WFE at unit level (in comparison to the US$ -5.06 / Kg WFE the same period last year and the US$ +0.23 / Kg WFE of the 2Q13). The reason for this improvement in comparison to the 2Q13 is the higher average sales price thanks to the strategy of reducing sales of 2012/2013 season Pacific Salmon during low price periods, holding it back to sell it when the prices improve with the idea of achieving better profits. The Tilapia business saw a 16% increase in its revenues (US$ 2.5 million) in comparison to the same period 2012 which was stimulated by a 21% increase in the sales volume (1,125 ton WFE increase) which was partially compensated by a 4% decrease in the average sales price. The EBIT Pre Fair Value Adjustment showed a US$ 1.4 million loss. During 2013 AquaPanama started to show better costs in comparison to the same quarter 2012 due to an improvement in fish genetics. The Costa Rica production presented an increase in raw material costs due mainly to a higher fish feed price and also to the higher conversion factor associated with the rains that increased this year making the water murkier. The EBIT Pre Fair Value Adjustment / Kg WFE at unit level reached US$ -0.21 / Kg WFE (in comparison to the US$ -0.15 / KG WFE the same time the previous year).
TOTAL SALES VOLUME
TON WFE
SALES
MUS$
AVERAGE PRICE
US$ / KG WFE
EBIT
MUS$
EBIT / KG WFE
US$ / KG WFE
Source: AquaChile
3.68
34%
4.30
3.94
9%
3.80
-7,949 -15,290
4.93
-48%
-54,876
1,136
-
-20,687
-72%
-0.51
0.02
-
-0.24
-0.24
-0.84
10
ANÁLISIS DE RESULTADOS
CONSOLIDATED INCOME STATEMENT figures in thus$
3q13
3q12
∆qoq
SALES
191,393
95,743
100%
535,488
-184,697
-100,839
83%
6,695
-5,096
-
OPERATIONAL COST
(1)
OPERATIONAL MARGIN
acum. 13 acum. 12
∆yoy
2012
353,437
52%
409,541
-545,567
-320,648
70%
-388,094
-10,079
32,789
-
21,447
OTHER COST AND OPERATING EXPENSES (2)
-8,261
-6,597
25%
-24,611
-19,319
27%
-25,734
EBITDA PRE FV ADJ.
-1,566
-11,693
-87%
-34,690
13,470
-
-4,287
DEPRECIATION & AMORTIZATION
-6,384
-3,597
77%
-20,186
-12,334
64%
-16,401
EBIT PRE FV ADJ.
-7,950
-15,290
-48%
-54,877
1,136
-
-20,687
8,246
-7,037
-
22,976
-40,519
-
-44,292
296
-22,327
-
-31,900
-39,384
-19%
-64,980
-2,201
-2,247
-2%
-6,590
-6,246
6%
-8,488
FINANCIAL INCOME
96
-99
-
427
981
-56%
2,548
OTHER NON OPERATING ITEMS (4)
214
-11
-
-4,846
160
-
2,916
-335
14,684
-
7,746
18,757
-59%
24,848
-1,930
-9,998
-81%
-35,162
-25,731
37%
-43,156
0 NET REVENUES FROM BIOLOGICAL ASSETS (3) EBIT POST FV ADJ. FINANCIAL EXPENSES
INCOME TAXES NET INCOME
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) 4 “Other income, by function” plus “Other expenses, by function” plus “Exchange rate differences” plus “Results from adjustment units” Note: All the figures are obtained directly from the Income Statement and the note 16 (PP&E) from the company Financial Statements. Source: AquaChile
11
ANALYSIS OF RESULTS
Operational costs totalled US$ -184.7 million during the quarter, 83% more than the 3Q12, which is mainly explained by an increase in the sales volumes of Atlantic Salmon, Pacific Salmon and Tilapia. Furthermore, if we compare the operational costs (measured as a percentage of costs), they reached 95.6% of revenues, 8.8 percentage points lower than what was reported for the 3Q12.
NET EFFECT OF THE FAIR VALUE ADJUSTMENT ON THE BIOMASS Fair Value biological assets of the year: The effect of the natural growth of the fish biomass that is being raised expressed by their reasonable value (sales price minus the estimated costs at the sales point) is recognized in accordance to the assessment done at each farm site and it is based on the existing fish biomass at the close of each month. The details include the total number of fish that are being raised, an estimated average weight and the cost of the fish biomass. For calculating, the value is estimated by using the average weight of the current biomass, multiplied by the value per kilogram observed in the market price. The market price is obtained from an international price index or otherwise from sales most recently closed near the close of the financial statements. The resulting value, whether it be more or less, is reported in the Income Statement under the “Fair Value biological assets for the year” concept. This concept showed a US$ 3.7 million profit during the 3Q13, which can be positively compared with the US$ -9.7 million loss reported for the 3Q12, which is broken down the following way: i) US$ -3.7 million (US$ -3.9 million during the 3Q12) correspond to the “Revenues for the revaluation of the harvested and sold biomass”; ii) US$ 4.5 million (US$ -6.3 million during the 3Q12) which corresponds to the “Adjustment for the revaluation of the biomass that is being raised”; iii) US$ 0 million (US$ +0.7 million during the 3Q12) correspond-
ing to the deterioration3 test that was carried out on the biomass that was being raised and that should be harvested and not be susceptible to the fair value; and finally iv) US$ +2.9 million (US$ -0.3 million during the 3Q12) which correspond to the smaller net value gained for finished products. The higher cost of the biomass that was harvested and sold resulting from this revaluation was reported in the Income Statement under the “Fair Value biological assets harvested and sold” concept which reached a US$ +4.6 million profit (US$ +2.7 million in the 3Q12) during the 3Q13. The net value for both revaluation effects are included in the “Net effect of the fair value adjustment to the biomass” line which reached US$ +8.2 million in the 3Q13. This number is higher than the US$ -7.0 million reported for the 3Q12. (For more details see Note 10 of the Financial Statements: Biological Assets) Non-operational results for the quarter reported a US$ 1.9 million loss and in comparison to the US$ 2.4 million loss reported for the 3Q12. Expense for Income Taxes present a US$ -0.3 million provision in comparison to the US$ 14.7 million during the same period last year. This is explained mainly by the effect of the 17% to 20% exchange rate on taxes. This resulted in recognizing a higher profit for the differed taxes in September 2012. The company presented a US$ 1.9 million loss during the 3Q13. This number can be positively compared to the US$ 10.0 million loss reported during the 3Q12. The reason for this improvement was the increase in the margin of all the salmonid species in comparison to the same period of last year. This has to do with higher exporting prices, which has also led to recognizing a better result for the net effect of the fair value adjustment on the biomass.
3 In the face of possibly adverse situations that could affect the salmon market and/or the sanitary condition of the fish, the company carries out a deterioration test on the biomass being raised, projected at harvest time, and whose net accumulated effect is reflected in the results.
12
BALANCE SHEET ANALYSIS
CONSOLIDATED BALANCE SHEET 2012
2013
1q12
2q12
3q12
4q12
CURRENT ASSETS
445,298
410,090
470,823
436,107
NON CURRENT ASSETS
382,420
402,711
442,510
395,719
TOTAL ASSETS
827,718
812,801
913,333
831,826
CURRENT LIABILITIES
146,755
125,350
175,516
figures in thus$
1q13
2q13
3q13
486,530
440,131
420,735
-3.5%
396,059
409,874
410,542
3.7%
882,589
850,006
831,277
-0.1%
176,554
200,549
214,043
195,261
10.6%
∆3q13 o 4q12
228,153
252,356
312,720
258,739
290,840
272,680
274,664
6.2%
TOTAL LIABILITIES
374,908
377,706
488,237
435,293
491,389
486,723
469,925
8.0%
EQUITY
431,228
414,012
404,099
387,654
382,443
354,309
352,709
-9.0%
21,582
21,083
20,998
8,879
8,757
8,973
8,643
-2.7%
827,718
812,801
913,333
831,826
882,589
850,007
831,277
-0.1%
NON CURRENT LIABILITIES
MINORITY INTEREST
TOTAL EQUITY AND LIABILITIES Source: AquaChile
Current Assets showed a 3.5% decrease (US$ -15.4 million) in comparison to the numbers seen in the 4Q12. This is mainly explained by the US$ 5.8 million decrease in the “Trade Receivables and other accounts receivable, bank accounts” account and also because of the US$ 4.7 million decrease in the “Company’s Accounts and Inventory for the Biological Assets”. Non-Current Assets showed a 3.7% increase (US$ 14.8 million) in comparison to the numbers observed for the 4Q12.This is mainly explained by: i) an increase in Properties, plants and equipment for US$ +2.1 million, this increase is associated to the investments made during this period; ii) an increase in capital gain of US$ 4.3 million after acquiring 35.4% of the affiliate Hatchery Aquasan S.A. that was in the hands of a third-party; and iii) an increase in the assets for deferred taxes of US$ 6.2 million. Current Liabilities showed a 10.6% increase (US$ 18.7 million) in comparison to the numbers observed for the
4Q12. This is explained by: i) a US$ 22.3 million increase in other current financial liabilities mainly due to reclassifying the debt write-offs for the next twelve months from the long to the short term; and ii) a US$ 13.3 million increase in the accounts payable to related companies. All of this has been compensated by a US$ 19.5 million decrease in the Trade accounts payable and other accounts payable. Current Liabilities showed a 6.2% increase (US$ 15.9 million) in comparison to the numbers observed for the 4Q12. This is mainly explained by the US$ 14.7 million increase in the Other non-current financial liabilities. Total Equity (including the non-controlling interests) of the company, reported a US$ 35.2 million decrease in comparison to December 2012, which is mainly explained by the US$ 35.2 million loss observed during the first nine months of 2013. 13
BALANCE SHEET ANALYSIS
FINANCIAL DEBT 2012
2013
figures in thus$
1q12
2q12
3q12
4q12
1q13
2q13
3q13
(I) OTHERS FINANTIAL LIABITIES CURRENT
13,197
11,799
12,820
9,111
11,259
25,253
31,409
(II) OTHERS FINANTIAL LIABITIES NON CURRENT
185,469
198,773
251,882
251,705
281,356
266,039
266,446
5.7%
TOTAL INTEREST BEARING DEBT (I) + (II)
198,666
210,572
264,702
260,816
292,615
291,293
297,854
11.7%
CASH AND CASH EQUIVALENTS
104,305
64,066
62,408
12,922
37,185
11,201
14,026
-13.3%
NET INTEREST BEARING DEBT
94,361
146,507
202,295
247,894
255,430
280,091
283,828
13.0%
∆3q13 o 4q12
177.2%
Source: AquaChile
On the other hand, the Net Financial debt of AquaChile reached US$ 283.8 million, showing a US$ 35.9 million increase in comparison to the close of the 4Q12. The reason for this increase was the higher number of financial liabilities which have strengthened the administration
of the company’s working capital, allowing the company to hold back on the sale of the finished product to optimize export returns, taking advantage of the availability of the inventory and/or finished products to trade them better in the market.
14
CASH FLOW ANALYSIS
CONSOLIDATED CASH FLOW
figures in thus$ NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES NET CASH FLOWS FROM (USED IN) INVESTMENT ACTIVITIES
acum. 2013
acum. 2012
2012
1,665
-49,639
-74,002
-29,743
-60,924
-76,472
29,605
59,541
50,146
NET INCREASE (DECREASE) OF CASH AND CASH EQUIVALENTS
1,797
-51,022
-100,975
CASH AND CASH EQUIVALENT AT THE START OF THE PERIOD
12,922
113,897
113,897
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD
14,026
62,408
12,922
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
Source: AquaChile
The characteristics of the main components of the consolidated Cash flow on September 30, 2012 in comparison to September 30, 2012 were the following: On September 30, 2013 the company showed a total net cash flow of US$ +1.8 million. During the same period of the previous year the cash flow was US$ -51.0 million.
The investment activity meant the expenditure of US$ -29.7 million in September 2013. During the same period the previous year the expenditure was US$ -60.9 million. The financing activities generated a cash flow of US$ +29.6 million in September 2013.
The operational activities at September 30, 2013 generated a cash flow of US$ +1.7 million, this is higher than the US$ -49.6 million reported for the same period in 2012.
15
FINANCIAL COVENANTS AND PRODUCTIVITY INDICATORS
FINANCIAL COVENANTS The company’s contracts for its financial liabilities consider the financial covenants calculated over the Consolidated Financial Statements of AquaChile Company S.A. on December 31, 2011 and on March 31, June 30, September 30 and December 31 of the following years and they refer to keeping the net financial leverage to the maximum, and the coverage of the net financial expenses to the minimum, the net financial debt to EBITDA ratio to the maximum.
Nonetheless, and given the low price scenario that the salmon industry is undergoing, the company has agreed with their creditor banks to suspend the measure of these covenants that include the EBITDA in their calculations including up to December 2013, and the net financial leverage including up to September 2013.
PRODUCTIVE INDICATORS figures in thus$
TONS WFE
SALMON AND SEA TROUT HARVEST HARVESTED FISH FARMS OR FISH FARMS THAT ARE BEING HARVESTED SALMON AND SEA TROUT HARVEST / Harvested fish farms or fish farms that are being harvested
3q13
3q12 acum.2013
21,041
14,192
71,678
2012 84,810
#
16.0
10.0
39.0
39.0
TONS WFE
1,315
1,419
1,838
2,175
43
54
43
47
TONS WFE
489
263
1,667
1,804
ATLANTIC SALMON
KG / M3
5.40
4.60
5.40
5.10
PACIFIC SALMON
KG / M3
6.10
7.10
6.10
11.10
SEA TROUT
KG / M3
4.50
4.60
4.50
5.00
ATLANTIC SALMON
%
85%
81%
83%
86%
PACIFIC SALMON
%
---
---
84%
93%
SEA TROUT
%
76%
68%
80%
80%
USED FISH FARMS* SALMON AND SEA TROUT HARVEST / USED FISH FARMS*
#
FARMING DENSITY**
SURVIVAL CLOSED GROUP***
* Corresponds to fish farms that were in use at the end of the analyzed period. ** Farming density for sea licenses with farming at sea. *** Survival rate of the farmed fish groups closed. Source: AquaChile
The company presents a Salmon and Sea Trout harvest (in tons WFE / harvested farm sites or in harvest) during the period of September 30, 2013 ratio of 1,838 tons WFE. The farming densities on September 30, 2013 in the on-growing aquaculture sea licenses per species are the following: i) Atlantic Salmon: 5.4 Kg / m3, ii) Pacific Salmon: 6.1 Kg / m3, and iii) Sea Trout: 4.5 Kg / m3. On the other hand, the survival rates observed in the
groups that were closed on September 30, 2103 were the following: i) Atlantic Salmon: 83%; ii) Pacific Salmon: 84%; and iii) Sea Trout: 75%. It must be noted that the survival of these species was influenced by culling, a procedure that was completed during 2012 as well as the mortalities of Atlantic Salmon due to low oxygen during 2013. Without considering these effects, the survival rates would have been the following: i) Atlantic Salmon: 85%; ii) Pacific Salmon: 96%; and iii) Sea Trout: 80%. 16
RELEVANT EVENTS
RELEVANT EVENTS The Board of Directors’ Meeting was held on January 31, 2013 where they agreed to convene an Extraordinary Shareholders’ Meeting on February 26, 2013 to discuss and talk about increasing the capital. The Extraordinary Shareholders’ Meeting was held on February 26, 2013 where the following agreements were adopted: 1. To recognize an increase in the social capital of US$ 286,481,801.81 which corresponds to the biggest value obtained in placing the shares according to what is stated in Article 26 of Law N° 18.046. 2. To increase the social capital by USD 120,000,000, that is to say, from the amount of US$ 523,062,949.81, divided into 1,200,000,000 common shares, nominative and without par value to the amount of US$ 643,062,949.81 divided into 1,350,000,000 common shares, nominative and without par value by the issuance of 150,000,000 common shares, nominative and without par value which should be completely subscribed and paid for in cash or with other goods during the three year time limit starting from the date of the Meeting. 3. To grant broad powers to the Company’s Board of Directors so that they can issue all of the 150,000,000 shares referred to as an increase in capital and also to
agree on the issuing terms and to proceed with placing them in one or more opportunities. This process should begin within the 180 day time limit starting from the present date being able to freely fix the final price while placing them whether this be higher or lower than the referential price of $363 informed during the Extraordinary Shareholders’ Meeting where they could use the Auction of the Book Trading mechanism according to what is written in Section 2.4 of the Operating Handbook of the Stock Exchange in Santiago. 4. To offer the new issued paid shares with preference to each of the company’s shareholders for a period of 30 days so that they can subscribe to the new shares that correspond to them in pro rata of their shareholding up to the fifth working day before the starting date of right of first refusal in subscribing to these shares. 5. To modify the company’s statutes in reference to changing the articles in regards to the capital due to the agreed increase. 6. Empower the Board of Directors with the possibility to delegate to the General Manager or his representatives to materially issue the newly issued shares and to request them to be inscribed in the Securities Record of the Securities and Insurance Commission and any other necessary powers to materialize the emission and issuing of the shares.
17
RELEVANT EVENTS
On March 21, 2013 there was a Board of Directors meeting where they agreed to convene an Ordinary Shareholders’ Meeting on April 18, 2013. The Ordinary Shareholders’ Meeting was held on April 18, 2013 where the following agreements were adopted: To approve the Annual Report, the Balance, the Financial Statements and the report from the External Auditing Company. All of these are in reference to the close of the year on December 31, 2012. The salary for the members of the Directors’ Committee was fixed as was the budget for the Directors’ Committee for 2013. Pricewaterhouse Coopers was designated as the firm of independent external auditors for examining the accounting, inventory, balance and the financial statements for the year 2013. The Mostrador newspaper was designated for publishing all the company’s publications. An Extraordinary Board of Directors’ Meeting was held on July 25, 2013 where the following agreements were adopted: i) Request the inscription of the 150,000,000 paid common shares, nominative and without par value of the Companies AquaChile S.A. in the Securities Record of the Securities and Insurance Commission which correspond to the totality of the shares that the Extraordinary Shareholders’ Meeting agreed to issue that are to be paid in cash and to also materialize all of the necessary measures in this regard; and ii) To offer preferably all of the issued shares to the shareholders of Companies AquaChile S.A. that have been inscribed in the Share Registry on the fifth working day before the publication date regarding the beginning of the preference option period for a 30 day time limit starting from the date of the preference option period and to the pro rata of their shareholding.
The shares that will be offered during the 30 days of the preference option period will have the same price (henceforth “Placement Price”). The Placement Price of the shares will be freely decided on by the Board of Directors. They could use the Auction of the Book Trading mechanism according to what is written in Section 2.4.A of the Operating Handbook of the Stock Exchange in Santiago, or the “Handbook”, considering the demand shown by the investors. On 10 September letter n° 20366/2013 was received from the Securities and Insurance Commission, which communicated the following points in summary: i) Since more than 180 days had passed since the Shareholders’ Meeting which allowed the Board of Directors to set the share price, it is not possible to proceed with registering the shares as requested by the company until there is a further Shareholders’ Meeting, to set the share price or to assign that task to the Board of Directors, ii) If they were to use the “Trading Book Auction”mechanism, in order to set the share price, the Commission advises that “it must enclose the documentation for one or more shareholders to expressly and completely show a commitment to waiver, so that they might effectively reconcile the stock exchange requirements with those of the price for exercising preferential option”.
18
OUTLOOK
HARVEST VOLUME INCREASE PROJECTED FOR THE 4Q13 - 2% reduction in total harvest in comparison to the same period the previous year - 1% reduction in Salmon and Sea Trout harvests in comparison to the same period the previous year - 4% reduction in Tilapia harvest in comparison to the same period the previous year Projections for the harvesting plans for the fourth quarter 2013 show 32,280 tons WFE of Salmon and Sea Trout and 4,791 tons WFE of Tilapia.
HISTORICAL AND PROJECTED HARVESTS 2010
2011
2013
2012
2010
2011
1q12
2q12
3q12
4q12
2012
1q13
2q13
3q13
4q13
Real
Real
Real
Real
Real
Real
Real
Real
Real
Real
Proyected
720
15,224
2,181
3,873
6,120
4,959
17,132
7,527
16,529
15,249
13,857
179%
TROUT
28,978
26,458
10,367
7,661
7,424
7,652
33,104
11,876
5,298
5,780
5,053
-34%
PACIFIC SALMON
20,574
25,578
13,801
0
648
20,124
34,574
9,407
0
12
13,370
-34%
TOTAL SALMONIDS
50,272
67,260
26,350
11,534
14,192
32,735
84,810
28,810
21,827
21,041
32,280
-1%
TILAPIA COSTA RICA & PANAMÁ
18,841
17,232
5,368
5,607
5,359
5,007
21,341
6,074
6,627
6,485
4,791
-4%
TOTAL SALMONIDS AND TILAPIA
69,113
84,492
31,718
17,141
19,551
37,742
106,151
34,884
28,454
27,525
37,071
-2%
WFE TONS ATLANTIC SALMON
∆qoq 4q13P/4q12
Source: AquaChile
AquaChile does not have the policy of publicly making projections of their results or of the variables that can significantly influence them. Nonetheless, we expect that the international exporting prices of Salmon and
Sea Trout to remain the same or continue their upward trend keeping in mind that the Chilean industry has moderated the stocking of its fish and that the supply of Salmon for 2013 and 2014 will grow at a much slower rate than it did in 2012 and more in line with the growth of demand. 19
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET 2011 figures in thus$ CURRENT ASSETS CASH AND CASH EQUIVALENTS OTHER FINANCIAL ASSETS - CURRENT OTHER NON FINANCIAL ASSETS - CURRENT ACCOUNTS RECEIVABLES - CURRENT ACCOUNTS RECEIVABLESWITH RELATED COMPANIES - CURRENT BIOLOGICAL ASSETS - CURRENT - INVENTORY
2012
2013
1q11
2q11
3q11
4q11
1q12
2q12
3q12
4q12
1q13
2q13
2q13
270,584
458,469
392,283
437,132
445,298
410,090
470,823
436,107
486,530
440,131
420,735
∆ 3q13 o 4q12
63,609
177,559
131,661
113,897
104,305
64,066
62,408
12,922
37,185
11,201
14,026
9%
0
0
0
99
999
516
199
1,165
0
0
0
-100% -45%
-4%
2,683
2,689
4,175
2,693
2,652
4,666
4,456
4,428
4,459
2,867
2,455
63,453
102,609
68,651
96,444
104,811
77,361
92,698
85,338
82,551
95,977
79,577
-7%
1
66
457
6,603
5,823
6,331
7,913
8,951
8,018
8,697
6,925
-23%
138,121
172,643
184,224
213,152
221,382
256,499
301,527
316,452
347,044
316,223
311,728
-1%
TAX ASSETS - CURRENT
2,717
2,903
3,115
4,244
5,325
651
1,622
6,851
7,273
5,166
6,024
-12%
NON CURRENT ASSETS
298,650
336,471
360,229
341,546
382,420
402,711
442,510
395,719
396,059
409,874
410,542
4%
96
10,694
11,994
10,694
10,694
10,440
10,289
11,378
11,378
11,378
11,378
0%
0
492
1,240
1,329
1,261
1,229
1,256
1,190
1,117
1,052
1,071
-10%
OTHER FINANCIAL ASSETS - NON CURRENT OTHER NON FINANCIAL ASSETS - NON CURRENT DOCUMENTS RECEIVABLES - NON CURRENT
650
650
650
150
150
150
150
150
150
150
150
0%
ACCOUNTS RECEIVABLES WITH RELATED COMPANIES - NON CURRENT
500
500
500
1,580
1,580
1,580
1,794
1,883
1,972
2,018
2,105
12% 4%
INVESTMENTS USING PARTICIPATION METHOD
0
3,000
3,585
4,198
4,179
4,938
4,187
3,595
3,482
3,727
3,737
INTANGIBLE ASSETS
35,633
35,510
35,396
37,326
38,250
37,052
37,167
37,087
37,479
37,652
37,712
2%
GOODWILL
51,448
51,448
51,448
51,448
51,448
51,448
53,247
54,989
59,349
59,423
59,314
8%
PROPERTIES, PLANTS & EQUIPMENTS
139,807
141,434
144,573
166,287
173,749
186,115
200,277
200,229
201,630
204,053
202,376
1%
BIOLOGICAL ASSETS - NON CURRENT
11,842
15,859
29,233
33,145
27,192
26,789
27,533
27,174
23,395
27,062
28,409
5% 11%
ASSETS BY DEFERRED TAX TOTAL ASSETS CURRENT LIABILITIES OTHER FINANCIAL LIABILITIES, CURRENT ACCOUNTS PAYABLE - CURRENT ACCOUNTS PAYABLES WITH RELATED COMPANIES - CURRENT LIABILITIES FOR CURRENT TAXES PROVISIONS FOR EMPLOEYEE BENEFITS - CURRENT
58,674
76,884
81,610
35,389
73,917
82,970
106,610
58,044
56,107
63,359
64,290
569,234
794,940
752,512
778,678
827,718
812,801
913,333
831,826
882,589
850,005
831,277
0%
93,062
156,437
103,344
130,969
146,755
125,350
175,516
176,554
200,549
214,043
195,261
11%
5,856
14,444
8,554
12,009
13,197
11,799
12,820
9,111
11,259
25,253
31,409
245%
80,268
136,357
88,893
111,018
122,178
104,776
150,259
154,237
172,493
159,021
134,733
-13%
654
1,948
3,014
2,203
3,190
6,169
9,106
10,437
13,943
25,551
23,714
127%
5,145
2,640
1,751
3,372
5,536
684
1,006
314
189
11
0
-100%
0
0
0
16
373
387
473
226
469
518
592
163%
1,139
1,048
1,132
2,351
2,281
1,535
1,852
2,229
2,196
3,689
4,813
116%
NON CURRENT LIABILITIES
435,238
222,002
234,160
196,612
228,153
252,356
312,720
258,739
290,840
272,680
274,664
6%
OTHER FINANCIAL LIABILITIES, NON CURRENT
409,499
176,611
185,319
184,648
185,469
198,773
251,882
251,705
281,356
266,039
266,446
6%
OTHER ACCOUNTS PAYABLE - NON CURRENT
2,880
2,950
3,499
2,735
2,879
2,779
1,034
941
1,151
1,020
1,018
8%
31
100
62
0
0
0
0
0
0
0
0
-
22,828
42,341
45,280
9,229
39,805
50,804
59,804
6,093
8,332
5,621
7,200
18%
OTHER NON FINANCIAL LIABILITIES - CURRENT
OTHER PROVISIONS - NON CURRENT LIABILITIES BY DEFERRED TAX TOTAL LIABILITIES EQUITY MINORITY INTEREST TOTAL EQUITY AND LIABILITIES Source: AquaChile
528,300
378,439
337,504
327,581
374,908
377,706
488,236
435,293
491,389
486,723
469,925
8%
20,228
395,689
394,359
429,713
431,228
414,012
404,099
387,654
382,443
354,309
352,709
-9%
20,706
20,812
20,649
21,384
21,582
21,083
20,998
8,879
8,757
8,973
8,643
-3%
569,234
794,940
752,512
778,678
827,718
812,801
913,333
831,826
882,589
850,005
831,277
0%
20
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED INCOME STATEMENT 2011
2012
2013
1q11
2q11
3q11
4q11
1q12
2q12
3q12
4q12
1q13
2q13
3q13
∆ qoq
SALES
135,884
96,959
102,569
165,740
157,855
99,839
95,743
56,101
151,563
192,532
191,393
100%
OPERATIONAL COST (1)
-98,739
-74,727
-85,024
-126,364
-126,938
-92,874
-100,839
-67,443
-164,948
-195,922
-184,697
83%
37,145
22,232
17,545
39,376
30,917
6,966
-5,096
-11,342
-13,385
-3,389
6,695
-
OTHER COST AND OPERATING EXPENSES (2)
-4,415
-4,810
-5,297
-6,421
-6,048
-6,674
-6,597
-6,415
-7,853
-8,497
-8,261
25%
EBITDA PRE FV ADJ.
32,730
17,422
12,248
32,955
24,870
292
-11,693
-17,757
-21,238
-11,886
-1,566
-87%
DEPRECIATION & AMORTIZATION
-4,890
-5,454
-4,105
-4,824
-4,811
-3,927
-3,597
-4,066
-5,927
-7,875
-6,384
77%
EBIT PRE FV ADJ.
27,840
11,968
8,143
28,131
20,060
-3,635
-15,290
-21,823
-27,166
-19,761
-7,950
-48%
NET REVENUES FROM BIOLOGICAL ASSETS (3)
-9,948
4,211
-7,648
18,278
-22,899
-10,582
-7,037
-3,774
25,540
-10,810
8,246
-217%
EBIT POST FV ADJ.
17,892
16,179
495
46,409
-2,840
-14,217
-22,327
-25,597
-1,625
-30,571
296
-101%
FINANCIAL EXPENSES
figures in thus$
OPERATIONAL MARGIN
-5,329
-6,115
-1,481
-1,047
-2,050
-1,949
-2,247
-2,243
-2,065
-2,324
-2,201
-2%
FINANCIAL INCOME
100
968
232
333
1,208
-132
-99
1,568
210
121
96
-
OTHER NON OPERATING ITEMS (4)
270
456
-33
-243
-582
755
-11
2,756
-226
-4,832
214
-
-3,432
-1,712
-752
-8,313
5,979
-1,906
14,684
6,091
-1,602
9,683
-335
-
9,501
9,776
-1,540
37,137
1,714
-17,448
-9,998
-17,424
-5,308
-27,924
-1,930
-81%
INCOME TAXES NET INCOME
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) 4 “Other income, by function” plus “Other expenses, by function” plus “Exchange rate differences” plus “Results from adjustment units” Note: All the figures are obtained directly from the Income Statement and the note 16 (PP&E) from the company Financial Statements. Source: AquaChile
21
HISTORICAL HARVESTS AND SMOLTS STOCKING
HISTORICAL HARVESTS
WFE TONS ATLANTIC SALMON TROUT
2010
2011
2010
2011
real
real
2012 1q12
2q12
real
real
2013
3q12
4q12
real
real
2012
real
1q13
2q13
3q13
real
real
real
∆ qoq
2013/2012
720
15,224
2,181
3,873
6,120
4,959
17,132
7,527
16,529
15,249
149%
28,978
26,458
10,367
7,661
7,424
7,652
33,104
11,876
5,298
5,780
-22%
PACIFIC SALMON
20,574
25,578
13,801
0
648
20,124
34,574
9,407
0
12
-
TOTAL SALMONIDS
50,272
67,260
26,350
11,534
14,192
32,735
84,810
28,810
21,827
21,041
48%
TILAPIA COSTA RICA & PANAMA
18,841
17,232
5,368
5,607
5,359
5,007
21,341
6,074
6,627
6,485
21%
TOTAL SALMONIDS AND TILAPIA
69,113
84,492
31,718
17,141
19,551
37,742
106,151
34,884
28,454
27,525
41%
3q12
4q12
2012
real
2012/2011 149%
Source: AquaChile
HISTORICAL SMOLTS STOCKING 2010
2011
2010
real
2011
real
1q12
2q12
ATLANTIC SALMON
3,145
10,647
5,668
2,392
4,174
3,665
15,899
SEA TROUT
9,474
16,675
4,456
4,481
2,770
2,789
14,495
87%
PACIFIC SALMON
8,843
10,519
8,576
1,438
0
0
10,014
95%
21,462
37,842
18,699
8,311
6,943
6,454
40,408
107%
THOUSANDS SMOLTS
TOTAL SALMONIDS
2012 real
real
real
real
∆ yoy
Source: AquaChile
22
NOTE ON FORWARD-LOOKING STATEMENTS
This report includes forward-looking statements. These may include words like “anticipates”, “estimates”, “expects”, “projects”, “intends”, “plans”, “believes” or other comparable expressions. Forward-looking statements do not represent past events, including statements on the beliefs and expectations of the company. These statements are based on current plans, estimates and projections, and therefore cannot be overrated. Forward-looking statements entail certain risks and uncertainties. The company notes that a significant number of factors could result in current results to differ materially from those contained in any forward-looking statement. These factors and uncertainties include in particular those described in the document that the company submitted to the Chilean Securities and Insurance Commission (SVS), section on Risk Factors. Forward-looking statements are related only to the date when they are made and the company assumes no obligation to publicly update any such statements in the presence of new information, future events or otherwise. This document purports to deliver general information on Empresas AquaChile S.A. Under no circumstance does it constitute an exhaustive analysis of the financial, productive, commercial and health situation of the company, and therefore any consideration on the advisability of acquiring or selling securities of the company would require the interested party to conduct an independent analysis. In accordance with applicable standards, Empresas AquaChile S.A. has sent its financial statements and notes to the Securities and Insurance Commission, which are available for consultation and analysis on its webpage at www.svs.cl and also at www.aquachile.com.
23