EMPRESAS AQUACHILE S.A RESULTS FOR 4TH QUARTER 2013
March 2014
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.
Empresas AquaChile 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 marketing their products around the world. The company is made up of a group of companies that strategically farm, produce and commercialize food. It gives employment to more than 5,900 people in Chile, the United States, Costa Rica and Panama and it is one of the main producers of Sea trout and Pacific salmon in the world, being 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 12.2% in 2013 in terms of exported net volume (source: SalmonChile). The Company has 151 aquaculture water licenses, giving them a solid base for growing and diversifying. The company exports their products to more than 335 customers in more than 34 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 26% market share in 2013 (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
Total sales of US$ 202.4 million, 261% higher than reported sales for the fourth quarter 2012 and 6% higher than reported sales for the 3Q13. Physical sales of 28,228 tons WFE of Salmon, 78% higher than physical sales for the same period of the previous year. EBITDA of US$ 19.2 million, which is higher than the US$ -17.8 million reported for the same period of the previous year and higher than the US$ -1.6 million reported during the 3Q13. A EBITDA margin of 9.5%, which is higher than the -31.7% margin reported for the same period of the previous year and the -0.8% margin reported for the 3Q13. A profit of US$ 25.7 million, which is higher than the US$ -17.4 million reported for the 4Q12 and higher than the US$ -1.9 million reported for the 3Q13. Financial leverage ratio of 1.18x, which is lower than the 1.26x level reported during the 3Q13.
AquaChile reported accumulated sales of US$ 737.9 million on December 31, 2013, showing an 80% increase in comparison with the same period in 2012 (US$ 328.3 million). This is mainly due to the increase of valued sales of Atlantic salmon (US$ 217 million) and Pacific salmon (US$ 67 million). The exporting price scenario for 2013 was favorable for Atlantic salmon and Sea trout, which had 30% and 18% increases respectively in comparison to 2012. In this way, the previous price situation favored the species with which AquaChile was regaining production levels more strongly in 2013. During the first six months of this year part of the Atlantic salmon and Sea Trout biomass were affected by a bigger presence of Sea lice1 in the industry, especially in certain productive neighborhoods where AquaChile stocks its biomass. This created higher costs for treatment against this parasite, a higher feed conversion rate
and slower growth in those farm sites that were most affected. This brought lower harvest weights, a lower dilution of the fixed costs and a sub-optimal trade of the productive mix. There was an improvement in the production observed for the second semester as well as a decrease in the costs of raw materials. The biomass had better growth rates and an improved feed conversion, slowly going back to historical levels. The Company’s EBITDA has been showing a slow and significant improvement during the fourth quarter due to observed productivity improvements. This has gone hand in hand with higher price levels. This is why the EBITDA during the last quarter of 2013 reached US$ +19.2 million, which is higher than the US$ -1.6 million observed during the third quarter 2013 and higher than the US$ -17.8 million seen during the fourth quarter of 2012.
1 Sea Lice: 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 farms.
04
QUARTERLY SUMMARY
The Company’s consolidated sales during the 4Q13 totalled US$ 202.4 million, which was a 261% increase in comparison to the valued sales reported for the 4Q12. In fact, an increase in the valued sales of Atlantic salmon (307%), Sea trout (26%) and Pacific salmon (368%) was observed during the fourth quarter, whereas Tilapia had a 9% drop in comparison to the same period the previous year. Regarding the sales price, there was in increase in the price of Atlantic salmon (50%), Sea trout (79%) and Pacific salmon (51%); however, there was a 1% drop in the sales price for Tilapia in comparison with the same quarter 2012. The consolidated EBITDA reached US$ +19.2 million during the 4Q13. This is positive in comparison with the US$ -17.8 million reported for the same period 2012 and in comparison with the US$ -1.6 million reported for the 3Q13. The reason why there was such an improvement in comparison to the fourth quarter 2012 is the improved margins of all salmonid species linked with an increase in the average sales price. This was partially offset by the sales costs in all species.
AquaChile reported a US$ +25.7 million profit during the 4Q13. This is a positive comparison to the US$ -17.4 million reported for the same period of 2012. The reason for this improvement was higher margins for all salmonid species in comparison with the same period the previous year. This is associated to higher export prices, reflecting better results in the net effect of the fair value adjustment of the biomass of all three species. The Company’s net financial debt totalled US$ 276.5 million at the close of the 4Q13, reflecting a US$ 28.6 million increase in comparison to the close of the 4Q12. The main reason for this increase was higher financial liabilities that strengthened the administration of the company’s working capital during 2013. This allowed the Company to delay the sales of the finished product, thus optimizing returns from export sales, taking advantage of what was available in stock and/or finished products to sell them at a better price in the market.
05
ANALYSIS OF RESULTS
SUMMARY OF MAIN CONSOLIDATED FIGURES figures in thus$ SALES EBIT PRE FV ADJ.
(1)
EBITDA PRE FV ADJ. (2) EBITDA PRE FV ADJ. MARGIN
4q13
4q12
∆qoq
2013
2012
∆yoy
202,387
56,101
261%
737,875
409,541
80%
11,902
-21,823
-
-42,974
-20,687
-108%
19,190
-17,757
-
-15,501
-4,287
-262%
9.5%
-31.7%
-
-2.1%
-1.0%
-
NET INCOME
25,709
-17,424
-
-9,454
-43,156
78%
SALMON AND SEA TROUT SALES - WFE TONS
28,228
15,893
78%
116,180
64,934
79%
0.52
-1.25
-
-0.33
-0.30
-12%
TILAPIA SALES - WFE TONS
4,620
5,007
-8%
23,806
21,342
12%
EBIT / KG WFE TILAPIA
-0.61
-0.40
-55%
-0.18
-0.06
-183%
EBIT / KG WFE SALMON AND SEA TROUT
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 proceeds for this quarter reached US$ 202.4 million. This is higher than the US$ 56.1 million reported for the same period in 2012. In fact, the proceeds from the Atlantic salmon saw a 307% increase (US$ 66.1 million),
Pacific salmon saw a 368% increase (US$ 30.2 million) and Sea trout saw a 26% increase (US$ 6.9 million), whereas the Tilapia saw a 9% drop (US$ -1.3 million).
06
ANALYSIS OF RESULTS
QUARTERLY SALES TREND (USD MILLIONS) 202 166
158
193
191
2Q13
3Q13
152
136 97
103
100
96 56
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
4Q13
QUARTERLY CONSOLIDATED SALES ANALYSIS (PRICE AND VOLUME EFFECT) (USD MILLIONS) Sales 4Q12
Atlantic Salmon
Sea Trout
Pacific Salmon
Tilapia
Fish Feed
36* 26 21 55
56
4
Other Sales Incomes 4Q13
9
202
0 -1
-0
-14
11
∆ Price
∆ Volume
* The impact on revenues from the proportional consolidation of Alitec Pargua S.A. that took place in December 2012.
07
ANALYSIS OF RESULTS
QUARTERLY EBITDA TREND (US$ MILLIONS)
33
33
25 19
17 12 0,3 -2 -12
-12 -18
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
-21
1Q13
2Q13
3Q13
4Q13
QUARTERLY NET INCOME TREND (US$ MILLIONS) 37 26
10
10 2 -2
-2
-5 -10 -17
-17 -28
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
08
ANALYSIS OF RESULTS
The consolidated EBITDA pre Fair Value adjustments2 (*) reached US$+19.2 million during the fourth quarter 2013. This is a positive comparison to the US$ -17.8 million during the same period of the previous year and the US$ -1.6 million during the third quarter 2013. The margins of all salmonid species explain the improvement observed in comparison to the same quarter 2012, which is linked to an increase in the average sales cost in these species. The higher sales costs of all salmonid species offsets this. At the same time, the improvement in the sales price as well as the costs of raw material for some species explain the observed improvement in the EBITDA during the third quarter of this year, reflecting an improvement in the Company’s productive indexes. With this, the EBITDA margin (EBITDA over ordinary income) that was reported during the 4Q13 is +9.5% in comparison to the -31.7% reported during the same period 2012. The Company recognizes a profit of US$ +24.7 million during the fourth quarter of 2013 due to the “Net effect of valuing the biomass at fair value”. This number is higher
than the US$ -3.8 million loss reported during the 4Q12. The main reason for this was the “Adjustment by valuing the fish biomass that is being reared” of US$ +34.0 million during the 4Q13, higher than what was reported for the 4Q12 of US$ +0.1 million, and the reason for this is the higher prices of all salmonid species. The “fair value of the harvested and sold fish” for US$ -9.3 million slightly offset this effect. This number is less than the US$ +3.3 million reported during the 4Q12. The rise in the current exporting prices during the 4Q13 in comparison to the 4Q12 is the main explanation for this. Furthermore, the Company does not recognize impairment adjustments on the biomass in the water on December 31, 2013. This is in comparison with the US$ -6.7 million on recognized impairment on December 31, 2012, due to the low current exporting prices on that date. Net value adjustments on producing the finished products was not recognized during the 4Q13 in comparison with the US$ -0.5 million provision reported for the 4Q12. (See Note 10 of the Consolidated Financial Statements: Biological Assets)
2(*): In order to measure financial performance under the 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 a regulation under the IFRS 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. The market price 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, the gutted fish with head on HON (Head On) for the Atlantic salmon, and gutted fish without head HG (Headed and Gutted) for the sea trout and the Pacific salmon or Coho, without taking into consideration the prices of a mix of products that have a higher adder value. It is important to point out that among the fish species that it farms and commercializes 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. What this means is that the stocks of fish being raised are valued at market price and when they are sold the following period, are reflected at a revalued sales cost with an effect on the operational margin. For weights that are too low to be considered fair value, their accumulated cost is considered at the closing date. However, given certain adverse conditions that might affect the salmon market and/or the sanitary conditions of the fish, the Company carries out a deterioration test on its biomass that is being reared projected forward to harvest and whose net accumulated effect is presented in the results.
09
ANALYSIS OF RESULTS
ANALYSIS OF PHYSICAL SALES, VALUED, AND MARGIN BY SEGMENT 4q13
4q12
∆qoq
2013
2012
∆yoy
TON WFE
14,350
5,292
171%
51,293
16,267
215%
MUS$
87,690
21,555
307% 287,838
70,464
308%
6.11
4.07
50%
5.61
4.33
30%
MUS$
8,056
-4,859
-
-18,108
-11,512
-57%
US$ / KG WFE
0.56
-0.92
-
-0.35
-0.71
50%
TON WFE
5,580
7,916
-30%
29,716
31,249
-5%
MUS$
33,474
26,583
26%
142,970
127,863
12%
6.00
3.36
79%
4.81
4.09
18%
figures in thus$
ATLANTIC SALMON SALES VOLUME SALES
AVERAGE PRICE US$ / KG WFE EBIT EBIT / KG WFE
SEA TROUT SALES VOLUME SALES
AVERAGE PRICE US$ / KG WFE EBIT EBIT / KG WFE
MUS$
- -28,838 -16,932
-70%
0.19
-1.69
-
-0.97
-0.54
-79%
TON WFE
8,298
2,685
209%
35,171
17,418
102%
MUS$
38,425
8,215
368%
134,294
67,506
99%
4.63
3.06
51%
3.82
3.88
-1%
MUS$
5,601
-1,593
-
8,259
9,117
-9%
US$ / KG WFE
0.68
-0.59
-
0.23
0.52
-55%
TON WFE
4,620
5,007
-8%
23,806
21,342
12%
MUS$
12,936
14,214
-9%
68,508
62,172
10%
2.80
2.84
-1%
2.88
2.91
-1%
MUS$
-2,823
-1,979
-43%
-4,288
-1,360 -215%
US$ / KG WFE
-0.61
-0.40
-55%
-0.18
-0.06 -183%
US$ / KG WFE
1,068 -13,392
PACIFIC SALMON SALES VOLUME SALES
AVERAGE PRICE US$ / KG WFE EBIT EBIT / KG WFE
TILAPIA SALES VOLUME SALES
AVERAGE PRICE US$ / KG WFE EBIT EBIT / KG WFE
The Atlantic Salmon business increased its revenue by 307% (US$ 66.1 million) during the 4Q13 in comparison to the same period of 2012, due to a 171% increase in the sales volume (∆+ 9,059 tons WFE) plus the 50% increase in the average sales price. Furthermore, the EBIT Pre FV Adj. presented a US$ +8.1 million profit. At unit level the EBIT Pre FV Adj. / Kg WFE reached US$ +0.56 / Kg WFE presenting an improvement in comparison with the US$ -0.92 / Kg WFE this time last year due to the improvement of the average sales price. An improvement can also be seen in regards to the EBIT Pre FV Adj. / Kg WFE of US$ -0.47 / Kg WFE observed for the 3Q13, mainly explained by the better sales price, and also the costs of the raw material. This reflects a slow improvement of the Company’s productive indexes. It is noted that the EBIT / Kg WFE of this species is influenced by the implementation of the project carried out by AquaChile together with the multinational DuPont® regarding Verlasso® salmon. This project is still in the “market test” stage, which means higher production, branding and marketing costs that are necessary to introduce this new kind of product. This segment affects the average EBIT / Kg WFE. It is important to mention that Verlasso® salmon is the first and only farmed salmon in the world to receive the category of “Good Alternative” from the Seafood Watch program from Monterey Bay Aquarium in 2013. This program helps consumers to choose sea products that are causing less impact on the ocean, thus contributing to taking care of the environment. The Sea trout business saw a 26% increase in its revenue (US$ 6.9 million) during the 4Q13 in comparison to the same period of 2012. The average sale price increased by 79% causing this effect, however it had a 30% decrease in the sales volume (∆- 2,337 tons WFE). Furthermore, the EBIT Pre FV Adj. had a US$ +1.1 million profit. At unit level, the EBIT Pre FV Adj. / Kg WFE reached US$ +0.19 / Kg WFE. This is an improvement in comparison with the US$ -1.69 / Kg WFE at the same time last year. The improved average sales price is the main reason for this. At the same time, this is an improvement in comparison to the US$ -0.34 / Kg WFE of the 3Q13 due to the same reason.
The Pacific salmon or Coho salmon business saw a 368% increase in its revenue (US$ 30.2 million) during the 4Q13 in comparison to the same period 2012. The 209% increase in the sales volume (∆+ 5,613 tons WFE) plus the 51% increase in the average sales price was the reason for this increase. Furthermore, the EBIT Pre FV Adj. saw a US$ +5.6 million return. At unit level the EBIT Pre FV Adj. / Kg WFE reached US$ +0.68 / Kg WFE (in comparison to the US$ -0.59 / Kg WFE during the same time last year and the US$ +0.65 / Kg WFE of the 3Q13). The increase in the sales price is the main reason for margins improving in comparison with the 4Q12. The increase in the cost of raw material offset this increase due to the high mortality caused by SRS in some of the farm sites during the 2013/2014 season. The Tilapia business saw a 9% decrease in its revenues (US$ 1.3 million) during the 4Q13 in comparison to the same period 2012. The 8% decrease in the sales volume (∆- 387 tons WFE) prompted this, as did a 1% drop in the average sales price. On the other hand, the EBIT Pre FV Adj. saw a US$ -2.8 million loss. Aquapanama began to show improvements in its costs during 2013 in comparison with those seen during the same quarter of 2012, since it now has a genetically improved fish. On the other hand, the Costa Rica production saw an increase in costs of the raw material. The higher feed costs as well as the higher conversion factor associated to the rains caused this increase. These heavy rains during 2013 increased the turbidity in the water. At unit level the EBIT Pre FV Adj. / Kg WFE reached US$ -0.61 / Kg WFE (in comparison to the US$ -0.40 / Kg WFE this same time last year).
TOTAL SALES VOLUME SALES
TON WFE MUS$
AVERAGE PRICE US$ / KG WFE EBIT EBIT / KG WFE Source: AquaChile
MUS$ US$ / KG WFE
32,848 20,900 172,525
70,567
5.25
3.38
11,902 -21,823 0.36
-1.04
86,276
62%
144% 633,610 328,006
57% 139,986
93%
56%
4.53
3.80
19%
- -42,974 -20,687 -108% -
-0.31
-0.24
-28%
10
ANALYSIS OF RESULTS
CONSOLIDATED INCOME STATEMENT figures in thus$ SALES OPERATIONAL COST
(1)
OPERATIONAL MARGIN
4q13
4q12
∆qoq
2013
2012
∆yoy
202,387
56,101
261%
737,875
409,541
80%
-175,286
-67,443
160%
-720,853
-388,094
86%
27,102
-11,342
-
17,022
21,447
-21%
OTHER COST AND OPERATING EXPENSES (2)
-7,912
-6,415
23%
-32,523
-25,734
26%
EBITDA PRE FV ADJ.
19,190
-17,757
-
-15,501
-4,287
-262%
DEPRECIATION & AMORTIZATION
-7,287
-4,066
79%
-27,473
-16,401
68%
EBIT PRE FV ADJ.
11,902
-21,823
-
-42,974
-20,687
-108%
NET REVENUES FROM BIOLOGICAL ASSETS (3)
24,716
-3,774
-
47,693
-44,292
-
EBIT POST FV ADJ.
36,619
-25,597
-
4,718
-64,980
-
FINANCIAL EXPENSES
-2,679
-2,243
19%
-9,269
-8,488
9%
FINANCIAL INCOME OTHER NON OPERATING ITEMS (4) INCOME TAXES NET INCOME
162
1,568
-90%
589
2,548
-77%
-1,151
2,756
-
-5,998
2,916
-
-7,241
6,091
-
505
24,848
-98%
25,709
-17,424
-
-9,454
-43,156
78%
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 came to a total of US$ -175.3 million during the quarter. This is 160% higher than it was during the 4Q12, which is mainly explained by the high volume sales of Atlantic salmon and the Pacific salmon. Furthermore, if you compare the operational cost (measured as a percentage over sales) it reached 86.6% of its revenues, 33.6 percentage points lower than the percentage that was reported for the 4Q12 and 9.9 percentage points lower than the percentage reported for the 3Q13.
NET EFFECT OF THE FAIR VALUE ADJUSTMENT OF THE BIOMASS Fair Value of the year’s biological assets: The effect of the natural growth of the fish biomass that is in the water is determined according to the assessment done at each farm site. This is expressed as a reasonable value for the fish (sales price minus the estimated costs up to the moment they are sold). It is based on the existing fish biomass at the close of each month. The details include the total number of fish in the water, their estimated weight and the cost of the fish biomass. To calculate the value, an estimate is done on the average weight that the fish are currently weighing multiplied by the value per kilo reflected in the market price. The market price is obtained either from the international prices or else from sales that took place near the closing of the financial statements. The resulting high or low value is reported in the Income Statement under the concept of “Fair Value of the biological assets of the year”. This concept meant a US$ 34.0 million profit during the 4Q13, which can be positively compared to the US$ -7.1 million loss reported during the 4Q12. This is broken down in the following way: i) the US$ +34.0 million (US$ +0.1 million during the 4Q12) correspond to the “Valuing Adjustment of the fish biomass in the water”, ii) US$ 0 million (US$ -6.7 million for the 4Q12) correspond to the impairment test carried out on the biomass in the water
projected for harvest without being valued at fair value; and finally, iii) US$ 0.0 million (US$ -0.5 million for the 4Q12) that correspond to a provision for the net value carried out on the finished products. The higher cost of the harvested and sold part resulting from this revaluing is reported in the Income Statement under the concept “Fair Value biological assets harvested and sold” which had a US$ -9.3 million loss for the 4Q13 (US$ +3.3 million for the 4Q12). The net value of both revaluing effects is expressed in the concept “Net effect of the fair value adjustment on the biomass” and it reached US$ +24.7 million for the 4Q13. This number is more than the US$ -3.8 million reported for the 4Q12. (For more detail see Note 10 of the Financial Statements: Biological Assets). The non-operational results showed a US$ -3.7 million loss for the current quarter in comparison to the US$ +2.1 million profit reported for the 4Q12. Higher financial expenses associated to the increase of the financial liability explains this lower result as does the lower financial revenue after the expiry of the forwards that generated profits during the 4Q12 and reclassifying the differed taxes. The expenses for income tax presented a provision of US$ -7.2 million associated to the profit reported for that period. This can be compared to the US$ +6.1 million of the same period the previous year. The Company presented a US$ +25.7 million profit for the 4Q13. This number can be positively compared to with the US$ -17.4 milion loss reported during the same period of 2012. This improvement is due to the higher margins in all of the salmonid species in comparison with the same period the previous year. This is associated with higher export prices which, furthermore, lead us to acknowledge a better result because of the net effect of the fair value adjustment on the biomass of the three species.
12
BALANCE SHEET ANALYSIS
CONSOLIDATED BALANCE SHEET 2012 figures in thus$
2013
1q12
2q12
3q12
4q12
1q13
2q13
3q13
4q13
∆4q13 o 4q12
CURRENT ASSETS
445,298
410,090
470,823
434,232
486,530
440,131
420,735
475,711
9.6%
NON CURRENT ASSETS
382,420
402,711
442,510
397,594
396,059
409,874
410,542
423,345
6.5%
TOTAL ASSETS
827,718
812,801
913,333
831,826
882,589
850,006
831,277
899,056
8.1%
CURRENT LIABILITIES
146,755
125,350
175,516
176,554
200,549
214,043
195,261
227,429
28.8%
NON CURRENT LIABILITIES
228,153
252,356
312,720
258,739
290,840
272,680
274,664
268,149
3.6%
TOTAL LIABILITIES
374,908
377,706
488,237
435,293
491,389
486,723
469,925
495,577
13.8%
EQUITY
431,228
414,012
404,099
387,654
382,443
354,309
352,709
394,173
1.7%
21,582
21,083
20,998
8,879
8,757
8,973
8,643
9,305
4.8%
827,718
812,801
913,333
831,826
882,589
850,007
831,277
899,055
8.1%
MINORITY INTEREST
TOTAL EQUITY AND LIABILITIES Source: AquaChile
Current Assets saw a 9.6% increase (US$ +41.5 million) in comparison with the numbers observed for the 4Q12. This is explained mainly by the US$ 24.1 million increase in “Trade and other accounts receivable” bank accounts associated with a higher sales performance within the Salmon and Sea Trout segments; by the US$ 18.0 million increase in the “Current and Stocked Biological Assets” account associated mainly with revaluing the fish biomass at fair value; and due to the US$ 5.0 million increase in the Cash and Cash Equivalent account. Non-current Assets showed a 6.5% increase (US$ 25.8 million) in comparison to the numbers observed for the 4Q12. The US$ 33.8 million increase in “Properties, Plants and Equipment” is the main explanation for this increase. This increase is associated with the investments made during the period. The effect of the proportional consolida-
tion of Biomar Aquacorporation Products3 and the change of criteria for valuing the Company’s properties, from the cost model to the revaluing model, applying the standards of the NIC 16, is also part of the explanation. The Company contracted the services of external experts to determine the revaluation amount. They determined the reasonable values for the different properties. The effect of this accounting change ascends to US$ 23.7 million (Group ACl US$ 8.2 million and US$ 15.5 million for the Parent company and its subsidiaries here in Chile). All of this is included in the “Properties, Plants and Equipment” concept. The decrease in the “Asset for differed taxes” slightly compensates the observed increase in “Properties, Plants and Equipment”. This is due to the lower tax loss during 2013 and because there is no impairment in the fish biomass on December 31, 2013.
3 Up to December 2013, Biomar Aquacorporation Products, a subsidiary that produces feed for tilapia, in which Grupo ACI has a 50% participation together with Biomar Aquaculture Corporation, was a registered under the following method of participation. As of December 2013, Grupo ACI has modified the shareholders agreement that it holds with Biomar Aquaculture Corporation within Biomar Aquacorporation Products, creating an equal number of Directors. Thus, shareholders on both sides are in an equal position in terms of leading the corporation, generating a joint agreement.
13
BALANCE SHEET ANALYSIS
Current Liability showed a 28.8% increase (US$ 50.9 million) in comparison to the numbers observed for the 4Q12. This reason for this: i) The US$ 22.5 million increase in “Other current financial liabilities”, mainly due to reclassifying the debt repayments for the next 12 months from long and short term; and ii) a US$ 13.1 million increase in the “trade accounts payable and other payables”, and the increase in the “Accounts payable to affiliated companies”, which include the effect of the proportional consolidation of Biomar Aquacorporation Products.
crease. This also includes the effect of the proportional consolidation of Biomar Aquacorporation Products. Total Equity (including the Non-controlling interests) of the Company presented a US$ 6.9 million increase in comparison to December 2012. The US$ 19.0 million reported associated with revaluing the company’s properties after changing the revaluing criteria from the cost model to the revaluing model is the main explanation for this increase. This value is reported net of the effects of the differed taxes. This effect is offset by the reported US$ -9.5 million loss during 2013 and by the higher value of US$ 4.3 million paid by the minority shareholders in Piscicultura Aquasan S.A. and Salmones Chiloé S.A. in regards to the book value.
Non-current Liability showed a 3.6% increase (US$ 9.4 million) in comparison to the observed numbers for the 4Q12. The US$ 11.2 million increase in “Other non-current financial liabilities” is the main explanation for this in-
AQUACHILE FINANCIAL DEBT 2012
2013
figures in thus$
1q12
2q12
3q12
4q12
1q13
2q13
3q13
4q13
(I) OTHERS FINANTIAL LIABITIES CURRENT
13,197
11,799
12,820
9,111
11,259
25,253
31,409
31,579
(II) OTHERS FINANTIAL LIABITIES NON CURRENT
185,469
198,773
251,882
251,705
TOTAL INTEREST BEARING DEBT (I) + (II)
198,666
210,572 264,702 260,816
CASH AND CASH EQUIVALENTS
104,305
64,066
NET INTEREST BEARING DEBT
62,408
12,922
94,361 146,507 202,295 247,893
∆4q13 o 4q12
246.6%
281,356 266,039 266,446 262,894
4.4%
292,615
12.9%
37,185
291,293 297,854 294,473
11,201
14,026
17,935
38.8%
255,430 280,091 283,828
276,537
11.6%
Source: AquaChile
Furthermore, AquaChile’s Net financial debt reached US$ 276.5 million, showing a US$ 28.6 million increase in comparison to the close of the 4Q12. Increasing the financial liabilities during 2013 is the main explanation for this increase. This action helped strengthen the
administration of the company’s working capital thus allowing a delay on selling the stock of finished products, optimizing export returns, taking advantage of the availability of the stock and/or finished products to sell them better in the market. 14
CASH FLOW ANALYSIS
CONSOLIDATED CASH FLOW
figures in thus$
2013
2012
24,241
-74,001
-38,264
-76,472
19,895
50,145
NET INCREASE (DECREASE) OF CASH AND CASH EQUIVALENTS
5,013
-100,975
CASH AND CASH EQUIVALENT AT THE START OF THE PERIOD
12,922
113,897
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD
17,935
12,922
NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES NET CASH FLOWS FROM (USED IN) INVESTMENT ACTIVITIES NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
Source: AquaChile
The following is the behavior of the main components of the consolidated Cash flow on December 31, 2013, in comparison to December 31, 2012: The Company presented a total net cash flow of US$ +5.0 million at the close of December 31, 2013. During this same time last year it reflected a negative cash flow of US$ -101.0 million. The operating activities generated a cash flow of US$ +24.2 million on December 31, 2013, which is
higher than the US$ -74.0 million reported during the same period in 2012. The investment activity meant an expenditure of US$ -38.3 million on December 2013. The expenditure for the same period last year was US$ -76.5 million. The financial activities generated a cash flow of US$ +19.9 million on December 2013, which was less than the US$ +50.1 million generated the previous year.
15
FINANCIAL COVENANTS AND PRODUCTIVITY INDICATORS
FINANCIAL COVENANTS The Company’s contracted financial liabilities include financial obligations (covenants) calculated by the Consolidated Financial Statements of Empresas AquaChile S.A. on December 31, 2011 and on March 31st, June 30th, September 30th and December 31st of the following years. The idea is to keep the maximum leverage level (net financial leverage), keep the net financial expenses coverage to a minimum and the net financial debt ratio above the maximum EBITDA.
Nevertheless, given the scenario of low prices that the salmon industry experienced in 2012 and at the beginning of 2013, the Company has agreed with their creditor banks to suspend the measures of those covenants that include the EBITDA in its calculation up to December 2013.
LEVERAGE(1)
2013
2012
covenant
status as of 12.31.2013
1.18
1.07
< or = 1.20x
ACCOMPLISHED
1 total current liability + total non-current liability – Cash flow and cash equivalent Source: AquaChile
PRODUCTIVITY INDICATORS figures in thus$ SALMON AND SEA TROUT HARVEST HARVESTED FISH FARMS OR FISH FARMS THAT ARE BEING HARVESTED
TONS WFE #
SALMON AND SEA TROUT HARVEST / HARVESTED FISH FARMS OR FISH FARMS THAT ARE BEING HARVESTED TONS WFE USED FISH FARMS*
4q13
4q12
2013
2012
30,574
32,735
102,252
84,810
19.0
21.0
42.0
39.0
1,609
1,559
2,435
2,175
#
40
47
40
47
TONS WFE
764
696
2,556
1,804
ATLANTIC SALMON
KG / M3
8.4
5.1
8.4
5.1
PACIFIC SALMON
KG / M3
9.7
11.1
9.7
11.1
SEA TROUT
KG / M3
5.9
5.0
5.9
5.0 86%
SALMON AND SEA TROUT HARVEST / USED FISH FARMS* FARMING DENSITY**
SURVIVAL CLOSED GROUP*** ATLANTIC SALMON
%
85%
91%
83%
PACIFIC SALMON
%
89%
91%
86%
93%
SEA TROUT
%
82%
81%
76%
80%
* 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 ratio of Salmon and Sea Trout harvests (in tons WFE) / harvested farm sites or farms that are harvesting during the period of December 31, 2013 of 2,435 tons WFE. Farming densities for the seawater licenses per species on December 31, 2013 are the following: i) Atlantic salmon: 8.4 Kg / m3; ii) Pacific salmon: 9.7 Kg7 / m3; and iii) Sea trout: 5.9 Kg / m3.
Survival rates that were observed in the groups that closed on December 31, 2013 are the following: i) Atlantic salmon: 83%; ii) Pacific salmon: 86%; and iii) Sea trout: 76%. It must be noted that culling carried out during the lifetime of the fish influenced the survival of these species and in this case Atlantic salmon also suffered mortalities due to low oxygen in 2013. If these considerations were not taken into account, then the survival rates would be the following: i) Atlantic salmon: 85%; ii) Pacific salmon: 94%; and iii) Sea trout: 81%.
16
RELEVANT EVENTS
RELEVANT EVENTS
On January 31, 2013, a Board of Directors’ Meeting was held where they agreed to call together an Extraordinary Shareholders’ Meeting for February 26, 2013. In this meeting, they were going to talk and express opinions regarding a capital increase. On February 26, 2013, there was an Extraordinary Shareholders’ Meeting of the Company where they adopted the following agreements: 1. Acknowledgement that there was an increase of the share capital of US$ 286,481,801.81, corresponding to the higher value obtained from placing the shares in accordance with what is stated in Article 26 of Law No. 18.046. 2. Increase the share capital by USD 120,000,000. What this means is that from the amount of US$ 523,062,949.81, divided by the 1,200,000,000 common shares, nominative and without par value, the amount of US$ 643,062,949.81 is divided by 1,350,000,000 common shares, nominative and without par value, through issuing the 150,000,000 common shares, nominative and without par value. The shareholders should subscribe for and pay for all the shares in cash or with other goods, within a time limit of three years starting from the date of the Meeting. 3. Give broad powers to the Company’s Board of Directors so that they can emit all of the 150,000,000 shares in reference to an increase in capital. They can also agree on the emission terms and proceed to place the shares in one or more opportunities. This process should begin within the time limit of 180 days starting from this current date. They are at liberty to fix the final price of placement, whether this be higher or lower than the referential price of $363, stated during the Extraordinary Shareholders’ Meeting, having the possibility to use the Auction of the Book Trading mechanism in accordance to
what is stated in Section 2.4 of the Operating Handbook of the Stock Exchange in Santiago. 4. Offer these new issued shares preferably to each shareholder of the company for a period of 30 days giving them time to subscribe the new shares that correspond to each one of them in prorate of ownership interest on the fifth working day before the starting date of right of first refusal in subscribing the shares. 5. Modify the bylaws in such a way that it reflects the changes of the articles that deal with the capital, due to the agreed increase. 6. Empower the Board of Directors with the possibility to delegate to the General Manager or his alternates to materially issue the new emitted shares and to request them to be inscribed in the Securities Record of the Securities and Insurance Commission, and any other powers needed to materialize the emission and issuing of the shares. On March 21, 2013, there was a Board of Directors’ Meeting where they agreed to call together an Ordinary Shareholders’ Meeting on April 18, 2013. On April 18, 2013, there was an Ordinary Shareholders’ Meeting where they agreed on the following points: the Annual report was approved, as was the balance sheet, the Financial Statements and the report from the External Auditing Company. All of these mentioned are in reference to the year closed on December 31, 2012. The remuneration of the members of the Directors’ Committee was fixed, as was their budget for 2013. They designated the company Pricewaterhouse Coopers as the independent external auditors to check the accounting, inventory, balance sheet and the financial statements for 2013. The El Mostrador newspaper was designated to publish the company’s ads.
17
RELEVANT EVENTS
July 25, 2013 there was an Extraordinary Board of Directors’ Meeting where they agreed on the following: i) Request the inscription of the 150,000,000 paid common shares, nominative and without par value of Empresas AquaChile S.A. in the Securities Record of the Securities and Insurance Commission. This would be all of the shares that the Extraordinary Shareholders’ Meeting agreed to emit, pay in cash and to materialize all the necessary procedures in carrying this out; and iii) To offer all of the emitted shares preferable to the Company AquaChile S.A. shareholders who are registered in the Shareholders’ record on the fifth day before the ad is published which will be the beginning of the prorate of ownership interest in subscribing the shares. The shares that will be offered during this 30-day period of ownership interest will have the same price (henceforth the “issuing price”). The issuing price of these shares will be freely decided on by the Board of Directors. They could use the Auction of the Book Trading mechanism in accordance to what is written in
Section 2.4.A of the Operating Handbook of the Stock Exchange in Santiago, or the “Handbook”, in which case they will consider the demand shown by the investors. On September 10, 2013, a letter from the SVS N° 20366/2013 was received. In summary, this is what the letter included: i) Since 180 days have passed since the Shareholders’ Meeting where they empowered the Board to fix the placement price, it is not possible to register the shares requested by the company until another Shareholders’ Meeting is held where they can fix the placement price of the shares or else empower the Board of Directors to do this; ii) If the Auction of the Book Trading mechanism is going to be used for fixing the placement price, the Superintendent points out that “the explicit and concrete document should be attached stating the resignation that one or more shareholders might make in order to reconcile the stock exchange requirements with the referred price for the year of the preferred option”.
18
OUTLOOK
GROWTH AND PROJECTED HARVEST VOLUME FOR THE 1Q14 A 21% growth in all of the harvest in comparison to the same period of the previous year. A 27% growth of the harvests of Salmon and Sea trout in comparison to the previous year. A 7% drop in the harvests of Tilapia in comparison to the previous year The harvest plan for the first quarter of 2014 projects 36,578 tons WFE of Salmon and Sea Trout and 5,659 tons WFE of Tilapia.
HISTORICAL AND PROJECTED HARVESTS 2011
2013
2012
2014
2011
1q12
2q12
3q12
4q12
2012
1q13
2q13
3q13
4q13
2013
1q14
∆qoq
Real
Real
Real
Real
Real
Real
Real
Real
Real
Real
Real
Proj.
1q14P/1q13
ATLANTIC SALMON
15,224
2,181
3,873
6,120
4,959
17,132
7,527
16,529
15,249
13,814
53,119
15,391
104%
TROUT
26,458
10,367
7,661
7,424
7,652
33,104
11,876
5,298
5,780
5,186
28,139
10,065
-15%
PACIFIC SALMON
25,578
13,801
0
648
20,124
34,574
9,407
0
12
11,575
20,994
11,122
18%
TOTAL SALMONIDS
67,260
26,350
11,534
14,192
32,735
84,810
28,810
21,827
21,041
30,574
102,252
36,578
27%
TILAPIA COSTA RICA & PANAMÁ
17,232
5,368
5,607
5,359
5,007
21,341
6,074
6,627
6,485
4,620
23,806
5,659
-7%
TOTAL SALMONIDS AND TILAPIA
84,492
31,718
17,141
19,551
37,742
106,151
34,884
28,454
27,525
35,195
126,058
42,237
21%
wfe tons
Source: AquaChile
It is not AquaChile’s policy to make public projections on their results. Neither do they make projections of the variables that might have a direct impact on them. Nevertheless, we expect the international export prices of Salmon and Sea trout to remain steady or continue rising, con-
sidering that the Chilean industry has moderated their stocking of fish. The Norwegian industry is at its production limits. The offer for salmon at a short or medium term will grow according to demand growth. The demand continues to be robust in all of the markets where the company participates. 19
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET 2011 figures in thus$ CURRENT ASSETS CASH AND CASH EQUIVALENTS OTHER FINANCIAL ASSETS - CURRENT
2012
2013
1q11
2q11
3q11
4q11
1q12
2q12
3q12
4q12
1q13
2q13
3q13
4q13
270,584
458,469
392,283
437,132
445,298
410,090
470,823
434,232
486,530
440,131
420,735
475,711
10%
63,609
177,559
131,661
113,897
104,305
64,066
62,408
12,922
37,185
11,201
14,026
17,935
39%
∆ 4q13 o 4q12
0
0
0
99
999
516
199
1,165
0
0
0
0
-100%
2,683
2,689
4,175
2,693
2,652
4,666
4,456
4,428
4,459
2,867
2,455
1,263
-71%
63,453
102,609
68,651
96,444
104,811
77,361
92,698
85,338
82,551
95,977
79,577
109,409
28%
1
66
457
6,603
5,823
6,331
7,913
8,951
8,018
8,697
6,925
8,739
-2%
138,121
172,643
184,224
213,152
221,382
256,499
301,527
314,577
347,044
316,223
311,728
332,538
6%
TAX ASSETS - CURRENT
2,717
2,903
3,115
4,244
5,325
651
1,622
6,851
7,273
5,166
6,024
5,827
-15%
NON CURRENT ASSETS
298,650
336,471
360,229
341,546
382,420
402,711
442,510
397,594
396,059
409,874
410,542
423,345
6%
96
10,694
11,994
10,694
10,694
10,440
10,289
11,378
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
1,013
-15%
OTHER NON FINANCIAL ASSETS - CURRENT ACCOUNTS RECEIVABLES - CURRENT ACCOUNTS RECEIVABLESWITH RELATED COMPANIES - CURRENT BIOLOGICAL ASSETS - CURRENT - INVENTORY
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
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
2,222
18% -61%
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
1,413
INTANGIBLE ASSETS
35,633
35,510
35,396
37,326
38,250
37,052
37,167
38,962
37,479
37,652
37,712
40,728
5%
GOODWILL
51,448
51,448
51,448
51,448
51,448
51,448
53,247
54,989
59,349
59,423
59,314
54,989
0%
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
234,017
17%
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
26,251
-3% -12%
ASSETS BY DEFERRED TAX TOTAL ASSETS CURRENT LIABILITIES OTHER FINANCIAL LIABILITIES, CURRENT
58,674
76,884
81,610
35,389
73,917
82,970
106,610
58,044
56,107
63,359
64,290
51,184
569,234
794,940
752,512
778,678
827,718
812,801
913,333
831,826
882,589
850,005
831,277
899,056
8%
93,062
156,437
103,344
130,969
146,755
125,350
175,516
176,554
200,549
214,043
195,261
227,429
29% 247%
5,856
14,444
8,554
12,009
13,197
11,799
12,820
9,111
11,259
25,253
31,409
31,579
80,268
136,357
88,893
111,018
122,178
104,776
150,259
154,237
172,493
159,021
134,733
167,311
8%
654
1,948
3,014
2,203
3,190
6,169
9,106
10,437
13,943
25,551
23,714
20,340
95%
5,145
2,640
1,751
3,372
5,536
684
1,006
314
189
11
0
1,896
503%
0
0
0
16
373
387
473
226
469
518
592
249
10%
1,139
1,048
1,132
2,351
2,281
1,535
1,852
2,229
2,196
3,689
4,813
6,054
172%
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
268,149
4%
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
262,894
4%
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
1,267
35%
ACCOUNTS PAYABLE - CURRENT ACCOUNTS PAYABLES WITH RELATED COMPANIES - CURRENT LIABILITIES FOR CURRENT TAXES PROVISIONS FOR EMPLOEYEE BENEFITS - CURRENT OTHER NON FINANCIAL LIABILITIES - CURRENT
OTHER PROVISIONS - NON CURRENT LIABILITIES BY DEFERRED TAX TOTAL LIABILITIES
31
100
62
0
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
3,988
-35%
528,300
378,439
337,504
327,581
374,908
377,706
488,236
435,293
491,389
486,723
469,925
495,578
14%
EQUITY
20,228
395,689
394,359
429,713
431,228
414,012
404,099
387,654
382,443
354,309
352,709
394,173
2%
MINORITY INTEREST
20,706
20,812
20,649
21,384
21,582
21,083
20,998
8,879
8,757
8,973
8,643
9,305
5%
569,234
794,940
752,512
778,678
827,718
812,801
913,333
831,826
882,589
850,005
831,277
899,056
8%
TOTAL EQUITY AND LIABILITIES Source: AquaChile
20
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED INCOME STATEMENT figures in thus$
2011
2012
2013
1q11
2q11
3q11
4q11
1q12
2q12
3q12
4q12
1q13
2q13
3q13
4q13
SALES
135,884
96,959
102,569
165,740
157,855
99,839
95,743
56,101
151,563
192,532
191,393
202,387
261%
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
-175,286
160%
37,145
22,232
17,545
39,376
30,917
6,966
-5,096
-11,342
-13,385
-3,389
6,695
27,102
-
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
-7,912
23%
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
19,190
-
DEPRECIATION & AMORTIZATION
-4,890
-5,454
-4,105
-4,824
-4,811
-3,927
-3,597
-4,066
-5,927
-7,875
-6,384
-7,287
79%
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
11,902
-
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
24,716
-
EBIT POST FV ADJ.
17,892
16,179
495
46,409
-2,840
-14,217
-22,327
-25,597
-1,625
-30,571
296
36,619
-
FINANCIAL EXPENSES
-5,329
-6,115
-1,481
-1,047
-2,050
-1,949
-2,247
-2,243
-2,065
-2,324
-2,201
-2,679
19%
100
968
232
333
1,208
-132
-99
1,568
210
121
96
162
-90%
OPERATIONAL MARGIN
FINANCIAL INCOME OTHER NON OPERATING ITEMS (4) INCOME TAXES NET INCOME
∆ qoq
270
456
-33
-243
-582
755
-11
2,756
-226
-4,832
214
-1,151
-
-3,432
-1,712
-752
-8,313
5,979
-1,906
14,684
6,091
-1,602
9,683
-335
-7,241
-
9,501
9,776
-1,540
37,137
1,714
-17,448
-9,998
-17,424
-5,308
-27,924
-1,930
25,709
-
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
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HISTORICAL HARVESTS AND SMOLTS STOCKING
HISTORICAL HARVESTS wfe tons
2011 2011
real
2012 1q12
2q12
real
real
2013
3q12
4q12
real
real
2012
real
1q13
2q13
3q13
4q13
real
real
real
real
2013
real
∆ qoq
2013/2012
ATLANTIC SALMON
15,224
2,181
3,873
6,120
4,959
17,132
7,527
16,529
15,249
13,814
53,119
179%
TROUT
26,458
10,367
7,661
7,424
7,652
33,104
11,876
5,298
5,780
5,186
28,139
-32%
PACIFIC SALMON
25,578
13,801
0
648
20,124
34,574
9,407
0
12
11,575
20,994
-42%
TOTAL SALMONIDS
67,260
26,350
11,534
14,192
32,735
84,810
28,810
21,827
21,041
30,574
102,252
-7%
TILAPIA COSTA RICA & PANAMA
17,232
5,368
5,607
5,359
5,007
21,341
6,074
6,627
6,485
4,620
23,806
-8%
84,492
31,718
17,141
19,551
37,742
106,151
34,884
28,454
27,525
35,195
126,058
-7%
2011
1q12
2q12
3q12
4q12
2012
1q13
2q13
ATLANTIC SALMON
10,647
5,668
2,392
4,174
3,665
15,899
4,486
TROUT
16,675
4,456
4,481
2,770
2,789
14,495
2,040
10,519
8,576
1,438
0
0
10,014
4,198
4,080
0
37,842
18,699
8,311
6,943
6,454
40,408
10,724
10,613
7,661
TOTAL SALMONIDS AND TILAPIA
Source: AquaChile
HISTORICAL SMOLTS STOCKING 2011 thousands smolts
PACIFIC SALMON TOTAL SALMONIDS
real
2012 real
real
real
2013 real
real
real
3q13
4q13
2,534
5,511
4,706
17,237
8%
3,999
2,150
2,196
10,385
-28%
0
8,278
-17%
6,902
35,900
-11%
real
real
real
2013 real
∆ yoy
2013/2012
Source: AquaChile
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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