EMPRESAS AQUACHILE S.A. RESULTS FOR THIRD QUARTER 2014
November 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
18
9.
Consolidated Balance Sheet
19
10.
Consolidated Income Statement
20
11.
Historical Harvests and Smolts Stocking
21
2
ABOUT EMPRESAS AQUACHILE S.A.
Empresas 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 marketing 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 5,900 people in Chile, the United States, Costa Rica and Panama and it is one of the biggest producers of Sea Trout and Pacific Salmon in the world, as well as the main supplier of fresh Tilapia to the United States. AquaChile is the main Salmon and Sea Trout producer in Chile with a 12.2% market share in 2013 in terms of exported net volumes (source: SalmonChile). The company has 151 aquaculture water licenses, giving them a solid base to grow and diversify. The company exports its products to more than 300 customers in more than 30 countries. The company is also an important Tilapia producer in Costa Rica and is starting to harvest Tilapia in Panama, being one of the main suppliers of fresh Tilapia to 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
EBITDA pre fair value adjustment of US$ +2.5 million during the 3Q14, which is higher than the US$ -1.6 million reported for the same period the previous year. A loss of US$ -2.1 million, in comparison to the US$ -1.9 million loss reported during the same period the previous year. Ratio of financial leverage of 1.08x for the 3Q14 in comparison to the 1.17x level reported for the 4Q13.
AquaChile reported accumulated sales of US$ 555.5 million on September 30, 2014. This is a 4% increase in comparison to the same period in 2013 (∆+US$ 20 million).
was favorable for all of species, noticeably the observed increase in the sales price for Sea trout (∆+38%), Pacific salmon (∆+35%) and Atlantic salmon (∆+13%).
At operating level the EBITDA pre fair value adjustment accumulated for September 2014 (this is before the value adjustment of the fish biomass at fair value) achieved US$ 56.7 million, which is higher than the US$ -34.7 million reported during the same period the previous year. This meant the company obtained a 10.2% margin over its consolidated sales.
The company has obtained lower mortality rates and the average harvesting weight has increased in comparison to the same period of the previous year, due to sanitary and productive improvements observed in the industry during this period. However, during the second and third quarter there has been an increase in the costs of Atlantic salmon harvested, mainly due to a poorer productive performance of the fish in neighborhood 21B (Canal Perez Sur – XI Region). The main reason is that during their first months at sea, the fish were exposed to higher levels of sealice, which made an impact on later growth and conversion factors. All of the farm sites with a low performance were harvested during the third quarter.
The company’s earnings for the first nine months of 2014 were US$ +4.0 million, this is higher than the US$ -35.2 million reported during the same period the previous year. The exporting price scenario for the first nine months of 2014 in comparison to the same period the previous year
1 EBITDA Pre FV Adj. (henceforth EBITDA): The income of ordinary activities minus the sales Cost (that means, the Gross Profit pre Fair Value), minus the Administration Expenses, minus the distribution Costs, plus the Adjustment on the depreciation and amortization expenses. All of these numbers have been directly taken from the Income Statement and from Note 16 (Plants, Properties and Equipment) and from the Company’s Financial Statements.
04
QUARTERLY SUMMARY
The Company’s consolidated sales were a total of US$ 157.9 million during the 3Q14, which represents a decrease of 17% in comparison with the valued sales reported for the 3Q13. It is true that during the third quarter there was a decrease in the physical sales of Atlantic salmon (∆-15%), Sea Trout (∆-28%), Pacific salmon (∆-99%) and Tilapia (∆-33%) in comparison to the same period the previous year. This was partially compensated by an increase in the sales price of the Sea trout (∆+9%), Atlantic salmon (∆+1%) and Tilapia (∆+9%) in comparison with the same quarter 2013. The consolidated EBITDA reached US$ +2.5 million during the 3Q14, which can be compared positively to the US$ -1.6 million reported for the same period 2013. This increase is
mainly due to improved costs for Atlantic salmon and Sea Trout together with increased sales prices for salmon. AquaChile reported a US$ -2.1 million loss during the 3Q14, in comparison to the US$ -1.9 million loss reported during the same period the previous year. The Company’s net financial debt totalled US$ 267.0 million for the 3Q14, showing a US$ 9.6 million decrease in comparison to the close of the 4Q13. This decrease is due to the increase in the company’s “Cash and Cash Equivalent" account which reached US$ 21.9 million for the 3Q14 (US$ 17.9 million for the 4Q13) as well as the payment of the second quota of the syndicated capital credit of US$ 7.5 million paid in June 2014.
05
ANALYSIS OF RESULTS
SUMMARY OF MAIN CONSOLIDATED FIGURES figures in thus$
3q14
3q13
∆qoq
157,935
191,393
-17%
555,463
-4,519
-7,950
43%
2,491
-1,566
-
1.6%
-0.8%
NET INCOME
-2,060
SALMON AND SEA TROUT SALES - WFE TONS
SALES EBIT PRE FV ADJ.
(1)
EBITDA PRE FV ADJ. (2) EBITDA PRE FV ADJ. MARGIN
∆yoy
2013
535,488
4%
737,875
34,380
-54,877
-
-42,974
56,652
-34,690
-
-15,501
-
10.2%
-6.5%
-
-2.1%
-1,930
-7%
4,041
-35,162
-
-9,454
accum. 2014 accum. 2013
18,303
27,226
-33%
67,605
87,953
-23%
116,180
EBIT / KG WFE SALMON AND SEA TROUT
-0.22
-0.24
8%
0.52
-0.61
-
-0.33
TILAPIA SALES - WFE TONS
4,363
6,485
-33%
14,883
19,185
-22%
23,806
EBIT / KG WFE TILAPIA
-0.10
-0.21
52%
-0.05
-0.08
35%
-0.18
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 Revenue for the quarter reached US$ 157.9 million, which is less than the US$ 191.4 million reported during the same period 2013. In fact, the sales revenue for the finished product of Atlantic salmon decreased 14% (∆-US$ 12.6 million), Pacific salmon by 99% (∆-US$ 19.8 million) and Sea Trout by 21% (∆-US$ 7.7 million) and Tilapia by 27% (∆-US$ 5.0 million). All of the above is partially compensated by an increase in “Other sales2” due to the sales of the finished product
of Friosur S.A. and Ventisqueros S.A. in the United States done by the affiliate AquaChile Inc. The sales of Pacific salmon decreased in comparison with the same period the previous year due to the sales strategy of the 2012/2013 season, where the company planned to decrease the sales speed of this season with the idea of achieving better income for this species, selling a large part (approximately 70%) during the first semester 2013.
2 This includes selling the finished products of third parties, organic wastes, eggs, smolts, processing for third parties and laboratory and genetic services.
06
ANALYSIS OF RESULTS
QUARTERLY SALES TREND (USD MILLIONS)
226 193 166
158
103
172
158
152
136 97
191
202
100
96 56
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
QUARTERLY CONSOLIDATED SALES ANALYSIS (PRICE AND VOLUME EFFECT) (USD MILLIONS) Sales 3Q13
191
Atlantic salmon
1
Sea Trout
3 -13
Pacific salmon
Tilapia
Fish feed
Other
incomes
-1 -19
-11
11
2 -7
∆ Price
Sales 3Q14
158
0
∆ Volume
07
ANALYSIS OF RESULTS
QUARTERLY EBITDA TREND (USD MILLION) 39 33
33
25 19
17
15
12 0,3
2 -2 -12
-12 -18
-21
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
QUARTERLY NET INCOME TREND (USD MILLION) 37 26
10
11
10 2 -2
-2
-5
-5
-2
-10 -17
-17 -28
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
08
ANALYSIS OF RESULTS
Consolidated EBITDA pre Fair Value adjustments3 (*) reached US$ +2.5 million during the 3Q14, which is a positive comparison with the US$ -1.6 million of the same period the previous year. The observed improvement is due to greater margins attained mainly because of improved costs for Atlantic salmon and Sea Trout together with greater sales prices for salmon. That is why the EBITDA margin (EBITDA over the revenues) reported during the 3Q14 is +1.6%, in comparison with the -0.8% reported during the same period 2013. The company recognizes a US$ +2.3 million profit during the third quarter 2014 for the “Net Effect of valuing the
biomass at fair value�, which is less than the US$ +8.2 million profit reported during the 3Q13. The reasons for this are mainly: i) recognition of a higher cost due to valuing at fair value during the 3Q14 of US$ +2.6 million, which is lower than the higher cost of US$ +4.6 million reported during the same period of the previous year; ii) the reversal of a provision of the net disposal value of US$ +1.2 million lower than the US$ +2.9 million reversal reported for the same period the previous year. All of the above was partially compensated by the recognition of the value adjustment of the fish biomass being raised of US$ -1.4 million, which is less than the US$ +0.8 million reported during the same period the previous year.
3 (*): 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 reared 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 product that is mainly sold by the company and where there does not exist a niche allowing the company to obtain higher revenues. The company uses the fillet Trim D of Atlantic salmon and the HG (Headed and Gutted) for sea trout and Pacific salmon. 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 reared 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. For the fish that have a lower weight than what is established for applying the fair value, the accumulated cost is considered at the end of the year. Furthermore, the company carries out a deterioration test on the biomass that are in the water that are to be harvested when there are adverse situations that could occur that might affect the salmon market and/or the health condition of the fish which the accumulated net effect would be reflected in the results.
09
ANALYSIS OF RESULTS
ANALYSIS OF PHYSICAL SALES, VALUED, AND MARGIN BY SEGMENT 3q14
figures in thus$
3q13 ∆qoq
accum. 2014
accum. 2013
∆yoy
2013
-3%
51,293
ATLANTIC SALMON SALES VOLUME SALES AVERAGE PRICE EBIT EBIT / KG WFE
TON WFE
13,494
15,798
-15%
35,753
36,943
MUS$
78,471
91,111
-14%
218,827
200,147
5.82
5.77
1%
6.12
5.42
13%
5.61
MUS$
-5,626
-7,406
24%
9,956
-26,164
-
-18,108
US$ / KG WFE
-0.42
-0.47
11%
0.28
-0.71
-
-0.35
TON WFE
4,781
6,622
-28%
17,776
24,136
-26%
29,716
US$ / KG WFE
9% 287,838
SEA TROUT SALES VOLUME SALES AVERAGE PRICE EBIT EBIT / KG WFE
28,683
36,422
-21%
111,102
109,496
1%
142,970
US$ / KG WFE
MUS$
6.00
5.50
9%
6.25
4.54
38%
4.81
MUS$
1,619
-2,277
-
15,768
-29,905
US$ / KG WFE
0.34
-0.34
-
0.89
-1.24
-
-0.97
29
4,806
-99%
14,076
26,873
-48%
35,171 134,294
- -28,838
PACIFIC SALMON SALES VOLUME SALES AVERAGE PRICE EBIT EBIT / KG WFE
TON WFE MUS$
114
19,942
-99%
67,698
95,869
-29%
US$ / KG WFE
3.97
4.15
-4%
4.81
3.57
35%
3.82
MUS$
-69
3,111
-
9,400
2,658
254%
8,259
-2.42
0.65
-
0.67
0.10
575%
0.23
US$ / KG WFE
TILAPIA SALES VOLUME SALES AVERAGE PRICE EBIT EBIT / KG WFE
TON WFE
4,363
6,485
-33%
14,883
19,185
-22%
23,806
MUS$
13,587
18,577
-27%
45,905
55,572
-17%
68,508
US$ / KG WFE
3.11
2.86
9%
3.08
2.90
6%
2.88
MUS$
-442
-1,377
68%
-743
-1,465
49%
-4,288
US$ / KG WFE
-0.10
-0.21
52%
-0.05
-0.08
35%
-0.18
The Atlantic salmon business saw a 14% decrease (∆-US$ 12.6 million) in its income during the 3Q14 in comparison to the same period 2013, due to a 15% decrease in the sales volume (∆-2,304 WFE tons), in spite of a 1% increase in the sales price. On its part the EBIT Pre FV Adj. showed a US$ -5.6 million loss which is a positive comparison with the US$ -7.4 million reported during the same period 2013. At unit level, the EBIT Pre FV Adj. / Kg WFE reached US$ -0.42 / Kg WFE (in comparison to the US$ -0.47 / Kg WFE for the same time the previous year). The negative margin reported for the quarter is influenced by the increase in production costs of the harvests that were carried out in neighborhood 21B. These fish had a lower productive yield at the end of the on-growing cycle due to the effect of facing a high level of sealice during the early stages. All of the farm sites that had a poor performance were harvested during the third quarter.
The Sea trout business saw a 21% (∆-US$ 7.7 million) decrease during the 3Q14 in comparison to the same period 2013, due to a 28% decrease (∆-1,842 WFE tons) in the sales volume despite a 9% increase in the sales price. As for the EBIT Pre FV Adj., it presented a US$ +1.6 million profit which is a positive comparison with the US$ -2.3 million reported for the same period 2013. At unit level, the EBIT Pre FV Adj. / Kg WFE reached US$ +0.34 / Kg WFE (in comparison to the US$ -0.34 / Kg WFE the same time last year). The observed increase in margins is due to the price increase as well as the sales cost decrease.
The Pacific or Coho salmon business saw a 99% decrease (∆-US$ 19.8 million) during the 3Q14 in comparison with the same period 2013, seeing valued sales of US$ 0.1 million. This is due to a ∆99% (∆-4,777 WFE tons) decrease in the sales volume, and a 4% decrease in the sales price. For its part, the EBIT Pre FV Adj. demonstrated a US$ -0.07 million loss, which is a negative comparison to the US$ +3.1 million reported for the same period 2013. At unit level, the EBIT Pre FV Adj. / Kg WFE reached US$ -2.42 / Kg WFE (in comparison to the US$ +0.65 / Kg WFE the same period the previous year). This result is associated to the 2013/2014 season balances equivalent to only 29 WFE tons.
The Tilapia business saw a 27% (∆-US$ 5.0 million) decrease in its income during the 3Q14 in comparison to the same period 2013, due to a 33% decrease (∆-2,121 tons WFE) in the sales volume despite a 9% increase in the sales price. The EBIT Pre FV Adj. showed a US$ -0.4 million loss which is a positive comparison to the US$ -1.4 million reported during the same period 2013. At unit level the EBIT Pre FV Adj. / Kg WFE reached US$ -0.10 / Kg WFE (in comparison to the US$ -0.21 / Kg WFE the same time the previous year). An increase in the margins is due to the sales price increase. It is important to note, however, that the negative margin reported in the quarter is associated to an increase in processing costs and raw material in Costa Rica mainly associated to the lower harvesting weights obtained in the quarter.
TOTAL SALES VOLUME SALES AVERAGE PRICE EBIT EBIT / KG WFE Source: AquaChile
TON WFE
22,667
33,711
-33%
82,488
107,138
-23% 139,986
MUS$
120,855
166,052
-27%
443,531 461,084
-4% 633,610
5.33
4.93
8%
5.38
4.30
MUS$
-4,519
-7,950
43%
34,380
-54,877
US$ / KG WFE
-0.20
-0.24
15%
0.42
-0.51
US$ / KG WFE
25%
4.53
- -42,974 -
-0.31
10
ANALYSIS OF RESULTS
CONSOLIDATED INCOME STATEMENT figures in thus$ SALES OPERATIONAL COST
3q14
3q13
∆qoq
accum. 2014
accum. 2013
∆yoy
2013
157,935
191,393
-17%
555,463
535,488
4%
737,875
-147,086
-184,697
-20%
-473,371
-545,567
-13%
-720,853
OPERATIONAL MARGIN
10,849
6,695
62%
82,093
-10,079
-
17,022
OTHER COST AND OPERATING EXPENSES (2)
-8,358
-8,261
1%
-25,441
-24,611
3%
-32,523
2,491
-1,566
-
56,652
-34,690
-
-15,501
DEPRECIATION & AMORTIZATION
-7,010
-6,384
10%
-22,272
-20,186
10%
-27,473
EBIT PRE FV ADJ.
-4,519
-7,950
43%
34,380
-54,877
-
-42,974
2,316
8,246
-72%
-25,742
22,976
-
47,693
EBIT POST FV ADJ.
-2,203
296
-
8,638
-31,900
-
4,718
FINANCIAL EXPENSES
-1,937
-2,201
-12%
-6,524
-6,590
-1%
-9,269
(1)
EBITDA PRE FV ADJ.
NET REVENUES FROM BIOLOGICAL ASSETS (3)
FINANCIAL INCOME OTHER NON OPERATING ITEMS (4) INCOME TAXES NET INCOME
123
96
28%
452
427
6%
589
1,944
214
809%
3,088
-4,846
-
-5,998
13
-335
-
-1,613
7,746
-
505
-2,060
-1,930
-7%
4,041
-35,162
-
-9,454
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 10 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
Operating Costs totalled US$ -147.1 million in the quarter, 20% less than what was achieved for the 3Q13, the reason for this being the sales volume decrease during the quarter as well as lower sales costs for Atlantic salmon and Sea trout in comparison with the previous year. Furthermore, if one compares operating costs (measured as a percentage over sales), this reached 93% of revenues, 3.4 percentage points under the reported percentage for the 3Q13.
NET EFFECT OF THE FAIR VALUE ADJUSTMENT OF THE BIOMASS Fair Value of the biological assets of the year: The natural growth effect of the fish biomass being reared expressed by its reasonable value at the close of each period (ie. the sales prices minus the estimated costs at the point of sale), is recognized in accordance to the assessment done at each farm site and is based on the existing fish biomass at the close of each month. The details include the total number of fish being reared, their estimated average weight and the cost of the fish biomass. The value is estimated in the calculation according to the average weight the biomass has, multiplied by the value per kilogram seen at market price. The market price is obtained from the international price index or if not from the most recent sales made by the company. The higher or lower resulting value is reported in the Income Statement, under the concept “Fair Value of the biological assets of the year”. This concept had a US$ -0.2 million loss during the 3Q14, in comparison to the US$ +3.7 million profit reported for the 3Q13. This concept can be broken down in the following manner: i) US$ -1.4 million (US$ +0.8 million
reported for the 3Q13) corresponds to “Value adjustment for the fish biomass being raised”; and ii) US$ +1.2 million (US$ +2.9 million for the 3Q13) correspond to the reversal of a provision of the net disposal value of the finished products in the year. The higher cost of the harvested and sold fish from this revaluation is reported in the Income statement under the concept “Fair Value of the harvested and sold biological assets” which saw a US$ +2.6 million profit for the 3Q14 (US$ +4.6 million for the 3Q13). The net value of both revaluation effects are expressed in the line of “Net effect of the fair value adjustment of the biomass” which reached US$ +2.3 million for the 3Q14. This is lower than the US$ +8.2 million reported for the 3Q13. (To see more details see Note 10 of the Financial Statements: Biological Assets) Other Operating Costs and Expenses showed a 1% increase in comparison with the same period of the previous year. Non-operating results showed a US$ 0.1 million loss for the quarter, a positive comparison with the US$ -1.9 million loss for the same period the previous year. The difference can be explained mainly by the US$ 1.8 million profit from the currency exchange rate reported for the 3Q13. This is higher than the US$ -0.4 million reported for the 3Q13. Expense for Income Tax presented a US$ +0.01 million provision which is a positive comparison with the US$ -0.3 million the same period the previous year. The company presented a US$ -2.1 million loss for the 3Q14 in comparison to the US$ -1.9 million loss reported for the same period 2013.
12
BALANCE SHEET ANALYSIS
CONSOLIDATED BALANCE SHEET 2013 figures in thus$ CURRENT ASSETS
2014
1q13
2q13
3q13
4q13
1q14
2q14
3q14
486,530
440,131
420,735
469,657
496,337
468,978
464,748
-1.0%
∆3q14 o 4q13
NON CURRENT ASSETS
396,059
409,874
410,542
423,345
410,387
413,430
442,181
4.4%
TOTAL ASSETS
882,589
850,005
831,277
893,002
906,724
882,408
906,929
1.6%
CURRENT LIABILITIES
200,549
214,043
195,261
221,375
224,698
309,574
307,567
38.9%
NON CURRENT LIABILITIES
290,840
272,680
274,664
268,149
267,681
163,534
173,965
-35.1%
TOTAL LIABILITIES
491,389
486,723
469,925
489,524
492,379
473,108
481,532
-1.6%
EQUITY
382,443
354,309
352,709
394,173
405,205
400,113
416,401
5.6%
8,757
8,973
8,643
9,305
9,140
9,187
8,996
-3.3%
882,589
850,005
831,277
893,002
906,724
882,409
906,929
1.6%
MINORITY INTEREST
TOTAL EQUITY AND LIABILITIES Source: AquaChile
Current Assets presented a 1.0% decrease (∆-US$ 4.9 million) in comparison with the observed numbers of the 4Q13. This is mainly explained by: i) a US$ -30.8 million decrease in the “Accounts receivables - current” mainly associated with the sale of the 2013/2014 season of Pacific salmon and to the recovery of the generated returns; ii) a US$ -3.9 million decrease in the “Tax assets - current”. This was partially compensated by a US$ +15.1 million increase in the ” Biological assets - & Inventory” which is associated with the increase of Pacific salmon and Atlantic salmon biomass in comparison to December 31, 2013 as well as an increase in the finished product inventory.
Non-current assets presented a 4.4% increase (∆+US$ 18.8 million) in comparison with the observed numbers of the 4Q13. This is mainly explained by a US$ +26.8 million increase in the “Assets by deferred tax” due to a tax effect of a higher first category rate of tax associated to a recent tax reform on those that create assets of the deferred taxes (mainly accumulated tax loss). This is partially compensated by a US$ -6.0 million decrease in “Properties, plants and equipment” which includes US$ 0.9 million related to the assets that were damaged in the fire that occurred on April 1, 2014 that affected the cold storage and storehouses of the Cardonal processing plant and the US$ -2.2 million decrease in non-current biological assets.
13
BALANCE SHEET ANALYSIS
The Current Liability showed a 38.9% increase (∆+US$ 86.2 million) in comparison with the observed numbers of the 4Q13. This is explained by: i) a US$ +98.4 million increase in the “Other financial liabilities, current” account associated to reclassifying the US$ 104 million from the long term, net capital payment and the interests carried out as of September 2014. This is partially compensated by: i) the US$ -6.4 million decrease in “Accounts payable - current”; and ii) a US$ -4.2 million decrease in the “Accounts payables with related companies - current”.
tizations of the subsequent 12 months from long term to short term. These will be partially compensated by the US$ +10.1 million increase in “Liabilities by deferred tax” due to the effect of an increase in the tax rate for the first category associated to the recent tax reform on those that create liabilities for deferred taxes. Total Equity (including the non-controlling interests) of the company, saw a US$ +21.9 million increase in comparison to December 2013, which is mainly explained by recognizing the US$ +18.2 million corresponding to the difference between the assets and liabilities of the reported deferred taxes which has a direct effect on increasing the tax rate on the first category once it was approved in the new tax reform; and also because of the accumulated US$+4.0 million profit reported during the period.
The Non-current Liability showed a 35.1% decrease (∆-US$ 94.2 million) in comparison with the numbers observed for the 4Q13. This is mainly explained by a US$ -104.0 million decrease in “Other financial liabilities, non current” associated to the reclassifying of debt amor-
AQUACHILE FINANCIAL DEBT 2013
2014
figures in thus$
1q13
2q13
3q13
4q13
1q14
2q14
3q14
∆3q14 o 4q13
(I) OTHERS FINANTIAL LIABITIES CURRENT
11,259
25,253
31,409
31,579
34,251
128,546
129,970
312%
(II) OTHERS FINANTIAL LIABITIES NON CURRENT
281,356 266,039 266,446 262,894
262,812
158,949
158,915
-40%
TOTAL INTEREST BEARING DEBT (I) + (II)
292,615
297,063 287,495 288,885
-2%
CASH AND CASH EQUIVALENTS NET INTEREST BEARING DEBT
37,185
291,293 297,854
11,201
294,473
14,026
17,935
255,430 280,091 283,828
276,537
49,697
44,451
21,930
22%
247,366 243,044 266,955
-3%
Source: AquaChile
On the other hand, AquaChile’s Net financial debt reached US$ 267.0 million, showing a US$ 9.6 million decrease in comparison to the close of the 4Q13. The reason for this decrease was the increase in the company’s Cash and
Cash Equivalent which reached US$ 21.9 million on September 30, 2014 (US$ 17.9 million for the 4Q13), as well as the payment of mandatory amortizations of the syndicated credit of the company.
14
CASH FLOW ANALYSIS
CONSOLIDATED CASH FLOW
figures in thus$
accum. 2014
accum. 2013
2013
NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES
29,885
1,665
24,241
NET CASH FLOWS FROM (USED IN) INVESTMENT ACTIVITIES
-16,493
-29,743
-38,264
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
-8,684
29,605
19,895
NET INCREASE (DECREASE) OF CASH AND CASH EQUIVALENTS
3,995
1,797
5,013
CASH AND CASH EQUIVALENT AT THE START OF THE PERIOD
17,935
12,922
12,922
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD
21,930
14,026
17,935
Source: AquaChile
The behavior of the consolidated Cash Flow main components on September 30, 2014 in comparison to September 30, 2013 is the following:
observed in the market and to less investment in the working capital, explained by a decrease in the growth rate of the company’s production.
The company presented a total net cash flow of US$ +4.0 million on September 30, 2014. At the same time the previous year there was a US$ +1.8 million cash flow reported.
The investment activity meant an expenditure of US$ -16.5 million on September 30, 2014. At the same period the previous year the expenditure was US$ -29.7 million.
The operating activities on September 30, 2014 generated a US$ +29.9 million cash flow, which is higher than the US$ +1.7 million reported for the same period 2013. This increase is associated with a favorable scenario of the prices
Financing activities generated a US$ -8.7 million cash flow on September 30, 2014, which is less than the US$ +29.6 million generated for the same period 2013.
15
FINANCIAL COVENANTS AND PRODUCTIVITY INDICATORS
FINANCIAL COVENANTS The company’s financial liabilities contracts consider financial obligations (covenants) calculated over the Consolidated Financial Statements of Empresas AquaChile S.A. on December 31, 2011 and on the 31st of March, 30th of June, 30th of September and 31st of December of the following years in reference to keeping the maximum leverage (net financial leverage) at a minimum coverage level of the net financial expenses and a maximum netdebt-to-EBITDA ratio.
Nevertheless, and due to the low price scenario that the salmon industry presented during 2012 and the beginning of 2013, the company agreed with the Creditor banks to suspend the measure of those covenants that include EBITDA in its calculation until September 2014 inclusive.
NET LEVERAGE (1)
3q14
2013
covenant
status as of 09.30.2014
1.08
1.17
< or = 1.10x
ACCOMPLISH
1 (Total current liability + Total non-current liability – Cash flow and cash equivalent) / (Total Equity) 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* SALMON AND SEA TROUT HARVEST / USED FISH FARMS*
3q14
3q13
accum. 2014
2013
22,332
21,041
75,140
102,252
13.0
16.0
31.0
42.0
1,718
1,315
2,424
2,435
#
40
43
40
40
TONS WFE
558
489
1,879
2,556
FARMING DENSITY** ATLANTIC SALMON
KG / M3
6,40
5.40
6.40
8.38
PACIFIC SALMON
KG / M3
6,80
6.10
6.80
9.68
SEA TROUT
KG / M3
3,80
4.50
3.80
5.88
ATLANTIC SALMON
%
79%
85%
84%
83%
PACIFIC SALMON
%
-
-
85%
86%
SEA TROUT
%
89%
76%
87%
76%
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 presented a Salmon and Trout harvest (in tons WFE) / harvested farm sites or in harvest ratio during the period of September 30, 2014 of 2,424 Tons WFE. Farming densities on September 30, 2104 at the aquaculture grow-out sea licenses per species are the following: i) Atlantic salmon: 6.4 Kg/ m3; ii) Pacific salmon: 6.8 Kg/ m3; and iii) Sea trout: 3.8 Kg/m3. Furthermore, survival rates observed in the groups that closed on September 30, 2014 were the following: i) Atlantic salmon: 84%; ii) Pacific salmon: 85%; and iii) Sea trout: 87%. 16
RELEVANT EVENTS
RELEVANT EVENTS
On March 11, 2014 the Superintendency of Securities and Insurance was informed of the changes in Administration: the company’s Board of Directors who met in an extraordinary meeting were informed of and agreed to accept the voluntary resignation presented by Mr. Alfonso Márquez de la Plata Cortés, who was the General Manager of the company, based on personal reasons. The Board agreed to put on record the profound gratitude from each member of the Board to Mr. Alfonso Márquez de la Plata Cortés for his valuable work carried out for more than 10 years as an executive in the Empresas AquaChile S.A. Due to this resignation the Board of Directors agreed to designate Mr. Torben Petersen as General Manager of the company starting from April 1, 2014. Mr. Torben Petersen has a broad and well-known trajectory and experience in the salmon industry and has been linked at the same time with the company through the Salmones Chaicas S.A. project, an affiliate of the Company. On April 2, 2014 a basic fact was sent to inform regarding the Fire Accident that occurred in the Facilities of the Cardonal Processing Plant, located in Puerto Montt. There are fire insurance and contents and damage coverage for the contracted suspension. On April 24, 2014 there was an Ordinary Shareholders’ Meeting where they adopted the following agreements: the Annual Report, Balance, Financial Statements and report of the External Auditors Company, all of these in reference to the year completed on December 31, 2013; the remuneration for the members of the Board of Directors was fixed for 2014; the Board of Directors’ expense account was approved for 2013; the remuneration of the members of the Board Committee was fixed as also the budget for the Directors Committee for 2014; the PricewaterhouseCoopers firm was designated as the external independent auditors for reviewing the accounting, inventory, balance and the financial statements of 2014; and the El Mostrador newspaper was designated for carrying out all of the publications of the company.
On October 8 a basic fact was sent to inform that the Company has signed an agreement with Investment and Technology Limited, a controlling shareholder of Invermar S.A. (“Invermar”), stating that Empresas AquaChile S.A. (“AquaChile”) was purchasing a controlling share in the share ownership of Invermar. To this end, an agreement was proposed to the Creditor Banks for the capitalization terms of Invermar’s financial assets by the best possible means, whereby AquaChile would be able to acquire a controlling share of the company from Invermar’s current creditors; the reprogramming of the balance of this liability which might not have been capitalized; and a capital increase in Invermar of US$ 30 million completely paid and subscribed for by AquaChile, without putting aside the appointed subscription rights. This previously mentioned agreement is subject to compliance with the previous stipulations, consistent with carrying out due diligence to AquaChile’s satisfaction, in subscribing the agreement made with the Creditor Banks of Invermar and AquaChile, and to hold Invermar shareholders’ meetings, enabling the transaction, saving the right to other authorizations and agreements that are necessary to enable the projected transactions. Both parties have agreed to a time limit of November 30, 2014 to agree on the contract terms and other documents taking all the necessary actions with the competent authorities. The market, as well as the Superintendency of Securities and Insurance will be notified as soon as the contracts have been signed to enable the projected transactions. On November 3, 2014 an Essential Fact was sent to inform of a fire that took place in the Processing Plant of Hueñocoihue, located in Dalcahue, the Island of Chiloé at 2:00 am on November 2, 2014. The fire spread to different areas of this facility, completely destroying the facilities. The plant is covered by insurance. This year, the Company has had to deal with two fires in April and November; they are covered by insurance and the claims are being processed. The Company has been analyzing studies to implement improvements as soon as possible and thereby ensure the safety of its facilities. 17
OUTLOOK
GROWTH AND PROJECTED HARVEST VOLUME FOR THE 4Q14 - A 14% increase in total harvests in comparison with the same period the previous year. - A 17% increase in Salmon harvests in comparison with the same period the previous year. - A 6% decrease in Tilapia harvests in comparison with the same period the previous year. The harvesting plans for the fourth quarter 2014 project 35,628 WFE tons of Salmon and Sea trout, and 4,340 WFE tons of Tilapia.
HISTORICAL AND PROJECTED HARVESTS 2013
2014
1q13
2q13
3q13
4q13
2013
1q14
2q14
3q14
4q14
∆qoq
wfe tons
Real
Real
Real
Real
Real
Real
Real
Real
Proj.
4q14E/4q13
ATLANTIC SALMON
7,527
16,529
15,249
13,814
53,119
14,720
10,108
17,636
17,798
29%
TROUT
11,876
5,298
5,780
5,186
28,139
11,073
5,784
4,697
3,912
-25%
PACIFIC SALMON
9,407
0
12
11,575
20,994
11,122
0
0
13,918
20%
28,810
21,827
21,041
30,574
102,252
36,915
15,892
22,332
35,628
17%
6,074
6,627
6,485
4,620
23,806
5,633
4,853
4,493
4,340
-6%
34,884
28,454
27,525
35,195
126,058
42,548
20,745
26,826
39,968
14%
TOTAL SALMONIDS TILAPIA COSTA RICA & PANAMA TOTAL SALMONIDS AND TILAPIA
Source: AquaChile
It is not AquaChile’s policy to make public the projections of their results or the variables that can impact them in an important way. Nevertheless, we are expecting that Salmon and Sea Trout international export prices to remain the same or continue to
rise, taking into consideration that the Chilean industry has moderated its fish stocks, the Norwegian industry has reached its production limits and the supply of salmon is expected to grow in the short and medium term in accordance with the growth of demand, which still remains robust in all of the markets where the company sells to. 18
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET 2012 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
2013
2014
1q12
2q12
3q12
4q12
1q13
2q13
3q13
4q13
1q14
2q14
3q14
445,298
410,090
470,823
434,232
486,530
440,131
420,735
469,657
496,337
468,978
464,748
-1%
104,305
64,066
62,408
12,922
37,185
11,201
14,026
17,935
49,697
44,451
21,930
22% -100%
∆ 3q14 o 4q13
999
516
199
1,165
0
0
0
0
0
0
0
2,652
4,666
4,456
4,428
4,459
2,867
2,455
1,263
2,548
3,242
2,195
74%
104,811
77,361
92,698
85,338
82,551
95,977
79,577
103,355
117,802
73,314
72,515
-30% 112%
5,823
6,331
7,913
8,951
8,018
8,697
6,925
8,739
8,668
20,974
18,513
221,382
256,499
301,527
314,577
347,044
316,223
311,728
332,538
311,850
325,045
347,675
5%
TAX ASSETS - CURRENT
5,325
651
1,622
6,851
7,273
5,166
6,024
5,827
5,772
1,952
1,919
-67%
NON CURRENT ASSETS
382,420
402,711
442,510
397,594
396,059
409,874
410,542
423,345
410,387
413,430
442,181
4%
10,694
10,440
10,289
11,378
11,378
11,378
11,378
11,378
11,378
11,378
11,378
0%
1,261
1,229
1,256
1,190
1,117
1,052
1,071
1,013
933
857
790
-22%
BIOLOGICAL ASSETS - CURRENT - INVENTORY
OTHER FINANCIAL ASSETS - NON CURRENT OTHER NON FINANCIAL ASSETS - NON CURRENT DOCUMENTS RECEIVABLES - NON CURRENT ACCOUNTS RECEIVABLES WITH RELATED COMPANIES - NON CURRENT INVESTMENTS USING PARTICIPATION METHOD
150
150
150
150
150
150
150
150
150
150
150
0%
1,580
1,580
1,794
1,883
1,972
2,018
2,105
2,222
2,380
2,670
2,812
27%
4,179
4,938
4,187
3,595
3,482
3,727
3,737
1,413
1,339
1,403
1,164
-18%
INTANGIBLE ASSETS
38,250
37,052
37,167
38,962
37,479
37,652
37,712
40,728
40,707
40,676
40,856
0%
GOODWILL
51,448
51,448
53,247
54,989
59,349
59,423
59,314
54,989
54,989
54,989
54,989
0%
PROPERTIES, PLANTS & EQUIPMENTS
173,749
186,115
200,277
200,229
201,630
204,053
202,376
234,017
230,203
228,224
228,067
-3%
BIOLOGICAL ASSETS - NON CURRENT
27,192
26,789
27,533
27,174
23,395
27,062
28,409
26,251
20,515
23,715
24,019
-9%
ASSETS BY DEFERRED TAX
73,917
82,970
106,610
58,044
56,107
63,359
64,290
51,184
47,793
49,368
77,956
52%
TOTAL ASSETS
827,718
812,801
913,333
831,826
882,589
850,005
831,277
893,002
906,724
882,408
906,929
2%
CURRENT LIABILITIES
146,755
125,350
175,516
176,554
200,549
214,043
195,261
221,375
224,698
309,574
307,567
39% 312%
OTHER FINANCIAL LIABILITIES, CURRENT
13,197
11,799
12,820
9,111
11,259
25,253
31,409
31,579
34,251
128,546
129,970
122,178
104,776
150,259
154,237
172,493
159,021
134,733
167,311
164,011
160,296
160,873
-4%
ACCOUNTS PAYABLES WITH RELATED COMPANIES - CURRENT
3,190
6,169
9,106
10,437
13,943
25,551
23,714
20,340
19,605
18,004
16,108
-21%
LIABILITIES FOR CURRENT TAXES
5,536
684
1,006
314
189
11
0
1,896
1,964
23
38
-98%
373
387
473
226
469
518
592
249
700
721
578
132%
2,281
1,535
1,852
2,229
2,196
3,689
4,813
0
4,167
1,984
0
0%
NON CURRENT LIABILITIES
228,153
252,356
312,720
258,739
290,840
272,680
274,664
268,149
267,681
163,534
173,965
-35%
OTHER FINANCIAL LIABILITIES, NON CURRENT
185,469
198,773
251,882
251,705
281,356
266,039
266,446
262,894
262,812
158,949
158,915
-40%
OTHER ACCOUNTS PAYABLE - NON CURRENT
2,879
2,779
1,034
941
1,151
1,020
1,018
1,267
1,125
1,048
967
-24%
0
0
0
0
0
0
0
0
0
0
0
0%
39,805
50,804
59,804
6,093
8,332
5,621
7,200
3,988
3,744
3,537
14,083
253%
TOTAL LIABILITIES
374,908
377,706
488,236
435,293
491,389
486,723
469,925
489,524
492,379
473,108
481,532
-2%
EQUITY
431,228
414,012
404,099
387,654
382,443
354,309
352,709
394,173
405,205
400,113
416,401
6%
21,582
21,083
20,998
8,879
8,757
8,973
8,643
9,305
9,140
9,187
8,996
-3%
827,718
812,801
913,333
831,826
882,589
850,005
831,277
893,002
906,724
882,408
906,929
2%
ACCOUNTS PAYABLE - CURRENT
PROVISIONS FOR EMPLOEYEE BENEFITS - CURRENT OTHER NON FINANCIAL LIABILITIES - CURRENT
OTHER PROVISIONS - NON CURRENT LIABILITIES BY DEFERRED TAX
MINORITY INTEREST TOTAL EQUITY AND LIABILITIES Source: AquaChile
19
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED INCOME STATEMENT 2012 figures in thus$
2013
2014
1q12
2q12
qt12
4q12
1q13
2q13
3q13
4q13
1q14
2q14
3q14
157,855
99,839
95,743
56,101
151,563
192,532
191,393
202,387
225,791
171,737
157,935
-17%
-126,938
-92,874
-100,839
-67,443
-164,948
-195,922
-184,697
-175,286
-178,639
-147,646 -147,086
-20%
30,917
6,966
-5,096
-11,342
-13,385
-3,389
6,695
27,102
47,152
OTHER COST AND OPERATING EXPENSES (2)
-6,048
-6,674
-6,597
-6,415
-7,853
-8,497
-8,261
-7,912
EBITDA PRE FV ADJ.
24,870
292
-11,693
-17,757
-21,238
-11,886
-1,566
19,190
SALES OPERATIONAL COST (1) OPERATIONAL MARGIN
DEPRECIATION & AMORTIZATION EBIT PRE FV ADJ. NET REVENUES FROM BIOLOGICAL ASSETS (3)
∆ qoq
24,091
10,849
62%
-8,022
-9,061
-8,358
1%
39,130
15,030
2,491
-
-4,811
-3,927
-3,597
-4,066
-5,927
-7,875
-6,384
-7,287
-8,140
-7,122
-7,010
10%
20,060
-3,635
-15,290
-21,823
-27,166
-19,761
-7,950
11,902
30,990
7,908
-4,519
-43%
-22,899
-10,582
-7,037
-3,774
25,540
-10,810
8,246
24,716
-15,572
-12,486
2,316
-72%
EBIT POST FV ADJ.
-2,840
-14,217
-22,327
-25,597
-1,625
-30,571
296
36,619
15,418
-4,578
-2,203
-
FINANCIAL EXPENSES
-12%
-2,050
-1,949
-2,247
-2,243
-2,065
-2,324
-2,201
-2,679
-2,328
-2,259
-1,937
FINANCIAL INCOME
1,208
-132
-99
1,568
210
121
96
162
134
195
123
28%
OTHER NON OPERATING ITEMS (4)
-582
755
-11
2,756
-226
-4,832
214
-1,151
1,231
-86
1,944
809%
INCOME TAXES
5,979
-1,906
14,684
6,091
-1,602
9,683
-335
-7,241
-3,310
1,684
13
-
NET INCOME
1,714
-17,448
-9,998
-17,424
-5,308
-27,924
-1,930
25,709
11,146
-5,045
-2,060
7%
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 10 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
20
HISTORICAL HARVESTS AND SMOLTS STOCKING
HISTORICAL HARVESTS 2011 wfe tons
2012
2011
real
1q12
2q12
real
real
2013
3q12
4q12
real
real
2012
real
2014
1q13
2q13
3q13
4q13
real
real
real
real
2013
1q14
2q14
3q14
real
real
real
real
∆ qoq
2014/2013
ATLANTIC SALMON
15,224
2,181
3,873
6,120
4,959
17,132
7,527
16,529
15,249
13,814
53,119
14,720
10,108
17,636
16%
TROUT
26,458
10,367
7,661
7,424
7,652
33,104
11,876
5,298
5,780
5,186
28,139
11,073
5,784
4,697
-19%
PACIFIC SALMON
25,578
13,801
0
648
20,124
34,574
9,407
0
12
11,575
20,994
11,122
0
0
-100%
TOTAL SALMONIDS
67,260
26,350
11,534
14,192
32,735
84,810
28,810
21,827
21,041
30,574
102,252
36,915
15,892
22,332
6%
TILAPIA COSTA RICA & PANAMA TOTAL SALMONIDS AND TILAPIA
17,232
5,368
5,607
5,359
5,007
21,341
6,074
6,627
6,485
4,620
23,806
5,633
4,853
4,493
-31%
84,492
31,718
17,141
19,551
37,742
106,151
34,884
28,454
27,525
35,195
126,058
42,548
20,745
26,826
-3%
Source: AquaChile
HISTORICAL SMOLTS STOCKING 2011
2012
2013
2011
1q12
2q12
ATLANTIC SALMON
10,647
5,668
TROUT
16,675
4,456
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
thousands smolts
PACIFIC SALMON TOTAL SALMONIDS
real
real
3q12
4q12
2012
2,392
4,174
3,665
15,899
4,486
4,481
2,770
2,789
14,495
2,040
real
real
real
real
1q13
real
2q13
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. Forwardlooking 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.
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