EMPRESAS AQUACHILE S.A. FOURTH QUARTER RESULTS 2015
March 2016
1.
About AquaChile
03
2.
Quarterly Summary
04
3.
Analysis of Results
06
4.
Balance Sheet Analysis
13
5.
Cash Flow Analysis
15
6.
Financial Covenants and Production Indicators
16
7.
Relevant Events
18
8.
Outlook
20
9.
Consolidated Balance Sheet
21
10.
Income Statement
22
11.
Historical Harvests and Smolts Stocking
23
2
ABOUT 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 operates in Chile, Costa Rica, Panama and the United States, selling and marketing their products worldwide. The company is made up of a group of companies that strategically enhance, farm, produce and market food. It employs more than 5,200 people in Chile, the United States, Costa Rica and Panama (as of 31 December 2015), and it is one of the largest producers of Trout and Pacific Salmon worldwide, 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 11.0% market share in 2015 in terms of exported net volumes (source: SalmonChile). The company has 150 aquaculture water licenses, giving them a solid base to grow and diversify. The company exports its products to more than 320 customers in more than 35 countries. The company is also an important Tilapia producer in Costa Rica and Panama, being one of the main suppliers of fresh Tilapia to the United States, with a 20% market share in 2014 (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
AquaChile reported sales of US$ 623.4 million on December 31, 2015. This is a 20% decrease in comparison to the same period in 2014 (Δ-US$ 155.8 million). At operating level the EBITDA pre fair value adjustment for December 2015 (this is before the value adjustment of the fish biomass at fair value) achieved US$ -57.0 million, which is lower than the US$ +78.4 million reported the previous year. The company presented a loss in December 2015 of US$ -99.4 million, this is lower than the US$ +1.4 million in profits reported during the same period the previous year.
The low sales reported for 2015 in comparison to the same period the previous year were mainly explained by the lower sales of Atlantic Salmon, Trout, Pacific Salmon and Tilapia that in all represent US$ 131 million, of which US$ 11.0 million were attributed to a lower sales volume (Δ -4,010 ton WFE) and US$ 120.0 million at a lower exporting sales price. The fish biomass currently in cultivation has shown lower mortality rates, good levels of growth and the marginal production costs have shown a low trend, in line with the strategy that the company follows, which is centered on increasing productivity and decreasing the indirect production costs.
04
QUARTERLY SUMMARY
The Company’s consolidated sales totalled US$ 150.8 million during the 4Q15, which represents a decrease of 33% in comparison with the valued sales reported for the 4Q14. During the fourth quarter there was a decrease in the sales price for all the species, and a decrease in physical sales of Trout (Δ-24%) and Pacific Salmon (Δ-59%) in comparison to the same period the previous year, which was not compensated for by the increase in physical sales of Atlantic Salmon (Δ+1%) and Tilapia (Δ+6%). The consolidated EBITDA reported a loss of US$ -17.2 million during the 4Q15, which can be compared to the US$ +21.8 million reported for the same period in 2014 due to a decrease in the margins of all the species, mainly explained by the low price adjustment.
AquaChile reported a US$ -30.5 million loss during the 4Q15, in comparison to the US$ -2.6 million loss reported during the same period the previous year. The decrease observed is mainly explained by the lower margin reported for all the species and the recognition of a loss caused by the valuation of the biomass fair value of US$ -9.0 due to low international prices during the period. The Company’s net financial debt totaled US$ 293.1 million for the 4Q15, showing a US$ 36.8 million increase in comparison to the close of the 4Q14. On July 23, 2015 the company subscribed for a new syndicated credit of up to US$ 290 million, and so far US$ 275.6 million has been withdrawn to prepay the total financial debt that was due on June 30, 2015 for the salmon segment of US$ 246 million and the rest was destined to guarantee an efficient and more effective administration of the stock in the present business cycle.
05
ANALYSIS OF RESULTS
SUMMARY OF MAIN CONSOLIDATED FIGURES figures in thus$ SALES EBIT PRE FV ADJ.
4q15
4q14
150,803
223,643
∆qoq acum 2015 acum 2014 -33%
623,366
779,106
∆yoy -20%
-27,100
13,637
-
-91,721
48,016
-
-17,218
21,793
-
-57,034
78,444
-
-11.4%
9.7%
-
-9.1%
10.1%
-
-30,491
-2,619
-1064%
-99,371
1,421
-
26,897
33,935
-21%
98,047
101,541
-3%
EBIT / KG WFE SALMON AND SEA TROUT
-0.89
0.45
-
-0.86
0.50
-
TILAPIA SALES - WFE TONS
3,904
3,694
6%
18,061
18,577
-3%
EBIT / KG WFE TILAPIA
-0.79
-0.46
-71%
-0.39
-0.13
-199%
(1)
EBITDA PRE FV ADJ. (2) EBITDA PRE FV ADJ. MARGIN NET INCOME SALMON AND SEA TROUT SALES - WFE TONS
(1) EBIT Pre FV Adj. (hereinafter, EBIT): Income from ordinary activities minus Sales Costs (i.e. Gross Earnings pre Fair value), Administration Expenses and Distribution Costs. All these figures are obtained directly from the company Income and Cash Flow Statements. (2) EBITDA Pre FV Adj. (hereinafter, EBITDA): Income from ordinary activities minus Sales Costs (i.e. Gross Earnings pre Fair value), Administration Expenses and Distribution Costs, plus Adjustment from Depreciation and Amortization Expenses. All these figures are obtained directly from the Income Statement and note 16 (PP&E) from the company Financial Statements. Source: AquaChile
The Sales Revenue for the quarter reached US$ 150.8 million, less than the US$ 223.6 million reported during the same period 2014. Sales revenue for the finished products of Atlantic Salmon decreased 21% (Δ-US$ 20.6 million), Trout by 38% (Δ-US$ 11.1 million), Pacific Salmon by 67% (Δ+US$ 31.1 million). and Tilapia by 5% (Δ-US$ 0.6 million). Added to the above is the decrease in revenues from
the “Other Business” segment (Δ-US$ 10.7 million). The last item is explained by the fall in third party sales of finished products and our own subsidery AquaChile INC.
06
ANALYSIS OF RESULTS
QUARTERLY SALES TREND (USD MILLIONS)
226 193 158
191
224
202 172
152 100
192 158
146
135
151
96 56
1Q12 2Q12
3Q12
4Q12 1Q13
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
1Q15
2Q15
3Q15
4Q15
QUARTERLY CONSOLIDATED SALES ANALYSIS (PRICE AND VOLUME EFFECT) (USD MILLIONS) Sales 4Q14
Atlántic Salmon
224
Sea Trout
Pasific Salmon
Tilapia
Fish feed
Other income
Sales 4Q15
1 -21
-5
-6
-8
1 -23
∆ Price
-1
1
151 -11
∆ Volume
07
ANALYSIS OF RESULTS
QUARTERLY EBITDA TREND (US$ MILLIONS)
39 25
22
19
15 5 2
0 -2 -12
-12 -18
-19
-21
-19
-17
-26
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
-2
-3
1Q15
2Q15
3Q15
4Q15
QUARTERLY NET INCOME TREND (US$ MILLIONS)
26
11 2 -2
-5
-5
-10 -17
-12
-17
-21 -28
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
-30
-36
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
08
ANALYSIS OF RESULTS
Consolidated EBITDA pre Fair Value adjustments 1(*) for the 4T15 reached US$ -17.2 million in comparison to the US$ +21.8 million for the same period the previous year. The reason for this decrease was the fall in the sales margins of all the species, affected mainly by the decrease in the export sales prices. Which is why the EBITDA margin (EBITDA over the revenues) reported during the 4Q15 is -11.4%, compared to 9.7% reported during the same period in 2014. During the fourth quarter of 2015 the company recognizes a US$ -9.0 million loss due to the “Net Effect of valuing the biomass at fair value�, which is higher than the US$ -5.9 million loss reported during the 4Q14. The reasons for this are mainly: i) recognition of an adjustment of the value of fish biomass being raised to US$ -34.92 million, lower than US$ +0.4 million reported for the same period the previous year, which is mainly due to lower market prices observed in Salmon and Trout (See Note 10, Biological Assets). This was partially offset by: i) the reporting of a higher cost from the effect of the fair value valuation of harvested
and sold biomass of US$ 22.1 million during the period, more than the US$ -2.7 million reported for the same period the year before, due mainly to the negative differences presented between the prices which valued the biological asset prices of Salmon and Trout during 2015, and the prices which valued the same two species during the same period in 2014; ii) the net reversal of a provision of a lower net realizable value for finished products carried out during the period of US$ 1.8 million, more than the US$ -3.5 million of the previous year; and iii) for the reversal of provision for a lower value of US$ +2.0 million for the harvest of the current biomass being reared, which was not necessary during 2014.
(*) 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.
1
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 fillet Trim D for Atlantic salmon and 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. 2
The sum includes US$-13.4 millon of reared fish biomass Fair Value at 31 December 2015
09
ANALYSIS OF RESULTS
ANALYSIS OF PHYSICAL SALES, VALUED, AND MARGIN BY SEGMENT 4q15
4q14
TON WFE
18,729
18,582
MUS$
79,116
99,701
4.22
5.37
figures in thus$
∆tot acum 15 acum 14
∆ y oy
ATLANTIC SALMON SALES VOLUME SALES AVERAGE PRICE EBIT EBIT / KG WFE
US$ / KG WFE MUS$
1%
65,522
54,335
-21% 306,438
21%
318,527
-4%
4.68
5.86
-20%
- -64,480
-21%
-21,097
3,884
13,841
-
US$ / KG WFE
-1.13
0.21
-
-0.98
0.25
-
TON WFE
4,113
5,406
-24%
20,105
23,182
-13%
18,217 29,293
-38%
90,134
140,395
-36%
-18%
4.48
6.06
-26%
SEA TROUT SALES VOLUME SALES AVERAGE PRICE EBIT EBIT / KG WFE
MUS$ US$ / KG WFE
4.43
5.42
MUS$
-2,146
767
-
-21,710
16,534
-
US$ / KG WFE
-0.52
0.14
-
-1.08
0.71
-
TON WFE
4,056
9,947
-59%
12,419
24,023
-48%
15,580 46,699
-55%
PACIFIC SALMON SALES VOLUME SALES AVERAGE PRICE EBIT EBIT / KG WFE
MUS$ US$ / KG WFE MUS$
-67%
51,452
114,396
4.69
-18%
4.14
4.76
-13%
-791 10,680
-
1,551
20,079
-92%
3.84
US$ / KG WFE
-0.19
1.07
-
0.12
0.84
-85%
TON WFE
3,904
3,694
6%
18,061
18,577
-3%
MUS$
10,754
11,308
-5%
51,523
57,213
-10%
2.75
3.06
-10%
2.85
3.08
-7%
MUS$
-3,066
-1,695
-81%
-7,080
-2,438
-190%
US$ / KG WFE
-0.79
-0.46
-71%
-0.39
-0.13
-199%
-18%
116,108
120,117
-3%
-34% 499,547
630,531
-21%
TILAPIA SALES VOLUME SALES AVERAGE PRICE EBIT EBIT / KG WFE
US$ / KG WFE
The Atlantic Salmon business saw a 21% decrease (Δ-US$ 20.6 million) in its income during the 4Q15 in comparison to the same period 2014, due to a 21% decrease in the sales price which could not be compensated by the 1% increase in the sales volume (Δ+147 Ton WFE). On its part the EBIT Pre FV Adj. showed a US$ -21.1 million loss in comparison to the US$ 3.9 million reported during the same period 2014. At unit level, the EBIT Pre FV Adj. / Kg WFE reached US$ -1.13 / Kg WFE (in comparison to the US$ -0.21 / Kg WFE for the same time the previous year). The negative margin reported is explained mainly by the decrease in the export price. .
The Sea Trout business saw a 38% (Δ-US$ -11.1 million) decrease during the 4Q15 in comparison to the same period 2014, due to: i) a 24% decrease in sales volume (Δ-1,294 Ton WFE), and ii) an 18% decreasae of the average sales price. As for the EBIT Pre FV Adj., it presented a US$ -2.1 million loss in comparison to the US$ +0.7 million reported for the same period 2014. At unit level, the EBIT Pre FV Adj. / Kg WFE reached US$ -0.52 / Kg WFE (in comparison to the US$ +0.14 / Kg WFE the same time last year). The observed decrease in margins is due to the decrease in the export price and to a smaller measure the increase in the sales cost in comparison to the same period the previous year.
The Pacific or Coho Salmon business saw a 67% decrease (Δ US$ -31.1 million) during the 4Q15 in comparison to the same period 2014, due to: i) a 59% (∆-5,892 Ton WFE) decrease in the sales volume, and ii) a 18% decrease in the average sales price. For its part, the EBIT Pre FV Adj. demonstrated a US$ -0.8 million loss, in comparison to the US$ +10.7 million reported for the same period 2014. At unit level, the EBIT Pre FV Adj. / Kg WFE reached US$ -0.19 / Kg WFE (in comparison to the US$ +1.07 / Kg WFE the same period the previous year).
The Tilapia business saw a 5% (Δ US$ -0.6 million) decrease in its income during the 4Q15 in comparison to the same period 2014, due to a 10% decrease in the sales price that could not be compensated by the 6% increase (Δ+211 Ton WFE) in the sales volume. The EBIT Pre FV Adj. showed a US$ -3.1 million loss in comparison to the US$ -1.7 million reported during the same period 2014. At unit level the EBIT Pre FV Adj. / Kg WFE reached US$ -0.79 / Kg WFE (in comparison to the US$ -0.46 / Kg WFE the same time the previous year). The decrease observed in the margins is explained mainly by the decrease in the international export price.
TOTAL SALES VOLUME SALES AVERAGE PRICE EBIT EBIT / KG WFE Source: AquaChile
TON WFE
30,801 37,629
MUS$
123,667 187,000
US$ / KG WFE MUS$ US$ / KG WFE
4.02
4.97
-19%
4.30
5.25
-18%
-27,100
13,637
-
-91,721
48,016
-
-0.88
0.36
-
-0.79
0.40
-
10
ANALYSIS OF RESULTS
CONSOLIDATED INCOME STATEMENT figures in thus$ SALES OPERATIONAL COST
(1)
OPERATIONAL MARGIN OTHER COST AND OPERATING EXPENSES (2)
4q15
4q14
∆tot acum 2015
acum 2014
∆yoy
150,803
223,643
-33%
623,366
779,106
-20%
-161,109
-193,240
-10,307
30,403
-17%
-647,895
-665,880
-3%
-
-24,528
113,226
-
-6,911
-8,610
-20%
-32,505
-34,781
-7%
-17,218
21,793
-
-57,034
78,444
-
% EBITDA / Sales
-11.4%
9.7%
-9.1%
10.1%
DEPRECIATION & AMORTIZATION
-9,882
-8,156
21%
-34,687
-30,428
14%
-27,100
13,637
-
-91,721
48,016
-
EBITDA PRE FV ADJ.
EBIT PRE FV ADJ. NET REVENUES FROM BIOLOGICAL ASSETS (3) EBIT POST FV ADJ. FINANCIAL EXPENSES FINANCIAL INCOME OTHER NON OPERATING ITEMS INCOME TAXES
(4)
-8,991
-5,864
-53%
-28,779
-31,606
9%
-36,091
7,773
-
-120,500
16,411
-
-3,441
-2,119
62%
-11,712
-8,643
36%
145
143
1%
568
595
-4%
-699
-4,852
86%
796
-1,764
-
9,595
-3,565
-
31,477
-5,178
-
NET INCOME
-30,491
-2,619
-1064%
-99,371
1,421
-
% Net Income / Sales
-20.2%
-1.2%
-15.9%
0.2%
(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
Operating Costs totalled US$ 161.1 million in the quarter, 17% lower than that achieved in 4Q14, the reason for this being the decrease in sales price. Furthermore, if you compare this to the operational costs (measured as a percentage over sales), it reached 107% of revenues, 20 percent above that reported for 4Q14 mainly associated to the decrease in international prices. THE NET 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$ -32.9 million loss during the 4Q15, (US$ +0.4 million loss reported for the 4Q14). This concept can be broken down in the following manner: i) US$ -34.9 million (US$ +0.4 million reported during 4Q14) corresponds to “Value adjustment for the fish biomass being raised”; and ii) US$ +2.0 million (US$ 0 million during the 4Q14) corresponds to the reversal of a provision of a lower net disposal value of the harvesting of the fish that are currently being reared. The higher cost of the harvested and sold fish from this revaluation is reported in the Income statement under the concept “Fair Value of harvested and sold biological assets” which saw a US$ +23.9 million profit for the 4Q15 (US$ -6.2 million for the 4Q14). This is broken down in the following manner: i) US$ +22.1 million (US$ -2.7 million during the 4Q14) corresponds to a higher cost per fair value of the harvested and sold biological assets; and ii) US$ +1.8 million (US$ -3.5 million in the 4Q14) corresponds to the net reversal provision for the lower net disposal value of the finished products for this period.
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$ -9.0 millon in the 4Q15. This being higher than the US$ -5.9 millon reported for the 4Q14. Other Operating Costs and Expenses showed a 20% decrease in comparison to the same period of the previous year. In effect, the distribution Costs presented a 10.4% decrease and Administration Expenses had a 33.6% decrease. N o n - o p e ra ti n g Re s u lt s T h e q u a rter sh owed a US$ -4.0 million loss in comparison to the US$ -6.8 million loss reported for the same period the previous year. E xp e n se fo r I n co m e Tax p re sented cred i t fo r US$ 9.6 millon which compares positively to the credit of US$ -3.6 millon for the same period the previous year. The company reported a loss of US$ -30.5 millon compared to the loss of US$ -2.6 millon reported for the same period in 2014.
12
BALANCE SHEET
CONSOLIDATED BALANCE
2013 figures in thus$
2014
2015
1q13
2q13
3q13
4q13
1q14
2q14
3q14
4q14
1q15
2q15
3q15
4q15
∆4q15 o 4q14
CURRENT ASSETS
486,530
440,131
420,735
469,657
496,337
468,978
464,748
473,706
432,476
386,987
383,470
349,760
-26.2%
NON CURRENT ASSETS
396,059
409,874
410,542
423,345
410,387
413,430
442,181
425,459
433,614
440,680
437,043
439,536
3.3%
TOTAL ASSETS
882,589 850,005
831,277 893,002
906,724
882,408
906,929
899,165 866,090
827,667
820,513
789,296
-12.2%
CURRENT LIABILITIES
200,549
214,043
195,261
221,375
224,698
309,574
307,567
327,668
309,857
321,393
173,036
447,187
36,5%
NON CURRENT LIABILITIES
290,840
272,680
274,664
268,149
267,681
163,534
173,965
150,089
146,500
132,450
294,949
20,072
-86.6%
TOTAL LIABILITIES
491,389 486,723 469,925 489,524
492,379
473,108
481,532
477,757
456,357
453,843
467,985
467,259
-2.2%
EQUITY
382,443 354,309 352,709
394,173
405,205
400,113
416,401
413,105
401,584
366,060
345,328
315,529
-23.6%
9,305
9,140
9,187
8,996
8,303
8,149
7,764
7,200
6,508
-21.6%
831,277 893,002
906,724
882,408
906,929
899,165 866,090
827,667
820,513
789,296
-12.2%
MINORITY INTEREST
TOTAL EQUITY AND LIABILITIES
8,757
8,973
882,589 850,005
8,643
Source: AquaChile
Current Assets presented a 26.2% decrease (Δ-US$ 123.9 million) in comparison to the observed numbers of the 4Q14. This is mainly explained by: i) a US$ 80.0 million decrease in the “Current Biological Assets” associated to the harvest and sale of salmon during the period to the lower valorization at fair value of the biomass that is being reared reported for December 2015 in comparison to December 2014 and to the provisión of US$ -3.7 million for the lower realization value at harvest of the biomass that is currently being reared, not valued at fair value, ii) a US$ 39.5 million decrease in the “Trade and other receivable accounts, bank accounts” mainly associated with the sales made during the 4Q15 in comparison to the 4Q14; and iii) a US$ 10.0 million decrease in the Account “Cash and Cash Flow Equivalent”.
Non-current Assets presented a 3.3% increase (Δ+US$ 14.1 million) in comparison to the observed numbers of the 4Q14. This is mainly explained by an increase of US$ 33.2 million in the “Assets of the Deferred Taxes” account and was partially compensated by decreases of US$ 15.1 million and US$ 4.2 million in the “Properties, plants and equipment” and “Non-current Biological Assets” accounts respectively. The Current Liability showed a 36.5% decrease (Δ+US$ 119.5 million) in comparison with the observed numbers of the 4Q14. This is explained by an increase of US$ 157.1 million in the “Other current financial liabilities” account associated to restructuring the financial debt taken place on July 23, 2015, which was partially compensated for by the decrease of US$ 36.1 million in the “Trade payables and other accounts payable”. 13
BALANCE SHEET
The Non-current Liability showed a decrease of 86.6% (Δ-US$ 130.0 million) in comparison to the numbers observed for the 4Q14. This is mainly explained by a decrease of US$ 130.5 million in the “Other Non-current Financial Liabilities” account associated to the restructuring of the financial debt taken out on July 23, 2015. Total Equity (including the non-controlling interests) of the company, had a US$ -99.4 million decrease associated to the accumulated loss of the period.
FINANCIAL DEBT 2013 figures in thus$ (I) OTHERS FINANTIAL LIABITIES CURRENT
2014
1q13 2q13
3q13
4q13
11,259
31,409
2015
2q14
3q14
4q14
1q15
2q15
3q15
4q15
∆4q15 o 4q14
31,579
34,251
128,546
129,970
132,477
136,232
148,192
15,927
289,769
118.7%
(II) OTHERS FINANTIAL LIABITIES NON CURRENT
281,356 266,039 266,446 262,894
262,812
158,949
158,915
143,312
138,935
125,527
288,443
12,806
-91.1%
TOTAL INTEREST BEARING DEBT (I) + (II)
292,615 291,293 297,854 294,473
297,063 287,495 288,885 275,789
275,167
273,719
304,370 302,574
9.7%
19,483
24,507
14,461
11,622
9,446
-51.5%
247,366 243,044 266,955 256,305
250,661
259,258
292,747
293,129
14.4%
CASH AND CASH EQUIVALENTS NET INTEREST BEARING DEBT
37,185
25,253
1q14
11,201
14,026
17,935
255,430 280,091 283,828 276,537
49,697
44,451
21,930
Source: AquaChile
AquaChile’s Net financial debt reached US$ 293.1 million, higher than the US$ 256.3 million reported on December 31, 2014
14
CASH FLOW ANALYSIS
CONSOLIDATED CASH FLOW
figures in thus$
2015
2014
NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES
-5,834
53,696
NET CASH FLOWS FROM (USED IN) INVESTMENT ACTIVITIES
-22,762
-26,811
19,069
-24,527
NET INCREASE (DECREASE) OF CASH AND CASH EQUIVALENTS
-10,037
1,548
CASH AND CASH EQUIVALENT AT THE START OF THE PERIOD
19,483
17,935
9,446
19,483
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD Source: AquaChile
The behavior of the main consolidated Cash Flow components on December 31, 2015 in comparison to December 31, 2014 is the following:
The investment activity meant an expenditure of US$ -22.8 million on December 31, 2015. For the same period the previous year the expenditure was US$ -26.8 million.
The company presented a total net cash flow of US$ -10.0 million on December 31, 2015. At the same time the previous year a US$ +1.5 million cash flow was reported.
Financing activities generated a US$ +19.1 million net cash flow on December 31, 2015. During the same period the previous year the company presented a net expenditure of US$ -24.5 million.
The operating activities on December 31, 2015 generated a US$ -5.8 million cash flow, less than the US$ +53.7 million reported for the same period 2014.
15
COVENANTS AND PRODUCTION INDICATORS
FINANCIAL COVENANTS In the month of June 2015, Empresas AquaChile S.A. signed an agreement with a group of crediting banks – led by Rabobank – regarding the main terms and conditions for a new syndicated credit. To improve on this Empresas AquaChile S.A. and its subsidery on June 23, 2015 agreed with their current crediting banks to renew the 30 day installments of the tranches of the company’s bank debt that expires on that day for US$ 122,539,638, agreeing to pay this at the end of the referred time limit plus on that day, they will prepay all the rest of the debt that expires in 2018. The new credit considers a financing of US$ 290,000,000 which was used to pay all the bank debt of the salmon segment on July 23, 2015 for the amount of US$ 246,289,638.
ter to restructure on time all the company’s debt at long term under more favorable market conditions with the expectation of a more stable international market. New financial obligations have been defined with the signing of this new credit contract on July 23, 2015 calculated over the Consolidated Financial Statements of Empresas AquaChile S.A. on June 30, 2015, and on March 31st, June 30th, September 30th, and December 31st of the following years in reference to the Equity ratio levels, Net Adjusted Financial Debt (NIBD Adjusted / EBITDA Adjusted, the liquidity level, and the Maximum Debt levels, as shown in the following:
Having this additional generated credit available allows a needed flexibility to guarantee a more efficient and effective management of the stocks in the current business cycle; to include a bilateral convenience that already exists with the DnB Bank Agency in Chile, with the same credit structure; to reduce the number of crediting banks; and lafinancial covenants*
2q-15
3q-15
4q-15
1q-16
2q-16
3q-16
4q-16
EQUITY RATIO1
42.5%
42.5%
42.5%
42.5%
42.5%
42.5%
42.5%
NIBD ADJUSTED / EBITDA ADJUSTED2
5.75X
7.25X
7.5X
5.0X
4.5X
4.5X
4.5X
LIQUIDITY3
1.2X
1.2X
1.2X
1.2X
1.2X
1.2X
1.2X
MAXIMUM DEBT (M US$)4
320
320
320
320
320
320
320
(1) Equity Ratio: Ratio between the consolidated cash accounts called “Total Equity” and “Total Assets”; (2) NIBD Adjusted / EBITDA Adjusted: the result of adding the following accounts to the consolidated balance: /a/ Other financial liabilities, current; plus /b/ Other financial liabilities, non-current; plus /c/ Liabilities with suppliers with more than 120 days of duration minus /d/ the cash and cash equivalent. All of the above without considering any financial liability, whether current or noncurrent, suppliers with more than 120 days of duration and cash and cash equivalent of Group ACl and Alitec S.A.. All of the above divided by the EBITDA Adjusted of the last 12 months defined as a result of the following operation: /a/ Total Sales; minus /b/ Sales cost; minus /c/ Administration expenses; minus /d/ Distribution expenses; and plus /e/ Depreciation and amortization expenses, excluding the following consignments /a/, /b/, /c/, /d/ and /e/ of the Group ACl S.A. and Alitec S.A. (3) Liquidity: All of the current assets divided by the total of the current liabilities, excluding from this last one the sum of the indebted amounts under the Restructured Obligations, and excluding from the current asset the fish biomass that is not considered in the harvesting plans of the next following twelve months to the corresponding Measurement Date. (4) Maximum Debt: Corresponds to the sum of the following accounts from the Consolidated Balance: /a/ Other financial liabilities, current; and /b/ Other financial liabilities, non-current.
Considering that lately the international export prices for the salmonid species have been kept at a low level, the operational results in December 2015 have been affected and the accumulated EBITDA has become insufficient during the last twelve months to comply with the covenants
of the NIBD Adjusted / EBITDA Adjusted. Having an adequate quorum the banks were able to authorize not measuring the ratio of the NIBD Adjusted / EBITDA Adjusted for the 4Q15.
16
measure as of december, 31th: EQUITY RATIO CURRENT LIQUIDITY MAX DEBT
The company and the owing companies have given a complete compliance to the determined obligations on December 31, 2015 and they have kept all of the substantial
2015
covenant
40.8%
> O IQUAL 42.5%
ACCOMPLISH
1.98
> O IQUAL TO 1.2X
ACCOMPLISH
302.6
< O IQUAL US$ 320 MM
ACCOMPLISH
aspectsof the statements and decided insurances in the Contract for Reprogramming the Liabilities.
PRODUCTIVE INDICATORS 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*
status
# TONS WFE
4q15
4q14 acum 15
acum 14
36,639
32,886
108,857
19
13
46
40
1,928
2,530
2,366
2,701
33
40
33
40
1,110
822
3,299
2,701 5.80
108,025
FARMING DENSITY** ATLANTIC SALMON
KG / M3
6.10
5.80
6.10
PACIFIC SALMON
KG / M3
10.40
7.90
10.40
7.90
SEA TROUT
KG / M3
6.00
4.90
6.00
4.90
SURVIVAL CLOSED GROUP*** ATLANTIC SALMON
%
90%
86%
87%
86%
PACIFIC SALMON
%
89%
95%
92%
89%
SEA TROUT
%
82%
86%
84%
86%
* Corresponds to fish farms that were in use at the end of the analyzed period. ** Farming density for sea licenses with sea farming. *** Survival rate of the closed farmed fish groups. Source: AquaChile
The company presented a Salmon and Trout harvest (in tons WFE) / harvested farm sites or in harvest ratio during the fouth quarter of 1,928 Tons WFE. Farming densities on December 31, 2015 at the aquaculture grow-out sea licenses per species are the following: i) Atlantic salmon: 6.1 Kg/ m3; ii) Pacific salmon: 10.4 Kg/ m3; and iii) Trout: 6.0 Kg/m3. On the other hand, Survival rates observed in the groups that closed during 4Q15 were the following: i) Atlantic Salmon: 90%; ii) Pacific Salmon: 89% and iii) Trout: 82%.
17
RELEVANT EVENTS
RELEVANT EVENTS
On January 19, 2015 an Essential Fact was sent communicating that the Company had subscribed a memorthe Coof understanding (the CTA) with the Norwegian Company Marine Harvest ASA (“Marine Harvest”) with the objective of going forward with the agreements and necessary proceedings to merge Marine Harvest Chile S.A. (“Marine Harvest Chile”), Chilean affiliate of Marine Harvest, with Empresas AquaChile S.A. (“AquaChile”), this last one being the surviving entity (henceforth the “Operation”) in agreeing to the stipulated terms and conditions of the CTA. In virtue of the Operation, Marine Harvest Chile is going to merge by incorporation to AquaChile including the recently acquired assets of Acuinova. Immediately after the potential merge, the current shareholders of AquaChile will be owners of 57.2% of the combined entity’s shares and Marine Harvest will be owner of 42.8% of this entity’s shares. Under the context of the potential merge, Marine Harvest has accepted to keep its shareholding participation in the combined entity up to June 15, 2016. After this, from June 15, 2016 to June 15, 2017, Marine Harvest will have the option of acquiring a higher percentage of the AquaChile’s shares through a public acquisition offer (“OPA”) which allows them a minimum of 55% of all AquaChile’s shares. The Price of this OPA will be the highest between US$0.8856 per share and the market price for the AquaChile share at the moment of the OPA. The minimum price of US$0.8856 per share represents an award of approximately 41% in comparison to the pondered average of AquaChile’s share during the last 30 days before this day. On their part, Inversiones Patagonia Limitada, Holding Salmones S.A. and Inversiones Acuícolas S.A., entities where the Puchi and Fischer families currently have a 33.03% of AquaChile, each one, have accepted the promise to sell a sufficient number of shares at the OPA to assure Marine Harvest 55% of the combined entity, if the OPA is launched. The respective obligations of keeping the share participation of Marine Harvest and the sale in the OPA of Inversiones Patagonia Limitada, Holding Salmones S.A. and Inversiones Acuicolas S.A. will be closed after June 15, 2017. Additionally, Marine Harvest ASA, Inversiones Patagonia Limitada, Holding Salmones S.A. and Inversiones Acuícolas S.A. will subscribe a definite document with which, up to June 15, 2017, Inversiones Patagonia Limitada and Holding Salmones S.A. and Inversiones Acuícolas S.A. will have the right to vote on the amount of shares owned by Marine
Harvest that would be necessary for them to choose the majority of the Board of Directors of the combined entity. In virtue of this disposition Marine Harvest, Inversiones Patagonia Limitada, Holding Salmones S.A. and Inversiones Acuícolas S.A. will be members of a controlling group with a joint action agreement. Furthermore, Mr. Victor Hugo Puchi will remain President of the combined entity and will lead the current administration teams in the process of the potential merge and combined business. In conforming to the CTA, the potential merge will be subjected – in addition to the respective agreement of the shareholders meeting of AquaChile – to an agreement being made between the parties related to the definite document of the Operation; to the approval of its respective Board of Directors; and in the case of AquaChile their shareholders; to a reciprocal due diligence process for both Companies; and, to the approval of the relevant authorities. The parties expect that the Operation will be concreted during the third quarter 2015. On April 22, 2015 the Essential Fact was sent informing about the eruption of the Calbuco Volcano. It was informed that the company’s personnel were safely evacuated, and that the facilities of Empresas AquaChile S.A. and its affiliates did not record any damages. On April 30, 2015 the Ordinary Shareholders’ Meeting was held where the following agreements were adopted: The Annual Minutes, Balance, Financial Statements and report from the External Auditing Company for the year concluded on December 31, 2014 were approved; the members that were elected to form the Board were Mr. Victor Hugo Puchi Acuña, Mr. Humberto Fischer Llop, Mr. Mario Puchi Acuña, Mr. Claudio Fischer Llop, Mr. Alejandro Pérez Rodriguez, Mr. Piero Solari Donaggio and also Ms. Pilar Lamana as an independent; the remuneration of the members of the Board was fixed for 2015 and the expense account of the Board for 2014 approved; the remuneration for the members and the budget of the Board of Directors Committee for 2015 were fixed; PricewaterhouseCoopers were desig nated as the external independent auditors for examining the accounts, inventory, balance and financial statements for 2015; the El Mostrador Newspaper was designated for the company’s publications. On April 30, 2015 an Essential Fact was sent informing that in the Board of Director’s Meeting held on April 30, 2015 it 18
RELEVANT EVENTS
was agreed to elect Mr. Victor Hugo Puchi Acuña as President of the Board of Empresas AquaChile S.A.. At the same meeting, the Independent Director Ms. Pilar Lamana Gaete proceeded to appoint the directors Mr. Huberto Fischer Llop and Mr. Alejandro Pérez Rodriguez, together with her, to form the Committee of Directors of the Company in accordance with the provisions of Article 50bis of Law Nº 18.046. On June 9, 2015 an Essential Fact was sent to inform that the possible merge operation with Marine Harvest Chile was cancelled by mutual consent since neither parties could reach a definite agreement. This possible merge was subject to a series of condition precedents, which includes concluding final agreements, a satisfactory conclusion of the due diligence from both parties and the approval of the relevant authorities. AquaChile firmly believes in the importance of consolidating the Chilean salmon industry and they will continue in this endeavor. In the month of June 2015, Empresas AquaChile S.A. signed an agreement with a group of crediting banks – led by Rabobank – regarding the main terms and conditions for a new syndicated credit. To improve on this Empresas AquaChile S.A. and its subsidery on June 23, 2015 agreed with their current crediting banks to renew the 30 day installments of the tranches of the company’s bank debt that expires on that day for US$ 122,539,638, agreeing to pay this at the end of the referred time limit plus on that day, they will prepay all the rest of the debt that expires in 2018. The new syndicated credit – on the date that this is published has already been refined - considers a financing of up to US$ 290,000,000 and, on July 23, 2015, was agreed to pay the totality of the bank debt of US$ 246,289,638. The availability of this additional credit generated, allows the necessary flexibility to ensure efficient and more effective management of inventories in the present business cycle.
On 23 March 2016 an Essential Fact was sent communicating that due to the recent harmful algal bloom (HAB), the company’s centers Capera, Herradura, Guar Island and Huenquillahue, located in the Seno de Reloncaví, (Barrio No. 2) and Sotomó located in the Reloncaví Estuary (Barrio No. 1), all in the 10th Region, have been significantly affected by fish mortalities. Due to this situation the resulting loss to date has reached a total of 4.7 million units, equivalent to 9,398 tons of biomass, with an estimated value of MUS $ 43,312. Production centers do not have insurance against this risk. The company and its subsidiaries recorded on February 29, 2016 a total of 33 sea production centers with approximately 26 million fish of different species, with a biomass value of MUS $ 182. The loss represents approximately, according to current estimates, 24.6% of the tons of biomass being reared by the company and a value equivalent to 22% of this. Faced with this situation, the company has activated contingency and mitigation plans for situations of this nature, to ensure full compliance with norms and environmental and health regulations imposed by the competent authority for such events.
At the same meeting, the indebted companies made a novation of their loans thus concentrating the new debts in this contract to Empresas AquaChile S.A. making itself the only new debtor.
19
OUTLOOK
GROWTH IN THE HARVESTING VOLUME PROJECTED FOR THE 4Q16 - A decrease of 10% in total harvests in comparison with the same period the previous year - A decrease of 9% in Salmonid harvests in comparison with the same period the previous year - A decrease of 14% in Tilapia harvests in comparison with the same period the previous year The harvesting plans for the first quarter 2016 project 28,572 tons WFE of Salmon and Trout, and 4.230 tons WFE of Tilapia.
HISTORICAL AND PROJECTED HARVESTS 2011
2012
2013
2015
2014
2016
1q15
2q15
3q15
4q15
2015
1q16e
tons wfe
Real
Real
Real
Real
Real
Real
Real
Real
Real
Projected
ATLANTIC SALMON
15,224
17,132
53,119
58,895
20,092
13,554
15,937
18,147
67,730
20,211
SEA TROUT
26,458
33,104
28,139
25,765
4,636
5,063
5,710
3,993
19,401
3,633
PACIFIC SALMON
25,578
34,574
20,994
23,365
6,636
0
591
14,499
21,726
4,728
TOTAL SALMONIDS
67,260
84,811
102,252
108,025
31,363
18,617
22,238
36,639
108,857
28,572
17,232
21,341
23,806
18,584
4,924
4,731
4,441
3,894
17,990
4,230
84,492
106,152
126,058
126,609
36,287
23,348
26,679
40,533
126,847
32,802
2011
2012
2013
2014
FY
FY
FY
FY
1q15
2q15
3q15
4q15
2015
1q16
2014%
13%
210%
11%
36%
-23%
-10%
10%
15%
1%
TROUT
-9%
25%
-15%
-8%
-58%
8%
22%
-5%
-25%
-22%
PACIFIC SALMON
24%
35%
-39%
11%
-40%
18%
-7%
-29%
TOTAL SALMONIDS
34%
26%
21%
6%
-15%
-17%
0%
11%
1%
-9%
TILAPIA COSTA RICA AND PANAMA
-9%
24%
12%
-22%
-13%
5%
-1%
8%
-3%
-14%
TOTAL SALMONIDS AND TILAPIA
22%
26%
19%
0%
-15%
-13%
-1%
11%
0%
-10%
TILAPIA COSTA RICA & PANAMA TOTAL SALMONIDS AND TILAPIA
var % YoY y QoQ ATLANTIC SALMON
2015
2016
Source: AquaChile
It is not AquaChileâ&#x20AC;&#x2122;s policy to make public the projections of their results or the variables that can significantly impact them. The consensus of industry analysts indicates that income growth of the population; changing habits towards healthier foods and that maintaining growth conditions in developing countries, estimate good prospects for the demand for marine products, specifically protein and
healthy foods. Also, the demand for fresh tilapia fillet has continued to increase, maintaining current price levels.
20
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET 2013 figures in thus$
2014
2015
1q13
2q13
3q13
4q13
1q14
2q14
3q14
4q14
1q15
2q15
3q15
4q15
486,530
440,131
420,735
469,657
496,337
468,978
464,748
473,706
432,476
386,987
383,470
349,760
-26%
37,185
11,201
14,026
17,935
49,697
44,451
21,930
19,483
24,507
14,461
11,622
9,446
-52%
0
0
0
0
0
0
0
0
0
0
0
0
0%
OTHER NON FINANCIAL ASSETS - CURRENT
4,459
2,867
2,455
1,263
2,548
3,242
2,195
2,389
3,907
3,260
2,730
3,616
51%
ACCOUNTS RECEIVABLES - CURRENT
82,551
95,977
79,577
88,184
117,802
73,314
72,515
106,557
72,207
54,776
52,551
67,047
-37%
8,018
8,697
6,925
23,910
8,668
20,974
18,513
13,219
16,047
7,864
6,502
15,295
16%
347,044
316,223
311,728
332,538
311,850
325,045
347,675
327,360
310,922
302,569
305,976
249,795
-24% -3%
CURRENT ASSETS CASH AND CASH EQUIVALENTS OTHER FINANCIAL ASSETS - CURRENT
ACCOUNTS RECEIVABLESWITH RELATED COMPANIES - CURRENT BIOLOGICAL ASSETS - CURRENT - INVENTORY
4q15 o 4q14
TAX ASSETS - CURRENT
7,273
5,166
6,024
5,827
5,772
1,952
1,919
4,697
4,886
4,057
4,089
4,562
NON CURRENT ASSETS
396,059
409,874
410,542
423,345
410,387
413,430
442,181
425,459
433,614
440,680
437,043
439,536
3%
11,378
11,378
11,378
11,378
11,378
11,378
11,378
11,378
11,378
11,378
11,386
11,386
0%
OTHER NON FINANCIAL ASSETS - NON CURRENT
1,117
1,052
1,071
1,013
933
857
790
0
684
675
1,862
0
0%
DOCUMENTS RECEIVABLES - NON CURRENT
150
150
150
150
150
150
150
150
150
150
0
0
-100%
ACCOUNTS RECEIVABLES WITH RELATED COMPANIES - NON CURRENT
1,972
2,018
2,105
2,222
2,380
2,670
2,812
10,173
11,225
11,083
10,620
10,484
3%
INVESTMENTS USING PARTICIPATION METHOD
3,482
3,727
3,737
1,413
1,339
1,403
1,164
974
922
913
914
845
-13%
OTHER FINANCIAL ASSETS - NON CURRENT
INTANGIBLE ASSETS
37,479
37,652
37,712
40,728
40,707
40,676
40,856
40,949
40,987
41,016
41,134
41,106
0%
GOODWILL
59,349
59,423
59,314
54,989
54,989
54,989
54,989
53,247
53,247
53,247
53,247
53,247
0%
PROPERTIES, PLANTS & EQUIPMENTS
201,630
204,053
202,376
234,017
230,203
228,224
228,067
222,239
220,136
216,673
213,002
207,142
-7%
BIOLOGICAL ASSETS - NON CURRENT
23,395
27,062
28,409
26,251
20,515
23,715
24,019
24,425
29,228
25,379
20,398
20,247
-17%
56,107
63,359
64,290
51,184
47,793
49,368
77,956
61,924
65,657
80,166
84,480
95,079
54%
TOTAL ASSETS
ASSETS BY DEFERRED TAX
882,589
850,005
831,277
893,002
906,724
882,408
906,929
899,165
866,090
827,667
820,513
789,296
-12%
CURRENT LIABILITIES
200,549
214,043
195,261
221,375
224,698
309,574
307,567
327,668
309,857
321,393
173,036
447,187
36%
11,259
25,253
31,409
31,579
34,251
128,546
129,970
132,477
136,232
148,192
15,927
289,769
119%
172,493
159,021
134,733
167,311
164,011
160,296
160,873
177,310
157,999
155,899
138,221
141,242
-20%
13,943
25,551
23,714
20,340
19,605
18,004
16,108
17,335
14,805
16,151
17,693
15,137
-13%
189
11
0
1,896
1,964
23
38
39
67
142
290
467
1100% 13%
OTHER FINANCIAL LIABILITIES, CURRENT ACCOUNTS PAYABLE - CURRENT ACCOUNTS PAYABLES WITH RELATED COMPANIES - CURRENT LIABILITIES FOR CURRENT TAXES PROVISIONS FOR EMPLOEYEE BENEFITS - CURRENT
469
518
592
249
700
721
578
507
754
1,009
905
572
2,196
3,689
4,813
0
4,167
1,984
0
0
0
0
0
0
0%
290,840
272,680
274,664
268,149
267,681
163,534
173,965
150,089
146,500
132,450
294,949
20,072
-87%
OTHER FINANCIAL LIABILITIES, NON CURRENT
281,356
266,039
266,446
262,894
262,812
158,949
158,915
143,312
138,935
125,527
288,443
12,806
-91%
OTHER ACCOUNTS PAYABLE - NON CURRENT
1,151
1,020
1,018
1,267
1,125
1,048
967
1,409
1,179
1,156
843
902
-36% -11%
OTHER NON FINANCIAL LIABILITIES - CURRENT NON CURRENT LIABILITIES
OTHER PROVISIONS - NON CURRENT
0
0
0
0
0
0
0
1,575
1,575
1,575
1,575
1,400
8,332
5,621
7,200
3,988
3,744
3,537
14,083
3,793
4,811
4,192
4,088
4,964
31%
TOTAL LIABILITIES
491,389
486,723
469,925
489,524
492,379
473,108
481,532
477,757
456,357
453,843
467,985
467,259
-2%
EQUITY
382,443
354,309
352,709
394,173
405,205
400,113
416,401
413,105
401,584
366,060
345,328
315,529
-24%
8,757
8,973
8,643
9,305
9,140
9,187
8,996
8,303
8,149
7,764
7,200
6,508
-22%
882,589
850,005
831,277
893,002
906,724
882,408
906,929
899,165
866,090
827,667
820,513
789,296
-12%
LIABILITIES BY DEFERRED TAX
MINORITY INTEREST TOTAL EQUITY AND LIABILITIES Source: AquaChile
21
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED INCOME STATEMENT 2013 figures in thus$ SALES OPERATIONAL COST (1) OPERATIONAL MARGIN
OTHER COST AND OPERATING EXPENSES (2) EBITDA PRE FV ADJ.
DEPRECIATION & AMORTIZATION EBIT PRE FV ADJ.
2014
2015
1q13
2q13
3q13
4q13
1q14
2q14
3q14
4q14
1q15
2q15
3q15
4q15
∆ tot
151,563
192,532
191,393
202,387
225,791
171.737
157,935
223,643
192,196
145,707
134,660
150,803
-33%
-164,948
-195,922
-184,697
-174,337
-178,639
-147.136
-146,862
-193,240
-177,413
-156,395
-152,977
-161,109
-17%
-13,385
-3,389
6,695
28,051
47,152
24.601
11,072
30,403
14,783
-10,687
-18,317
-10,307
-
-7,853
-8,497
-8,261
-8,862
-8,022
-9.570
-8,580
-8,610
-9,526
-8,321
-7,747
-6,911
20%
-21,238
-11,886
-1,566
19,189
39,130
15.030
2,491
21,793
5,257
-19,008
-26,064
-17,218
-
-5,927
-7,875
-6,384
-7,286
-8,140
-7.122
-7,010
-8,156
-7,888
-7,694
-9,223
-9,882
-21%
-27,166
-19,761
-7,950
11,902
30,990
7.908
-4,519
13,637
-2,631
-26,702
-35,287
-27,100
-
NET REVENUES FROM BIOLOGICAL ASSETS (3)
25,540
-10,810
8,246
24,716
-15,572
-12.486
2,316
-5,864
-11,012
-21,134
12,357
-8,991
53%
EBIT POST FV ADJ.
-1,625
-30,571
296
36,619
15,418
-4.578
-2,203
7,773
-13,643
-47,836
-22,930
-36,091
-
FINANCIAL EXPENSES
-2,065
-2,324
-2,201
-2,679
-2,328
-2.259
-1,937
-2,119
-2,028
-1,973
-4,269
-3,441
62%
210
121
96
162
134
195
123
143
147
138
138
145
1%
-226
-4,832
214
-1,388
1,231
-86
1,944
-4,852
1,183
-1,205
1,515
-699
-86%
INCOME TAXES
-1,602
9,683
-335
-7,004
-3,310
1.684
13
-3,565
2,667
14,964
4,250
9,595
-
NET INCOME
-5,308
-27,924
-1,930
25,709
11,146
-5,045
-2,060
-2,619
-11,675
-35,913
-21,296
-30,491
-1064%
FINANCIAL INCOME OTHER NON OPERATING ITEMS (4)
(1) “Cost of sales” deducting “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 note 16 (PP&E) from the company Financial Statements. Source: AquaChile
22
HISTORICAL HARVESTS AND SMOLT STOCKING
HISTORICAL HARVESTS AND SMOLT STOCKING 2011 wfe tons ATLANTIC SALMON SEA TROUT PACIFIC SALMON TOTAL SALMONIDS* TILAPIA COSTA RICA & PANAMA TOTAL SALMONIDS AND TILAPIA
real
2012 real
2013
2014
2015
real
real
1q15 real
2q15 real
3q15 real
4q15 real
2015 real
∆ tot 2015/2014
15,224
17,132
53,119
58,895
20,092
13,554
15,937
18,147
67,730
10%
26,458
33,104
28,139
25,765
4,636
5,063
5,710
3,993
19,401
-5%
25,578
34,574
20,994
23,365
6,636
0
591
14,499
21,726
18%
67,260
84,811
102,252
108,025
31,363
18,617
22,238
36,639
108,857
11%
17,232
21,341
23,806
18,584
4,924
4,731
4,441
3,894
17,990
8%
84,492
106,151
126,058
126,609
36,287
23,348
26,679
40,533
126,847
11%
2012
2013
2014
Source: AquaChile
HISTORICAL SMOLTS STOCKING 2011 thousands smolts
real
real
ATLANTIC SALMON
10,647
SEA TROUT
16,675
PACIFIC SALMON TOTAL SALMONIDS
2015 1q15 real
2q15 real
3q15 real
4q15 real
2015 real
∆ tot 2015/2014
real
real
15,899
17,237
16,958
990
5,719
5,135
3,742
15,586
-8%
14,495
10,385
8,914
1,344
2,838
1,375
0
5,556
-38%
10,519
10,014
8,278
7,357
5,225
1,275
0
200
6,700
-9%
37,842
40,408
35,900
33,229
7,560
9,832
6,510
3,942
27,843
-16%
Source: AquaChile
23
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, comercial 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 compliance 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.
24