EMPRESAS AQUACHILE S.A. RESULTS FOR 3RD QUARTER 2015
November 2015
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 aquaculturefarmed 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 5,600 people in Chile, the United States, Costa Rica and Panama (on December 31, 2014) 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 11.9% market share in 2014 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 340 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 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$ 472.6 million on September 30, 2015. This is a 15% decrease in comparison to the same period in 2014 (Δ-US$ 82.9 million). At operating level the EBITDA pre fair value adjustment for September 2015 (this is before the value adjustment of the fish biomass at fair value) achieved US$ -39.8 million, which is higher than the US$ +56.7 million reported the previous year. The company presented a loss in September 2015 of US$ -68.9 million, this is lower than the US$ +4.0 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 is mainly explained by the lower sales of the Sea Trout, Pacific salmon and Tilapia that in all represent US$ 76 million, of which US$ 34.6 million were attributed to a lower sales volume (Δ-8,222 tons WFE) and US$ 41.5 million at a lower exporting sales price. The company has obtained 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 has gone after, which is centered on increasing productivity and decreasing the indirect production costs.
04
QUARTERLY SUMMARY
The Company’s consolidated sales were a total of US$ 134.7 million during the 3Q15, which represents a decrease of 15% in comparison with the valued sales reported for the 3Q14. It is true that during the third quarter there was an increase in the sales of all the species, the revenues for the sales of the Atlantic Salmon (Δ-7%), Sea Trout (Δ-16%) and Tilapia (Δ-6%) decreased in comparison to the same period the previous year due to a decrease in the international export prices: Atlantic Salmon (Δ-22%), the Sea trout (Δ-30%), the Pacific salmon (Δ-4%) and Tilapia (Δ−22%). The consolidated EBITDA reached US$ -26.1 million during the 3Q15, which can be compared to the US$ +2.5 million reported for the same period 2014, due to a decrease in the margins of the Atlantic Salmon, the Sea Trout and the Tilapia, mainly explained by the low price adjustment.
AquaChile reported a US$ -21.3 million loss during the 3Q15, in comparison to the US$ -2.1 million loss reported during the same period the previous year. The observed decrease is mainly explained by the lower margin reported for the Atlantic salmon, the Sea Trout and the Tilapia, which could not be compensated by the positive net effect of the biomass valorization at fair value of US$ +12.4 million reported in the quarter. The Company’s net financial debt totaled US$ 304.4 million for the 3Q15, showing a US$ 27.8 million increase in comparison to the close of the 4Q14. In fact, on July 23, 2015 the company subscribed for a new syndicated credit of US$ 290 million, and up to this day US$ 275.6 million have 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 ∆yoy
2014
555,463
-15%
779,106
-64,620
34,380
-
48,016
-39,815
56,652
-
78,444
-
-8.4%
10.2%
-
10.1%
-2,060
-934%
-68,880
4,041
-
1,421
22,326
18,303
22%
71,150
67,605
5%
101,541
EBIT / KG WFE SALMON AND SEA TROUT
-1.48
-0.22
-565%
-0.85
0.52
-
0.50
TILAPIA SALES - WFE TONS
4,643
4,363
6%
14,157
14,883
-5%
18,577
EBIT / KG WFE TILAPIA
-0.48
-0.10
-371%
-0.28
-0.05
-468%
-0.13
cifras en miles de us$
3q15
3q14
134,660
157,935
-15%
472,564
EBIT PRE FV ADJ.(1)
-35,287
-4,519
-681%
EBITDA PRE FV ADJ. (2)
-26,064
2,491
-
-19.4%
1.6%
-21,296
SALES
EBITDA PRE FV ADJ. MARGIN NET INCOME SALMON AND SEA TROUT SALES - WFE TONS
∆qoq acum 2015 acum 2014
(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$ 134.7 million, which is less than the US$ 157.9 million reported during the same period 2014. In fact, the sales revenue for the finished product of Atlantic salmon decreased 7% (Δ-US$ 5.8 million), the Sea Trout by 16% (Δ-US$ 4.7 million) and Tilapia by 6% (Δ-US$ 0.8 million). To the above the decrease of the revenues for the Fish Feed segment is added
1
(Δ-US$ 0.7 million) as also the decrease in the revenues of “Other Business1” segment (Δ-US$ 13.6 million). The last item is explained by the decrease of the third party sales of the finished product. All of the above can be partially compensated by the increase in the sales of the Pacific salmon (Δ+US$ 2.3 million).
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)
226 193 158
224
202
191
192
172
158
152 100
146
135
96 56
1Q12 2Q12
3Q12
4Q12 1Q13
2Q13 3Q13 4Q13 1Q14
2Q14 3Q14 4Q14
1Q15
2Q15
Other Income
Sales 3Q15
3Q15
QUARTERLY CONSOLIDATED SALES ANALYSIS (PRICE AND VOLUME EFFECT) (USD MILLIONS)
Sales 3Q14
Atlantic Salmon
158
Sea Trout
11 -17
Pacific Salmon
2
4 -9
Tilapia
0
∆ Price
-2
Fish feed
1
-1
135 -14
∆ Volume
07
ANALYSIS OF RESULTS
QUARTERLY EBITDA TREND (US$ MILLIONS)
39 25
22
19
15 5 2
0 -2 -12
-12 -18
-19
-21
-26
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
QUARTERLY NET INCOME TREND (US$ MILLIONS)
26
11 2 -2
-5
-5
-2
-3
-10 -17
-12
-17
-21
-28
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
-36
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
08
ANALYSIS OF RESULTS
Consolidated EBITDA pre Fair Value adjustments1 (*) for the 3Q15 reached US$ -26.1 million, in comparison to the US$ +2.5 million of the same period the previous year. The reason for this decrease was the drop in the sales margin of the Atlantic salmon, the Sea Trout and the Tilapia, that were mainly affected by the decrease in the export sales price. That is why the EBITDA margin (EBITDA over the revenues) reported during the 3Q15 is -19.4%, in comparison with the 1.6% reported during the same period 2014. The company recognizes a US$ 12.4 million profit during the third quarter 2015 for the “Net Effect of valuing the biomass at fair value�, which is higher than the US$ 2.3 million profit reported during the 3Q14. The reasons for this are mainly: i) recognition of a higher cost due to valuing at fair value of the harvested and sold biomass during the period of US$ +20.2 million, which is higher than the higher cost of US$ +2.6 million reported during the same period of the previous year, mainly due to the negative differences presented between the prices that the biological assets of the Atlantic Salmon and the Sea Trout were valued at during the first nine months of 2015, and the prices of
the biological assets of the same two species were valued at during the same period of 2014; ii) the reversal of a provision of the net realizable value for harvest of the biomass that is currently being reared of US$ +3.7 million. This provision was not necessary to do during 2014. The above was partially compensated by: i) the recognition of the value adjustment of the fish biomass being raised of US$ -12.6 million wich is lower than the US$ -1.4 million reported during the same period the previous year mainly due to the low market prices for the salmon and sea trout; and ii) for the reversal net of provision for a smaller value of US$ +1.0 million of the finished product carried out during the period, which is less than the US$ +1.1 million carried out during the same period the previous year.
(*) 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 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.
09
ANALYSIS OF RESULTS
ANALYSIS OF PHYSICAL SALES, VALUED, AND MARGIN BY SEGMENT 3q15
3q14
TON WFE
15,978
13,494
MUS$
72,707
78,471
4.55
5.82
∆tot acum 15 acum 14
∆ y oy
2014
31%
54,335 318,527
ATLANTIC SALMON SALES VOLUME SALES AVERAGE PRICE EBIT EBIT / KG WFE
US$ / KG WFE MUS$
18%
46,794
35,753
-7% 227,322
218,827
4%
4.86
6.12
-21%
5.86
-22,902 -5,626 -307% -43,381
9,956
-
13,841
-0.93
0.28
-
0.25
19%
15,993
17,776
-10%
23,182
-16%
71,916
111,102
-30%
4.50
6.25
-28%
6.06
15,768
-
16,534
-22%
US$ / KG WFE
-1.43
-0.42 -244%
TON WFE
5,710
4,781
SEA TROUT SALES VOLUME SALES AVERAGE PRICE EBIT EBIT / KG WFE
MUS$ US$ / KG WFE
23,976 28,683
-35% 140,395
4.20
6.00
MUS$
-9,614
1,619
- -19,565
US$ / KG WFE
-1.68
0.34
-
-1.22
0.89
-
0.71
TON WFE
638
29
2134%
8,364
14,076
-41%
24,023
114 2034%
114,396
PACIFIC SALMON SALES VOLUME SALES AVERAGE PRICE EBIT EBIT / KG WFE
MUS$
2,422
35,872
67,698
-47%
US$ / KG WFE
3.80
3.97
-4%
4.29
4.81
-11%
4.76
MUS$
-554
-69
-701%
2,340
9,400
-75%
20,079
US$ / KG WFE
-0.87
-2.42
64%
0.28
0.67
-58%
0.84
TON WFE
4,643
4,363
6%
14,157
14,883
-5%
18,577
MUS$
12,782
13,587
-6%
40,769
45,905
-11%
57,213
2.75
3.11
-12%
2.88
3.08
-7%
3.08
MUS$
-2,217
-442
-401%
-4,014
-743
-440%
-2,438
US$ / KG WFE
-0.48
-0.10
-371%
-0.28
-0.05
-468%
-0.13
TILAPIA SALES VOLUME SALES AVERAGE PRICE EBIT EBIT / KG WFE
US$ / KG WFE
The Atlantic Salmon business saw a -7% decrease (Δ-US$ 5.8 million) in its income during the 3Q15 in comparison to the same period 2014, due to a 22% decrease in the sales price which could not be compensated by the 18% increase in the sales volume (Δ+2,483 WFE tons). On its part the EBIT Pre FV Adj. showed a US$ -22.9 million loss in comparison to the US$ -5.6 million reported during the same period 2014. At unit level, the EBIT Pre FV Adj. / Kg WFE reached US$ -1.43 / Kg WFE (in comparison to the US$ -0.42 / Kg WFE for the same time the previous year). The negative margin reported for the quarter is mainly explained by the decrease in the export price.
The Sea Trout business saw a 16% (Δ-US$ 4.7 million) decrease during the 3Q15 in comparison to the same period 2014, due to a 30% decrease of the average sales price which could not be compensated by the 19% (∆+929 WFE tons) in the sales volume. As for the EBIT Pre FV Adj., it presented a US$ -9.6 million loss in comparison to the US$ +1.6 million reported for the same period 2014. At unit level, the EBIT Pre FV Adj. / Kg WFE reached US$ -1.68 / Kg WFE (in comparison to the US$ +0.34 / Kg WFE the same time last year). The observed decrease in margins is due to the decrease in the export price and in a smaller measure to the increase in the sales cost in comparison to the same period the previous year.
The ring tons) increase in les prices. For its US$ -0.07 million ched US$ -0.87 /
Pacific or Coho Salmon business saw a 2034% increase (Δ US$ +2.3 million) duthe 3Q15 in comparison with the same period 2014, due to a 2134% (∆+609 WFE the sales volume, which was partially compensated by the 4% decrease in the sapart, the EBIT Pre FV Adj. demonstrated a US$ -0.6 million loss, in comparison to the reported for the same period 2014. At unit level, the EBIT Pre FV Adj. / Kg WFE reaKg WFE (in comparison to the US$ -2.42 / Kg WFE the same period the previous year).
The Tilapia business saw a 6% (Δ-US$ 0.8 million) decrease in its income during the 3Q15 in comparison to the same period 2014, due to a 12% decrease in the sales price that could not be compensated by the 6% increase (Δ+280 tons WFE) in the sales volume. The EBIT Pre FV Adj. showed a US$ -2.2 million loss in comparison to the US$ -0.4 million reported during the same period 2014. At unit level the EBIT Pre FV Adj. / Kg WFE reached US$ -0.48 / Kg WFE (in comparison to the US$ -0.1 / Kg WFE the same time the previous year). The decrease observed in the margins is mainly explained by the decrease in the international export price.
TOTAL SALES VOLUME SALES AVERAGE PRICE EBIT EBIT / KG WFE Source: AquaChile
TON WFE
26,969 22,667
19%
85,307
82,488
3%
120,117
MUS$
111,887 120,855
-7% 375,880
443,531
-15%
630,531
4.41
5.38
-18%
5.25
-681% -64,620
34,380
-
48,016
0.42
-
0.40
US$ / KG WFE MUS$ US$ / KG WFE
4.15
5.33
-35,287
-4,519
-1.31
-22%
-0.20 -556%
-0.76
10
ANALYSIS OF RESULTS
CONSOLIDATED INCOME STATEMENT figures in thus$ SALES OPERATIONAL COST
(1)
OPERATIONAL MARGIN OTHER COST AND OPERATING EXPENSES (2)
3q15
3q14
∆tot acum 2015
acum 2014
∆yoy
2014
134,660
157,935
-15%
472,564
555.463
-15%
779,106
-152,977
-146,862
-18,317
11,072
4%
-486,785
-472,639
3%
-665,148
-
-14,222
82,824
-
113,958
-7,747
-8,580
-10%
-25,594
-26,172
-2%
-35,513
-26,064
2,491
-
-39,815
56,652
-
78,444
% EBITDA / Sales
-19.4%
1.6%
-8.4%
10.2%
DEPRECIATION & AMORTIZATION
-9,223
-7,010
32%
-24,805
-22,272
11%
-30,428
-35,287
-4,519
-681%
-64,620
34,380
-
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 NET INCOME % Net Income / Sales
(4)
10.1%
12,357
2,316
433%
-19,788
-25,742
23%
-31.606
-22,930
-2,203
-941%
-84,409
8,638
-
16,411
-4,269
-1,937
120%
-8,271
-6,524
27%
-8,643
138
123
12%
423
452
-6%
595
1,515
1,944
-22%
1,495
3,088
-52%
-1,764
4,250
13
31962%
21,882
-1,613
-
-5,178
-21,296
-2,060
-934%
-68,880
4,041
-
1,421
-15.8%
-1.3%
-14.6%
0.7%
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 saw a total of US$ 153 million in the quarter, 4% higher than what was achieved for the 3Q14, the reason for this being the sales volume increased for all the species. Plus if you compare this with the operational costs (measured as a percentage over sales), this reached 114% of revenues, 21 percentage points under the reported percentage for the 3Q14 mainly associated to the decrease in the 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$ -8.9 million loss during the 3Q15, (US$ -1.4 million loss reported for the 3Q14). This concept can be broken down in the following manner: i) US$ -12.6 million (US$ -1.4 million reported for the 3Q14) corresponds to “Value adjustment for the fish biomass being raised”; and ii) US$ +3.6 million (US$ 0 million for the 3Q14) correspond to the reversal of a provision of the net realization 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 the harvested and sold biological assets” which saw a US$ +21.2 million profit for the 3Q15 (US$ +3.7 million for the 3Q14). This is broken down the fo-
llowing manner: i) US$ +20.2 million (US$ +2.6 million during the 3Q14) corresponds to a higher cost per fair value of the harvested and sold biological assets; and ii) US$ +1.0 million (US$ 1.2 million in the 3Q14) correspond to the net reversal provision for the lower net disposal value of the finished products of 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$ +12.4 million for the 3Q15. This is higher than the US$ +2.3 million reported for the 3Q14. Other Operating Costs and Expenses showed a 10% decrease in comparison with the same period of the previous year. In effect, the distribution Costs presented a 8.9% decrease and the administration Expenses had a 10.8% decrease. Non-operating results showed a US$ -2,6 million loss for the 3Q15 in comparison to the US$ 0.1 million gain reported for the same period the previous year. This difference is mainly explained by the financial cost increase associated to the new syndicated credit. Expense for Income Tax presented a US$ 4.3 million credit which is a positive comparison to the US$ 0.01 million credit for the same period the previous year. The company reported a period of US$ -21.3 million loss in comparison to the US$ -2.1 million loss reported for the same period 2014.
12
BALANCE SHEET
CONSOLIDATED BALANCE SHEET
2013 figures in thus$
1q13
2014
2015
2q13
3q13
4q13
1q14
2q14
3q14
4q14
1q15
2q15
3q15
∆3q15 o 4q14
CURRENT ASSETS
486,530
440,131
420,735
469,657
496,337
468,978
464,748
480,425
432,476
386,987
383,470
-20.2%
NON CURRENT ASSETS
396,059
409,874
410,542
423,345
410,387
413,430
442,181
419,477
433,614
440,680
437,043
4.2%
TOTAL ASSETS
882,589 850,005
831,277 893,002
906,724
882,408
906,929
899,902 866,090
827,667
820,513
-8.8%
CURRENT LIABILITIES
200,549
214,043
195,261
221,375
224,698
309,574
307,567
328,405
309,857
321,393
173,036
-47.3%
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
96.5%
TOTAL LIABILITIES
491,389 486,723 469,925 489,524
492,379
473,108
481,532
478,494
456,357
453,843
467,985
-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
-16.4%
9,305
9,140
9,187
8,996
8,303
8,149
7,764
7,200
-13.3%
831,277 893,002
906,724
882,408
906,929
899,902 866,090
827,667
820,513
-8.8%
MINORITY INTEREST
TOTAL EQUITY AND LIABILITIES
8,757
8,973
882,589 850,005
8,643
Source: AquaChile
Current Assets presented a 20.2% decrease (Δ-US$ 97.0 million) in comparison with the observed numbers of the 4Q14. This is mainly explained by: i) a US$ 54.0 million decrease in the “Trade and other receivable accounts, bank accounts” mainly associated with the sales made during the 3Q15 in comparison to the 4Q14; ii) a US$ 22.7 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 September 2015 in comparison to December 2014 and to the US$ -5.7 million for the lower realization value at harvest of the biomass that is currently being reared, not valued at fair value; iii) a US$ 13.4 million decrease in the Account receivable with related companies; and iv) a US$ 7,9 million decrease in the account “Cash and Cash Flow Equivalent”.
Non-current assets presented a 4.2% increase (Δ+US$ 17.6 million) in comparison with the observed numbers of the 4Q14. This is mainly explained by: i) a US$ +7.2 million increase in the account receivable from non-current related companies associated to them reclassifying from a short to a long term; and ii) a US$ 22.6 million increase in the “Assets of the Deferred Taxes”. All of the above was partially compensated by a US$ 9.2 million decrease in the account “Properties, plants and equipment” and a US$ 4.0 million decrease in the account “Non-current Biological Assets”. The Current Liability showed a 47.3% decrease (Δ−US$ 155.4 million) in comparison with the observed numbers of the 4Q14. This is explained by: i) a US$ 117.3 million de-
13
BALANCE SHEET
crease in the “Other current financial liabilities” account associated to restructuring the financial debt taken place on July 23, 2015, where the company made a pre-payment of the total debt associated to the syndicated loan of June 2011 (outstanding balance to this day of the US$ 246 million pre-payment, where US$ 134 million were recorded in a short term) and a new bullet syndicated loan was contracted for December 2016 for the amount of US$ 275.6 million; and ii) a US$ 39.1 million decrease in the “Trade payables and other accounts payable”.
ted 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$ -68.9 million decrease associated to the accumulated loss of the period.
The Non-current Liability showed a 96.5% increase (Δ-US$ 144.9 million) in comparison with the numbers observed for the 4Q14. This is mainly explained by a US$ 145 million increase in “Other Non-current Financial Liabilities” associa-
AQUACHILE FINANCIAL DEBT 2013 figures in thus$ (I) OTHERS FINANTIAL LIABITIES CURRENT
2014
1q13 2q13
3q13
4q13
11,259
31,409
2q14
3q14
2015 4q14
1q15
2q15
3q15
∆3q15 o 4q14
31,579
34,251
128,546
129,970
133,214
136,232
148,192
15,927
-88.0%
(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
101.3%
TOTAL INTEREST BEARING DEBT (I) + (II)
292,615 291,293 297,854 294,473
297,063 287,495 288,885 276,526
275,167
273,719
304,370
10.1%
19,483
24,507
14,461
11,622
-40.3%
247,366 243,044 266,955 257,043
250,661
259,258
292,747
13.9%
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
On the other hand, AquaChile’s Net financial debt reached US$ 292.7 million, higher than the US$ 257.0 million reported on December 31, 2014
14
CASH FLOW ANALYSIS
CONSOLIDATED CASH FLOW
figures in thus$
acum 2015
2014
acum 2014
NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES
-12,958
53,696
29,885
NET CASH FLOWS FROM (USED IN) INVESTMENT ACTIVITIES
-18,346
-26,811
-16,493
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
23,909
-24,527
-8,684
NET INCREASE (DECREASE) OF CASH AND CASH EQUIVALENTS
-7,861
1,548
3,995
CASH AND CASH EQUIVALENT AT THE START OF THE PERIOD
19,483
17,935
17,935
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD
11,622
19,483
21,930
Source: AquaChile
The behavior of the consolidated Cash Flow main components on September 30, 2015 in comparison to September 30, 2014 is the following:
The investment activity meant an expenditure of US$ -18.3 million on September 30, 2015. At the same period the previous year the expenditure was US4 -16.5 million.
The company presented a total net cash flow of US$ -7.9 million on September 30, 2015. At the same time the previous year there was a US$ +4.0 million cash flow reported.
Financing activities generated a US$ +23.9 million cash flow on September 30, 2015. During the same period the previous year the company presented a net expenditure of US$ -8.7 million.
The operating activities on September 30, 2015 generated a US$ -13.0 million cash flow, less than the US$ +29.9 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 – leaded by the Rabobank- regarding the main terms and conditions for a new syndicated credit. To improve on this Empresas AquaChile S.A. and affiliate on June 23, 2015 agreed with their current crediting banks to renew the quotas for 30 days 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 $246,289,638. Having this additional generated credit available allows a needed flexibility to guarantee a more efficient and effective management of the stocks in the current business cycle; to include a bilateral convenience that already exists with the DnB Bank Agency in Chile, with the same credit
structure; to reduce the number of crediting banks; and later to restructure on time all the company’s debt at long term under more favorable market conditions with the expectation of a more stable international market. New financial obligations have been defined with the signing of this new credit contract on July 23, 2015 calculated over the Consolidated Financial Statements of Empresas AquaChile S.A. on June 30, 2015, and on March 31st, June 30th, September 30th, and December 31st of the following years in reference to the Equity ratio levels, Ned Adjusted Financial Debt (NIBD Adjusted / EBITDA Adjusted, the liquidity level, and the Maximum Debt levels, as shown in the following:
financial covenants*
2q-15
3q-15
4q-15
1q-16
2q-16
3q-16
4q-16
EQUITY RATIO 1
42.5%
42.5%
42.5%
42.5%
42.5%
42.5%
42.5%
NIBD ADJUSTED / EBITDA ADJUSTED 2
5.75X
7.25X
7.5X
5.0X
4.5X
4.5X
4.5X
LIQUIDITY 3
1.2X
1,2X
1.2X
1.2X
1.2X
1.2X
1.2X
MAXIMUM DEBT (M US$) 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 on September 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 3Q15.
16
COVENANTS AND PRODUCTION INDICATORS
measure as of september, 30th:
2015
covenant
EQUITY RATIO
43.0%
> O IGUAL 42.5%
ACCOMPLISH
2.1
> O IGUAL A 1.2X
ACCOMPLISH
304.4
< O IGUAL US$ 320 MM
ACCOMPLISH
CURRENT LIQUIDITY MAX DEBT
The company and the owing companies have given a complete compliance to the determined obligations on September 30, 2015 and they have kept all of the substantial aspects
status
of the statements and decided insurances in the Contract for Reprogramming the Liabilities.
PRODUCTIVE INDICATORS
3q15
3q14 acum 15 acum 14
22,238
22,332
72,218
75,140
13
13
35
31
40
1,711
1,718
2,063
2,424
2,701
#
38
40
38
40
40
TONS WFE
585
558
1,900
1,879
2,701
ATLANTIC SALMON
KG / M3
6.00
6.40
6.00
6.40
5.80
PACIFIC SALMON
KG / M3
6.90
6.80
6.90
6.80
7.90
SEA TROUT
KG / M3
4.00
3.80
4.00
3.80
4.90
SALMON AND SEA TROUT HARVEST HARVESTED FISH FARMS OR FISH FARMS THAT ARE BEING HARVESTED SALMON AND SEA TROUT HARVEST / HARVESTED FISH FARMS OR FISH FARMS THAT ARE BEING HARVESTED USED FISH FARMS* SALMON AND SEA TROUT HARVEST / USED FISH FARMS*
TONS WFE # TONS WFE
2014 108,025
FARMING DENSITY**
SURVIVAL CLOSED GROUP*** ATLANTIC SALMON
%
84%
79%
86%
84%
86%
PACIFIC SALMON
%
---
---
95%
85%
89%
SEA TROUT
%
80%
89%
85%
87%
86%
* 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 third quarter 585 Tons WFE. Farming densities on September 30, 2105 at the aquaculture grow-out sea licenses per species are the following: i) Atlantic salmon: 6.0 Kg/ m3; ii) Pacific salmon: 6.9 Kg/ m3; and iii) Sea trout: 4.0 Kg/m3. On the other hand, Survival rates observed in the groups that closed on September 30, 2015 were the following: i) Atlantic salmon: 84%; and ii) Sea trout: 80%.
17
RELEVANT EVENTS
RELEVANT EVENTS
On January 19, 2015 an Essential Fact was sent communicating that the Company had subscribed a memorandum of understanding (the CTA) with the Norwegian Company Marine Harvest ASA (“Marine Harvest”) with the idea 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 with the stipulated terms and conditions of the CTA.
15, 2017 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 the agreement of a joint action. Furthermore, Mr. Victor Hugo Puchi will remain as President of the combined entity and will lead the current administration teams in the process of the potential merge and combined business.
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.
In conformity to the CTA, the potential merge will be subjected – besides the respective agreement of the shareholders meeting of AquaChile – that an agreement be made between the parties related with the definite document of the Operation; to the approval of its respective Board of Directors; and in the case of AquaChile their shareholders also; to a reciprocal due diligence process of both Companies; and, to the approval of the relevant authorities. The parties expect that the Operation will be concreted during the third quarter 2015.
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 compromise of selling 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. Also, Marine Harvest ASA, Inversiones Patagonia Limitada, Holding Salmones S.A. and Inversiones Acuícolas S.A. will subscribe a definite document with which Inversiones Patagonia Limitada and Holding Salmones S.A. and Inversiones Acuícolas S.A. will have the right to vote up to June
On April 22, 2015 the Essential Fact was sent informing the eruption of the Calbuco Volcano. It was informed that the company’s personnel was evacuated and are safe and sound, and that there were no records that the facilities of Empresas AquaChile S.A. and affiliates were damaged. 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 were approved. All of these are in reference to the year finished on December 31, 2014. The members that were elected to form part of 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 Ms. Pilar Lamana Gaete, she is as independent. The remuneration of the members of the Board was fixed for 2015; and the expense account of the Board for 2014 was approved. The remuneration for the members of the Board of Directors Committee was fixed as also the budget for the Board of Directors Committee for 2015. The firm PricewaterhouseCoopers was designated as the external independent auditors for examining the accounting, inventory, balance and financial statements of 2015. The El Mostrador Newspaper was designated for the company’s publications. 18
HECHOS RELEVANTES
On April 30, 2015 an Essential Fact was sent informing that the Board of Director’s Meeting was held on April 30, 2015 where they agreed to elect as President of the Board of Empresas AquaChile S.A. Mr. Victor Hugo Puchi Acuña. In the same meeting, la Independent Director Ms. Pilar Lamana Gaete proceeded on designating Mr. Huberto Fischer Llop and Mr. Alejandro Pérez Rodriguez to have part in the Board of Directors Committee of the Company together with her, in conformity to what is stated in Article 50bis of the Law Nº 18.046.v 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 June 2015, Empresas AquaChile S.A. agreed with a group of creditors’ bank – leaded by Rabobank – the main terms and conditions of a new syndicated loan. To refine the above Empresas AquaChile S.A. and an affiliate on June 23, 2015 agreed with their current creditor banks to extend for thirty days the quotas of the tranches of the bank debt of the company that expired on this day for the amount of US$122,539,638, agreeing to pay in accordance to the stipulated time limit and more – on the same day – to prepay the total of the rest of the debt that expired in 2018. The new syndicated loan – on the date that this is published has already been refined – considers a financing of up to US$290,000,000 agreed to pay the totality of the bank debt of US$246,289,638. Having generated this additional loan allows the necessary flexibility to assure an efficient and more effective administration of the stocks in the present business cycle. In the same meeting, the indebted companies make a novation of their loans thus concentrating the new debts in this contract in Empresas AquaChile S.A. making itself the only new debtor. 19
OUTLOOK
GROWTH IN THE HARVESTING VOLUME PROJECTED FOR THE 4Q15 - A 26% increase in total harvests in comparison with the same period the previous year - A 28% increase in Salmon harvests in comparison with the same period the previous year - A 5% increase in Tilapia harvests in comparison with the same period the previous year The harvesting plans for the fourth quarter 2015 project 42,192 WFE tons of Salmon and Sea trout, and 3,786 WFE tons of Tilapia.
HISTORICAL AND PROJECTED HARVESTS 2011
2012
2013
2015
2014
3q15
4q15
tons wfe
Real
Real
Real
Real
Real
Real
Real
Real
Real.
Real
Real.
Proy.
ATLANTIC SALMON
15,224
17,132
53,119
14,720
10,108
17,636
16,431
58,895
20,092
13,554
15,937
21,264
SEA TROUT
26,458
33,104
28,139
11,073
5,784
4,697
4,211
25,765
4,636
5,063
5,710
4,335
PACIFIC SALMON
25,578
34,574
20,994
11,122
0
0
12,243
23,365
6,636
0
591
16,593
TOTAL SALMONIDS
67,260
84,811
102,252
36,915
15,892
22,332
32,886
108,025
31,363
18,617
22,238
42,192
17,232
21,341
23,806
5,633
4,853
4,493
3,605
18,584
4,924
4,731
4,441
3,786
84,492
106,152
126,058
42,548
20,745
26,826
36,490
126,609
36,287
23,348
26,679
45,978
2011
2012
2013
FY
FY
FY
1q14
2q14
2014 3q14
4q14
2014
1q15
2q15
3q15
4q15e
2014%
13%
210%
96%
-39%
16%
19%
11%
36%
-23%
-10%
29%
SEA TROUT
-9%
25%
-15%
-7%
9%
-19%
-19%
-8%
-58%
8%
22%
3%
PACIFIC SALMON
24%
35%
-39%
18%
6%
11%
-40%
TOTAL SALMONIDS
34%
26%
21%
28%
-27%
6%
8%
6%
-15%
-17%
0%
28%
TILAPIA COSTA RICA & PANAMA
-9%
24%
12%
-7%
-27%
-31%
-22%
-22%
-13%
5%
-1%
5%
TOTAL SALMONIDS AND TILAPIA
22%
26%
19%
22%
-27%
-3%
4%
0%
-15%
-13%
-1%
26%
TILAPIA COSTA RICA & PANAMA TOTAL SALMONIDS AND TILAPIA
Var % AoA y ToT ATLANTIC SALMON
1q14
2q14
3q14
4q14
2014
1q15
2q15
2015
36%
Source: AquaChile
It is not AquaChileâ&#x20AC;&#x2122;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. 20
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET 2013 figures in thus$
2014
2015
1q13
2q13
3q13
4q13
1q14
2q14
3q14
4q14
1q15
2q15
3q15
486,530
440,131
420.735
469,657
496,337
468,978
464,748
480,425
432,476
386,987
383,470
-20%
37,185
11,201
14,026
17,935
49,697
44,451
21,930
19,483
24,507
14,461
11,622
-40%
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
14%
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
-51%
8,018
8,697
6,925
23,910
8,668
20,974
18,513
19,938
16,047
7,864
6,502
-67%
CURRENT ASSETS CASH AND CASH EQUIVALENTS OTHER FINANCIAL ASSETS - CURRENT
ACCOUNTS RECEIVABLESWITH RELATED COMPANIES - CURRENT BIOLOGICAL ASSETS - CURRENT - INVENTORY
3q15 o 4q14
347,044
316,223
311,728
332,538
311,850
325,045
347,675
327,360
310,922
302,569
305,976
-7%
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
-13%
NON CURRENT ASSETS
396,059
409,874
410,542
423,345
410,387
413,430
442,181
419,477
433,614
440,680
437,043
4%
11,378
11,378
11,378
11,378
11,378
11,378
11,378
11,378
11,378
11,378
11,386
0%
1,117
1,052
1,071
1,013
933
857
790
737
684
675
1,862
153%
OTHER FINANCIAL ASSETS - NON CURRENT OTHER NON FINANCIAL ASSETS - NON CURRENT DOCUMENTS RECEIVABLES - NON CURRENT
150
150
150
150
150
150
150
150
150
150
0
-100%
ACCOUNTS RECEIVABLES WITH RELATED COMPANIES - NON CURRENT
1,972
2,018
2,105
2,222
2,380
2,670
2,812
3.454
11,225
11,083
10,620
207%
INVESTMENTS USING PARTICIPATION METHOD
3,482
3,727
3,737
1,413
1,339
1,403
1,164
974
922
913
914
-6%
INTANGIBLE ASSETS
37,479
37,652
37,712
40,728
40,707
40,676
40,856
40,949
40,987
41,016
41,134
0%
GOODWILL
59,349
59,423
59,314
54,989
54,989
54,989
54,989
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
-4%
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
-16%
ASSETS BY DEFERRED TAX
56,107
63,359
64,290
51,184
47,793
49,368
77,956
61,924
65,657
80,166
84,480
36%
TOTAL ASSETS
882,589
850,005
831,277
893,002
906,724
882,408
906,929
899,902
866,090
827,667
820,513
-9%
CURRENT LIABILITIES
200,549
214,043
195,261
221,375
224,698
309,574
307,567
328,405
309,857
321,393
173,036
-47%
11,259
25,253
31,409
31,579
34,251
128,546
129,970
133,214
136,232
148,192
15,927
-88%
172,493
159,021
134,733
167,311
164,011
160,296
160,873
177,310
157,999
155,899
138,221
-22%
13,943
25,551
23,714
20,340
19,605
18,004
16,108
17,335
14,805
16,151
17,693
2%
189
11
0
1,896
1,964
23
38
39
67
142
290
646% 79%
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
2,196
3,689
4,813
0
4,167
1,984
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
97%
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
101%
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
-40% 0%
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
8,332
5,621
7,200
3,988
3,744
3,537
14,083
3,793
4,811
4,192
4,088
8%
TOTAL LIABILITIES
491,389
486,723
469,925
489,524
492,379
473,108
481,532
478,494
456,357
453,843
467,985
-2%
EQUITY
382,443
354,309
352,709
394,173
405,205
400,113
416,401
413,105
401,584
366,060
345,328
-16%
8,757
8,973
8,643
9,305
9,140
9,187
8,996
8,303
8,149
7,764
7,200
-13%
882,589
850,005
831,277
893,002
906,724
882,408
906,929
899,902
866,090
827,667
820,513
-9%
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
∆ tot
151,563
192,532
191,393
202,387
225,791
171,737
157,935
223,643
192,196
145,707
134,660
-15%
-164,948
-195,922
-184,697
-174,337
-178,639
-147,136
-146,862
-192,510
-177,413
-156,395
-152,977
4%
-13,385
-3,389
6,695
28,051
47,152
24,601
11,072
31,133
14,783
-10,687
-18,317
-
-7,853
-8,497
-8,261
-8,862
-8,022
-9,570
-8,580
-9,340
-9,526
-8,321
-7,747
10%
-21,238
-11,886
-1,566
19,189
39,130
15,030
2,491
21,793
5,257
-19,008
-26,064
-
-5,927
-7,875
-6,384
-7,286
-8,140
-7,122
-7,010
-8,156
-7,888
-7,694
-9,223
-32%
-27,166
-19,761
-7,950
11,902
30,990
7,908
-4,519
13,637
-2,631
-26,702
-35,287
681%
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
433%
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
-941%
FINANCIAL EXPENSES
-2,065
-2,324
-2,201
-2,679
-2,328
-2,259
-1,937
-2,119
-2,028
-1,973
-4,269
120%
210
121
96
162
134
195
123
143
147
138
138
12%
-226
-4,832
214
-1,388
1.231
-86
1,944
-4,852
1,183
-1,205
1,515
-22%
INCOME TAXES
-1,602
9,683
-335
-7,004
-3,310
1,684
13
-3,565
2,667
14,964
4,250
31962%
NET INCOME
-5,308
-27,924
-1,930
25,709
11,146
-5,045
-2,060
-2,619
-11,675
-35,913
-21,296
-934%
FINANCIAL INCOME OTHER NON OPERATING ITEMS (4)
(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
22
HISTORICAL HARVESTS AND SMOLTS STOCKING
HISTORICAL HARVESTS 2011 wfe tons ATLANTIC SALMON
real
2012 real
2014
2013
2015
real
1q14 real
2q14 real
3q14 real
4q14 real
2014 real
1q15 real
2q15 real
3q15 real
∆ tot 2015/2014
15,224
17,132
53,119
14,720
10,108
17,636
16,431
58,895
20,092
13,554
15,937
-10%
SEA TROUT
26,458
33,104
28,139
11,073
5,784
4,697
4,211
25,765
4,636
5,063
5,710
22%
PACIFIC SALMON
25,578
34,574
20,994
11,122
0
0
12,243
23,365
6,636
0
591
0%
67,260
84,811
102,252
36,915
15,892
22,332
32,886
108,025
31,363
18,617
22,238
0%
TOTAL SALMONIDS* TILAPIA COSTA RICA & PANAMA TOTAL SALMONIDS AND TILAPIA
17,232
21,341
23,806
5,633
4,853
4,493
3,605
18,584
4,924
4,731
4,441
-1%
84,492
106,151
126,058
42,548
20,745
26,826
36,490
126,609
36,287
23,348
26,679
-1%
2012
2013 real
1q14 real
2q14 real
3q14 real
4q14 real
2014 real
Source: AquaChile
HISTORICAL SMOLTS STOCKING 2011 thousands smolts
real
2014 ∆ tot 2015/2014
ATLANTIC SALMON
10,647
15,899
17,237
3,479
3,329
5,128
5,022
16,958
-2%
SEA TROUT
16,675
14,495
10,385
2,254
1,912
3,254
1,494
8,914
-14%
PACIFIC SALMON TOTAL SALMONIDS
10,519
10,014
8,278
5,676
797
0
884
7,357
-11%
37,842
40,408
35,900
11,409
6,038
8,382
7,400
33,229
-7%
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, 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.
24