Q3 2017 RESULTS PRESENTATION EMPRESAS AQUACHILE S.A. as of September 30th, 2017
November 28th, 2017
Highlights Financial Review Production’s Performance Sales Outlook
Highlights
♦ Atlantic Salmon’s price at similar levels compared to Q3 2016 but 40% up if comparing on a YoY basis. ♦ Trout’s price rose 7% compared to Q3 2016 and 28% if comparing whole cumulative periods (2017 YTD vs. 2016 YTD). ♦ Better sale prices and lower costs allowed an increase of 100% in the Operational Margin and of 203% in the EBITDA on a QoQ basis.
♦ Five quarters in a row with positive EBIT, EBITDA and Net Income ♦
Net Financial Debt presents a reduction of US$ 25,7 millions compared to December of 2016.
♦ Recovery of the Company’s productive capacity in progress.
Pág. Nº3
Highlights
Financial Review Production’s Performance Sales Outlook
Consolidated P&L
Figures in thousands US$
Q3-17
Q3-16
∆QoQ
2017 YTD
2016 YTD
∆YoY
2016
Revenues Cost of Goods Sold (1) Operational Margin
106.283 -84.213 22.070
121.315 -110.267 11.048
-12% -24% +100%
423.889 -312.060 111.829
403.580 -389.463 14.117
+5% -20% +692%
618.628 -535.395 83.233
-6.629 15.441
-5.951 5.096
+11% +203%
-19.949 91.880
-20.427 -6.310
-2% -
-26.999 56.235
% EBITDA / Revenues
14,5%
4,2%
21,7%
-1,6%
Adjustment by depreciation and amortization EBIT pre FV adj.
-8.354 7.087
-6.567 -1.470
+27% -
-24.731 67.149
-24.104 -30.414
+3% -
-32.748 23.487
Net efect of biomass Fair Value Adj. (3) EBIT post FV adj.
10.043 17.130
23.402 21.932
-57% -22%
-4.416 62.733
57.731 27.318
+130%
59.916 83.402
Financial expenses Financial Income Other non operational income/expenses (4) Income taxes Net Income
-4.579 226 903 -3.270 10.410
-5.188 147 1.695 -9.700 8.886
-12% +53% -47% -66% +17%
-13.923 752 -395 -15.454 33.713
-13.262 451 -44.265 1.082 -28.676
+5% +67% +99% -
-18.957 664 -46.480 -11.733 6.896
9,8%
7,3%
8,0%
-7,1%
Other costs and operating expenses (2) EBITDA pre FV adj.
% Revenues
(1) (2) (3) (4)
9,1%
1,1%
“Cost of Goods Sold” minus the “Adjustment by depreciation and amortization” “Costs of Distribution” plus “Administration Expenses” “Fair Value of harvested and sold biologic assets” plus “Fair Value of biologic assets of the exercise” “Other Income” minus “Other Expenses” plus “Exchange Rate differences” plus “Result of units adjustments”
Pág. Nº5
Quarterly Financial Ratios Evolution Sales (US$ millions)
EBITDA* (US$ millions) 63
226 193 191 158
224
202
192 172
152
50
215 151
146
158
197
39
159 25
121 135
121
124
100 96
19
106
15 5
2
0
56
26
22 15 5
-1
-2 -18 -21
-10
-12 -19
-17 -26
Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17
Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17
-12
EBIT** (US$ / Kg WFE)
Net Income (US$ millions)
36 1,75 1,73
26
1,56 18
1,03
10
9
11
0,82
0,74 0,52
5
2
0,40
0,34 0,01
-2
-5
-2 -5
-10 -17
-3 -12
-0,08
-0,22
-0,24
-0,28
-8
-0,35
-0,63 -0,92
-17
-0,69 -0,89
-1,13 -1,25
-21
-1,23 -1,48
-30 -30
-28
* EBITDA & EBIT Pre Fair Value
** EBIT of Salmons and Trout
Q3-17
Q2-17
Q1-17
Q4-16
Q3-16
Q2-16
Q1-16
Q4-15
Q3-15
Q2-15
Q1-15
Q4-14
Q3-14
Q2-14
Q1-14
Q4-13
Q3-13
Q2-13
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17
-36
Pรกg. Nยบ6
Financial Summary by Specie
Tilapia
Pacific Salmon
Trout
Atlantic Salmon
Q3-2017
2017 YTD
Volume (Ton WFE):
7.682
28.971
Sales (Th. US$):
47.730
200.259
EBIT (Th. US$):
4.216
37.159
EBIT / Kg (US$/Kg WFE):
0,55
1,28
Volume (Ton WFE):
2.725
8.103
Sales (Th. US$):
18.200
55.485
EBIT (Th. US$):
3.558
17.077
EBIT / Kg (US$/Kg WFE):
1,31
2,11
Volume (Ton WFE):
31
9.765
Sales (Th. US$):
186
48.246
EBIT (Th. US$):
-89
14.395
EBIT / Kg WFE (US$/Kg WFE):
-2,87
1,47
Volume (Ton WFE):
4.050
14.352
Sales (Th. US$):
10.553
35.744
EBIT (Th. US$):
-599
-1.482
EBIT / Kg WFE (US$/Kg WFE):
-0,15
-0,10
Q3 Sales (US$)
62%
18%
2%
14%
Pรกg. Nยบ7
Balance Sheet Sep 17
Dec 16
∆ YTD
Total Assets Cash and cash equivalents Accounts receivables Biological assets - Inventory PP&A Others Assets
790,730 42,577 49,093 301,844 188,586 208,630
759,552 36,993 82,383 257,327 179,413 203,435
+0.5% +93.7% -48.5% -2.8% +5.3% +3.2%
Total Liabilities Financial Debt Accounts payable Others Liabilities
425,088 254,609 114,902 55,576
430,972 274,648 124,379 31,944
+5.3% -8.7% -13.8% +56.5%
Equity
365,642
328,580
+8.1%
Total Equity and Liabilities
790,730
759,552
+0.5%
Figures in Th. US$
♦
Total Assets grew 4,1% between December 2016 and September 2017, mostly because of a higher collection of sales during the period and also due to a bigger volume of growing biomass. Adding to that, the consolidation of Salmones Chaicas also had an effect on the asset base’s growth.
♦
Total Liabilities show a decrease of 1,4%, pushed by the reduction of Financial Debt and the lower volume of Accounts Payables.
Pág. Nº8
Cash Flow
Summary (Thousands of US$) 2017 YTD
2016
∆ YoY
Operating activities
55,612
58,522
-5%
Investment activities
-11,110
8,532
-
Financing activities
-40,180
-39,369
+2%
Net change in cash Cash at the end of the period
5,584 42,577
27,547 36,993
-80% +15%
Cash variation
♦
The Operation Activities show an increase of MMUS$ 45 if compared to Q3 2016
♦
The disbursement of MMUS$ 11,1 for Investment Activities is made up by 31% destined to the acquisition of Salmones Chaicas S.A. and by 69% related to other investments in Fixed Assets.
♦
On the Financing Activities side, as of 30th of September 2017, the Company registers two amortizations of MMUS$ 15 each related to the Syndicated Debt .
(Figures in ThUS$)
+55,662
-11,110
42,577
36,993
31 Dec 2016
-40,230
Operating
Investment
Financing
30 Sep 2017
Pág. Nº9
Highlights Financial Review
Production’s Performance Sales Outlook
1,53 1,42
FCRe* Quarterly
1,39
0%
Monthly mortality (%)
4,5
sept-17
jun-17
mar-17
dic-16
sept-16
jun-16
mar-16
dic-15
sept-15
jun-15
mar-15
dic-14
sept-14
7,6
jun-14
10,0
mar-14
11,8
dic-13
13,6
sept-13
16,1
jun-13
18,1
mar-13
Q3-17
Q2-17
Q1-17
Q4-16
Harvests (Thousand tons. WFE)
mar-12 jun-12 sept-12 dic-12 mar-13 jun-13 sept-13 dic-13 mar-14 jun-14 sept-14 dic-14 mar-15 jun-15 sept-15 dic-15 mar-16 jun-16 sept-16 dic-16 mar-17 jun-17 sept-17
1,56
Q3-17
1,57
Q3-16
10,1
Q2-17
1,59
Q2-16
15,9
Q1-17
1,51
Q1-16
7,5
2016
1,73
Q4-15
20,1
2015
1,73
2014
16,4
Q3-15
13,8
Q2-15
Q1-15
14,7
2013
1,43
2012
1,49
Q4-14
Q3-14
Q2-14
17,6
2011
2010
Q1-14
Q4-13
15,2
2009
1,53
2008
1,46
Q3-13
Q2-13
Q1-13 16,5
2007
2006
Summary by Specie: Atlantic Salmon Harvest weight evolution (Kg WFE)
21,4
6,0 5,35
5,9 5,4
3,0
1,5
0,0
Algae Bloom
2,27
5%
4%
3%
2%
1%
0,75%
* Economic Feed Convertion Ratio
Pรกg. Nยบ11
1,38
FCRe*
1,54
1,29
sept-17
jun-17
mar-17
dic-16
sept-16
jun-16
mar-16
dic-15
sept-15
jun-15
mar-15
dic-14
sept-14
jun-14
mar-14
dic-13
3,3
sept-13
11,1
jun-13
11,9
mar-13
Q3-17
Q2-17
Harvests (Thousand tons. WFE)
mar-12 jun-12 sept-12 dic-12 mar-13 jun-13 sept-13 dic-13 mar-14 jun-14 sept-14 dic-14 mar-15 jun-15 sept-15 dic-15 mar-16 jun-16 sept-16 dic-16 mar-17 jun-17 sept-17
1,32
Q1-17
3,4 3,6
Q3-17
1,53
Q4-16
Q3-16
Q2-16
Q1-16
Q4-15
1,9
Q2-17
1,50
Q1-17
1,35
2016
1,53
Q3-15 4,0
2015
1,88 5,1
2014
4,6
Q2-15
4,2
Q1-15
5,8
2013
1,53
Q4-14
4,7
2012
1,53
Q3-14
Q2-14
Q1-14
5,1
2011
1,48
2010
5,8
Q4-13
Q3-13
Q2-13
Q1-13 5,3
2009
2007
2006
Summary by Specie: Trout Harvest weight evolution (Kg WFE)
4,5
3,0 3,1
5,7 4,5
1,9
1,5
0,3
0,0
Monthly mortality (%)
Quarterly
1,75
8%
6%
4%
2% 0,82%
0%
* Economic Feed Convertion Ratio
Pรกg. Nยบ12
1,31 1,32 1,25 1,20
FCRe* Quarterly
1,42
1,05
jun-14
1,5
sept-17
jun-17
mar-17
dic-16
sept-16
jun-16
mar-16
dic-15
sept-15
jun-15
mar-15
dic-14
sept-14
0,03
mar-14
0,2
dic-13
6,4
sept-13
12,2
jun-13
17,9
mar-13
Harvests (Thousand tons. WFE)
mar-12 jun-12 sept-12 dic-12 mar-13 jun-13 sept-13 dic-13 mar-14 jun-14 sept-14 dic-14 mar-15 jun-15 sept-15 dic-15 mar-16 jun-16 sept-16 dic-16 mar-17 jun-17 sept-17
4,7
Q3-17
6,6
Q2-17
0,6
Q1-17
1,23
2016
1,28
2015
1,32
Temp 14-15
2014
1,23 11,1
2013
Temp 13-14
2012
11,6
2011
20,1
2010
Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17
Temp 12-13
2009
1,32
2008
1,30
2007
2006
Summary by Specie: Pacific Salmon Harvest weight evolution (Kg WFE)
Temp 15-16 Temp 16-17
4,5
14,5
9,4
3,0 1,20
0,6
0,0
Monthly mortality (%)
6%
1,20
1,31 4%
2% 1,56%
0%
* Economic Feed Convertion Ratio
Pรกg. Nยบ13
Highlights Financial Review Production’s Performance
Sales Outlook
Sales’ Revenues Sales Volume (Th. tons WFE)
27 28
31
28
23
32
30
22
Trout
QoQ)
18
Q1-17
12 10
Q4-16
Q3-16
Q2-16
Q1-16
Q4-15
Q3-15
Q2-15
Q1-15
Q4-14
Q3-14
Q2-14
Q1-14
Q4-13
Q3-13
Q2-13
Atlantic Salmon
Physical sales of 10.000 tons WFE of salmonids during Q3 2017 (∆-20,6%
24 13
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
13 13
20
19 18
16
27
Q3-17
32
Q2-17
29
♦
34
♦
Pacific Salmon experienced a reduction of its physical sales (∆-99,3%)
♦
Atlantic Salmon and Trout experienced a growth of ∆+10% y ∆+49,2% respectively on their physical sales
Pacific Salmon
Atlantic Salmon Price Evolution - Fob Miami (US$ / Trim D 2-3 Lb) 7,0
♦
6,0
Lower QoQ market price (∆ -9% QoQ) ♦
5,0 4,0 3,0
Nevertheless, the Q3-17 sales price for the mix of salmonids of AquaChile grew by 15,7% compared to Q3-16.
dic-10 mar-11 jun-11 sept-11 dic-11 mar-12 jun-12 sept-12 dic-12 mar-13 jun-13 sept-13 dic-13 mar-14 jun-14 sept-14 dic-14 mar-15 jun-15 sept-15 dic-15 mar-16 jun-16 sept-16 dic-16 mar-17 jun-17 sept-17
2,0
Source: Urner Barry
Pág. Nº15
Analysis of the QoQ Income Variation Figures in million US$
Atlantic Salmon
Sales Q3-16
+4
121
Pacific Salmon
Trout
+1
+6
Feed
Other Income
Sales Q3 -17
+9 +0
-0
-26
∆ Price
♦
Tilapia
-1
106 -2
-8
∆ Volume
The lower volumes of Pacific Salmon sold during Q3-17 (∆ -4.305 tons WFE) explain most of the reduction in sales of the third quarter of the year if compared to the same period of 2016. This couldn’t be compensated by the higher sale prices of this specie neither by the higher sale volumes of Atlantic Salmon and Trout.
Pág. Nº16
Final Products’ Sales by Market
(as of September 2017)
Figures in millions US$ 140
120
140
100
120
80
100
140
60
140
80
99
19
120
60
20
100
100
40
17
80
20
USA (37%)
60
0
2
Russia 9 (10%)
100
80
0
Europe (6%)
40
20
120
140
40
120
12
60
80
Asia ex–Japan (6%) 60
40
40
20
20
10 4 5
36 31
4
Japan (23%)
0
0
0
140
120
100
80
60
LATAM 50 (18%)
40
20
2 4
0
Salar
Trout
Coho
Pág. Nº17
Highlights Financial Review Production’s Performace Sales
Outlook
World’s Harvests Projection Atlantic Salmon (Th. tons) 2.228
2.000
2.042 446
1.634 559
1.634 407
453
2.398
2.317 2.162
2.255 539
485 486
512
430
583
598
364
468
1.183
1.144
1.199
2012
2013
2014
582 505
548
1.234
1.171
1.195
1.277
2015
2016
2017E
2018E
221 130
945
1.006
2010
2011
Norway
Chile
Others
Source: ABG Sundal Collier
Pág. Nº19
Atlantic Salmon Price Evolution
Norway
Chile
Source: ABG Sundal Collier
♦
By the 27th week of the year the price of the chilean Atlantic Salmon in Miami (Trim D and average weight of 3–4 Lb) began to show a downward trend, but since the 31st week it has stabilized around 4,7 US$/lb.
Pág. Nº20
AquaChile’s Production Outlook Harvests Tons WFE
Q1-16
Q2-16
Q3-16
Q4-16
2016
Q1-17
Q2-17
Q3-17
Q4-17
2017E
2018 E
Atlantic Salmon
21.404
5.945
5.353
16.060
48.762
11.755
10.039
7.586
19.836
49.216
52.784
Trout
4.483
259
1.850
3.447
10.039
3.554
1.908
3.332
1.329
10.124
19.852
Pacific Salmon
4.728
0
186
17.902
22.815
6.404
0
32
17.761
24.197
23.429
Total Salmonids
30.615
6.204
7.388
37.409
81.616
21.714
11.947
10.950
389.126
83.537
96.065
Tilapia
4.275
4.462
4.667
4.019
17.424
5.068
4.342
4.091
4.160
17.662
16.895
Total Salmonids & Tilapia
34.891
10.666
12.055
41.428
99.040
26.782
16.290
15.041
43.086
101.199
112.960
CAPEX (Figures in million US$) 70 49 38
30
`06
25
22
`07
`08
5
6
`09
`10
32 20
17
13 3
`11
`12
13
14
15
16
17E
18E
Pág. Nº21
Thank you
Investor.relations@aquachile.com