Q4 2017 Results Presentation Empresas Aquachile S.A. As of December 31st, 2017
01. Highlights 02. Financial Review 03. Productive Performance 04. Sales 05. Outlook
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Salmonid’s prices showed an increase of 20% if comparing full years
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Operational Margin of 27% in 2017, representing an increase of 105% from 2016
Highlights of the Period
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ROE of 16.8% in 2017 versus 2.6% in 2016
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Six quarters in a row with positive EBIT, EBITDA and Net Income
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Net Financial Debt presents a reduction of US$ 59,7 million during 2017
01. Highlights 02. Financial Review 03. Productive Performance 04. Sales 05. Outlook
Financial Review
Consolidated P&L Statement Figures in ThUS$
Q4-17
Q4-16
∆QoQ
2017
2016
∆YoY
208,849 -150,073 58,777
215,048 -145,932 69,116
-3% +3% -15%
632,738 -462,133 170,606
618,628 -535,395 83,233
+2% -14% +105%
-8,714 50,062
-6,571 62,545
+33% -20%
-28,664 141,942
-26,999 56,235
+6% +152%
24,0%
+29.1%
22,4%
+9.1%
Depreciation & Amortization EBIT pre FV adj.
-9,542 40,520
-8,644 53,901
+10% -25%
-34,273 107,669
-32,748 23,487
+5% +358%
Net Revenues from biological assets (3) EBIT post FV adj.
806 41,327
2,184 56,085
-63% -26%
-3,610 104,059
59,916 83,402
+25%
Financial expenses Financial income Other non operating items (4) Income taxes Net income
-4,293 272 -1.283 -10,824 25,199
-5,695 213 -2,215 -12,815 35,573
-25% +28% +42% -16% -29%
-18,215 1.025 -1,678 -26,278 58,912
-18,957 664 -46,480 -11,733 6,896
-4% +54% +96% +124% +754%
12,1%
+16.5%
9,3%
+1.1%
Sales Operational cost (1) Operational margin Other cost and operating expenses (2) EBITDA pre FV adj. % EBITDA / Sales
Financial Review
% Net Income / Sales
(1) “Cost of Goods Sold” minus the “Adjustment by depreciation and amortization” (2)“Costs of Distribution” plus “Administration Expenses” (3)“Fair Value of harvested and sold biologic assets” plus “Fair Value of biologic assets of the exercise” (4)“Other Income” minus “Other Expenses” plus “Exchange Rate differences” plus “Result of units adjustments”
Quarterly Financial Ratios Evolution Sales (US$ millions)
63
121 25
19
15
5
5 -1
-2
EBIT** (US$ / Kg WFE)
36
1,75 25
26 18 11
1,73
1,56
1,22
1,03
0,82
10
9
0,52
5
2
0,74
0,40
0,34 0,01
* EBITDA & EBIT Pre Fair Value
4T17
3T17
2T17
1T17
4T16
3T16
2T16
1T16
4T15
1T15
4T14
3T14
2T14
1T14
4T13
3T13
2T12
1T12
4T17
3T17
2T17
1T17
4T16
3T16
2T16
1T16
4T15
3T15
1T15
4T14
3T14
2T14
1T14
4T13
-1,23 -1,48
-30 -30
-36 3T13
2T13
1T13
4T12
3T12
-28 2T12
-1,13 -1,25
-21
2T13
-17
-0,35 -0,69 -0,89
3T15
-12
2T15
-17
-8
1T13
-10
-0,08
-0,22
-0,24 -0,63 -0,92
-0,28
2T15
-2 -3
4T12
-5
3T12
-2
-5
1T12
4T17
-17
3T17
-26
2T17
3T14
2T14
1T14
4T13
3T13
-19
-10 1T17
-12 2T13
1T13
-18 -21 4T12
3T12
2T12
1T12
-12
4T16
4T17
3T17
2T17
1T17
4T16
3T16
2T16
1T16
4T15
3T15
2T15
1T15
4T14
3T14
2T14
1T14
4T13
3T13
2T13
1T13
4T12
3T12
2T12
1T12
15
2
0
Financial Review
26
22
3T16
56
Net Income (US$ millions)
50
39
106
2T16
121
124
100 96
50
1T16
135
4T15
158
159
3T15
152
151
146
209
197
2T15
172
192
215
1T15
158
191
224
4T14
193
202
226
EBITDA* (US$ millions)
** EBIT Salmon & Trout
Financial Summary by Specie Q4-2017 2017 FY Volume (Ton WFE): Sales (Th. US$):
Atlantic Salmon Salmo Salar
EBIT (Th. US$): EBIT / Kg (US$/Kg WFE): Volume (Ton WFE): Sales (Th. US$):
Financial Review
Trout
Oncorhynchus Mykiss
EBIT (Th. US$): EBIT / Kg (US$/Kg WFE):
Volume (Ton WFE): Sales (Th. US$):
Pacific Salmon Oncorhynchus Kisutch
EBIT (Th. US$): EBIT / Kg WFE (US$/Kg WFE):
Volume (Ton WFE): Sales (Th. US$):
Tilapia Niloticus
EBIT (Th. US$): EBIT / Kg WFE (US$/Kg WFE):
17,008 100,897 19,982 1.17
45,979 301,156 57,051 1.24
2017 Sales (US$)
56%
2,135 12,667 1,847 0.87
10,238 68,152 18,924 1.85
13%
14,332 68,260 19,038 1.33
24,098 116,505 33,433 1.39
22%
3,844 10,452 -257 -0.07
18,196 46,196 -1,739 -0.10
9%
Balance Sheet Statement Figures in ThUS$
2017
2016
∆ YoY
794,890 40,772 76,125 288,256 191,448 198,290
759,552 36,993 82,383 257,327 179,413 203,435
+4,7% +10,2% - 7,6% +12,0% +6,7% - 2,5%
Total Liabilities Financial Debt Accounts payable Others Liabilities
403,365 218,731 132,004 52,630
430,972 274,648 124,379 31,944
- 6,4% - 20,4% +6,1% +64,8%
Equity
391,525
328,580
+19,2%
Total Equity and Liabilities
794,890
759,552
+4,7%
Total Assets Cash and cash equivalents Accounts receivables Biological assets - Inventory Properties, plants & equipments Others Assets
Financial Review
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Total Assets grew 4.7% during 2017 due to a higher colletction of sales, a bigger volumen of growing biomass, and the addition of Salmones Chaicas’ assets
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The reduction of 6.4% in the Total Liabilities is explained in big part by four amortizations to the Syndicated Debt that totallized US$ 60 million in 2017
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The Equity of the firm shows an increase of 19.2% due to the profits of the period
Cash Flow Statement u
Summary (Figures in Th.US$) 2017
2016
∆ YoY
Operating activities
99,313
58,522
+70%
Investment activities
- 16,114
8,532
-
- 80,869
- 39,369
+105%
3,779 40,772
27,547 36,993
- 86% +10%
Financing activities Net change in cash Cash at the end of the period
Financial Review
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The Operation generated cash for US$99.3 million, that represents an increase of US$40.8 million from 2016. This is explained by a higher level of collections and a lower disbursement in payments to suppliers
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On the Investement Activities, the company outlayed MMUS$ 16.1 that are explained by the aquisition of Salmones Caicas and the investements in CAPEX
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The Financing Activities register four amortizations to the Syndicated Debt, for a total of US$60 million, of which US$35 million were voluntary repayments
Cash Variation in 2017 (Figures in Th. US$)
+99.313 -16.114
40.772
36.993 -80.869 Initial Cash
Operating
Investment
Financing
Final Cash
01. Highlights 02. Financial Review 03. Productive Performance 04. Sales 05. Outlook
Productive Performance
* Economic Feed Convertion Ratio 0% Oct-17
Jul-17
Abr-17
Ene-17
Oct-16
Jul-16
Abr-16
Monthly mortality(%)
Ene-16
Oct-15
Jul-15
Abr-15
Ene-15
Oct-14
Jul-14
Abr-14
Ene-14
Oct-13
1,47
Jul-13
1,39
Abr-13
FCRe*
Ene-13
Quarterly
0,0 Oct-17
Jul-17
Abr-17
Ene-17
Oct-16
Jul-16
Abr-16
Ene-16
Oct-15
Jul-15
Abr-15
Ene-15
Oct-14
Jul-14
Abr-14
Ene-14
Oct-13
7,6
Oct-12
10,0
Jul-13
21,4
Jul-12
16,1
Abr-13
18,7
Abr-12
1,42
4T17
5,9 5,4
3T17
2T17
18,1
4T17
1,53
1T17
10,1 11,8
3T17
1,56
4T16
13,6
2T17
1,57
3T16
2T16
15,9
1T17
1,59
2016
1,51
2015
1,73
1T16
20,1
4T15
Harvests (Th. ton WFE)
2014
1,73 3T15
2T15
16,4
2013
1,43
2012
1,49 1T15
17,6
2011
4T14
3T14
2T14
14,7
2010
1,53
2009
13,8
1T14
4T13
15,2
2008
1,46 3T13
2T13
16,5
2007
2006
Summary by Specie: Atlantic Salmon Harvest weight (Kg WFE)
6,0 4.65
4,5
3,0 1,5
Productive Performance Algae Bloom
5%
2,27 4% 3%
2% 1% 0.75%
* Economic Feed Convertion Ratio 0%
Oct-17
Jul-17
Abr-17
Ene-17
Oct-16
Jul-16
Abr-16
Ene-16
Oct-15
Jul-15
Abr-15
Ene-15
Oct-14
Jul-14
Abr-14
Ene-14
Oct-13
6,0
Dic-17
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
Quarterly
Sept-13
FCRe*
Jun-13
0,0
Mar-13
1,29
1,5
Dic-12
0,3 1,3
Jul-13
3,3
Sept-12
4,5
Abr-13
5,7
Jun-12
1,9
3T17
Harvests (Th. ton WFE)
Mar-12
1,38
2T17
1T17
1,9
4T17
1,32
3,6
3T17
1,54
4T16
3T16
2T16
1T16
3,4
2T17
1,53
1T17
2016
1,50
4T15
3T15
4,0
2015
1,53
2014
1,88
5,1
2T15
4,6
1T15
5,8
2013
1,53 4T14
4,2
2012
1,53 3T14
2T14
4,7
2011
1,48 1T14
4T13
5,1
2010
2009
1,35 3T13
2T13
5,8
2007
2006
Summary by Specie: Trout
11,1
Harvest weight (Kg WFE) 4.65
4,5
3,0
Productive Performance Monthly mortality (%)
8%
1,75 6%
1,28 4% 2% 0.43%
* Economic Feed Convertion Ratio 0% Dic-17
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
1,05
Sept-13
Quarterly
Jun-13
FCRe* 0,0
Mar-13
0,03
Dic-12
Dic-17
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
6,4
Dic-13
12,2
Sept-12
14,5
Sept-13
17,8
Jun-13
17,9
4T17
Season 16-17
Jun-12
1,31
3T17
Harvests (Th. ton WFE)
Mar-12
1,20
2T17
0,2
4T17
1,20
3T17
4,7
1T17
4T16
0,6 3T16
6,6
2T17
1,25
2T16
1T16
4T15
3T15
Season 15-16
1T17
1,32
2016
1,31
2015
1,23
2T15
1T15
Season 14-15
2014
1,28
2013
1,32
2012
11,1
4T14
3T14
Season 13-14
2011
1,23
2010
1,42 2T14
11,6
1T14
4T13
3T13
2T13
S. 12-13
2009
1,32
2008
1,30
2007
2006
Summary by Specie: Pacific Salmon Harvest Weight (Kg WFE)
T. 17-18
4,5 3.04
3,0
1,5
Productive Performance Monthly mortality (%)
6%
1,33 4%
2% 1.86%
01. Highlights 02. Financial Review 03. Productive Performance 04. Sales 05. Outlook
Sales
Sales’ Revenues Sales (Th. ton WFE)
28
23
30
u 24
22
Trucha
1T17
12 10
4T16
3T16
2T16
1T16
4T15
3T15
2T15
1T15
4T14
3T14
2T14
1T14
4T13
3T13
2T13
Salmón del Atlántico
Physical sales of 33,000 tons WFE of Salmons and Trout during Q4 2017 (∆+4,7% QoQ)
18 13
1T13
4T12
13
3T12
2T12
1T12
13
20
19 18
16
27
33
32
u
Pacific Salmon and Trout saw a reduction on its physical sales by -4% and -30% respectively if compared to Q4 2016
u
Atalantic Salmon physical sales experienced a growth of +21% during Q4 2017 if compared to the same period of 2016
4T17
31
3T17
27 28
34
2T17
29
32
Salmón del Pacífico
Sales Evolución precio Salmón del Atlántico Fob Miami (US$ / Trim D 2-3 Lb)
u
Lower Market Price (∆ -13% QoQ)
7,0 u
6,0 5,0 4,0
Dic-17
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
Sept-13
Jun-13
Mar-13
Dic-12
Sept-12
Jun-12
Mar-12
Dic-11
Sept-11
Jun-11
Mar-11
2,0
Dic-10
3,0
Source: Urner Barry
For the company, the Q4 2017 achieved price for Salmon and Trout was only 6.9% lower if compared to Q4 2016 .
Analisis of the FY Income Variation Figures in million US$
Sales
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The higher level of Revenues for the FY 2017 is explained by a higher sales price level during big part of the year for the three species of salmonids. This was partially compensated by lower sale volumes for both Atlantic and Pacific Salmon(∆ -6,075 tons WFE and ∆ -6,533 tons WFE respectively)
2017 Sales by Market Figures in million US$
35 150
2
12
91
Russia (10%)
22
43
Europe (5%)
15 0
Sales
6 8
6
10
Asia ex–Japan (5%)
United States (34%)
75
3
4
LATAM (17%)
Salar
Trucha
Coho
Japan (29%)
01. Highlights 02. Financial Review 03. Productive Performance 04. Sales 05. Outlook
Outlook
Atlantic Salmon Price Evolution
Norway
Chile
Outlook
Source: ABG Sundal Collier
u
By the 27th week of 2017 the prices for the Chilean Atlantic Salmon (Trim D, 3-4 Lb) in Miami began to show a downside trend, stabilizing around 4.7 US/Lb by the 32nd week of the year
AquaChile’s harvests outlook
Harvest volumes Tons WFE
Outlook
1T16
2T16
3T16
4T16
2016
1T17
2T17
3T17
4T17
2017
2018 E
Atlantic Salmon
21.404
5.945
5.353
16.060
48.762
11.755
10.038
7.586
18.685
48.064
48.500 - 50.000
Trout
4.483
259
1.850
3.447
10.039
3.554
1.908
3.332
1.326
10.121
20.000 - 21.000
Pacific Salmon
4.728
0
186
17.902
22.815
6.400
0
32
17.753
24.185
22.000 - 23.000
Total Salmons and Trout Tilapia Costa Rica
30.615
6.204
7.388
37.409
81.616
21.709
11.946
10.950
37.764
82.369
90.500 - 94.000
4.275
4.462
4.667
4.019
17.424
5.068
4.342
4.091
3.849
17.351
16.000 - 17.500
Total Salmonids and Tilapia
34.891
10.666
12.055
41.428
99.040
26.778
16.289
15.041
41.613
99.721
106.500 - 111.500