Q Aker BioMarine Accelerated growth. Hallvard Muri, CEO Fredrik Dokk Nygaard, CFO Matts Johansen, EVP Sales & Marketing. The preferred partner

Transcription

1 Aker BioMarine Accelerated growth Q Hallvard Muri, CEO Fredrik Dokk Nygaard, CFO Matts Johansen, EVP Sales & Marketing

2 Aker BioMarine Highlights Q Aker BioMarine s krill harvesting operation receives MSC certification Good fisheries and Qrill TM production 24% higher than Q First time positive EBITDA for Aker BioMarine Group Continued strong revenue growth for both Superba TM Krill and Qrill TM New production facility onstream Partnering with VitaeLab for direct sales Refinancing completed according to plan 2

3 Aker BioMarine Key performance indicators Last five quarters (Q2/09 Q2/10) Operating revenues NOK million Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 EBITDA NOK million Q2 09 Q3 09 Q4 09 Q1 10 Q Qrill TM production MT Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Sales Superba Krill MT Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Sales Qrill TM MT Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 3

4 Q Income statement Income statement Actual Actual Actual Actual Actual Actual YTD Actual YTD Year Amounts in NOK million Q Q Q Q Q Operating revenues Inventory change 12 (17) (24) (16) Other operating expenses (68) (66) (62) (81) (97) (149) (178) (276) Operating profit before depreciation and amortization (22) (41) (36) (11) 1 (70) (9) (147) Depreciation and amortization (16) (16) (16) (16) (17) (31) (33) (63) Impairment changes and non recurring items (38) (0) -0 (38) Operating loss (38) (57) (90) (27) (16) (101) (43) (247) Financial income Financial expenses (28) (28) (31) (29) (27) (61) (56) (121) Non recurring financial items (26) (26) Loss before tax (48) (65) (111) (47) (57) (129) (104) (304) Income tax expense 0 (0) (0) 0 0 Net loss from continuing operations (47) (65) (111) (47) (57) (128) (104) (304) Other income Translation differences (0) (0) (1) 59 0 Total profit for the period (48) (65) (109) (29) (15) (129) (44) (304) Continued revenue growth from Superba Krill TM and Qrill TM Aker BioMarine Group EBITDA positive for first time Operating expenses impacted by high harvesting and production activity and inventory build up Non recurring financial items of NOK 26m relate to refinancing charges (majority non cash) 4

5 Refinancing Refinancing completed according to plan Aker group positions at closing NOKm Short term loan Aker bonds Convertible debt (par) Aker Ocean Harvest Aker ASA 510 Debt Receivables Residual debt Sources and uses NOKm Closing Gross proceeds 638 Total sources 638 Transaction costs 10 Aker residual debt 510 Reset overdraft facility 23 Net cash proceeds 95 Total uses 638 Capital structure NOKm Q1 Q2 Secured debt (USD) NOK bond Aker debt 527 Other debt Overdraft facility 23 Gross debt Cash 3 76 Receivables 517 NIBD Equity ratio improved from 10% to 60% and gross debt reduced from NOK 1.4bn to NOK 424m Net debt reduced from NOK 890m to approximately NOK 350m Net cash proceeds improved liquidity position

6 Q Balance sheet and cash flow Balance sheet Q1/10 Q2/10 Q2/09 YE 2009 Total assets Total equity Net interest bearing debt Equity % 36% 61% 45% 38% Cash flow Q1/10 Q2/10 Q2/09 YTD Cash flow from operating activities Cash flow from investment activities Cash flow from financing activities Cash flow in the reporting period Effects of changes in exchange rates on cash 1 Cash and cash equivalents beginning of period Cash and cash equivalents end of period Operating cash flow impacted by working capital build up of NOK 51m YTD Investments relate to payment of work performed on Saga Sea and La Manche last year and some documentation work Cash flow from financing reflects repayment of Aker debt, repayment of overdraft facility as well as share issue 6

7 Q Revised company guidance for 2010 Guiding February 2010 Guiding August MT of Superba Krill at 2009 prices 8,000 10,000 MT of Qrill, company will through documentation prove Qrill value and gradually increase pricing Krill segment to be marginal EBITDA positive MT of Superba Krill at current prices 9,000 10,000 MT of Qrill, continue effort through documentation prove Qrill value and gradually increase pricing Krill segment to be EBITDA positive

8 For our Qrill, we receive excellent customer feedback, while demand is further increasing Excellent customer feedback Continuous demand and order requests from existing and new customers We now use krill meal to fully replace the fishmeal and squid meal we used previously. Krill meal in our shrimp feeds is a fantastic attractant and our customers say that shrimp fed these diets grow faster Erwin Tjia, General Manager of PT. Luxindo Internusa in Indonesia 1 Further improved average sales price Krill meal arrived and smells fantastic. It's really fresh. Juvenile fish from my customers will love it Feed producer 1 Source: Aqua Culture Asia Pacific, Volume 6, Number 3 May/June 2010

9 Superba Krill oil experienced particular strong growth in the U.S. and Europe in Q Superba sales development +66% % 69% Europe US Very strong Q2 results increase of 66% compared to Q1 Continuous growth both in the US and Europe Further regional diversification as Europe s share increased significantly Q3 09 Q4 09 Q1 10 Q2 10

10 Good news are coming from all geographic regions US Established strong, local sales force in the US. Continuous strong growth both through new clients and our main client Schiff MegaRed "Schiff MegaRed Krill Oil continued to deliver particularly strong growth Bruce Wood, President and CEO 1 Europe VitaeLab successfully launched VitaePro with Superba TM Krill Customers starting to invest into marketing to educate the European consumer market Strong growth through existing customer starting to have success 1st delivery to Taiwan 1st delivery to Russia 1st order from South Africa Rest of world 1 Source: Schiff Nutrition International, Inc., Fiscal 2010 Fourth Quarter results announcement

11 Aker BioMarine signed an important agreement for the Direct to consumer (DTC) market with VitaeLab Background on VitaeLab and the agreement Next generation VitaePro Pure Krill product VitaeLab One of the biggest Nordic DTC companies dedicated to dietary supplements 5 year exclusive supply agreement Agreement Options for additional 6 years Minimum commitment of 30 tons Superba until end 2011 Superba is added in existing products as well as sold as pure Krill product Sale of Aker BioMarine s direct customer base The best of all worlds in a better and even more complete supplement Superba Krill oil as a new VitaeLab product New brand will be introduced

12 VitaeLab received excellent customer feedback and plans to expand step by step to further Launched in June: regional scope N FIN Example of communication DK D S Successful transaction VitaeLab successfully launched the new VitaePro with Superba TM to existing and new customers Excellent consumer feedback for new generation VitaePro

13 Since the beginning, Aker BioMarine is committed to high sustainable standards for its Krill fishery Eco Harvesting TM Cooperation with World Wide Fund for Nature (WWF) Norway Research on Krill Unique fishing technology invented by Aker BioMarine Developed and implemented improved operational standards Cooperation with Institute of Marine Research (Norway) and British Antarctic Survey High environmental standards in place Well documented ecological research Ecological footprint comparison Japanese Anchovy Antarctic Krill Atlantic Herring Peruvian Anchovy Blue Whiting Carbon Footprint Marine Footprint

14 Due to well established ecological standards, Aker BioMarine was MSC certified in May 2010 Background and goal of MSC 3 principles and AKBM s scoring International non profit organisation with Independent certifying body 1 Sustainability of Exploited Stock 84 Public assessment process Only certification and eco labelling programme for wild capture fisheries* 2 Maintenance of Ecosystem 91 Reward sustainable fishing practices 3 Effective Management System Minimum to pass 93 * Consistent with ISEAL Code of Good Practice for Setting Social and Environmental standards United Nations Food and Agricultural Organisation (FAO) guidelines

15 Aker BioMarine continuous to execute and strongly promote high sustainability standard A Monitor Krill biomass Contribute to examining distribution of Krill in space and time B Support CCAMLR management Provide all required data and information Support independent research (e.g. by utilizing our infrastructure) Strongly commit to sustainability and drive the industry towards Contributing to science (e.g. surveys on biomass of Krill) Transparency (e.g. allowing independent observer on each vessel) C Research on predator interaction Further explore interaction between fishery and predators Goal: develop optimized fishing pattern

16 Disclaimer This Document includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Document are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Aker BioMarine ASA and Aker BioMarine ASA s (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as expects, believes, estimates or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Aker BioMarine's businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Document. Although Aker BioMarine ASA believes that its expectations and the Document are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Document. Aker BioMarine ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Document, and neither Aker BioMarine ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use. The Aker BioMarine group consists of many legally independent entities, constituting their own separate identities. Aker BioMarine is used as the common brand or trade mark for most of this entities. In this document we may sometimes use Aker BioMarine", "Group, "we" or "us" when we refer to Aker BioMarine companies in general or where no useful purpose is served by identifying any particular Aker BioMarine company. 16