Santiago, May 11 th, 2018 Results Presentation 1Q18
Agenda I. Highlights II. III. Financial Statements Supply, Demand and Prices IV. Farming Operation V. Prospects 2
Highlights EBIT 1Q18 USD 18.8 million o 1Q18 EBIT/WFE kg Atlantic Salmon: 0.95 vs. 2.21 in 1Q17 (1.31 in 4Q17) o 1Q18 EBIT/WFE kg Coho Salmon: 0.94 vs 1.00 in 1Q17 (0.98 in 4Q17) Lower EBIT than in 1Q17 (-16.5 million) is explained by lower sale prices, compensated by higher volume sold and better costs: o Sale prices of 1Q18 reached 5.2 USD/lb* (-17% vs 1Q17) o Harvest 1Q18: 18,820 ton of Atlantic Salmon (+23% vs 1Q17) o Ex-plant cost improvement of 3.4% compared to 1Q17 Comparison with 4Q17: o Higher Atlantic Salmon Ex-plant cost (summer issues, SRS and lower harvest weights) Measured by the Urner Barry indicator that shows the average price for the Atlantic Salmon, D-Trim fillet, 3-4 lbs, in the US. 3
Highlights Net Income 1Q18 USD 12.6 million EBITDA 1Q18 USD 23.2 million During 1Q18 the 2016-2018 EBITDA goal associated to the Earn-Out of Mitsui s capital increase (2015) was achieved, which would result in an additional payment of USD 24.4 million Solid financial position result in a dividend payment of CLP$ 16/share o Total dividend with charge to 2017 profits: USD 39.1 million $16.7 CLP/share o Dividend yield 5.6% UB prices in week 19 (current week) for Chilean Atlantic Salmon in the US 6.5 USD/lb, achieving historical levels 4
Agenda I. Highlights II. III. Financial Statements Supply, Demand and Prices IV. Farming Operation V. Prospects 5
Consolidated Income Statement Main Indicators 1Q18 1Q17 Var. Var. % Harvests (WFE ton*) 18,820 15,261 3,559 23% Atlantic Salmon 18,820 15,261 3,559 23% Coho Salmon - - - n/a Sales (WFE ton) 19,330 17,037 2,293 13% Atlantic Salmon 17,614 15,119 2,495 17% Coho Salmon 1,716 1,919-202 -11% EBIT (USD/WFE kg) 0.95 2.07-1.12-54% Atlantic Salmon 0.95 2.21-1.26-57% Coho Salmon 0.94 1.00-0.06-6% Income Statement (Th. USD) 1Q18 1Q17 Var. Var. % Operating Revenues 121,822 126,751-4,929-4% Cost of Sales -98,059-87,305-10,754 12% SG&A -5,012-4,191-821 20% Operating EBIT ** 18,751 35,256-16,505-47% Fair Value adjustment of Biological Assets -675 13,145-13,820-105% Net income 12,640 34,002-21,362-63% Operating EBITDA ** 23,245 39,509-16,264-41% * Whole Fish Equivalent: Unit of measure that corresponds to the live weight after starvation and bleed-out. ** Pre Fair Value adjustment 6
EBIT USD/WFE Kg UB USD/lb Atlantic Salmon operating margin EBIT pre-ifrs (USD/WFE kg) 2016 2017 2018 2.50 2.21 2.09 7.5 7.0 2.00 1.74 USD/kg 6.5 6.0 1.50 1.00 0.85 1.40 1.31 0.95 5.5 5.0 4.5 4.0 0.50 3.5 3.0 0.00 FY Q1 Q2 Q3 Q4 Q1 2016 2017 2018 2.5 Atlantic Salmon EBIT (USD/WFE Kg) UB TD 3-4 lb Reference Price Annual average EBIT (USD/WFE kg) Source: Multiexport Foods 7
Consolidated Balance Sheet Balance Sheet (Th. USD) -18 Dec-17 Cash and Cash Equivalents 90,679 97,478 Inventories and Biological Assets 268,712 258,454 Accounts Receivable & Other Current Assets 59,719 61,490 PP&E 107,349 105,927 Other Assets 49,098 48,171 Total Assets 575,557 571,520 Financial Debt 94,186 101,072 Accounts Payable 77,061 84,259 Accounts Payable to Related Parties 27,770 18,791 Other Liabilities 47,255 41,803 Total Equity 329,285 325,595 Total Liabilities and Equity 575,557 571,520 Financial Ratios -18 Dec-17 Net Financial Debt (Th. USD) 3,507 3,594 Total Net Liabilities / Equity (x) 0.47 0.46 Current Ratio (x) 3.12 3.13 Source: Multiexport Foods Cash: -USD 6.8 MM Operational Cash Flow: +USD 10.6 MM Debt Amort. + Interest: -USD 7.8 MM Capex: -USD 9.5 MM Inv. + Biological Assets: +USD 10.3 MM Higher Biological Asset: +USD 9.8 MM Higher Inventory: +USD 1.1 MM Lower IFRS Adjust. (Biomass + Inventory): -USD 0.7 MM Financial Debt: -USD 6.9 MM Amortization and interests of the Syndicated Loan in ch Accounts Payable: -USD 7.2 MM Decrease due to the lower operation level registered during the quarter in comparison to 2017 s last months Accounts Payable to Related Parties: +USD 9.0 MM Increase due to the higher dividend provision of Salmones Multiexport S.A. (subsidiary) compared to the amount provisioned by the end of 2017 Total Equity: +USD 3.7 MM Net income for the period: +USD 12.6 MM Higher dividend provision: -USD 9.0 MM 8
M USD 1Q18 Consolidated Cash Flow (Th. USD) 120,000 100,000 97,478 +10,559-9,544-7,813 90,679 80,000 60,000 40,000 Positive operating cash flow due to good margins for Atlantic and Coho Salmon Reposition & new investments for the operation in Magallanes Syndicated loan amortization: USD 6.0 MM Total interest: USD 1.8 MM 20,000 0 Initial Cash Operation CAPEX Debt Amortization Ending Cash Dec-2017-2018 Source: Multiexport Foods 9
Agenda I. Highlights II. III. Financial Statements Supply, Demand and Prices IV. Farming Operation V. Prospects 10
USD/LB FOB MIAMI Atlantic Salmon Prices USA ket ATLANTIC SALMON PRICE: UB TRIM D 3-4 LB 6.50 6.00 6.24 6.50 5.89 5.50 5.00 5.18 5.00 4.80 4.50 4.00 3.50 3.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Ene Feb Abr May Jun Jul Ago Sep Oct Nov Dic Spread 10y Avg 10y 2017 2018 1Q18: 5.18 USD/lb (1Q17: 6.24 USD/lb) -17.1% Source: Urner Barry 11
YEN/KG FOB JAPAN Coho Salmon Prices Japanese ket COHO SALMON PRICES: PREMIUM FROZEN HG 4-6 LB 1,000 900 844 865 853 800 800 700 776 775 600 500 400 300 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Ene Feb Abr May Jun Jul Ago Sep Oct Nov Dic Spread 10y Avg 10y 2017 2018 1Q18: 776 JPY/kg (1Q17: 844) -8.0% Source: FIS 12
Agenda I. Highlights II. III. Financial Statements Supply, Demand and Prices IV. Farming Operation V. Prospects 13
Productive performance Atlantic Salmon Ene May Jul Sep Nov Ene May Jul Sep Nov Ene Atlantic Salmon Yield (WFE kg / smolt) Multiexport vs. Chilean industry 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 3.51 4.03 4.23 4.26 4.23 2013 Ind. 2014 Ind. 2015 Ind. 2017 Ind. 2018 YTD Ind. 4.63 4.47 4.48 2016 MEF 2017 MEF 2018 YTD MEF 25% 20% 15% 19% Atlantic Salmon Accum. Mortality (%) Multiexport vs. Chilean industry 17% 14% 13% 13% 6.5 6.0 5.5 Atlantic Salmon Harvest Weight (WFE kg) Multiexport vs. Chilean industry 10% 5% 0% 2013 Ind. 2014 Ind. 2015 Ind. 2017 Ind. 2018 YTD Ind. 7% 7% 9% 2016 MEF 2017 MEF 2018 YTD MEF 5.0 4.5 4.0 3.5 Industria MEF 2016 2017 2018 * Algae Bloom affected sites are not considered Source: Aquabench / Multiexport Foods 14
Chilean Industry Sanitary Condition Sea Lice Adult Sea Lice (avg. #) Source: ABG Sundal Collier 15
Jan Feb Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Jan Feb Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Jan Feb Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Monthly mortality rates by specie 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Atlantic Salmon (%) MEF 0.6% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Trout (%) 2015 2016 2017 2018 2015 2016 2017 2018 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Coho Salmon (%) MEF 0.5% Since June 2015 the company doesn t produce trout 2015 2016 2017 2018 Source: Aquabench / Multiexport Foods 16
USD/WFE kg Multiexport Foods Ex-Farm Costs Atlantic Salmon 2017 Multiexport Foods Ex-Farm Costs (USD/WFE kg) 4.75 4.50 4.25 4.00 3.75 3.50 3.25 3.00 2.75 2.50 2.25 2.00 Source: Multiexport Foods 17
Agenda I. Highlights II. III. Financial Statements Supply, Demand and Prices IV. Farming Operation V. Prospects 18
Biomass - Norway Salmon biomass As of December 2017 biomass growth was +10.1% YoY Decrease is explained by: - Lower temperatures - Higher harvest during 1Q18 vs 1Q17 (+6%) Source: ABG Sundal Collier / Multiexport Foods 19
Stocking - Norway Stocking - Noruega Million smolts Lower live biomass (previous slide), in addition to limited stocking growth, has generated upward corrections in Norway forward prices + 2% last 12 months Source: Carnegie 20
Stocking - Chile Atlantic Salmon Million smolts Million smolts Million smolts 18.0 Atlantic Salmon Stocking Monthly Average Stocking 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0-12.0 avg 2017 Jan Feb Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 14.0 12.0 10.0 8.0 6.0 4.0 2.0-12.0 11.1 11.1 12.0 9.8 2014 2015 2016 2017 2018 YTD 2017 2018 18.0 16.0 14.0 12.0 Last years Atlantic Salmon Stocking 10.0 8.0 6.0 4.0 2.0 - Jan Feb Apr May Jun Jul Aug Sep Oct Nov Dec 2016 2017 2018 Source: Aquabench / Multiexport Foods Normalization of stocking levels during the last months: +3.3% last 12 months +3.0% in live fish number - 18 vs -17 21
Mid-term Outlook Average harvest weights Atlantic Salmon Chile: Harvest weights Norway: Harvest weights Kg WFE 5.6 5.4 5.2 5.0 4.8 4.6 4.4 4.2 4.0 3.8 3.6 Jan Feb Apr May Jun Jul Aug Sep Oct Nov Dec High/Low 10'-YTD16' 2018 2017 Avg. 10'-YTD17' Source: ABG Sundal Collier, Aquabench 22
Harvest Projection Atlantic Salmon Atlantic Salmon Th. WFE Ton 2012 2013 2014 2015 2016 2017 2018E Norway 1,183 1,144 1,194 1,230 1,170 1,211 1,300 Chile 364 473 596 612 521 587 610 Others 447 428 445 490 485 517 520 Total 1,994 2,045 2,235 2,332 2,176 2,315 2,430 Growth 2012 2013 2014 2015 2016 2017 2018E Norway 18% -3% 4% 3% -5% 4% 7% Chile 65% 30% 26% 3% -15% 13% 4% Others 10% -4% 4% 10% -1% 7% 1% Total 22% 3% 9% 4% -7% 6% 5% Source: ABG Sundal Collier / Multiexport Foods / Kontali Analyse 23
Global Atlantic Salmon Production America Th. WFE ton Growth (%) 800 24% 26% 31% 40% 15% 700 8% 0% 4% 20% 600-8% 18% 11% 0% 500 4% 2% -4% -20% 400-12% -19% -14% -40% 300 160 166 184 218 208 180 184 192 200-60% 100-80% 131 132 146 179 172 142 145 152 0-100% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2018E Chile Canada Q-o-Q Growth (%) - Previous Year Q-o-Q Growth (%) - Previous Quarter Th. WFE ton 1,500 1,300 1,100 900 700 500 300 100-100 Europe 3% 1% 5% 9% 0% 6% 6% 7% 362 364 408 454 363 386 433 484 277 261 315 358 279 295 342 384 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Growth (%) 20% 0% -20% -40% -60% -80% -100% Source: ABGSC, MEF 2017 2018E Norway UK Faroes Others Q-o-Q Growth (%) - Previous Year 24
Price outlook Atlantic Salmon Forward Prices (NOK/kg) Source: ABG Sundal Collier, Carnegie 25
Fuente: Multiexport Foods MULTIEXPORT FOODS PROSPECTS
Multiexport Foods stocking and harvest 2016-2020 Smolt stocking Th. Smolts 2016 2017 1Q18 2Q18E 2H18E 2018E 2019E Atlantic Salmon (X+XI) 16,028 16,410 3,458 5,000 7,942 16,400 16,000 Atlantic Salmon (XII) - - - - 1,800 1,800 1,800 Coho Salmon 2,208 3,700 3,147 - - 3,147 3,300 Total 18,235 20,110 6,605 5,000 9,742 21,347 21,100 Harvest WFE ton 2016 2017 1Q18 2Q18E 2H18E 2018E 2019E 2020E Atlantic Salmon (X+XI) 54,284 65,272 18,820 18,000 32,380 69,200 78,000 71,000 Atlantic Salmon (XII) - - - - - - - 17,000 Coho Salmon 6,603 10,385 - - 8,800 8,800 9,000 9,000 Total 60,887 75,657 18,820 18,000 41,180 78,000 87,000 97,000 27
Multiexport Foods XII Region Project Puerto Natales Punta Arenas Multiexport Foods plans to start production in the XII region, which in a gradual period of 4 years would let the harvest increase in 15-20 Th. WFE ton. Stocking is expected to start in 2H18 Puerto Williams 3 sites (3.6 million smolts) in the 4Q18-1Q19 period, with an estimated CAPEX associated to the project of about USD 20 million 28
Ene Feb Abr May Jun Jul Ago Sept Oct Nov Dic Ene Feb Abr May Jun Jul Ago Sept Oct Nov Dic Ene Feb Abr May Jun Jul Ago Sept Oct Nov Dic EBITDA USD mill Earn-Out for the Mitsui capital increase of 2015 Earn-Out Determination (Accumulated EBITDA 2016-2018) 300 275 250 225 200 175 150 125 100 75 50 25 0-25 USD 237 million (2016-2018 YTD) USD 24,4 mill 2016 2017 2018 USD 0 2016 2017 2018 Actual Max Min Additional value for Mitsui's Shares, based on Accumulated EBITDA for the period 2016 to 2018: Linear from 0 to USD 24.4 mill in the EBITDA range between USD 148.2 mill and USD 234.1 mill. To be measured at December 2018 and paid by march 2019. 29