AquaChile Corporate Presentation Intrafish Seafood Investor Forum. Francisco Lepeley, CFO

Transcription

1 AquaChile Corporate Presentation Intrafish Seafood Investor Forum Francisco Lepeley, CFO New York, May 23rd, 217

2 Our history AquaChile started in the South of Chile over 25 years ago as a result of the combination of the Salmon companies founded by the Puchi and Fischer families. Over time, the Company has grown, both organically and through the acquisition of strategic targets, to become the largest Salmon and Trout producer in Chile Salmones Pacífico Sur and AquaChile are established Merger of Pacífico Sur and AquaChile AquaChile Inc. (US branch) opens in Miami Acquisition of several Salmon producing companies Acquisition of Rain Forest Aquaculture (tilapia in Costa Rica) JV with Biomar into fish feed companies ISAv crisis IPO at Santiago Stock Exchange Financial restructuring Opening of first Salmon retail store Aquainnovo is founded to manage and improve AquaChile s genetics Salmones Chaicas starts operations Lenca trial center opens in 212. Biomar joins ownership in 217 Acquisition of Aquasan New sets of regulation for the industry Algae bloom Page. Nº2

3 Salmon and trout production (tons WFE) Page. Nº3

4 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Financial highlights Revenue (US$ million) AquaChile Stock (CLP) AquaChile Santiago Select (IPSA) 1 5 may-16 ago-16 nov-16 feb-17 may EBITDA* (US$ million) Ownership Structure Other 34% Puchi family 33% Fischer family 33% * Pre Fair Value Page. Nº4

5 AquaChile has a fully integrated value chain Genetics Fresh Water Sea Water Processing Sales Continuous genetic improvements Full traceability and better sanitary control Improved logistics and less dependence on external suppliers Product consistency Proximity to consumers Pág. Nº5

6 Aquainnovo and Chaicas are key players in the genetics and breeding stages Genetics Fresh Water Sea Water Processing Sales Aquainnovo manages AquaChile s genetics programs, incorporating R&D aimed at genetic improvements Through ATC Patagonia, Aquainnovo provides technical support to the industry in trials for the development, validation and registry of novel technologies Salmones Chaicas, a closed, biosecure, state-of-the-art inland hatchery can produce 8 million Salar eggs and 3.5 million smolts per year Page. Nº6

7 We grow our own smolts Genetics Fresh Water Sea Water Processing Sales 2+ hatcheries across several regions in Chile 14 lake farming licenses for smoltification of Trout and Coho 1 river license for smoltification of Salar 7 brackish water licenses in Aysén for smoltification of Coho Page. Nº7

8 A geographically diversified production base Genetics Fresh Water Sea Water Processing Sales 151 licenses in 28 sanitary areas (presence in 48% of sanitary areas of Los Lagos and Aysén regions) The areas where we operate have unique water conditions and a very favorable water temperature range In recent years, technological advances have been incorporated into our production practices Page. Nº8

9 Our processing plants are capable of meeting the highest standards, while optimizing the product mix Genetics Fresh Water Sea Water Processing Sales AquaChile owns 4 salmon processing facilities and 1 tilapia processing plant with a total capacity of 166, tonnes per year and a wide range of valueadded products All plants count with PAC- HACCP certification Since 215, an additional plant has been added under a long term lease in order to increase processing capacity during the Coho seasons Portions Whole fish - Head-On (HO) Whole fish - Headed and Gutted (HG) Bites & Pieces Scrap meat Whole fish - Head-On (HO) Fillets Fillet Trim C Fillet Trim D Fillet Trim E Belly / Harasu Skin patch on fillets Breaded fillets Page. Nº9

10 Our proximity to the final clients is key Genetics Fresh Water Sea Water Processing Sales Through our 3+ direct clients, more than 2 million people around the World consume our products every day Since 22, AquaChile has maintained a direct and active presence in the US market through its subsidiary AquaChile Inc. To date, AquaChile has opened 5 stores across Chile in an effort to make our high-quality products available to domestic consumers Page. Nº1

11 Global distribution of sales in 216 (US$ million) Russia (9%) 19 USA (3%) Europe (5%) Asia ex Japan (5%) Japan (34%) 75 Latin America (17%) 2 3 Salar Trout Coho Pág. Nº11

12 Recent developments Local stores As part of our plan to make top-quality salmon available to Chilean consumers, in 216 we opened our fifth store, located in the city of Puerto Varas Salmones Chaicas In February 217, AquaChile reached 1% ownership over Salmones Chaicas S.A. Verlasso In 216, Verlasso revalidated its Good Alternative certificate by Monterey Bay Aquarium s Seafood Watch program Efficiency and Competitiveness Plan ( PEC ) During 216, AquaChile launched the Efficiency and Competitiveness Plan ( PEC in Spanish) aimed at developing and executing several cost-cutting and efficiency oriented initiatives in several áreas across the whole organization Page. Nº12

13 What s next for the Chilean salmon industry? Improvements in regulation Industry consolidation Growing demand Technology upgrade Efficiency Focus on sustainability Page. Nº13

14 Regulatory framework in Chile Two main regulators: Undersecretariat of Fisheries (Subpesca) and the National Fisheries Service (Sernapesca). In addition, the Environmental Superintendency (SMA) also enforces compliance with Environmental rules General Law on Fisheries and Aquaculture since : ISAv crisis New sanitary rules (RESA) 216: Amendments to Density and Smolt Release Reduction Percentage rules 217: Temporary macrozones Page. Nº14

15 How the new amendments to regulation work For each new cycle, producers may select for all their licenses in a barrio (sanitary area) one of two alternatives: Density Rule or Smolt Release Reduction Percentage The Density Rule determines for all producers in any given sanitary area ( barrio ) a maximum fish density for the following cycle based on: mortality in previous cycle, number of smolts to be released by all producers in relation to previous cycle (formal declaration), and environmental status of the area. Once maximum density has been determined, a maximum number of smolts is determined for each license based on the mortality in the previous cycle for such specific license The Smolt Release Reduction Percentage mechanism determines a maximum number of smolts to be released in a license assuming a reduction from previous cycle based on its sanitary performance. A 3% increase may apply only in case of an extraordinarily good performance The selection of each alternative is made on a case by case basis As a result of the new regulation, several sea water sites are being utilized with a projected density of 8 kg/m3 Page. Nº15

16 A more sustainable business Use of antibiotics Better sanitary controls and use of vaccines allowed for a 32% reduction in the use of antibiotics during 216 More feed efficiency Verlasso demands less pelagic fish feed per weight unit of salmon Gender Women comprise 37% of our workforce Local labor and contractors 91% of workers from local communities Los Lagos region has lowest unemployment rate in the country (2.4% vs. 6.6% national average) 77% of suppliers are local (Los Lagos region) Page. Nº16

17 Thanks! Please send further questions to