EMPRESAS AQUACHILE S.A. As of March 31st, 2018 June 12, 2018 - - PowerPoint PPT Presentation

RESULTS PRESENTATION EMPRESAS AQUACHILE S.A.

As of March 31st, 2018

June 12, 2018

Highlights

Financial Review Productive Performance Sales Outlook

Pág. Nº3

Highligts of the Period

♦ Prices of Salmon and Trout decreased by 16% compared to the same period of 2017 ♦ Harvest volumes of Salmon and Trout increased by 9,8% in comparison with Q1 2017 ♦ The firm achieved a gross margin of 25% and an EBITDA margin of 21%, regardless the lower prices ♦ Seven quarters in a row with positive EBIT, EBITDA and Net Income ♦ ROE of 17,5% on a LTM basis ♦ Net Financial Debt decreased by US$ 23 million since the Q4 2017, reaching a level of US$155 million ♦ By the end of Q1-2018 the company has 31% more biomass than at the same period of the previous year

Highlights

Financial Review

Productive Performance Sales Outlook

Pág. Nº5

Consolidated P&L Statement

(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”

Figures in ThUS$ Q1-18 Q1-17 ∆QoQ 2017 Sales 183,982 196,776

• 7%

632,738 Operational cost (1)

• 137,653
• 139,791
• 2%
• 462,133

Operational margin 46,328 56,986

• 19%

170,606 Other cost and operating expenses (2)

• 8,088
• 6,759

+20%

• 28,664

EBITDA pre FV adj. 38,240 50,226

• 24%

141,942

% EBITDA / Sales +20.8 +25.5% +22.4%

Depreciation & Amortization

• 7,349
• 8,662
• 15%
• 34,273

EBIT pre FV adj. 30,892 41,564

• 26%

107,669 Net Revenues from biological assets (3) 6.195

• 10,222
• 3,610

EBIT post FV adj. 37,086 31,342 +18% 104,059 Financial expenses

• 3,552
• 4,696
• 24%
• 18,215

Financial income 362 196 +84% 664 Other non operating items (4)

• 53
• 1,073

+95%

• 1,678

Income taxes

• 8,897
• 7,578

+17%

• 26,278

Net income 24,946 18,191 +37% 58,912

% Net Income / Sales +13.6% +9.2% +9.3%

Pág. Nº6

25

• 12
• 18 -21
• 12
• 2

19 39 15 2 22 5

• 19 -26
• 17
• 10
• 1

5 63 50 26 15 50

38

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 Q4-17 Q1-18

EBITDA* (US$ million)

2

• 17
• 10
• 17
• 5
• 28
• 2

26 11

• 5
• 2
• 3
• 12
• 36
• 21
• 30 -30
• 8

9 36 18 5 10 25 25

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 Q4-17 Q1-18

Net Income (US$ million)

158 100 96 56 152 193 191 202 226 172158 224 192 146 135 151 159 124 121 215 197 121 106 209

184

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 Q4-17 Q1-18

Sales (US$ million)

0.82

• 0.28
• 1.13
• 1.25
• 0.92
• 0.63
• 0.24

0.52 1.03 0.40

• 0.22

0.34

• 0.08
• 1.23
• 1.48
• 0.89
• 0.69
• 0.35

0.01 1.75 1.73 1.56 0.74 1.22

1.16

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 Q4-17 Q1-18

EBIT** (US$ / Kg WFE)

* EBITDA and EBIT Pre Fair Value ** EBIT Salmon and Trout

Financial Ratios Evolution

Pág. Nº7

60% 9% 23% 7%

Atlantic Salmon

Sales Q1 2018 (US$)

Trout Pacific Salmon Tilapia Q1 2017 Q1 2018 Volume (Ton WFE): 15,331 12,037 Sales (Th.US$): 94,680 86,076 EBIT (Th.US$): 18,453 20,434 EBIT / Kg (US$/Kg WFE): 1.20 1.70 Volume (Ton WFE): 2,590 2,857 Sales (Th.US$): 14,860 19,705 EBIT (Th.US$): 3,095 7,066 EBIT / Kg (US$/Kg WFE): 1.20 2.47 Volume (Ton WFE): 7,811 9,247 Sales (Th.US$): 36,327 45,719 EBIT (Th.US$): 8,262 14,343 EBIT / Kg WFE (US$/Kg WFE): 1.06 1.55 Volume (Ton WFE): 4,309 5,734 Sales (Th.US$): 11,675 13,683 EBIT (Th.US$): 1,081

• 280

EBIT / Kg WFE (US$/Kg WFE): 0.25

• 0.05

Financial summary by species

Pág. Nº8

Balance Sheet Statement

♦ Total Assets grew by 3.7% in comparison with the close of the 2017 exercise. This variation is mainly explained by the increase in the Cash and Cash Equivalents due to the returns from the Pacific Salmon season, but also because of a bigger on-growing biomass in the sea (∆+10,000 tons WFE QoQ). ♦ Total Liabilities grew by 2.7%, due to an increase in the Accounts Payables, which in turn is explained by the bigger on-growing biomass. Figures in ThUS$ Q1-18 2017 ∆ YoY Total Assets 824,546 794,890 +3,7% Cash and cash equivalents 65,888 40,772 +61,6% Accounts receivables 68,952 76,125

• 9,4%

Biological assets - Inventory 304,988 288,256 +5,8% Properties, plants & equipments 195,382 191,448 +2,1% Others Assets 189,336 198,290

• 4,5%

Total Liabilities 414,212 403,365 +2,7% Financial Debt 220,929 218,731 +1,0% Accounts payable 138,928 132,004 +5,2% Others Liabilities 54,355 52,630 +3,3% Equity 410,334 391,525 +4,8% Total Equity and Liabilities 824,546 794,890 +3,7%

Pág. Nº9

Cash Flow Statemet

Summary (Th. US$)

♦ Operating Activities generated US$35.9 million in cash during Q1-

• 2018. The

lower level of cash generation is explained in part due to the higher requirements

• f

working capital due to a bigger biomass in the sea (extra 30% on a QoQ basis) ♦ The disbursement of US$9.1 million in Investment Activities is related to CAPEX investments

• riented

to support the organic growth plan of the company. These investments were mainly concentrated on the grow-out stage (sea operations) ♦ During Q1-2018 no capital re- payments were recorded

40,772 +35,882

• 9,106
• 1,853

65,888 31 Dec 2017 Operating Investment Financing 31 Mar 2018

Cash variation (Figures in ThUS$)

Q1-18 Q1-17 ∆ QoQ Operating activities 35,882 77,745

• 54%

Investment activities

• 9,106
• 4,764

+91% Financing activities

• 1,853
• 20,419
• 91%

Net change in cash 25,116 52,960

• 53%

Cash at the end of the period 65,888 89,953

• 27%

Highlights Financial Review

Productive Performance

Sales Outlook

Pág. Nº11

Harvests (Th. ton WFE)

15.2 13.8 14.7 10.1 17.6 16.4 20.1 13.6 15.9 18.1 21.4 5.9 5.4 16.1 11.8 10.0 7.6 18.7

15.3 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 Q4-17 Q1-18

Harvest weight evolution (Kg WFE)

4.27

0,0 1,5 3,0 4,5 6,0

jul-13 nov-13 mar-14 jul-14 nov-14 mar-15 jul-15 nov-15 mar-16 jul-16 nov-16 mar-17 jul-17 nov-17 mar-18

1.46 1.53 1.49 2.27 1.73 1.43 1.51 1.73 1.59 1.57 1.56 1.46

1.50 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1-18

FCRe* Monthly mortality(%)

0.69%

0% 1% 2% 3% 4% 5% 6% 7% 8% jul-12 nov-12 mar-13 jul-13 nov-13 mar-14 jul-14 nov-14 mar-15 jul-15 nov-15 mar-16 jul-16 nov-16 mar-17 jul-17 nov-17 mar-18 * Economic Conversion Rate

Summary by Species: Atlantic Salmon

Quarterly

Algae Bloom

Pág. Nº12

Harvests (Th. ton WFE)

5.8 5.1 11.1 5.8 4.7 4.2 4.6 5.1 5.7 4.0 4.5 0.3 1.9 3.4 3.6 1.9 3.3 1.3

3.7 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 Q4-17 Q1-18 2.93

0,0 1,5 3,0 4,5

jul-13 nov-13 mar-14 jul-14 nov-14 mar-15 jul-15 nov-15 mar-16 jul-16 nov-16 mar-17 jul-17 nov-17 mar-18

Harvest weight evolution (Kg WFE) FCRe*

1.35 1.48 1.88 1.53 1.53 1.53 1.75 1.50 1.53 1.32 1.35

1.56 2006 2007 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1-18 2.49% 0% 2% 4% 6% 8% jul-12 nov-12 mar-13 jul-13 nov-13 mar-14 jul-14 nov-14 mar-15 jul-15 nov-15 mar-16 jul-16 nov-16 mar-17 jul-17 nov-17 mar-18

Monthly mortality(%)

Summary by Species: Trout

Quarterly * Economic Conversion Rate

Pág. Nº13

11.6 11.1 12.2 6.6 0.6 14.5 4.7 0.2 17.9 6.4 17.8

4.9

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 Q4-17 Q1-18

Season 17-18

Harvests (Th. ton WFE)

Season 13-14 Season 14-15 Season 15-16 Season 16-17

Harvest weight evolution (Kg WFE)

3.91

0,0 1,5 3,0 4,5

jul-13 nov-13 mar-14 jul-14 nov-14 mar-15 jul-15 nov-15 mar-16 jul-16 nov-16 mar-17 jul-17 nov-17 mar-18

FCRe*

1.30 1.32 1.23 1.42 1.32 1,28 1.23 1.31 1.32 1.25 1.20 1.28

1.22 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1-18 Quarterly 1.13% 0% 2% 4% 6% jul-12 nov-12 mar-13 jul-13 nov-13 mar-14 jul-14 nov-14 mar-15 jul-15 nov-15 mar-16 jul-16 nov-16 mar-17 jul-17 nov-17 mar-18

Monthly mortality(%)

Summary by Species: Pacific Salmon

* Economic Conversion Rate

Highlights Financial Review Productive Performance

Sales

Outlook

Pág. Nº15

23 13 13 16 29 32 27 28 31 19 18 34 28 20 22 27 30 18 13 32 24 12 10 33 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 Q4-17 Q1-18

Atlantic Salmon Trout Pacific Salmon

2,0 3,0 4,0 5,0 6,0 7,0 mar-11 jul-11 nov-11 mar-12 jul-12 nov-12 mar-13 jul-13 nov-13 mar-14 jul-14 nov-14 mar-15 jul-15 nov-15 mar-16 jul-16 nov-16 mar-17 jul-17 nov-17 mar-18

Chilean Atlantic Salmon Price – FOB Miami

(US$ / Trim D 2-3 Lb)

Sales (Th. Tons WFE)

Source: Urner Barry

Sales

♦ Sales of 26,000 tons WFE of salmon and trout during Q1-2018 (∆+8,3% QoQ) ♦ Lower sales volumes for Pacific Salmon (∆-16%) and Trout (∆-9%) ♦ Higher sales volumes for Atlantic Salmon (∆+27% QoQ) ♦ Lower market Price (∆ -16% QoQ) ♦ The achieved sales prices of AquaChile were 11.9% lower than in Q1-2017

Pág. Nº16

♦ The lower level of revenues for Q1-2018 is explained by the effect of the lower sales prices for the three species added to the lower sales volumes of Pacific Salmon and Trout. These effects got partially compensated by the higher sales volume of Atlantic Salmon (∆ +3,294 tons WFE).

Cifras en millones de US$

Comparative Revenues: Q1 2018 vs. Q1 2017

197

• 12

+20

• 3
• 2
• 3
• 7

+2

• 4
• 1
• 4

184 ∆ Volume Sales Q1-17 Sales Q1-18 Atlantic Salmon Trout Pacific Salmon Tilapia Feed Other Income ∆ Price

Pág. Nº17

4

2 7

Europe (2%)

Atlantic Salmon

20 1 0 2

56 10 North America (42%) Latin America (15%) Asia ex–Japan (6%) Russia (11%) 1 11 25

Trout Pacific Salmon

Sales by Market

Figures in US$ million

Japan (24%)

Tilapia

11 2 4 1

Middle East (1%)

Highlights Financial Review Productive Performance Sales

Outlook

Pág. Nº19

Atlantic Salmon (Th. Tons)

Source: ABG Sundal Collier

945 1,006 1,183 1,144 1,199 1,234 1,171 1,208 1,298 1,370 130 221 364 468 583 598 504 579 596 623 381 407 453 430 446 485 491 518 509 565 1,456 1,634 2,000 2,042 2,228 2,317 2,166 2,305 2,403 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2019E Noruega Chile Other

World harvest perspectives

2,558

Pág. Nº20 Source: ABG Sundal Collier

Norway Chile ♦ During the first four months of 2018 the Miami FOB prices for the Trim-D (3-4 lbs) Chilean salmon showed an uprising trend that reached a peak of approximately 6.5 US$/lb during the 21st week of the year ♦ Between weeks 17 and 22 (Apr.-May) the reference prices for the Chilean salmon reached 10-year maximum levels for those weeks of the year

Atlantic Salmon Prices

Pág. Nº21

AquaChile’s Production Perspectives

Tons WFE Q1-17 Q2- 17 Q3-17 Q4-17 2017 Q1-18 Q2-18 2H-18E 2018E Atlantic Salmon 11.755 10.038 7.586 18.685 48.065 15.296 8.000 25.000 48.000 - 49.000 Trout 3.554 1.908 3.332 1.326 10.121 3.680 10.500 5.500 19.500 - 20.500 Pacific Salmon 6.400 32 17.753 24.186 4.858 18.000 22.500 - 23.500 Total Salmonids 21.709 11.947 10.950 37.765 82.371 23.834 18.500 48.500 90.000 - 93.000 Tilapia Costa Rica 5.068 4.342 4.091 3.849 17.351 4.601 4.300 7.900 16.000 - 17.000 Total Salmónids and Tilapia 26.778 16.289 15.041 41.614 99.722 28.434 22.800 56.400 106.000 - 110.000

Investor.relations@aquachile.com

Thank you