May 24, 2017 Northern Pelagic Fishing: Good Catches North: - - PowerPoint PPT Presentation

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May 24, 2017 Northern Pelagic Fishing: Good Catches North: - - PowerPoint PPT Presentation

Jun 30, 2023 114 likes •338 views

May 24, 2017 Northern Pelagic Fishing: Good Catches North: Normalization of temperatures at sea; Abundant biomass near Iquique; Low costs Thousands of tons 140- 150 49 40-45 18 34 11 5 1 2016 2017 2016 2017 E 2016 2017 2016 2017

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May 24, 2017

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1 49 18 40-45 11 5 2016 2017 2016 2017 E 2016 2017 2016 2017 Q1 Q2 Q3 Q4

Northern Pelagic Fishing: Good Catches

Northern catches include own and third parties

34 140- 150 2016 2017 E Year

Company’s estimations are based on current information, which could change due to deviations

North: Normalization of temperatures at sea; Abundant biomass near Iquique; Low costs Thousands of tons

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35 37- 42 21 10- 14 50 45- 50 2016 2017 E Year 14 31 7 7-9 2 11 8 2 8 1-2 1 4 23 12 22 25-30 3 2 2016 2017 2016 2017 E 2016 2017 2016 2017 Q1 Q2 Q3 Q4

South-Central Pelagic Fishing

106 92-106

  • J. Macke.:

Normal fishing conditions vs very favorable conditions in Q1 2016-2015. Sardine: Normalization in 8th region. Higher third parties catches (+50%). Jack Mackerel Sardine (own) Sardine (third parties) Thousands of tons

Company’s estimations are based on current information, which could change due to deviations

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Fishmeal Price

1,763 1,780

Prices down due to higher quotas and catches in Peru. US$ / ton (Camanchaca)

1,350

Precio Harina Prime (Chile) IFFO Sem 18 2017

1,600

1,492 1,567 1,850 2,013 2,247 1,844 1,613 1,760 1,570 1,592 1,676 1,551 1,471 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017

May to Jul: 2.8 M Ton May to Jul: 2.5 M Ton (68% catched)

Peru’s Fishing Quota (North-Centre Region):

Nov to Jan: No quota May to Jul: 2.6 M Ton (98% catched) Nov to Jan: 1.1 M Ton (99% catched) May to Jul: 1.8 M Ton (51% catched) Nov to Jan: 2.0 M Ton (98% catched)

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Q1 2017:

  • With constant volume, increased fuel costs of US $ 0.8 million.
  • Fuel cost is approx. 15% of the total cost of fishmeal production (anchovy and industrial sardine).

Camanchaca Diesel Price (US$/lt)

0.84 0.84 0.82 0.70 0.54 0.54 0.49 0.43 0.30 0.37 0.39 0.41 0.44 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017

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6 March 31, 2017 December 31, 2016 March 31, 2016 December 31, 2015 VOLUM E Months of Production ThUS$ VOLUME ThUS$ VOLUME ThUS$ VOLUME ThUS$ SALMON Atlantic Salmon (Tons) 1,467 0.9 16,131 2,595 23,763 4,864 34,089 7,458 42,198 Salmon Total 16,131 23,763 34,089 42,198 FISHING Fishmeal (Tons) 14,708 3.5 12,980 1,235 2,098 7,873 8,136 5,793 6,937 Fish oil (Tons) 3,497 2.8 2,429 38 353 1,987 2,314 846 1,896 Frozen Jack Mackerel (Tons) 1,007 1.2 374 31 16 378 222 1,185 694 Canned Fish (thousands of boxes) 290 3.5 3,597 449 5,719 632 6,373 43 664 Langostino Lobster (Tons) 111 2.2 1,275 92 1,180 85 1,308 225 2,824 Fishing Total 20,655 9,366 18,353 13,015 OTHER SEAFOOD Mussels (Tons) 4,300 5.2 6,840 3,094 5,275 2,521 5,337 2,280 5,304 Abalone (Tons) 65 3.9 1,435 79 1,788 82 1,855 86 1,969 Scallops (Tons) 1 11 5 51 19 147 19 157 Other Seaafood Total (Tons) 8,286 7,114 7,339 7,430 COMPANY TOTAL 45,072 40,243 59,781 62,643 Recovery of inventories of Fishmeal (US$ 883/ton), Fish Oil (US$ 695/ton) and Mussels (US$ 1.6/kg)

Stocks

(valued at cost)

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7 11 12 9 5 29 32 24 27 12

39 43 45 32

2014 2015 2016 2017 E

HAB Q1

Salar: 2015 Stocking Reduction Decision

2015 Prices at their historical lows impacted by currency devaluations against the US dollar led to the decision of not stocking 2 sites in favor of a solid financial position. 2016 Biomass was replaced by capital for approximately US$ 25 million that allowed to meet the financial obligations in a period with a severe El Niño phenomenon and low prices of salmon. It allowed a better payment negotiation of the insurance associated with the HAB event. 2017 Harvest reduction of 7,400 tons with a high impact in H1 2017 Harvest (thousands of tons WFE)

Company’s estimations are based on current information, which could change due to deviations

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9.1 4.8 6.7 5-6 9.0 7.9 4.2 7.1 5.8 6.7 6.2 6.8 3.00 E Q1 Q2 Q3 Q4

Atlantic Salmon Price

Stable prices for an estimated increase ~ 3% of world supply in 2017 but with differences in semesters. Lower harvests in Q1-17 due to HAB 2016 and lower stocking 2015.

Δ+69% Δ+16%

2016 2017

33 30- 33 5.6 6.5 E Year

Δ+16%

Company’s estimations are based on current information, which could change due to deviations

Harvest (Thousands of Tons) Price (US$ / Kg WFE)

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9 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 ene-04 jul-04 ene-05 jul-05 ene-06 jul-06 ene-07 jul-07 ene-08 jul-08 ene-09 jul-09 ene-10 jul-10 ene-11 jul-11 ene-12 jul-12 ene-13 jul-13 ene-14 jul-14 ene-15 jul-15 ene-16 jul-16 ene-17

Atlantic Salmon Price: Long-term trend

Urner Barry Equivalent Trim C 2-3 (US$/Lb)

may-17

Δ supply: 5% 4% 2% 10% 7% -2% -1% 12% 22% 2% 9% 4% -7% 2% E

Source: ABG Sundal Collier

ISA Virus Overshooting recovery post ISA Algae bloom Large devaluation in major markets and non-tariff restrictions

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Camanchaca vs Market (Salmonex, January 2015 = Base 100)

Lag in months with strong spot price increases (Mar - Jun 2016 and Jan - Feb 2017) Q1-17: Camanchaca’s return ties with comparable indexes

Atlantic Salmon: Return of the raw material (relative performance)

20 40 60 80 100 120 140 160 180 200 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Urner Barry Salmonex Camanchaca

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Salar Stocking: Chilean Industry

Salar Stocking January to April (million fish)

Source: Information and self-estimation

40 35 30 42 2014 2015 2016 2017

+20% +40%

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Salar Stocking Plans 10th and 11th regions

Salar Stocking in previous cycle vs post new regulation cycle (million fish): 50% of the neighborhoods

6.8 6.8

Previous cycle Post new regulation cycle

79.5 75.2 Total 10th - 11th Region

  • 5,4%

Source: Subsecretaría de Pesca y Acuicultura

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Chilean Salmon Price Expectation for 2017

Urner Barry Trim C 2-3, spot market

3.00 3.50 4.00 4.50 5.00 5.50 6.00 6.50 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 USD/Lb

Fishpool Index Forwards Based Model Adjusted By:

  • Seasonal Historical Demand in the USA
  • US vs European salmon offer growth differences

Source: Kontali, Fishpool, own analysis

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Mortality

2016 2017

Q1-16 affected by harmful algae bloom (HAB) event. Favorable sanitary conditions starting in Q2-16

8.7% 64.3% 5.5% 19.2% 3.8% 9.0% 5.5% 36.8% 7.3% E E Q1 Q2 Q3 Q4 Year

2015

1.35 2.87 1.25 1.58 1.21 1.33 1.20 1.66 1.27 E E Q1 Q2 Q3 Q4 Year

Atlantic Salmon Sanitary Conditions in Camanchaca

(closed cycle)

Economic Feed Conversion Ratio

Company’s estimations are based on current information, which could change due to deviations

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15

3.07

2.95

2.92 3.02 3.08

3.66

3.75 3.09 2.79

2.79

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Others Medicine Labor Smolt OPEX Feed

Atlantic Salmon Costs

Atlantic Salmon - Liveweight ex-cage cost (US$ / kg)

3.01

Q4-15 and H1-16 affected by SRS and low oxygen conditions in the 10th region. Better Q1-17 vs Q1-15 and Q1-16.

3.31

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16 50 60 70 80 90 100 110 120 130 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17

Raw Material Cost and RMP (Raw Material Return) Base 100 = RMP January 2014

RM cost before processing RMP

Back to positive margins in Q2-16 increased in H2-16 Lower harvests in Q1-17 (-47%) with increase in unit cost.

Development of Atlantic Salmon Margins

Leptepu Cahuelmó Lamalec Licha Puelche Contao

Mañihueico

Islotes Edwards Izaza F.Largo Puerto Arg. Cabudahue Pilpilehue Ahoní Leptepu Cahuelmó Porc. Loncoch. Marilmó Forsyth Johnson 2 Licha Islotes |--Edwards--| Puelche |--Izaza--| Dec-17 |P. Arg.| |F.Larg.| |Porc.| |Ahoní| |Pilp.- |Lep.| |Mar.|

10th region sites 11th region sites

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Development of Atlantic Salmon Margins

(0.10)

EBIT (US$/Kg WFE) before Fair Value in the Salmon business

Atlantic Salmon Business includes other Revenues and Costs due to services and sales to third parties, and intercompany salmon sales to our offices abroad. 0.72

0.87 0.46

  • 0.72

2.78 1.93

  • 1.0
  • 0.5

0.0 0.5 1.0 1.5 2.0 2.5 3.0

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017

Atlantic Salmon Business EBIT without trout joint account 0.64

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2016 2017

Results January – March

(US$ million) EBITDA (before Fair Value) Profit/Loss

  • 3.6

1.4

  • 0.5
  • 2.7
  • 4.6

6.7 0.3 2.4 Fishing Salmon Other Seafood TOTAL

  • 1.2
  • 6.0
  • 0.2
  • 7.3
  • 3.9

18.8 0.4 15.3 Fishing Salmon Other Seafood TOTAL

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25.5 53.0 60.0 66.1 58.7 45.1 47.1 21.6 10.1 8.7 14.5 32.8 55.4 459 483 485 496 489 453 462 439 446 470 483 488 487 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 EBITDA Revenues

Last 4 mobile quarters development

10.0% 3.0% 12.4% 13.3% 12.0% 10.2% 4.9% 2.3% 1.8% 11.0% 5.6% 6.7% 11.4%

X% EBITDA/Revenues

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6.1 21.4 36.1 38.2 31.5 27.5 25.6 20.1 6.7

  • 7.5
  • 5.8

8.2 38.8 63.6 227 215 222 233 247 242 252 278 295 288 279 275 260 263 263 269 299 328 353 352 11.2 10.3 20.4 22.6 33.1 29.0 18.8 27.3 15.7 18.9 15.6 6.7

  • 6.9
  • 9.7

157 151 157 163 184 179 161 169 146 147 141 126 107 105

Q1 2014 – Q1 2017: Last 4 mobile quarters development

EBITDA Total Revenues Own Revenues

  • 5.3
  • 6.2
  • 3.6
  • 0.8

1.6 2.2 0.8

  • 0.3
  • 0.8
  • 1.3
  • 1.0
  • 0.5

0.9 1.5 30 30 32 33 33 35 32 30 31 31 30 29 28 29 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 FISHING SALMON OTHER SEAFOOD

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