Pág. Nº1 AQUACHILE Corporate Presentation 2013 EMPRESAS AQUACHILE S.A.
Pág. Nº2AQUACHILE
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INDEX
01 Overview
02 About AquaChile
03 Industry Performance & New Regulation
04 Sustainability and Stakeholders
05 New Developments
Pág. Nº4AQUACHILE
AquaChile is a Chilean company that
produces and commercializes Atlantic
Salmon, Pacific Salmon, Sea Trout and Tilapia.
Empresas AquaChile at a glance.
Source: Infotrade
It owns inland farms in Costa Rica and
the only three farming licenses granted
in the Bayano Lake in Panama to
produce Tilapia.
It has operations in Chile, Costa Rica, Panama
and a commercial office in the United States.
It is the largest producer in Chile of Salmon
and Sea Trout. It owns 150 sea licenses which
provide a solid basis for its growth.
It has more than
230customers in
30countries.
Pág. Nº5AQUACHILE
Main Shareholders:
Puchi and Fischer Families
Public since
May 19th, 2011
Market capitalization of
USD 578 millionsas of October 30, 2013
Empresas AquaChileat a glance.
Shareholder’s Structure**
Fischer Family
33,03%
Puchi Family
33,03%Pension Funds
4,53%
Others
29,41%
Others
33,95%
Source: The Company
*As of October 30, 2013 ** As of September 30, 2013
578
283 281163 143
34
Chilean Salmon Companies by
Market Cap (MUSD)*
Source: Bloomberg
Pág. Nº6AQUACHILE
2012 Main Chilean Salmon and Sea Trout Exporters
(Th. Net Tons)
51.027
46.604
32.101 31.200 30.448
26.99324.190
20.335 19.122
10,4%9,5%
6,6% 6,4% 6,2%5,5%
5,0%4,2% 3,9%
Volume Market Share
Source: Infotrade Dic-12
Pág. Nº7AQUACHILE
Annual SalesIn MUSD
Source: The Company
25 years of succesful track record.
Crisis
• ISA virus effects• Financial restructuring• New legal framework focused
in long term sustainability• Advantages of diversification
2006 – 2007 Period
• 3rd largest world producer• Global presence and
reputation• IPO and acquisition plans
Beginnings
• 25 years of history• Merger with Salmones Pacífico
Sur • Track record forming strategic
alliances• Sustained growth
Today
• Diversified business model• Vertical integration• High growth potential• Industry consolidation capacity
RevenuesIn MUSD
2012
410
Pág. Nº8AQUACHILE
19%
36%
20%
25%
17%
31%
16%
15%
Atla
ntic
Sal
mon
Sea
Tro
utP
acifi
c S
alm
onT
ilapi
a
Bayano Lake Guanacaste
X and XI Region
Source: The Company as of December 31, 2012
X and XI Region
X and XI Region
Focus indiversification for success.
% of Consolidated Sales (US$ )
% of Consolidated Sales (tons)
Geographic Diversification
Pág. Nº10AQUACHILE
AquaChile:Strong organic growth plan based on unique assets
Fresh Water: Flexibility and excess installed capacity
Processing: Installed capacity to absorb growth
Vertical integration throughout the value chain
Sea Water: High quality and diversified license portfolio
Global presence and reputation
Pág. Nº11AQUACHILE
Sea water:Unique, diversified and large license portfolio.
One of the largest sea licenses base and the largest presence within sanitary areas in the Chilean industry.
150*Sea licenses distributed in
29 Sanitary Areas
-Geographic distribution
-Organic growth capacity
-Operational and productive continuity
-Continuous supply to clients
-Species diversification
-Natural, climate and sanitary risk diversification
* Include 7 brackish water licenses
Pág. Nº12AQUACHILE
Sea water:Unique, diversified and large license portfolio.
INDUSTRY
Total of 34 sanitary areas
AQUACHILE
95 sea licenses and 17 sanitary areas
50% of sanitary areas of the Aysen Region
Sea licenses Sanitary areas
INDUSTRY
Total of 24 sanitary areas
AQUACHILE
55 sea licenses in 12 sanitary areas
50% of sanitary areas of the Los Lagos Region
Aysen Region
Los Lagos Region
Geographical
diversification in sea
licenses for Salmon
and Sea Trout
production.
Pág. Nº13AQUACHILE
Tilapia Costa Rica & Panama:Large water volume and favorable climate.
Costa Rica
-Strategic access to large volumes of high-quality water
-Optimal location for logistics
-21,000 tons WFE capacity
Panama
-The Company has the only three tilapia farming licenses granted in the Bayano Lake
-Potential to produce over 20,000 ton WFE
Geographical diversification in Tilapia production
Guanacaste
Bayano Lake
Costa Rica
Panama
Pág. Nº14AQUACHILE
AquaChile:Strong organic growth plan based on unique assets
Fresh Water: Flexibility and excess installed capacity
Processing: Installed capacity to absorb growth
Vertical integration throughout the value chain
Sea Water: High quality and diversified license portfolio
Global presence and reputation
Pág. Nº15AQUACHILE
Fresh water:Flexibility and excess installed capacity.
24*hatcheries from the IXth Region to
the XIth Region, including 1 hatchery
near Santiago.
14**fresh water farming licenses in the
Xth and XIth Regions for Sea Trout and
Coho smoltification.
7brackish water licenses in the XIth
Region for Coho smoltification.
* Seven of them are rented under long term contract
** Two of them are rented under long term contract
Geographical
diversification in fresh
water.
1River licenses in the XVth Regions for
Atlantic Salmon smoltification.
Pág. Nº16AQUACHILE
AquaChile:Strong organic growth plan based on unique assets
Fresh Water: Flexibility and excess installed capacity
Processing: Installed capacity to absorb growth
Vertical integration throughout the value chain
Sea Water: High quality and diversified license portfolio
Global presence and reputation
16
Pág. Nº17AQUACHILE
50,0
26,021,6
34,436,7
21,0
Cardonal Cailín Hueñocoihue Antarfood Calbuco Costa Rica
Current production capacity of AquaChile’s processing plantsIn thousands of WFE tons
7 plants with a total capacity of 190,000 WFE tons, including one of the largest plant in the World
Processing:Installed capacity to absorb growth.
Location Puerto Montt
CalbucoQuellón Dalcahue Chonchi
Plant TypeValue Added
Value Added
Whole Salmon
Whole Salmon
Value Added
PAC-HACCP Certification
Yes YesYes Yes Yes
Value Added
Yes
Guanacaste
Source: The Company
Pág. Nº18AQUACHILE
Diversity of Salmon Products
Whole HG Trim C
PortionsTrim ETrim D
Whole
Breaded Fillets
Fillets
Diversity of Tilapia Products
Processing:Installed capacity to absorb growth.
Chile Costa Rica
Pág. Nº19AQUACHILE
AquaChile:Strong organic growth plan based on unique assets
Fresh Water: Flexibility and excess installed capacity
Processing: Installed capacity to absorb growth
Vertical integration throughout the value chain
Sea Water: High quality and diversified license portfolio
Global presence and reputation
Pág. Nº20AQUACHILE
GENETICS
FRESH WATEREggs & Smolts
SEA WATERFarming
PROCESSING COMMERCIALIZATION
FEED
SALMON AND
SEA TROUT
TILAPIA
Vertical integrationtroughout the value chain.
INTEGRATION AquaChile is vertically integrated in the Salmon and Tilapia business.
The Company adds value to all of its productive chain, from genetics up to commercialization.
FRY PRODUCTION
GENETICS
FARMING
FEED*
PROCESSING COMMERCIALIZATION
FEED
Pág. Nº21AQUACHILE
Source: The Company
Universidad
de Chile
0,12%
AquaChile
99,88%
Increase in harvest weight of the Pacific SalmonIn WFE kg
∆+40%
Aquainnovo: Created to be a world class center for genetic improvement in aquaculture
Source: The Company Source: The Company
Improvement in Tilapia conversion factor of ACI Group Reduction in the Tilapia’s on growing cycleIn number of days
Δ-36%Δ-21%
Genetics:15 years of succesfull and proven genetic development.
Pág. Nº22AQUACHILE
Genetics in Salmon and Sea Trout Genetics in Tilapia
Genetics:15 years of succesfull and proven genetic development.
Pág. Nº23AQUACHILE
Fish feed plant:State of the art assets to feed our fish.
Joint venture with Biomar in Chile, one of the
world’s leading suppliers of high performance
fish feed.
126,000 tons of installed capacity.
Modular design allows the company to double
its output capacity.
Pág. Nº24AQUACHILE
AquaChile:Strong organic growth plan based on unique assets
Fresh Water: Flexibility and excess installed capacity
Processing: Installed capacity to absorb growth
Vertical integration throughout the value chain
Sea Water: High quality and diversified license portfolio
Global presence and reputation
Pág. Nº25AQUACHILE
AquaChile has over 230 clients in more than 30 countries in the five continents
We have more than 19 years of experience in Asia and over 20 years in the fresh salmon market
Source: The Company
Destination of AquaChile’s main Salmon, Sea Trout and Tilapia salesIn net tons
Commercialization:Global presence and reputation.
Operations
Salmon and Sea Trout sales 2012 (net tons)
Tilapia Sales 2012 (net tons)
Salmon
Tilapia
3.690
1.012
810
274
16.577
54
127
21
84
23
127
78
6.870
127
793
1.859
6.709
157
132
2.018
5.563
146
32 1.230
867
2.094
,
1.505
268
Pág. Nº26AQUACHILE
The only Salmon & Tilapia company with
operations inside Miami International
Airport
Improved cold chain
Less handling involved
AquaChile Inc:Servicing the United States from Miami.
Experienced customer service
Reliability and commitment
We deliver!
Pág. Nº29AQUACHILE
1,20%0,70%
1,65%
0%
5%
10%
15%
20%
ag
o-0
8
dic
-08
ab
r-0
9
ag
o-0
9
dic
-09
ab
r-1
0
ag
o-1
0
dic
-10
ab
r-1
1
ag
o-1
1
dic
-11
ab
r-1
2
ag
o-1
2
dic
-12
ab
r-1
3
ag
o-1
3
Pacific Salmon Atlantic Salmon Sea Trout
Chilean industryProductivity performance
Significant mortality reduction in the industry since 2009
Sea lice level increasing according to the increase in the industry biomass
Source: Aquabench
Monthly mortality rates
(%)
0,6
7,45,9
0
10
20
30
40
50
60
70
ma
r-0
7
jul-
07
no
v-0
7
ma
r-0
8
jul-
08
no
v-0
8
ma
r-0
9
jul-
09
no
v-0
9
ma
r-1
0
jul-
10
no
v-1
0
ma
r-1
1
jul-
11
no
v-1
1
ma
r-1
2
jul-
12
no
v-1
2
ma
r-1
3
jul-
13
Pacific Salmon Atlantic Salmon Sea Trout
Sea lice monthly monitoring 2007-2013
(Number of sea lice per fish)
Source: Aquabench, Sernapesca
Pág. Nº30AQUACHILE
Ova imports with no restrictions.
Non-existence of biosecurity standards.
Low-quality Smolts.
Inadequate regulation.
Excessive densities.
Non-interrupted cycles, with no fallowing.
Deficient coordination among production sites.
Low usage and low quality vaccines.
0%
5%
10%
15%
20%
mar-08 ago-08 ene-09 jun-09
Pacific Salmon Atlantic Salmon
Sea Trout
0
20
40
60
80
mar-07 ago-07 ene-08
Pacific Salmon Atlantic Salmon
Sea Trout
Monthly mortality rates
(%)
Sea lice monthly monitoring
(Number of sea lice per fish)
Con
sequ
ence
s
Sea lice Crisis
ISAv Crisis
Origin of the sanitary crisis:
Pág. Nº31AQUACHILE
New regulationsStructural Changes in the Industry: Controlling Risk
AS: Atlantic Salmon; ST: Sea Trout; PS: Pacific Salmon
Fresh water AS ST PS
Restrictions and new sanitary protocols on egg imports and hatchery use ✓✓✓
Individual Screening of Broodstock ✓✓✓
Affluent and effluent treatment ✓✓✓
Land based hatcheries ✓
Safe mortality disposal ✓✓✓
Standardization and validation of diagnostic laboratories ✓✓✓
Smolts: ISA free certification before transferring to the sea ✓✓✓
Safeguards and optimization of freshwater production ✓✓✓
Clear and strong disinfection protocols ✓✓✓
Sea water AS ST PS
Sanitary areas ✓✓✓
Operating and fallowing schedules in sanitary areas ✓✓✓
Macrozone definition: 4 in the Xth Region and 3 in the XIth Region ✓✓✓
Corridors definition between macrozones(5 miles) ✓✓✓
Minimum distance between licenses (1.2-1.7 miles) and sanitary areas (3.5 miles)
✓✓✓
Re-location of licenses located in corridors ✓✓✓
New licenses granted for 25 years with the option to be renewed ✓✓✓
Sanitary zoning for diseases ✓✓✓
Strengthening of control powers (biomass stamping out in case of disease) and forfeiture conditions of the farming licenses
✓✓✓
Establishment of specific sanitary programs for ISA, Sea Lice and SRS ✓✓✓
Pág. Nº32AQUACHILE
AS: Atlantic Salmon; ST: Sea Trout; PS: Pacific Salmon
Sea water (Cont..) AS ST PS
Improved adherence of legal framework regarding sanitary and environmental issues ✓ ✓ ✓
Coordinated programs for sea lice control ✓ ✓
Safe mortality disposal ✓ ✓ ✓
No fish movements between marine sites ✓ ✓ ✓
Restrictions and new sanitary protocols for wellboats ✓ ✓ ✓
Application of maximum farming densities in the sanitary areas ✓ ✓ ✓
Standardization and validation of diagnostic laboratories ✓ ✓ ✓
Re-location allowed in the XIth Region ✓ ✓ ✓
License application suspended in the Xth and XIth Region until 2015 ✓ ✓ ✓
Penalties increase (penalty equal to economic value of biomass) ✓ ✓ ✓
Increase in patents: more resources for research ✓ ✓ ✓
New regulationsStructural Changes in the Industry: Controlling Risk
Pág. Nº33AQUACHILE
AS: Atlantic Salmon; ST: Sea Trout; PS: Pacific Salmon
Final steps on the legal framework : pending final decree AS ST PS
Flexibility in the fallowing period of licenses
• Extended fallowing periods without expiring dates
• Licenses located in corridors allowed to stand by without expiring✓ ✓ ✓
Density restriction per license
Biosafety qualification regarding mortality records from the last productive cycle
• Low mortality: maximum allowed density
• High mortality: stocking restrictions
✓ ✓ ✓
Density restriction per sanitary area
• The sanitary area density will determine the maximum number of fish to stock in each pen, except
those licenses with low mortality performance during the last productive cycle (less than 15%)
• The density will be determined by:
• Environmental performance (10%): Number of licenses presenting aerobic conditions at the end
of the productive cycle
• Sanitary performance (65%): Total mortality within the last period
• Productivity performance (25%): Stocking intention in the sanitary area compared with the
optimal stocking
• Optimal stocking in the sanitary area depends of the mortality in the last productive cycle.
• Low mortality: optimal stocking increase in 16%
• High mortality: optimal stocking decrease 24%
✓ ✓ ✓
New regulationsStructural Changes in the Industry: Controlling Risk
Pág. Nº34AQUACHILE
New regulationsStructural Changes in the Industry: Controlling Risk
Density restriction per License
MortalityBiosecurity
LevelNext Cycle Smolt stocking
] 0% ; 15% ] High Maximum allowed density
] 15% ; 18% ] Medium High 10% smolt stocking reduction
] 18% ; 22% ] Medium 20% smolt stocking reduction
] 22% ; 26% ] Low 1 40% smolt stocking reduction
> 26% Low 2 60% smolt stocking reduction
Pág. Nº35AQUACHILE
New regulationsStructural Changes in the Industry: Controlling Risk
Environmental Performance:
Weight Rank (%) Score
10%
]75,100] 100
]50;75] 75
]25;50] 50
[0;25] 25
Sanitary Performance:
Weight Rank (%) Score
65%
[0%,15%[ 100
[15%;17%[ 75
[17%;20%[ 50
>20% 25
Productive Performance:
Weight Rank (%) Score
25%
[0%,100%[ 100
[100%;110%[ 75
[110%;120%[ 50
>120% 25
ScoreBiosecurity
LevelPermitted Pen Density
] 85 ; 100 ] High
Atlantic Salmon: 17 kg / m3
Sea Trout: 12 kg / m3
Pacific Salmon: 12 kg / m3
] 64 ; 85 ] Medium
Atlantic Salmon: 15 kg / m3
Sea Trout: 11 kg / m3
Pacific Salmon: 11 kg / m3
] 43 ; 64 ] Low 1
Atlantic Salmon: 13 kg / m3
Sea Trout: 10 kg / m3
Pacific Salmon: 10 kg / m3
] 0 ; 43 ] Low 2
Atlantic Salmon: 11 kg / m3
Sea Trout: 8 kg / m3
Pacific Salmon: 8 kg / m3
Density restriction per Sanitary Area*
* Apply for licenses with more than 15% mortality in the last cycle
Pág. Nº36AQUACHILE
New regulationsStructural Changes in the Industry: Controlling Risk
Final steps on the legal framework : pending final decree AS ST PS
Smoltification in lakes, rivers and brackish water
• Minimum distance between smoltification sites and on growing sites / gathering sites / docks for
aquaculture operations (3 miles)
• Smoltification area must be located in disease free area from list # 2 with specific sanitary control
program
• However Sea Trout and Pacific Salmon smoltification area can be located in surveillance area from list
# 2 with sanitary control program for 3 years
✓ ✓ ✓
Pág. Nº38AQUACHILE
-More than
5,100 employees in Chile, Costa Rica, Panama & United States
-Benefits above legal requirements
-On the job training
-Costa Rica: ISO 14001:2004, OHSAS 18001:2007 and BAP for Global Aquaculture
Alliance, the most demanding at present
-Chile: Global GAP certification in progress
-Social Responsibility Report available (www.aquachile.com/sustainability)
OUR LABOR AND
ENVIROMENTAL
STANDARDS
We are committedto our employees, our clients and the environment.
Pág. Nº39AQUACHILE
-To produce quality, healthy and safe food
-To act in a proactive and respectful way towards the environment
-To develop in a safe and healthy work environment
-To benefit the communities and suppliers in the places where the
company operates
OUR CORPORATE
SOCIAL
RESPONSIBILITY
PRINCIPLES
We are committedto our employees, our clients and the environment.
Pág. Nº44AQUACHILE
Alejandro Cristian
Verlasso salmon
Verlasso farms
Harmoniously raised fishwww.verlasso.com
Pág. Nº47AQUACHILE
Note on forward-looking statements
This report includes forward-looking statements. These may
include words like “anticipates”, “estimates”, “expects”,
“projects”, “intends”, “plans”, “believes” or other
comparable expressions. Forward-looking statements do not
represent past events, including statements on the beliefs
and expectations of the company. These statements are
based on current plans, estimates and projections, and
therefore cannot be overrated. Forward-looking statements
entail certain risks and uncertainties. The company notes
that a significant number of factors could result in current
results to differ materially from those contained in any
forward-looking statement. These factors and uncertainties
include in particular those described in the document that
the company submitted to the Chilean Securities and
Insurance Commission (SVS), section on Risk Factors.
Forward-looking statements are related only to the date
when they are made and the company assumes no
obligation to publicly update any such statements in the
presence of new information, future events or otherwise.
This document purports to deliver general information on
Empresas AquaChile S.A. Under no circumstance does it
constitute an exhaustive analysis of the financial, productive,
commercial and health situation of the company, and
therefore any consideration on the advisability of acquiring
or selling securities of the company would require the
interested party to conduct an independent analysis.
In accordance with applicable standards, Empresas
AquaChile S.A. has sent its financial statements and notes to
the Securities and Insurance Commission, which are
available for consultation and analysis on its webpage at
www.svs.cl and also at www.aquachile.com.