4. AQUACHILE Pรกg. Nยบ4
Empresas AquaChile
at a glance.
AquaChile is a Chilean company that
produces and commercializes Atlantic
Salmon, Pacific Salmon, Sea Trout and Tilapia.
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
230
customers in
30
countries.
5. 283 281
AQUACHILE Pรกg. Nยบ5
Empresas AquaChile
at a glance.
Public since
May 19th, 2011
Market capitalization of
USD 578 millions
as of October 30, 2013
Main Shareholders:
Puchi and Fischer Families
578
Shareholderโs Structure**
Puchi Family
33,03%
Fischer 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
163 143
34
Chilean Salmon Companies by
Market Cap (MUSD)*
Source: Bloomberg
7. AQUACHILE Pรกg. Nยบ7
Annual Sales
In MUSD
410
Source: The Company
25 years
of succesful track record.
Crisis
โข ISA virus effects
โข Financial restructuring
โข New legal framework focused
in long term sustainability
โข Advantages of diversification
2006 โ 2007 Period
โข 3rd largest world producer
โข Global presence and
reputation
โข IPO and acquisition plans
Beginnings
โข 25 years of history
โข Merger with Salmones Pacรญfico
Sur
โข Track record forming strategic
alliances
โข Sustained growth
Today
โข Diversified business model
โข Vertical integration
โข High growth potential
โข Industry consolidation capacity
Revenues
In MUSD
2012
8. X and XI Region
X and XI Region
X and XI Region
AQUACHILE Pรกg. Nยบ8
19%
36%
20%
25%
17%
31%
16%
15%
Tilapia Pacific Salmon Sea Trout Atlantic Salmon
Bayano Lake Guanacaste
Source: The Company as of December 31, 2012
Focus in
diversification for success.
% of Consolidated
Sales (US$ )
% of Consolidated
Sales (tons)
Geographic
Diversification
10. AQUACHILE Pรกg. Nยบ10
AquaChile:
Strong organic growth plan based on unique assets
Sea Water: High quality and diversified license portfolio
Fresh Water: Flexibility and excess installed capacity
Processing: Installed capacity to absorb growth
Vertical integration throughout the value chain
Global presence and reputation
11. AQUACHILE Pรกg. Nยบ11
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
12. INDUSTRY
Total of 24 sanitary areas
AQUACHILE
55 sea licenses in 12 sanitary areas
50% of sanitary areas of the Los Lagos Region
AQUACHILE Pรกg. Nยบ12
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
Los Lagos Region
Aysen Region
Sea licenses Sanitary areas
Geographical
diversification in sea
licenses for Salmon
and Sea Trout
production.
13. AQUACHILE Pรกg. Nยบ13
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
14. AQUACHILE Pรกg. Nยบ14
AquaChile:
Strong organic growth plan based on unique assets
Sea Water: High quality and diversified license portfolio
Fresh Water: Flexibility and excess installed capacity
Processing: Installed capacity to absorb growth
Vertical integration throughout the value chain
Global presence and reputation
15. AQUACHILE Pรกg. Nยบ15
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.
7
brackish 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.
1
River licenses in the XVth Regions for
Atlantic Salmon smoltification.
16. AQUACHILE Pรกg. Nยบ16
AquaChile:
Strong organic growth plan based on unique assets
Sea Water: High quality and diversified license portfolio
Fresh Water: Flexibility and excess installed capacity
Processing: Installed capacity to absorb growth
Vertical integration throughout the value chain
Global presence and reputation
16
17. Processing:
Installed capacity to absorb growth.
7 plants with a total capacity of 190,000 WFE tons, including one of the largest plant in the World
AQUACHILE Pรกg. Nยบ17
Current production capacity of AquaChileโs processing plants
In thousands of WFE tons
50,0
26,0
21,6
34,4
36,7
21,0
Cardonal Cailรญn Hueรฑocoihue Antarfood Calbuco Costa Rica
Location Puerto
Montt
Quellรณn Dalcahue Chonchi Calbuco
Plant Type
Value
Added
Value
Added
Whole
Salmon
Whole
Salmon
Value
Added
PAC-HACCP
Certification
Yes Yes Yes Yes Yes
Value
Added
Yes
Guanacaste
Source: The Company
18. AQUACHILE Pรกg. Nยบ18
Diversity of Salmon Products
Whole HG Trim C
Trim D Trim E Portions
Whole
Breaded Fillets
Fillets
Diversity of Tilapia Products
Processing:
Installed capacity to absorb growth.
Chile Costa Rica
19. AQUACHILE Pรกg. Nยบ19
AquaChile:
Strong organic growth plan based on unique assets
Sea Water: High quality and diversified license portfolio
Fresh Water: Flexibility and excess installed capacity
Processing: Installed capacity to absorb growth
Vertical integration throughout the value chain
Global presence and reputation
20. The Company adds value to all of its productive chain, from genetics up to commercialization.
AQUACHILE Pรกg. Nยบ20
Vertical integration
troughout the value chain.
INTEGRATION AquaChile is vertically integrated in the Salmon and Tilapia business.
GENETICS
FRESH WATER
Eggs & Smolts
SEA WATER
Farming
PROCESSING COMMERCIALIZATION
FEED
SALMON AND
SEA TROUT
TILAPIA
FRY
PRODUCTION
GENETICS
FARMING
FEED*
PROCESSING COMMERCIALIZATION
FEED
21. Source: The Company
Genetics:
15 years of succesfull and proven genetic development.
Improvement in Tilapia conversion factor of ACI Group Reduction in the Tilapiaโs on growing cycle
AQUACHILE Pรกg. Nยบ21
Universidad
de Chile
0,12%
AquaChile
99,88%
Increase in harvest weight of the Pacific Salmon
In WFE kg
ฮ+40%
Aquainnovo: Created to be a world class center for genetic improvement in aquaculture
In number of days
Source: The Company Source: The Company
ฮ-36%
ฮ-21%
22. AQUACHILE Pรกg. Nยบ22
Genetics:
15 years of succesfull and proven genetic development.
Genetics in Salmon and Sea Trout Genetics in Tilapia
23. AQUACHILE Pรกg. Nยบ23
Fish feed plant:
State of the art assets to feed our fish.
Joint venture with Biomar in Chile, one of the
worldโs leading suppliers of high performance
fish feed.
126,000 tons of installed capacity.
Modular design allows the company to double
its output capacity.
24. AQUACHILE Pรกg. Nยบ24
AquaChile:
Strong organic growth plan based on unique assets
Sea Water: High quality and diversified license portfolio
Fresh Water: Flexibility and excess installed capacity
Processing: Installed capacity to absorb growth
Vertical integration throughout the value chain
Global presence and reputation
25. AQUACHILE Pรกg. Nยบ25
Commercialization:
Global presence and reputation.
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 AquaChileโs main Salmon, Sea Trout and Tilapia sales
In net tons
127
Operations
Salmon and Sea Trout sales 2012 (net tons)
Tilapia Sales 2012 (net tons)
Tilapia
Salmon
3.690
1.012
810
274
16.577
54
21
84
127
23
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
26. AQUACHILE Pรกg. Nยบ26
AquaChile Inc:
Servicing the United States from Miami.
Experienced customer service
Reliability and commitment
We deliver!
The only Salmon & Tilapia company with
operations inside Miami International
Airport
Improved cold chain
Less handling involved
27. AQUACHILE Pรกg. Nยบ27
Our brands and
our main clients.
Renowned Brands Reputable Clients
29. Sea lice monthly monitoring 2007-2013
(Number of sea lice per fish)
AQUACHILE Pรกg. Nยบ29
Significant mortality reduction in the industry since 2009
Sea lice level increasing according to the increase in the industry biomass
1,65%
1,20%
0,70%
Chilean industry
Productivity performance
20%
15%
10%
5%
0%
ago-08
dic-08
abr-09
ago-09
dic-09
abr-10
ago-10
dic-10
abr-11
ago-11
dic-11
abr-12
ago-12
dic-12
abr-13
ago-13
Pacific Salmon Atlantic Salmon Sea Trout
Source: Aquabench
Monthly mortality rates
(%)
7,4
5,9
0,6
70
60
50
40
30
20
10
0
mar-07
jul-07
nov-07
mar-08
jul-08
nov-08
mar-09
jul-09
nov-09
mar-10
jul-10
nov-10
mar-11
jul-11
nov-11
mar-12
jul-12
nov-12
mar-13
jul-13
Pacific Salmon Atlantic Salmon Sea Trout
Source: Aquabench, Sernapesca
30. Sea lice monthly monitoring
(Number of sea lice per fish)
AQUACHILE Pรกg. Nยบ30
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.
80
60
40
20
20%
15%
10%
5%
0%
mar-08 ago-08 ene-09 jun-09
Pacific Salmon Atlantic Salmon
Sea Trout
0
mar-07 ago-07 ene-08
Pacific Salmon Atlantic Salmon
Sea Trout
Monthly mortality rates
(%)
Consequences
Sea lice Crisis
ISAv Crisis
Origin of the sanitary crisis:
31. AQUACHILE Pรกg. Nยบ31
New regulations
Structural Changes in the Industry: Controlling Risk
Fresh water AS ST PS
Restrictions and new sanitary protocols on
egg imports and hatchery use โโโ
Individual Screening of Broodstock โโโ
Affluent and effluent treatment โโโ
Land based hatcheries โ
Safe mortality disposal โโโ
Standardization and validation
of diagnostic laboratories โโโ
Smolts: ISA free certification before
transferring to the sea โโโ
Safeguards and optimization of freshwater
production โโโ
Clear and strong disinfection protocols โโโ
AS: Atlantic Salmon; ST: Sea Trout; PS: Pacific Salmon
Sea water AS ST PS
Sanitary areas โโโ
Operating and fallowing schedules in
sanitary areas โโโ
Macrozone definition: 4 in the Xth Region
and 3 in the XIth Region โโโ
Corridors definition between macrozones
(5 miles) โโโ
Minimum distance between licenses
(1.2-1.7 miles) and sanitary areas (3.5
miles)
โโโ
Re-location of licenses located in corridors โโโ
New licenses granted for 25 years
with the option to be renewed โโโ
Sanitary zoning for diseases โโโ
Strengthening of control powers (biomass
stamping out in case of disease) and
forfeiture conditions of the farming
licenses
โโโ
Establishment of specific sanitary programs
for ISA, Sea Lice and SRS โโโ
32. New regulations
Structural Changes in the Industry: Controlling Risk
Sea water (Cont..) AS ST PS
Improved adherence of legal framework regarding sanitary and environmental issues โ โ โ
Coordinated programs for sea lice control โ โ
Safe mortality disposal โ โ โ
No fish movements between marine sites โ โ โ
Restrictions and new sanitary protocols for wellboats โ โ โ
Application of maximum farming densities in the sanitary areas โ โ โ
Standardization and validation of diagnostic laboratories โ โ โ
Re-location allowed in the XIth Region โ โ โ
License application suspended in the Xth and XIth Region until 2015 โ โ โ
Penalties increase (penalty equal to economic value of biomass) โ โ โ
Increase in patents: more resources for research โ โ โ
AQUACHILE Pรกg. Nยบ32
AS: Atlantic Salmon; ST: Sea Trout; PS: Pacific Salmon
33. Final steps on the legal framework : pending final decree AS ST PS
AQUACHILE Pรกg. Nยบ33
Flexibility in the fallowing period of licenses
โข Extended fallowing periods without expiring dates
โข Licenses located in corridors allowed to stand by without expiring
AS: Atlantic Salmon; ST: Sea Trout; PS: Pacific Salmon
โ โ โ
Density restriction per license
Biosafety qualification regarding mortality records from the last productive cycle
โข Low mortality: maximum allowed density
โข High mortality: stocking restrictions
โ โ โ
Density restriction per sanitary area
โข 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%)
โข The density will be determined by:
โข Environmental performance (10%): Number of licenses presenting aerobic conditions at the end
of the productive cycle
โข Sanitary performance (65%): Total mortality within the last period
โข Productivity performance (25%): Stocking intention in the sanitary area compared with the
optimal stocking
โข Optimal stocking in the sanitary area depends of the mortality in the last productive cycle.
โข Low mortality: optimal stocking increase in 16%
โข High mortality: optimal stocking decrease 24%
โ โ โ
New regulations
Structural Changes in the Industry: Controlling Risk
34. AQUACHILE Pรกg. Nยบ34
New regulations
Structural Changes in the Industry: Controlling Risk
Density restriction per License
Mortality
Biosecurity
Level
Next 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
35. AQUACHILE Pรกg. Nยบ35
New regulations
Structural 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
Score
Biosecurity
Level
Permitted 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
36. AQUACHILE Pรกg. Nยบ36
New regulations
Structural 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
โข Minimum distance between smoltification sites and on growing sites / gathering sites / docks for
aquaculture operations (3 miles)
โข Smoltification area must be located in disease free area from list # 2 with specific sanitary control
program
โข However Sea Trout and Pacific Salmon smoltification area can be located in surveillance area from list
# 2 with sanitary control program for 3 years
โ โ โ
38. We are committed
to our employees, our clients and the environment.
-More than
5,100
employees in Chile, Costa Rica, Panama & United States
AQUACHILE Pรกg. Nยบ38
-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
39. AQUACHILE Pรกg. Nยบ39
We are committed
to our employees, our clients and the environment.
-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
40. AQUACHILE Pรกg. Nยบ40
We are committed
to our employees, our clients and the environment.
47. AQUACHILE Pรกg. Nยบ47
Note on forward-looking statements
This report includes forward-looking statements. These may
include words like โanticipatesโ, โestimatesโ, โexpectsโ,
โprojectsโ, โintendsโ, โplansโ, โbelievesโ 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.