Salmones Camanchaca - Q4 2021 results

Highlights:
o	Harvest volume of Atlantic salmon in Q4 2021 was 15,002 MT WFE, 5.1% lower
than Q4 2020, still affected by lower average harvest weights of 4.5 kg compared
to 5.6 kg in Q4 2020

o	Inventory levels allowed for higher sales volume reaching 16,273 MT WFE, 18%
higher than for the same period last year

o	Market prices of Atlantic salmon were up 47% year-over-year. Good price
realization, capturing market price increase with value added product strategy

o	The cost of Atlantic salmon increased 15% year-over-year, due to continued
harvesting of fish from sites in the Comau Fjords affected by high mortalities
due to algae blooms. Compared to previous quarter ex-cage live weight costs
decreased by 5.5% 

o	Quarterly EBITDA at USD 17.6 million, compared to negative USD 8.8 million Q4
2020, driven by increased prices and higher volume

o	Successfully raised USD 23 million in new equity to strengthen financial
position, finance biomass growth and de-risking farming operations

o	Restructured the long-term banking facility by signing a "Sustainable Linked
Loan", the first of its kind in Chile for the sector, for USD 135 million

o	Cash balance of USD 32.2 million and net interest-bearing debt at USD 121.9
million at quarter end

o	2022 estimated harvest volume at 51,000 to 55,000 MT WFE, of which 45-48,000
MT WFE of Atlantic salmon and 6,000-7,000 MT WFE of Coho

Operating revenue amounted to USD 107.6 million during the quarter, up 63% from
USD 65.4 million in the corresponding period in 2020. The improvement is mainly
attributable to higher prices and volume.
While harvest costs remained higher than the same period last year, there was a
gradual improvement in costs during the period. Compared to previous quarter,
costs were down USD 0.23/kg, with effects of the algae blooms of Q1 and Q2 2021
now reduced. Harvest and processing costs ended at USD 0.89 /kg WFE during the
quarter, slightly below long-term target of USD 1/kg WFE. The company see
continued cost reductions going forward and expects costs to return to normal in
2022.
Operational EBIT before fair value adjustments in Q4 2021 was USD 13.4 million,
compared with negative USD 13.0 million in Q4 2020. The improvement is mainly
attributable to higher prices and volume. 
On December 29, the company successfully concluded a capital increase, raising
USD 23 million and increasing equity ratio by 15%. The capital increase will be
used to support the 2021-2023 investment plan allowing production in sites with
lower risk of algae blooms and lack of oxygen, to recover the biomass lost
during the algae bloom of 2021, and to strengthen the overall financial position
of the company.
Improving the balance sheet further, the company restructured its long-term
banking facility by signing a "Sustainable Linked Loan ", the first of its kind
in Chile for the sector for USD 135 million, which requires linking interest
margins to delivering in five specific sustainability indicators agreed with the
banks. This loan has a 3-year grace period and 80% repayment at maturity, which
provides significant financial leeway for the next 5 years

Commenting on the performance of Salmones Camanchaca, vice chairman Ricardo
García, said: 
"We are pleased with the volume recovery and results obtained in this fourth
quarter, which shows once again the capabilities of our company, leaving behind
the episodes of algae blooms from the beginning of 2021. This year we also
showed that sustainability not only covers efforts in production areas, but we
have taken it to the financial field with a Sustainability Linked Loan genuinely
related to our progress in the matter. This is also reflected in our outstanding
ranking in the Dow Jones Sustainability Index (DJSI). Additionally, we are proud
that our company was recognized in the 2022 Sustainability Yearbook of Standard
& Poor (S&P) as an Industry Mover, which identifies companies that had
outstanding growth in their sustainability management assessment, and where only
50 firms worldwide hold this distinction".
Mr. García also highlighted that "the global context is favorable for salmon
farming, as alternative proteins are under pressure due to their effects on
greenhouse gases, and due to the growth on demand for healthy and nutritious
proteins with low emissions and little use of water. Farmed salmon is a
sustainable response to the challenges of feeding the world, using a tiny part
of the sea surface, leaving much less carbon footprint, and almost without using
fresh water, which are the great challenges of the planet".
Salmones Camanchaca will present the quarterly results on Thursday, 24 February
2022 at 13:00 Central European Time (CET).
The presentation will be held on-line by Vice Chairman Ricardo García.
Subsequent Q&A session will be held in English and it will be possible to ask
questions online.
Webcast link https://ubiqq.com/camanchaca/live

For more information please contact:
Marta Rojo, Head of IR, +56 2 2873 2987, marta.rojo@camanchaca.cl 
Álvaro Marín, IR Assistant Manager, alvaro.marin@camanchaca.cl
About Salmones Camanchaca 
Salmones Camanchaca S.A. is a vertically integrated salmon producer engaged in
breeding, egg production, recirculating hatcheries for Atlantic salmon and
pass-through or lake hatcheries for Pacific salmon (Coho) salmon and Trout, fish
farming sites in estuary, fjord and oceanic waters used mainly for Atlantic
salmon, primary and secondary processing, and marketing and sales of Atlantic
and Coho salmon through five sales offices in its main markets. 
The production target for both 2022 and 2023 is in the range of 50-55,000 MT
WFE. The total production capacity for both Atlantic and Coho salmon is
65-70,000 MT WFE. The Company participates in trout farming through a one third
share of a joint venture, which uses Salmones Camanchaca farming sites in
coastal-estuarine waters, and currently plans to harvest an average of 9,000 MT
WFE per year until 2028. 
Salmones Camanchaca has 1,900 employees on average, 60% of whom work in its
secondary processing and value-added plant. Markets for Atlantic salmon are led
by the USA, Mexico and Japan, with approximately 30% of sales going to emerging
markets in a variety of fresh and frozen formats.

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to Section 5-12 the Norwegian Securities Trading Act. This stock exchange
release was published by Álvaro Marín, Corporate Controlling & IR Assistant
Manager, Salmones Camanchaca on 23 February 2022 at 22:00 CET.