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GENETICS ADVANCED NUTRITION HEALTH This document and any information contained within it is the property of Benchmark Holdings Plc and its Affiliates Driving Sustainability in Aquaculture FY24 Results Investor Presentation Trond Williksen, CEO Septima Maguire, CFO 12 December 2024
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1. Highlights 2. Operational Update 3. Financial Update 4. Strategy and Outlook 5. Q&A Agenda
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3 Strategic Review • The Strategic Review resulted in the sale of the Genetics business • realises value for shareholders at a level that reflects the intrinsic value of the business • enables the Company to pay down the debt in full, strengthening the balance sheet for the continuing business • positions the Company to realise the potential in Advanced Nutrition and Health – single focus going forward • Approaches were received for all business areas • Post disposal, significant opportunity to reduce complexity and streamline the Group structure reducing costs FY24: Resilient performance in a year of change and market headwinds; Strategic Review complete Transaction highlights: • Enterprise value of up to £260m • 17.9x Adjusted EBITDA • Initial consideration of £230m • £30m contingent consideration • Completion expected in Q1 CY25 with a transition services agreement expected to end in Q2 CY25 • Repayment of debt and return of capital to shareholders post completion
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4 Group Total (continuing and discontinued) • Revenues -7% CER: • Advanced Nutrition: + 5% CER, a solid performance in challenging markets • Health: -41% CER after decommissioning of the two platform support vessels and CleanTreat® units • Genetics: -8% CER against strong FY23 which benefitted from supply constraints and reflecting shift in sales through the Company’s JV • Adjusted EBITDA ex FV movement was -10% CER driven by: • Lower revenues • Lower gross profit margin due to product mix • Partially offset by 15% reduction in operating costs • Adjusted operating loss impacted by: • Lower revenue and gross margin, and • Impairment of capitalised development costs of £15.3m driven mainly by Ectosan® Vet and CleanTreat® FY24 Highlights Total (continuing and discontinued) Revenues £147.7m -13% (-7% CER) Adj. EBITDA ex FV movements £28.9m -16% (-10% CER) Adj. Operating profit -£5.9m loss FY23:+ £13.1m Continuing Activities Revenues £90.4m -13% (-6% CER) Adj. EBITDA £11.9m -30% (-24% CER)
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5 Group Total (continuing and discontinued) • Revenue +7% CER: • Advanced Nutrition: +9% (+17% CER), a good performance in challenging markets • Health: -66% (-64% CER) reflecting pause in Ectosan® Vet and CleanTreat® • Genetics (discontinued): +2% (+7% CER), a solid performance • Gross Profit: -21% due to product mix • Operating costs: 35% below the prior year • Lower Adjusted EBITDA ex FV movement • reflects lower margins partially offset by lower costs • Operating loss impacted by impairment in Health Q4: Resilient trading and cost control offset by lower margins Total (continuing and discontinued) Revenues £36.8m +1% (+7% CER) Adj. EBITDA ex FV movements £6.9m -22% (-19% CER) Adj. Operating Loss -£17.4m FY23: -£6.6m Continuing Activities Revenues £19.6m -1% (+6% CER) Adj. EBITDA £1.6m +20% (+11% CER)
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Operational Update 6
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Advanced Nutrition • Revenues +5% CER reflect success of commercial focus • Gross margin impacted by change in product mix including due to nature of Artemia harvest • Actions taken over the last three years to strengthen commercial focus, broaden product range and increase operational efficiency mitigate market cyclicality Market environment • Shrimp markets continued to be difficult - growth slowed in Ecuador the main producing country in the Americas and Asia was flat; prices remained low • Mediterranean fish markets were stable Operating highlights • Continued innovation and launch of new products – SnappArt360 and new shrimp diets improving feed stability and performance • New subsidiary in India expands commercial footprint in key market • Newly installed solar panels delivered 23% reduction in GHG emissions Solid performance in challenging shrimp markets 7 (£m) FY 24 FY 23 Q4 24 Q4 23 Revenue 75.9 78.5 18.7 17.1 Gross Margin 36.7 43.8 7.2 10.1 Adj. EBITDA1 14.4 18.4 2.7 3.5 Adj. EBITDA Margin 19% 23% 14% 20% Adj. Operating Profit/(Loss)2 9.1 15.9 (0.6) 2.9 47% 41% 12% FY24 Revenue Contribution Artemia Diets Health FY24/ FY 23 -3% 0% -17% 7 (1) Adj. EBITDA is EBITDA (earnings before interest, tax, depreciation and amortisation and impairment), before exceptional items including acquisition related expenditure (2) Adjusted Operating Profit is operating loss before exceptional items including acquisition related items and amortisation of intangible assets excluding development costs
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Health • Restructuring of Health to turn it into a profitable business delivering well - established sea lice treatment Salmosan® Vet with upside from Ectosan® Vet and CleanTreat® • Decommissioning of PSV’s and CleanTreat® units • Significantly reduced headcount • Maintained capability to deliver Ectosan® Vet and CleanTreat® • Ongoing customer dialogue about possible infrastructure configurations Transition from capital intensive model 8 (£m) FY 24 FY 23 Q4 24 Q4 23 Revenue 14.5 25.5 0.9 2.6 Gross Margin 7.3 12.3 0.2 0.6 Adj. EBITDA1 2.1 4.8 (0.2) (0.9) Adj. EBITDA Margin 14% 19% (22%) (32%) Adj. Operating Loss2 (21.3) (8.6) (14.1) (4.3) 54% 46% FY24 Revenue contribution Salmosan® Vet Ectosan® Vet 9 (1) Adj. EBITDA is EBITDA (earnings before interest, tax, depreciation and amortisation and impairment), before exceptional items including acquisition related expenditure (2) Adjusted Operating Profit is operating loss before exceptional items including acquisition related items and amortisation of intangible assets excluding development costs
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Financial Update 9
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Income statement highlights Continuing operations • Revenue of £90.4m down 6% CER, resulting from growth in Advanced Nutrition offset by Health • Gross profit impacted by product mix in Advanced Nutrition influenced by: • nature of Artemia harvest • management of Artemia inventory • Cost control maintained • Adjusted operating profit includes impairment of development costs, primarily in Health • Exceptional costs primarily resulting from • strategic review • restructuring actions across the Group 10 £m FY 24 FY 233 % AER % CER Q4 24 Q423 % AER Revenue 90.4 104.0 (13)% (6)% 19.6 19.7 (1)% Gross profit 43.9 56.1 (22)% (18)% 7.4 10.7 (31)% R&D (2.4) (2.4) (4)% (6)% (0.6) (0.8) 22% Other operating costs (29.6) (36.8) 20% 16% (5.2) (8.6) 40% Adjusted EBITDA1 11.9 17.0 (30)% (24)% 1.6 1.3 20% Adjusted Operating Profit/(Loss)2 (16.6) 1.2 (1,507)% (1,451)% (15.6) (2.7) (472)% Exceptional costs (5.6) (3.9) (43)% (43)% (1.9) (0.7) (180)% Net finance costs (10.4) (7.2) 46% (4.3) (4.1) (7)% Loss before tax (45.9) (24.7) (86)% (84)% (25.1) (10.9) (131)% Loss for the period (44.3) (23.5) (89)% (87)% (23.7) (11.1) (112)% (1) Adjusted EBITDA is EBITDA (earnings before interest, tax, depreciation and amortisation and impairment), before exceptional items including acquisition related expenditure (2) Adjusted Operating Profit is operating loss before exceptional items including acquisition related items and amortisation of intangible assets excluding development costs (3) FY23 figures have been restated to reflect changes to the ongoing continuing business during the year following the disposal of the tilapia business
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11 Cost control and streamlined R&D Continuing operations 4 2 2 2 2 26 32 36 37 30 47% 43% 38% 32% 35% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 0 5 10 15 20 25 30 35 40 45 FY20 FY21 FY22 FY23 FY24 Operating and R&D costs (£m) % of revenues R&D expenses Operating costs 3 3 1 1 0 4 2 2 2 2 10% 6% 3% 6% 3% FY20 FY21 FY22 FY23 FY24 0 1 2 3 4 5 6 7 8 9 10 FY20 FY21 FY22 FY23 FY24 R&D investment (£m) % of revenues Capitalised R&D Expensed R&D
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12 Net finance expense for continuing operations increased to £10.4m (FY23: £7.2m) Primary drivers: • £2.4 adverse movement in hedging instruments compared to prior year • £0.4m increase in forex losses • £0.4m higher amortisation of deferred finance fees • £0.3m interest increase from higher utilisation of RCF facility Partially offset by lower interest on finance leases £m Net finance expenses FY24 FY23 Interest income - (0.3) Foreign exchange losses/(gains) 1.2 0.8 Interest on bond and bank debt 7.5 7.2 Amortisation of deferred finance fees 1.0 0.6 Movements in hedging instruments 0.2 (2.2) Finance lease interest 0.5 1.0 Total net continuing finance expenses 10.4 7.2 Net finance expenses Continuing operations
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13 • Net cash from operations: £2.0m (FY23: £20.0m) • driven by decreased movement in working capital of £13.8m due mainly to reduction in trade payables at year end • Capex of £3.9m down from £6.8m • Net interest paid of £8.7m, in line with FY23: £8.5m • Cash and cash equivalents as at 11 December 2024: £15.2m • Liquidity as at 11 December 2024: £26.5m Net debt1 at 30 September 2023 (£m) (65.5) Cash from operations excl. working capital and taxes 22.6 Movement in working capital (13.8) Taxes (6.8) Net cash from operations 2.0 Capital expenditure (3.9) Other disposal activities 0.9 Foreign exchange on cash and debt 5.0 Interest (8.7) Shares issued 0.1 Other non-cash movements (1.2) Net debt1 at 30 September 2024 (71.3) Net Debt excluding transfer to held for sale (49.0) Net Debt excluding lease liabilities and HFS (45.4) Cashflow, net debt and liquidity
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Strategy and Outlook 14
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15 • Focus exclusively on Advanced Nutrition and Health • leading market positions • headroom for growth • Well invested infrastructure • Opportunity to simplify and streamline corporate structure • Maintain commercial focus, innovation effort and financial discipline • Profitable and cash generative • Focus on realising value for shareholders Strategy for the continuing business A lean, profitable organisation with a solid balance sheet Advanced Nutrition • Delivering specialist nutrition and health solutions • Leverage technical and innovation capability • Expand routes to market • Continue to broaden product portfolio through innovation • Continuous operational improvement Business area strategy Health • Maintain stable profitability by focusing on Salmosan® Vet • Maintaining effort to develop new infrastructure models for Ectosan® Vet and CleanTreat® and are in dialogue with customers in relation to these
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Current trading and outlook Well placed post disposal Advanced Nutrition • Soft start to the year with markets unchanged; Q1 impacted by loss of significant customer in Venezuela • Expect improvement in the year and recovery in gross margin underpinned by influx of higher quality Artemia harvest • Actions taken over the past years to strengthen commercial effort, broaden product portfolio and increase efficiency, mitigate against market cyclicality and position the business to deliver growth and improved profitability Health • Good start to the year • Salmosan® Vet well positioned in customer toolkit to tackle sea lice • Stable profitability post restructuring • Maintaining effort to develop new infrastructure models for Ectosan® Vet and CleanTreat® and are in dialogue with customers in relation to these Group • Focus on simplifying and streamlining corporate structure • Effort to commence on completion of disposal and taking into consideration commitments under transition services agreement • Full effect of cost savings to come through in FY26 16
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Thank you Q&A 17
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Disclaimer IMPORTANT NOTICE This presentation has been prepared by Benchmark Holdings plc (the "Company") in connection with the FY 23 results on 29 November 2023. This presentation does not constitute a prospectus or an admission document relating to the Company, nor does it constitute or form part of any offer or invitation to purchase, sell or subscribe for, or any solicitation of any such offer to purchase, sell or subscribe for, any securities in the Company nor shall this presentation or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with, any contract for the same. Information in this presentation relating to the price at which relevant investments have been bought or sold in the past or the yield on such investments cannot be relied upon as a guide to the future performance of such investments. The presentation may contain forward-looking statements. These statements relate to the future prospects, developments and business strategies of the Company. Forward-looking statements are identified by the use of such terms as "believe", "could", "envisage", "estimate", "potential", "intend", "may", "plan", "will" or variations or similar expressions, or the negative thereof. Any forward-looking statements contained in the presentation are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. If one or more of these risks or uncertainties materialise, or if underlying assumptions prove incorrect, the Company's actual results may vary materially from those expected, estimated or projected. Any forward-looking statements speak only as at the date of the presentation. Except to the extent required by applicable law or regulation, including the rules made by the AIM Rules of the London Stock Exchange, the Company undertakes no obligation to publicly release any update or revisions to any forward-looking statements contained in the presentation to reflect any change in events, conditions or circumstances on which any such statements are based after the time they are made. This presentation contains non-GAAP/non-IFRS financial information which the Company's management believes is valuable in understanding the performance of the Company. However, such non-GAAP/non-IFRS information is not uniformly defined by all companies and therefore it may not be comparable with similarly titled measures disclosed by other companies, including those in the Company's industry. Although these measures are important in the assessment and management of the Company's business, they should not be viewed in isolation or as replacements for, but rather as complementary to, the comparable GAAP/IFRS measures. No reliance may be placed, for any purposes whatsoever, on the information contained in this presentation or on its completeness. No representation or warranty, express or implied, is given by or on behalf of the Company, or any of its respective directors, partners, officers, employees, advisers or any other persons as to the accuracy, fairness or sufficiency of the information or opinions contained in this presentation and none of the information contained in this presentation has been independently verified by any person. Save in the case of fraud, no liability is accepted for any errors, omissions or inaccuracies in such information or opinions. Neither this presentation nor any copy of it may be (i) taken or transmitted into the United States of America, (ii) distributed, directly or indirectly, in the United States of America or to any US person (within the meaning of regulations made under the Securities Act 1933, as amended), (iii) taken or transmitted into or distributed in Canada, Australia, the Republic of Ireland or the Republic of South Africa or to any resident thereof, or (iv) taken or transmitted into or distributed in Japan or to any resident thereof. Any failure to comply with these restrictions may constitute a violation of the securities laws or the laws of any such jurisdiction. The distribution of this document in other jurisdictions may be restricted by law and the persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. 18