SALMONES CAMANCHACA S.A. Salmones Camanchaca - Q3 2020 results Highlights: o Financial performance impacted by lowest price in several years, affected by pandemic on markets. o Strong operational performance, with ex cage live fish cost down from previous quarters and total processing cost well below long-term goal. Total cost of product atUSD 4.15 /Kg WFE, 2% below long-term target. oAtlantic harvest volumes down 17% from Q3 2019 to 13,368 tons WFE. o Operating revenues were down 29% due to an 8% reduction in sales volumes and a 24% drop in prices.Santiago ,Thursday November 12, 2020 :Salmones Camanchaca reports a 17% decrease in the harvest volume in the third quarter of 2020 compared to the corresponding period of 2019, reaching a total volume of 13,368 tons WFE during the period. Operating revenue amounted toUSD 55 million during the quarter, down 28% fromUSD 76.5 million in Q3 2019. The decrease is due to an 8% lower sales volume, combined with a 24 drop in prices forAtlantic salmon.Atlantic salmon live fish (ex-cage) costs wereUSD 3.06 during the quarter, down fromUSD 3.32 /kg in Q2 2020, and in line with the long-term target ofUSD 3 /kg. Total processing costs wasUSD 0.86 /kg during the quarter, significantly below the long-term goal ofUSD 1 /kg WFE. This favorable cost condition was possible despite a 17% reduction in processed volume, and a higher proportion of value-added products. EBITDA or the quarter ended at negativeUSD 3.7 million , a reduction ofUSD 24.1 from Q3 2019, mainly due to the combination of lower prices and sales volume. In addition, costs related to operating inactive farms to avoid expiration and fallowing period, addedUSD 4.7 million to operational costs during this quarter. Operational EBIT before fair value adjustments in Q3 2020 was negative atUSD 7.6 million , compared with positiveUSD 16.4 million lower in Q3 2019. Commenting on the performance ofSalmones Camanchaca , vice chairman Ricardo García, said: "While our operational performance was good and better than our long term targets, and marketing strategies were as we planned, our financial performance was poor but attributed almost entirely to the pandemic effect on demand and consequently on prices. More supply to key markets such as the US andBrazil , in line with continued exclusion fromRussia of several producers, and significant demand depression inChina , limited our market access. These market restrictions and dynamics forced Chilean producers to sell in fewer markets. ForSalmones Camanchaca , 80% of our Q3 sales stems from the US,Mexico andJapan , in value added formats. A weaken demand and an increase in supply in these fewer markets severely impacted prices." García added: "Despite the weak market conditions, our underlying operational performance is good. With both farming and processing costs in line or below our long term targets, and the continuous utilization of our processing flexibility to optimize product offerings, we are in good condition to pursue our ambition of resource efficient growth, and benefit as soon as markets recover in what I expect to be early 2021." For more information please contact: Ricardo García, Vice chairman, +56 2 2873 2992 / rgarcia@camanchaca.clMarta Rojo , Head of IR, +56 2 2873 2987 / marta.rojo@camanchaca.cl AboutSalmones Camanchaca Salmones Camanchaca S.A. is a vertically and fully integrated salmon producer with operations in farming, processing, marketing and sale of salmonids. The company is also involved in farming of trout through a joint venture (1/3 share) and has an estimate harvest of around 55,000 tons WFE ofAtlantic salmon for 2019-2021. Therefore, including trout production in the Company's farming sites, the total existing production capacity reaches 70-75,000 harvested tons WFE. The company has approximately 1,800 employees. This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.
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