2012 Annual Report Australis Seafood S.A
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2012 ANNUAL REPORT AUSTRALIS SEAFOOD S.A. ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S Contents 2 1 Anticipation Anticipating events, being visionary and combining the energy of a young company with the experience of those who are part of it, have been the strengths that distinguish us as a company. OMPANY In 2012 we stood out for being the first Chilean Company to secure the Global G.A.P. c Certification. This recognizes our valuable know-how and passion for excellence. O U R ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S WE ARE WELL AWARE OF THE UNiQUE STRENGTHS OF OUR cOMPANY. THESE WiLL ALLOW US TO REcOVER LOST GROUND QUicKLY. Dear shareholders, I am addressing you characterizes this industry, Australis Seafoods among which long chain polyunsaturated to report that in June 2012, Australis of decisions that lead to oversupply. to present Australis Seafoods S.A.’s 2012 was therefore well prepared, and continues fatty acids (omega 3) stand out. The market Seafoods S.A. was recognized as the best In this new phase, the Company and its Balance Sheet and Annual Report. to be well prepared, to face contingencies recognizes these attributes and, despite the salmon producing company by the 2012 management led by the Board, will have the In 2012 the Company faced a big challenge like those faced last year. We have a strong much larger global production in 2012, EVA Ranking prepared by Econsult. This financing required to continue to implement as the aquaculture industry was hit by the business plan that focuses, among other demanded 22% more Atlantic salmon ranking considers the Economic Value its growth strategy and to look for and lowest prices seen in the last six years in aspects, on cost optimization and on (Salar) than in 2011. Added by industry sector and in aggregate develop new business opportunities. response to a close-to-96% increase in taking advantage of the price improvement It was with this vision in mind that we across sectors. At the aggregate level, we I would like to conclude not only by thanking production both in Chile and in Norway. experienced during the last weeks of 2012. announced a capital increase of US$60 were placed number 18 out of 132 local but also encouraging all and each of the Our company was no stranger to this reality It was against the background of declining million last December, at the same time as companies. We are naturally very proud of members of Australis Seafoods Group. The which was duly reflected in this year’s result. prices that the Company’s Board of Directors the majority shareholder announced the full this recognition and remain committed to reputation of our Company, the recognition For the year ended December 31st, 2012, the made the early and well-timed decision to subscription of its proportion of the share work hard and reach new milestones for of its excellence by marketing agents, and Company posted a loss of US$66.1 million, cut the initial production plan by adopting issue, which has been positively received by our shareholders. We have also focused the Company´s appreciation by the market which compares to a profit of US$27.4 a more conservative view in terms of growth the market. Part of this capital increase will on new commercial strategies to add new in general are mainly the result of your hard million in 2011. rates for the coming years. In light of market be used to resume the position that Australis markets and clients in the fastest growing work, dedication and perseverance. I invite As for sales, these recorded a decrease developments observed towards the end of Seafoods achieved in 2011 as one of the destinations, such as Brazil, China and India, you to work harder than ever in the effort of of 26% in relation to the previous year, last year, we are convinced that this was the leaders in the production of salmonids in and to improve the logistics and processing promoting this project, one that has already totaling US$121.8 million. This decrease is right decision. the world. of our production. An important milestone proven itself ready for big challenges. You Federico Rodríguez Marty explained by an almost 30% fall in prices, Moreover, and despite possible price We are therefore well aware of the unique for Australis in this context has been the are a key part of this aspiration. partly compensated by higher sales volumes fluctuations in the markets that are attractive strengths of our Company. These will allow negotiation and recent acquisition of our that increased from 28.457 tons in 2011 to for Chilean salmon, we continue to be us to recover lost ground quickly. We not first processing plant on March 28th, 2013. 32.026 tons in 2012. In turn, costs of sales optimistic about the fundamentals of our only have the necessary infrastructure and The Fitz Roy plant will process initially up reached US$156.9 million, 38% above the industry. The world’s population increasingly well established know know-how from to 40,000 tons and incorporate more than 2011 level. consumes proteins on a consistent basis and the beginning of the productive cycle to 230 employees, all of whom we welcome Almost two years ago, when our Company demand for salmonids increases at an annual marketing in key international markets, warmly to the Australis team. started the process of going public, we compound growth rate of approximately but also an expert professional team of the At the end of 2012 there were clear signs of stressed the values that characterize us and 6%. highest caliber to continue developing the improvement in the price of our products which are part of our business philosophy: In addition, salmon has distinct features Australis project, all of which has been duly and we are certain that this upward trend will Federico Rodríguez Marty transparency, vision, anticipation and among animal proteins: it is a natural source recognized by the market. continue in a scenario where the industry´s Chairman of the Board of Directors agility. Well aware of the cyclical nature that of vitamins, proteins and other nutrients, Fully consistent with this view, I am pleased players have come to appreciate the impact Australis Seafoods S.A. OUR COMPANY 4 5 ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S 2012 Milestones First Chilean company to Sound growth plan New Chairman and CEO obtain the Global G.A.P. decision At the beginning of 2013 Mr. Rodrigo Certification We anticipated the severe fall in prices in Arriagada Astrosa was appointed the new CEO of the Company. He resigned as In March 2012, we obtained the Global 2012 caused by excess production in Chi- chairman of the Company to make way for G.A.P. certification, recognized by the Glo- le and globally, announcing moderation in Mr. Federico Rodríguez Marty. They both bal Food Safety Initiative (GFSI), which the Company´s planting and harvesting contribute to our experienced team by certifies our good practices in the elabora- growth rates. continuing the work of the previous ma- tion of our products and strict compliance nagement. with international standards. This makes Capital increase us the first Chilean company to obtain this Due to the uncertainty in the industry and certification for all its productive facilities, 2012 EVA Ranking best in anticipation of lower prices and higher and the local company with the largest vo- salmon farm production costs - and their impact on cash lume of certified biomass in the three spe- flows - we announced a capital increase of We were recognized as the best salmon cies of salmon (Atlantic, Pacific and Trout). US$60 million for 2013. The controlling farm in the 2012 version of EVA Ranking shareholder confirmed the subscription of prepared by Econsult. The ranking con- its share of such amount, which has been siders the Economic Value Added by in- received positively by the market. dustry sector and at a general level. The Company ranked number 18 out of 132 companies Rodrigo Arriagada Astrosa OUR COMPANY 6 7 ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S company information Ownership and control of the company Basic Information Total number of shareholders: 77 Corporate Name: Australis Seafoods S.A. (ASF) Main Shareholders: Asesorías e Inversiones Benjamín S.A. RUT*: 76003557-2 Address: Cerro El Plomo 5680, Office 403 Fondo de Inversión Privado Australis, represented by Las Condes, Santiago, Chile. Administradora de Inversiones Tamarindo S.A. Kind of company: Publicly Held Corporation Incorporation Documents 12 mAIn shAReholDeRs As of DeCembeR 31, 2012 Public deed N° Name or Corporate Name RUT Shares % City: Santiago Date: October 31, 2007 1 Fondo de Inversión Privado Australis 76.123.347-5 1,101,077,936 78.48 Notary Public: Iván Torrealba Acevedo 2 Asesorías e Inversiones Benjamín S.A. 79.744.960-1 106,924,508 7.62 3 Fondo de Inversión Larraín Vial Beagle 96.955.500-k 54,950,856 3.92 Legalization 4 Larraín Vial S.A. Corredora de Bolsa 80.537.000-9 43,331,873 3.09 Publication in the Official Gazette Date: November 21, 2007 Registration before in the Commercial Record 5 AFP Hábitat S.A. for Fondo Pensión C 98.000.100 16,043,158 1.14 Page: 48.775 Number: 34.583 6 Compass Small Cap Chile Fondo de Inversión 96.804.330-7 11,491,470 0.82 Year: 2007 7 MBI Corredores de Bolsa SA 96.921.130-0 10,473,656 0.75 Date: November 16, 2007 8 AFP Hábitat S.A.