by Constantin Yannios CEO of
1.Fishconsump.oninEU/Greece
FishU.liza.onandSupply160(millionstonnes) Greece
kg/Capita~18,5Europe
~22kg/Capita
0
2
4
6
8
10
12
14
16
18
20
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 20140
20
40
60
80
100
120
140
160
180
MILLIONTONNES
WORLD FISH UTILIZATION AND SUPPLY
FishU.liza.on(milliontonnes)
Kg/capita
2.Percapitafishconsump.on
3.ValuesoffarmedspeciesinthemainEUproducercountriesin2015and%varia.on2015/2014Source:EUMOFAelabora2onofEUROSTAT,Na2onalsources,FEAPandFAOdata
4.EUproduc.ondetails(quotaevolu.on)Source:EUMOFAelabora2onofEUROSTAT,Na2onalsources,FEAPandFAO
data(totalproduc2ontofooduse)
5.IsFishfarmingabusinessOpportunity?
6.InvestmentCapital
• Isdependontheidealsizeofthefarm• OwnCapitalmustbehigherthan25%byloaninterestrate≤5%
• IfinterestrateishigherthantheOwnCapitalmustbealsohigher
• ImportantparameteristheInvestmentSubsidyfromtheState
• Self-Financing≥30%ofWorkingCapital
7.MainProduc.onCosts
• Feed≈1,1€/kg• Juveniles≈0,20€/smallfish
• Fortheproduc.onof1kgfishtosaleisrequired≈2kgofFeedandmorethan3smallfishes(sizeclassSandA)
8.Targetedproduc.oncostsconfigura.onin%oftotalcost
9.Salepricesofproducts
Source:EUMOFAelabora2onofEUROSTATandNa2onalsourcesdata
10.TargetedOpera.ngResultsin%
65%
34%
3,5% 4%2,5%
CostofSales
GrossProfit
Administra.onExpences
Distribuc.onExpences
WorkingCapitalInterestcost
11.FeasibilityStudyResults
• GrossProfitcanbe!than25%• WhenDistribu.onCost≤4%onSales
• WhenAdministra.onCost≤4%onSales
• EBITDAcanbe!than15%
• IRRcanbe!than20%
• PayBackPeriodcouldbelessthan10years
12.ProjectAquacultureInvestment1,066million€,700tonsproduc.on
13.Opera.ngResultsin%Sales3,5million€priceperkg5€
14.FeasibilityStudyResults
• GrossProfit28%• EBITDA21%• IRR44%• Ifthesalespriceperkgis4,5€• GrossProfit20%• EBITDA13%• IRR9%
15.ProjectAquaculturewithPackagingUnitInvestment2,4mil.€prod.≈2.000tn
16.Opera.ngResultsin%Sales10million€priceperkg5€
17.FeasibilityStudyResults
• GrossProfit20%• EBITDA15%• IRR30%• Ifthesalespriceperkgis4,8€• GrossProfit17%• EBITDA11%• IRR9%
18.HatcheryFarmInvestment2,8mil.€,prod.27millionsJuveniles
19.HatcheryFarmopera.oncostin%andcost/juveniles10-12cent
0%5%
10%15%20%25%30%35%40%
30%
5% 6% 7% 10%3%
20%
40%
8% 8% 9%18%
7%
30%
81%
120%
20.FeasibilityStudyResultshatcheryfarmsaleprice20cent/juveniles
• GrossProfit60%• EBITDA52%• IRR86%• Ifthesalepriceperjuvenilesis15cent• GrossProfit49%• EBITDA37%• IRR36%
21.EconomicsustainabilityintheAquacultureindustry
MostcommoncausesoffailureLackofcapitalinthefirstyears’opera.onalphases.
Prospec.veinvestorsareadvisedtouseconserva.veprojec.onsBepreparedtoinjectcashintotheactualaquacultureopera.onsforatleastthefirstyear
22.EconomicsustainabilityintheAquacultureindustry
• Dependingonthetypeofspeciesanddetailsoftheexpansionplancashreservesshouldbesetaside
• Cashreservesareneededalsoforunexpectedevents(disease,seasonalcontrac.onsinwholesaleprices,earlyyearexpansionplans,unan.cipateddelaysinfullpaymentofaccountsreceivable,etc.)
23.EconomicsustainabilityintheAquacultureindustry
• Neverputtheprojectoryourinvestmentinjeopardybyhavinginsufficientcashtofeedthefish,make.melyloanpayments,andpaythecompany’semployees.
• Thesearethelifebloodoftheopera.on
24.MaximizeReturnsintheAquacultureindustry
• Thegreatestreturnsoninvestmentareachieved
bymaximizingeconomiesofscalesuchas:by
inves.nginresearchanddevelopment,
hatcheries,aquaculturefeeds,grow out
operations,processingplantopera.ons,seafood
sales,marke.nganddistribu.on
25.MaximizeReturnsintheAquacultureindustry
• Investmentinfullyintegratedaquacultureopera.onarenotinsignificantandcaneasilyexceed40million€
• Mostqualifiedinvestorsstartwithmuchsmallerandmoreconserva.veinvestmentsandini.allyfocusononepar.cularsegmentoftheindustry
• Theexpertadvisetheclientstoconsiderinvestmentofnolessthen1million€inneworexis.ngprojects
THANKYOUFORYOURATTENTION!
Constan.nYannios