Pesquera Exalmar Saa · BVL:EXALMC1
Pesquera Exalmar Saa — Investor Presentation (March 2018)
32 slides from Pesquera Exalmar Saa's investor presentation, March 2018
Slide 1: Peru: Sustainable Future
PERU: SUSTAINABLE. FUTURE at — —— . = — = = ——. =. a = = ee a = = a Y - ~ a Se = = ~ = a = — ~ =~ ~=S => ~~ x Pesquera _ EXALMAR
Slide 2: Peruvian Sea
PERU: SUSTAINABLE FUTURE PERUVIAN SEA EL NIÑO Peru: unique geographic CURRENT aspects, biodiversity of the Hot waters Peruvian sea with plenty of marine resources. HUMBOLDT CURRENT Cold waters NORTH- CENTER AREA SOUTH AREA 2
Slide 3: Peruvian Anchovy
PERU: SUSTAINABLE FUTURE PERUVIAN SCIENTIFIC NAME: ANCHOVY Engraulis ringens ONLY NOT A MIGRATORY AUTHORIZED FISH. TWO RESOURCE FOR POPULATIONS: FISHMEAL AND CENTER- NORTH FISH OIL STOCK AND SOUTH STOCK Peruvian anchovy has significant advantages over other species. CLOSE SHORT SHORT EXTENSIVE PRESE
Slide 4: Peruvian Fishing Industry
PERU: SUSTAINABLE FUTURE PERUVIAN FISHING INDUSTRY Traditional exports (US$) Non traditional exports (US$) MINING 82% FISHING 9% AGRICULTURE OIL 10% 44% FISHING 5% TEXTIL 11% AGRICULTURE 3% CHEMICAL 12% OTHERS 24% Source: BCRP, INEI. Data 2017. 4
Slide 5: Peruvian Fishing Industry
PERU: SUSTAINABLE FUTURE PERUVIAN FISHING INDUSTRY GDP: principal economic activities 2017 % 8.0 8.0% 6.0 4.7% 4.0 SOURCE OF EMPLOYMENT AND 4.1% ECONOMIC AND SOCIAL WELFARE 3.2% FOR THE POPULATION. 2.9% 2.6% 2.0 GDP 2017: FISHING GDP 2017 2.5% 4.7% 0.0 TELECOM FISHING PUBLIC MINING TRANSPORT AGRICUL
Slide 6: Responsibility for the Preservation of Marine Resources
2 WE WORK FOR A SUSTAINABLE FUTURE BY ACTING WITH RESPONSIBILITY FOR THE PRESERVATION OF MARINE RESOURCES
Slide 7: Well-Managed Sustainable Fishery
PERU: SUSTAINABLE FUTURE WELL- MANAGED SUSTAINABLE FISHERY WELL- MANAGED THE ANCHOVY FISHERY OECD AND ECLAC SAY WORLD BANK HAS BY THE MINISTRY OF IS RECOGNIZED AS ONE THE ESTABLISHMENT SHOWN PERU AS PRODUCTION AND THE OF THE BEST MANAGED OF INDIVIDUAL QUOTAS AN EXAMPLE OF CIENTIFIC RESEARCH IN THE W
Slide 8: Well-Managed Sustainable Fishery
PERU: SUSTAINABLE FUTURE WELL- MANAGED SUSTAINABLE FISHERY BEFORE - GLOBAL SINCE 2009 - ITQ QUOTA SYSTEM SYSTEM: ITQ LEADS THE (“OLYMPIC RACE”): INDUSTRY TO FOCUS • Competition between participants. • • Individual quota assigned by vessel. Overall fleet reduction (1,200 to 500). ON QUALITY AND • Foc
Slide 9: Well-Managed Sustainable Fishery
PERU: SUSTAINABLE FUTURE WELL- MANAGED SUSTAINABLE FISHERY • Satellite tracking system. • Fisheries monitoring and control program. THE Reliable ANCHOVY scientific basis for • Protection of juveniles. the adoption of • Temporary closure of fishing areas. IS, PERHAPS, measures for its THE BEST • Proh
Slide 10: Stable Biomass
PERU: SUSTAINABLE FUTURE STABLE BIOMASS AVERAGE BIOMASS (THOUSAND MT) Thousand MT 2008- 2017: 9,103 12,000 High volumes 10,000 of biomass for Indirect Human 8,000 Consumption. 6,000 4,000 2,000 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 LANDINGS BIOMASS OF ANCHOVY AVERAGE BIOMASS Source: IN
Slide 11: Climatic Impact
PERU: SUSTAINABLE FUTURE CLIMATIC Lower quotas and effective catch are associated, IMPACT mainly with El Nino. Thousand MT 4,000 100% 98% 3,500 100% 100% 100% 3,000 97% 85% 98% 97% 2,500 99% 99% 80% 71% 100% 99% 97% 98% 2,000 66% 51% 1,500 46% 98% 1,000 32% 90% 500 0 2006 2006 2007 2007 2008 2008 20
Slide 12: El Niño
PERU: SUSTAINABLE FUTURE EL NIÑO The companies of the industry are prepared to face uncertain climatic conditions through appropriate financial structures. SST Anomalies 3.0 2.5 Niño 1982-1983 Niño 1997-1998 2.0 1.5 Niño 2014-2016 1.0 0.5 0.0 -0.5 -1.0 -1.5 1982 1983 1984 1985 1986 1987 1988 1989 19
Slide 13: Excellence in the Development of Marine Products
3 WE WORK FOR A SUSTAINABLE FUTURE BY ACTING WITH EXCELLENCE IN THE DEVELOPMENT OF MARINE PRODUCTS WITH HIGH PROTEIN
Slide 14: Leading Producer & Exporter
PERU: SUSTAINABLE FUTURE LEADING PRODUCER & EXPORTER FISHMEAL: FISH OIL Contains between 65% and Growing awareness of the health 70% of high quality protein, benefits of a diet with Omega 3 rich in Omega 3. and Omega 6. Strategic component Advantages of its utilization Health benefits EPA and DHA Es
Slide 15: Leading Producer & Exporter
PERU: SUSTAINABLE FUTURE LEADING PRODUCER Word fishmeal Word fishmeal production* exports* & EXPORTER ■ PERU 17% ■ PERU 31% PERU ■ CHINA 11% PERU Leading ■ CHILE 8% producer and exporter of 17% ■ THAILAND10% ■ CHILE 8% 31% ■ DENMARK 7% ■ GERMANY 6% fishmeal and ■ OTHERS 54% ■ OTHERS 48% fish oil. Us
Slide 16: Strategic Role of Fishmeal and Fish Oil
PERU: SUSTAINABLE FUTURE STRATEGIC ROLE Salmon feed formula evolution OF FISHMEAL 69% 31% 10% AND FISH OIL 12% 53% 69% ■ FISHMEAL AND FISH OIL ■ PLANT INGREDIENTS ■ NOVEL INGREDIENTS 10% 19% 16% 11% ■ OTHERS 1990’s Today Future? STRATEGIC INGREDIENT BENEFITS THAT MAKE IT INCREASING APPETITE FOR FISH
Slide 17: Perseverance and Agility to Adapt Ourselves
4 WE WORK FOR A SUSTAINABLE FUTURE BY ACTING WITH PERSEVERANCE AND AGILITY TO ADAPT OURSELVES TO THE CHALLENGES PROPER OF THE FISHING SECTOR
Slide 18: Indirect Human Consumption
PERU: SUSTAINABLE FUTURE INDIRECT Fishmeal markets Fish oil markets HUMAN CONSUMPTION ■ CHINA 72% ■ DENMARK 31% ■ GERMANY 10% ■ BELGIUM 18% CHINA DENMARK 72% 31% ■ VIETNAM 4% ■ CANADA 11% ■ JAPAN 3% ■ CHILE 10% ■ CHILE 3% ■ CHINA 8% ■ OTHERS 8% ■ OTHERS 22% Thousand MT 1.2 1.0 1.00 0.8 0.53 0.85 0.7
Slide 19: Indirect Human Consumption
PERU: SUSTAINABLE FUTURE US$/ MT INDIRECT HUMAN 3,000 CONSUMPTION 2,500 AVERAGE FISHMEAL PRICE 2,000 (2013-2017): US$ 1,573 / MT 1,500 1,000 Average sale price of fishmeal around 500 US$ 1,573. 0 1T2013 2T2103 1T2014 1T2015 2T2015 1T2016 2T2016 1T2017 FISHMEAL FISH OIL AVERAGE FISHMEAL PRICE 2013 20
Slide 20: Indirect Human Consumption
PERU: SUSTAINABLE FUTURE INDIRECT HUMAN CONSUMPTION 2016 2017 THOUSAND MT 2ND SEASON 1ST SEASON 2ND SEASON 1ST SEASON TOTAL TOTAL 2015 2016 2016 2017 Global Quota 1,110 1,800 2,910 2,000 2,800 4,800 Effective catch 1,084 914 1,998 1,954 2,372 4,326 Effective catch/ Quota 97.6% 50.8% 68.6% 97.7% 84.7
Slide 21: Indirect Human Consumption
PERU: SUSTAINABLE FUTURE INDIRECT HUMAN CONSUMPTION Exalmar: third largest producer of fishmeal and fish oil. North-Center Quota % of Total Processed COMPANY 2nd SEASON COMPANY 1st SEASON 2nd SEASON 2017 2017 2017 COPEINCA / CFG 16.9% TASA 25.3% 24.1% The ability to buy third party TASA 14.2% COPEIN
Slide 22: Second Fishing Season 2017
PERU: SUSTAINABLE FUTURE SECOND FISHING SEASON 2017 THOUSAND MT 2016 2017 1ST SEASON 2ND SEASON 1ST SEASON 2ND SEASON The industry reached a Quota 1,800 2,000 2,800 1,490 catch of 47%, due to the Effective catch 914 1,954 2,372 688 delay on the beginning Effective catch/ Quota 51% 98% 86% 47% of the
Slide 23: Second Fishing Season 2017
PERU: SUSTAINABLE FUTURE SECOND FISHING SEASON 2017 ANCHOVY UNITS (BILLION) Juveniles: 96% Biomass 500 44% (november 2017): 400 6.06 million MT. 300 31% 200 7.6% 100 6.8% 8.8% On April 2018, 0 1.7% a high percentage of juveniles will be adults. Juveniles: 67% 1.0 40.2% BIOMASS (MILLION MT) 0.8 0.6 H
Slide 24: Transparency and Corporate Governance Practices
5 WE WORK FOR A SUSTAINABLE FUTURE BY ACTING WITH TRANSPARENCY AND CORPORATE GOVERNANCE PRACTICES
Slide 25: Pesquera Exalmar S.A.A.
PERU: SUSTAINABLE FUTURE PESQUERA EXALMAR S.A.A. A clear vision for a sustainable growth. FROZEN FISH PLANT 108 MT / Day PAITA 25 YEARS IN THE INDUSTRY. FISHMEAL PLANT 10 MT / Hour Paita Port PLANTS STRATEGICALLY LOCATED: FISHMEAL PLANT 60 MT / Hour CHICAMA 6 PROCESSING PLANTS, 2 FREEZING Chicama Po
Slide 26: Revenues Composition
PERU: SUSTAINABLE FUTURE REVENUES Total revenues increased (87%), due COMPOSITION to higher initial stocks and an increase of the effective catch on the first season 2017. MM US$ 101% 75% 81% 206 103 70% 24% ■ FISHMEAL ■ FISH OIL 11% ■ 2016 10% ■ OTHERS 14% ■ 2017 9% ■ DHC FISHMEAL FISH OIL DHC 2016
Slide 27: EBITDA
PERU: SUSTAINABLE FUTURE EBITDA Million USD As at December 31th, 70 2017, EBITDA is 66 USD 48 million, 124% 60 61 48 57 50 higher than 2016 40 42 38 30 20 21 10 0 2011 2012 2013 2014 2015 2016 2017 27
Slide 28: Corporate Governance
PERU: SUSTAINABLE FUTURE CORPORATE GOVERNANCE CORPORATE GOVERNANCE COMMITTEE A clear vision for a transparent communication with our stakeholders. AUDIT NOMINATION AND COMMITTEE REMUNERATION BOARD COMMITTEE • Recognized by the Lima Stock Exchange as one of 2 dependent and the companies with highest
Slide 29: Commitment and Respect to the Needs of Our Family
6 WE WORK FOR A SUSTAINABLE FUTURE BY ACTING WITH COMMITMENT AND RESPECT TO THE NEEDS OF OUR FAMILY EXALMAR AND ALL OUR STAKEHOLDERS
Slide 30: The Future
PERU: SUSTAINABLE FUTURE THE FUTURE WE LOOK TO THE FUTURE WITH OPTIMISM THE PRESENCE OF JUVENILES IS VERY THIS IS PROMISING FOR ENCOURAGING POSITIVE BECAUSE FUTURE FISHING SEASONS OUTLOOK FOR 2018, IT REFLECTS THAT, AND GUARANTEES A SINCE AN IMPORTANT DESPITE THE HARSH HEALTHY BIOMASS ADULT BIOMASS
Slide 31: We Work for a Sustainable Future
PERU: SUSTAINABLE FUTURE WE WORK FOR A SUSTAINABLE FUTURE We work for a sustainable future, acting with… EXCELLENCE IN THE RESPONSIBILITY FOR THE TRANSPARENCY AND COMMITMENT AND PERSEVERANCE AND DEVELOPMENT OF MARINE PRESERVATION OF MARINE CORPORATE GOVERNANCE RESPECT TO THE NEEDS OF AGILITY TO ADAP
Slide 32: www.exalmar.com.pe
www. exalmar. com. pe Phone (+511) 441 4420 Address Víctor Andrés Belaunde 214. San Isidro. Lima, Perú.
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