Pesquera Exalmar Saa · BVL:EXALMC1
Pesquera Exalmar Saa — Q3 2016 Earnings Presentation
34 slides from Pesquera Exalmar Saa's earnings presentation, January 2017
Slide 1: Corporate Presentation 3Q2016
3Q2014 Financial PESQUERAResults EXALMAR S.A.A. Corporate Presentation 3Q2016
Slide 2: Fishing Industry
Fishing Industry
Slide 3: Peru: Peruvian Sea
Peru: Peruvian Sea Peru: unique geographic aspects, biodiversity of the Peruvian sea with plenty of marine resources. El Niño Current (hot waters) Unique geographic aspects: Convergence of “Humboldt” and “El Niño” currents. Length of the coast with Humboldt more than 3,000 km. Current (cold waters)
Slide 4: Peru: Peruvian Anchovy
Peru: Peruvian Anchovy Peruvian anchovy has significant advantages over other species. Only authorized resource for fishmeal and Scien�fic fish oil. Not a name: migratory Engraulis fish. ringens. Close Extensive presence to the coast. shoals. Short development and reproduc�on cycle. 4
Slide 5: Peru: Biomass and Landings
Peru: Biomass and Landings High volumes of biomass and landings for Indirect Human Consumption. Average biomass (thousand MT) 1998- 2008: 8,354 Thousand MT 2009-2014: 8,837 14,000 12,000 +6 % 10,000 8,000 6,000 4,000 2,000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Slide 6: Peru: Leading Producer & Exporter
Peru: Leading Producer & Exporter Leading producer and exporter of fishmeal and fish oil. World fishmeal production (1) World fishmeal exports (1) Perú Peru 21% China 35% Chile 44% 51% 10% Thailand Germany Chile Denmark 9% 9% Others Others 9% 6% 6% Use of fishmeal 6% 22% Poultry 48% 50% Swine Aquacu
Slide 7: Peru- Leading Producer & Exporter
Peru- Leading Producer & Exporter Limited supply and increasing demand has led to a gradual increase in fishmeal and fish oil prices. Fishmeal and Fish Oil average prices US$ / MT 2,500 Fishmeal (Standard) Fishmeal (Superprime) 2,000 Fish Oil 1,500 1,000 500 0 2001 2002 2003 2004 2005 2006 2007 2008
Slide 8: Peru- Leading Producer & Exporter
Peru- Leading Producer & Exporter New strategic role of fishmeal and fish oil. Salmon feed formula evolution Strategic ingredient increasing appetite for fish 10% 6% Fishmeal and 31% and improving health. fish oil 69% Plant ingredients 53% 69% Benefits that make it irreplaceable. Soy bean Novel meal
Slide 9: Peru- Individual Fishing Quotas
Peru- Individual Fishing Quotas ITQ leads the industry to focus on quality and efficient usage of fleet and plants. Before - Global Quota System Since 2009- ITQ System: (”Olympic Race”): Individual quota assigned by vessel. Competition between participants. Overall fleet reduction (1,200 to 500). Fo
Slide 10: Pesquera Exalmar S.A.A.
Pesquera Exalmar S.A.A. 1992 - 1997 1997 - 2000 2000 - 2008 2009 2010 2011 - 2013 2014 - 2016 Investments: Phenomenon Strategic Financial ITQ system IPO and Quota Direct Human Phenomenon Plants and Vessels El Niño Decisions Acquisition Consumption El Niño Acquisition of New plants: 2004: Fix costs r
Slide 11: Pesquera Exalmar S.A.A.
Pesquera Exalmar S.A.A. A clear vision for a sustainable growth. More than 35 years in the industry. Plants strategically located: 6 processing FROZEN FISH PLANT 108 MT/ Day plants, 2 freezing plants and 1 unloading line. FISHMEAL PLANT 10 MT/ Hour Paita FISHMEAL PLANT 100 MT/ Hour Diversification i
Slide 12: Indirect Human Consumption
Indirect Human Consumption FISHMEAL: FISH OIL: Contains between 65% and 70% of high Growing awareness of the health benefits quality protein, rich in Omega 3. of a diet with Omega 3 and Omega 6. Advantages of its Strategic component Health benefits EPA and DHA utilization Essential in the Energy and
Slide 13: Indirect Human Consumption
Indirect Human Consumption Exalmar: fourth largest producer of fishmeal and fish oil. North - Center Quota % of Total Processed Company 1st season 2016 Company 2nd season 2015 1st season 2016 1 16.9% 1 23.0% 27.2% 2 14.2% 2 21.6% 20.0% 3 8.5% 3 11.9% 12.1% 4 6.8% 4 12.7% 11.1% 5 6.7% 5 11.0% 10.6% 6
Slide 14: North-Center Quota
North-Center Quota As at December 2015 As at December 2016 Thousand MT 2nd season 1st season Total 2nd season 1st season Total 2014 2015 2015 2016 Global Quota 2,580 2,580 1,110 1,800 2,910 Effective catch 2,508 2,508 1,084 914 1,998 Effective catch/ Quota 97.2% 97.2% 97.6% 50.8% 68.6% Exalmar’s 100
Slide 15: Indirect Human Consumption
Indirect Human Consumption Fishmeal exports (1) Fish oil exports (1) 6% 6% 6% China 7% Denmark 6% 6% Germany Chile Chile 17% Belgium 15% 50% Indonesia Canada 67% Others Others 20% Historical processing (North - Center) Thousand MT Own catch 622 523 Third parties 466 45% 397 418 45% 364 45% 39% 264 4
Slide 16: Direct Human Consumption
Direct Human Consumption A clear vision for a management based on our ability to adapt and innovate. Mackerel Jack Mackerel Giant Squid Jack Mackerel Mahi Mahi Scallops Seafood mix Development of new products. Diversification with added value. Extension of relationship with independent fishermen. 16
Slide 17: Direct Human Consumption
Direct Human Consumption Exports to 16 countries worldwide. 1.Canada GIANT SQUID 16 2.United States 1 SQUID SCALLOPS 9 11 GIANT SQUID SEAFOOD MIXTURE 10 12 2 14 ANCHOVY GIANT SQUID BREADED BURGER 15 MAHI MAHI GIANT SQUID BURGER 3 SILVERSMELTS GIANT SQUID NUGGETS 4 13 5 3.Mexico 4.Antilles 8 MAHI MAH
Slide 18: Tambo de Mora Plant
Tambo de Mora Plant Mackerel and Jack Mackerel Thousand MT 2011 2012 2013 2014 2015 2016(1) Global Quota 240 160 106 152 140 207 Effective catch 233.7 112.3 60.3 89.7 1.1 74.3 Exalmar’s catch 9.3 6.8 3.9 7.8 0.1 9.1 Exalmar’s 4.0% 6.0% 6.5% 8.7% 12.3% 12.3% participation Total Tambo de Mora Plant Pr
Slide 19: Vision and strategic goals
Vision and strategic goals Over 40 years growing, with a clear vision for a sustainable growth. To be recognized by our stakeholders as a sustainable company, supplier of the best products with high protein value. A clear vision for… a commitment to the a management based on a transparent and commit
Slide 20: Financial Performance
Rel EXALMAR Financial Performance
Slide 21: P&L Composition
P&L Composition As at 3Q15 As at 3Q16 MM US$ 2014 2015 IHC DHC TOTAL IHC DHC TOTAL Revenues 220.9 156.2 113.8 17.6 131.4 109.5 11.7 121.3 Gross Profit 56.3 34.6 30.4 -6.7 23.7 23.5 -4.9 18.6 Operating Income 37.4 17.9 22.5 -11.6 10.9 14.4 -8.1 6.3 Pre-Tax Income 18.1 -6.7 7.4 -13.4 -6.1 3.5 -10.2 -6
Slide 22: Revenues Composition
Revenues Composition MM US$ 4% As at 3Q15 As at 3Q16 99 -34% -34% 95 16 10 18 12 Fishmeal Fish Oil DHC Fishmeal Total revenues decreased (-8%), 72% 82% Fish Oil due to lower effective catch on Others the first season 2016. 12% 8% DHC 14% 10% As at 3Q15 As at 3Q16 22
Slide 23: IHC Revenues
IHC Revenues Fishmeal Revenues Fish Oil Revenues As at 3Q15 As at 3Q16 As at 3Q15 As at 3Q16 MT 56,736 62,767 MT 9,464 4,808 US$/ MT 1,676 1,578 US$/ MT 1,671 2,169 Thousand US$ 95,102 99,020 Thousand US$ 15,810 10,429 Average Sale Price and Effective Catch US$/ MT Million MT 4,500 2.51 2.8 2.1 3,00
Slide 24: Stocks & Sales
Stocks & Sales Fishmeal Thousand MT As at 3Q15 As at 3Q16 Var. Begininng stock 7.1 32.1 352% Production 73.0 33.8 Sales 56.7 62.8 11% Reprocessing 0.2 0.4 Ending stock 23.6 3.5 -85% Fish Oil Thousand MT As at 3Q15 As at 3Q16 Var. Begininng stock 0.7 2.2 214% Production 9.8 4.5 Sales 9.5 4.8 -49% Rep
Slide 25: DHC Revenues
DHC Revenues Frozen fish revenues (3Q15) Frozen fish revenues (3Q16) 8% Giant Squid 4% 8% Giant Squid 6% Squid Mahi Mahi Scallops 18% Bonito Mackerel and Jack Mackerel Scallops 71% 81% 67% Others Others MM US$ -34% DHC revenues decreased by 34%: Lower availability of giant squid and mahi mahi. No pr
Slide 26: Cost of Production
Cost of Production As at 3Q15 As at 3Q16 Var. Ban days 159 202 27% Total Processed (1) 324 145 -55% Ban & Own Catch(1) 167 79 -53% Processed Volume Third Party(1) 157 67 -58% Third parties purchase cost (2) 248 287 15% Catch Cost(2) 96 134 39% Cash Catch Cost (2) 88 110 26% Costs Processing Cost (3)
Slide 27: DHC Fixed Costs & Plant Capacity Utilization
DHC Fixed Costs & Plant Capacity Utilization Plant Capacity Utilization 32% DHC (MM US$) As at 3Q16 28% Revenues 11.7 11.7 24% 20% Variable Cost of sales -9.3 -9.3 16% Contribution margin 2.4 2.4 12% 8% Sales expenses -2.1 -2.1 4% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Cost Deprec. Total Paita Tambo
Slide 28: Gross Profit and Margins
Gross Profit and Margins Gross profit (-22%): Lower beginning stocks. Cost of Sales Lower DHC sales (-34%). 63% Cost of Delay on the beginning of 66% nomproduction the first season 2016. Ban Expenses 18% 15% Gross Profit 19% 19% As at 3Q15 As at 3Q16 As at 3Q15 As at 3Q16 20% 18% 17% 15% 8% 5% -2% -
Slide 29: Company Debt
Company Debt Indebtedness Position BONDS: MM US$ As at 3Q15 As at 3Q16 US$ 200. Maturity: 2020. Short-Term Debt (STD) 57.0 40.2 22% 17% September 2016: Tender Offer Reduction to US$ 170 MM. Long-Term Debt 205.3 201.0 Current Portion 2.5 2.5 Non-Current Portion 202.8 198.5 NEW LONG TERM DEBT: 78% 83%
Slide 30: CAPEX
CAPEX IHC Investments: Maintenance work on fishing nets. IHC Plants Environmental requirements. 36% 51% IHC Vessels Fishmeal plants. Administratives DHC Investments: 54% 38% DHC Business Tambo de Mora Plant. 7% 9% Paita Plant. As at 3Q15 As at 3Q16 MM US$ 44 42 28 20 17 17 13 14 15 8 2007 2008 2009
Slide 31: Others
Others
Slide 32: Corporate Governance
Corporate Governance A clear vision for a transparent communication with our stakeholders. Recognized by the Lima Stock Exchange as one of the companies with highest standards in Corporate Governance. Corporate Governance Independent directors and Board Committees. Committee Investor Relations secti
Slide 33: Shareholder's Structure
Shareholder’s Structure EXALMC 1 2015 2016(1) 3% 9% Closing price (S/.) 1.01 1.19 Economic Group Market Cap 17% (MM US$) 87 105 Foreign institutional investors Bancard International Investment Dividend yield 11% - Local investors 71% Exalmar YTD -17% 18% IGBVL YTD -33% 58% 1.5 EXALMC1 (S/.) S&P/BVL
Slide 34: Contact details
T. (511) 441.4420 W. www.exalmar.com.pe D. Av. Víctor Andrés Belaúnde 214, San Isidro, Lima - Perú
Pesquera Exalmar S.A.A. — Q3 2016 Earnings Presentation on 6ix