3Q2014 Financial Results

Transcription

1 3Q2014 Financial Results PESQUERA EXALMAR S.A.A. Corporate Presentation 3Q2016

2 Fishing Industry

3 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 more than 3,000 km. Humboldt Current (cold waters) North-Center area South area 3

4 Peru: Peruvian Anchovy Peruvian anchovy has significant advantages over other species. Scien fic name: Engraulis ringens. Only authorized resource for fishmeal and fish oil. Not a migratory fish. Close presence to the coast. Short development and reproduc on cycle. Extensive shoals. 4

5 Peru: Biomass and Landings High volumes of biomass and landings for Indirect Human Consumption. 14,000 12,000 10,000 8,000 Thousand MT Average biomass (thousand MT) : 8, : 8, % 6,000 4,000 2, Landings Biomass of anchovy Average biomass Source: INEI. 5

6 5 Peru: Leading Producer & Exporter Leading producer and exporter of fishmeal and fish oil. World fishmeal production (1) World fishmeal exports (1) 51% 21% 10% Perú China Thailand 44% 35% Peru Chile Germany 9% 9% Chile Others 6% 6% 9% Denmark Others Use of fishmeal 48% 50% 6% 22% Poultry Swine 50% 36% 10% 70% Aquaculture Others (1)Average The category Others considers 25 countries. Source: IFFO

7 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, Price depends on annual volume of anchovy fishing quota and quality of fishmeal. Increase of fishmeal prices due to increasing demand, flat supply and low grade of substitution. Increase of fish oil prices due to high content of Omega 3. 7 Source: IFFO.

8 5 Peru- Leading Producer & Exporter New strategic role of fishmeal and fish oil. Strategic ingredient increasing appetite for fish and improving health. Benefits that make it irreplaceable. Soy bean meal and vegetable oil are no longer true substitute products. Expectation is that the inclusion in the formula could represent 10% in the future. Market rationalization: strategic role in the future formula. Could be used for critical stages of the life cycle or when performance requires. Advantages for peruvian fishing companies: increase of the value of quotas and upward trend in prices % Salmon feed formula evolution 31% 12% 10% 19% 16% 11% 1990 s Today Future? Million MT 10% 6% 53% 69% World fish supply Wild catch Aquaculture Fishmeal and fish oil Plant ingredients Novel ingredients Others + 1,308% + 33% Source: Rabobank,FAO 8

9 5 Peru- Individual Fishing Quotas ITQ leads the industry to focus on quality and efficient usage of fleet and plants. Before - Global Quota System ( Olympic Race ): Competition between participants. Focus on increasing speed. Inefficient operations and low quality. Environmental contamination. Short fishing season. Since ITQ System: Individual quota assigned by vessel. Overall fleet reduction (1,200 to 500). Lower fixed costs. Extension of the fishing season. Efficiency and better quality. Better planning of production and diversification. Fishing days ITQ Olympic race Source: PRODUCE. 9

10 Pesquera Exalmar S.A.A Investments: Plants and Vessels Acquisition of plants: 1992: Casma. 1995: Tambo de Mora. New vessels. Revenues1998: US$ 19.5 MM Phenomenon El Niño New plants: 1997: Huacho. 1999: Chicama. Russian and Asian crisis and over production of soy. Strategic Financial Decisions 2004: Issuance of short term notes. 2007: Private Equity (22.7%). 2008: Syndicated loan (US$ 80 MM). Revenues 2008: US$ 117 MM ITQ system Fix costs reduction: 14 vessels the first year. Direct Human Consumption (DHC) investments. Revenues 2009: US$ 128 MM IPO and Quota Acquisition IPO US$ 100 MM. Acquisition of additional quotas reaching 6.45% North Center and 4.34% South. Strengthen DHC. RSW system to 6 vessels. Revenues 2010: US$ 183 MM Direct Human Consumption 2011: Syndicated loan US$ 140 MM. 2012: DHC Paita Plant. 2013: Bonds US$ 200 MM. Revenues 2012: US$ 217 MM Phenomenon El Niño IHC: -Proven ability to manage season without quota. -Lower quota and effective catch. DHC: -Tambo de Mora Plant. -Lower availability of species. Revenues 2014: US$ 221 MM 10

11 Pesquera Exalmar S.A.A. A clear vision for a sustainable growth. More than 35 years in the industry. FROZEN FISH PLANT 108 FISHMEAL PLANT 10 FISHMEAL PLANT 100 FISHMEAL PLANT 90 FISHMEAL PLANT 84 DISCHARGE FISH FISHMEAL PLANT 50 FROZEN FISH PLANT 575 FISHMEAL PLANT 100 MT/ Day MT/ Hour MT/ Hour MT/ Hour MT/ Hour MT/ Hour MT/ Day MT/ Hour Paita North - Center South Chicama Chicama Port Salaverry Port Chimbote Chimbote Port Supe Port Huacho Huacho Port Callao Callao Port Tambo de Mora Pisco Port Plants strategically located: 6 processing plants, 2 freezing plants and 1 unloading line. Diversification in Direct Human Consumption (DHC). 22 vessels in operation with 7,730 m3 storage capacity and 6 with Refrigerated Sea Water RSW (2,600 m3) also used for DHC. Plants capacity: 434 MT/ hour for IHC and 683 MT/ day for DHC. 11

12 Indirect Human Consumption FISHMEAL: Contains between 65% and 70% of high quality protein, rich in Omega 3. FISH OIL: Growing awareness of the health benefits of a diet with Omega 3 and Omega 6. Advantages of its Strategic component Health benefits EPA and DHA utilization Essential in the formula for aquaculture, optimizing development of fish. Energy and protein source with high content of essential aminoacids. Animal welfare and productivity, immunity, lower mortality and severity of inflammatory diseases. Benefits for cardiovascular and immune systems, as well as brain functions. 12

13 5 Indirect Human Consumption Exalmar: fourth largest producer of fishmeal and fish oil. North - Center Quota % of Total Processed Company 1 st season 2016 Company 2 nd season st season % % 27.2% % % 20.0% 3 8.5% % 12.1% 4 6.8% % 11.1% 5 6.7% % 10.6% 6 6.7% % 8.8% 8 Other 40.2% 8 Other 9.6% 10.3% Source: PRODUCE. Source: PRODUCE. The ability to buy third party catch allows an increase of the share of production. Strong business relationship with independent vessel owners: (i) Providing financial and operational advisory, (ii) Offering onshore and offshore fishing logistical support, (iii) Structuring tailor - made anchovy purchase agreements. 13

14 North-Center Quota As at December 2015 As at December 2016 Thousand MT 2 nd season st season 2015 Total 2 nd season st season 2016 Total Global Quota 2,580 2,580 1,110 1,800 2,910 Effective catch 2,508 2,508 1, ,998 Effective catch/ Quota 97.2% 97.2% 97.6% 50.8% 68.6% Exalmar s effective catch 100.0% 100.0% 100.0% 45.8% 66.4% Exalmar s participation 12.9% 12.9% 12.7% 11.1% 12.1% Season 09/04-31/07 17/11-31/01 26/06-27/07-20% Financial Statements 2015 The effective catch is 2,508 thousand MT. Financial Statements 2016 The effective catch is 1,998 thousand MT

15 Indirect Human Consumption Fishmeal exports (1) Fish oil exports (1) 6% 6% 6% 6% China Germany 6% 7% Denmark Chile 15% 67% Chile Indonesia Others 17% 20% 50% Belgium Canada Others Historical processing (North - Center) Thousand MT 622 Own catch 523 Third parties % % % 39% % 43% 55% 41% % 57% 61% 55% 54% 46% 59% 54% (2) 15 (1) (2) Data as at 4Q16(MT). Data as at 3Q16

16 Jack Mackerel Direct Human Consumption A clear vision for a management based on our ability to adapt and innovate. Mackerel Jack Mackerel Giant Squid Mahi Mahi Scallops Seafood mix Development of new products. Diversification with added value. Extension of relationship with independent fishermen. 16

17 Direct Human Consumption Exports to 16 countries worldwide. 1.Canada GIANT SQUID United States 15 4 SQUID GIANT SQUID ANCHOVY MAHI MAHI SILVERSMELTS SCALLOPS SEAFOOD MIXTURE GIANT SQUID BREADED BURGER GIANT SQUID BURGER GIANT SQUID NUGGETS 3.Mexico 4.Antilles MAHI MAHI GIANT SQUID MAHI MAHI 5.Guatemala 6.Peru GIANT SQUID GIANT SQUID 7.Brazil 8.Nigeria GIANT SQUID JACK MACKEREL 16.Russia 15.China 14.Japan 13.Thailand 12.Spain 11.Italy 10.Portugal 9.France GIANT SQUID ANCHOVY GIANT SQUID SILVERSMELT GIANT SQUID GIANT SQUID MACKEREL GIANT SQUID SQUID SILVERSMELTS SWORDFISH SQUID GIANT SQUID GIANT SQUID SCALLOPS GIANT SQUID SWORDFISH 17

18 Tambo de Mora Plant Mackerel and Jack Mackerel Thousand MT (1) Global Quota Effective catch Exalmar s catch Exalmar s participation Total 4.0% 6.0% 6.5% 8.7% 12.3% 12.3% Tambo de Mora Plant Production MT 24% 28% Bonito 117% Giant Squid 73% 67% Mackerel 12,699 Others 5,857 As at 3Q15 As at 3Q16 As at 3T15 As at 3T16 (1) Data as at 3Q16. The effective catch of 2016 corresponds to mackerel entirely. 18

19 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 preservation of marine resources. a management based on our ability to adapt and innovate. a transparent communication with our stakeholders. and committed to the development of human talent. Strategic goals Indirect Human Consumption (IHC): consolidation with best standards of quality and efficiency. Direct Human Consumption (DHC): develop of products with added value and access to new markets. 19

20 Financial Performance

21 P&L Composition As at 3Q15 As at 3Q16 MM US$ IHC DHC TOTAL IHC DHC TOTAL Revenues Gross Profit Operating Income Pre-Tax Income Net Income EBITDA Gross Margin 25% 22% 27% -38% 18% 21% -42% 15% Operating Margin 17% 11% 20% -66% 8% 13% -69% 5% Net Income Margin 6% 1% 10% -76% -2% 3% -87% -6% EBITDA Margin 26% 24% 31% -51% 20% 24% -44% 17% 21 17

22 Revenues Composition MM US$ 4% As at 3Q15 As at 3Q % -34% Fishmeal Fish Oil DHC Fishmeal Total revenues decreased (-8%), due to lower effective catch on the first season % 12% 14% 82% 8% 10% Fish Oil Others DHC As at 3Q15 As at 3Q16 22

23 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 4,500 3,000 1,500 0 US$/ MT Average Sale Price and Effective Catch ,624 1,822 2,358 2,168 1,563 1,578 1 st Season of nd Season of st Season of 2016 Fishmeal Fish Oil Effective catch Million MT

24 Stocks & Sales Fishmeal Thousand MT As at 3Q15 As at 3Q16 Var. Begininng stock % Production Sales % Reprocessing Ending stock % Fish Oil Thousand MT As at 3Q15 As at 3Q16 Var. Begininng stock % Production Sales % Reprocessing Ending stock % 24

25 DHC Revenues Frozen fish revenues (3Q15) Frozen fish revenues (3Q16) 6% 8% Giant Squid 81% Squid Scallops Mackerel and Jack Mackerel Others 18% 8% 4% 71% 67% Giant Squid Mahi Mahi Bonito Scallops Others DHC revenues decreased by 34%: Lower availability of giant squid and mahi mahi. No presence of jack mackerel and mackerel until July. DHC revenues represented 10% of total revenues (less than 14% of previous year). MM US$ 17.8 As at 3Q15-34% 11.7 As at 3Q16 25

26 Cost of Production As at 3Q15 As at 3Q16 Var. Ban days % Total Processed (1) Own Catch (1) Third Party (1) % -53% -58% Ban & Processed Volume Third parties purchase cost (2) % Catch Cost (2) % Cash Catch Cost (2) % Costs Processing Cost (3) % Cash Processing Cost (3) % Ban Expenses (US$MM) (4) % There were 202 ban days, comparing to 159 ban days of the same period of the previous year, due to the delay on the beginning of the first season (1) Thousand MT. (2) US$/MT of anchovy. (3) US$/MT Fishmeal & Fish Oil. (4) For purposes of comparative analysis, the information is presented without considering the reclassification of ban expenses. These are now registered as deferred assets (US$ 5.5 MM) until the beginning of the 2nd season of 2016, when they will be included to stocks values. 26

27 DHC Fixed Costs & Plant Capacity Utilization Plant Capacity Utilization 32% 28% 24% 20% 16% 12% 8% 4% 0% Jan Feb Mar Apr May Jun Jul Aug Sep DHC (MM US$) Revenues Variable Cost of sales Contribution margin Sales expenses As at 3Q Cost Deprec. Total Paita Tambo de Mora Non- production costs Low capacity utilization during 2016, due to: Lower availability of giant squid and mahi mahi. No presence of jack mackerel and mackerel. On July we increased our utilization because of the availability of mackerel. Fixed costs of sales Administrative expenses Total Fixed Costs EBITDA Continues the development of new markets with products of higher added value. Operating Income

28 Gross Profit and Margins Gross profit (-22%): Lower beginning stocks. Lower DHC sales (-34%). Delay on the beginning of the first season % 18% 19% 66% 15% 19% Cost of Sales Cost of nomproduction Ban Expenses Gross Profit As at 3Q15 As at 3Q16 As at 3Q15 As at 3Q16 20% 17% 18% 15% 8% 5% -2% -6% EBITDA Margin Gross Margin Operating Incone Net Income 28

29 Company Debt Indebtedness Position MM US$ As at 3Q15 Short-Term Debt (STD) % Long-Term Debt Current Portion 2.5 Non-Current Portion % Total Debt Cash 8.8 Net Debt As at 3Q % % BONDS: US$ 200. Maturity: September 2016: Tender Offer Reduction to US$ 170 MM. NEW LONG TERM DEBT: US$ 25 MM. Maturity: Two years grace period, balloon. Net Financial Expenses MM US$ 29% As at 3Q15 As at 3Q16 As at MM U$$ 3Q15 Net accounts receivable 30 Valued stocks (1) 45 Accounts receivable + 84 Valued Stocks + Cash Coverage STD 147% (1) Valued to average sales prices per quarter. As at 3Q % 29

30 CAPEX IHC Investments: 51% 36% IHC Plants IHC Vessels Maintenance work on fishing nets. Environmental requirements. Fishmeal plants. 38% 7% As at 3Q15 54% 9% As at 3Q16 Administratives DHC Business DHC Investments: Tambo de Mora Plant. Paita Plant. MM US$ (1) (1) Data as at 3Q16. 30

31 Others

32 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. Independent directors and Board Committees. Investor Relations section at website: Quarterly Reports, Press Releases, One on One meetings, Call Conferences, etc. Investor Relations: ozuniga@exalmar.com.pe Dependent Directors Víctor Matta Curotto Víctor Matta Dall orso Independent Directors María Cecilia Blume Cristian Celis Morgan Andrés Muñoz Ramírez Rodrigo Sarquis Said Martín Ramos Rizo Patrón Audit Committee Risks Committee Corporate Governance Committee Board (2 dependent and 5 independent members) Finance Committee Nominations and Remuneration Committee 32

33 Shareholder s Structure EXALMC (1) Closing price (S/.) Market Cap (MM US$) Dividend yield % - 17% 3% 9% 71% Economic Group Foreign institutional investors Bancard International Investment Local investors Exalmar YTD -17% 18% IGBVL YTD -33% 58% 1.5 EXALMC1 (S/.) S&P/BVL GENERAL 20,000 Listed in the Lima Stock Exchange since Shares: , ,000 10,000 (1)Data as at December 31 st, Source: Bloomberg. 0.7 Dic.-15 Mar.-16 Jun.-16 Set.-16 Dic.-16 5,000 33

34 T. (511) W. D. Av. Víctor Andrés Belaúnde 214, San Isidro, Lima - Perú