Pesquera Exalmar Saa · BVL:EXALMC1

Pesquera Exalmar Saa — Q2 2013 Earnings Presentation

31 slides from Pesquera Exalmar Saa's earnings presentation, October 2013

  1. Slide 1: 2013 Second Quarter Results

    October, 2013 2013 Second Quarter Results

  2. Slide 2: Highlights

    Highlights Pesquera Exalmar S.A.A. Indirect Human Consumption Direct Human Consumption Financial Performance Corporate Governance

  3. Slide 3: Pesquera Exalmar S.A.A.

    a 4 Pesquera Exalmar S.A.A. ~——s DO Pesquera Exalmar

  4. Slide 4: Pesquera Exalmar S.A.A.

    Pesquera Exalmar S.A.A. Leading competitive position with significant diversification potential.  More than 30 years in the industry.  Diversification in Direct Human Consumption (DHC): Mackerel, Jack Mackerel, Giant Squid and Mahi-Mahi.  Plants strategically located throughout the FISHMEAL PLANT

  5. Slide 5: Pesquera Exalmar S.A.A.

    Pesquera Exalmar S.A.A. Exalmar is the 3rd largest producer of fishmeal and fish oil in Peru in terms of volume, supplementing its quota via third-party catch from independent fishermen. North-Center Quota % of Total Processed Company 1st season 2013 Company 1st season 2013 1 14.10% 1 22.71% 2 10.76

  6. Slide 6: History of growth

    History of growth 1992- 1999 2000 - 2008 2009 2010 2011- 2013 Investments in Plants Sound financial ITQ system adjustment IPO and additional quota Higher ITQ and Direct Human and vessels strategy acquisition Consumption  Acquisition of  2004: issuance of  Fix cost reduction:  Listing on Lima Sto

  7. Slide 7: Indirect Human Consumption

    Indirect Human Consumption ~——s DO Pesquera Exalmar

  8. Slide 8: Indirect Human Consumption

    Indirect Human Consumption Continuous improvement and solid presence in the IHC segment. Close relationship with independent vessel owners.  6 plants with 434 MT/hour of total installed capacity, strategically located along Peruvian coast.  All plants operate with Steam Dried System.  Overall imp

  9. Slide 9: Indirect Human Consumption

    Indirect Human Consumption Fishmeal exports (*) Fish oil exports (*) 3%6% 3% 4% China 4% Denmark Indonesia 8% 31% Chile Taiwan Norway Chile Japan Vietnam 63% China 75% Others Historical processing C-N (MT) 700 652 Own catch (%) Third party (%) 600 523 500 324 392 372 400 372 43% 328 300 271 26% 45%

  10. Slide 10: Operations

    Operations Own catch (C-N) Plants capacity (MT/hr) 7% Catch (Thousand MT) 400 6.45% 6.45% 5.70% 350 Name Capacity 6% Exalmar's Catch / Global Catch 300 Paita 10 5% 3.50% 4.90% 250 Chicama 100 4% 4.50% 200 Chimbote 90 3% 2.70% 2.40% 339 Huacho 84 276 287 150 2% 234 240 Callao 50 212 100 177 1% 144 Ta

  11. Slide 11: Direct Human Consumption

    a 4 Direct Human Consumption ~——s DO Pesquera Exalmar

  12. Slide 12: Direct Human Consumption

    Direct Human Consumption Consolidating its presence in DHC segment.  Development of new products lines: fresh and frozen fish.  Constant monitoring of the world market trends to diversify offer and generate products with increased added value.  Extension of relationship with independent fishermen

  13. Slide 13: DHC- Mackerel and Jack Mackerel

    DHC- Mackerel and Jack Mackerel Mackerel and 2011 2012 2013 (*) Jack Mackarel Global quota C-N 240,000 120,000 117,000 Effective catch 233,660 112,310 60,329 Exalmar’s catch 9,270 6,777 3,857 Exalmar’s catch 3.97% 6.03% 6.39% participation Production 2012 Production 2013 (*) 28% Frozen Fresh 39% 53%

  14. Slide 14: DHC- Paita Plant (other species)

    DHC- Paita Plant (other species) Production 2012 (*) Production 2013 (*) 3% 13% Giant squid 3% Mahi Mahi Squid 84% Anchovy 90% Production DHC Paita Plant 2012 2013 (*) 2012: 3,425 MT 1,200 Acum. 2013: 4,832 MT 1,000 800 600 400 200 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 14 (*) Data as of

  15. Slide 15: Financial Performance

    a 4 Financial Performance ~——s DO Pesquera Exalmar

  16. Slide 16: Global Quota North Center (N-C)

    Global Quota North Center (N-C) As of june 2013 As of june 2012 2nd season 1st season 2nd season 1st season Total Total 2012 2013 2011 2012 Global quota C-N 810 2,050 2,860 2,500 2,700 5,200 Effective catch 732 1,822 2,554 2,448 2,031 4,479 Effective catch/ 90.4% 88.9% 89.3% 96.6% 75.2% 86.1% quota

  17. Slide 17: Global Quota N-C (1st season 2013)

    Global Quota N-C (1st season 2013) As of july 2013 As of july 2012 2nd season 1st season 2nd season 1st season Total Total 2012 2013 2011 2012 Global quota C-N 810 2,050 2,860 2,500 2,700 5,200 Effective catch 732 1,992 2,724 2,448 2,607 5,055 Effective catch/ 90.4% 97.2% 95.2% 97.9% 96.6% 97.2% quo

  18. Slide 18: Fishmeal & Fish Oil Stocks and Sales

    Fishmeal & Fish Oil Stocks and Sales Fishmeal Thousands SEM1-2012 SEM1-2013 Var. (%) MT Begininng 40.6 11.1 -73% stock 72.2 62.1 Production 62.1 50.5 -19% 50.5 Sales 72.2 27.3 -62% 27.3 Reprocessing 1.8 0.9 -50% Ending stock 32.3 35.1 9% Production Sales SEM1- 2012 SEM1- 2013 Fish oil Thousands SEM1

  19. Slide 19: P&L Composition

    P&L Composition Millions of US$ SEM1-12 SEM1-13 Var LTM Revenues $119.9 $63.0 -47.5% $160.1 Gross Profit $34.4 $11.0 -68.0% $35.2 Operating Income $25.5 $2.6 -89.9% $11.9 Pre-Tax Income $20.6 ($8.7) -142.0% ($1.9) Net Income $14.6 ($2.0) -114.0% $4.6 EBITDA $36.3 $12.1 -66.8% $36.3 % of revenues Gro

  20. Slide 20: Revenues Composition

    Revenues Composition SEM2- 2012 SEM2- 2013 5% 14% 18% Fishmeal 7% Fish oil Anchovy DHC 73% 79%  Total revenues: US$ 63.0 million (-47%), explained by 86% IHC and 14% from DHC.  Fishmeal revenues: US$ 49.5 million (-44%), due to lower sales in volume which was partially offset by the better average

  21. Slide 21: IHC Revenues: Fishmeal & Fish Oil

    IHC Revenues: Fishmeal & Fish Oil Exalmar Fishmeal average sales price (US$/ MT) Fishmeal Revenues Thousands SEM1-2012 SEM1-2013 MT MT 72,229 27,340 US$/ MT 1,220 1,811 Fishmeal Revenues 88,120 49,512 (US$) % of 74% 79% revenues Exalmar Fish Oil average sales price (US$/ MT) Fish Oil Revenues Thousa

  22. Slide 22: DHC Revenues

    DHC Revenues SEM1- 2012 SEM1- 2013 18% 14% Fresh Frozen Others 77% 83% Millions US$  Increase in revenues by 53%, explained by : i. Higher frozen revenues in Paita Plant. ii. Volume Sold (thousand 8,796 MT). 5,746 iii. Ending stocks (thousand MT). SEM1- 2012 SEM1- 2013 22

  23. Slide 23: Cost of Production

    Cost of Production Q2-12 Q2-13 SEM 1- 2012 SEM 1- 2013 Var Ban days 31 46 91 105 15% Total Processed* 201 187 274 223 -19% Ban & Processed Own Catch* 96 114 148 136 -8% Volume Third Party* 105 74 126 87 -31% Third part buying 80% price** 277 325 188 338 Catch Cost** 100 99 85 109 28% Cash Catch Cost

  24. Slide 24: Gross Profit

    Gross Profit Millions US$  Gross profit was affected by: 34.4 i. Lower sales (-47%). ii. Less cost of sales (-47%). 11.0 i. Higher ban expenses (+113%). SEM1- 2012 SEM1- 2013 17% 29% 21% 10% 61% 61% SEM1- 2012 SEM1- 2013 24 Cost of Sales Ban Expenses Gross Margin

  25. Slide 25: Operating Income and Net Income

    Operating Income and Net Income Gross profit, operating income and net income (Million US$)  Higher costs affected by: i. Lower selling expenses: lower volume sold. ii. Higher administrative expenses: non-recurrent personal costs, sundry expenses & rental charges. iii. Higher other net expenses: ex

  26. Slide 26: Company debt

    Company debt Debt (Million US$) Bonds Total short term debt 50  January 2013: Exalmar issued a Bonds 198 bond in the international capital Leasing (*) 5 market for US$ 200 MM.  Bullet maturing in 2020 with an Total debt 253 interest rate of 7.375%. Cash 18  Use of proceedings were used to Net deb

  27. Slide 27: CAPEX

    CAPEX  IHC Investments: CAPEX composition  Maintenance work on fishing nets. 6%  Environmental 16% 11% IHC plants requirements.  Fishmeal plants. DHC plants  DHC Investments:  Tambo de Mora Vessels Plant.  Paita Plant. 67% Administratives  RSW Vessels for DHC. 49.3 CAPEX (million USD) 27.8 2

  28. Slide 28: Shareholders structure and stock performance

    Shareholders structure and stock performance Shareholder structure (as of june 2013) Analysts coverage Target price (*): Economic 4%  Inteligo:S/. 2.39 group (Upside: +36.6%) 20% Stafedouble  Santander: under S.L. revision. 5% Foreign institutional 71% investors Others Stock performance 2013 (*) 2

  29. Slide 29: Corporate Governance

    a 4 Corporate Governance ~——s DO Pesquera Exalmar

  30. Slide 30: Corporate Governance

    Corporate Governance Corporate Governance Committee  By- laws and Policies:  Dividend Policy: non less than 30% Risk Audit Committee Committee and no more than 50% of net profits  Code of Business Conduct and Ethics. Board  General Shareholder’s Meeting (1 dependent guidelines. and 6  Rules of

  31. Slide 31: 2013 Second Quarter Results

    October, 2013 2013 Second Quarter Results

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