Pescanova, S.a. · BME:PVA
Pescanova — Investor Presentation (January 2010)
32 slides from Pescanova's investor presentation, January 2010
Slide 1: Investors Presentation
Investors Presentation January 2010 1 Pescanova Group - Investors Presentation 1
Slide 2: Disclaimer
Disclaimer This document is not a prospectus. This document does not constitute an offer or invitation or form part of an offer or invitation to subscribe for or purchase any securities, and neither this document nor anything contained herein shall form the basis of any contract or commitment whatso
Slide 3: Agenda
1. Pescanova Group today 2. Key investment highlights 3. Update on Pescanova Group financing
Slide 4: Branded Food Company, Marine Protein Oriented, Vertically integrated
Branded Food Company Marine Protein Oriented Vertically integrated Pescanova Group - Investors Presentation 4
Slide 5: Pescanova at a glance
Pescanova at a glance Î Spain-based company engaged in the branded marine protein industry Vertically integrated global player: Production + Processing + Distribution of marine proteins Diversified in terms of supply sources, countries and species Î Wide geographical presence Wild fish: fishin
Slide 6: Agenda
1. Pescanova Group today 2. Key investment highlights 3. Update on Pescanova Group financing
Slide 7: Key investment highlights
Key investment highlights EXPERIENCED GROWING INDUSTRY MANAGEMENT TEAM WITH STRONG DRIVERS COMPLETED INVESTMENT LEADING MARKET CYCLE TO FACE POSITION NEW DEMAND TRENDS ROBUST FINANCIAL UNIQUE VERTICALLY TRACK RECORD INTEGRATED BUSINESS MODEL STRONG RISK DIVERSIFICATION Pescanova Group - Investors Pr
Slide 8: 1. Growing industry with strong drivers
1. Growing industry with strong drivers Favourable demographic indicators and consumption trends Î According to the UN, world population has grown by Î From 1997 to 2007 the human consumption of 15% over the last decade Marine Protein has grown by 25% Projected growth of World population World seafo
Slide 9: 1. Growing industry with strong drivers (cont'd)
1. Growing industry with strong drivers (cont’d) Stable wild fisheries production coupled with strong and sustainable growth in aquaculture Î Stable human consumption of wild marine proteins Î Aquaculture production has risen by approx. 6.5% of about 60m tons over the last 10 years p.a. over the las
Slide 10: 2. Leading market position
2. Leading market position Top-10 player in the marine protein industry Pescanova Î Unique business positioning with a clear differentiation from its competitors Biggest Asian suppliers: focus on wild catch supply and mainly Japanese market Norwegian companies: mono-production companies (salmon)
Slide 11: 2. Leading market position (cont'd)
2. Leading market position (cont’d) Leading brand in the frozen seafood market Î #1 in Spain and Portugal, where fish consumption is among the highest in the world (46 kg / person / year and 60 kg / person / year respectively) Second competitors far away and some losing share Î Also relevant marke
Slide 12: 3. Unique vertically integrated business model
3. Unique vertically integrated business model Wild Aquaculture Processing Commercial catch (fish farming) facilities distribution Î 120,000 tons / year Î 67,000 tons / year of Î 30 processing plants around Î Distribution in main developed Î More than 100 vessels present Tropical Vannamei shrimp t
Slide 13: 4. Strong risk diversification
4. Strong risk diversification 50 years track record Harvesting system Pescanova’s sales by Î Harvesting system diversification diversification 2008 Geography Q3’09 Wild caught with secured quota positions, and RoW Farmed Procurement 21% 36% Î Geographical diversification (please see also next sli
Slide 14: 4. Strong risk diversification (cont'd)
4. Strong risk diversification (cont’d) We are in the World’s best fishing grounds and in the best farming locations Î 4 species farmed in 8 countries: Salmon & Turbot (long-ongrowing cycle) and Shrimp & Tilapia (short-ongrowing cycle) Chile, Ecuador, Nicaragua, Honduras, Guatemala, Spain, Portu
Slide 15: 4. Strong risk diversification (cont'd)
4. Strong risk diversification (cont’d) Leading aquaculture player in the main consumed species Î Pescanova operates integrated structures that Seafood consumption evolution in the US (per person - Kg) guarantee the traceability of the products: Rank 1987 Kg % / Total 2008 Kg % / Total % Change Ha
Slide 16: 5. Robust financial track record – FYE financials
5. Robust financial track record – FYE financials Annual revenues (€m) Annual EBITDA and EBITDA margin (€m, %) 4-2008) 4-2008) A G R: 10% (200 1,343 A G R: 21% (200 138 1,500 C 150 C 15.0% 1,293 122 1,250 1,133 125 110 12.5% 999 89 933 100 10.0% 1,000 10.3% 65 9.7% 9.5% 750 75 8.9% 7.5% 50 7.0% 5.0%
Slide 17: 5. Robust financial track record – Quarterly financials
5. Robust financial track record – Quarterly financials Q3 revenues (€m) Q3 EBITDA and EBITDA margin (€m, %) 18.3% Growth: 9.5 % Growth: 100 88 1,000 913 75 834 80 9.7% 800 60 9.0% 600 40 400 20 200 - - 3Q08 3Q09 3Q08 3Q09 EBITDA EBITDA Margin Q3 EBIT and EBIT margin (€m, %) 8.3% Growth: 60 50 46 45
Slide 18: 6. Completed investment cycle to face new demand trends
6. Completed investment cycle to face new demand trends Capex decreasing in 2009 and onwards after 4 years of significant investments Î Pescanova’s major investments were achieved from 2004 to 2008 and Historical Capex and guidance (€m) reached approximately €500m accumulated Capex After 2009 Pesc
Slide 19: 7. Experienced Management team
7. Experienced Management team Î Experienced management team with a successful track record in the integration of new businesses Î Developed Pescanova’s vertical integration Î Backed by a stable growth strategy 2004-2008 sales CAGR of 9.5% Constant financial margins improvement (from 2004 to 200
Slide 20: Main conclusions
Main conclusions Drivers of Pescanova’s ongoing success Î Size and relevance in the fishing and aquaculture industry Î Vertical integration with reliable and stable access to fish supply and strong negotiation power Î Leading brand in high income per capita world markets, with supply and production
Slide 21: Agenda
1. Pescanova Group today 2. Key investment highlights 3. Update on Pescanova Group financing
Slide 22: Update on Pescanova Group financing
Update on Pescanova Group financing Î Pescanova achieved a significant Investment plan of around €500m from 2004 to 2008, mainly financed through corporate debt Î The Company has engaged various steps to strengthen its balance sheet and increase the maturity of its debt in order to match projected c
Slide 23: Pescanova debt maturity profile
Pescanova debt maturity profile Current debt repayment calendar (post rights issue) Debt repayment calendar after CB issue (*) Breakdown Breakdown 44% 17% 33% 3% 2% 1% 26% 17% 33% 3% 2% 19% €m €m 250 250 200 200 150 150 100 100 50 50 Syndicated loans - - 2010 2011 2012 2013 2014 > 2014 Other banks f
Slide 24: Appendix
Appendix Pescanova Group - Investors Presentation 24
Slide 25: L3Y share price evolution
L3Y share price evolution Resilient share price Î Increase of the liquidity after the RI (in EUR) 13-Jan-07 - 12-Jan-10 Volumes ('000) 40 300 35 250 30 200 25 150 20 100 15 50 10 - Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Volumes Pescanova Ibex 35 So
Slide 26: Pescanova's main customers by country
Pescanova’s main customers by country United states France Poland DDDI, INC (DARDEN) TOURPARGEL SAS UNIFOOD ATLANTIC TRADING CO. C.S.F. FRANCE SAS BIS FOOD GREAT WALL REST. SUPPLIERS POMONA RYBHAND IMAEX TRADING CO LECLERC SEAMOR INSTITUTION FOOD HOUSE, INC SENECRUS ABR
Slide 27: Leading market position
Leading market position Frozen seafood brands – market shares evolution in Spain In volumes – from 2001 to 2009 (thousand tons) 100 87 82 80 74 68 60 60 52 45 40 40 20 0 2001 2002 2003 2004 2005 2006 2007 2008 Pescanova Antartida Pescafina Finamar La Gula AYR Frudesa Other Brands Mascato Private Lab
Slide 28: World Vannamei farming market
World Vannamei farming market World production of Penaeus Vannamei vs. Penaeus Monodon (thousand tons) Last 7 years average annual growth of total production: 21% 3,000 2,000 1,000 - 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Penaeus monodon P
Slide 29: Pescanova's Vannamei project
Pescanova’s Vannamei project Sales of the Pescanova Group Vannamei shrimp farming companies 2008 Jun-09 th. tons US$m th. tons US$m Ecuador 16.8 117.8 12.2 79.9 Nicaragua 5.1 28.9 7.2 36.3 Guatemala 1.2 5.0 3.9 17.6 Honduras 1.1 5.3 1.7 8.9 Total 24.3 157.0 24.9 142.7 The production traded through t
Slide 30: European Turbot production market
European Turbot production market Turbot production by origin in Europe for the period 1984-2012e (tons) 25,000 20,000 15,000 10,000 5,000 - 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Wild Caught Farmed Source: FAO and Company’s estimates Pescanova Group - Investors P
Slide 31: Pescanova's Turbot production
Pescanova’s Turbot production In 2012 the Pescanova Group will produce more than 50% of the European farmed turbot Total estimated Turbot production in Europe in 2012: > 20,000 tons Other Other France 5% France Turbot 14% 4% 3% Acuacria 3% 30 day Larvae Acuidoro Pescanov a Spain 7% 52% Portugal 53%
Slide 32: Thank you
Thank you 32 Pescanova Group - Investors Presentation 32