Pesquera Exalmar Saa · BVL:EXALMC1
Pesquera Exalmar Saa — Pesquera Exalmar — IPO Roadshow (October 2010)
39 slides from Pesquera Exalmar Saa's IPO roadshow presentation, October 2010
Slide 1: Roadshow Presentation
Roadshow Presentation October 2010 1
Slide 2: Disclaimer
Disclaimer The material that follows is a presentation of general background information about Pesquera Exalmar S.A. and its subsidiaries (collectively, “Exalmar” or the “Company”) as of the date of the presentation solely for meetings with potential investors in connection with the proposed public
Slide 3: Disclaimer (cont.)
Disclaimer (cont.) The market and competitive position data, including market forecasts, used throughout this presentation was obtained from internal surveys, market research, publicly available information and industry publications. Although we have no reason to believe that any of this information
Slide 4: Presenting Management Team
Presenting Management Team CEO of Exalmar since 1995 Prior to joining Exalmar, Rossana spent 6 years as CFO of Fima SA, the largest supplier of shipping parts to the Peruvian fishing industry, as well as 6 years at Mrs. Rossana Ortiz R. Arthur Andersen’s assurance department Chief Executive Officer
Slide 5: The Offer
The Offer 5
Slide 6: Offering Summary
Offering Summary Issuer Pesquera Exalmar SA Initial Public Offering in Peru with international sales efforts exempt from Offering Structure registration under the Securities Act and listing on the Lima Stock Exchange Stafedouble S.L. (subsidiary of Citigroup Venture Capital International Growth Sell
Slide 7: Shareholders Structure
Shareholders Structure Before Offering After Offering Stafedouble SL Caleta de Oro SA 1/ 22,7% 60.6% Free Float 37,7% Caleta de Oro SA 1/ 75.2% Silk Holdings Ltd Silk Holdings Ltd 2,1% 1,7% 239,496,557 common shares 296,996,557 common shares Assuming the Selling Shareholder sells 100% of its current
Slide 8: A unique Opportunity
A unique Opportunity 1- Unique Product 2- Unique Industry Fishmeal is a key source of proteins for balanced Wild catch levels are virtually stagnant, therefore any growth in formulas in animal feed (fish, pork, chicken). global fish demand needs to be covered by aquaculture. In aquaculture, fishmeal
Slide 9: Exalmar Investment Highlights
Exalmar Investment Highlights Fishmeal and fish oil are increasingly scarce resources due to fixed supply and a growing global demand. Escalating prices are a reflection of these supply and demand dynamics. Leading fishmeal and fish oil exporting company entitled to 5.7% of the Peruvian North- Cente
Slide 10: Fishmeal Industry
Fishmeal Industry 10
Slide 11: Overview
Overview Fishmeal is a flour made by cooking and milling fresh raw fish and fish trimmings. Fish oil is a clear brown/yellow liquid pressed from the cooked fish and normally refined. Fishmeal Value Chain Catch Processing Products Distribution Anchovy, sardine, Two methods: Fishmeal: FAQ, Prime Broke
Slide 12: Drivers of growth
Drivers of growth World Fish Production (million MT) Asian Fish Production (million MT) 180 120 160 Aquaculture 100 140 Wild catch 120 80 100 60 80 60 40 40 20 20 0 0 1980 1984 1988 1992 1996 2000 2004 2008 1980 1984 1988 1992 1996 2000 2004 2008 Wild catch levels are virtually stagnant, therefore a
Slide 13: Drivers of growth (Cont.)
Drivers of growth (Cont.) Main Uses of Fishmeal Main Uses of Fish oil 100% 100% 80% Other 80% Refined edible 60% Swine 60% Industrial 40% Poultry 40% Aquafeed Aquaculture 20% Hardened 20% edible 0% 0% 1960 1980 2008 1970 1990 2009 Shift in uses of fishmeal and fish oil towards feed mainly due to the
Slide 14: Fishmeal Relevance in Aquaculture
Fishmeal Relevance in Aquaculture Aquaculture vs other forms of protein production1 No substitute to fishmeal in aquaculture High protein, essential amino and fatty acids, minerals. High palatability and digestibility, thus increased growth of fish. Less feed wastage. Improved immunity, survival rat
Slide 15: Fishmeal Supply
Fishmeal Supply World Fishmeal Production1 2009 Fishmeal Production per country2 Million MT Perú World 28% 6,45 Others 7,00 6,07 Perú 43% 6,00 5,61 5,27 5,19 4,99 4,92 5,00 4,00 3,00 1,97 1,93 2,00 1,22 1,34 1,4 1,41 1,35 USA 1,00 Chile 5% 13% 0,00 China Thailand 3% 8% 2003 2004 2005 2006 2007 2008
Slide 16: Fishmeal & Fish Oil Price Evolution
Fishmeal & Fish Oil Price Evolution FAQ & Prime Fishmeal Spot Prices (USD / MT) 1 Yearly Average Fish Oil Prices (USD / MT) 2 2000 FAQ 1400 1290 Prime 1200 1500 1000 817 850 804 800 724 1000 600 473 491 514 580 400 317 500 200 0 0 01 02 03 04 05 06 07 08 09 Aug dic-00 jul-02 feb-04 sep-05 abr-07 nov
Slide 17: Fishmeal Industry in Peru
Fishmeal Industry in Peru Historical Anchovy Capture (millions MT) Historical Permitted Fishing Days Stricter regulatory control ITQ 227 8.8 ITQ 200 8.1 8.6 179 175 Olympic Race 6.3 147 5.3 5.9 6.1 6.1 5.8 105 48 47 49 2001 2002 2003 2004 2005 2006 2007 2008 2009 2001 2002 2003 2004 2005 2006 2007 2
Slide 18: Attractive Regulatory Framework
Attractive Regulatory Framework Until 2008 Quantity > Quality Focus on increasing Depletion of PREVIOUS speed and not efficiency. SYSTEM Shorter fishing seasons (~ 50 days per year a natural Excess fleet capacity (~ 60%). and 120,000 MT capture per day). resource Global Environmental Low capability
Slide 19: Market consolidation
Market consolidation 2004 market share of total own catch 2009 market share of total own catch Top 10 Vikings Players 20% 31% Top 10 Players Others Other 61% 69% Industrials 19% The Peruvian fishmeal sector has undergone a gradual consolidation process since 2004. The implementation of the ITQ syste
Slide 20: Market consolidation (Cont.)
Market consolidation (Cont.) Major Transactions - Olympic Race (2006-08) Major Transactions - ITQ (2009-10) 50.000 USD per m3 of 160 USD MM per 1% of 45.000 Storage capacity Copeinca – El Angel North Center Quota Centinela - Alamare 140 Diamante – Wood Fleet 40.000 CFG - Alejandria 120 TASA - EPESCA
Slide 21: Exalmar
Exalmar 21
Slide 22: At a glance
At a glance Key facts Location of main Plants Founded in 1992. Major fishmeal and fish oil company in Peru. Permanent individual quota of 5.7% and 2.8% of Peru’s North Center and South annual anchovy harvest, respectively. 3rd largest in Peru (4th in 2009) in terms of Paita processed catch. 99% of p
Slide 23: History of growth
History of growth 1992- 1998 1999 - 2008 2009 2010 + Development of plants Sound Financial Adjustment to the ITQ IPO and acquisition of and vessels Strategy System additional quota Acquisition of 2004: issuance of short Optimization of results Listing on the Lima Stock processing plants in term note
Slide 24: Successful acquisition track record
Successful acquisition track record Acquisitions during the Olympic Race Acquisitions during ITQ 2006 2009-10 Several acquisitions of fleet and small Several acquisitions of fleet and small fishing companies fishing companies USD 32MM USD 31MM 2,915 m3 of storage capacity (USD 11,087 0.5% of center
Slide 25: Sound procurement strategy
Sound procurement strategy Peru’s Fishmeal and Fish Oil Companies North Center % Total Fish Processed Exalmar processed 10% of Company Quota Company 2009 20102/ Peru’s total anchovy 20101/ 1 TASA 13.5% 1 TASA 22.7% 23.0% catch in the first season 2 Copeinca 10.7% 2 Copeinca 15.0% 13.8% of 2010, more
Slide 26: Relationship with the Viking Fleet / Third Party Suppliers
Relationship with the Viking Fleet / Third Party Suppliers Who are the “Vikings”? Approximately 20% of the catch quota belongs to several hundred small fishing companies that lack How has Exalmar leveraged these industrial fishing vessels and relationships to ensure long-term success? processing cap
Slide 27: Continued operating improvement
Continued operating improvement Historical Own Catch (North and South Q.) Plant Capacity 350 8,0% TM/hour 276,4 289,6 7,0% Plant FAQ SD Total 300 250 233,6 6,0% Tambo de Mora 0 100 100 212,1 5,7% 5,0% Huacho 84 0 84 200 4,9% 143,8 4,5% 4,0% Chicama 0 100 100 150 3,5% 3,0% Chimbote 50 40 90 100 2,7%
Slide 28: Diversified client base
Diversified client base Exalmar Fishmeal exports 2009 Exalmar Fish oil exports 2009 USD 113 MM USD 15 MM 13% 4% 6% 43% 4% 7% Belgium China 5% Denmark Germany China Japan 12% 8% UK Indonesia 44% Norway Vietnam Others Others 26% 28% Exalmar’s largest clients are brokers in China and Germany that sell
Slide 29: Strong financial indicators
Strong financial indicators Sales and operating margin EBITDA and EBITDA margin 120,0 Million of USD 45% 300 Million of USD 32,0% 37% 40% 28% 100,0 27,0% 250 35% 200 80,0 22,0% 30% 155,4 17,0% 54,0 53,0 25% 150 128,2 60,0 19% 44,8 114,0 20% 12,0% 100 10% 68,8 69,6 40,0 21,1 15% 57,0 7,0% 19,3 10% 20
Slide 30: Conservative leverage levels
Conservative leverage levels Debt Composition USD 30MM USD 54MM 20% 34% The syndicated loan, led by WestLB Syndicated represents the largest part of Exalmar’s Loan structural debt. Current interest rate is USD 16MM Leasing and 5.4% per year 10% other LT Debt In June 2010, the company obtained a Brid
Slide 31: Exalmar vs. a Publicly Traded Comparable
Exalmar vs. a Publicly Traded Comparable Audited 2009 Figures Exalmar Comparable (55% own catch / 45% third parties) (70% own catch / 30% third parties) Fishmeal output per Exalmar produces more 22.9% per MT of fish 22.8% per MT of fish fishmeal per every ton of fish MT of fish processed processed…
Slide 32: Plans for Direct Human Consumption
Plans for Direct Human Consumption Currently, Exalmar is developing a frozen Paita Plant Total Investment: USD 2.5MM fish product line for export and local Processing capacity: 38.4 MT per hour markets Beginning of operations: April 2011 The Company has already invested USD 10.7MM: To develop plants
Slide 33: Exalmar Management
Exalmar Management 33
Slide 34: Experienced management team
Experienced management team Professional Board of Directors with two independent directors Extensive experience The President of the Board and main shareholder, Mr. Victor Matta Curotto, has over 30 years of experience in the sector The board of directors has consistently generated value for its inv
Slide 35: Presenting Management Team
Presenting Management Team CEO of Exalmar since 1995 Prior to joining Exalmar, Rossana spent 6 years as CFO of Fima SA, the largest supplier of shipping parts to the Peruvian fishing industry, as well as 6 years at Mrs. Rossana Ortiz R. Arthur Andersen’s assurance department Chief Executive Officer
Slide 36: Key management (Cont.)
Key management (Cont.) Pesquera Exalmar’s Production officer since 2005, with 10 years in the industry. Previously acted as operating officer in Alexandra S.A.C. (today owned by China Arturo Muñoz L. Fishery Group). Plant Manager Obtained his Bachelors degree in mechanical engineering and is current
Slide 37: Investment Highlights & Growth Opportunities
Investment Highlights & Growth Opportunities 37
Slide 38: Growth Opportunities
Growth Opportunities Opportunity Exalmar’s Strategy Current Status Expected Impact USD 31MM worth of acquisitions (i) additional acquisitions in Peru, Further expansion executed YTD May 2010, with the Based on LTM figures, for every 1% and (ii) potential acquisitions in within the fishmeal & intenti
Slide 39: Exalmar Investment Highlights
Exalmar Investment Highlights Fishmeal and fish oil are increasingly scarce resources due to fixed supply and a growing global demand. Escalating prices are a reflection of these supply and demand dynamics. Leading fishmeal and fish oil exporting company entitled to 5.7% of the Peruvian North- Cente