MILLENNIAL FISHING LEGACY FEEDING THE WORLD · Víctor Matta Curotto María Cecilia Blume Víctor...

PERU:MILLENNIAL FISHING LEGACY

FEEDING THE WORLD

2019MARCH

ROSSANA ORTIZ, CEOPESQUERA EXALMAR SAA

PERUVIAN ANCIENT CIVILIZATIONSPERU HAS FISHING ACTIVITY SINCE ANCIENT TIMES. A LEGACY OF 5000 YEARS HAS BEEN FOUND IN OUR CIVILIZATIONS.

(3000 BC – 1800 BC)

(400 AD- 1438 AD)

(700 BC - 200 AD)

Mochica

Paracas

CARAL

The most ancient

civilization in America.

MAP OF PRE-INCA CIVILIZATIONS (3000 BC- 1500 AD)

CHIMÚMOCHICACHANCAYLIMACHINCHA

PARACAS

PERU: MILLENNIAL FISHING LEGACY FEEDING THE WORLD

2CONTENT

PERUVIAN SEA

COLD WATERS

HUMBOLDT CURRENT

NORTH- CENTER AREA

SOUTH AREA

EL NIÑO CURRENT HOT WATERS

PERÚ: UNIQUE GEOGRAPHIC ASPECTS, BIODIVERSITY OF THE PERUVIAN SEA WITH PLENTY OF MARINE RESOURCES.

Unique geographic aspects:• Convergence of

“Humboldt” and “El Niño” currents.

• Length of the coast with more than 3,000 km.

3CONTENTPERU: MILLENNIAL FISHING LEGACY FEEDING THE WORLD

PERUVIAN ANCHOVY

Scientific name: Engraulis ringens

Close presence to the coast.

Only authorized resource for fishmeal and fish oil

Short development

and reproduction cycle

Not a migratory fish

Extensive shoals

PERUVIAN ANCHOVY HAS SIGNIFICANT ADVANTAGES OVER OTHER SPECIES.


PERUVIAN FISHING INDUSTRY

AGRICULTURE

FISHING

FISHING

OIL

OTHERSCHEMICAL

TEXTILE

MINING

AGRICULTURE

2%4% 13%

10%

81%

37%23%22%

TRADITIONAL EXPORTS (US$)

NON TRADITIONAL EXPORTS (US$)

Source: BCRP, INEI. Data 2018.

FIS

HIN

G

AGRICULTURE MANUFACTURE FINANCIAL TELECOM CONSTRUCTION

39.7

%

7.5%

6.2%

5.7%

5.5%

5.4%

GDP: PRINCIPAL ECONOMIC ACTIVITIES 2018

SOURCE OF EMPLOYMENT AND ECONOMIC AND SOCIAL WELFARE FOR THE POPULATION.

GDP PERU

2018: 4.0%

FISHING GDP

2018: 39.7%

8%


WELL- MANAGED SUSTAINABLE FISHERY

IMARPE is recognized as a world class

authority.

The system of Individual quotas

is recognized worldwide.

SUCCESSFUL MEASURES TO ENSURE THE SUSTAINABILITY OF THE ANCHOVY.

THE ANCHOVY FISHERY IS RECOGNIZED AS ONE OF THE BEST MANAGED IN THE WORLD.


Committed to the environment and the preservation of marine resources.

PRESERVATION OF THE RESOURCES

Satellite tracking system

Fisheries monitoring

Protection of

juveniles

Temporary closure

of fishing areas

Prohibition of access to new

vessels

Minimum sizes

of catch

Characteristics of fishing

nets

Reserved areas of the coast



STABLE BIOMASS

Source: INEI. PRODUCE.

HIGH VOLUMES OF BIOMASS FOR INDIRECT HUMAN CONSUMPTION.

12,000

10,000

8,000

6,000

4,000

2,000

0

THOUSAND MTAVERAGE BIOMASS

(THUSAND MT) 2008- 2018: 9,263

Landings

Biomass

Average biomass

1985

1997

1991

200

3

2011

1988

2000

1994

200

6

2014

1986

1998

1992

200

4

2012

1989

200

1

200

9

1995

200

7

2015

1987

1999

1993

200

5

2013

1990

200

2

2010

1996

200

8

2016

2017

2018


EL NIÑO REGIONS

EL NIÑO

Refers to the ocean-atmosphere climate phenomenon linked to a periodic warming in sea-surface temperatures across the central and east-central equatorial Pacific.

Typically strongest during December-April.

Usually occurs every 5-8 years and lasts 9-12 months. Prolonged episodes have lasted 2 years.

Niño 4 Niño 3

Niño 1+2Niño 3.4


EL NIÑO

THE COMPANIES OF THE INDUSTRY ARE PREPARED TO FACE UNCERTAIN CLIMATIC CONDITIONS THROUGH APPROPRIATE FINANCIAL STRUCTURES, AS IT WAS DONE IN 2014-2017.

SST ANOMALIES

3.0

2.5

2.0

1.5

1.0

0.5

0

-0.5

-1.0

-1.5

1985

1997

1991

200

3

2011

1988

200

0

1994

200

6

2014

1986

1998

1992

200

4

2012

1989

200

1

200

9

1995

200

7

2015

1987

1999

1993

200

5

2013

1990

200

2

2010

1996

200

8

2016

2017

2018

NIÑO 1982-1983 NIÑO 1997-1998

NIÑO 2014-2016


CLIMATIC IMPACTLOWER QUOTAS AND EFFECTIVE CATCH ARE ASSOCIATED, MAINLY WITH EL NINO.

6,000

5,000

4,000

3,000

2,000

1,000

0

THOUSAND MT

ANUAL EFFECTIVE CATCH (THOUSAND MT):

Quota

El NIñoEl NIña

Effective catch

200

6-1

2012

-1

200

9-1

2015

-1

200

7-2

2013

-2

2010

-2

2016

-2

2018

-1

200

6-2

2012

-2

200

9-2

2015

-2

200

8-1

2014

-1

2011

-1

2017

-1

2018

-2

200

7-1

2013

-1

2010

-1

2016

-1

200

8-2

2014

-2

2011

-2

2017

-2

Source: INEI. PRODUCE.

100

%

80% 10

0%

71% 10

0%

100

%

98%

100

% 99%

100

%

32%

98% 97

%

97% 99

%

66%

97%

98%

51% 10

0%

98% 98

%

100

%

46%

90%

2018:5,306 THOUSAND MT.

2014- 2017:1,400 THOUSAND MT.


SECOND FISHING SEASON 2018

THE INDUSTRY REACHED A CATCH AROUND 100% IN BOTH FISHING SEASON OF 2018.

THOUSAND METRIC TONS2017 2018

1st season 2nd season 1st season 2nd season

Quota 2,800 1,490 3,317 2,100

Effective catch 2,372 688 3,247 2,059

Catch (%) 86% 47% 98% 100%

Exalmar’s participation 14.4% 12.9% 13.7% 15.0%

Exalmar’s efficiency 49% 49% 71% 65%

Annual quota of 5,306 thousand MT, highest of last 11 years.2018


SECOND FISHING SEASON 2018

CHICAMA

CHIMBOTE

HUACHO

CALLAO

TAMBO DE MORA

LANDINGS BY PORT

THOUSAND METRIC TONS 20182nd season

Quota 2,100Catch (%) 100%Exalmar’s participation 15%Exalmar’s efficiency 65%

20%36%

21%8%14%


PESQUERA EXALMAR SAA

CENTER - NORTH

SOUTH

PAITA

CHICAMA

CHIMBOTE

PROMASA

VLACAR

HUACHO

CHANCAY/ CARAL

CALLAO

TAMBO DE MORA CHI

TAMBO DE MORA CHD

ILO / PROMASA

26 years in the industry and

more than 45 years as fishermen

Plants strategically located and

diversification in Direct Human Consumption.

IHC649 MT/ hour

DHC683 MT/ day

FROZEN FISH PLANT

FISHMEAL PLANT

FISHMEAL PLANT

FISHMEAL PLANT

FROZEN FISH PLANT

FISHMEAL PLANT

FISHMEAL PLANT

FISHMEAL PLANT

FISHMEAL PLANT

FISHMEAL PLANT

FISHMEAL PLANT

108

100

100

100

575

90

84

25

50

50

50

TM/DAY

TM/HOUR

TM/DAY

TM/HOUR

TM/HOUR

TM/HOUR

TM/HOUR

TM/HOUR

TM/HOUR

TM/HOUR

TM/HOUR

Own plants Maquila Business Collaboration


INDIRECT HUMAN CONSUMPTION

Company Company

Others Others

HAYDUK

HAYDUKEXALMAR

EXALMAR

AUSTRAL

AUSTRAL

PESQUERA DIAMANTE

PESQUERA DIAMANTE

TASA TASA

COPEINCA- CFG COPEINCA- CFG

2nd season 2018 2nd season 2017 2nd season 2018

EXALMAR: THIRD LARGEST PRODUCER OF FISHMEAL AND FISH OIL.

NORTH - CENTER QUOTA % OF TOTAL PROCESSED

2 2

4 4

5 5

6 6

7 7

1 1

3 3

14.2% 24.1% 21.0%

7.0% 11.4% 11.3%

6.8% 12.4% 10.2%

6.8% 8.3% 8.8%

39.8% 9.2% 11.4%

16.9% 21.7% 22.3%

8.5% 12.9% 15.0%

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.

INDIRECT HUMAN CONSUMPTIONEXALMAR: THIRD LARGEST PRODUCER OF FISHMEAL AND FISH OIL.


BEST QUALITY OF FISHMEALBETTER QUALITIES OF FISHMEAL OF EXALMAR THROUGH THE LAST YEARS.

100.0%

90.0%

80.0%

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

2010- 2013:52%

2014- 201868%

2010

2016

2013

2011

2017

2014

2012

2018

2015

44%

33%

55%

76%

69%

69%

69%

64% 68

%

EVOLUTION OF FISHMEAL (PRIME + SUPERPRIME)


DIRECT HUMAN CONSUMPTION

THOUSAND MT 2014 2015 2016 2017 2018 2019 (*)

Global Quota 152 140 239 210 185 214Effective catch 89.7 1.1 110.8 76.8 80.6 53.0Exalmar’s catch 7.8 0.1 10.3 8.6 7.4 5.9Exalmar’s participation 8.7% 12.3% 9.3% 11.3% 9.2% 11.1%

MACKEREL AND JACK MACKEREL

Paita Plant

Tambo de Mora Plant

Frozen, storage services

Mackerel and Jack Mackerel

(*) As at February 11th.


MILLION MT 1S17 2S17 2S18 2S18

Effective catch 2.37 0.69 3.25 2.10

SALES

1S17 1S182S17 2S18

2,000

1,800

1,600

1,200

1,000

US$/ MT

1,396

1,728

1,5681,469

AVERAGE SALE PRICE OF FISHMEAL AROUND US$ 1,469 IN SECOND SEASON 2018.


2012 2013 2014 2015 2016 2017 2018

Quota in Financial Statements (thousand MT)

5,071 2,725 3,954 2,508 1,998 4,326 3,935 (*)

Fishmeal Sold (thousand MT) 120 80 92 70 65 145 125

EBITDA

(*) Quota for the full financial year.2012 2013 2014 2015 2016 2017 2018

61 42 57 38 21 49 91

100

80

60

40

20

0

EBITDA was

USD 91.3 88%more than 2017.million

MILLION USD


2011 2012 2013 2014 2015 2016 2017 2018

12,073

21,517

13,340

7,139

7,139

6,3155,096

12,881

CAPEX AND FISHMEAL PRODUCTIONCAPEX

14491 106

6095 78 99

181Investments in environmental requirements, extension of plants, etc.

Change

Increase of capacity

Fishmeal prod.

Normative

THOUSAND US$ / THOUSAND MT


P&L COMPOSITION

(*) Operating income does not consider other income/expenses and worker’s participation.

MM US$ 2016 2017 2018

Revenues 136.1 254.6 240.7Gross Profit 17.7 53.7 90.3Operating Income 1.5 29.1 70.6Pre-Tax Income -21.2 5.5 47.9Net Income -22.3 4.8 29.3EBITDA 21.3 48.5 91.3

Gross Margin 13% 21% 38%Operating Margin 1% 11% 29%Net Income Margin -16% 2% 12%EBITDA Margin 16% 19% 38%


INDEBTEDNESSREFINANCING AND REDUCTION OF LONG-TERM DEBT.

ISSUANCE OF BONDS

Debt:

US$ 200 MM

EXCHANGE OFFER

Debt:

US$ 189 MM

REPURCHASE OF BONDS

Debt:

US$ 170 MM

REPURCHASE OF BONDS

Debt:

US$ 195 MM

2013 2016 2018 2019

EL NIÑO AND LA NIÑA2014- 2017 REFINANCING AND

REDUCTION OF LONG-TERM DEBT


EFFLUENTS TREATMENT

CLEAN UP OF BEACH-COASTAL

BAY

NATURAL GAS

STRICT ENVIRONMENTAL

CONTROL BY AUTHORITIES

ENVIRONMENTAL MANAGEMENT, COMMITTED TO THE PRESERVATION OF MARINE RESOURCES:

INTERNATIONAL CERTIFICATIONS IN QUALITY, ENVIRONMENT AND SUSTAINABILITY:



CORPORATE GOVERNANCEA 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:

www.exalmar.com.pe

DEPENDENT DIRECTORS INDEPENDENT DIRECTORS

Víctor Matta Curotto María Cecilia Blume

Víctor Matta Dall’orso Cristian Celis Morgan

Andrés Muñoz Ramírez

Rodrigo Sarquis Said

Martín Ramos Rizo Patrón

Board2 dependent and

5 independent members

Audit Committee

Risks Committee

Finance Committee

Corporate Governance Committee

Nomination and

Remunera-tion Committee


1Strategic alliances

4Increase of

plants capacity

7Rental of

fishing quotas

2Antioxidant

BHT as per EU regulations

5Natural

Gas

8Innovation: IT developments

3Fish oil quality

(Omega)

6Higher

participation

9DHC

2018GROWTH AND ACHIEVEMENTS


Leading competitive position and long experience in the industry.

Strong financial performance and efficient cost structure.

Experienced management team and strong corporate governance.

Responsible fishing for the preservation of marine resources.

Commitment to the needs of our stakeholders.

Agility to adapt to the challenges of the fishing sector.

Excellence in the development of high quality marine products with valuable content of protein.

Advanced manufacturing capabilities and strategic locations.

POSITION

FINANCIAL

MANAGEMENT

RESPONSIBILITY

STAKEHOLDERS

AGILITY

QUALITY

CAPABILITIES

¿WHY ARE WE THE THIRD LARGEST PRODUCER OF FISHMEAL IN THE WORLD?


ENCOURAGING FUTURE

2018:Highest annual quota of last 11

years.

2018:Highest EBITDA

historically.

A positive cycle begins in the fishing sector.

Encouraging outlook for 2019, since

an important adult biomass is expected for the

first season of 2019.


Phone(+511) 441 4420

AddressVíctor Andrés Belaunde 214. San Isidro.Lima, Peru.

www.exalmar.com.pe

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MILLENNIAL FISHING LEGACY FEEDING THE WORLD · Víctor Matta Curotto María Cecilia Blume Víctor...

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