March 20, 2015 1 Revenues Jan Dec (MUS$) 2013 2014 +13% 496.4 - - PowerPoint PPT Presentation

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March 20, 2015

Revenues

+11% +13%

2013 2014

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Jan – Dec (MUS$)

+18% +10%

• 12%

+9%

Oct – Dec (MUS$)

+47% 156.5 251.8 30.5 438.8 184.4 278.5 33.5 496.4 Fishing Salmon Other Seafood TOTAL 44.7 79.7 7.1 131.5 65.9 70.3 7.1 143.2 Fishing Salmon Other Seafood TOTAL

44.7 79.7 7.1 131.5 65.9 70.3 7.1 143.2 Fishing Salmon Other Seafood TOTAL

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Q4 Revenues - Fishing

Volume (Ton) Average price (US$/Ton) Revenues (US$ million)

• 12%

+44% +26%

MUS$

Fishmeal 17,929 20,439 Q4 2014 Q4 2013 2,013 1,398 36 29

+47%

2013 2014

44.7 79.7 7.1 131.5 65.9 70.3 7.1 143.2 Fishing Salmon Other Seafood TOTAL

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Q4 Revenues - Fishing

Volume (Ton) Average price (US$/Ton)

+202% +2% +209%

Fish oil

MUS$ +47%

4,040 1,338 Q4 2014 Q4 2013 1,960 1,916 7.9 2.6

2013 2014

Revenues (US$ million)

44.7 79.7 7.1 131.5 65.9 70.3 7.1 143.2 Fishing Salmon Other Seafood TOTAL

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+4%

• 10%
• 7%

Volume (Ton WFE) Average price (US$/Kg WFE)

Q4 Revenues - Salmon

Atlantic Salmon Revenues (US$ million)

Other factors:

• Trout: Drop of MUS$ 1,5.

MUS$

• 12%

11,384 10,970 Q4 2014 Q4 2013 5.2 5.8 60 64

2013 2014

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+26% +7% +36%

Volume (Ton) Average price (US$/Kg)

Revenues 2014 - Mussels

Mussels Revenues (US$ million) 8,422 6,668 YTD Q4 2014 YTD Q4 2013 2.7 2.6 23 17 Significant rise in mussel’s revenues with improvements in sale volume and price.

2013 2014

Results

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Jan – Dec (MUS$) Oct – Dec (MUS$)

2013 2014

• 9.5

0.1

• 7.4
• 16.9

6.2 6.5

• 1.5

11.1 Fishing Salmon Other Seafood TOTAL

• 0.4

14.3

• 3.0

11.0 7.2

• 4.5
• 1.7

1.0 Fishing Salmon Other Seafood TOTAL

• 9.5

0.1

• 7.4
• 16.9

6.2 6.5

• 1.5

11.1 Fishing Salmon Other Seafood TOTAL

Other Seafood Results

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Jan – Dec (MUS$)

• 52% of the losses due to the suspension of operations in Bahía

Inglesa (an extraordinary disbursement of US$ 2.5 million).

• Severance and termination benefits: US$ 774 thousand
• Write-off of concessions: US$ 506 thousand
• Write-off of farm-related assets: US$ 511 thousand
• Write-off of plant and workshop-related assets: US$ 357

thousand

• This will lead to reductions in production to approximately

130-140 tons per year (only in Guanaqueros, 4th region).

Northern Other Seafood

• 2.4
• 2.5
• 5.9
• 4.9
• 1.5

3.3

2013 2014

Southern Other Seafood

EBITDA (before Fair Value)

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Jan – Dec (MUS$) Oct – Dec (MUS$)

2013 2014

11.2 6.1

• 5.3

11.9 33.1 31.5 1.6 66.1 Fishing Salmon Other Seafood TOTAL 4.1 16.0

• 2.8

17.4 14.7 9.3

• 0.4

23.5 Fishing Salmon Other Seafood TOTAL

6.5 7.2 4.9 2.0 11.9 25.5 53.0 60.0 66.1 400 419 437 448 439 459 483 485 496 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 EBITDA (MUS$) Revenues (MUS$)

Development: Last 4 mobile quarters

10 1.6% 1.7% 1.1% 0.4% 2.7% 5.6% 11% 12.4% 13.3% X%

EBITDA/Revenues

26 28 28 43 27 18 71 40 24 19 17 23 2 3 14 38 9 38 3 4 17 16 2013 2014 2013 2014 2013 2014 2013 2014 Q1 Q2 Q3 Q4

Driver: Pelagic Fishing

Sardine: Biomass recover. Catches rose 124% in 2014 over 2013 and represents the annual quota. Jack Mackerel: Catches equivalent to 2014’s quota in the south with 3 thousand tons in Q4 due to quota transfer from the north to the south. Anchovy: Catches equivalent to 2014’s quota, but lower than 2013 (-15%).

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Jack Mackerel Anchovy Sardine

Thousands of tons

Langostino 152 129 115 43 46 50 43 96 87 6.5 7 6 2013 2014 Quota 2015 E Year

In the case of the sardine, catches include own and third party. Company’s estimations are based on current information, which could change due to deviations

Jack mackerel’s catches situation in the south

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49% 37% 7%

As of week 11: % of catched quota 2013 2014 2015 Camanchaca Rest of the industry

50% 37% 9%

Source: InPesca

• Slow start in 2015’s season.
• Despite the abundant biomass of jack mackerel between the 3rd and 5th region, fishing
• perations have been stopped by the mixture of big fish with juveniles.
• Late March or early April: the jack mackerel enters through the South in the 10th region, with

the retreat of the masses of warm water northward.

November to January: 800 Th Ton

Driver: Fishmeal Price

Price recover from Q1 2014 with an important rise from Q3 2014. Peru’s Fishing Quota: No quota.

US$ x ton (Camanchaca) 1,478 1,605

May to July: 2.7 M Ton May to July: 2.5 M Ton (68% catched) November to January: 2.5 M Ton May to July: 2 M Ton

2,320

Prime Fishmeal Price (Chile) IFFO Week 10 2015 13 Peru’s Fishing Quota:

1,763

November to January: No quota

1,192 1,337 1,504 1,777 1,813 1,803 1,532 1,398 1,492 1,567 1,850 2,013 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014

China: Port off-takes and Stocks

Drop in off-takes and stocks.

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Source: IFFO

December 31, 2014 September 30, 2014 VOLUME Months of Production ThUS$ VOLUME ThUS$ SALMON Atlantic Salmon and Trout (Tons) 6,021 2.8 37,889 3,581 28,842 Salmon Total 37,889 28,842 FISHING Fishmeal (Tons) 4,879 1.1 5,492 9,886 12,391 Fish oil (Tons) 692 0.7 984 3,864 3,172 Frozen Jack Mackerel (Tons) 1,418 1.1 1,058 4,763 3,528 Canned Fish (thousands of boxes) 169 2.1 3,211 522 8,993 Langostino Lobster (Tons) 382 5.0 4,789 401 5,503 Fishing Total 15,534 33,587 OTHER SEAFOOD Mussels (Tons) 1,230 1.7 3,026 1,609 3,272 Abalone (Tons) 117 6.6 2,915 183 4,630 Scallops (Tons) 80 4.1 1,108 77 1,372 Other Seaafood Total (Tons) 7,049 9,274 COMPANY TOTAL 60,472 71,703

Net stocks (valued at cost)

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Significant drop in Fishing stocks during Q4 2014.

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Driver: Salmon Farms Sanitary Conditions

8.2% 10.2% 19.8% 9.0% 9.7% 11.7% 11.8% 9.8% 12.1% 9.8% Q1 Q2 Q3 Q4 Year 1.44 1.41 1.53 1.55 1.42 1.34 1.31 1.44 1.42 1.42 1.20 Q1 Q2 Q3 Q4 Year

2013 2014

Mortality – Atlantic Salmon % in closed cycle Economic Feed Conversion Rate – Atlantic Salmon

Atlantic Salmon: Development in growth forecasts for 2015 Kontali

17 4.2% 6.6% 4.0% 4.2%

• 6.6%
• 6.6%
• 4.2%
• 3.8%

1.9% 3.2% 2.5% 2.8%

• 8.0%
• 6.0%
• 4.0%
• 2.0%

0.0% 2.0% 4.0% 6.0% 8.0% Nov-14 Dec-14 Jan-15 Feb-15

Norway Chile World

Variation in projections within the same source: Contraction of Chile is minimized.

Atlantic Salmon: Growth forecasts for 2015

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Salmonex, Nordea and Kontali. Thousands of tons WFE Salmonex (March 2015) Nordea (March 2015) Kontali (February 2015) 2014 2015 2014 2015 2014 2015

Norway 1,198 1,254 1,198 1,254 1,199 1,249 Annual growth

4.7% 4.7% 4.7% 4.7% 4.8% 4.1%

Chile 590 589 583 572 583 562 Annual growth

26%

• 0.2%

24%

• 1.9%

25%

• 3.7%

Otros 460 485 456 483 445 480 Annual growth

5.3% 5.4% 4.7% 5.9% 3.5% 7.8%

Total Global 2,248 2,328 2,237 2,309 2,227 2,290

Annual growth

9.6% 3.5% 9.1% 3.2% 9.1% 2.8%

Salmonex Kontali Nordea

• 0.2%
• 1.9%
• 3.7%

Chile's supply 2015 3.5% 3.2% 2.8% Global supply 2015

4.2 6.0 4.7 5.8 5.7 5.4 5.8 5.2 5.1 5.6 Q1 Q2 Q3 Q4 Year

Driver: Atlantic Salmon Price

Stable prices with a drop in Q3 and Q4 2014 US$ x kg WFE (Salmones Camanchaca)

19 Harvest (Thousands of Tons)

9.2 5.1 7.1 11.6

33.1

Δ+44%

10.9 5.0

39.3

9.2

Δ+23%

14.3

Δ-5% Δ-9% Δ+10%

2015 harvest (E): 38 – 40 Th tons

2013 2014

2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 jan-04 may-04 sep-04 jan-05 may-05 sep-05 jan-06 may-06 sep-06 jan-07 may-07 sep-07 jan-08 may-08 sep-08 jan-09 may-09 sep-09 jan-10 may-10 sep-10 jan-11 may-11 sep-11 jan-12 may-12 sep-12 jan-13 may-13 sep-13 jan-14 may-14 sep-14 jan-15

Atlantic Salmon Price: Long-term trend

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During March, market prices 14% below trend line. Urner Barry Trim C 2-3 - US$/Lb

mar-15

Camanchaca’s Atlantic Salmon RMP

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Camanchaca’s RMP (Raw Material Return) higher than the Urner Barry and Salmonex indexes.

Camanchaca vs Market (Salmonex, January 2012 = Base 100)

100 74 105 117 89 122 60 80 100 120 140 160 180 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Urner Barry Salmonex Camanchaca

Driver: Diesel Price

Drop from Q4 2014 US$ x lt

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0.88 0.84 0.83 0.84 0.86 0.82 0.83 0.70 0.84 0.81 Q1 Q2 Q3 Q4 Year Fuel consumption 2013 2014 Δ dec-13 dec-14 Δ

Diesel (Million lt) 15.4 13.9

• 10%

1.5 0.7

• 55%

Price (US$/lt) 0.84 0.81

• 4%

0.82 0.62

• 24%

Bunker (Million Kg) 11.6 13.0 12% 1.1 0.3

• 77%

Price (US$/Kg) 0.66 0.62

• 6%

0.63 0.45

• 29%

Total expenditure (MUS$) 20.6 19.3

• 6%

2.0 0.6

• 72%

2013 2014

Atlantic Salmon and Mussels: Camanchaca’s main destination markets

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FOB exports 2014: US$ 241 million USA; 43% Japan; 10% Mexico; 8% Brazil; 8% Euro Zone; 7% Russia; 6% Others; 18%

100 115 112 113 111 172 116 119 117 118 132 127 187 119 130 Japan Mexico Brazil Euro Russia Chile Norway Dec-13 Dec-14 Mar-15

Devaluation of currencies vs USD: Main destinations and producers

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December 2013 Base 100, vs US$

Fuente: X-Rates.com

• Weighted nominal devaluation of 22% in 5 key markets in 2014.
• Real devaluation of 16%  Estimated impact: -US $ 7.5 million.

Devaluation of CLP vs USD: Positive effect on costs

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• CLP 2014 average devaluation against the USD compared to the end 2013: 8.7%.
• 2014 average inflation compared to the end 2013: 2.9%.

Camanchaca’s costs 2014 (MUS$)

416 45

• 31

Cost of sales Administrative and distribution expenses Depreciation Costs in USD Costs in CLP 130 - 140 (290) - (300)

Effect of lower cost of approx. US$ 7-8 million.

60 70 80 90 100 110 120 130 140 150 160 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

Raw Material Cost and RMP (Raw Material Return) Base 100 = RMP January 2012

RM cost before processing RMP 26 Porcelana Porcelana Lamalec Garrao Chonos Puelche Contao Islotes Loncochalgua Licha Mañihueico Edwards Benjamín Tahuenahuec Izaza Cabudahue Fiordo Largo Pilpilehue Ahoní Loncochalgua Leptepu Cahuelmó Lamalec

Development of Atlantic Salmon Margins

|---Licha---| |-------Puelche------- |--Contao--|

|--Mañihueico--

|--Islotes-- |Ed.|

Most of 2014 harvest in the 10th region with cost improvements. From June 2014, lower costs than in May due to low harvests in that month. 10th region Sites 11th region Sites

0.50 0.72

• 2.0
• 1.5
• 1.0
• 0.5

0.0 0.5 1.0 1.5 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014

Atlantic Salmon Business Atlantic Salmon Sales

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EBIT (US$/Kg WFE) before Fair Value

Development of Atlantic Salmon Margins

Jan – Dec 2013: 0.00

• 0.23

Jan - Dec 2014: 0.64 0.36 Improved EBIT/kg in Q4 v/s Q3 despite lower prices Atlantic Salmon Business includes other Revenues and Costs due to services and sales to third parties, and intercompany salmon sales to our offices abroad.

New World Currents (NWC) 2014

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Exports of frozen whole salmon to China

• NWC sold at a price per Kg approx. 30 cents above the rest of Chile.
• Of the Chilean sales, NWC is No. 1 with 23% of frozen salmon to China.

23% 77% NWC Rest of Chile

36% 64% CAMANCHACA Other NWC

Frozen salmon sales (USD): NWC v/s Rest of Chile Sales (USD): Camanchaca v/s Other NWC NWC companies representing 20% of Chilean exports of Salar.

(2,672) 235 (5) 5,336 2011 2012 2013 2014

Mussels– Development in the last 4 years

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2014 v/s 2011: Higher production with improvements in prices  Turnaround in the business with higher revenues and EBITDA. Production (Tons) Price (US$/Kg) EBITDA (Th US$)

6,440 7,130 6,193 8,651 5,000 10,000 2011 2012 2013 2014 2.2 2.5 2.6 2.7 2.0 3.0 2011 2012 2013 2014

Δ+34% Δ+23% Δ+MUS$ 8

17,740 16,998 20,799 25,650 15,000 30,000 2011 2012 2013 2014

Revenues (Th US$)

Δ+45 %

Mussels– Development in the last 4 years

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2014 v/s 2011: Significant market diversification (+38%) and clients (+51%).

24 28 30 33 135 176 184 204 50 100 150 200 250 2011 2012 2013 2014

N° Countries where we sell N° of Clients

*Considers clients with annual sales over US$ 10 thousand.

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Production: Positive Development of Costs and Sizes. Lower cost per kg: -50%. 45% improvement in sizes.

Abalone

Units / Kg US$ / Kg

39.6 41.5 39.0 33.6 30.1 26.2 34.6 24.2 23.5 22.9 23.5 20.7 13.2 12.9 11.0 9.4 8.3 7.1 8.7 7.6 7.8 6.6 7.1 7.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 2014

Cost (US$/Kg) Size (Units/Kg)

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Markets: Affected prices due to China’s situation of internal consumption restrictions. Fall of approx. 40% in 7 Units/Kg size price. Average price for 7 Units/Kg size (US$/Kg)

Abalone

27.7 27.7 27.7 27.1 26.2 26.2 24.8 23.7 25.3 22.3 22.3 16.7 15.0 30.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 2014

Debt: Payment conditions

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• Current Debt: US$ 227 million.
• Payment of fees in May and November (~US $ 15 million).
• Cash Sweep Flow (CSF) 2015: Payment of debt due to 2014 results.
• It is caused by cash excess or EBITDA excess (adjusted with financial costs) over the

model used in the process of refinancing (2013).

• CSF will be defined on April 30.

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