Third Quarter 2017 Results CEO Jorge Luis Ramirez Rubio CFO Andrs - - PowerPoint PPT Presentation

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Third Quarter 2017 Results CEO Jorge Luis Ramirez Rubio CFO Andrs - - PowerPoint PPT Presentation

Third Quarter 2017 Results CEO Jorge Luis Ramirez Rubio CFO Andrs Colichn Sas Disclaimer This presentation has been prepared by Camposol Holding Plc. (the Company) . The presentation and its contents may not be reproduced,


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Third Quarter 2017 Results CEO Jorge Luis Ramirez Rubio CFO Andrés Colichón Sas

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  • This presentation has been prepared by Camposol Holding Plc. (the “Company”). The presentation and its contents may not be reproduced,

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publication or distribution to persons in the United States (within the meaning of Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”)). The securities in the Company have not been and will not be registered under the Securities Act.

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forward-looking statements are free from errors nor does any of the foregoing accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecasted developments.

Disclaimer

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Agenda

3Q 2017 Highlights Company Overview Appendix Financial Review Summary

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 EBITDA: 

EBITDA(1) LTM of USD 115.9 million at closing 3Q-17, 51.3% higher than 2016 EBITDA.

EBITDA(1) YTD of USD 79.7 million at closing 3Q-17, 100.0% higher than YTD 3Q-16 EBITDA.

 Revenues and volume: 

Sales(1) YTD of USD 240.6 million at closing 3Q-17, 37.2% higher than 2016.

Sales(1) LTM of USD 341.9 million at closing 3Q-17, 23.6% higher than 2016 sales.

Volume sold YTD of 77.5 MT, up 42.8% from same period last year, mainly explained by higher volume of avocado, shrimp and blueberry.

 Improving net leverage ratio(1)(2): from 1.9x in 2Q-17 to 1.1x in

3Q-2017.

 As of June 30th, 2017, Camposol maintained a cash balance of

USD 36.1 million.

 Camposol introduces “The Berry that Cares”. It is Camposol’ s

proposition to communicate its commitment to the environment, its communities, workers, and the consumer.

 Camposol certified OHSAS 18000.  We opened our third commercial office in Shanghai – China in

August 2017.

Source: Company data as of September 2017. (1) Without discontinued operations. (2) Net leverage ratio = (Gross debt – cash) / LTM EBITDA(1)

21.0 23.1 4.0 4.3 22.6 41.9 6.7 8.1 54.3 77.5

YTD - 3Q-16 YTD - 3Q-17 Other Blueberries Avocados Marinasol

Revenues(1) and EBITDA(1) 3Q-17 (USD MM) Total volume(1) sold 3Q-17 (MT 000)

36.9%

EBITDA(1) YTD of USD 79.7 million, up 100% compared to same period last year, mainly driven by higher avocado results. LTM EBITDA(1) of USD115.9 million.

175.4 240.6

39.9 79.7

YTD - 3Q-16 YTD - 3Q-17 Sales EBITDA (1) 37.2% 100.0%

276.7 341.9

76.6 115.9

2016 LTM -3Q-17 23.6% 51.3%

32.9 35.0 10.9 11.2 22.9 42.3 8.9 10.3 75.6 98.8

2016 LTM -1H-17 30.7%

Highlights

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Agenda

3Q 2017 Highlights Company Overview Appendix Financial Review Summary

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 Positioned in the healthy food segments of fruits and seafood products.  Large bank of land: 24,268 hectares(1) out of which approximately 9,054(2) hectares have been planted and 1,222 hectares are being used for shrimp production.  Employs on average 17,200(3) workers.  Commercial offices: One in the US, with 6 distribution centers in the US and 2 in Canada, another one in the Netherlands, with 3 distribution centers in Europe and

another one in China.

 Strong Corporate Governance: 3 out of 7 Board members are independent and the whole management team is independent.  Strategic location with favorable climatological conditions allows the Company to harvest on counter seasons with higher yields.

Source: Company data as of September 2017 (1) 1 hectare = 2.47 acres (2) Gross planted. Although 5,243 hectares have been planted, road, facilities, intangible areas, among others, also constitute part of the gross planted hectares. (3) This number includes workers from Camposol, Marinazul, INYSA and Cofresac as of September 2017.

Camposol at a glance

PERU PERU PERU PERU PERU PERU PERU PERU PERU

Legend

Emerging producers Historical producers Equator line

Mission “Providing consumers worldwide, by way of our customers, with healthy food through differentiated products. This is achieved through

  • perating excellence, innovation and the development of our people, which generates a positive and real impact on the wellbeing of

the communities where we operate, creating sustainable value for our shareholders.” Vision “Being the preferred and state-of-the-art supplier of healthy and fresh food for families worldwide.”

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Camposol has year-round production that allows for cost-effective use of labor and productive resources.

Camposol Fruits & Vegetables (F&V) is our division specialized in the agro industrial business…

  • Climatic factors in Peru provide significantly better product yields.
  • Natural greenhouse conditions and stable temperatures throughout the year:

− Humboldt current. − Proximity to the tropical equatorial regions. − Little weather fluctuations.

  • Sandy soils with drip irrigation systems along coastal desert plains.
  • No extreme climate:

− All major agricultural risks (floods, frost, droughts) mitigated by the stable weather conditions.

  • Blueberries,

avocados and grapes have been traditionally grown and consumed on the northern hemisphere.

  • As population expanded, regions in the southern hemisphere became the

natural suppliers of these fruits.

  • Consumers in the northern hemisphere were subject to natural seasonality

and harvest of these fruits, lacking adequate supply during a significant portion of the year.

  • Countries such as Peru now take a lead role in supplying the northern

hemisphere by taking advantage of a different seasonality, effectively creating ‘year-round’ supply, and accessing the market when supply from

  • ther regions is seasonally low.

Highlights

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Blueberries Avocados Tangerines Grapes Mangos

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60.0 21.1 10.5 25.1 20.7 7.8 30.1 13.1

Hip. Spain China Turkey Moroc.

  • Pakist. South A.

World

8

18.0 14.7 9.9 5.0 11.5 7.1 11.9 7.5 9.2

Hip. Max: 14- 16 Mexico Chile Peru Spain Israel US World

12.0 9.0 7.7 4.7 10.0 3.6 4.5 3.7 5.5

Hip. Max: 14-16 US Canada Neth. Poland Moroc. France World (metric tons per hectare)

World 2014 yields (Mt/Ha)*

…with a strategic location, Camposol F&V has favorable yields and prices, and most of its agricultural risks are greatly mitigated

Top 6 countries, ranked by 2012-2014 exports Camposol** Top 6 countries, ranked by 2012-2014 exports 25.0 23.9 12.4 17.1 9.9 3.7

16.4 15.7 10.5

Hip. Max: 14- 16 Chile US Italy Neth. China Sout A. World Top 6 countries, ranked by 2012-2014 exports Camposol**

*Source:Information prepared by the Company with data from FAO. ¨** We only have 70% planted hectares have reached high yields

Peru’s climate allows Camposol to produce more efficiently all-year round, take advantage of production windows not available to competitors and achieve higher than average yield.

HQ

Camposol** Camposol** Top 6 countries, ranked by 2012-2014 exports

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Source: Company data as of September 2017.

Crop yield as % of peak yields production

Unproductive phase Medium yield phase High yield phase

Net Has

0 - 20% 20 to 80% 80 to 100%

Total has

250

(9% of total)

Avocados

194

(7% of total)

2,211

(84% of total)

2,655

Mangos

131

(27% of total)

33

(7% of total)

318

(66% of total)

482

Grapes

185

(71% of total)

22

(9% of total)

51

(20% of total)

258

Tangerines

117

(53% of total)

103

(47% of total)

220 1,080

(21% of total)

623

(11% of total)

3,540

(68% of total)

Total

5,243

Blueberries

397

(24% of total)

374

(23% of total)

857

(53% of total)

1,628

Camposol F&V has significantly strong expected growth without substantial additional Capex.

Diminishing yield phase

Lower than 50%

(0% of total) (0% of total) (0% of total) (0% of total) (0% of total) (0% of total)

Only 68% of planted areas have reached peak yields

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Tumbes

10 Intensive ponds 67 hectares Semi-intensive ponds 1,083 hectares Semi- intensive ponds (unproductive) 72 hectares Laboratory 2,400 millions larvae per year Processing facilities Processing capacity 120 MT/day Cold storage capacity up to 1,400 MT.

Total ponds 1,222 hectares

Marinasol is our aquaculture division focused on strengthening the intensive shrimp farming method.

 Marinasol possesses 1,222 Has dedicated to shrimp farming, out of which

67 are productive through intensive farming as of closing September 2017.

 Our shrimp production is fully integrated. Operations starts with hatchery

and laboratory management, where we produce our own SPF larvae to assure the best possible quality for our shrimp. On a second stage, shrimp farming is managed via intensive and semi intensive ponds. Finally, in our processing facilities we process and pack harvested shrimps so we can export them mainly to US and Europe.

 Marinasol operates three plants with a total processing capacity of around

120 MT/day.

 Marinasol has become the major shrimp grower, producer and exporter in

Peru.

 Marinasol’ s R&D approach allows it to obtain more efficient result.

Marinasol at a glance Shrimp volume harvested (MT) by type of pond

Source: Company data as of September 2017.

Traditional Ponds

10 – 18 shrimp/m2 1.4 – 2.5 MT/campaign 1.5 – 3.0 2.1 – 7.5 MT

Intensive Ponds

300 shrimp/m2 +34 MT/campaign 2.9 100 MT

Density Yield Campaigns per year Yield per year

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 Camposol, through its three offices in the USD, the Netherlands and China,

is focused on developing a strategic portfolio of clients around the globe while consolidating the Camposol brand as a first class food producer.

 During the last year Camposol worked with the principal retailers in USA

and Europe: Wal-Mart, Costco, Sam’s Club, Edeka, Kaufland.

 On February 15th, 2017, Camposol obtained the Supplier of the Year award

from Walmart.

 On August 2017, Camposol opened a third office in Shanghai - China as

part of its strategy of develop new markets.

Camposol commercial platform at a glance Share of sales(1) by commercial channel (% of Total) Commercial platform: 3 commercial office

Camposol’ s International commercial platform is focused on strengthening strategic partnerships with retailers in key markets.

Source: Company data as of September 2017. (1) Sales include all sales performed by our commercial offices in Europe and the US, as well as direct shipment from Peru to supermarkets, retails, etc. Sales without discontinued operation (2) In the Produce Category HQ and Operations Camposol offices Exports

1

Supplier of the Year2 36% 47% 48% 55% 64% 53% 52% 45%

2014 2015 2016 LTM-3Q-17 Direct Importers

World-class customers Awards and recognitions

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Agenda

3Q 2017 Highlights Company Overview Appendix Financial Review Summary

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Camposol’ YTD Sales of USD 240.6MM, up 37.20% from same period last year.

10 20 32 49 66 78 104 126 268 237 277 342

2000 2001 2002 2003 2004 2005 2006 2007 … 2014 2015 2016 LTM 3Q-17 (USD in million)

Historical sales(1) – Camposol

Source: Company data as of September 2017. (1) Starting 2015, sales without discontinued operations.

Gross profit(1) breakdown by Segment (USD Million)

Sales(1) YTD of USD 240.6 million, up 37.2% from YTD 3Q-16.

Avocado volume sold as of closing 3Q- 17 was 85.6% higher compared to the same period last year. Shrimp and

  • ther

seafood product sold as

  • f

closing 3Q-17 was 21.7% higher compared to the same period last year.

Avocado average price is 22.7% higher compared to the same period last year.

USD (000) Avocado Blueberry Seafood Other YTD 3Q - 17 YTD 3Q - 16 Revenues 118,227 30,137 57,731 34,553 240,648 175,368 Cost of goods sold (40,653) (15,396) (47,688) (27,034) (130,771) (109,557) Costs associated to sales (10,089) (1,993) (1,453) (4,065) (17,600) (13,131) Gross profit 67,485 12,748 8,590 3,454 92,277 52,680 Gross margen % 57.1% 42.3% 14.9% 10.0% 38.3% 30.0% Net million tons Volume produced 42,141 3,802 7,772 18,969 72,684 47,936 Volumes sold 41,883 4,305 8,149 23,135 77,472 54,266 USD/kg

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14 EBITDA(1) and EBITDA(1) margin

3Q-17 YTD results reflect better results on Avocado due to higher volumes and prices

 LTM 3Q-17 results reflect better result of avocado due to higher volume and prices, higher volume of shrimp.  2016 results reflects significantly higher volumes of blueberries and higher volumes of shrimps from intensive ponds.  2015 results reflect increasing volumes and higher prices of blueberries, net of lower yield and prices of shrimp, as

well as the significant reduction of administrative (13.2%) and selling expenses (19.1%).

 2014 results reflect greater avocados and grapes volumes, and higher prices of mangos net of one-time increased

administrative expenses, mainly due to advisory fees and personnel expenses.

Source: Company data as of September 2017. (1) Without discontinued operations. 23.5 19.7 34.7 76.6 115.9 16% 10% 15% 28% 34%

0% 5% 10% 15% 20% 25% 30% 35% 40% 0.0 20.0 40.0 60.0 80.0 100.0 120.0

2013 2014 2015 2016 LTM 3Q-17 EBITDA Margin

LTM EBITDA(1) of USD 115.9 million, 52.4% higher than EBITDA 2016.

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5.3

  • 38.7

33.5 64.9 104.7

2013 2014 2015 2016 LTM 3Q-17

Operating Cash Flow (USD million) Net Debt (USD million) Total Equity (USD million) / Debt(2) to Equity (x)

177.8 265.3 226.0 177.0 129.8 4.2x 7.7x 6.0x 2.3x 1.1x

2013 2014 2015 2016 LTM 3Q-17 Net Debt Net Debt / EBITDA

325.7 299.2 310.7 260.1 298.7 0.4 0.7 0.7 1.0 0.6

2013 2014 2015 2016 3Q-17 Equity Debt to Equity

Capex(1) (USD million)

8.3 49.5 18.2 12.5 16.7

8.0 9.2 6.6 9.2 6.8 2.2 6.4 3.8 3.1 4.8

18.5 65.1 28.6 24.8 28.3

2013 2014 2015 2016 3Q-17 Expansion Maintenance & PP PP&E CAPEX (3) Source: Company data as of September 2017. (1) Considers Capex paid and committed. (2) Long term debt. (3) Without discontinued operations.

Financial Highlights

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Cash flow (USD Million) as of September 30th 2017 3Q 17 3Q 16 2016 2015

EBITDA from continued operations 79.7 39.9 76.6 34.4 EBITDA from discontinued operations (0.6) (3.3) (4.1) 8.4 Working Capital Changes 8.2 28.8 24.1 31.0 Interest Expense Net (19.5) (20.6) (23.9) (25.0) Non cash effects 3.8 (7.4) (7.8) (15.3) Net Cash Flow from operations 71.6 37.4 64.9 33.5 Net Cash Flow for Investments (28.2) (16.0) (22.6) (9.8) Net Cash Flow from/(for) Financing (92.1) (16.5) 15.8 (27.6) Net Cash Flow during the period (48.6) 4.9 58.1 (3.9) Cash beginning of the period 84.7 26.6 26.6 30.5 Cash end of the period 36.1 31.5 84.7 26.6

Source: Company data as of September 2017.

As of closing 3Q-17, Camposol generated USD 71.6 MM of operating cash flow and ended with a cash balance of USD 36.1 MM.

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Senior Secured Notes due 2021 89% Mid-term Interbank 7% Other long- term debt 1% Short-term bank debt 3%

0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0

Ene- 13 May- 13 Set- 13 Ene- 14 May- 14 Set- 14 Ene- 15 May- 15 Set- 15 Ene- 16 May- 16 Set- 16 USD MM weighted average cost (effective annual rate) Long term debt: USD 160.9 million Average life: 4.8 year

Funding Mix

Structural debt schedule at closing September 2017. Short term debt (USD MM / weighted average cost).

2013 2014 2015 Short term debt: USD 5.0 million Average life: 1.9 months Source: Company data as of September 2017. (1) Considers long term debt gross of capitalized fees and it.

Total debt(1) breakdown as of September 30th, 2017.

Total debt: USD 165.9 million

2016

0.0 147.5 1.0 0.9 0.0

1.2 5.0 5.3 2016 2017 2018 2019 2020 2021 Senior Notes Other Long-term Debt Mid-term Interbank 2017

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Agenda

3Q 2017 Highlights Company Overview Appendix Financial Review Summary

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International

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Summary

  • Avocado volume sold as of

closing 3Q-17 was 86% higher compared to the same period last year.

  • Blueberry volume sold as of

closing 3Q-17 was 7% higher compared to the same period last year.

  • Camposol certified OHSAS

18000.

  • No impact from El Niño.
  • Shrimp and other seafood

product volume sold as of closing 3Q-17 was 22% higher compared to the same period last year.

  • Higher productivity for

intensive ponds, in line with

  • expectations. No impact

from El Niño.

  • Higher gross margin (14.9%)

compared to the same period last year (8.2%).

  • Third Commercial Office
  • pened in Shanghai-China
  • Sale plan seeks to continue

increasing direct sales to retailers.

  • Camposol obtained the

Walmart’s Supplier of the Year Award in the Produce Category.

Summary

  • YTD 3QH-17 EBITDA(1) of USD 79.7 million, 100.0% higher than the same period 2016.
  • Improving net leverage ratio(1)(2): from 1.9x in 2Q-17 to 1.1x in 3Q-17.
  • As of September 30th, 2017, Camposol maintained a cash balance of USD 36.1 million.
  • Camposol introduces “The Berry that Cares”. It is Camposol’ s proposition to communicate its commitment to the environment,

its communities, workers, and the consumer.

Source: Company data as of September 2017. (1) Without discontinued operations. (2) Net leverage ratio = (Gross debt – cash) / LTM EBITDA(1)

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Agenda

3Q 2017 Highlights Company Overview Appendix Financial Review Summary

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Camposol Foods history development, shifting from a preserved asparagus company into a supplier of fresh and healthy food

10 20 32 49 66 78 104 126 141 123 119 168 183 231 268 289 301

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

2015

 500 hectares of

blueberries planted.

 Preserved business

was discontinued.

 Fist container of

avocado to China.

2016

 460 hectares of

blueberries planted.

 Asparagus business

discontinued.

 Free trade

agreement Peru – China to export blueberries.

 Company operates

50 hectares of intensive shrimp ponds.

2012

 More avocado,

grapes and tangerines are planted.

2014

 500 hectares of

blueberries planted.

 Acquisition of

the majority of shares in INYSA/ABC.

 Conversion of

first shrimp intensive ponds.

2007

 D&C Group

purchases Camposol.

2008

 Implementation of

SAP operating systems.

 1,170 hectares of

white asparagus planted.

 100 hectares of

grapes planted.

2009

 1,662 hectares of

avocados planted. (sales, in USDmm) 2000 – 2016 sales CAGR: 23.7%

1997

 Camposol is

founded after the purchase

  • f 3,075

hectares of arable land.

1999-2006

 Small scale production of

asparagus begins.

 825 hectares of avocados

planted.

 Begins productions and

exports of piquillo peppers.

 Shrimp pond operation and

exports.

2006

 Company

exceeds USD100 million in annual revenues.

2008

 Camposol is listed on the

Oslo Stock Exchange .

2011

 Peru receives

clearance to export avocados to the US.

2010

 Expansion of shrimp

business through purchase of local players.

 351 hectares of

grape planted.

2013

 D&C takeover bid

for all outstanding CSOL shares.

 Squeeze out

approved after D&C bought 90.4%

  • f CSOL
  • utstanding

shares.

 CSOL delisted

from Oslo Børs.

2012

 Successful

issuance of a USD 125 million 9.875% senior unsecured notes due 2017.

2014

 Re Tap, issuance

  • f additional USD

75 million senior unsecured notes.

 Acquisition of the

majority of shares in INYSA/ABC.

2017

 Camposol

successfully made the maturity payment of the

  • utstanding

9.875% senior unsecured notes due 2017.

Operational milestones Financial milestones

2016

 Successful

exchange of 73.75% of

  • utstanding

USD200mm unsecured notes due 2017 (new USD150mm secure notes @10.5% due 2021) D&C Group purchases CSOL Scale: small agro exporter Products: asparagus, avocados, mangos and shrimps Portfolio: preserved asparagus dominance Commercialization: no commercial offices Scale: large agro exporter Products: asparagus, avocados, mangos, grapes, tangerines and shrimps Portfolio: balance between preserved asparagus and fresh products (avocados, etc.) Commercialization: firs commercial office in 2012 Scale: large agro exporter Products: consolidated in blueberries and avocados, ready to expand in shrimps, tangerines and grapes Portfolio: fresh (blueberries and avocados) and frozen (shrimp) dominance Commercialization: two commercial offices (US and Holland) and increasing relation with retailers Growth track record

Constant R&D has been possible due to scale and vertical integration

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 State of the art produce processing and packaging plant in Chao/Viru,

shrimp farms and biotechnology lab in Tumbes.

 100 % traceability of crop harvested, essential for achieving the maximum

food safety certifications.

 Unique competitive advantage given Camposol’s complete and integrated

control over the entire production chain. − Complete flexibility in shifting processing mix (fresh, frozen) as well as volumes produced.

 Additional

value-added through processing allows the Company to maintain higher margins and differentiate its products.

 Opportunity for cost efficiencies and economies of scale at every step of

the value chain. − Company is in the process of automating its production processes, reducing labor costs.

Camposol’s vertical integration allows it to maintain 100% product traceability, significant output capacity and cost savings vis-à-vis its competitors.

Camposol selected certifications

Source: Company data as of September 2017.

Camposol’s production facilities complies with world-class standards.