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 - - 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,
2
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Disclaimer
Agenda
3Q 2017 Highlights Company Overview Appendix Financial Review Summary
4
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
Agenda
3Q 2017 Highlights Company Overview Appendix Financial Review Summary
6
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.”
7
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
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
9
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
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
11
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
Agenda
3Q 2017 Highlights Company Overview Appendix Financial Review Summary
13
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
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.
15
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
16
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.
17
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
Agenda
3Q 2017 Highlights Company Overview Appendix Financial Review Summary
International
19
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)
Agenda
3Q 2017 Highlights Company Overview Appendix Financial Review Summary
21
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
22
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.