H1 2012
2 Disclaimer This document is purely informative and does not intend to be comprehensive. Financial information included in this presentation has been calculated in accordance with International Financial Reporting Standard (IFRS). The financial information has not been audited. We have included in this presentation certain measures that are not measures defined by IFRS. These include EBITDA, EBIT and net debt. These measures, however, should not be used instead of, or considered as alternatives to, our historical financial results based on IFRS. We define EBITDA, a measure used by management to measure operating performance, as profit before financial result, taxes, depreciations and amortizations. We define EBIT as EBITDA less amortizations. This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities in Pescanova, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.
3 Agenda Highlights of the period. Results per business unit. Aquaculture Projects Results. Group financials.
-4- Income Statement Highlights ( m) 2011 Q1 2011 Q1 2012 H1 2011 H1 2012 %YoY Consolidated turnover 1.671 330 351 625 668 6,9% EBITDA 184 34 38 68 77 12,3% Margin (%) 11% 10% 10,9% 10,9% 11,5% EBIT 122 20 23 41 48 17,3% Margin (%) 7,3% 6,2% 6,6% 6,5% 7,1% Profit after tax 50,1 8,6 9,0 15,2 15,7 3,3% Turnover: 668 million up 6.9 % year on year. In consistency with Group s strategy, and improving the growth rate of 2011, turnover outside Spain grew at a 11% rate in H1. The Spanish market, despite of the economic adverse circumstances, has showed stability with a 1% growth as a result of the Pescanova Group s strong position in the seafood sector. Strong performance in Aquaculture in all its projects (Vannamei, Turbot and Salmon) according to projections. Consistent and stable performance in Traditional Business. EBITDA totalled 76.5 million, up 12.3% year on year. (EBITDA margin: 11.5%). Profit after tax of 15.7 million, up 3.3% year on year. Geographical turnover breakdown H1 2012 (, %) Y o Y Growth 11% Other 58% Spain 42% Y o Y Growth 1%
-5- Highlights of the period Consolidated Turnover ( m) 680 670 660 650 640 630 620 610 600 625 Growth: 6.8% 668 H1 '11 H1 '12 EBITDA and EBITDA margin ( m, %) 85 Growth: 12.3% 11,4% 80 75 10,9% 70 65 76,5 60 68,0 55 H1 '11 H1 '12 12% 11% 11% 10% EBIT and EBIT margin ( m, %) 55 50 45 40 35 Consolidated Profit after Tax ( m) Growth:17.3% Growth: 3.3% 15.7 7,1% 7,2% 15.6 15.5 6,8% 6,5% 15.4 15.3 15.7 47,5 6,4% 15.2 41,0 15.1 15.2 6,0% 15 H1 '11 H1 '12 H1 '11 H1 '12
6 Historical performance Consolidated turnover ( m) CAGR: 8.7% (2004-2011) 1800 1600 1400 1200 1000 1,671 1,473 800 1,293 999 600 400 2005 2007 2009 2011 EBITDA & EBITDA margin ( m, %) 200 CAGR: 15.8% (2004-2011) 9.5% 9.0% 150 10.2% 11.0% 100 184 150 122 50 89 0 2005 2007 2009 2011 12% 10% 8% 6% 4% 2% 0% EBIT & EBIT margin ( m, %) 140 120 CAGR: 17.1% (2004-2011) 6.6% 6.9% 5.9% 7.3% 100 80 60 122 102 40 85 59 20 0 2005 2007 2009 2011 8% 7% 6% 5% 4% 3% 2% 1% 0% Consolidated Profit after Tax ( m) 60 50 CAGR: 21.5% (2004-2011) 40 30 50 20 32 25 10 18 0 2005 2007 2009 2011
7 Agenda Highlights of the period. Results per business unit. Aquaculture Projects Results. Group financials.
Results per business unit Group Financials Overview ( m) 2011 Q1 2011 Q1 2012 H1 2011 H1 2012 AQUACULTURE TURNOVER 465,3 95,6 114,9 201,1 241,3 Farmed CRUSTACEANS 293,5 57,8 81,5 121,5 156,8 Farmed FISH 171,8 37,9 30,4 79,7 84,5 TRADITIONAL BUSINESS TOTAL Aquaculture now over 1/3 of Group EBITDA and growing fast EBITDA 63,2 10,4 13,4 28,2 28,8 % 13,6% 10,9% 11,7% 14,0% 11,9% Farmed CRUSTACEANS 29,1 4,7 8,9 10,3 18,6 % 9,9% 8,1% 10,9% 8,5% 11,9% Farmed FISH 34,1 5,7 4,5 17,9 10,2 % 19,8% 15,0% 14,8% 22,5% 12,1% TURNOVER 1.205,3 234,0 236,1 423,8 426,2 EBITDA 120,4 23,9 24,9 39,9 46,7 % 10,0% 10,2% 10,5% 9,4% 11,0% TURNOVER 1.670,7 329,6 351,0 625,0 667,5 EBITDA 183,5 34,3 38,3 68,1 75,5 % 11,0% 10,4% 10,9% 10,9% 11,3% 200 150 100 50 0 m 2007 2008 2009 2010 2011 Traditional Business Aquaculture 8
9 Agenda Highlights of the period. Results per business unit. Aquaculture Projects Results. Group financials.
10 Aquaculture Projects Results Turbot Production (MT) Vannamei Production (MT) Salmon Production (MT) 9,000 8,000 7,000 8,300 60,000 50,000 50,481 6,000 5,000 4,000 3,000 2,000 1,000 2,357 2,591 2,830 3,931 837 2,651 40,000 30,000 20,000 10,000 19,026 18,746 24,394 31,973 11,971 22,440 0 2008 2009 2010 2011 2012 Est. H1 2011 H1 2012 0 2008 2009 2010 2011 2012 Est. H1 2011 H1 2012
11 Agenda Highlights of the period. Results per business unit. Aquaculture Projects Results. Group financials.
12 Consolidated Group Financials Overview CONSOLIDATED BALANCE SHEET PESCANOVA GROUP ( m) 2011 H1 2012 Fixed Assets 1.120 1.123 Current Assets 1.156 1.145 Inventories 677 690 Biological inventories 260 282 Other Inventories 417 408 Total Assets 2.276 2.267 The Group maintained a Capex to depreciation ratio of approximately 1.0x, allowing the coverage of maintenance Capex and growth Capex. Most of the increase in Capex is related to aquaculture projects (vannamei shrimp and salmon). The production growth in aquaculture requires an increase in stocks as salmon, in particular, takes time to mature. Placement of a new convertible bond issue ( 160 m), maturity date 2019, part of the proceeds, 60 million, were used to buy back previous convertible bonds. Improvement of free cash flow trend in spite of strong growth process. Net Worth (Equity) (1) 643 644 Long term Liabilities 813 805 Current Liabilities 820 818 Trade creditors 487 492 Total Equity + Liabilities 2.276 2.267 (1) Net worth includes capital grants Cash Flow Statement figures ( m) 2011 1H '11 1H '12 Profit after tax 51 15 16 Amortisation 62 28 29 Other result adjustement -9 4-4 Working Capital variation -192-93 -6 Cash Flow from operations -89-46 35 Net Investments in Capex -69-26 -31 Debt disposition / amortisation 166 64 7 Dividends -10-10 -11 Other 13-14 -14 Cash Flow from Financing activities 169 40-18
Pescanova s Aquaculture Projects Integrated structure: The Pescanova Group has its own integrated structure that guarantees the traceability of the product, from the hatchery, grow-out farms, feed processing, harvest, product processing to storage. Shrimp Salmon Tilapia Turbot Consolidated Fixed Assets reflect major investments ( m) 1200 1.129,6 1.120,1 1.122,6 1000 800 600 640,7 846,9 Major investments over the last years: major investments in vertically integrated aquaculture as a diversification strategy in farming projects 400 2005 2007 2009 2011 H1 2012-13-
14 Group Financials Overview NFD*, NFD / EBITDA ( m, %) 800 700 600 500 400 300 4,2x 3,6x 3,4x 583 545 555 3,8x 3,7x 691 714 3,1x 594 4,0x 3,5x 3,0x NFD**, NFD / EBITDA ( m, %) 1200 1000 800 600 400 5,5x 5,0x 4,8x 761 755 785 5,2x 5,0x 947 960 4,4x 840 6,0x 5,0x 4,0x 3,0x 2,0x 200 100 0 2008 2009 2010 2011 H1 2012 Proforma Net financial debt excluding non-recourse debt Proforma shows the effect of the recent increase in capital 2,5x 2,0x 200 0 2008 2009 2010 2011 H1 2012Proforma ** Total Net Financial Debt Proforma shows the effect of the recent increase in capital 1,0x 0,0x Net worth evolution ( m) 800 750 700 650 600 550 500 450 400 350 300 250 200 306 353 2005 2007 2009 2011 Proform Net financial debt to Ebitda is calculated taking into account EBITDA from Jun-11 to Jun-12 Proforma shows the effect of the recent increase in capital 570 643 764
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