Haikui Management Presentation

Haikui Seafood AG Management Presentation

April/May 2012

IMPORTANT NOTICE

2

This presentation was prepared by Haikui Seafood AG solely for use at the management presentation held in connection with the contemplated offering of shares of

Haikui Seafood AG. It is furnished to you solely for your information, should not be treated as giving investment advice and may not be copied, distributed or otherwise

made available to any other person by any recipient. The contemplated offering and the information disclosed in this presentation should be kept confidential until

publicity disclosed by Haikui Seafood AG.

The selected facts and information contained in this presentation are as up to date as is reasonably possible and are subject to revision in the future. Neither Haikui

Seafood AG nor any of its directors, officers, employees or advisors nor any other person make any representation or warranty, express or implied, as to the accuracy

or completeness of the information contained in this presentation or shall have any liability whatsoever for losses howsoever arising, directly or indirectly, from any use

of this presentation.

This presentation may contain forward-looking statements, which involve risks, uncertainties and assumptions that could cause actual results or events to differ

materially from those expressed or implied by the forward-looking statements. These forward-looking statements reflect Haikui Seafood AG’s current expectations and

projections about future events and may be identified by words such as “expectation” or “target” or “forecast” and similar expressions, or by their context. These forward

looking statements are made on the basis of current knowledge and assumptions. Various factors could cause actual future results, performance or events to differ

materially from those described in these forward-looking statements. No obligation is assumed to update any forward-looking statements.

The following information does not constitute either an offer for the sale or the solicitation for making an offer for the purchase or the subscription of shares in Haikui

Seafood AG, but serves exclusively information purposes. Any potential future offering of shares will only be conducted on the basis of a securities prospectus to be

approved by the German Financial Supervisory Authority (BaFin). Potential investors should base their investment decision solely on such securities prospectus.

The following information may only be distributed in other jurisdictions in compliance with the respective local regulations and persons who come into possession of this

information have to inform themselves about the local regulations and have to obey them.

1/ INTRODUCTION

2/ MARKET AND COMPETITION

3/ CORPORATE PROFILE

4/ STRATEGY

5/ FINANCIAL PERFORMANCE

6/ OFFERING

APPENDIX

3

CONTENTS

1/ INTRODUCTION:

Management Team

4

• Founder and majority shareholder (56.6%), third generation in the seafood business

• Responsible for overall management and corporate development

• More than 20 years of management experience in the seafood industry

• Vice Chairman of the All-China Federation of Industry & Commerce – Aquatic Industry

• Joined as Deputy General Manager in 1997

• Responsible for corporate administration and operations

• Executive Member of the Dongshan County Chamber of Commerce

• More than 15 years of general management experience in the seafood industry

Mr CHEN Zhenkui // Executive Chairman/ CEO (52)

Mr HUANG Zhenping // Executive Director/ COO (48)

• Joined Haikui in 2007

• Responsible for financial reporting, treasury, compliance and investor relations

• More than 15 years experience in finance, banking and general management in international organisations (Shanghai

TREFFERT Special Coatings, Standard Chartered Bank, DBS Bank)

• Member of the Association of Chartered Certified Accountants (ACCA)

• Native English & Chinese speaker

Mr Alan GEY // Executive Director/ CFO (40)

Source: Company information

Well respected and committed team with long-standing industry expertise …

5

• German national

• Chairman of the Board of the Seafood Information Centre in Hamburg

• Former Managing Director and shareholder of Pickenpack – Hussmann & Hahn Seafood GmbH

• Former Member of the Executive Board of FROSTA AG

• Former Deputy Chairman of the Federal Association of the Fish Producing Industry in Germany

• Singapore national, native Chinese and English speaker

• Managing Partner of Zana Capital, a private equity fund management company, managing two of Haikui’s shareholders –

Mega Bond International and Everswift Holdings

• More than 15 years of experience in business management and operations, as well as the implementation and management

of joint ventures and direct investments

• German national

• Current Chairman of the Supervisory Board of Joyou AG, a Chinese designer, producer and distributor of faucets and other

sanitary ware products, listed in the Prime Standard of the Frankfurt Stock Exchange (IPO 2010)

• Former Member of the Management and Supervisory boards of Friedrich Grohe AG

Dr Klaus VIETEN // Chairman of the Supervisory Board

Dr Rainer SIMON // Deputy Chairman of the Supervisory Board

Mr Hock Eng CHAN // Member of the Supervisory Board

1/ INTRODUCTION:

Supervisory Board

… and strong dedication to corporate governance


Major seafood processor in China with excellent access to raw material and established distributors worldwide

1/ INTRODUCTION:

Haikui at a Glance

6

• Seafood processor with a total portfolio of more than

100 frozen and canned seafood products

• Founded: 1993

• Processing plants: Dongshan, Fujian province, China

Haikui Seafood

• Access to diversified supplier base (both aquaculture and

capture fishing)

• Close co-operation with suppliers based on framework

agreements

• Cold storage capacity of approx. 15,000 tonnes

Procurement

• Primary and secondary processing of seafood

• All steps from inspection of new raw material to quick-

freezing, packaging and warehousing of finished products

• Annual processing capacity of 28,543 tonnes (Output)

• Compliance with international food quality standards

Business

• Diversified customer base, incl. 86 overseas and 21

domestic distributors

• Core markets served are Europe, USA, Asia and China

• Top seafood exporter in Fujian province since 2008 with

more than 10 years of solid export track record

Distribution

Summary overview Key figures

€m 2009 2010 2011

Revenue 94.5 126.2 152.1

% growth 60.9% 33.5% 20.5%

EBITDA 20.5 27.1 35.4

% margin 21.7% 21.5% 23.3%

Net profit 18.0 23.3 28.3

% margin 19.1% 18.5% 18.6%

Avg. permanent employees 366 430 605

Avg. temporary contract workers 1,438 1,475 1,589

Avg. total employees incl. temporary

contract workers 1,804 1,905 2,194


Seafood which has undergone cleaning, cutting,

scaling, seasoning, drying and/ or cooking

before packing into cans and heat sterilisation

Seafood which has undergone cleaning, cutting,

scaling, seasoning, drying, grilling and/ or cooking

before quick-freezing

7

Frozen Seafood

(88% of revenue 2011: €133.7m)

Canned Seafood

(12% of revenue 2011: €18.4m)

• Shelled crab meat

• Cut crab

• Whole crab

• Crab cake

• Stuffed crab

• Pasteurised crab

• Shelled prawn meat

• Partially-shelled prawn

• Whole prawn

• Dried prawn

• Prawn ball

• Breaded prawn

• Shrimp rolls

• Sliced fish meat

• Fish fillet

• Fish paste

• Fish balls

• Fish noodle

• Fish cake

• Breaded fish fillet

• Dried fish meat

• Whole fish

• Grilled eel

• Dried cuttlefish/ squid

• Cuttlefish balls

• Seafood rolls

• Breaded squid rings

• Sliced octopus/ squid

• Squid fillet

• Whole octopus/ squid

• Breaded oyster

• Mussel, oyster, scallop

and clam meat

• Tuna meat (in vegetable oil, tomato sauce or brined)

• Mackerel (in vegetable oil or tomato sauce)

• Sardines (in vegetable oil or tomato sauce)

• Spicy snapper

• Canned eel

• Canned abalone

1/ INTRODUCTION:

Product Portfolio

Broad and well-diversified product portfolio with more than 100 high quality seafood products


Crab

Prawn

Fish

Others

Fish & Others

88%12%

8

1/ INTRODUCTION:

Key Investment Highlights

Haikui presents a compelling equity story ... netting value from a sea of opportunities

Well positioned to exploit growth opportunities in China and globally

Strong domestic and international reputation as a high quality manufacturer

Strategic location in Dongshan with diversified access to high quality raw materials

Multi-species product offering and strong domestic and international distribution base

Committed management team with long-standing industry expertise

Track record of high growth, profitability and cash generation

Highly flexible organisation with efficient processing capabilities

Abundance of qualified local workforce at low cost in combination with low fluctuation

1/ INTRODUCTION



4/ STRATEGY


6/ OFFERING

APPENDIX

9

CONTENTS

89.5

91.4

93.2

95.1

98.499.5

101.4

103.4

105.8

108.2

109.8

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20071.3

1.4

1.8

2.1

2.1

2.2

2.4

2.5

2.7

2.9

5.5

6.0

7.4

7.7

35.4

Egypt

Italy

Spain

Thailand

France

Vietnam

Bangladesh

Korea

Russia

Philippines

Indonesia

India

United States

Japan

China

2/ MARKET AND COMPETITION:

Global Seafood Consumption

10

Global seafood consumption 1997-2007 Total seafood consumption by country in 2007

CAGR 2.1%

(in m tonnes) (in m tonnes)

Steadily growing global seafood consumption

Source: FAO, FAOSTAT

0

10

20

30

40

50

60

70

80

19

61

19

63

19

65

19

67

19

69

19

71

19

73

19

75

19

77

19

79

19

81

19

83

19

85

19

87

19

89

19

91

19

93

19

95

19

97

19

99

20

01

20

03

20

05

20

07

Japan

China

North America

Europe

Asia

World

South America

26.5

35.9

2007 2020e

16.7

17.1

2007 2020e

11

Source: FAO, FAOSTAT, International Food Policy Research Institute (IFPRI)

1 FAO’s consumption statistics based on a “disappearance model” using supply quantities: Captures + Aquaculture + Imports - Exports + ∆ Stocks - Non food uses

2 According to China’s National Statistics Bureau (NSB), seafood consumption per capita in China amounted to 9.3kg in 2007 (9.7kg in 2009)

Seafood consumption by region 1961-20071 Seafood consumption forecast

(in kg/capita)

Δ = +2%

Δ = +35%

World

China


Global Per Capita Seafood Consumption

2007

26.5

24.0

18.3

8.9

20.6

60.8

16.7

(in kg/capita)

2

Growth to continue globally – expected to be particularly strong in China

Rapid growth of income

and urbanisation in

China from the early

1980s to late 1990s

21,781

31,838

27,359

15,581

23,898 24,292 22,944

17,71319,946

17,064 16,56619,109

Fujian Shanghai Zhejiang Hainan Guangdong Tianjin Jiangsu Liaoning Shandong Guangxi Hubei Nationwideaverage

Disposible income value 2010 (RMB/capita)

1000

818

714

670 658

444422

364

322293

267

327

Seafood product expenditure 2010 (RMB/capita)


Seafood Expenditure by Province in China

Top provinces and municipalities in terms of expenditure value per capita on seafood products in 2010

12

Source: USDA Foreign Agricultural Services

Disposable income rank

7 1 3 21 5 4 6 9 8 12 16

Per capita seafood consumption is highest in coastal regions and areas with high

disposable income – Fujian is the #1 province in terms of per capita seafood expenditure


Key Market Drivers

13

Source: FAO, FAOSTAT, International Monetary Fund, China’s National Statistics Bureau (NSB), USDA Foreign Agricultural Services, Company information, Euromonitor

Sustained market trends driving growth of processed seafood demand

Rising affluence in China

Rising urbanisation in China

Preference for processed seafood in inland provinces

Growth of processed seafood consumption

in China

Rising health awareness globally

Growth of fresh and processed seafood consumption

globally and in China

• High nutritional balance of seafood

• Excellent source of affordable high-quality animal protein

• Dynamic economic growth, now driven by rising domestic demand

• Rapid increase in disposable income

• Rise of the middle class

• Scarcity of fresh seafood, due to geographic isolation and under-developed distribution systems

• Longer shelf life of processed seafood

• Hectic urban lifestyle leads to shift in preference from fresh to processed, ready-to-eat seafood

• Higher importance of retail formats, e.g. supermarkets or hypermarkets

East China Sea

Major player in a very fragmented Chinese seafood processing industry

Source: Company information, USDA Foreign Agricultural Services

14


Seafood Processing Industry in China

China –

the world’s #1 seafood

processor

Very fragmented

industry landscape

• Industry benefits from

- huge and growing domestic seafood production

- low labour costs

• 9,762 processing facilities with a capacity of 23.9m tonnes (2010)

• Trend towards industry consolidation

• Out of 10m tonnes of frozen processed seafood products in 2010,

Haikui captured a share of approximately 0.2%

Regional industry

concentration

• Seafood processing hubs in major seafood production regions

• 67% of processing facilities concentrated in Zhejiang, Shandong,

Fujian and Guangdong provinces (2010)

• Major seafood re-processing industries are based in Shandong and

Liaoning provinces

Increasing barriers

to entry

• High (working) capital requirements

• Stricter food quality and safety control

• Long due diligence procedures by distributors

• Access to sufficient supply of raw material

Haikui’s competitive

positioning

• Top seafood exporting company in Fujian province since 2008

• Largest seafood processor in Fujian province in 2011 (in terms of

sales and export statistics)

• Top 10 seafood company in China

• Main competitors from Fujian, Guangdong and Zhejiang provinces

Guangdong

Zhejiang

Fujian

Shandong

Processing

trade hub

South China Sea

Yellow Sea

Liaoning

15

Haikui’s share of PRC retail sales1

Source: Company information, Euromonitor

1 Market definition: Domestic retail sales of frozen processed and canned/ preserved seafood

(including processed, packaged and branded seafood products with additional ingredients)

(calculation based on RMB value terms)

2.9%

4.9% 4.8%5.2%

2008 2009 2010 2011


Market Share Analysis

Haikui captures a higher share in a growing market

(in RMB m) CAGR 9.3%

Sales of processed seafood1 in PRC: Value 2006-2016e

CAGR 9.3%

5.370 5.845 6.484 6.868 7.4478.379

9.16010.008

10.92511.936

13.058

2006 2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e 2016e

Haikui’s positioning in the (domestic) PRC market

• Key market drivers result in strongly growing consumption of

processed seafood in China

• Consequently, Haikui has put more effort into strengthening its

own Haikui brand and addressing demand in the PRC

• As a result, Haikui has significantly increased its share in the PRC

consumer market for processed seafood from 2.9% in 2008 to

5.2% in 2011

Active in Revenue

2011

(€m)

EBIT

2011

(€m) Main products

Regional focus

Production Processing Domestic Export

Dalian Zhangzidao Fishery 326.6 68.8 Frozen and ready-to-eat (scallop, squid, prawn),

sea urchin, sea cucumber, conch

Shandong Oriental Ocean Sci-Tech 83.8 9.8 Dried and fresh shrimp, instant scallop, squid, hoki chop,

sea cucumber, fish seedlings, larval rearing

Ningbo Jinri Food (Ningbo Today

Food)

n.a. n.a. Tuna, oysters, mackerel, sardines, fresh vegetables,

frozen fruits, meat, poultry, pet food

Dongshan Rongfeng Food n.a. n.a. Crab, surimi, shrimp, tilapia, salmon, clam, pollock,

grouper

Dong Xing Aquatic Product

Processing (Taiwan Chii Chwan

Group)

n.a. n.a. Prepared food (tuna and shrimp spring roll, cuttlefish ball

and filet), frozen seafood (tuna, moonfish, swordfish),

canned seafood (tuna and mackerel), snack food (squid,

eel, cuttlefish)

Longhai Gelin Seafoods

(Fujian Gelin Food Industry Group)

n.a. n.a. Canned seafood (crab, oyster, eel and clam meat),

frozen seafood (skate, sand borer, cod, tilapia, squid,

shrimp), frozen & dried fruits & vegetables

Dongshan County Dongya Aquatic

Product

n.a. n.a. Fresh and frozen packaged fish

Zhanjiang Guolian Aquatic Products 145.6 2.2 Shrimp, fish, squid

Guangdong Hengxing Group n.a. n.a. Frozen roasted eel, frozen eel, smoked eel

Source: Company websites, Capital IQ; calculated on basis of average exchange rates

1 LTM figures as of 30 September 2011

2 LTM figures as of 30 September 2010

16


Selected Competitors

Competitive edge over its main competitors due to multi-species strategy

Guangdong

Zhejiang

Fujian

Shandong

Liaoning

17

1/ INTRODUCTION



4/ STRATEGY


6/ OFFERING

APPENDIX

CONTENTS

3/ CORPORATE PROFILE:

Haikui’s Strengths within the Value Chain

18

Distribution Supply of

raw materials Processing

Highly flexible, low-cost

organisational structure 4.

Track record in expanding

capacity and product range 5.

High quality standards 6.

Priority access to raw

materials and stringent

quality control

2.

Strategic location in

Dongshan 1.

Diversified sourcing and

sufficient storage capacity 3.

Flexible and efficient organisation, well adapted to the prevailing market environment

Strong diversification 7.

Well recognised “Haikui”

brand 9.

“One-stop-shop” 8.

Un

iqu

e S

ellin

g P

oin

t

Covered by Haikui

Guangdong

Shandong

Fujian

South China Sea

East China Sea

Yellow Sea

Dongshan Island

Source: Company information, FAO, USDA Foreign Agricultural Services 2011

Taiwan

Top seafood producing provinces in China (2010)

19

Jiangsu

Zhejiang Hubei

Guangxi

Liaoning Top 8 seafood producing provinces

Haikui’s main procurement areas


Strategic Location

Strategic location in Dongshan with excellent access to sustainable sources of high quality raw materials

Strategic advantages – current

Strategic advantages – future potential

Development of the Dongshan National Seafood Economic

Zone (“DNSEZ”) and international marine port

DistributionSupply of

raw materialsProcessing

• Access to a variety of species due to location between East

and South China Seas

• High water quality, no heavy industries nearby

• Stable, cost-competitive and sustainable supply due to

ready access to both capture fishing and aquaculture

• Abundance of local skilled workers at relatively low costs, no

dependency on migrant workers

• No competing industries for local workforce

• Well-positioned to benefit from improving relations between the

PRC and Taiwan due to proximity to Taiwan

• Access to more abundant and new species from coastal and

international waters will reduce impact from fishing restrictions

and supply side seasonality

• Further improvement of logistics infrastructure

1.

14.6% 13.6% 11.0%

8.9% 8.6% 8.0% 6.2% 5.1%

24.1%

20


Procurement




1 In Fujian province, restrictions on the trawling net fishing method are imposed from 15 May to 31 July.

From 1 May to 30 June, fishing restrictions apply to the stationary fishing method

Supply-side seasonality and price volatility mitigated through diversified sourcing, framework agreements and sufficient cold storage facilities

• Framework supply agreements with

61 suppliers

• Total advance payments to suppliers as a

percentage of total purchase made in the

previous year is approx. 10% 15,000

8,000

15,000

2009 2010 2011

• Diversified sourcing mix in terms of

no. of suppliers, regions and type of

sourcing

• Protection against potential diseases

of species due to multi-species

offering

Capture fishing

59.3%

Aquaculture farms

40.7%

Supplier structure

• Raw materials sourced from 84 suppliers

during 2011

• Mainly from Fujian and Guangdong

provinces

• Both capture fishing and aquaculture

Breakdown of revenues by type

of source in 2011

• Priority access

• Up to 5% discount to market price

• Quality control through supervision of

farms

• Long-term relationships

• Sufficient cold storage capacity

• Potential for price arbitrage

Framework supply agreements Cold storage capacity

2./3.

21

• Majority of seafood products manufactured in-house

• Processing mostly manual, resulting in higher recovery

rates and quality of finished products compared to

machine processed seafood

• Total processing capacity of 28,543 tonnes p.a. (Output)

• Cold storage capacity of 15,000 tonnes p.a.

Crab processing line Prawn processing line

Fish processing line

Quality control

Canning line

Packing

Comments


Processing Capabilities

Business seasonality accomodated by flexible and efficient processing capabilities at low cost

Processing overview



Efficient processing capabilities

• Large number of qualified temporary contract workers

(1,589 in 2011)

• Abundant access to skilled local workers at low cost, no

competing industries

• Haikui is considered an attractive and reliable employer

• No dependency on migrant workers that might move to other

regions in China

Highly flexible organisation at low cost


4.

22

2,520 2,520 2,520 2,520 2,520 2,520

1,008 1,008 1,008 1,008 1,008 1,0081,440 1,440 1,440 1,440 1,440 1,440

13,200 13,200 13,200 13,200 13,200

839

5,035 5,035 5,035 5,035 5,035

445

5,340 5,340

8,200

2007 2008 2009 2010 2011 Current

Newly acquired

assets (2010)

Canning machinery

Quick freezing

rooms

Quick freezing plate

machinery

Crab quick freezing

plate machinery

Quick freezing roller

machinery

Completion of new

quick-freezing room

in October 2007

New canning

production line

Σ 14,007 Σ 23,203 Σ 23,203 Σ 23,648

Development of pro-rata processing capacity 2007-today

New processing factory

for grilled and frozen

seafood products

(Output in

tonnes) Σ 28,543


Capacity Expansion

Continuous expansion of processing capacities and product portfolio to meet growing demand




5.

Σ 28,543


Quality Control System

23

Internal quality control system International certificates and accreditations

HACCP verification certificate (US)

- Allows products to be exported to the US

- Awarded since 10/2000

EU Registered Exporter of Seafood Products (EU)

- Allows products to be exported to the EU


ISO 22000:2005 Certification

- Demonstrates quality of food safety management


Halal Certificate (Islamic countries)

- Allows products to be consumed by Muslims


Stringent control procedures to comply with high international quality standards

Incoming

In-process

Final



Compliance with international food quality, safety and hygiene

standards allows export to overseas regions (reviewed on a

regular basis)

Strict quality control procedures to safeguard high quality of end

products and compliance with relevant standards


6.

31.9%68.1%

24

Top 3 customers 2009-2011

(in % of total revenues)


Customer Network of Distributors

15.4%

23.4%22.6%18.3%

20.7%

13.2%

10.7%

11.7%

11.2%

2009 2010 2011

Top 3 customer

Top 1 customer

Top 2 customer

Σ 49.2%

Σ 54.8%

“One-stop-shop” with multi-species product range for a diversified network of distributors



Long-standing relationships with key distributors

No “real” dependency on any particular distributor, as sales can

easily be shifted between distributors

High flexibility to easily shift sales between global regions and to

react to changing economic conditions

Haikui’s distribution channels (2011)

“One-stop-shop” for distributors due to multi-species product

range


1 Also includes 0.1% of direct sales to local corporates

2 Orders made by Buying Agents, but Haikui then delivers goods and invoices directly to international distributors; Buying Agent receives commission from the international distributors

• Sales mostly white label and free

on board (FOB)

• Main markets: Taiwan, US and

Europe

• Sales under both white label and

“Haikui” brand

• Main distributors primarily based

in Fujian province

• Retail customers: e.g. Carrefour,

Tesco, Trust-Mart (Haoyouduo),

NHD-Mart (Xinhuadu)

Sales via Buying

Agents2

86 Overseas

distributors

Local overseas customers

21 Domestic distributors

Local PRC customers

PRC Overseas

1

Local distributors, supermarkets, restaurants, hotels, etc.

7./8.

Σ 43.2%

19,055

22,719

129,397

75,489

99,268

26,951

2009 2010 2011

Third party brand Haikui brand

Revenue breakdown by product brand 2009-2011 (in T€)

25

Haikui was awarded

“China Famous

Brand” status in 2009

Participation in major

national and

international industry

exhibitions and

conferences to secure

new orders and/ or

expand Haikui’s

distribution network (e.g.

European Seafood

Exposition in Brussels,

International Boston

Seafood Show, China

Fishery and Seafood

Expo Exhibition)

CAGR 9.2%

CAGR 30.9%


Branding

Well-established “Haikui” brand to leverage on and further penetrate domestic market




9.

26

1/ INTRODUCTION



4/ STRATEGY


6/ OFFERING

APPENDIX

CONTENTS

27


GEOGRAPHICAL EXPANSION

PRODUCT EXPANSION

4/ STRATEGY:

Strategic Cornerstones

Expansion of

processing

capacity

1

Expansion of

supply base

2

Expansion of

product

development

initiatives

3

Domestic PRC market

1

Overseas markets

2

I. II.

Growth strategy with strong focus on capacity expansion


Chongqing

Flagship store set-up and operation:

• Set up and operated by local distributors

• Common Haikui design applied to each store

(uniform branding) to promote corporate identity

• Haikui pays for rent and renovation (incl. buying

cold storage facilities/refrigerators)

• Operator pays for labour and running costs; Buys

and sells “Haikui” branded products in the store

Sichuan

Fuzhou

Shanghai

Beijing

Dongshan Island

Taiwan

28

Overseas market Domestic PRC market

Growth in Taiwan

Further penetration of Europe and USA

• Leverage first mover advantage

in doing business with Taiwan

and further exploit

- close proximity

- lower processing costs

- better relationship between

PRC and Taiwan

• Benefit from growing global

demand

• Strengthen Haikui’s high-quality

reputation

• Leverage international export

accreditations

2 1

4/ STRATEGY:

I. Geographical Expansion

Global approach with stronger penetration of domestic market

Vorlage, bitte nicht löschen

Expansion of distribution network

6 branded flagship stores within the next 3 years

-Focus is on generating brand awareness

-Centres of main cities of target regions

-Average size of a flagship store: 30-50 sqm

Appointment of exclusive regional distributors

-Regional distributors with track record

-Focus is to distribute “Haikui” branded products

-Greater focus on inland parts

• Proven concept in the industry and in China

• Build brand and protect/ improve margins

• Expand distribution network and regional

footprint throughout China

• Intensify collaboration with distributors on

an exclusive basis

1

2


GEOGRAPHICAL

EXPANSION

I.

Guangdong

Henan

Gui Zhou Xiamen

Yunnan

29

Expansion of supply base Expansion of processing capacity 2 1

4/ STRATEGY:

II. Product Expansion

Vorlage, bitte nicht löschen

Expansion of product

development initiatives 3

Strengthen existing supply relationships

• Increase order volumes

• Deepen co-operation with

aquaculture farms

Access new suppliers

• Additional framework agreements

• DNSEZ roll-out

• New international suppliers

• New R&D equipment

• Recruitment of highly skilled R&D

personnel

• Research activities with external

researchers

• Adding capacity

Upgrade of existing facilities

• Improve efficiencies

• Increase overall output

New construction

Capacity expansion to participate in rising demand

Expand sales through doubling of processing capacity within the next three years

• Build new factory within the next 3

years

• Replacement

• Increased automation


PRODUCT

EXPANSION

II.

30

1/ INTRODUCTION



4/ STRATEGY


6/ OFFERING

APPENDIX

CONTENTS

31

5/ FINANCIAL PERFORMANCE:

Key Performance Indicators

Strongly growing and highly profitable business

Revenue (€m) Gross profit (€m)

152.1

94.5

126.2

2009 2010 2011

EBITDA (€m) Net profit (€m)

+ 33.5%

+ 20.5%

18.0

19.1%

18.5% 18.6%

2009 2010 2011

Net profit Margin

CAGR 26.8%


28.3

Tax rate 10% 11% 12% 25%

2012ff

23.4

86.2114.3 133.7

8.3

11.918.4

2009 2010 2011

Frozen seafood Canned seafood

32

Revenue by product (€m)

+33%

+ 43%

+ 55%

+ 17%


Revenue Breakdown

Revenue by type of raw seafood (€m)

18.4 27.256.7

41.354.7

36.014.2

24.643.7

20.7

19.8

15.7

2009 2010 2011

Crab Prawn Fish Others

+ 73%

-4%

- 21%

+ 78%

+48%

+ 32%

-34%

+ 108%

Revenue by product brand (€m)

75.599.3

129.419.1

27.0

22.7

2009 2010 2011

Third party brands Haikui brand

+ 31%

+ 41%

-16%

+ 30%

Revenue breakdown by region (%)

Balanced product mix and geographic diversification to counterbalance fluctuating demand


33

• No default in debtor payments in 2009-2011

• Other (non-)current assets mainly consist of

advances to suppliers made in the context of

supply framework agreements

Comments

(FYE 31 December, in T€)


Balance Sheet

Quarterly revenue development

26.3%

33.4%

17.9%18.5%

17.1%

22.4%20.6%

17.8%

30.6% 28.8%

30.3%

36.3%

2009 2010 2011

Q1 Q2 Q3 Q4

(as % of total yearly revenue; based on RMB figures)

Solid capital structure, mainly affected by working capital requirements

Balance sheet

2009 2010 2011

ASSETS 57,330 88,449 124,916

Non-current assets 7,997 20,258 18,003

Thereof: Other non-current assets 1,841 3,056 1,067

Current assets

Thereof: Cash and cash equivalents

49,333

14,918

68,191

14,951

106,913

25,587

Thereof: Inventories 13,648 15,317 23,892

Thereof: Trade receivables 18,287 32,916 47,572

Thereof: Other current assets 945 1,806 7,493

EQUITY AND LIABILITIES 57,330 88,449 124,916

Equity 50,431 80,282 116,272

Loans and borrowings 3,768 4,206 2,283

Current liabilities 3,131 3,961 6,361

Thereof: Trade payables 630 1,486 1,535

Net working capital 32,250 48,553 77,422

Net working capital as % of total revenue 34.1% 38.5% 50.9%

Net cash 11,150 10,745 23,304


34

Cash flow used in investing activities 2009-2011 (in T€) Cash flow from operating activities 2009-2011 (in T€)


Cash Flow and Capital Expenditure

Acquisition of new

processing factory

for grilled and frozen

seafood products

(c. EUR 10.3m)

High cash generation, capex driven by capacity expansions


35

1/ INTRODUCTION



4/ STRATEGY


6/ OFFERING

APPENDIX

CONTENTS

6/ OFFERING:

Facts & Figures

36

Issuer Name Haikui Seafood AG

Class of shares No par value ordinary bearer shares

Total number of shares (pre-IPO) 10,000,000 shares

ISIN / WKN / ticker symbol DE000A1JH3F9 / A1JH3F / H8K

Trading marketplaces Xetra; Frankfurt Stock Exchange

Market segment Regulated Market, Prime Standard (IFRS)

Joint Lead Managers and Joint Bookrunners BankM – biw AG, Pareto Securities AS

Coverage BankM – biw AG, Pareto Securities AS

Selling agents Cortal Consors, DAB bank, flatex, ING-DiBa, S-Broker, ViTrade

Total number of shares (post-IPO) Up to 11,500,000 shares

Offering Up to 1,500,000 no par value ordinary bearer shares from a capital increase

Additionally up to 225,000 shares from existing shareholders (Greenshoe option)

Offering price EUR 10.00 – EUR 13.00

Offering period 24 April – 10 May 2012

International Roadshow 24 April – 10 May 2012

First day of trading 15 May 2012 (expected)

Lock-up 12 months (hard and soft lock-up)

Designated sponsor BankM – biw AG

6/ OFFERING:

Shareholder Structure

37

Shareholder Number of shares Shares in %

Haida Holdings Pte. Ltd. 5.656.588 56,57%

Mega Bond International Limited 3.542.918 35,43%

Palm Cove International Limited 300.247 3,00%

Praise Ocean International Limited 300.247 3,00%

Everswift Holdings Limited 180.000 1,80%

Alan Gey 20.000 0,20%

Mr. She Dongpeng 0 0,00%

Free Float 0 0,00%

Total 10.000.000 100%

Shareholder Number of shares Shares in %

Haida Holdings Pte. Ltd. 5.356.588 46,58%

Mega Bond International Ltd. 3.335.496 29,00%

Palm Cove International Ltd. 282.669 2,46%

Praise Ocean International Ltd. 300.247 2,61%

Everswift Holdings Ltd. 180.000 1,57%

Alan Gey 20.000 0,17%

Mr. She Dongpeng 300.000 2,61%

Free Float 1.725.000 15,00%

Total 11.500.000 100%

38

6/ OFFERING::

Use of Net IPO Proceeds


General working capital

25% - 45%

Partial financing of new factory construction

55% - 75%

39

1/ INTRODUCTION



4/ STRATEGY


6/ OFFERING

APPENDIX

CONTENTS

40

APPENDIX 1:

Why Listing in Germany?


Fast listing process in Germany versus long lead time and high regulatory uncertainty related to a listing in China 1.

Access to long-term oriented and sophisticated European institutional investors with strong expertise and interest in

emerging markets and the food sector 2.

High transparency and corporate governance requirements in Germany reinforcing high quality and safety

standards as well as professionalism of Haikui 3.

Prestige and credibility of a German listing vis-à-vis customers, suppliers, government and banks in China due to

Germany’s strong reputation in China 4.

Higher public and media visibility of Chinese IPOs in Germany 5.

41

Corporate structure Current shareholder structure (pre-IPO)

Haikui Seafood AG

Hamburg/ Germany

(founded in 02/2011)

100%

100%

Fujian Dongshan Haikui Aquatic Products

Group Co. Ltd.

Dongshan/ PRC


China Haikui Pte Ltd.

Singapore


Group operating company

• Funds managed by Zana Capital are shareholders of

Mega Bond and Everswift which hold a total share of

37.2% in Haikui Seafood AG

• Mega Bond as a strategic partner is invested since 2007

APPENDIX 1:

Corporate Group Structure


Haida Holdings

(CEO): 56.6%

Mega Bond: 35.4%

Everswift Holdings: 1.8%

Mr Alan GEY (CFO): 0.2% Praise Ocean (COO): 3.0%

Palm Cove: 3.0%

http://upload.wikimedia.org/wikipedia/commons/f/fa/Flag_of_the_People's_Republic_of_China.svg

http://upload.wikimedia.org/wikipedia/commons/b/ba/Flag_of_Germany.svg

42

APPENDIX 2: FINANCIAL STATEMENTS

Consolidated P&L 2009 – 2011


China Haikui Pte Ltd - Consolidated income statement(FYE 31 December)

Audited Audited Audited

In T€ 2009 2010 2011

Revenue 94,544 126,219 152,116

Cost of sales (72,524) (96,360) (114,203)

Gross profit 22,020 29,859 37,913

Other income 497 617 285

Distribution cost (778) (983) (1,596)

Administrative expenses (1,773) (1,696) (2,582)

Other operating expenses (44) (41) (48)

Profit from operations 19,922 27,756 33,972

Finance (expenses) / income, net 219 (1,342) (1,613)

Profit before income tax 20,141 26,414 32,359

Income tax (2,126) (3,057) (4,026)

Profit for the year 18,015 23,357 28,333

Other comprehensive income / (expenses) of the year:

Exchange differences on foreign currency translation (1,486) 6,494 7,658

Total comprehensive income for the year 16,529 29,851 35,991

Profit for the year attributable to

- owners of the parent 18,015 23,357 28,333

Total comprehensive income for the year attributable to

- owners of the parent 16,529 29,851 35,991

43


Consolidated B/S 2009 – 2011


(FYE 31 December)

In T€ Audited Audited Audited Audited Audited Audited

2009 2010 2011 2009 2010 2011

Assets Equity and liabilities

Non-current assets Equity

Intangible assets 798 2,208 2,298 Share capital 7,870 7,870 7,870

Property, plant and equipment 5,358 14,755 14,371 Statutory reserves 5,830 5,830 5,830

Deferred tax asset - 239 267 Capital reserve 388 388 388

Other non-current assets 1,841 3,056 1,067 Other reserves 2,835 2,835 2,835

Total non-current assets 7,997 20,258 18,003 Currency translation reserve 1,106 7,600 15,258

Retained earnings 32,402 55,759 84,091

Total equity 50,431 80,282 116,272

Non-current liabilities

Financial liabilities 3,768 4,206 2,283

Current assets Current liabilities

Inventories 13,648 15,317 23,892 Income tax liabilities 817 1,141 1,508

Trade and other receivables 19,822 36,117 49,941 Financial liabilities 328 283 2,183

Cash and cash equivalents 14,918 14,951 25,587 Trade payables 630 1,486 1,535

Other current assets 945 1,806 7,493 Other current liabilities 1,356 1,051 1,135

Total current assets 49,333 68,191 106,913 Total current liabilities 3,131 3,961 6,361

Total liabilities 6,899 8,167 8,644

Total assets 57,330 88,449 124,916 Total equity and liabilities 57,330 88,449 124,916

China Haikui Pte Ltd - Consolidated balance sheet

44


Consolidated CFS 2009 – 2011


(FYE 31 December)

In T€ Audited Audited Audited Audited Audited Audited

2009 2010 2011 2009 2010 2011

Operating activities Investing activities

Profit before income tax 20,141 26,414 32,359 Cash outflow s for other non-current assets (1,898) (929) (1,111)

Adjustments for non-cash expenses / (income) Acquisition of assets under IFRS 3 - (10,305) -

Amortisation of intangible assets 20 28 38 Cash outflow s for property, plant and equipment (138) (445) (258)

Depreciation of property, plant and equipment 536 665 1,413 Interest income received 52 74 95

Interest expense 60 103 14 Cash outflows from investing activities (1,984) (11,605) (1,274)

Interest income (52) (74) (95)

Other non-cash expenses / (income) (172) 376 464 Financing activities

Changes in working capital Cash outflow s for bank loans and other borrow ings (299) (656) (267)

Inventories (3,823) (41) (7,021) Dividend paid (1,687) (926) -

Trade and other receivables (9,106) (13,590) (10,697) Interest paid (52) (103) (14)

Other current assets 136 (591) (2,215) Other cash proceeds / (outf low s) (3) - -

Trade payables 650 762 (36) Cash outflows from financing activities (2,041) (1,685) (281)

Other current liabilities 176 336 28

Income taxes paid (1,285) (2,838) (3,765)

Cash flows from operating activities 7,281 11,550 10,487 Net increase/(decrease) in cash & cash equivalents 3,256 (1,740) 10,636

Cash & cash equivalents at the beginning of the year 11,937 14,918 14,951

Effects from currency translation (275) 1,773 1,704

Cash & cash equivalents at the end of the year 14,918 14,951 25,587

China Haikui Pte Ltd - Consolidated cash flow statement

APPENDIX 3: INTERNAL QUALITY CONTROL SYSTEM

Quality Control Measures

45

Internal quality control system Measures

- Withdrawal from and analysis of water samples in the

aquaculture farms

- Provender sample in the aquaculture farms

- Visual controls

- Odour controls

- Radioactivity controls

- Measurement of temperature

- Laboratory test particularly with regard to heavy

metals (eg: lead and mercury)

- Hygiene controls of the employees and the production lines

- Flavour controls

- Packaging controls

Stringent control procedures to comply with high international quality standards

Incoming

In-process

Final

Strict quality control procedures to safeguard high quality of end

products and compliance with relevant standards


The employees in the quality control procedures have a

profound expert knowledge

Thank you

Haikui Management Presentation

Documents

stringent

bankm biw

3 corporate

5 financial

cold storage

safeguard

financial

product development