Presentation of Cermaq

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Reynold Harris
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1 Presentation of Cermaq North Atlantic Seafood Seminar Oslo, 8 th March 2012

2 Agenda Introduction to Cermaq Key results 2011 Focus on Mainstream Chile Outlook 2012 Photograph: Alf Børjesson 2

000 tonns (97% salmonid feed) Mainstream: One of the world s largest salmon farming companies - market share of app.

3 This is Cermaq A global leader in the aquaculture industry with production of feed to salmon and trout Two business units; EWOS and Mainstream EWOS: The world s 2 nd largest producer of salmonid feed market share of app. 36% Sales 2011: tonns (97% salmonid feed) Mainstream: One of the world s largest salmon farming companies - market share of app. 7% Sales 2011: tons (gwe) Total EBIT pre gain 2011 of NOK mill Approx employees Operations: Canada, Chile, Norway Scotland and Vietnam 3

4 Group Key Figures 2011 (NOKm) FY 11 FY 10 FY 09 Op. Revenues EBITDA EBIT pre gain* EPS** * EBIT is EBIT pre fair value adjustments on live inventory * * EPS reported adjusted for unrealised fair value adjustment Best operating result in Cermaq history; increased EPS from 2010 Strong Mainstream performance despite reduced prices 2 nd half Best EWOS result ever Solid cash flow further improving financial capacity from

Dividend 2011 Proposed dividend for 2011 - NOK 4.

dividend of NOK 428m 500 400 428 500 300 200 100 139-2 011 2 010 2

5 Dividend 2011 Proposed dividend for NOK 4.63 per share - 40% of net result pre fair value* A total dividend of NOK 428m * Dividend based on net income adjusted for fair value on biomass and financial instruments

6 Highlights Mainstream 2011 (NOK million, NOK per kg) FY 11 FY 10 FY 09 Volum es sold (kt, gw e) Operating revenues EBIT EBIT per kg (NOKm) FY 11 FY 10 FY 09 Chile (172.0) Norw ay Canada Scotland ROCE (12-m onth rolling ave.) 18.8 % 22.1 % 4.3 % 12% volume growth mainly from growth in Chile Strong results despite a significant price reduction during Chile recovery documented by strong operational and financial results - Start up cost of upgraded processing plant in Hammerfest Good biological conditions in all regions ROCE 19% in 2011 compared to 22% in Lower salmon prices and increased biomass impact development 6

Highlights EWOS 2011 (NOK million, NOK per tonne) FY 11 FY 10 FY 09 Volum es sold (kt) 1 081.4 876.2 787.6 Operating revenues 9 366.9 7 388.4 6 250.6 EBIT 624.8 509.1 379.6 EBIT % 6.7 % 6.9 % 6.

7 Highlights EWOS 2011 (NOK million, NOK per tonne) FY 11 FY 10 FY 09 Volum es sold (kt) Operating revenues EBIT EBIT % 6.7 % 6.9 % 6.1 % EBIT per tonne Return on capital employed (12-month rolling average) 19.1 % 25.4 % 20.8 % 23.5 % 23.2 % ROCE (12-m onth rolling ave.) 23.2 % 19.1 % 15.1 % Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Organic volume growth of 20% compared to 2010 Full year volume exceeded for the first time 1 mill tonnes Continued high share of value added feed Solid results from strong operations in all regions Start up of Pangasius feed production in EWOS Vietnam ROCE increased to 23% from

8 Strong cash flow support capacity expansions Op. Cash flow (NOKm) 700 Capex (NOKm) Improved operational cash flow despite reduced EBITDA Large investments from capacity increase projects in Chile and Norway 2012 investment level at around NOK 420 mill 8

9 Solid financial capacity and structure NIBD (NOKm) Export facility MNOK facility Facility C Facility B Facility A Cermaq maturity profile - MNOK Facility C MNOK 900 Facility B MNOK 600 Export facility MUSD 50 MNOK facility Facility A MUSD Significant NIBD reduction despite large dividends and investments - NIBD/EBITDA reduced to 0.62 A flexible and financial structure with no maturity until 3 rd quarter 2013 Equity ratio as of December 2011 of 59% 9

Mainstream Chile in brief Pto Montt Mainstream Chile 3 rd largest salmonid producer in 2011E Atlantic Salmon, Trout, Coho Aysén Selective breeding Hatcheries On land freshwater facilities

10 Mainstream Chile in brief Pto Montt Mainstream Chile 3 rd largest salmonid producer in 2011E Atlantic Salmon, Trout, Coho Aysén Selective breeding Hatcheries On land freshwater facilities Sea water operations in Region X, XI & XII 2 processing plants (incl VAP) Pto. Natales Freezing capacity 63 farming licenses Pta Arenas S, W 10 Source: Claro y Asociados 10

11 USD/lb Highlights Mainstream Chile 2011 Total Chile FY 11 FY 10 FY 09 Volumes (kt, gw e) Revenues (NOKm) EBIT (NOKm) (172.0) EBIT per Kg (NOK) (3.5) 32% volume growth in 2011 vs 2010 Chilean fresh fillets (3-4lb) FOB Miami UrnerBarry Strong profit improvement during last two years - All species with solid results for 2011 Atlantic smolt release of 9 million for 2011; 10 mill for 2012E New seawater operation opened in Region XII in December A volume of 7-10kt to be harvested from 2013 Good biological conditions continuous improvements - All fresh water Atlantic on land. Trout fresh water on land from

12 A result of good operational performance 12

13 and continuous focus on preventive fish health Development in use of antibiotics MS Chile Atlantic Salmon Coho Trout Total

14 2012 Harvest and sales of Atlantic Salmon Harvest of Atlantic salmon E 2012E Norw ay % % % % % Chile % % % % % UK % % % % % Canada % % % % % Faroe Isl % % % % % Ireland % % % % 16 1 % USA % 16-4 % % 19 3 % 19 4 % Australia 26 8 % % 33 2 % 36 9 % 37 3 % Others 2-38 % 2-29 % 1-18 % 2 50 % 3 52 % Total % % % % % Source: Kontali Analyse Source: Kontali Analyse updated 24 th February 2012 Sales per r egion of Atlantic salmon ktonnes WFE Q4 11E Q4 10 FY 11E FY 10 FY 12E REGION EU USA Japan Russia China / HK Brazil Other EST. SUPPLY Source: Kontali Analyse; January

15 Outlook 2012 Mainstream Estimated volume growth of 13 % 24kt from Norway sold forward on financial contracts at NOK 27 FCA Oslo High price volatility in 2012 from large supply increase in Norway and Chile Sales volumes FY 11 Q1 12 Q2 12 Q3 12 Q4 12 FY 12 (kt, gwe) ACT EST EST EST EST EST Chile Atlantics Coho Trout Norway Nordland Finnmark Canada Total EWOS Expected market growth - Norway 4-6% - Chile 10-15% - Other markets fairly stable High share of value added feed to support fish health to continue EWOS Norway s capacity increase to be completed prior to peak season Full year EBIT margin 5-7% 15

and flexibility entering into 2012 NOK 4.

16 Summary Cermaq`s best operating result ever Solid performance in both business areas Strong financial position and flexibility entering into 2012 NOK 4.63, 40% of net result proposed as dividend for 2011 Capital Markets Day 13th June

RS Platou Markets. Seafood conference. 10th June 2010

RS Platou Markets. Seafood conference. 10th June 2010 RS Platou Markets Seafood conference 10th June 2010 Agenda Introduction to Cermaq Highlights Q1 2010 and outlook full year Chile Recovery 2 Overview of Cermaq One of the global leaders in the aquaculture