From Copeinca to Mitsubishi and beyond Jon Hindar CEO London, 31 October 2014
A roller coaster with a happy ending for Cermaq and for the industry Page 2
A roller coaster with a happy ending for Cermaq and for the industry Significant operational synergies from leveraging EWOS know-how in Copeinca s business Securing access to essential marine ingredients for salmon feed production Page 3
A roller coaster with a happy ending for Cermaq and for the industry Convinced necessary minority of shareholders to vote down rights issue to finance Copeinca acquisition at AGM Subsequent offer of ca. NOK 105 per share was not accepted by shareholders Page 4
A roller coaster with a happy ending for Cermaq and for the industry Control of the general assembly through increasing its shareholding from 43% to 59% Authority from Parliament to sell all shares as part of an industrial solution Page 5
A roller coaster with a happy ending for Cermaq and for the industry AGM resolved to divest EWOS Enterprise value of NOK 6.5 billion Gain of NOK 2.7 billion allowed extraordinary dividend of NOK 51per share Page 6
A roller coaster with a happy ending for Cermaq and for the industry Voluntary offer of NOK 96 per share 92 % acceptance from shareholders All conditions in the offer have been met Closing is expected mid November Delisting from OSE is expected before year end Page 7
Cermaq pre Mitsubishi globally in salmon 142 thousand tons salmon #3 farming by volume and trout sold in 2013 151 thousand tons estimated for 2014 Norway Canada Chile Revenue (2013): NOK 5.2bn EBIT (2013): NOK 495m Employees: 4,400 Listed on OSE since 2005 Norwegian Gov t owns 59% Page 8
with 2/3 of its operations outside Norway GLOBAL HARVEST OF FARMED SALMONIDS* 2014e CERMAQ SOLD VOLUME 2014e Total of 2,552 KT GWE Total of 151 KT GWE Others Canada Canada UK 298 (12%) 107 (4%) 298 (12%) 1,162 (46%) Norway 19 (13%) 51 (34%) Norway Chile 687 (27%) Chile 80 (53%) Global market share appr. 6 % *Atlantics, Coho, and trout. Kontali estimates, CEQ conversion to Gutted Weight Equivalent ( GWE ) Page 9
and the majority of workplaces are in Chile Total of 4361 employees (end 2013)* 603 (14 %) Canada 236 (6 %) 607 (14 %) Norway 3518 (80 %) Chile * Including four employees in non-core operations Page 10
Mitsubishi adds value to Cermaq Global integrated business enterprise developing and operating various businesses across several industries Significant player in the salmon and seafood industry for decades Salmon production and processing presence Trading and processing volumes in Asia of 50,000 tons salmon per year Extensive sales network for salmon and seafood especially in Asia Thailand Vietnam Salmones Humboldt in Chile, harvesting 27,000 tons annually Chile Revenue (2013): USD 63.5bn EBIT (2013): USD 1.4bn Employees: 68,400 Founded in 1954 Page 11
A strong industrial fit Combined volumes, 2014e (kt gwe) Combined salmon farming (KT GWE) and processing presence Chile Harvesting 80 27 Norway Canada Harvesting 19 Norway Harvesting Mitsubishi processing and trading 51 50 Cermaq Mitsubishi Canada Thailand Vietnam Combined production and sales volumes 151 68 Chile 0 50 100 150 200 250 Creating a global # 2 salmon farming company Page 12
A bright future within Mitsubishi Good solution for the company and its employees The offer is a recognition of the importance of the salmon farming industry globally Being part of Mitsubishi Corporation, Cermaq will be an even stronger player in the industry Page 13
Highlights Cermaq Q3 2014 (NOKm)* Q3 14 Q3 13 Operating revenues 1 315 1 114 EBIT pre fv and non-rec. items (39) 113 (NOK per kg) Q3 14 Q3 13 Volumes sold (kt, gwe) 34.4 27.9 EBIT per kg** (0.4) 5.2 (NOKm) Q3 14 Q2 14 Equity ratio 49.6 % 53.1 % NIBD 2 817 2 092 Operating cash flow (161) 137 EBIT Group loss of NOK 39 million pre fair value Cash offer for all shares in Cermaq ASA from Mitsubishi Corporation of NOK 96 per share Sales volume 6kt below estimate mainly due to market timing. Full year estimate of 151kt Reported EBIT adversely impacted by NOK 44m - Write-down of elevated mortality in Canada - Write-down of frozen stock in Chile Acquired two new licenses in region XII, Chile EBIT throughout this document is EBIT pre fair value adjustments on biological assets and non-recurring items * Q313 numbers are pro forma excluding EWOS NOK 100 million settlement agreement regarding contingent consideration from sale of EWOS ** EBIT per kg is based on EBIT pre fair value and non-recurring items excluding HQ/Other cost Page 14
kt, gwe Outlook 2014 & 2015 109kt Annual sales (in kt, gwe) 120kt 142kt 151kt 158kt Upcoming Coho season looks promising 180 160 140 +10% +19% Canada; 15 +6% Canada; 19 +5% Canada; 20 Expect continued cost reduction in Finnmark in Q414 120 100 Canada; 21 Canada; 19 Norway; 51 Norway; 51 Norway; 59 Estimated sales in 2015 of 158kt 80 60 40 20 0 Norway; 51 Norway; 38 Chile; 76 Chile; 81 Chile; 79 Chile; 49 Chile; 50 ACT ACT ACT EST EST FY 11 FY 12 FY 13 FY 14 FY 15 5% organic volume growth 2015 compared to 2014 - The growth is mostly in Norway from the new green licenses Limited increased global harvest indicates strong markets during the fourth quarter 2014 and 2015 Page 15
Thank you for your attention