A global leader in sustainable aquaculture

Transcription

1 A global leader in sustainable aquaculture Company Presentation 12 May 214

2 Important Information This document (the Presentation ) has been produced by Cermaq ASA ( Cermaq or the Company ) and may not be reproduced or redistributed, in whole or in part, to any other person. The Presentation has been prepared for information purposes only. The Presentation does not constitute any solicitation for any offer to purchase or subscribe any securities and is not an offer or invitation to sell or issue securities for sale in any jurisdiction, including the United States. Distribution of the Presentation in or into any jurisdiction where such distribution may be unlawful, is prohibited. The Company require persons in possession of this Presentation to inform themselves about, and to observe, any such restrictions. The Presentation is not and does not purport to be complete in any way, and the Company makes no representation or warranty (whether express or implied) as to the correctness or completeness of the information contained herein, and neither the Company nor any of its subsidiaries, directors, employees or advisors assume any liability connected to the Presentation and/or the statements set out herein. By receiving the Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company s business. The contents of the Presentation shall not be construed as legal, business, investment or tax advice. Each reader of the Presentation should consult its own professional advisors as to such advice. To be invested in securities issued by the Company involves inherent risks, and an investment in securities issued by the Company is suitable only for investors understanding the risks associated with this type of investment and who can afford a loss of all or part of the investment. If you are in any doubt about the contents of this Presentation, you should consult your stockbroker, bank or investment manager, lawyer, accountant or other professional adviser. The information included in the Presentation may contain certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words believes, expects, predicts, intends, projects, plans, estimates, aims, foresees, anticipates, targets, and similar expressions. Any forward-looking statements contained herein, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. The Company does not provide any assurance that the assumptions underlying such forward-looking statements are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed or the actual occurrence of the forecasted developments. The Company assumes no obligation to update any forward-looking statements or to conform these forward-looking statements to the Company s actual results. Any prospective investor is advised, however, to inform themselves about any further public disclosures made by the Company, such as filings made with the Oslo Stock Exchange or press releases. The Presentation speaks as of the date set out on the front page, and remains subject to change, completion or amendment without notice. There may have been changes affecting the Company or its affiliated companies subsequent to the date of this Presentation. Neither the issue nor delivery of the Presentation shall under any circumstance create any implication that the information contained herein is correct as at any time subsequent to the date hereof or that the affairs of the Company has not since changed, and the Company does not intend, and does not assume any obligation, to update or correct any information included herein. This presentation is subject to and shall be construed in accordance with Norwegian law, and any dispute arising in respect of the Presentation shall be subject to the exclusive jurisdiction of Norwegian courts. 2

3 Agenda Company overview Financials Outlook Appendix 3

4 Cermaq a company snapshot #3 Global in salmon farming by volume 142 thousand tonnes salmon and trout sold in thousand tonnes estimated for 214 Norway Canada Chile Revenue 213 NOK 5.2bn EBIT* NOK 495m Employees: 4 4 Listed on OSE since 25 Norwegian Gov t owns 59% EBIT in this document is pre fair value and non-recurring items 4

5 Diversified presence in the major salmon farming regions worldwide GLOBAL HARVEST OF FARMED SALMONIDS* 214e CERMAQ SOLD VOLUME 214e Total of 2,552 KT GWE Total of 157 KT GWE Others 298 (12%) Canada 2 (13%) Canada UK 298 (12%) 17 (4%) 1,162 (46%) Norway (36%) (36%) Norway 687 (27%) Chile 8 (51%) Chile *Atlantics, Coho, and trout. Kontali estimates, CEQ conversion to GWE 5

6 Cermaq is the third largest salmon farmer globally Pelagic fishing Fish meal and fish oil production RESEARCH & DEVELOPMENT Terrestrial farming Raw material processing Feed production Smolt production Salmon farming Primary processing Secondary Processing (VAP) Tons 45, 4, 35, 3, 25, 2, 15, 1, 5, Source: Kontali Marine Harvest Group Lerøy Seafood Group Top 1 farmers by harvesting volume 213E Cermaq Salmar Empresas Aquachile Pesquera Los Fiordos (Agrosuper) Grieg Seafood Cooke Aquaculture Nordlaks Holding Bakkafrost 6

7 The cornerstones of our strategy Diversification by geography and species CERMAQ Diversification Optimal feed and nutrition Smolt quality Preventive fish health 7

8 Sustainable aquaculture is an integrated part of our operations SOCIETY Healthy and safe working environment for our employees Respect labour rights, e.g. the right to be organised in Trade Unions and collective bargaining Respect the right of indigenous people, e.g. First Nations in Canada Zero tolerance for corruption Open and transparent dialogue with stakeholders ENVIRONMENT Produce healthy seafood with minimal ecological footprint Optimal biological performance through preventive fish health and animal welfare Efficient use of resources, e.g. marine ingredients in feed ECONOMIC Maintain a strong balance sheet to secure sustainable operations in a volatile industry Create value to our shareholders and attract capital to secure further growth and profitability Create economic value to the communities in which we operate 8

9 Recent expansion initiatives in Chile and Norway Chile: New licenses in region XII 2 new licenses in region XII acquired 4 kt annual production capacity when fully developed Total purchase price USD 2m Longer term ambition to acquire additional licenses in region XII with capacity up to 3 kt per year Current Cermaq annual capacity in Region XII is 1 kt Norway: New green licenses 1 license in category A Finnmark 5 licenses in category B to be located in Nordland The 6 licenses awarded will increase annual capacity by 8 kt License award in category C not yet announced 9

10 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Cermaq Canada Cermaq Canada produces Atlantic salmon Production volume 213: 15.1 KT GWE Production volume 214e: 2 KT GWE EBIT in 213: MNOK Operations on west and east coast of Vancouver Island, British Colombia Three freshwater-sites Two processing plants (one company-owned, one under contract) NOK EBIT/kg development Head office in Campbell River 236 employees* * 31 Dec 213 1

11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Cermaq Chile Operations are located in three areas; Chiloé area (Region X), Puerto Aysen area (Region XI) and Puerto Arenas area (Region XII) Diversification in three species; Atlantic salmon, Coho salmon and trout Covers the whole value chain from brood fish to value added processing 13 land based freshwater sites and presence in 2 lakes (Llanquihue & Puyehue) for smolt production Three processing plants (Chiloe island) Head office in Puerto Montt, Region X Production 213: 76.1 KT GWE Production 214e: 8 KT GWE EBIT 213: MNOK employees* NOK licences of which 2 licences recently acquired in Region XII EBIT/kg development * 31 Dec

12 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Cermaq Norway Cermaq Norway produces Atlantic salmon 28 licences Operations in Nordland and in Finnmark 22 licences Three processing plants; one in Finnmark, two in Nordland Three freshwater sites - all located in Nordland Three partially owned brood fish licenses in Nordland Recently granted 1 new green licence in Finnmark and 5 new green licences in Nordland Head office is located in Steigen, Nordland Production 213: 51. KT GWE Production 214e: 57 KT GWE EBIT 213: MNOK employees* NOK EBIT/kg development * 31 Dec 213, including ASA and Norgrain 12

13 Responsible corporate governance CERMAQ CENTRAL MANAGEMENT TEAM Jon Hindar CEO CERMAQ S TEN LARGEST SHAREHOLDERS AS OF 5 MAY 214 Geir Sjaastad Acting CFO Synne Homble Geir Molvik Director Legal COO Norway and Corporate Functions Fernando Villlarroel COO Canada Fransico Miranda COO Chile Shareholder % Country Ministry of Trade and Industry NOR Folketrygdfondet 6.13 NOR MEMBERS OF CERMAQ S BOARD OF DIRECTORS 1 Pareto Aksje Norge 1.68 NOR Name Bård Mikkelsen Rebekka Glasser Herlofsen Åse Aulie Michelet Jan Robert Røli-Gjervik Helge Midttun Lise C. Mortensen Ketil Olsen Position Chair of the board Deputy chair of the board Director Employee elected director Director Employee elected director Employee elected director State Street Bank & Trust Co USA Verdipapirfondet DNB Norge (IV) 1.11 NOR Goldman Sachs International Equity 1.9 GBR Fondsfinans Spar.92 NOR Goldman Sachs & Co Equity Segregat.8 USA State Street Bank & Trust Co..79 USA BNP Paribas Sec. Services S.C.A.73 LUX 1) Mr. Bård Mikkelsen is not standing for re-election in the 214 AGM and Rebekka Glasser Herlofsen is proposed as new Chair of the Board. In addition, the nomination committee has proposed two new Board members; John Giverholt and Benedicte Heidenreich Fossum. 13

14 Agenda Company overview Financials Outlook Appendix 14

15 Key P&L figures Group key figures pro forma (NOK million) Q1 214 Q Operating revenues 1,515. 1, , ,28.6 EBITDA excluding non-recurring items EBITDA excluding non-recurring items % 25.8% 7.4% 14.5% -2.3% EBIT pre fair value and non-recurring items EBIT pre fair value and excluding non-recurring items % 21.5% 2.5% 9.6% -8.2% Earnings per share (NOK) (adj.) Return on capital employed 13.9% 4.4% 1.3% 4.6% Volumes sold (kt, gwe) Highlights 213 Improved farming results from stable markets and high salmon prices in all regions Strong profit improvement in Chile, but biological situation still challenging. Cermaq is actively contributing to solutions, e.g. through the Global Salmon Initiative (GSI) EWOS transaction completed on 31 October 213 Highlights Q1 214 Improved sanitary situation in Chile and significantly reduced caligus load Reduced cost in Finnmark - Cost reduction of NOK 2.6/kg vs. Q4 13 Growth: 6 green licenses in Norway, 2 new licenses in region XII in Chile Strong markets in all regions for all species drive profitability All time high EBIT in Norway 15

16 EBIT development Cermaq Farming NOKm EBIT development ,399 1,39 1 1,17 1, EBIT pre fair-value EBIT 16

17 Cash flow Group key figures pro forma (NOK million) Q1 214 Q Net cash flow from operating activities Net cash flow from investing activities ,751.7 Net cash flow from financing activities - 4, ,34.1 Net change in cash for the period - 4, ,221.9 Cash and cash equivalents at the beginning of the period 4, Cash and cash equivalents at the end of the period ,732.1 Net cash flow from operating activities in discontinued operations Net cash flow from investing activities in discontinued operations Net cash flow from financing activities in discontinued operations Highlights 213 The sale of EWOS resulted in gross proceeds of NOK 5.2bn In conjunction with the sale, NOK 4.5bn of debt was repaid Net cash flow was NOK 4.2bn as a result of the EWOS sale Approximately 8% of the operational cash flow was from EWOS Highlights Q1 214 Strong operational cash flow, approximately NOK 19m higher in Q1 14 than in 213 An extra ordinary dividend of NOK 4.7bn was paid in the quarter Outgoing cash balance was NOK 265m 17

18 NIBD Q4* Operating CF Investment CF Other fin. act Other/FX NIBD Q1 NIBD, equity ratio, ROCE NIBD development (NOKm) Equity ratio 48 % 44 % 47 % 7 % 55 % ROCE - combined operations (12-month rolling avg.) 1.3 % 13.9 % % 6.3 % 7.1 % 5 - Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Consolidated balance sheet *Adjusted for extraordinary dividend paid in January 14 Strong operational cash flow lowered NIBD by NOK 174m vs. Q4 13 Equity ratio 55%, down from 7% as of Q4 13 due to NOK 4.7bn extraordinary dividend payment ROCE 14% (12m rolling) driven by stronger salmon prices Group key figures (NOK million) Group key figures (NOK million) ASSETS EQUITY AND LIABILITIES Intangible assets 2 23 Equity attributale to owners of the parent Property, plant and equipment Non-controlling interests -3 Financial fixed assets 66 Total equity Total non-current assets 4 24 Total provisions 98 Inventories 356 Interest bearing non-current liabilities 2 53 Biological inventories 3 23 Total non-current liabilities 3 32 Accounts receivable 674 Assets held for sale 7 Current interest bearing liabilities 142 Other current receivables 417 Accounts payables 544 Cash and cash equivalents 265 Other non-interest bearing current liabilities 327 Total current assets 4 95 Total current liabilities 1 14 TOTAL ASSETS TOTAL EQUITY AND LIABILITIES

19 Conservative approach to financing Target equity ratio above 45% Target average dividend over a period is 3-5% of net profit - Distribution dependent on liquidity evaluations including projected NIBD/EBITDA, available unused financial headroom and projected cash flow - Proposed dividend for fiscal year 213 of NOK million (42% of adjusted net profit) Currency mix to partly reflect asset base and earnings 19

20 Cash flow and Capex Operating cash flow (NOKm) Capex (NOKm) incl EWOS prior to Q1 14 incl EWOS prior to Q Q1 13 Q2 13 Q3 13 Q4 13 Q Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Operating cash flow NOK 289m vs. NOK 93m in Q1 13 EBITDA NOK 391m, working capital build up NOK 95m Capital expenditure NOK 83m 214 full year estimate NOK ~ 3m excluding investment related to new licenses 2

21 Interest bearing debt Loan facilities Interest bearing debt as at 31 March 214 Intercreditor agreement As of 31 march 214 the Group s Net interest bearing debt is NOK million Senior Facilities Agreement NOK 3,m 5 year 5year USD 375m NOK 75m RCF RCF Working Capital Facility NOK 25m Hedging Agreements The Group has unused credit lines and cash amounting to NOK 1.4 billion of which 1.1 billion in long term committed bank facilities The Group average cost of finance during Q1 214 is 2.8% Covenants Equity Ratio not to be lower than 4% NIBD/EBITDA not to exceed the following levels: 4.x during the first three years of the facilities 3.75x during the fourth year 3.5x during the fifth year Two multicurrency RCF secure flexible funding and currency profile and are partly made available as ancillary facilities in Chile. 5 years tenor - Maturity Dec 218 NOK 25m working capital facility for operational funding Hedging agreements with senior lenders All loans under the facilities and hedging agreements are jointly and severally guaranteed and secured in the Group assets NIBD/EBITDA can exceed the set covenant by.5x without being in default on three testing dates during the life of the facilities Maturity profile BNOK After

22 Agenda Company overview Financials Outlook Appendix 22

23 Limited supply growth expected in 214 Global harvest of Atlantic salmon ktonnes WFE Q1 13 Q1 14E FY 13 FY 14E REGION Canada Chile Norw ay UK Other EST, HARVEST Source: Kontali Global sales per region of Atlantic salmon ktonnes WFE Q1 13 Q1 14E FY 12 FY 13 REGION EU USA Japan Russia China / Hong Kong Brazil Other EST, SUPPLY Source: Kontali World wide harvest of farmed salmonids (ktonnes WFE) E Source: Kontali Analyse Coho Large trout Atlantic salmon 23

24 kt, gwe Cermaq outlook kt Annual sales, kt gwe 12 kt 142 kt 157 kt Estimated sales in kt vs. previous 152 kt estimate % +1% Reinforced emphasis on OHS % Canada; 19 Canada; 21 Norway; 51 Norway; 38 Chile; 49 Chile; 5 Canada; 2 Canada; 15 Norway; 57 Norway; 51 Chile; 76 Chile; 8 Limited supply growth outlook supports strong markets during 214 and 215 Continued improvement in sanitary situation in Chile ACT ACT ACT EST FY 11 FY 12 FY 13 FY 14 Cost reduction in Chile and Finnmark Development of new licenses Quarterly split of 214 harvest estimates is in the Q1 14 report 24

25 Agenda Company overview Financials Outlook Appendix 25

26 Global operational results (NOKm, NOK per kg) Q1 14 Q1 13 Volumes sold (kt, gw e) EBIT Q1 14 vs Q1 13 NOKm Operating revenues EBIT EBIT per kg Significant EBIT improvement Driven by strong prices Continued profit increase in Chile Q1 13 Volume Price Cost Other Q kt above estimate 4 kt from Norway 3 kt from Chile 26

27 Chile Total Chile Q1 14 Q1 13 Volumes (kt, gw e) Revenues (NOKm) EBIT (NOKm) 75.5 (48.4) EBIT per Kg (NOK) 3.9 (2.) EBIT Q1 14 vs Q1 13 NOKm 25 Strong markets for all species drive profitability High production cost SRS causes high mortality and high feed conversion ratio for trout Cost reduction on Atlantics from Q Volume decreased by 21% vs. Q kt above estimate Q1 13 Volume Price Cost Other Q

28 Jan '13 Feb March April May June July Aug Sept Oct Nov Dec Jan '14 Feb March Chile Atlantics Atlantic salmon Q1 14 Q1 13 Volumes (kt, gw e) Fresh Frozen Total Revenues (NOKm) EBIT (NOKm) 13.4 (29.9) EBIT per Kg (NOK) 1.7 (2.7) Chile Atlantic fillet, FOB Miami, 3-4 lb, C-trim USD/lb Strong Atlantic prices Achieved price USD 6.6/kg, 36% above Q1 13, in line with Q4 13 Frozen prices on par with fresh Slight production cost improvement from Q4 13 4% decrease from Q % increase vs. Q % volume decline vs. Q1 13 Adjusted stocking strategy Delayed harvest to increase harvest weight 28

29 Q412 Q113 Q213 Q313 Q413 Q114 FY14e FY15e USD/kg (gwe) Target 215; Ex-cage Cost Atlantics Chile 6, 5, Ex-cage cost Atlantics, USD/kg 4,8 4,8 4,5 4,6 Ex-cage cost target of USD 3.8/kg for Atlantics in 215 reflecting improved fish health 4, 3, 2, 3,3 3,9 3,8 Higher share of superior grade to provide USD.2/kg stronger achieved price in 215 1,, Key drivers for reaching targets Maintain a low caligus level Reduce chemical caligus treatment Reduce effect of SRS minimize stress Improve feed conversion 29

30 Jan-9 Apr-9 jul.9 okt.9 Jan-1 Apr-1 jul.1 okt.1 Jan-11 Apr-11 jul.11 okt.11 Jan-12 Apr-12 jul.12 okt.12 Jan-13 Apr-13 jul.13 okt.13 jan.14 Q1/9 Q2/9 Q3/9 Q4/9 Q1/1 Q2/1 Q3/1 Q4/1 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Jan-9 Apr-9 jul.9 okt.9 Jan-1 Apr-1 jul.1 okt.1 Jan-11 Apr-11 jul.11 okt.11 Jan-12 Apr-12 jul.12 okt.12 Jan.13 Apr.13 Jul.13 Oct.13 jan.14 Jan-9 Apr-9 jul.9 okt.9 Jan-1 Apr-1 jul.1 okt.1 Jan-11 Apr-11 jul.11 okt.11 Jan-12 Apr-12 jul.12 okt.12 Jan-13 Apr-13 jul.13 okt.13 jan.14 Kg RWE Cermaq Chile sanitary situation Caligus per Atlantic salmon (Adult females + mobile) Average harvest weight, Atlantic salmon kg RWE Caligus level lowest since end 211 (2.1 per fish) Stable mortality SRS main challenge but improvements observed 3% Mortality Atlantic salmon monthly 8 6 Antibiotics usage Gr/t LWE, Atlantics Seasonal increase vs. Q4 13 2% 1% % 4 2 Harvest weight highest in the company s history Increase in antibiotics use due to SRS All data are for Cermaq Chile. Antibiotics data is for Q1 14, other data is for March 14 3

31 Jan '12 Feb March April May June July Aug Sept Oct Nov Dec Jan '13 Feb March April May June July Aug Sept Oct Nov Dec Jan '14 Feb March Chile Coho Coho Q1 14 Q1 13 Volumes (kt, gw e) Revenues (NOKm) EBIT (NOKm) 55.8 (28.3) EBIT per Kg (NOK) 6.8 (2.8) Japan - Chile, Tsukiji wholesale market Yen/kg and USD price rebased to Yen price, Coho Yen price USD price rebased to Yen Achieved price USD 5.63/kg, up 76% vs. Q1 13, up 9% vs. Q4 13 Production cost up 18% vs. Q1 13, up 6% vs. Q4 13 Cost increase mainly due to higher feed price Significant volume to new markets 22% of Q1 14 volume to Brazil and Russia Good biological situation Low sea lice levels and mortality Source: Urner Berry 31

32 Jan '12 Feb March April May June July Aug Sept Oct Nov Dec Jan Feb March April May June July Aug Sept Oct Nov Dec Chile Trout Trout Q1 14 Q1 13 Volumes (kt, gw e) Revenues (NOKm) EBIT (NOKm) EBIT per Kg (NOK) Japan - Chile, Tsukiji wholesale market Yen/kg and USD price rebased to Yen price, trout Achieved price USD 6.66/kg, up 7% vs. Q1 13, 4% vs. Q4 13 Low Chilean supply of premium grade Strong demand from Russia and Japan Production cost up by 4% vs. Q1 13, stable vs. Q4 13 Higher cost y-o-y due to sanitary challenges SRS continues to be main issue Yen price USD price rebased to Yen Source: Urner Berry 32

33 Norway Total Norw ay Q1 14 Q1 13 Volumes (kt, gw e) Revenues (NOKm) EBIT (NOKm) EBIT per Kg (NOK) Strong prices Achieved price NOK 44.9/kg, up 32% vs. Q1 13 and 2% vs. Q4 13 6% of volume in the quarter was on fixed price contracts at NOK 39.2/kg EBIT Q1 14 vs Q1 13 NOKm Lower production cost % below Q1 13 and 1% lower than Q Volume 4 kt above estimate Good growth and earlier than planned harvest Q1 13 Volume Price Cost Other Q1 14 Generally good biological situation in both regions 33

34 Nordland Nordland region Q1 14 Q1 13 Volumes (kt, gw e) Revenues (NOKm) EBIT (NOKm) EBIT per Kg (NOK) Achieved price NOK 44.5/kg Production cost NOK 24.5/kg Harvest 1 kt above estimate due to good growth conditions Good biology Harvest per license tons last 12 months 34

35 Finnmark Finnmark region Q1 14 Q1 13 Volum es (kt, gw e) Revenues (NOKm) EBIT (NOKm) EBIT per Kg (NOK) Achieved price NOK 45.1/kg Positively impacted by fresh sales to Asia Production cost NOK 26./kg Cost reduction of NOK 2.6/kg vs. Q4 13 Volume 3 kt above estimate Accelerated harvest from strong market Generally good biology Some winter wounds 213G performing better than 212G Harvest per license 988 tons last 12 months Reflects 3 depopulated PD sites 35

36 Canada Q1 14 Q1 13 Volumes (kt, gw e) Revenues (NOKm) EBIT (NOKm) EBIT per Kg (NOK) EBIT Q1 14 vs Q1 13 NOKm Strong prices Achieved price USD 3.76/lb, up 4% vs. Q1 13 and 1% vs. Q4 13 Production cost up 17% vs. Q1 13, stable vs. Q4 13 Higher cost from prolonged season with low dissolved oxygen Volume down vs. Q1 13 from changes in the stocking pattern Good biological situation 12 Q1 13 Volume Price Cost Other Q

37 Cermaq corporate structure May 214 Cermaq ASA 1% 1% 1% 1% Cermaq Norway AS NorAqua AS Inversiones Cermaq Chile Ltda 99% Cermaq Holding AS 1% % % Non-related minority shareholders 1% 72.5% Alsvåg Fiskeprodukter AS Cermaq Chile S.A..4% Cermaq Canada Ltd Norgrain AS <.1% >99.9% >99.9% 1% 1% 1% Cultivos Marinos Chiloé S.A. Entities holding farming licenses Cermaq Canada Inc. Pacific National Processing Ltd Cermaq Site Co. Ltd. Subsidiaries 37

38 Selling price, cost and EBIT/kg Cermaq farming (NOK per kg) Q1 14 Q1 13 Q413 FY 13 Net sales after freight per kg (gwe) Chile Norway Canada TOTAL Total cost per kg (gwe)* Chile (32.6) (23.3) (31.2) (3.) Norway (27.1) (28.1) (27.4) (27.8) Canada (36.) (29.7) (36.9) (33.2) TOTAL (3.7) (25.6) (3.4) (29.5) EBIT per kg Chile 3.9 (2.) Norway Canada TOTAL *Total cost include all cost, and are not comparable to production cost mentioned elsewhere in the presentation 38

39 Jan '12 Feb March April May June July Aug Sept Oct Nov Dec Jan '13 Feb March April May June July Aug Sept Oct Nov Dec Jan '14 Feb March Market prices farmed salmonids Europe - Norway (FCA Oslo) (NOK/kg) Source: Kontali USA - Chile / Canada (USD/lb) Chilean Atlantic fillet, FOB Miami, 3-4 lb, C-Trim Source: NOS, Kontali Canada (West coast) whole fish fresh, FOB Seattle, 8-1 lb Japan - Chile (wholesale Tsukiji market) (JPY/kg) Japan - Chile, Tsukiji wholesale market (USD/kg) Japan - Chile frozen coho 4-6lb JPY/kg Source: Urner Barry Japan - Chile frozen trout 4-6lb JPY/kg Source: Urner Berry Coho trout 39

40 Seafood glossary GWE Gutted weight OHS Occupational Health and Safety KT Kilotons 4

41 Thank you for your attention 41