Salmon vs chicken category

Future potential

Henning Beltestad

CEO

Lerøy Seafood Group ASA

AGENDA

1. Lerøy Seafood Group

2. Global Supply

3. Production time

4. Prices

5. Consumption

6. Sustainability

7. Health

8. Product categories

9. Potential

Turnover Lerøy Seafood Group ASA

3

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

10 000

11 000

12 000

13 000

2004

1999

2000

2007

2010

2012

2008

1990

1980

1985

NO

K m

illio

n

2011

2009

2014

1995

2006

2002

2003

2013

2005

2001

(NOKm) 2014 2013 ▲%

Revenue 12 579 10 765 17 %

Other gains and losses 117 54

EBITDA 2 160 1 938 11 %

Depreciation & amortisation 371 313

EBIT* 1 789 1 626 10 %

Income from associates* 148 106

Net finance -120 -102

Pre-tax* 1 817 1 630 11 %

EPS (NOK)* 24.0 21.1 14%

Harvested Volume (GWT) 158 258 144 784 9 %

EBIT*/kg all inclusive (NOK) 11.3 11.2 0.7 %

ROCE* (%) 21,2 % 20,7 %

* Before biomass adjustment4

Key financial figures 2014

Quarterly historic figures

435

0

100

200

300

400

500

600

Q4 1

4

NO

K m

illio

n

Q3 1

4

Q2 1

4

Q1 1

4

Q4 1

3

Q3 1

3

Q2 1

3

Q1 1

3

Q4 1

2

Q3 1

2

Q2 1

2

Q1 1

2

Q4 1

1

Q3 1

1

Q2 1

1

Q1 1

1

Q4 1

0

Q3 1

0

Q2 1

0

Q1 1

0

7,3

12,2

16,5

10,310,1

13,7

11,1

3,3

2,0

3,62,83,0

5,7

13,3

16,015,1

13,713,3

11,3

10,2

0

2

4

6

8

10

12

14

16

18

Q3 1

3

Q2 1

3

Q1

13

Q4 1

2

Q3 1

2

Q2 1

2

Q3 1

4

Q1 1

2

Q4 1

1

Q3 1

1

Q2 1

4

Q1 1

4

Q4 1

3

NO

K

Q4 1

4

Q2

11

Q1 1

1

Q4 1

0

Q3 1

0

Q2 1

0

Q1 1

0

EBIT* EBIT/kg*, all inclusive

*before biomass adjustment

5

Return on capital employed (ROCE)

6

0 %

5 %

10 %

15 %

20 %

25 %

30 %

35 %

2012

2011

2013

2014

2004

2003

2002

2001

2000

1999

2010

2009

2008

2007

2006

2005

1998

1997

1996

1995

1994

1993

* Target communicated at the listing on Oslo Stock Exchange 03.06.2002

18 %*

7

Lerøy Aurora

Lerøy Midt

Lerøy Sjøtroll

Farming

• Lerøy Aurora (salmon)

• Lerøy Midt (salmon)

• Lerøy Sjøtroll (salmon and trout)

• Geographic diversification along Norway’s

long coastline.

8

Farming: Guiding

Licences Smolt

cap.

2011

GWT

2012

GWT

2013

GWT2014 GWT

2015E

GWT

Lerøy Aurora AS* 26 11,5 18 100 20 000 24 200 26 800 31 000

Lerøy Midt AS 55 22,0 62 300 61 900 58 900 68 300 70 000

Lerøy Sjøtroll 60 22,6 56 200 71 600 61 700 63 200 65 000

Total Norway 141 52,1 136 600 153 400 144 800 158 300 166 000

Villa Organic AS** 6 000

Norskott Havbruk (UK)*** 10 900 13 600 13 400 13 800 15 500

Total 147 500 167 100 158 200 178 100 181 500

*) Included harvested volume from Villa Organic after split July 2014

**) LSG’s share of Villa Organic’s volume in H1 2014, not consolidated

***) LSG’s share, not consolidated

9

VAP

• Rode Beheer BV Group• Capacity of about 16-20,000 tons raw material

• Lerøy Smøgen Seafood AB• Capacity of about 12,000 tons raw material

• Lerøy Fossen AS• Capacity of about 12-15,000 tons raw material

• Bulandet Fiskeindustri AS(white fish)

• Total VAP capacity in these factories 40-50,000 tons

raw material

10

Sales & Distribution

• Global reach and sales to more than 70

countries.

• A significant industrial activity within trading,

processing, sales and distribution of fish.

• Investments in fish cuts in end markets recent

years

• Processing and fresh distribution facilities:• Norway

• Sweden

• Finland

• France

• Spain

• Portugal

• Denmark (reported as associate)

• Turkey (reported as associate)

• Netherlands (reported in VAP) 11Fish-cuts/fresh distribution facilities

12

Sales per market and product Q4 2014

17,2%

7,4%

3,0%

58,4%

9,8%

4,3%

6,8%

33,4%

4,4%

41,2%

7,4%

6,7%

EU

Norway

Asia Pacific

USA & Canada

Rest of Europe

Others

Salmontrout

Whitefish

Shellfish

Others

Whole salmon

Processed salmon

Salmon vs chicken category

- future potential

Global SupplyBroiler (+12% increase 2010-2015)

0,0%

3,8%

2,5%

1,3%

1,8%

1,5%

0,0%

0,5%

1,0%

1,5%

2,0%

2,5%

3,0%

3,5%

4,0%

4,5%

5,0%

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

100,0

2010 2011 2012 2013 2014 2015E

Broiler ready to eat eqv (mill tons)

Broiler Meat Chg YOY

0%

6%

22%

2%

9%

3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

-

0.5

1.0

1.5

2.0

2.5

3.0

2010 2011 2012 2013 2014 2015E

Salmon WFE (mill tons)

Salmon Chg YOY

Source: USDA / Kontali

Salmon WFE (+48% increase 2010-2015)

4%3% 4%

9%

41%39%

8%

25%24% 23%

7%

14%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

Produsing Country Chicken 4 year growth

27%

350%

22%

-17%

97%

18% 13%

300%

-31%

-50%

0%

50%

100%

150%

200%

250%

300%

350%

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Produsing Country Salmon 4 year growthSource: USDA / Kontali

Global Supply (mill tons)Broiler ready to eat eqv (+12% 2010-2015) Salmon WFE (+48% 2010-2015)

Production time: From eggs to processing, average days

16

21Hatchery 46Chicken

farmProcessing

plant

270-480Hatchery 360-660Salmon farm

Processing plant

Source: Tyson Foods, Inc. Fiscal 2013, Fact Book

Sustainability:

17

Chicken SalmonAmount of feed (kg) to grow 1 kg 2 1,2

Energy retention 10 % 27 %

Protein retention 21 % 24 %

Water foot print, liters/kg edible meat

4,325 1,950

Agricultural land occupied, m2/kg edible product

6,9 3,2

CO2 footprintkg Co2e/kg edible product

3,4 2,5

Edible yield, whole product

46 % 65 %

Use of antibiotics or growth promoting substances

Yes No

Source: Ytrestøyl Nofima Ressursutnyttelse og øko-effektivitet i norsk lakseproduksjon 2010 og 2012/ Ressursregnskap og analyse av fòrråvarer 2012, Mekonnen and

Hoekstra ( 2010), Matvaregruppen mars 2013, SINTEF Fiskeri og havbruk 2013 Carbon footprint and area use of farmed Norwegian salmon.

Nutrient Unit of

measure

Chicken, whole, meat with skin, raw

Salmon, farmed, whole, raw

Water G 67 61

Kilo calories Kcal 162 224

Fat g 13,6 16

- Saturated G 4,2 3

- Trans undaturated G 0 0

- Cis monounsaturated G 6,3 5,9

- Cis polyunsaturated G 1,9 5

Cholesterol Mg 75 80

Protein G 18,6 20

Carbohydrate G 0 0

Salt G 0,2 0,1

Vitamin A RAE 25 26

Vitamin D Mikrogram 0,6 10

Vitamin E Alfa-TE 0,2 1,4

Vitamin B6 Mg 0,3 0,51

Vitamin B12 Mikrogram 0,4 3,5

Selenium Mikrogram 12 30

Iodine Mikrogram 8 12

Health:

High

content of

Omega 3

High

content of

vitamins and

minerals

Source: Matvaretabellen.no

Prices - France

0,00

2,00

4,00

6,00

8,00

10,00

12,00

14,00

16,00

18,00

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

EUR

/kg

Whole Salmon

Salmon Fillet

Whole Chicken Label Rouge

Whole Chicken Prix 1

Source: Kontali

Consumption 2010-2014edible weight

44.2

9.4

19.0

44.8

31.4

2.9

24.8

17.4

41.3

32.7

6.27.2

0

5

10

15

20

25

30

35

40

45

50

55

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

Broiler Meat

2010 2014 2014 per capita

1000 tons kg/capita

1,27

0,800,66

0,330,05

0,32

1,19 1,31

5,06

1,89

0,03

0

1

2

3

4

5

6

7

-

100

200

300

400

500

600

700

2010 2014E per capita 2014

1000 tons kg/capitaAtlantic Salmon

21

Whole products:

22

Fresh packed fillets:

23

Smoked products:

24

Marinaded/breaded products:

25

Raw products:

26

From a sustainability perspective: kg feed/kg protein:

It should be no doubt about what you should eat

more of in the future…….