by Constantin Yannios CEO of

1.Fishconsump.oninEU/Greece

FishU.liza.onandSupply160(millionstonnes) Greece

kg/Capita~18,5Europe

~22kg/Capita

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MILLIONTONNES

WORLD FISH UTILIZATION AND SUPPLY

FishU.liza.on(milliontonnes)

Kg/capita

2.Percapitafishconsump.on

3.ValuesoffarmedspeciesinthemainEUproducercountriesin2015and%varia.on2015/2014Source:EUMOFAelabora2onofEUROSTAT,Na2onalsources,FEAPandFAOdata

4.EUproduc.ondetails(quotaevolu.on)Source:EUMOFAelabora2onofEUROSTAT,Na2onalsources,FEAPandFAO

data(totalproduc2ontofooduse)

5.IsFishfarmingabusinessOpportunity?

6.InvestmentCapital

•  Isdependontheidealsizeofthefarm•  OwnCapitalmustbehigherthan25%byloaninterestrate≤5%

•  IfinterestrateishigherthantheOwnCapitalmustbealsohigher

•  ImportantparameteristheInvestmentSubsidyfromtheState

•  Self-Financing≥30%ofWorkingCapital

7.MainProduc.onCosts

•  Feed≈1,1€/kg•  Juveniles≈0,20€/smallfish

•  Fortheproduc.onof1kgfishtosaleisrequired≈2kgofFeedandmorethan3smallfishes(sizeclassSandA)

8.Targetedproduc.oncostsconfigura.onin%oftotalcost

9.Salepricesofproducts

Source:EUMOFAelabora2onofEUROSTATandNa2onalsourcesdata

10.TargetedOpera.ngResultsin%

65%

34%

3,5% 4%2,5%

CostofSales

GrossProfit

Administra.onExpences

Distribuc.onExpences

WorkingCapitalInterestcost

11.FeasibilityStudyResults

•  GrossProfitcanbe!than25%•  WhenDistribu.onCost≤4%onSales

•  WhenAdministra.onCost≤4%onSales

•  EBITDAcanbe!than15%

•  IRRcanbe!than20%

•  PayBackPeriodcouldbelessthan10years

12.ProjectAquacultureInvestment1,066million€,700tonsproduc.on

13.Opera.ngResultsin%Sales3,5million€priceperkg5€

14.FeasibilityStudyResults

•  GrossProfit28%•  EBITDA21%•  IRR44%•  Ifthesalespriceperkgis4,5€•  GrossProfit20%•  EBITDA13%•  IRR9%

15.ProjectAquaculturewithPackagingUnitInvestment2,4mil.€prod.≈2.000tn

16.Opera.ngResultsin%Sales10million€priceperkg5€

17.FeasibilityStudyResults

•  GrossProfit20%•  EBITDA15%•  IRR30%•  Ifthesalespriceperkgis4,8€•  GrossProfit17%•  EBITDA11%•  IRR9%

18.HatcheryFarmInvestment2,8mil.€,prod.27millionsJuveniles

19.HatcheryFarmopera.oncostin%andcost/juveniles10-12cent

0%5%

10%15%20%25%30%35%40%

30%

5% 6% 7% 10%3%

20%

40%

8% 8% 9%18%

7%

30%

81%

120%

20.FeasibilityStudyResultshatcheryfarmsaleprice20cent/juveniles

•  GrossProfit60%•  EBITDA52%•  IRR86%•  Ifthesalepriceperjuvenilesis15cent•  GrossProfit49%•  EBITDA37%•  IRR36%

21.EconomicsustainabilityintheAquacultureindustry

MostcommoncausesoffailureLackofcapitalinthefirstyears’opera.onalphases.

Prospec.veinvestorsareadvisedtouseconserva.veprojec.onsBepreparedtoinjectcashintotheactualaquacultureopera.onsforatleastthefirstyear

22.EconomicsustainabilityintheAquacultureindustry

•  Dependingonthetypeofspeciesanddetailsoftheexpansionplancashreservesshouldbesetaside

•  Cashreservesareneededalsoforunexpectedevents(disease,seasonalcontrac.onsinwholesaleprices,earlyyearexpansionplans,unan.cipateddelaysinfullpaymentofaccountsreceivable,etc.)

23.EconomicsustainabilityintheAquacultureindustry

•  Neverputtheprojectoryourinvestmentinjeopardybyhavinginsufficientcashtofeedthefish,make.melyloanpayments,andpaythecompany’semployees.

•  Thesearethelifebloodoftheopera.on

24.MaximizeReturnsintheAquacultureindustry

•  Thegreatestreturnsoninvestmentareachieved

bymaximizingeconomiesofscalesuchas:by

inves.nginresearchanddevelopment,

hatcheries,aquaculturefeeds,grow out

operations,processingplantopera.ons,seafood

sales,marke.nganddistribu.on

25.MaximizeReturnsintheAquacultureindustry

•  Investmentinfullyintegratedaquacultureopera.onarenotinsignificantandcaneasilyexceed40million€

•  Mostqualifiedinvestorsstartwithmuchsmallerandmoreconserva.veinvestmentsandini.allyfocusononepar.cularsegmentoftheindustry

•  Theexpertadvisetheclientstoconsiderinvestmentofnolessthen1million€inneworexis.ngprojects

THANKYOUFORYOURATTENTION!

Constan.nYannios