Marine Harvest – advantages in being big in aquaculture

Per Jarle DysjalandAnalyst, Strategy & Business Development

Refsnes Gods – 21 of August 2007

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Marine Harvest in brief

• Marine Harvest is one of the world’sleading seafood companies. We offer our customers and consumers a widerange of seafood products and produceone third of the world’s farmed salmonand trout (400,000 tons)

• The company is present in 20 countriesand has 9 000 employees worldwide. Marine Harvest is listed on the Oslo Stock Exchange (:MHG) and has more than 20 000 shareholders. The head office is located in Oslo, Norway

Present in 20 countries

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A unique seafood company

Marine Harvest

5 reasons to be big

1. Be the preferred supplier for largecustomers

ask for large volumesstable supplyfood safetywish to be supplied a broader portefolio(value-added-products and origins)

2. Rationalize important elements as slaughterhouses and transportation

3. Volume for integration downstream

4. Development of spin-offsMarine Harvest Ingredients

5. Critical company sizeResources available for R&D and Business Developement

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1. Preferred supplier - A European heavy weight

• Marine Harvest is the market leader in several countries

• We are among the top three providers of a full range of seafood on the continent

• The major European retail chains are our largest customers

• Our own team in NPD develop tasty and nutritious products in cooperation with our customers

2. Clustering production

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Iceland, Ny Fiskur & Bylgia

Sourcing whitefish & primary processingScotland, FS Scotland

Farming, primary processing & smokingIreland, MH Rinmore

Primary and secondary processing

France, Ultra Frais Boulogne

Primary processing & MAP

France, Ultra Frais Lorient

Primary processing & MAP

France, FS Appéti Marine

Secondary processing, traiteur products

France, FS Rolmer

Secondary processing, traiteur products

The Netherlands, FS Sterk

Primary processing & coating

Belgium, FS Pieters

Primary & secondary processing

3. Marine Harvest has 21 plants for VAP/processing in Europe

France, PF France

SmokingFrance, Kritsen

Smoking & Delicatessen

Sources: Team analysis

France, MH Rennes

Primary & secondary processing

France, Vivier Marins (partly MH)

Secondary processing

Belgium, MH La Couronne

Smoking

Poland, MH Poland

Primary & secondary processing

France, FS LMB

Primary processing

Europe

Plants in Norway/Scotland where processing is or may take place

4. Related businesses

• Fishoil and fishmeal productionMarine Harvest IngredientsNeed crictical volume (~40 000 tonnes) to get profitable

• Other speciesCapital intensive, long build-up phaseHalibut, YellowtailNew species

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5. R&D and Business Development

A company of 20 billion NOK turnover has more resources:

For doing reseach and development which can help thecompany/industry move forward

• More humane and effective harvest method in Canada• Saving water in Chile due to a high-tech water recirculation

system• Working close to customers to develop new product

concepts

To develop the business according to the huge opportunities which are in our industry

• New farming possibiiltes like Seabass/Seabream, Tilapia, Pangasius, Cobia etc

• Have focus on the global megatrends were the future shiftin population and economic growth will affect the wholeglobal economy

• New markets

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Size matters...

• Ability to supply large, stable volumes to large clients and internalVAP

• Economies of scale in production and logistics• Financial resources

New technologyAcquisitionsR&D/business development/related business

• Competence pool and knowledge exchange

...but not always if it leads to:

• Less focus• Higher administrative costs• Negative public image