Katla Seafood Namibia September 25 2020 Mr Baldvin

Katla Seafood Namibia September 25, 2020

Mr. Baldvin Þorsteinsson Mr. Jóhannes Stefánsson Mr. Sigurður Ólason Mr. Tangeni Shiimi-ya-Shiimi Katla Seafood Namibia September 25, 2020 Katla Seafood Namibia

Contents 1. Samherji Group 2. Katla Seafood Ltd 3. Katla Seafood Namibia September 25, 2020

1. Samherji Group 2. Katla Seafood Ltd 3. Katla Seafood Namibia 1 September 25, 2020

Samherji Group A Proud History • Samherji was founded in Iceland in 1983 as a fishing company. • Soon it developed into a fully vertically integrated seafood company. • Now 29 years later Samherji has become one of the largest fishing companies in the world. • The operations extends from Iceland to : – Norway, Faroe Islands, UK, Germany, Poland, Latvia, France, Spain, Morocco, Mauritania, Namibia, Canada and the Pacific Ocean. Katla Seafood Namibia September 25, 2020

Samherji Group From Catch to Market 6 The Market Fishing Control Sales Vertically Integrated Export and Logistics Fishing / Fish Farming Processing Katla Seafood. September 25, 2020

Samherji Group Overview of the Group Katla Seafood Namibia September 25, 2020

Samherji Group Facts and Figures Samherji’s Annual Turnover [million EUR] 600 500 400 300 200 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 0 • Turnover 2011, 480 million EUR. • Strong balance sheet and healthy operation. • 40 vessels, 13 land based plants and 5 fish farming locations. • Catch around 450. 000 MT of fish yearly. • Samherji has been profitable every year. Katla Seafood Namibia September 25, 2020

Samherji Group Operates in 13 countries • • • • Iceland Norway Canada Faroe Islands UK Germany Poland Latvia France Spain Morocco Mauritania Namibia Katla Seafood Namibia September 25, 2020

Samherji Group Sales and marketing network, extends over 45 countries Russia Canda USA Morocco Brasil Katla Seafood Namibia Mali Guinea Liberia Ivory Coast Ghana Burkina Faso Togo Benin Nigeria Cameroon Equitorial-Guinea Congo DR Congo Angola Namibia Japan China Taiwan Thailand Zambia Mozambique Zimbabwe Botswana South Africa Australia September 25, 2020

1. Samherji Group 2. Katla Seafood Ltd 3. Katla Seafood Namibia 2 September 25, 2020

Katla Seafood Ltd History • Samherji acquired Katla Seafood in 2007. • It was an operation with a catching history in Morocco and Mauritania since 1998. • The head quarters of Katla Seafood are in the Canary Islands. Katla Seafood Namibia • Currently Katla Seafood operates vessels in Mauritania and Namibia. • It used to operate vessels in Morocco and in Pacific Ocean as well. • The fleet consists of 6 fishing and 2 service vessels. September 25, 2020

Katla Seafood Ltd The Market • Katla Seafood‘s African market extends over 23 countries. • It is a market with 630 million people. Tunisia Morocco Mali Guinea Liberia Ivory Coast Ghana Burkina Faso Togo Benin Nigeria Cameroon Equitorial-Guinea Congo DR Congo Angola Namibia Katla Seafood Namibia Egypt Zambia Mozambique Zimbabwe Botswana South Africa • Katla Seafood‘s sales network is continously evolving and we are always on the look for new markets. September 25, 2020

1. Samherji Group 2. Katla Seafood Ltd 3. Katla Seafood Namibia 3 September 25, 2020

Katla Seafood Namibia (KSN) Namibianisation • KSN is a Namibian owned company. • Majority owner is Momeva Fishing Enterprise. • Momeva’s shareholders are all from Previously Disadvantaged Groups. • Shareholders consist of: – Non-profit organization. – Diverese business professionals and executives. • Led by Mr. Tangeni Shiimi-ya-Shiimi – Highly credible personal and professional record. • Global business experience • Diverse business interests: – Diamond Sector, – Information Technology, – Oil and Gas, etc. Katla Seafood Namibia September 25, 2020

Katla Seafood Namibia What Have We Accomplished So Far • The vessel Heinaste started fishing in March 2012. – The vessel was later replaced by the vessel Sirius. • Total catch until end of June was 14. 000 tons. • Opened an office in Walvis Bay and hired two personnel. • Currently there are 27 Namibian crew members working on the vessel. • Good reputation. Katla Seafood Namibia September 25, 2020

Katla Seafood Namibia What Have We Accomplished So Far • KSN is quickly growing into a household name with strong partners. • Solid relationships with: – Ministry of Fisheries, – Various Fisheries Authorities, – Crew and trade unions. • Reputation for: – Highly mordernized and efficient processes, – Highly advanced vessels, – Very ethical and transparent, – Law abiding operator. Katla Seafood Namibia September 25, 2020

Katla Seafood Namibia Arguments for the Proposal to Right Holders • Right Holder will Provide: – Access to Horse Mackerel Quota. Katla Seafood Namibia September 25, 2020

Katla Seafood Namibia Arguments for the Proposal to Right Holders • Katla Seafood Namibia will Provide: – Seaworthy vessel(s) in good conditions. – Management knowhow and experience. – Access to expert management team including: • Technical staff, sales people, directors and etc. Katla Seafood Namibia – Access to Katla‘s marketing network and brand. – Working capital as needed. – The financial risk is carried by Katla Seafood. – Strong Shareholders in Katla Seafood Namibia. September 25, 2020

Katla Seafood Namibia Business Plan – First 6 Years Assumptions: • Quota 40. 000 T p. a. and • USD 950 product sale price. Year 1 Year 2 000 NAD/T Revenue 311. 600 000 NAD/T 7. 790 311. 600 Operational cost 200. 119 Quota payment (15%) 46. 740 000 NAD 7. 790 1. 869. 600 5. 003 1. 200. 711 1. 169 0 280. 440 0 5. 003 200. 119 Year 1 -6 000 NAD NAD/T 7. 790 311. 600 5. 003 200. 119 Year 5 000 NAD/T 7. 790 311. 600 5. 003 200. 119 Year 4 000 NAD/T 7. 790 311. 600 5. 003 200. 119 Year 3 1. 169 46. 740 Management fee (5%) 15. 580 390 93. 480 Pre-tax profit 49. 161 1. 229 294. 969 Quota Holder Share (30%) 14. 748 369 88. 491 RH Quota Payment RH Funds Right Holders Total 46. 740 14. 748 61. 488 1. 169 46. 740 369 14. 748 1. 537 61. 488 1. 169 369 1. 537 280. 440 88. 491 368. 931 Katla Seafood Namibia September 25, 2020

Katla Seafood Namibia Economical Outcome for Each JV Year 1 Year 2 000 NAD/T Year 3 000 NAD/T Year 4 000 NAD/T Year 5 000 NAD/T Year 6 000 NAD NAD/T RH Quota Payment 11. 685 1. 169 11. 685 RH Funds Right Holders Total 3. 687 369 3. 687 1. 169 70. 110 369 22. 123 15. 372 1. 537 92. 233 – 15%. • Percentage paid from profits: – 30%. – Part of amount could be used for investment in industry. Katla Seafood Namibia 369 3. 687 000 NAD 369 3. 687 • Percentage paid from Ex-Hatch sales price. 369 3. 687 Year 1 -6 • Portion of product availible at market related price. • Participate in KSN operation. • Form a charitable trust. – Trustees will be right holders. – Pay scholarships. – Donations. September 25, 2020

Katla Seafood Namibia Potential Investment Channels RH Investment Fund Cold Store (2013) Horse Mackerel Vessel (2015) Factory on land (2017): – Horse Mackerel Processing Unit. – White Fish Processing Unit. – Drying Fish Processing Unit. Katla Seafood Namibia September 25, 2020

Katla Seafood Namibia Future Investments • KSN is committed to invest in the industry with Right Holders. Factory Unit Pelagic Unit Hake Unit Drying Fish Unit Cold Store RSW Vessel Hake Vessel Sea Frozen Vessel Other workers Total Katla Seafood Namibia Max Investment Job Creation 40 million N$ 300 48 million N$ 520 32 million N$ 90 48 million N$ 10 112 million N$ 20 40 million N$ 50 320 million N$ 100 34 640 million N$ 1. 124 September 25, 2020

Katla Seafood Namibia Job Creation • The objective is to have 60% Namibians in the crew on the vessel. • The objective is to train and educate Namibans on board our vessel to have highly qualified fishermen. • One person from each right holder will be working in KSN office in the administration. – – Sales department, Purchasing department, Technical department, Etc. • One person from each right holder will be sent to Iceland for education. Katla Seafood Namibia September 25, 2020

Katla Seafood Namibia Transfer of Knowledge • Send selected Namibians for training at Samherji in Iceland. – At office and factory. • Exchange Programs: – Finance programs for Namibian marine students to study in Iceland for one semester. – Introduce Icelandic marine teachers to Namibia to teach in the maritime school in Walvis Bay. Katla Seafood Namibia September 25, 2020

Katla Seafood Namibia Transfer of Knowledge • Study Programs: – Finance programs for Namibian students to study in Iceland. – United Nations University. – University of Akureyri. • Faculty: Fisheries Science – Objective: Train and educate future directors for the seafood industry. Katla Seafood Namibia September 25, 2020

Katla Seafood Namibia Why do We Believe We are the Right Partner • We believe that our decades of experience in this business, – both in operating vessels and land based processing facilities, • Makes us uniquely positioned to successfully participate in developing the seafood industry even further in Namibia, • In close cooperation with local people. • We are in line with what the Minister is saying. Katla Seafood Namibia September 25, 2020

Katla Seafood Namibia Why do We Believe We are the Right Partner • We are a global operator with decades of experience, – with powerful and efficient fleet and – extensive marketing and sales network. • Therefore we have great ability to catch, process and sell our products. • We have world best working conditions and environment onboard our vessels. • We build up long term relationships. • We have a successful track record in building up and developing fishing and processing on a foreign ground. Katla Seafood Namibia September 25, 2020

Questions? Katla Seafood Namibia

Thank you! Katla Seafood Namibia