Viggo Halseth COO Aquaculture London Seafood Investor Forum

Viggo Halseth – COO Aquaculture London Seafood Investor Forum London| 19 November 2013

Agenda 1 Setting the stage 2 Strategy 3 Growth prospects 4 Innovation 2

Doubling food production Halving the pressure on the planet Feeding 9 billion people in 2050 3

The essential link Raw material markets Struggling supplies Animal nutrition & fish feed producers Farmers Surging Demand 4

Ambition 2016 – driving sustainable growth Higher value-added portfolio of nutritional solutions Segments Premix & Feed Specialties and Fish Feed Growth geographies Latin America, Russia, Asia and Africa Sustainability 5

Ambition 2016: Fish Feed Existing markets Volume from 1. 3 to 1. 8 million MT (2010 -2016) New markets Volume from 50, 000 to 900, 000 MT (2010 -2016) R&D Roll-out Micro. Balance to other species Nonsalmonid Maintain leadership Volume share from Grow salmonid feed 28% to 45% (2010 - volume in line with the market 2016) (5% CAGR) EBITA margin EBITA operating margin 7% Double volume from 1. 3 million MT to 2. 7 million MT (2010 -2016) 6

The blue revolution towards 2020 Global production of seafood 1950 – 2020 Tonnes (x million) Billion 9 250 200 p orld tion a l u p o 5 Aquaculture 4 100 3 50 0 7 6 W 150 8 Wild catch 1950 1960 1970 Aquaculture: Annual growth of 8. 7 % per year for the past 30 years 1980 1990 2000 2 1 0 2010 2020 e One of the fastest growing food sectors 7

Steady growth of global salmon farming industry k. Tonnes 2, 500 2, 000 1, 500 Other Faroes Canada CAGR 9% 1, 000 UK Chile Norway 500 0 1992 2000 2005 2010 2015 e Sources: Kontali, ABG Sundal Collier, companies 8

The potential of Norwegian aquaculture Salmonid value chain 2050 2030 2010 1999 Economic value € 1. 5 billion 10% CAGR Economic value € 4. 3 billion 6. 5% CAGR Economic value € 15 billion 3. 5% CAGR Economic value € 30 billion Volume 0. 5 mill. tonnes 6. 5% CAGR Volume 1 mill. tonnes 5. 6% CAGR Volume 3 mill. tonnes 2. 6% CAGR Volume 5 mill. tonnes Source: Value created from productive oceans in 2050, SINTEF, 2012 9

Skretting – the global brand for fish feed Focus on sustainability Feed-to-food safety Innovation and R&D 10

World’s largest and most modern fish feed factory - Averøy Upgrade fully completed in 2013 Nutreco’s largest ever capex project Total investment of approx. € 80 million Additional capacity of 150, 000 MT Total capacity now 450, 000 MT 11

Innovation in fish feed is key to meet future demand • To meet growing demand for aquaculture (by 2030), supply should grow by 5. 6% per year. However, expected growth based on recent trends is only 3. 5%. . . • Meeting this gap between future demand/supply for aquaculture will depend on the availability of quality and affordable feeds, additional production locations and sufficient water supply • We need to invest in innovation in fish feed to support growth in aquaculture: • Continued emphasis on alternatives to fishmeal and fish oil • Sustainable supply of plant feed ingredients • Improving feed formulation and production Sources: 2007 -2030, Arni Mattheson, FAO, Aqua. Vision 2012 presentation; The State of World Fisheries and Aquaculture 2012 - FAO 12

Skretting ARC – world class fish feed R&D Nationalities • >100 staff; 33 researchers • 20 nationalities • >40 with university degree Specialists • Specialists in fish and shrimp nutrition, health and feed technology Collaborations • Collaborations with over 40 research institutions worldwide Important innovations Optiline Premium 13

Unique knowledge – Skretting’s passion for fish Nutrition Process technology Raw materials Our competence in research and application in daily feed production gives us a competitive advantage Goals Fish health Fish performance Feed quality Food safety Sustainability 14

Global supply and use of fish oil 1, 600 1, 400 Omega 3 industry X 1, 000 tonnes 1, 200 1, 000 800 600 Edible, hardening, technical use 400 Aquaculture 200 0 1963 1970 1980 1990 2004 2010 15

The Micro. Balance concept Thanks to Micro. Balance Norwegian salmon producers became net fish protein producers in 2010 4. 0 3. 5 3. 0 2. 5 2. 0 1. 5 1. 0 0. 5 0. 0 1995 2000 2005 2008 2009 2010 2011 2012 Potential Kg fish protein used in feed versus Kg fish protein produced The Micro. Balance concept will also be applied to other species such as sea bass. Competence and technology is now being extended to marine species and shrimp Source: Skretting ARC 16

Protec - The fine art of protection Skin Gills Gut The immune system Cell regeneration Anti-oxidative Virus Parasites Bacteria 17

Optiline Premium Introduction of Optiline Premium across more countries and additional species Added metabolic activators which increase digestible energy and digestible protein levels Benefits of Optiline Premium: • • Higher fillet yields More omega 3 Increased growth Improved FCRs 18

Micro. Balance™ Setting the scene for world-class shrimp R&D • Additional researchers • Chinese shrimp research station • Collaborations with world-class research organisations • Applied technology to operating companies R&D strategy for fishmeal replacement Based on the technology platform developed for salmon: • Initial R&D focus on key limiting nutrients • Alternative protein raw materials being tested • We expect to start implementing our shrimp Micro. Balance concept within 12 months 19

Conclusion • Strong forecasts for global aquaculture growth • Future demand for food from aquaculture will largely depend on the availability of quality feeds • Innovation in fish feed is key to meet future demand • Nutreco’s key driver is to support our customers through innovative sustainable feed solutions that contribute to their productivity and profitability 20

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