Slide 1: Pan Fish – Marine Harvest
Pan Fish – Marine Harvest The world leading aquaculture company
Slide 2: Yesterday's news – tomorrow's opportunities!
Yesterday’s news – tomorrow’s opportunities! Pan Fish acquired 100% of Marine Harvest Transaction value of EUR 1 325 million (Enterprise Value) / Acquisition price of EUR 1 175 million Marine Harvest is by far the world's largest salmon producer Pan Fish has acquired 25.7% of Fjord Seafood Fjord’s s
Slide 3: Marine Harvest at a glance
Marine Harvest at a glance Company facts Salmon production per region (2006E) - WFE No. 1 salmon producer worldwide Norway Chile 34% 37% Salmon production 266,000 tons (wfe/06) Salmon production in all regions 16% of the global salmon market Unique mix of species Canada Scotland Ireland 10% 16% 3% E
Slide 4: Transaction rationale - summary
Transaction rationale - summary Creation of the undisputed leader in the aquaculture industry with 346 000 tonnes harvest volume Industrial Balanced production portfolio with leading positions in all major salmon producing regions rationale Uniquely positioned for further market development together
Slide 5: Industrial rationale - formation of the undisputed global leader
Industrial rationale - formation of the undisputed global leader Undisputed global leadership within aquaculture Balanced production portfolio "PFMH" World's top salmon companies (Global market share in %) - distribution of production (2006e - 1000T wfe) 400 20% Faer, 3 , 1% 346 Ire, 8 , 2% 350 Can,
Slide 6: Industrial rationale - significant organic growth potential
Industrial rationale - significant organic growth potential Harvesting Volumes, 2006e / 2008e Harvesting volume Development 2005 – 2008e, TGW 2006 2008 Harvesting tgw Estimates Targets 450 000 Norway 124 - 126 000 148 000 Scotland 53 - 55 000 63 000 400 000 North-America 35 - 36 000 51 000 350 000 F
Slide 7: Financial rationale - value enhancing for Pan Fish shareholders
Financial rationale - value enhancing for Pan Fish shareholders Global leadership at a discount to peers EV /kg comparison 100 92 90 80 74 70 68 67 NOK per kg gwe 70 65 63 61 60 52 50 45 40 36 40 30 20 10 0 "PFMH" Marine Harvest Pan Fish Fjord Seaf ood Lerøy Cermaq 2006e 2007e The transaction also o
Slide 8: Timing – Strong momentum and excellent market outlook
Timing – Strong momentum and excellent market outlook Norway (FHL price/Norwegian sales price) US – Chile (East coast fillets, fob Miami, 3-4 lb) 35.00 4.00 30.00 3.50 25.00 3.00 NO K/kg USD/lb 20.00 2.50 15.00 2.00 10.00 1.50 1-2002 14 27 40 1-2003 14 27 40 1-2004 14 27 40 1-2005 14 27 40 1-2006 ja
Slide 9: Marine Harvest financials and other details
Marine Harvest financials and other details 9
Slide 10: Marine Harvest - break down by region and quarter
Marine Harvest - break down by region and quarter Operational EBIT (EURm) Development 2005 (actual figures) Regions 1H Q3 Q4 Total Norway 18.5 18.4 25.1 62.0 UK & Ireland -3.5 3.2 9.5 9.2 Chile 6.6 5.6 8.4 20.6 Canada -5.2 -0.5 2.8 -2.9 Asia/overhead/S&M cost -6.6 -3.2 -4.6 -14.4 Total salmon 9.8 23
Slide 11: MH Norway - in process to become lowest cost producer
MH Norway - in process to become lowest cost producer MH Norway cost development Production clusters 24 Cluster North NOK/kg GWT (ex. GW amort) 22.88 100% 48% SFI/Nova S 22 5 sites, 20.87 1 processing plant 1 processing plant 8 licenses 26 licenses 20 18.98 Cluster Mid 18 17.63 17.26 22 sites 16.58
Slide 12: MH Scotland – huge improvements in operation
MH Scotland – huge improvements in operation UK operational EBIT/kg development Measures taken and events in the UK 2 UK government legislation allows for larger farms with increased volume per location 0.97 MH Scotland will reduce number of farms from 65 to 41 marine on-growing 1 sites. Huge positi
Slide 13: MH Canada – strong profitability improvement
MH Canada – strong profitability improvement MH as the other Canadian West Cost producers on East Coast and Chinooks are discontinued the way to low cost and sustainable profits Operational EBIT/kg Canada 2005 YTD Canada production volumes 2004 - 2005 1 100% 90% 0.39 Whole fish tons thousands 0.5 80
Slide 14: Chile – cost of production focus going forward
Chile – cost of production focus going forwad 2004 – 2005 cost development 2004 2005 Volume sold WFE 90 85 Costs in USD/kg WFE Release from stock cost including mortality cost 1.44 1.65 Operating expenditure 0.02 0.02 Well boat/harvesting/processing 0.51 0.51 Depreciation/goodwill amortization 0.08
Slide 15: Summary
Summary • Industry leader position taken • Lowest cost production position potential Strong competence, superb sites, unique experience, financially strong • Focus on sustainability and animal husbandry • Strong customer portfolio to be supported by best service • Focus on value creation through str