Slide 1: Nine years as a Fish Investor
« Nine years as a Fish Investor » Geveran Trading – Tor Olav Trøim - Leading the blue revolution DOC 2 : EXH 99.1
Slide 2: Forward looking statements
Forward looking statements 2 This presentation may be deemed to include forward-looking statements, such as statements that relate to Marine Harvest’s contracted volumes, goals and strategies, including strategic focus areas, salmon prices, ability to increase or vary harvest volume, production capa
Slide 3: Our Philosophy
§. Keep it Simple and Focused §. Lean & Efficient Management Teams §. Define where we are in the cycle §. Consolida@on & Economy of Scale works §. Build Credibility with Customers, Investors & Financiers §. Think and act like an Investor §. Spread the risk – Build porIolio in Holding §. No Debt in H
Slide 4: 2005: Cashing in on a cyclical peak – looking for a cyclical opportunity
2005: Cashing in on a cyclical peak – looking for a cyclical opportunity 4 * Shareprice including distributed dividend 1996 1998 2000 2002 2004 2006 Shareprice development 1996 - 2006 1996 1998 2000 2002 2004 2006 USD* 0 10 20 30 40 50 60 70 80 90 0 50 100 150 200 250 NOK
Slide 5: Solid salmon experience and an aggressive CEO
Solid salmon experience 5 §. and an aggressive CEO. The original half page research – and simple math
Slide 6: Consolidation – It has happened before
Consolidation – It has happened before 6 §. « We have evidence that more than a hundred labels existed in Germany in the 1920s, of which barely more than a dozen survived during the 1930s. The big record company Kuchenmeister become the victim of its rapid expansion. By the end of July 1931 Dutch an
Slide 7: | Prost | Vil bygge gigant
| Prost | Vil bygge gigant ogsa pa foredling
Slide 8: They said we couldn't do it...
They said we couldn't do it... i 2007 SS0r Mener Fredriksen har Kiopt for dyrt
Slide 9: -so we tried
-so we tried 9 §. 2005 §. Geveran Trading purchase 48% of Pan Fish (NOK ~800 m) §. Geveran Trading purchase 26% of Fjord Seafood (NOK 440m) §. 2006 §. Pan Fish acquires Marine Harvest NV from Nutreco/Stolt Group (EV EUR 1,325m) §. Pan Fish takes Fjord Seafood ASA private §. 2007 -2009 §. Focus on in
Slide 10: -and it worked Value creation
-and it worked 10 Value creation
Slide 11: MHG Grows fast – In a fast growing market
MHG Grows fast – In a fast growing market with significant opportunities for further growth 11 CAGR 8% CAGR 6%
Slide 12: 1. Experienced Management produce cost-efficient and better fish
1. Experienced Management produce cost-effecient and better fish 12
Slide 13: 2. Marine Harvest farming regions – risk management
13 Canada Volume: 28 000 Chile Volume: 56 000 Faroe Islands Volume: 9 000 Scotland Volume: 50 000 Ireland Volume: 8 000 Norway Region North Volume: 62 000 Norway Region Mid Volume: 59 000 Norway Region West Volume: 77 000 Norway Region South Volume: 56 000 2. Marine Harvest farming regions – risk ma
Slide 14: 3a. Vertical Integration – Fish Feed
3a. Vertical Integration – Fish Feed 14 §. Problem: Strong development in feed prices has led to increasing production cost §. Feed industry highly consolidated §. Solution: §. Build 220 thousand tonnes capacity – 60% of MHG requirement in Norway §. ~NOK 800m investment – Completion July 2014.
Slide 15: 3. MHG – 2014 Vertical Integrated
3. MHG – 2014 Vertical Integrated Leading position across the value chain 16 Bilder 220 thousand tonnes vs. global production of ~2.6m Marine Harvest business areas #4 #1 #1 405 thousand tonnes vs. global production of c.1.85m (22%) Global sales network Leading position in VAP Focus areas: Successfu
Slide 16: 4. SIZE MATTERS!
4. SIZE MATTERS! §. SIZE creates flexibility to serve our large customers better §. SIZE reduces risk §. SIZE gives some purchasing power §. SIZE and a strong VAP division creates flexibility 17
Slide 17: 5. Fish & Finance
5. Fish & Finance §. Bilde fra NYSE åpning with Alf Helge with Fish + Cocktail Party 18
Slide 18: Critical lessons learned
Critical lessons learned 19 §. Fish farming is a cyclical industry – Don’t use too much leverage §. Don’t be too ambitious §. Some of our best decisions have been not to move §. If you feel good – hangover is just around the corner - Expect the unexpected §. Production of salmon is a very efficient
Slide 19: Where do we go from here?
Where do we go from here? 20 §. Be good at what we are good at do more of the same – sustainable growth §. Create your own destiny – try to control your biology better §. Offer services others can’t offer logistically §. Chile? – We are not paying NOK 50 for capacity bought at NOK 25 a year ago when
Slide 20: Time to move from Cocktail Parties to Professional Branding
Time to move from Cocktail Parties 21 to Professional Branding
Slide 21: Population Growth
Source: Visualization from Gapminder World, powered by Trendalyzer from www.gapminder.org. Population Growth
Slide 22: Population Growth
Source: UN 2004 projections Population Growth
Slide 23: Development so far
Development so far 24 §. In Q2 2005 PAN FISH was a small distressed loss making fish farmer with approximately 2,400 employees and majority owned by the creditors §. In Q4 2013 Pan Fish’s successor, Marine Harvest, with 10,200 employees fed approximately 6 million people with 1 million kilos of salm