DNB Foods & Seafood 26

� Development licenses

� Offshore

� Closed systems

� Land based

� Genetics/CRISP

� New players

Regulatory and technological innovation will solve

the growth problem

Source: Kontali, DNB

The road ahead

DNB Foods & Seafood

Sustainability is key Fish farming is good, both for you and the planet

27

Aquaculture

scores high both

on sustainability

and health

Source: EAT

Sustainability and health

The road ahead

DNB Foods & Seafood

Norwegian salmon ~antibiotics free

28

Extremely low antibiotics use in Norwegian salmon farming

The road ahead

Source: Nutreco

Antibio

tics (

kg)

Volu

me o

f fa

rmed s

alm

on in N

orw

ay,

tons (

000)

DNB Foods & Seafood

Optimal size of corporations External transaction costs > internal transaction costs = growing companies

Ergo, consolidation will continue

29

External

transaction

costs

Company A Company B Market

Driving force for larger and more integrated corporations � Biological control

� Quality control throughout the whole value chain

The road ahead

Source: DNB

DNB Foods & Seafood

New industries

30

Tidligere har vi hatt 80% fiske

og 20% oppdrett. Nå skal vi

ha 50/50, og da trenger vi å

utvikle et samarbeid hvor

norske selskaper hjelper oss.

Dere er pionerer og veldig bra på teknologi.

Irans landbruks- og

sjømatminister, sitat fra VG

Smelteverket Finnfjord vil lage laksefor

The road ahead

DNB Foods & Seafood

Leveraging salmon farming know-how into new species

31

Leveraging salmon farming know-how into new species is an important M&A driver

� Pharmaq

� Ewos

� Skretting

� Lerøy/Havfisk/Norway Seafoods

What we know about salmon we can globally for 60+ different species -Nutreco CEO Knut Nesse

The road ahead

Source: Nutreco

DNB Foods & Seafood

Atlantic salmon � small but leading within aquaculture

32

The road ahead

High level of industrialization, low risk

Source: MMHG/Kontali

� Aquaculture production has outpaced all other food-producing systems the last two decades

- FAO, SOFIA 2016

� Aquaculture will continue to be one of the fastest growing food sectors

- OECD-FAO Agricultural Outlook 2016-2025

DNB Foods & Seafood

What is size? Volume vs profits: the story of Apple vs Nokia

33

The road ahead

Size - volume Size - profits

Source: Asmco.com

DNB Foods & Seafood

The road ahead

Still early days Norwegian Gov�t hopes for 5x increase in sales by 2050

Sales in NOK bn, Gov�t scenario

Highly productive oceans

Marine alge

Aquaculture, new species

Suppliers, including feed

Marine ingredients

Salmon farming

Fisheries

Source: SINTEF

DNB Foods & Seafood

�Seafood is the new oil� Oil price collapse reinforced Norway�s focus on the seafood industry

35

The road ahead

Seafood is the stock market winner

Source: OSE, DNB

Seafood share of exports doubled

Source: SSB, DNB, OSE

Energy

Seafood

Materials

DNB Foods & Seafood

Norway � leader in ocean industries

36

Source: OECD, Menon

The road ahead

Share of GDP ocean based industries, percent

70% of

Norway�s

exports

from

ocean

industries

Fish & Ships

DNB Foods & Seafood

Thank you for your attention

37