Drivers of value creation in harvesting

June 9th, 2011

Thomas Farstad, CEO Aker Seafoods ASA

The preferred partner part of the Aker group

Agenda

Aker Seafoods in brief Value drivers in harvesting

Aker Seafoods Harvesting performance

The preferred partner part of the Aker group

Aker Seafoods consists of two businesses

Aker Seafoods ASA 100 % ownership

Aker Seafoods Harvesting 11 trawlers 29.6 licenses

Norway Seafoods

The preferred partner

Processing Marketing Sales and Distribution

part of the Aker group

Aker Seafoods details

Aker Seafoods / Norway Seafoods position in the value chain Harvesting Norway Seafoods

EFF: Tom Haga

Trawling in Norway Cod, Haddock and Saithe Catch 2010: 51 000 tons headed and gutted

Primary processing 9 in Norway 1 in Denmark

Secondary processing 1 in Norway 2 in Denmark 2 in France

Fresh and frozen filet products Whitefish, salmon, trout Aker Seafoods covering 30 % of raw materials in Norway Working primarily towards retail France and Scandinavia

The preferred partner part of the Aker group

Q1 2011: Improved operations in Harvesting and positive outlook

Increased prices for white fish

Improved operations in Aker Seafoods Harvesting

Reduced capacity utilization in Norway Seafoods

Reduced margins for Norway Seafoods

Increased remaining quotas for Harvesting in 2011 compared to Q1 2010

The preferred partner part of the Aker group

Aker Seafoods - financial key indicators Q1 2011

Operating Revenues EBIT EBIT-margin (%) Earnings per share (NOK)

780

752 681 702

786

72 59

9 7,5

34

4,5

8
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

1,2

1,3

0,42 0,15 -0,12 0,11

0,36

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

The preferred partner part of the Aker group

Agenda

Aker Seafoods in brief Value drivers in harvesting

Aker Seafoods Harvesting performance

The preferred partner part of the Aker group

Value drivers in harvesting

Key value drivers Harvested volume EBIT Quota sizes Utilization-rate

EBIT / kg

Achieved prices Cost of harvesting per kg

The preferred partner part of the Aker group

Quota system
Total allowable catch (TAC) per specie set annually by the government International co-operation Researched based approach ICES recommendation The quota year starts for most species on January 1st Norwegian TAC distributed to different types of vessel groups Trawler fleet; Conventional fleet Other purposes (research, recruitment, recreation, etc.) Trlstigen - Trawler fleet 28 33 % of available quota Quotas distributed within each vessel group based on the number of existing licenses Quotas can be reallocated during the year
The preferred partner part of the Aker group

Trawler licenses
A total of 87.8 licenses for trawling of Cod in Norway

1 license gives quotas for Cod, Haddock and Saithe north of 62 latitude
Each vessel can hold up to 3 licenses Each vessel have 1 license to harvest Saithe south of 62 latitude (Special vessels have 1.4 license)

Vessels can also hold licenses for Greenland Halibut, Shrimp and other permits Bi-catch (red fish, other species) also contributes to total value creation

The preferred partner part of the Aker group

10

North East Arctic Cod: Catches increasing

Biomass (thousand ton)
Umoden Gytebestand Bpa Blim Fangst

4000 3500 3000 2500 2000 1500 1000 500 0 1946 1948 1950 1952 1954 1956 1958 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

1600 1400 1200 1000 800 600 400 200 0

Catch (thousand ton)

4500

1800

Catch level

Source: The Norwegian Ministry of Fisheries

The preferred partner part of the Aker group

11

Increase in Norwegian quotas for 2011

Quotas for Norwegian vessels (ktons) 2010 vs. 2011 +6% + 19 % + 24 % - 17 % - 14 %
200 400 600 800

Sum
Cod

658 310 147 150 49

0

Increased by 10 000 tons on May 19th

Haddock
Saithe - N Saithe - S

All volumes in round weights

Source: The Norwegian Ministry of Fisheries; Aker Seafoods analysis

The preferred partner part of the Aker group

12

Price and cost drivers

Price drivers Fresh vs. frozen landings Price point for different species Cod highest revenue / kg Global supply and demand Salt fish segment important Cost drivers direct expenses Price influences salaries revenue sharing system Crew receives approx. 1/3 of total revenues Bunker oil prices Repair and maintenance Other costs (gear, admin, insurance, etc.) Depreciation Fleet structure Capacity vs. need (and vs. regulation) Catch rates, peak capacity per vessel
The preferred partner part of the Aker group

13

Prices fresh and frozen main species

Prices 2005-2010
Cod
30 25
NOK / kg

Haddock
20 16
NOK / kg

Saithe
16 14 12
NOK / kg
FERSK Hyse FRYS Hyse

20 15 10 5
0

12

10
8

8 4
0

6 4
2

0 2005 2006 2007 2008 2009 2010 1Q11

FERSK Sei FRYS Sei

2005 2006 2007 2008 2009 2010 1Q11

FERSK Torsk FRYS Torsk

2005 2006 2007 2008 2009 2010 1Q11

Average gap:

2.7 NOK / kg

4.1 NOK / kg

3.0 NOK / kg

The preferred partner part of the Aker group

14

Cost overview* - main categories

22 %

14 %
Bunker Oil

4% 31 % 18 % 12 %
Figures illustrate AKS Harvesting 2010 performance

Personnel costs Maintenance Other costs Administrative costs EBITDA

*Share of revenue

The preferred partner part of the Aker group

Agenda

Aker Seafoods in brief Value drivers in harvesting

Aker Seafoods Harvesting performance

The preferred partner part of the Aker group

16

Harvested volumes
Total harvested volumes 2008 2011
MT (H/G weight)
60 000

Quota utilization 2011

MT (H/G weight)
25 000 20 000
15 000

50 000 40 000
30 000

20 000 10 000
0 2008 41 011 2009 46 780 2010 51 254 YTD 2010 16 616 YTD 2011 14 647

10 000
5 000

0
Remaining Quotas Catch Q1

Total catch

Cod 15 282 7 160

Haddock 15 490 1 703

Saithe N 8 525 4 453

Saithe S 4 314 871

Other 461

25 % increase in harvested volumes 2008-2010 Increased quotas for Cod and Haddock in 2011
The preferred partner

Challenging availability for Saithe Remaining quotas of Cod and Haddock 5 500 tons higher than Q1 2010

part of the Aker group

17

Quota utilization
2010 2009 2008

Total
Cod

Haddock
Saithe N Saithe S
0% 50 % 100 % 0% 50 % 100 %

0%

50 %

100 %

Quotas include all reallocations during actual year

Total utilization from 64 72 % Cod quotas fully utilized Lost opportunity on Saithe
The preferred partner part of the Aker group

18

Price development
Achieved prices 2008 - 2011
NOK/KG 24,0 22,0 20,0 18,0 16,0 14,0 12,0 10,0 8,0 6,0

Achieved prices per quarter

NOK/KG

Cod Haddock Saithe

2008 22,9 11,0 8,2

2009 15,7 10,3 8,7

2010 16,4 11,3 11,6

2011 YTD 18,4 12,2 13,4

24,0 22,0 20,0 18,0 16,0 14,0 12,0 10,0 8,0 6,0

Cod Haddock Saithe

Q1'10 16,0 12,1 11,4

Q2'10 15,3 11,8 10,9

Q3'10 15,5 10,7 11,7

Q4'10 18,3 11,6 12,3

Q1'11 18,4 12,2 13,4

Increasing prices for all species following price drop linked to 2008 financial crisis Significant increase for Saithe strong salt fish markets Cod prices below 2008 level
The preferred partner

Cod continuing at a level comparable to Q4 2010 Haddock back to a level above Q1 2010 Very strong development for Saithe

part of the Aker group

19

Operating cost development

Cost development 2008 - 2011
NOK/kg

6,0
5,0

4,0 3,0 2,0

1,0

2008 2009

2010
2011 YTD

0,0
Bunker oil Personnel costs Maintenance Other costs Depreciation

Bunker oil costs reduced from 2008 increasing trend Personnel cost increases with higher prices Maintenance and deprecation level per kg stable increasing in absolute value
The preferred partner part of the Aker group

20

EBIT per kilo

EBIT per kilo 2008 - 2011
NOK/kg

EBIT per kilo per quarter

NOK/kg

5,0 4,0 3,0 2,0 1,0 0,0

5,0
3,9

4,0 3,0

3,9 3,5

2,0
1,5 1,3

2,0 1,0 0,0

1,7 0,7

0,9

2008

2009

2010

2011 YTD

Non recurring items excluded. Overhead costs in 2008-2009 not distributed to segments (not included)

2010 profitability per kilo significantly improved over 2008 and 2009 Increased prices Improved profitability continuing in Q1 2011

The preferred partner part of the Aker group

21

Outlook 2011
Increased profitability in the Harvesting segment is expected in 2011 Quota situation is positive for the remainder of 2011 5 500 tons additional quota of Cod and Haddock remaining compared to Q1 2010 Reallocation in May increases quota with 900 tons of Cod Increased prices for white fish Increased fuel costs Increased quotas and renewal of trawler fleet enables more efficient fisheries Havtind to start fishing in Q2 2011 Evaluating technical and financial aspects of possible new vessels

The preferred partner part of the Aker group

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