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Haikui Seafood AG

Management Presentation

April/May 2012

IMPORTANT NOTICE

This presentation was prepared by Haikui Seafood AG solely for use at the management presentation held in connection with the contemplated offering of shares of Haikui Seafood AG. It is furnished to you solely for your information, should not be treated as giving investment advice and may not be copied, distributed or otherwise made available to any other person by any recipient. The contemplated offering and the information disclosed in this presentation should be kept confidential until publicity disclosed by Haikui Seafood AG.

The selected facts and information contained in this presentation are as up to date as is reasonably possible and are subject to revision in the future. Neither Haikui Seafood AG nor any of its directors, officers, employees or advisors nor any other person make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this presentation or shall have any liability whatsoever for losses howsoever arising, directly or indirectly, from any use of this presentation.

This presentation may contain forward-looking statements, which involve risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These forward-looking statements reflect Haikui Seafood AGs current expectations and projections about future events and may be identified by words such as expectation or target or forecast and similar expressions, or by their context. These forward

looking statements are made on the basis of current knowledge and assumptions. Various factors could cause actual future results, performance or events to differ
materially from those described in these forward-looking statements. No obligation is assumed to update any forward-looking statements.

The following information does not constitute either an offer for the sale or the solicitation for making an offer for the purchase or the subscription of shares in Haikui Seafood AG, but serves exclusively information purposes. Any potential future offering of shares will only be conducted on the basis of a securities prospectus to be approved by the German Financial Supervisory Authority (BaFin). Potential investors should base their investment decision solely on such securities prospectus.

The following information may only be distributed in other jurisdictions in compliance with the respective local regulations and persons who come into possession of this information have to inform themselves about the local regulations and have to obey them.

CONTENTS

1/ 2/ 3/ 4/

INTRODUCTION MARKET AND COMPETITION CORPORATE PROFILE STRATEGY

5/ 6/

FINANCIAL PERFORMANCE OFFERING APPENDIX

1/ INTRODUCTION:

Management Team

Mr CHEN Zhenkui // Executive Chairman/ CEO (52) Founder and majority shareholder (56.6%), third generation in the seafood business Responsible for overall management and corporate development More than 20 years of management experience in the seafood industry Vice Chairman of the All-China Federation of Industry & Commerce Aquatic Industry

Mr HUANG Zhenping // Executive Director/ COO (48) Joined as Deputy General Manager in 1997 Responsible for corporate administration and operations Executive Member of the Dongshan County Chamber of Commerce More than 15 years of general management experience in the seafood industry

Mr Alan GEY // Executive Director/ CFO (40) Joined Haikui in 2007 Responsible for financial reporting, treasury, compliance and investor relations More than 15 years experience in finance, banking and general management in international organisations (Shanghai TREFFERT Special Coatings, Standard Chartered Bank, DBS Bank) Member of the Association of Chartered Certified Accountants (ACCA) Native English & Chinese speaker

Source: Company information

Well respected and committed team with long-standing industry expertise 4

1/ INTRODUCTION:

Supervisory Board

Dr Klaus VIETEN // Chairman of the Supervisory Board German national Chairman of the Board of the Seafood Information Centre in Hamburg Former Managing Director and shareholder of Pickenpack Hussmann & Hahn Seafood GmbH Former Member of the Executive Board of FROSTA AG Former Deputy Chairman of the Federal Association of the Fish Producing Industry in Germany

Dr Rainer SIMON // Deputy Chairman of the Supervisory Board German national Current Chairman of the Supervisory Board of Joyou AG, a Chinese designer, producer and distributor of faucets and other sanitary ware products, listed in the Prime Standard of the Frankfurt Stock Exchange (IPO 2010) Former Member of the Management and Supervisory boards of Friedrich Grohe AG

Mr Hock Eng CHAN // Member of the Supervisory Board Singapore national, native Chinese and English speaker Managing Partner of Zana Capital, a private equity fund management company, managing two of Haikuis shareholders Mega Bond International and Everswift Holdings More than 15 years of experience in business management and operations, as well as the implementation and management of joint ventures and direct investments

Source: Company information

and strong dedication to corporate governance 5

1/ INTRODUCTION:

Haikui at a Glance

Summary overview

Key figures
m
Revenue % growth EBITDA % margin Net profit % margin Avg. permanent employees Avg. temporary contract workers Avg. total employees incl. temporary contract workers

Seafood processor with a total portfolio of more than


Haikui Seafood

2009
94.5 60.9% 20.5 21.7% 18.0 19.1% 366 1,438 1,804

2010
126.2 33.5% 27.1 21.5% 23.3 18.5% 430 1,475 1,905

2011
152.1 20.5% 35.4 23.3% 28.3 18.6% 605 1,589 2,194

100 frozen and canned seafood products Founded: 1993 Processing plants: Dongshan, Fujian province, China

Primary and secondary processing of seafood All steps from inspection of new raw material to quickBusiness

freezing, packaging and warehousing of finished products Annual processing capacity of 28,543 tonnes (Output) Compliance with international food quality standards

Access to diversified supplier base (both aquaculture and


capture fishing) Procurement

Close co-operation with suppliers based on framework


agreements

Cold storage capacity of approx. 15,000 tonnes Diversified customer base, incl. 86 overseas and 21
domestic distributors
Distribution

Core markets served are Europe, USA, Asia and China Top seafood exporter in Fujian province since 2008 with
more than 10 years of solid export track record

Source: Company information

Major seafood processor in China with excellent access to raw material and established distributors worldwide 6

1/ INTRODUCTION:

Product Portfolio

88%

Frozen Seafood
(88% of revenue 2011: 133.7m) Seafood which has undergone cleaning, cutting, scaling, seasoning, drying, grilling and/ or cooking before quick-freezing

12%

Canned Seafood
(12% of revenue 2011: 18.4m) Seafood which has undergone cleaning, cutting, scaling, seasoning, drying and/ or cooking before packing into cans and heat sterilisation

Crab

Prawn

Fish

Others

Fish & Others


Tuna meat (in vegetable oil, tomato sauce or brined) Mackerel (in vegetable oil or tomato sauce) Sardines (in vegetable oil or tomato sauce) Spicy snapper Canned eel Canned abalone

Shelled crab meat Cut crab Whole crab Crab cake Stuffed crab Pasteurised crab

Shelled prawn meat Partially-shelled prawn Whole prawn Dried prawn Prawn ball Breaded prawn Shrimp rolls

Sliced fish meat Fish fillet Fish paste Fish balls Fish noodle Fish cake Breaded fish fillet Dried fish meat Whole fish Grilled eel

Dried cuttlefish/ squid Cuttlefish balls Seafood rolls Breaded squid rings Sliced octopus/ squid Squid fillet Whole octopus/ squid Breaded oyster Mussel, oyster, scallop and clam meat

Source: Company information

Broad and well-diversified product portfolio with more than 100 high quality seafood products 7

1/ INTRODUCTION:

Key Investment Highlights

Well positioned to exploit growth opportunities in China and globally Strong domestic and international reputation as a high quality manufacturer Strategic location in Dongshan with diversified access to high quality raw materials Abundance of qualified local workforce at low cost in combination with low fluctuation Highly flexible organisation with efficient processing capabilities Multi-species product offering and strong domestic and international distribution base

Committed management team with long-standing industry expertise


Track record of high growth, profitability and cash generation

Haikui presents a compelling equity story ... netting value from a sea of opportunities 8

CONTENTS

1/ 2/ 3/ 4/

INTRODUCTION MARKET AND COMPETITION CORPORATE PROFILE STRATEGY

5/
6/

FINANCIAL PERFORMANCE
OFFERING APPENDIX

2/ MARKET AND COMPETITION:

Global Seafood Consumption

Global seafood consumption 1997-2007


(in m tonnes)

Total seafood consumption by country in 2007


(in m tonnes)

CAGR 2.1%
109.8 108.2 105.8 103.4 101.4 98.4 95.1 93.2 91.4 89.5 99.5

China Japan United States India Indonesia Philippines Russia Korea Bangladesh Vietnam France Thailand Spain Italy 2.9 2.7 2.5 2.4 2.2 2.1 2.1 1.8 1.4 1.3 7.7 7.4 6.0 5.5

35.4

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Egypt

Source: FAO, FAOSTAT

Steadily growing global seafood consumption 10

2/ MARKET AND COMPETITION:

Global Per Capita Seafood Consumption

Seafood consumption by region 1961-20071


(in kg/capita)

Seafood consumption forecast


(in kg/capita)

80

World

2007
70

Japan
60

60.8
2

17.1 16.7

= +2%

China
50
Rapid growth of income and urbanisation in China from the early 1980s to late 1990s

26.5 24.0 20.6 18.3 16.7 8.9


2007 2020e 26.5 2007 2020e

North America Europe Asia

40

China
35.9

30

20

World
10

= +35%

South America
0

Source: FAO, FAOSTAT, International Food Policy Research Institute (IFPRI) 1 FAOs consumption statistics based on a disappearance model using supply quantities: Captures + Aquaculture + Imports - Exports + Stocks - Non food uses 2 According to Chinas National Statistics Bureau (NSB), seafood consumption per capita in China amounted to 9.3kg in 2007 (9.7kg in 2009)

1961 1963 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007

Growth to continue globally expected to be particularly strong in China 11

2/ MARKET AND COMPETITION:

Seafood Expenditure by Province in China

Per capita seafood consumption is highest in coastal regions and areas with high disposable income Fujian is the #1 province in terms of per capita seafood expenditure
Top provinces and municipalities in terms of expenditure value per capita on seafood products in 2010
1000

818 714 670 658

444

422 364 322 293 327 267 16,566 19,109

31,838 27,359 21,781 15,581 23,898 24,292 22,944

17,713

19,946
17,064

7
Fujian

1
Shanghai

3
Zhejiang

21
Hainan

5
Guangdong

4
Tianjin

6
Jiangsu

9
Liaoning

8
Shandong

12
Guangxi

16
Hubei Nationwide average

Disposible income value 2010 (RMB/capita)

Seafood product expenditure 2010 (RMB/capita)

Disposable income rank

Source: USDA Foreign Agricultural Services

12

2/ MARKET AND COMPETITION:

Key Market Drivers

Rising health awareness globally

Rising affluence in China

Preference for processed seafood in inland provinces

Rising urbanisation in China

High nutritional balance of


seafood Excellent source of affordable high-quality animal protein

Dynamic economic growth,


now driven by rising domestic demand Rapid increase in disposable income Rise of the middle class

Scarcity of fresh seafood, due


to geographic isolation and under-developed distribution systems Longer shelf life of processed seafood

Hectic urban lifestyle leads to


shift in preference from fresh to processed, ready-to-eat seafood Higher importance of retail formats, e.g. supermarkets or hypermarkets

Growth of fresh and processed seafood consumption globally and in China

Growth of processed seafood consumption in China

Source: FAO, FAOSTAT, International Monetary Fund, Chinas National Statistics Bureau (NSB), USDA Foreign Agricultural Services, Company information, Euromonitor

Sustained market trends driving growth of processed seafood demand 13

2/ MARKET AND COMPETITION:

Seafood Processing Industry in China

China the worlds #1 seafood processor


Liaoning Processing trade hub Shandong

Industry benefits from - huge and growing domestic seafood production - low labour costs

Very fragmented industry landscape Yellow Sea Regional industry concentration

9,762 processing facilities with a capacity of 23.9m tonnes (2010) Trend towards industry consolidation Out of 10m tonnes of frozen processed seafood products in 2010,
Haikui captured a share of approximately 0.2%

Seafood processing hubs in major seafood production regions 67% of processing facilities concentrated in Zhejiang, Shandong,
Fujian and Guangdong provinces (2010)

Major seafood re-processing industries are based in Shandong and


Liaoning provinces

Zhejiang

East China Sea


Fujian

Increasing barriers to entry

High (working) capital requirements Stricter food quality and safety control Long due diligence procedures by distributors Access to sufficient supply of raw material

Guangdong

South China Sea

Haikuis competitive positioning

Top seafood exporting company in Fujian province since 2008 Largest seafood processor in Fujian province in 2011 (in terms of
sales and export statistics)

Top 10 seafood company in China Main competitors from Fujian, Guangdong and Zhejiang provinces

Source: Company information, USDA Foreign Agricultural Services

Major player in a very fragmented Chinese seafood processing industry 14

2/ MARKET AND COMPETITION:

Market Share Analysis

Sales of processed seafood1 in PRC: Value 2006-2016e


(in RMB m)

CAGR 9.3% CAGR 9.3%

5.370

5.845

6.484

6.868

7.447

8.379

9.160

10.008

10.925

11.936

13.058

2006

2007

2008

2009

2010

2011

2012e

2013e

2014e

2015e

2016e

Haikuis share of PRC retail sales1


(calculation based on RMB value terms)

Haikuis positioning in the (domestic) PRC market

Key market drivers result in strongly growing consumption of


processed seafood in China
4.8% 5.2%

4.9% 2.9%

Consequently, Haikui has put more effort into strengthening its


own Haikui brand and addressing demand in the PRC

As a result, Haikui has significantly increased its share in the PRC


consumer market for processed seafood from 2.9% in 2008 to 5.2% in 2011
2008 2009 2010 2011

Source: Company information, Euromonitor 1 Market definition: Domestic retail sales of frozen processed and canned/ preserved seafood (including processed, packaged and branded seafood products with additional ingredients)

Haikui captures a higher share in a growing market 15

2/ MARKET AND COMPETITION:

Selected Competitors

Active in
Production Dalian Zhangzidao Fishery Processing

Revenue 2011 (m) 326.6

EBIT 2011 (m)

Regional focus
Main products Domestic Export

Liaoning
Shandong Oriental Ocean Sci-Tech 83.8

68.8 Frozen and ready-to-eat (scallop, squid, prawn), sea urchin, sea cucumber, conch 9.8 Dried and fresh shrimp, instant scallop, squid, hoki chop, sea cucumber, fish seedlings, larval rearing n.a. Tuna, oysters, mackerel, sardines, fresh vegetables, frozen fruits, meat, poultry, pet food n.a. Crab, surimi, shrimp, tilapia, salmon, clam, pollock, grouper n.a. Prepared food (tuna and shrimp spring roll, cuttlefish ball and filet), frozen seafood (tuna, moonfish, swordfish), canned seafood (tuna and mackerel), snack food (squid, eel, cuttlefish) n.a. Canned seafood (crab, oyster, eel and clam meat), frozen seafood (skate, sand borer, cod, tilapia, squid, shrimp), frozen & dried fruits & vegetables n.a. Fresh and frozen packaged fish

Shandong

Ningbo Jinri Food (Ningbo Today Food) Dongshan Rongfeng Food

n.a.

n.a.

Zhejiang

Dong Xing Aquatic Product Processing (Taiwan Chii Chwan Group)

n.a.

Fujian Guangdong

Longhai Gelin Seafoods (Fujian Gelin Food Industry Group)

n.a.

Dongshan County Dongya Aquatic Product Zhanjiang Guolian Aquatic Products Guangdong Hengxing Group

n.a.

145.6 n.a.

2.2 Shrimp, fish, squid n.a. Frozen roasted eel, frozen eel, smoked eel

Source: Company websites, Capital IQ; calculated on basis of average exchange rates 1 LTM figures as of 30 September 2011 2 LTM figures as of 30 September 2010

Competitive edge over its main competitors due to multi-species strategy 16

CONTENTS

1/ 2/ 3/ 4/

INTRODUCTION MARKET AND COMPETITION CORPORATE PROFILE STRATEGY

5/
6/

FINANCIAL PERFORMANCE
OFFERING APPENDIX

17

3/ CORPORATE PROFILE:

Haikuis Strengths within the Value Chain

Supply of raw materials

Processing

Distribution

1.
Unique Selling Point

Strategic location in Dongshan

4.

Highly flexible, low-cost organisational structure

7.

Strong diversification

2.

Priority access to raw materials and stringent quality control

5.

Track record in expanding capacity and product range

8.

One-stop-shop

3.

Diversified sourcing and sufficient storage capacity

6.

High quality standards

9.

Well recognised Haikui brand

Covered by Haikui

Flexible and efficient organisation, well adapted to the prevailing market environment 18

3/ CORPORATE PROFILE:

Supply of raw materials

Processing

Distribution

Strategic Location

Top seafood producing provinces in China (2010)


Liaoning
Top 8 seafood producing provinces Haikuis main procurement areas

Strategic advantages current

Access to a variety of species due to location between East and South China Seas High water quality, no heavy industries nearby Stable, cost-competitive and sustainable supply due to ready access to both capture fishing and aquaculture Abundance of local skilled workers at relatively low costs, no dependency on migrant workers

Shandong Jiangsu Hubei Zhejiang Fujian Guangxi

Yellow Sea

East China Sea

No competing industries for local workforce


Well-positioned to benefit from improving relations between the PRC and Taiwan due to proximity to Taiwan Strategic advantages future potential Development of the Dongshan National Seafood Economic Zone (DNSEZ) and international marine port

Taiwan

Dongshan Island
Guangdong

South China Sea


14.6% 13.6% 11.0% 8.9% 8.6%

24.1%

8.0%

6.2%

5.1%

Access to more abundant and new species from coastal and international waters will reduce impact from fishing restrictions and supply side seasonality Further improvement of logistics infrastructure

Source: Company information, FAO, USDA Foreign Agricultural Services 2011

1.

Strategic location in Dongshan with excellent access to sustainable sources of high quality raw materials 19

3/ CORPORATE PROFILE:

Supply of raw materials

Processing

Distribution

Procurement

Supplier structure
Breakdown of revenues by type of source in 2011
Aquaculture farms 40.7% Capture fishing 59.3%

Framework supply agreements

Cold storage capacity

Framework supply agreements with


61 suppliers

Total advance payments to suppliers as a


percentage of total purchase made in the previous year is approx. 10%
8,000 15,000 15,000

Raw materials sourced from 84 suppliers


during 2011

Mainly from Fujian and Guangdong


provinces

Both capture fishing and aquaculture

2009

2010

2011

Diversified sourcing mix in terms of


no. of suppliers, regions and type of sourcing

Priority access

Up to 5% discount to market price


Quality control through supervision of
farms

Sufficient cold storage capacity Potential for price arbitrage

Protection against potential diseases


of species due to multi-species offering

Long-term relationships

Source: Company information 1 In Fujian province, restrictions on the trawling net fishing method are imposed from 15 May to 31 July. From 1 May to 30 June, fishing restrictions apply to the stationary fishing method

2./3.

Supply-side seasonality and price volatility mitigated through diversified sourcing, framework agreements and sufficient cold storage facilities 20

3/ CORPORATE PROFILE:

Supply of raw materials

Processing

Distribution

Processing Capabilities

Processing overview

Comments Efficient processing capabilities


Crab processing line Prawn processing line

Majority of seafood products manufactured in-house Processing mostly manual, resulting in higher recovery rates and quality of finished products compared to machine processed seafood Total processing capacity of 28,543 tonnes p.a. (Output) Cold storage capacity of 15,000 tonnes p.a.

Highly flexible organisation at low cost Fish processing line Canning line

Large number of qualified temporary contract workers (1,589 in 2011) Abundant access to skilled local workers at low cost, no competing industries Haikui is considered an attractive and reliable employer No dependency on migrant workers that might move to other regions in China

Packing
Source: Company information

Quality control

4.

Business seasonality accomodated by flexible and efficient processing capabilities at low cost 21

3/ CORPORATE PROFILE:

Supply of raw materials

Processing

Distribution

Capacity Expansion

Development of pro-rata processing capacity 2007-today

(Output in tonnes)

14,007

23,203
New canning production line

23,203

23,648

28,543

28,543

New processing factory for grilled and frozen seafood products

Completion of new quick-freezing room in October 2007

5,340 445 5,035 5,035 5,035 5,035

5,340

Newly acquired assets (2010) Canning machinery Quick freezing rooms

5,035

839 13,200 8,200 1,440 1,008 2,520 2007 1,440 1,008 2,520 2008 1,440 1,008 2,520 2009 1,440 1,008 2,520 2010 1,440 1,008 2,520 2011 1,440 1,008 2,520 Current 13,200 13,200 13,200 13,200

Quick freezing plate machinery Crab quick freezing plate machinery Quick freezing roller machinery

Source: Company information

5.

Continuous expansion of processing capacities and product portfolio to meet growing demand 22

3/ CORPORATE PROFILE:

Supply of raw materials

Processing

Distribution

Quality Control System

Internal quality control system Strict quality control procedures to safeguard high quality of end products and compliance with relevant standards

International certificates and accreditations

Compliance with international food quality, safety and hygiene standards allows export to overseas regions (reviewed on a regular basis)
HACCP verification certificate (US)

Incoming

Allows products to be exported to the US Awarded since 10/2000

EU Registered Exporter of Seafood Products (EU)

In-process

Allows products to be exported to the EU


Awarded since 06/2005

ISO 22000:2005 Certification Demonstrates quality of food safety management Awarded since 10/2010

Halal Certificate (Islamic countries) Final Allows products to be consumed by Muslims Awarded since 10/2009

Source: Company information

6.

Stringent control procedures to comply with high international quality standards 23

3/ CORPORATE PROFILE:

Supply of raw materials

Processing

Distribution

Customer Network of Distributors

Haikuis distribution channels (2011)


Overseas
1

Top 3 customers 2009-2011


(in % of total revenues)

PRC
68.1% 31.9%

54.8%
10.7%

49.2%
11.2%

43.2%
11.7%

Top 3 customer
15.4%
Sales via Buying Agents2 86 Overseas distributors 21 Domestic distributors

20.7% 13.2%

Top 2 customer
22.6% 23.4%

Local distributors, supermarkets, restaurants, hotels, etc.

Top 1 customer

18.3%

Local overseas customers

Local PRC customers

2009

2010

2011

Sales mostly white label and free


on board (FOB)

Sales under both white label and


Haikui brand

Long-standing relationships with key distributors No real dependency on any particular distributor, as sales can easily be shifted between distributors One-stop-shop for distributors due to multi-species product range High flexibility to easily shift sales between global regions and to react to changing economic conditions

Main markets: Taiwan, US and


Europe

Main distributors primarily based


in Fujian province

Retail customers: e.g. Carrefour,


Tesco, Trust-Mart (Haoyouduo), NHD-Mart (Xinhuadu)

Source: Company information 1 Also includes 0.1% of direct sales to local corporates 2 Orders made by Buying Agents, but Haikui then delivers goods and invoices directly to international distributors; Buying Agent receives commission from the international distributors

7./8.

One-stop-shop with multi-species product range for a diversified network of distributors 24

3/ CORPORATE PROFILE:

Supply of raw materials

Processing

Distribution

Branding

Revenue breakdown by product brand 2009-2011 (in T)

Haikui was awarded China Famous Brand status in 2009

Third party brand 2009 2010

Haikui brand 2011

CAGR 9.2%

22,719

26,951 19,055 129,397 99,268 75,489


Participation in major national and international industry exhibitions and conferences to secure new orders and/ or expand Haikuis distribution network (e.g. European Seafood Exposition in Brussels, International Boston Seafood Show, China Fishery and Seafood Expo Exhibition)

CAGR 30.9%

Source: Company information

9.

Well-established Haikui brand to leverage on and further penetrate domestic market 25

CONTENTS

1/ 2/ 3/ 4/

INTRODUCTION MARKET AND COMPETITION CORPORATE PROFILE STRATEGY

5/
6/

FINANCIAL PERFORMANCE
OFFERING APPENDIX

26

4/ STRATEGY:

Strategic Cornerstones

I.
1

GEOGRAPHICAL EXPANSION
2 1

II. PRODUCT EXPANSION


2 3

Domestic PRC market

Overseas markets

Expansion of processing capacity

Expansion of supply base

Expansion of product development initiatives

Source: Company information Source: Company information

Growth strategy with strong focus on capacity expansion 27

4/ STRATEGY:

I. GEOGRAPHICAL EXPANSION

I. Geographical Expansion

Domestic PRC market


Expansion of distribution network

Overseas market
Further penetration of Europe and USA

6 branded flagship stores within the next 3 years

-Focus is on generating brand awareness -Centres of main cities of target regions -Average size of a flagship store: 30-50 sqm
2
Appointment of exclusive regional distributors
Sichuan Chongqing

Beijing

Benefit from growing global


demand

Strengthen Haikuis high-quality


reputation
Henan Shanghai Fuzhou Taiwan Dongshan Island Guangdong

Leverage international export


accreditations

-Regional distributors with track record -Focus is to distribute Haikui branded products -Greater focus on inland parts

Gui Zhou Xiamen Yunnan

Growth in Taiwan

Leverage first mover advantage


Flagship store set-up and operation: Set up and operated by local distributors Common Haikui design applied to each store (uniform branding) to promote corporate identity Haikui pays for rent and renovation (incl. buying cold storage facilities/refrigerators) Operator pays for labour and running costs; Buys and sells Haikui branded products in the store
Source: Company information

Proven concept in the industry and in China Build brand and protect/ improve margins Expand distribution network and regional
footprint throughout China

in doing business with Taiwan and further exploit - close proximity

- lower processing costs - better relationship between


PRC and Taiwan

Intensify collaboration with distributors on


an exclusive basis

Global approach with stronger penetration of domestic market 28

4/ STRATEGY:

II. PRODUCT EXPANSION

II. Product Expansion

Expansion of processing capacity


Upgrade of existing facilities

Expansion of supply base


Strengthen existing supply relationships

New construction

Build new factory within the next 3


years

Replacement Increased automation Improve efficiencies Increase overall output

Increase order volumes Deepen co-operation with


aquaculture farms Access new suppliers

Adding capacity

Additional framework agreements DNSEZ roll-out New international suppliers

Expand sales through doubling of processing capacity within the next three years

Expansion of product development initiatives

New R&D equipment Recruitment of highly skilled R&D


personnel

Research activities with external


researchers

Source: Company information

Capacity expansion to participate in rising demand 29

CONTENTS

1/ 2/ 3/ 4/

INTRODUCTION MARKET AND COMPETITION CORPORATE PROFILE STRATEGY

5/
6/

FINANCIAL PERFORMANCE
OFFERING APPENDIX

30

5/ FINANCIAL PERFORMANCE:

Key Performance Indicators

Revenue (m)

Gross profit (m)

CAGR 26.8%
126.2
+ 20.5%

152.1

94.5

+ 33.5%

2009

2010

2011

EBITDA (m)

Net profit (m)


Net profit Margin

23.4

28.3

18.0 19.1%

18.5%

18.6%

Tax rate
Source: Company information

2009 10%

2010 11%

2011 12%

2012ff 25%

Strongly growing and highly profitable business 31

5/ FINANCIAL PERFORMANCE:

Revenue Breakdown

Revenue by product (m)


Frozen seafood
+ 43%

Revenue by product brand (m)


Third party brands
18.4
+ 41%

Canned seafood
+ 55%

Haikui brand
-16%

22.7

11.9 114.3

+ 17%

27.0 99.3

8.3 86.2

+ 30%

+33%

133.7

19.1 75.5

+ 31%

129.4

2009

2010

2011

2009

2010

2011

Revenue by type of raw seafood (m)


Crab Prawn Fish Others
- 21% -4%

Revenue breakdown by region (%)

20.7 14.2 41.3 18.4 2009

+ 73% + 32% +48%

19.8 24.6 54.7 27.2 2010

+ 78% -34% + 108%

15.7 43.7 36.0 56.7 2011

Source: Company information

Balanced product mix and geographic diversification to counterbalance fluctuating demand 32

5/ FINANCIAL PERFORMANCE:

Balance Sheet

Balance sheet
(FYE 31 December, in T)

Comments
2009 57,330 7,997 1,841 49,333 14,918 13,648 18,287 945 57,330 50,431 3,768 3,131 630 32,250 34.1% 11,150 2010 88,449 20,258 3,056 68,191 14,951 15,317 32,916 1,806 88,449 80,282 4,206 3,961 1,486 48,553 38.5% 10,745 2011 124,916 18,003 1,067 106,913 25,587 23,892 47,572 7,493 124,916 116,272 2,283 6,361 1,535 77,422 50.9% 23,304
2009 2010 2011 20.6% 18.5% 17.8% 17.1% 36.3% 30.3% 30.6% 28.8% 26.3% 22.4% 17.9% 33.4%

No default in debtor payments in 2009-2011 Other (non-)current assets mainly consist of


advances to suppliers made in the context of supply framework agreements Quarterly revenue development
(as % of total yearly revenue; based on RMB figures)
Q1 Q2 Q3 Q4

ASSETS
Non-current assets Thereof: Other non-current assets Current assets Thereof: Cash and cash equivalents Thereof: Inventories Thereof: Trade receivables Thereof: Other current assets

EQUITY AND LIABILITIES


Equity Loans and borrowings Current liabilities Thereof: Trade payables Net working capital Net working capital as % of total revenue Net cash
Source: Company information

Solid capital structure, mainly affected by working capital requirements 33

5/ FINANCIAL PERFORMANCE:

Cash Flow and Capital Expenditure

Cash flow from operating activities 2009-2011 (in T)

Cash flow used in investing activities 2009-2011 (in T)


Acquisition of new processing factory for grilled and frozen seafood products (c. EUR 10.3m)

Source: Company information

High cash generation, capex driven by capacity expansions 34

CONTENTS

1/ 2/ 3/ 4/

INTRODUCTION MARKET AND COMPETITION CORPORATE PROFILE STRATEGY

5/
6/

FINANCIAL PERFORMANCE
OFFERING APPENDIX

35

6/ OFFERING:

Facts & Figures

Issuer Name Class of shares Total number of shares (pre-IPO) ISIN / WKN / ticker symbol Trading marketplaces Market segment Joint Lead Managers and Joint Bookrunners Coverage Selling agents Total number of shares (post-IPO) Offering Offering price Offering period International Roadshow First day of trading Lock-up Designated sponsor

Haikui Seafood AG No par value ordinary bearer shares 10,000,000 shares DE000A1JH3F9 / A1JH3F / H8K Xetra; Frankfurt Stock Exchange Regulated Market, Prime Standard (IFRS) BankM biw AG, Pareto Securities AS BankM biw AG, Pareto Securities AS Cortal Consors, DAB bank, flatex, ING-DiBa, S-Broker, ViTrade Up to 11,500,000 shares Up to 1,500,000 no par value ordinary bearer shares from a capital increase Additionally up to 225,000 shares from existing shareholders (Greenshoe option) EUR 10.00 EUR 13.00 24 April 10 May 2012 24 April 10 May 2012 15 May 2012 (expected) 12 months (hard and soft lock-up) BankM biw AG
36

6/ OFFERING:

Shareholder Structure

Shareholder Haida Holdings Pte. Ltd. Mega Bond International Limited Palm Cove International Limited Praise Ocean International Limited Everswift Holdings Limited Alan Gey Mr. She Dongpeng Free Float Total

Number of shares 5.656.588 3.542.918 300.247 300.247 180.000 20.000 0 0 10.000.000

Shares in % 56,57% 35,43% 3,00% 3,00% 1,80% 0,20% 0,00% 0,00% 100%

Shareholder Haida Holdings Pte. Ltd. Mega Bond International Ltd. Palm Cove International Ltd. Praise Ocean International Ltd. Everswift Holdings Ltd. Alan Gey Mr. She Dongpeng Free Float Total

Number of shares 5.356.588 3.335.496 282.669 300.247 180.000 20.000 300.000 1.725.000 11.500.000

Shares in % 46,58% 29,00% 2,46% 2,61% 1,57% 0,17% 2,61% 15,00% 100%

37

6/ OFFERING::

Use of Net IPO Proceeds

25% - 45%

General working capital

55% - 75%

Partial financing of new factory construction

Source: Company information

38

CONTENTS

1/ 2/ 3/ 4/

INTRODUCTION MARKET AND COMPETITION CORPORATE PROFILE STRATEGY

5/ 6/

FINANCIAL PERFORMANCE OFFERING APPENDIX

39

APPENDIX 1:

Why Listing in Germany?

1.

Fast listing process in Germany versus long lead time and high regulatory uncertainty related to a listing in China

2.

Access to long-term oriented and sophisticated European institutional investors with strong expertise and interest in emerging markets and the food sector

3.

High transparency and corporate governance requirements in Germany reinforcing high quality and safety standards as well as professionalism of Haikui

4.

Prestige and credibility of a German listing vis--vis customers, suppliers, government and banks in China due to Germanys strong reputation in China

5.

Higher public and media visibility of Chinese IPOs in Germany

Source: Company information

40

APPENDIX 1:

Corporate Group Structure

Corporate structure

Current shareholder structure (pre-IPO)

Haikui Seafood AG Hamburg/ Germany (founded in 02/2011)


100%

Mr Alan GEY (CFO): 0.2%


Everswift Holdings: 1.8%

Praise Ocean (COO): 3.0%


Palm Cove: 3.0%

China Haikui Pte Ltd. Singapore (founded in 12/2006)


100%

Mega Bond: 35.4%

Haida Holdings (CEO): 56.6%

Fujian Dongshan Haikui Aquatic Products Group Co. Ltd. Dongshan/ PRC (founded in 10/1993) Group operating company

Funds managed by Zana Capital are shareholders of Mega Bond and Everswift which hold a total share of 37.2% in Haikui Seafood AG Mega Bond as a strategic partner is invested since 2007

Source: Company information

41

APPENDIX 2: FINANCIAL STATEMENTS

Consolidated P&L 2009 2011

China Haikui Pte Ltd - Consolidated income statement


(FYE 31 December)

In T Revenue Cost of sales Gross profit Other income Distribution cost Administrative expenses Other operating expenses Profit from operations Finance (expenses) / income, net Profit before income tax Income tax Profit for the year Other comprehensive income / (expenses) of the year: Exchange differences on foreign currency translation Total comprehensive income for the year Profit for the year attributable to - owners of the parent Total comprehensive income for the year attributable to - owners of the parent
Source: Company information

Audited 2009 94,544 (72,524) 22,020 497 (778) (1,773) (44) 19,922 219 20,141 (2,126) 18,015

Audited 2010 126,219 (96,360) 29,859 617 (983) (1,696) (41) 27,756 (1,342) 26,414 (3,057) 23,357

Audited 2011 152,116 (114,203) 37,913 285 (1,596) (2,582) (48) 33,972 (1,613) 32,359 (4,026) 28,333

(1,486) 16,529

6,494 29,851

7,658 35,991

18,015 16,529

23,357 29,851

28,333 35,991

42

APPENDIX 2: FINANCIAL STATEMENTS

Consolidated B/S 2009 2011


China Haikui Pte Ltd - Consolidated balance sheet (FYE 31 December) In T Assets Non-current assets Intangible assets Property, plant and equipment Deferred tax asset Other non-current assets Total non-current assets Audited 2009 Audited 2010 Audited 2011 Equity and liabilities Equity Share capital Statutory reserves Capital reserve Other reserves Currency translation reserve Retained earnings Total equity Non-current liabilities Financial liabilities Current assets Inventories Trade and other receivables Cash and cash equivalents Other current assets Total current assets Current liabilities Income tax liabilities Financial liabilities Trade payables Other current liabilities Total current liabilities Total liabilities Total assets
Source: Company information

Audited 2009

Audited 2010

Audited 2011

798 5,358 1,841 7,997

2,208 14,755 239 3,056 20,258

2,298 14,371 267 1,067 18,003

7,870 5,830 388 2,835 1,106 32,402 50,431

7,870 5,830 388 2,835 7,600 55,759 80,282

7,870 5,830 388 2,835 15,258 84,091 116,272

3,768

4,206

2,283

13,648 19,822 14,918 945 49,333

15,317 36,117 14,951 1,806 68,191

23,892 49,941 25,587 7,493 106,913

817 328 630 1,356 3,131 6,899 57,330

1,141 283 1,486 1,051 3,961 8,167 88,449

1,508 2,183 1,535 1,135 6,361 8,644 124,916

57,330

88,449

124,916

Total equity and liabilities

43

APPENDIX 2: FINANCIAL STATEMENTS

Consolidated CFS 2009 2011

China Haikui Pte Ltd - Consolidated cash flow statem ent (FYE 31 December) In T Operating activities Profit before income tax Adjustm ents for non-cash expenses / (incom e) Amortisation of intangible assets Depreciation of property, plant and equipment Interest expense Interest income Other non-cash expenses / (income) Changes in w orking capital Inventories Trade and other receivables Other current assets Trade payables Other current liabilities Income taxes paid Cash flow s from operating activities Audited 2009 20,141 20 536 60 (52) (172) (3,823) (9,106) 136 650 176 (1,285) 7,281 Audited 2010 26,414 28 665 103 (74) 376 (41) (13,590) (591) 762 336 (2,838) 11,550 Audited 2011 32,359 38 1,413 14 (95) 464 (7,021) (10,697) (2,215) (36) 28 (3,765) 10,487 Investing activities Cash outflow s for other non-current assets Acquisition of assets under IFRS 3 Cash outflow s for property, plant and equipment Interest income received Cash outflow s from investing activities Financing activities Cash outflow s for bank loans and other borrow ings Dividend paid Interest paid Other cash proceeds / (outflow s) Cash outflow s from financing activities Audited 2009 (1,898) (138) 52 (1,984) Audited 2010 (929) (10,305) (445) 74 (11,605) Audited 2011 (1,111) (258) 95 (1,274)

(299) (1,687) (52) (3) (2,041)

(656) (926) (103) (1,685)

(267) (14) (281)

Net increase/(decrease) in cash & cash equivalents Cash & cash equivalents at the beginning of the year Effects from currency translation Cash & cash equivalents at the end of the year

3,256 11,937 (275) 14,918

(1,740) 14,918 1,773 14,951

10,636 14,951 1,704 25,587

Source: Company information

44

APPENDIX 3: INTERNAL QUALITY CONTROL SYSTEM

Quality Control Measures

Internal quality control system Strict quality control procedures to safeguard high quality of end products and compliance with relevant standards

Measures The employees in the quality control procedures have a profound expert knowledge - Withdrawal from and analysis of water samples in the aquaculture farms

Incoming

- Provender sample in the aquaculture farms - Visual controls - Odour controls - Radioactivity controls

In-process

- Measurement of temperature - Laboratory test particularly with regard to heavy metals (eg: lead and mercury) - Hygiene controls of the employees and the production lines

- Flavour controls
Final - Packaging controls

Source: Company information

Stringent control procedures to comply with high international quality standards 45

Thank you