A giant step in whitefish

Brussels April 2017

Knut Hallvard Lerøy

Lerøy Seafood AS

What will change in the market when Lerøy

now is big on salmon and whitefish?

“It's an extremely lean fish with very little fats and great source of protein”

Havfisk and Norway Seafoods

4

Havfisk

• Norway’s largest trawler company

– 11% of the Norwegian white fish quota

• Fleet of 9 active vessels (and 1 ordered for delivery in

January 2018)– A highly modern fleet (considerable investments in recent

years)

– All fish are headed and gutted on board

• Total 2016 catch 63,764 MT head off gutted weight– 29,945 MT of cod, 11,508 MT of haddock and 9,409 MT of

saithe

• Owns 5 processing plants linked to trawler licenses,

operated by Norway Seafoods

Lerøy Norway Seafoods

• Lerøy Norway Seafoods is one of Europe’s leading

companies for processing of wild caught whitefish

• Norway’s largest sourcing network for whitefish– 10 own sourcing stations, 3 sourcing stations in partnership, co-

operation with several additional sourcing stations

– 8 primary processing facilities and 1 value added factory

Norway Seafoods AS - processing, sales and market

Havfisk’ / Norway Seafoods’ core activities

Havfisk ASA - harvesting

• 10 trawlers in Norway

catching cod, saithe,

haddock, prawns, black

halibut and redfish.

• Quota 2016: 55 000 tons of

whitefish including redfish,

shrimps and by-catch

• Number one processor of

fresh and frozen cod and

haddock in Norway

• 20% of raw material from the

Havfisk trawler fleet

• Sales to leading processors

and retail chains in Europe,

North America and Asia

© EFF: Kjell Ove Storvik © EFF: Tom Haga

• Eight primary processing

sites - seven in Norway

and one in Denmark

• Three secondary

processing sites - one in

Norway and two in

Denmark

Havfisk and Norway Seafoods – the value chain

“From Ocean to table”

NWS/MHJ25.04.2017

Norway Seafoods in brief

Rypefjord

ForsølBerlevåg

Kjøllefjord

Klepstad

Melbu

Stamsund

Sørvær

Nesseby

Skarsvåg

Tromvika

Skårvågen

Båtsfjord

Vardø

Norway Seafoods Norway Norway Seafoods Denmark

• 45 000 tons of whole fish from 600 vessels

• 18 000 tons of filet products

• 580 employees

• 1,3 BNOK in revenues

• 15 000 tons of whole fish

• 8 000 tons of filet products

• 190 employees

• 0,6 BNOK in revenues

Grenå

Hvide

Sande

25.04.2017 NWS/MHJ

Norwegian whitefish - largest challenges

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High Salary Costs

vs

Global competition

Demanding Political

Framework

Lack of

Technological

Development in

Processing

Strong Seasonal

Profile for Fresh Raw

Material

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«We have a mission with COD»

10

Lerøy Seafood Group ASA

Farming

Catching

VAPSales &

Distribution

Integrated value chain white fish• Fully integrated value chain for withe fish

• 1000 employees

• 19% of Norwegian white fish – huge capacity in value added products

• Full traceability

• Focus in best practice through the value chain

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Fresh cod is seasonal

13

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“Lerøy 2016” “Lerøy 2017”

Whole salmon

Processed salmon

Trout

White Fish

Others

Whole salmon

Processed salmon

Trout

White fish

Others

Develop

• new products

• brands

• category

development

• Strong relations

with Coastal

Fleet

• Partnership with

Havfisk

• Improve raw material quality

New technologyPartnershipIntegrated Value

Chain

• Reduce manual

labour/work in

production

• Increase product

value

• Improve product

quality

15

Strategy

New Technology

Integrated value chain for seafood

18

• Fully integrated value chain for production of salmon, whitefish and trout

• Full traceability

• Focus on best practice and investment through the whole value chain

• 3500 employees

Leveraging the strong LSG distribution network

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Fish-cuts/fresh distribution facilities

Processing facilities

• Global reach and sales to more than 70 countries

• A significant industrial activity within trading, processing, sales and distribution of fish (including white species)

• Investments in “fish cuts” in end markets recent years

• Strong European distribution, the most important market for white fish

• Seeing high demand for white fish products throughout the network

Lerøy Sjømathuset – fresh distribution

center• Full range production of fresh seafood

• Norways largest producer of sushi

• Leading the innovation of fresh

seafood

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Partnership

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22

-

500

1 000

1 500

2 000

2 500

2010 2011 2012 2013 2014 2015

Norway Natural fresh prepacked cod volume (MT prod. weight)

• Fresh and refreshed MAP packets give more efficient

value chain, significant improvement in availability as

well as more convenient products – Driving demand and willingness to pay for both salmon and

cod (see data beneath)

• Example from low cost retailer in Norway, which some

years ago did not have fresh fish (see picture)– In many other European markets, this trend is well advanced

for salmon, but barely started for cod/white fish

• European retailers see this trend and will to an

increasing extent prefer suppliers who can supply a

full palette of seafood products

– Being fully integrated in both salmon and white fish, Lerøy is ideally positioned to become the “full fledged” preferred seafood supplier

Example from low cost retailer in Norway

Source: Norwegian Seafood Council

Revolution in fresh/refreshed fish distributionWell advanced in salmon, just started for white fish

Salmon Trout Cod Saithe SushiOther

seafood

Combined seafood counter

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More seafood into the ready-to-eat category

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Innovating the seafood category

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Innovating the seafood category

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Poke - launched in Norway 2017

w w w . l e r o y s e a f o o d . c o m