www.biomar.com

Driving the Development in the Aquaculture

Sector Innovation & Future Growth

IntraFish SeaFood Investor Forum, New York 23. of May

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• Short overview BioMar

• Future of Aquaculture and feed

role

• Feed evolution and future – The

raw material challenge

• Value Chain collaborations – The

opportunity

• Conclusions

On the Menu

BioMar at-a-glance

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Turnover

EUR ~1.3bn

Only high

performance

aqua feed

EBIT

EUR ~75m

Feeds 1 out of 5

farmed fish in

Europe/Chile

Sales volume

~1.2m tons

Feed for +45

different species

+ shrimp

Employees

~1,400

Owned since 2006

by Danish industrial

conglomerate

Schouw & Co.

Schouw & Co. is

listed on Nasdaq

Copenhagen

(ticker SCHO.CO)

Only way to obtain

exposure to fish

feed is through

investment in

Schouw & Co.

Sale to more than

80 countries

16 production facilities - 1.7 mtons fish feed – Truly Global

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2x

3x

Production sites

Chile

Costa Rica

Norway

Denmark

Turkey

Greece

Spain

France

Scotland

China (+ 1 under construction)

16 sites ~1.7 mtons

capacity 4

Australia (under construction) Ecuador

The Future of Aquaculture

The global fish feed industry is expected to grow ~4.5% – driven by larger populations, sustainability concern and health aspiration

AQUACULTURE INDUSTRY

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Global fish feed industry (mtons)

2016 2017 2018 2019 2020

20.6

21.6

22.5

23.5

24.4 CAGR

~4.5%

DRIVERS

Population growth

Sustainability concern

Health aspiration

Slower growth of over the last 10 years

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Why?

Environmental restrictions

Access to water - more than 70 % is in fresh water

Access to quality of water

Limits on discharge (eutrophication)

Sites in Central Europe, China (Political will) Conflicts

with other interests.

Disease limitations

Lice in Norway, Ricketsia in Chile,

White spot in Asia EMS in Shrimp

Immense number of virus and bacterial diseases in Asia

Our Core – Constant innovation

Improved product performance

Optimal health condition for the

fish

Capability to include new raw

materials in recipes

Recipe optimization

Improved production

technologies and processes

Development of feed for new

species in aquaculture

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R&D an important tool for success in product and concept development to

tackle challenges for growth

Future Growth in Aquaculture Technology

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Real off-shore Recirculation

How can feed manufacturers contribute?

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Nutritional optimal balanced diets not only for fish

but also for environment and systems. Digestibility; Amino acid selection => optimal

growth => minimal impact on environment

Optimal Phosphorous

Physical optimal diets for off shore systems

RAS diets fecal texture

Environmental footprint raw materials

Selection of sustainable managed raw materials

IFFO RS; MSC RTRS, algae based w 3,

Single cell protein, etc

Total environmental footprint of raw material

and production

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The Future of Feed

It all starts with the feed! But, what is fish feed? What could we expect for the future ??

Salmon Feed Development

0

1

2

3

4

5

6

7

8

9

10

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1990 1995 2000 2005 2010 2015 2020 2025

FCR

an

d F

IFO

Ingr

edie

nt

incl

usi

on

leve

l

Single cell rawmaterials

Micro ingredients

Plant oil

Plant dry matter

PAPs

Fish oil

Krill meal

1st Revolution:

Plant proteins

AA optimization

FIFO

2nd Revolution:

Plant oils

Ω3 balance

FIFO

Overall Feed Suppliers BioMar BioMar future?

3rd Revolution:

Single cell

Ess. nutrients

FIFO = 0

By-product RMs

FIFO (FFDR)

FCR 1980s ~ 1.9

FCR 1990 ~ 1.4

FCR 2017 ~ 1.15

FCR 2022 ~ 1.05

Restoring marine omega-3s responsibly

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Ordinary pathway

Alternative pathway

Microalgae Schizochytrium sp.

Aquaculture

Fish oil Fishing vessel Fish Zooplankton

Sugarcane fermentation Natural algal

oil & meal

Sustainable Solution Steering®

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Triple S

Value Chain Collaboration

Aquaculture value chain

Feed a key position in the value chain VALUE CHAIN COLLABORATIONS

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Raw material Feed production Transportation Farming & harvesting Processing Retailers

BIOMAR’S PLACE

BIOMAR’S RESPONSIBILITY

Transforming sustainable raw materials of marine-

or land-based origin into high quality fresh or

processed fish products for consumers worldwide

BioSustain

Evolution in product development within Salmon

• Product Development

SPECIAL. PROD. Salmon fillet

Portion size

Skin- & boneless

BULK Whole salmon

Headless

Etc.

SEMI-FINISHED Whole side

Half side

Chop

SPECIAL. PROD. Processing

Organic (certified

feedstuff)

SPECIAL. PROD. Biology

Nutrition (specialized

feed)

INCREASE IN TRACEABILITY AND TRANSPARENCY REQUIREMENTS

General MARKETING / DIFFERENTIATION / BRANDING Specialized

Spot market / Retail REQUIREMENTS / OWNERSHIP OF END-PRODUCT In-house

BioSustain

Connecting Value Chain Insights

CONSUMER VALUE &

SATISFACTION FEED

PRODUCTION

FISH

PRODUCTION

Documentation: Analytics & Reporting tools > Traceability & Transparency

Rewards & Recognition

• Overfishing concerns

• Food safety/quality issues

• Deforestation issues

• Climate change concerns

• Artificial vs. natural

• Lack of fresh water

• GMO concerns

• Chemotherapeutics concerns

• Traceability and transparency

• High omega-3

• FIFO < 1

• Lower on

contaminants

• High quality &

nutritional value

• Non-GMO

• Certifications

• Fish welfare

• Flesh quality

• Farming &

processing

excellence

• Location

• Certified RMs

• Trimmings & bi-

product RMs

• Cleaning fish oil

• Palatability

• Performance &

Retention Technology

• Fish meal

• Fish oil

• Microalgae

• Krill

• SPC

• Palm oil

• PAPs

• Pigments

• Insects

PRODUCT

CLAIMS

HOT

TOPICS

Technology push

Market pull B

A

Raw materials Compounding Converting Brands Retail

Some examples around the Salmon World

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”In the Blue” is a custom-made

innovative feed concept using

microalgae

Restoring Marine omega-3s responsibly

& reduces environmental contaminants

in the Aquaculture Industry

FIFO ratio below 1 to 1

Rated Good Alternative by Monterey

Bay Aquarium Seafood watch program.

Silverside produced by Ventisqueros

with sales and distribution by

BluGlacier USA

Stable, year round supply extending the

wild Coho season

Great colour 28-30

FFDR 0.5

FIFO 0.5

Lochmuir specification developed in

2004, first supply in 2006

Differentiated offering is supporting

M&S point of difference

Sold in excess of 100.000 T Salmon

since launch

Feed regime designed for processor

and consumer eating experience

Independently verified Sustainable Feed

Raw Materials constantly evolving

Conclusions Fish Feed going forward

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Be ready for RAS and Off-shore and

requirements on feed

Feed an important factor to achieve

growth potential in aquaculture

Sustainable raw material base and

transparency a must – Part of the story

Implement best practice globally,

especially in non salmon world

THANKS FOR ATTENTION !!!

Let’s Innovate

Aquaculture

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