Capital Markets Day
Compan pany y Presentation entation Why are we here today? MOWI Global brand strategy – propose new company • name MOWI Integrated value chain important for the success • of the brand Increased value creation for consumers and our • share holders Increased focus on quality and differentiation • The future of salmon, MOWI • Page 2
Brand nd opport ortunity unity Branding Objectives € 35m Brand investment in next 2 years € 1bn in branded turnover by 2025 € 100m additional EBIT (cash break even by 2022) Page 3
Compan pany y Presentation entation The MOWI value chain Breed Feed Smolt At sea New product development Harvesting Processing Food Page 4
Compan pany y Presentation entation MOWI breeding network MOWI BREEDING MOWI BREEDING NORWAY CANADA EAST MOWI BREEDING UK MOWI BREEDING CANADA WEST MOWI BREEDING CHILE Page 5
Compan pany y Presentation entation MOWI - clear benefits to control breeding Mowi fish can be selected from a large population – capacity 450 mill eggs • Mowi fish can through careful selection become very special • Quality traits has high heritability • Our own breed and feed makes a difference on the end product. • Page 6
Compan pany y Presentation entation Animal Breeding - Heritability h 2 = 1 means everything is explained by genetics Heritability (h 2 ) h 2 = 0 means everything is explained by environment Genotype Environment Phenotype Page 7
Compan pany y Presentation entation The good news for MOWI Good news: Quality traits higly heritable COLOUR GROWTH H 2 = 0.35 H 2 = 0.47 Good news: Breeding can permanently impact the quality of the salmon Page 8
Compan pany y Presentation entation MOWI feed MOWI FEED NORWAY MOWI FEED UK Page 9
Compan pany y Presentation entation MOWI feed “MOWI recipe” • High in Omega 3 • Specific mix of • vitamins and natural color Proactive food safety • programs, such as marine oil cleaning Page 10
Compan pany y Presentation entation MOWI farming network Norway Canada East Faroe Island Scotland Ireland Canada West Chile Page 11
MOWI fish will be raised in selected MOWI farms
Our farmers are out there every day caring for the fish you eat
Compan pany y Presentation entation MOWI VAP processing, sales & marketing network Scandinavia, Sales Poland, Sales South Korea, UK & Ireland, & processing Japan, Sales & Sales & Sales & processing processing processing DACH & CEE, Sales & processing Spain, Sales & Canada, processing China & Taiwan, Sales &processing Sales & Vietnam, processing BeNeFra, Sales processing USA, Sales & & processing processing Chile, sales & South East Asia, Sales processing Page 14
Compan pany y Presentation entation MOWI – Processing and sales Efficient processing facilities in 24 countries, close • to the consumer High level on food safety and traceability, all • certified. Competent teams dedicated to product • development in all markets Through advanced grading and specific quality • criteria we can select the best MOWI fish for you. Highly competent marketing/sales organization • with global outreach Specialized our branding capability • Page 15
Compan pany y Presentation entation Key drivers in MOWI products Taste Convenience Health Page 17
Compan pany y Presentation entation MOWI Summary We have built inhouse Increased value creation for • • branding competence, and consumers and our share will in 2019 launch the MOWI holders concept that is the salmon for Company name the same as • the future the brand The MOWI story and content is • Long term projects with clear • impossible to copy targets, 2025 > EUR 1 BN of We can through our people • sales as branded, > EUR 100 m and our unique value chain, EBIT above normal salmon offer the consumer a salmon experience no one can Increased focus on quality • match! The value chain responsible for • the success of the brand Page 18
Thanks
The category opportunity
Categor egory Opportunity unity Our commercial strategy What ? • achieve a price/margin - above our competitors in the market How? • Strategic partnership - with key clients based on MHG unique capabilities Brands - Page 2
Categor egory Opportunity unity Our global VAP processing, sales & marketing network Scandinavia, Sales Poland, Sales South Korea, Japan, Sales & & processing UK & Ireland, Sales & processing Sales & processing processing DACH & CEE, Sales & processing Canada, Spain, Sales & China & Taiwan, Sales processing Sales & processing BeNeFra, Sales Vietnam, USA, Sales & & processing processing processing South East Asia, Chile, sales & Sales processing Page 3
Categor egory Opportunity unity Marine Harvest Sales & Marketing: top line growth and improved margins Turnover EUR millions) 4000 160 3500 140 3000 120 2500 100 2000 80 1500 60 1000 40 500 20 0 0 2011 2012 2013 2014 2015 2016 2017 Net fob sales Op EBIT Page 4
Categor egory Opportunity unity Branding will turn our integrated value chain into shareholders value Value added capabilities Branded salmon helps MH Future protect margins in cases of lower consumer demand or Profitably increase in excess supply situations value-adding with branded salmon in retail Develop PL and Companies with strong feed capabilities consumer brands are typically valued at higher Develop farming and multiples bulk salmon capabilities Branded salmon will enable MH to build shareholder returns in the long run Management quotes Time Page 5
Categor egory Opportunity unity Key consumer trends supporting the MOWI brand Consumer trends in food • Health - Transparency - Sustainability - Authentic taste experience - Page 6
MOWI Branding Strategy
Categor egory Opportunity unity MOWI Branding Strategy Creating unique salmon • products with superior Health benefits - Transparency - Food enjoyment - Page 8
Categor egory Opportunity unity MOWI Branding Strategy Based on our unique value chain • Page 9
Categor egory Opportunity unity MOWI Branding Strategy And delivering the message in • an engaging and relevant way Going from re-active to - pro-active communication Page 10
Categor egory Opportunity unity Branding Objectives € 35m Brand investment in next 2 years € 1bn in branded turnover by 2025 € 100m additional EBIT (cash break even by 2022) Page 11
Categor egory Opportunity unity MOWI Expansion plan 2019: Launch in Europe As from 2020: Continued roll-out in Europe, North America & Asia Page 12
Thanks
Value creation with a global brand MH Capital Markets Day Edinburgh, 13 th November 2018
There is nothing more powerful than an idea whose time has come Victor Hugo – French writer 1802 -1885
MOWI WI – The The Brand nd Project ject So, what do we have today? A beautiful thriving business • With powerful competitive advantages • Leading edge compliance and working within the natural environment • 3
MOWI WI – The The Brand nd Project ject We want to continue growing…faster than the food industry and our competitors. ..fueled by CONSUMER INSIGHTS 4
Consume umer trend nds Food consumption habits are changing 2 times/week 36% 32% of consumers want to of consumers want to Recommended fish intake reduce their meat increase their fish by international Health consumption consumption Authorities Source: 2018 Seafood Report Kantar TNS / Kantar Worldpanel Page 5
Consume umer trend nds Demand for high quality opens up value opportunities • 62% choose high quality products more frequently • 60% are willing to pay more for a high quality product • 91% want more transparency on food products • 91% are sensitive to animal welfare • 72% think we should only consume fish products that are harvested in a sustainable manner Marine Stewardship Council (2016): 16,876 consumers who purchased fish or seafood in the last two months Source : Kantar TNS FOOD 360° 2018 Page 6
Brand nd opport ortunity unity Introducing …a global brand launch Page 7
MOWI WI – The The Brand nd Project ject Why a global brand? Builds competitive advantages • Generates people´s loyalty • Yields higher margins • Drives Category growth • Protects category reputation • … engaging the targets through COMMUNICATION and CREATIVITY
Building Brand Love CREATES VALUE
And means VALUE Higher price and margin
So, how to achieve these objectives with MOWI? Leveraging Consumer Insights, Communication & Creativity
MOWI WI – The The Brand nd Project ject A winning credible idea With a superior product and competitive edge And a superb and consistent brand appearance That tells our story in a credible way Building occasions to expand the category Through a cutting-edge in-store presence And an ambitious expansion plan
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