Full year results 2013 and strategy update Amsterdam, 6 February - - PowerPoint PPT Presentation

Full year results 2013 and strategy update

Amsterdam, 6 February 2014

Disclaimer

• The information contained herein shall not constitute or form any part of any offer or invitation to

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• The information contained herein is not for publication or distribution into the United States, Australia,

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• The material set forth herein is for informational purposes only and is not intended, and should not be

construed, as an offer of securities for sale into the United States or any other jurisdiction. Securities may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or an exemption from registration. The securities of the company described herein have not been and will not be so registered. There will be no public offer of securities in the United States, Australia, Canada or Japan.

Version 5 February 2014

2

Agenda

3

• 1. Highlights
• 2. Driving sustainable growth strategy
• 3. Full year 2013 financial results
• 4. Strategic agenda 2014

Solid financial results in challenging markets - highlights

4

Revenue €3,867.1 million

• Revenues increased by 1.2%
• Volumes declined by 1.1%

Discontinued operations

• Compound feed and meat businesses

in Spain and Portugal classified as discontinued operations – entirely in line with strategy Full year EBITA €215.7 million

• Total EBITA incl. discontinued
• perations €256 million
• Animal Nutrition EBITA margin 6.1%
• Fish Feed EBITA margin 6.4%

Basic earnings per share continuing

• perations €1.85
• Decreased by 3.1%

Focus on growth

• Company now fully focused on

premix, feed specialties and fish feed

• Acquisitions in Ecuador and Egypt
• Nutreco global top 3 shrimp feed

Dividend proposal €1.00

• Final dividend €0.70
• Payout ratio 45%

Sustainability progress made in 2013

5

Top 300 suppliers

• Sustainable vendor policy signed off

by top 300 suppliers (76% of annual ingredients spend) AgriVision

• >350 delegates attended AgriVision

2013

• Prof. Michael Porter reinforced shared

value concept Total vendor policies

• 550 suppliers signed vendor policies
• 59 specific vendors supplying soy,

palm and marine ingredients KPIs in planning & control cycle

• Integration of sustainability reporting,

including KPIs, in regular planning & control cycle NutrECO-line

• Assessment of sustainable nutritional

solutions programme’s methodology and process externally verified African Agribusiness Academy

• Assisted in the establishment of the

African Agribusiness Academy

Agenda

6

• 1. Highlights
• 2. Driving sustainable growth strategy
• 3. Full year 2013 financial results
• 4. Strategic agenda 2014

DOUBLING FOOD PRODUCTION HALVING THE PRESSURE ON THE PLANET FEEDING 9 BILLION PEOPLE IN 2050

7

Living our values

8

• Innovation as core value will help us to fulfil our mission
• f Feeding the Future
• Focus of Nutreco’s people agenda on culture and

capabilities

• By defining our values we help focus our strategy on the

strengths of our people

“As our innovation creates high value products and solutions, we are now developing global capabilities to better take these to the market.” Nalin Miglani, Chief HR & Corporate Development Officer

Innovation

9

• Viggo Halseth new Chief Innovation Officer, 30 year’s experience in Nutreco
• Responsible for:

− driving the innovation agenda − building strategic partnerships − improving strategic marketing

• More systematic approach and increased strategic execution

“Finding new ways to enable fish and animal protein producers to increase efficiency, performance and make the most of their resources is key to meeting the growing demand for animal protein and seafood.” Viggo Halseth, Chief Innovation Officer

Intended divestment of compound feed and meat businesses

10

• July 2013 - announcement strategic study

− Rationale: increase focus on animal nutrition, fish feed and growth geographies − Activities fall outside Nutreco’s strategic focus

• Businesses are clear market leaders and ready to continue their growth
• Strong results in 2013 due to market leadership positions and operational excellence
• February 2014 - intention to divest announced

− After careful consideration, a divestment provides best opportunity for all stakeholders − Nutreco will fully consider the interests of all stakeholders involved, including a valuation that recognises the market position and future potential of these businesses

New guidance

11

• Financial guidance of EBITA € 400 million in 2016 amended due to:

− Intended divestment − Fewer large value-creative acquisitions than foreseen − Market developments in Norway

• Updated financial guidance

− EBITA operating margin to increase in the range of 5.5-6.5% − EBITA operating margin Animal Nutrition 6-7% − EBITA operating margin Fish Feed 6-7% − Average organic volume growth Animal Nutrition 3% − Average organic volume growth Fish Feed 5%

• Existing value-creative acquisition strategy maintained

Global Salmon & Fish Feed Southern Europe Steven Rafferty

Regional scope Global scope Global leverage

Chief Executive Officer

Knut Nesse

Chief Financial Officer

Gosse Boon

Executive Board

Spain and Portugal compound feed & meat activities

Fish Feed Animal Nutrition

Americas

Hugues LeRuz

Asia

To be announced

EMEA

Harm de Wildt

Chief Innovation Officer

Viggo Halseth

Chief HR &

• Corp. Dev. Officer

Nalin Miglani

Feed Additives

Martijn Adorf

New organisational structure

Executive Committee

12

Higher value-added portfolio of nutritional solutions Premix, feed specialties and fish feed Growth geographies Latin America, Russia, Asia & Africa Sustainability

13

Driving sustainable growth

13

Nutreco’s two segments

• Revenue in 2013 of €3.9 billion
• Over 70 production plants in 30 countries
• Multinational workforce of approximately 7,500 employees

Revenue EBITA* Fish Feed Animal Nutrition €1.8 billion €112 million €2.0 billion €131 million

* Before exceptional items from continuing operations and excluding corporate costs

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€ 3.9 billion revenue 7,500 employees >70 production locations Sales in more than 80 countries 10 R&D units in 7 countries

Nutreco’s presence

Global brands:

15

The essential link

Struggling supplies Surging demand Raw material markets Animal nutrition & fish feed producers Farmers

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Animal Nutrition: ‘Driving sustainable growth’

35% of EBITA from growth geographies EBITA operating margin 6-7% Link between R&D and customer needs Improve the commercialisation

• f our value

proposition Growth geographies, secure mature markets Higher value-added portfolio of nutritional solutions

Focus Solid positions ASCs Go-to- market EBITA EBITA margin

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• Young animal feed
• Young animal vitality and

later life performance

• Supporting intestinal

health

• Nutritional solutions for

transition periods

• Feed additives for

production efficiency

• Reducing emissions

LIFE START HEALTH & WELFARE FEED EFFICIENCY

• Services & models for

quantitative nutrition

• Optimised feed value and

predictable performance

PRECISION FEEDING

Key focus areas for innovation - Animal Nutrition

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Nutreco’s Animal Nutrition value proposition

YOUR LOGO

• Swine
• Poultry
• Ruminant
• Quality assurance
• Ingredient optimisation
• Premix
• Feed specialties
• Feed additives
• Preventive animal

health products

• Young animal feeds

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A global portfolio of branded specialty products

Feed additives Preventive animal health products Young animal feeds

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Clear product group portfolio with strong brands

Selko Feed Additives – added value

Food safety Preventive animal health Economic value

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Fish Feed: ‘Driving sustainable growth’

Grow salmonid feed volume in line with the market (5% CAGR) EBITA operating margin 6-7% Roll-out MicroBalance to

• ther species

Grow non-salmonid feed volume share to 50% 5% volume growth

Volume growth R&D Non- salmonid

Maintain leadership

EBITA margin

22

Skretting – the global brand for fish feed

Feed-to-food safety Innovation and R&D Focus on sustainability

23

Unique knowledge – Skretting’s passion for fish

Nutrition Process technology

Our competence in research and application in daily feed production gives us a competitive advantage

Raw materials

Goals Fish health Fish performance Feed quality Food safety Sustainability

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Skin Gills Gut The immune system Cell regeneration Anti-oxidative Virus Parasites Bacteria

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Optiline Premium

Introduction of Optiline Premium across more countries and additional species Added metabolic activators which increase digestible energy and digestible protein levels Benefits of Optiline Premium:

• Higher fillet yields
• More omega-3
• Increased growth
• Improved feed conversion ratios

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More than salmon: over 60 species

Atlantic salmon Largemouth bass Tambaqui European sea bass Snakehead Trout Giant tiger shrimp Yellowtail kingfish Pangasius Red sea bream Japanese amberjack North Atlantic tuna Turbot Vannamei shrimp Barramundi Tilapia

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Salmonid Sum geography Annual growth volume** Europe Estimated volume (million metric tonnes) America Asia*** Africa Sum species Turnover Shrimp White fish 5% 5% >5% >5% 1.9 2.8 0.9 1.4 0.7 2.7 0.6 0.1 2.4 11.9 9.4 2.1 2.1 3.4 3.1 19.5 13.0 € 3.8 B € 3.2 B € 13.3 B € 6.3 B

World fish and shrimp feed market 2013*

Note: * Defined in addressable market turnover, (€ billions) and volumes (million metric tonnes) ex. carp. Fresh water trout are included in white fish ** Annual long-term growth rate *** Australia has been included in Asia 28

Growth of salmonid feed supply in Norway

500 1,000 1,500 2,000 2,500

kTonnes CAGR 1996-2013 = 7.8% CAGR 2014-2020 = 5% est. ~100kTonnes/year

R f c su

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World’s largest and most modern fish feed factory - Averøy

Nutreco’s largest ever capex project Additional capacity of 190,000 MT Total investment of € 74 million Upgrade fully completed in 2013 Total capacity now 430,000 MT

30

Guayaquil

Acquisitions in Ecuador and Egypt

Acquisitions of leading shrimp and tilapia feed companies

• Gisis has a leading position in shrimp and tilapia feed in Ecuador and positions in Peru,

Honduras and Venezuela (consolidated 1 June 2013)

• The acquisition of Gisis has moved Nutreco into global top three shrimp feed producer
• Hendrix Misr is the market leader in extruded tilapia feed in Egypt and leading in

poultry feed concentrates (consolidated 1 May 2013)

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Belbeis

Milestone step in execution of strategy

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Intended divestment of compound feed and meat in Spain and Portugal

• Businesses no longer part of strategic

focus

• Will consider interests of all

stakeholders Strengthening organisational focus

• New organisational structure to address

innovation and market needs

• Increased execution power

Fully committed to ‘Driving sustainable growth’ strategy

• Strategic fundamentals continue to be

valid and strong

• Moving closer to core businesses

Growth agenda

• Growth ambitions in Latin America,

Russia, Asia and Africa

• Existing value-creative acquisition

strategy maintained

Financial guidance adapted to intended divestment and market reality

• Major driver intended divestment
• Fewer large value-creative acquisitions
• Market developments in Norway

Key financial targets

• Nutreco operating margin 5.5-6.5%
• Animal Nutrition margin 6-7%
• Fish Feed margin 6-7%

Agenda

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• 1. Highlights
• 2. Driving sustainable growth strategy
• 3. Full year 2013 financial results
• 4. Strategic agenda 2014

Revenue development full year 2013

2012 2013 Organic growth +3.0% Acquisitions +2.3% Volume

• 1.1%

3,821.5 3,867.1 Price +4.1% Currency

• 4.2%

(€ x million) 2013 2012 % Animal Nutrition 1,837.3 1,921.4

• 4.4

Fish Feed 2,029.8 1,900.1 +6.8 Total revenue 3,867.1 3,821.5 +1.2

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Nutreco

€ million 2013 2012 Delta % Revenue 3,867.1 3,821.5 +1.2 EBITDA 251.1 253.7

• 1.1

EBITA 215.7 225.4

• 4.3

EBITA/Revenue 5.6%

5.9%

• Avg. capital employed

1,207.9 1,027.7 +17.5 ROACE (EBITA/ACE) 17.9% 21.9% Volume effect Price effect Acquisitions FX effect

• 1.1%

+4.1% +2.3%

• 4.2%

Operational highlights

• EBITA decrease due to € 11.4 million lower result in Fish Feed
• EBITA from total business € 256 million (including discontinued business)

in line with Q3 outlook

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Animal Nutrition

€ million 2013 2012 Delta % Revenue 1,837.3 1,921.4

• 4.4

EBITDA 127.5 128.4

• 0.7

EBITA 111.6 112.4

• 0.7

EBITA/Revenue 6.1% 5.8%

• Avg. capital employed

643.2 621.2 +3.5 ROACE (EBITA/ACE) 17.4% 18.1% Volume effect Price effect Acquisitions FX effect

• 0.8%
• 0.1%

+0.1%

• 3.6%

Operational highlights

• EBITA in line with last year with higher results in Europe and China offset

by lower results in certain markets such as Canada

• Operating margin increase due to better product mix

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Fish Feed

€ million 2013 2012 Delta % Revenue 2,029.8 1,900.1 +6.8 EBITDA 155.6 165.2

• 5.8

EBITA 130.6 142.0

• 8.0

EBITA/Revenue 6.4% 7.5%

• Avg. capital employed

495.7 410.6 +20.7 ROACE (EBITA/ACE) 26.3% 34.6% Volume effect Price effect Acquisitions FX effect

• 1.4%

+8.4% +4.6%

• 4.8%

Operational highlights

• EBITA decline of 8% mostly due to market competition in Norway, lower

results in China and an adverse FX impact

• Volume share of fish feed for non-salmonid species increased to 38%

compared with 34% in 2012

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Operating result (EBITA)

€ million 2013 2012 Delta abs. Delta % Animal Nutrition 111.6 112.4

• 0.8
• 0.7

Fish Feed 130.6 142.0

• 11.4
• 8.0

Corporate

• 26.5
• 29.0

2.4 EBITA from continuing operations before exceptional items 215.7 225.4

• 9.7
• 4.3

EBITA before exceptional items from discontinued operations 40.7 39.1 1.6 EBITA before exceptional items from total business 256.3 264.4

• 8.1

EBITA from continuing operations before exceptional items 215.7 225.4

• 9.7
• 4.3

Restructuring (net of provision release) Acquisition-related costs Other

• 4.7
• 1.2
• 0.9
• 8.0
• 1.9
• 2.3

3.3 0.7 1.4 Total exceptional items

• 6.8
• 12.2

5.4 EBITA from continuing operations 208.9 213.2

• 4.3
• 2.0

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€ million 2013 2012 Delta abs. Delta % EBITDA 251.1 253.7

• 2.6
• 1.0

Depreciation 42.2 40.5 1.7 +4.2 EBITA 208.9 213.2

• 4.3
• 2.0

Amortisation 13.9 14.2

• 0.3
• 2.1

EBIT from continuing operations 195.0 199.0

• 4.0
• 2.0

Net financing costs

• 28.6
• 26.3
• 2.3

Share in results of associates 3.5 3.2 0.3 Income tax expense

• 42.4
• 42.8

0.4 Income tax rate 25.0% 24.3% Result after tax from continuing operations 127.5 133.1

• 5.6
• 4.2

Result after tax from discontinued operations 23.3 44.5

• 21.2

Total result for the period 150.8 177.6

• 26.8
• 15.1

Basic EPS (€) 2.18 2.54

• 0.36

Basic EPS continuing operations (€) 1.85 1.91

• 0.06
• 3.1

Net result and EPS

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Balance sheet

Assets (€ million) 31.12.13 31.12.12 Fixed assets 500.1 639.6 Intangible assets 429.4 408.1 Other non-current assets 83.6 92.3 Inventories 286.1 370.1 Trade receivables 696.6 857.4 Other current assets 19.5 176.9 Cash and cash equivalents 146.9 263.0 Assets held for sale 462.0 6.5 Total 2,624.2 2,813.9 Equity and liabilities (€ million) 31.12.13 31.12.12 Equity 961.8 949.5 Interest bearing debt 498.7 524.8 Provisions 3.8 6.3 Trade payables 736.0 1,204.6 Other liabilities 107.1 128.7 Liabilities held for sale 316.8 0.0 Total 2,624.2 2,813.9 31.12.13 31.12.12 Net working capital 272.0 200.4 Net debt

• 351.8
• 261.8

Net working capital

• Higher working capital mainly driven by acquisitions

40

Cash flow from continuing operations

€ million 2013 2012 Delta abs. EBIT 195.0 199.0

• 4.0

Depreciation and amortisation 56.1 54.7 1.4 EBITDA 251.1 253.7

• 2.6

Working capital movement

• 52.5

0.4

• 52.9

Capital expenditure

• 105.7
• 123.3

17.4 Other movements 25.2

• 6.2

31.7 Free cash flow 118.1 124.6

• 6.4

Acquisitions and divestments

• 78.6

43.0

• 121.6

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Other movements

• ‘Other movements’ 2013 mainly relates to a settlement of FX contracts to hedge working capital

exposure (€24 m)

Updated financial guidance

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Organic growth (revenue) guidance per segment Updated Previous Animal Nutrition 3% n.a. Fish Feed 5% 5% EBITA margin guidance per segment Updated Previous Animal Nutrition 6-7% n.a. Fish Feed 6-7% 7% Nutreco total 5.5-6.5% 5-6% Key ratios guidance Updated Previous ROACE Unchanged >15% Net debt / EBITDA Unchanged <3.0 Interest coverage Unchanged >5.0 Net debt / Equity Unchanged <1.0

Key ratios

2013 2012** Guidance EBITA / Revenue 5.6% 5.9% 5.5-6.5% Return on average capital employed (ROACE) 17.9% 21.9% >15% Net debt / EBITDA* 1.1 0.9 <3.0 Interest coverage* 9.9 11.8 >5.0 Net debt / Equity* 0.37 0.27 <1.0 Basic EPS continuing operations (€) 1.85 1.91

• 3.1%

Dividend per share (€) 1.00 1.03 Pay-out ratio 45% 45% 35-45% 3-year total shareholders return performance 42.6% 84.3% Total shareholders return ranking #19 #3 Peer group AEX, AMX, AScX

43

* For total business excluding exceptional items and including discontinued operations **Adjusted for IAS 19R

Agenda

44

• 1. Highlights
• 2. Driving sustainable growth strategy
• 3. Full year 2013 financial results
• 4. Strategic agenda 2014

Summary

Strategic

• Intended divestment of

compound feed and meat businesses in Spain and Portugal

• Fully committed to ‘Driving

sustainable growth’ strategy

• Financial guidance adapted
• Strengthening organisational

focus

Innovation

• New Chief Innovation Officer

to lead improved execution

• f R&D output
• Higher value-added

nutritional solutions

• Increased sales of global

products

Execute roadmap

• Focus on premix, feed

specialties and fish feed

• Operational excellence in

mature markets

• Grow in geographies Latin

America, Russia, Asia & Africa

Outlook

• Nutreco will give an
• utlook for the first half

year of 2014 at the Q1 trading update on 24 April

45

Thank you

Appendix

47

LOW STOCKS ADVERSE WEATHER BIOFUEL PRODUCTION PRICE SPECULATIONS

Struggling supplies

48

GROWING POPULATION URBANISATION GROWING MIDDLE CLASS CONVERGING DIETS

7 to 9 billion by 2050 50% to 70% by 2050 3 billion more by 2030 Globally: 37 to 50 kg meat, 83 to 99 kg dairy by 2050

Surging demand

49

Where we come from

Closer to the consumer Initial public offering Part of BP Nutrition Driving sustainable growth

Animal Nutrition and Fish Feed segments

Family businesses Rebalancing for growth Formation

Private equity Since 1899 Since 1931 Since 1968 Since 1954 Since 1937

Start 1975 1994 1997 2004 2011

50

Western Europe Central & Eastern Europe North America Latin America Asia-Pacific Africa and Middle East

577 241 644 144 158 450 232 87 137 242 78 74 Animal Nutrition Fish Feed

Note: Turkey is included in Africa and Middle East, Oceania is included in Asia-Pacific, Mexico is included in Latin America

792

Norway 11

20% 16% 21% 4% 10% 21% 8%

Segment revenue by region in 2013 (€3,867.1 million)

51

EBITA development since IPO

52 Note: EBITA from continuing operations before exceptionals after corporate costs. 2012-2013 have been adjusted for continuing operations to reflect the intended divestment of the compound feed and meat businesses in Spain and Portugal

59 60 73 85 119 117 92 98 112 117 159 182 175 210 232 225 216

50 100 150 200 250

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

(€ x million) P disc

• n

dif c

TSR > 550% and beta reduced to 0.7

31 Dec 2013 IPO 1997 5 10 15 20 25 30 35 40 45 200 400 600 800 1,000 1,200 AEX Nutreco (€)

53

Animal Nutrition

Nutreco’s subsidiaries Trouw Nutrition, Sloten, Selko, Shur-Gain and Landmark Feeds produce and market premixes, compound feed, farm minerals, young animal feeds, preventive animal health products and feed additives. Market position

• Trouw is no. 2 global premix

producer with an estimated market share of 12%

• Main competitors are DSM,

Cargill (Provimi) and InVivo/Evialis

• Shur-Gain/Landmark are #1 in

Canada with 23% market share

Presence

• 15 production facilities in

Europe, 31 plants in the Americas and 3 plants in Asia

• JVs in Venezuela and Ukraine

Customers

• Feed compounders,

integrators, distributors, farmers, companion animal industry and home mixers

Suppliers

• Producers of grains,

vegetable proteins, land animal products, amino acids, trace elements & minerals, vitamins, dairy products, preventive animal health products, organic acids among others

54

Products with different margins

Volume

High concentrate premix Margin 1% 5% 10% 100% 3% 4% 6% 10% Global Local Premix/farm minerals Concentrates Complete feed Pure/blended feed additives 0.1-0.3%* 1-5%* 5-10%* 100%*

Energy e.g. grain Protein e.g. soya Macro-minerals e.g. feed phosphates Basic feed additives e.g. amino acids Feed additives e.g. preventive animal health products

* Inclusion rate: percentage of inclusion in final product

55

The innovation cycle

Application Solution Centres (ASCs) are the interface between local marketplaces and Nutreco’s global marketing and innovation teams ASC R&D Customers Needs Business input Nutritional and technical know-how Interface Operating companies

56

ASC ̶ geographical reach

More than 1,200 experts in local technical and sales teams serving our customers ASC ̶ North America (27 experts) ASC ̶ Europe (33 experts) More than 100 R&D experts

Future growth ASC – Latin America Future growth ASC – Asia

Application and Solution Centres Research Centres Nutreco presence

57

Nutreco science strategy

Quantitative Nutrition Functional Nutrition

Focus areas

Optimise feed value Predictable performance Animal modeling Higher performance and efficiency Sustainable production Reduce footprint Feed evaluation and least cost formulation Efficiency additives

OUTCOME SOLUTION

Young animal vitality and performance Young animal feeds Better and more stable gut health Gut health ingredients/ programs Reduce transition problems Transition feeds and programs Reduce human health risks Zoonoses and toxin control

OUTCOME SOLUTION

58

Animal Nutrition research centres

More than 100 qualified experts working in 5 research centres in 3 countries

Expertise

• Ruminant RC (NL)
• Swine RC (NL)
• Ingredient RC (NL)
• Agresearch (CA)
• Poultry RC (ES)

Certifications

• ISO 9001
• GMP+
• HACCP

Qualified experts

• Animal nutrition
• Veterinarian
• Immunology
• Molecular biology
• Biochemistry
• Feed technology
• Food technology
• Food microbiology

59

Animal feed volumes (million tonnes) and average annual growth 2006-2011 185 225 207 210 143 150 69 89 33 40 4.1% 0.3% 0.9% 5.2% 3.9% Asia Pacific North America EU-27 Latin America Other Europe & Russia

Sources: Feed International, 2012 | OECD-FAO Agricultural Outlook 2013-2022

FAO forecasts – long term growth

• Global meat production CAGR to 2022 is forecast at 1.6%
• Global dairy production CAGR to 2022 is forecast at 1.8%

Consistent growth globally in animal feed

60

Selko markets: throughout feed-to-food value chain

61

Presan development - A collaborative effort

Poultry Research Centre, ES Ingredients Research Centre, NL Swine Research Centre, NL AgResearch, CA Complete dossier built on in-vivo measurements and results from more than 20 trials

63

Presan improves animal performance

And the performance of our customer Customer return on investment (ROI) with Presan:

• Reduced use of antibiotics & zinc oxide
• Similar or better performance for lower price:
• Increased weight
• Increased value
• Better life
• Improved feed conversion
• Up to € 5 ROI for every € 1 invested in Presan*

* Clinical data on file

64

Africa: growth market for animal nutrition and fish feed

Animal Nutrition

Largest markets are:

• Egypt: poultry
• Nigeria: poultry
• East Africa: poultry and ruminants
• South Africa: poultry and ruminants

Most professional markets in North & South Africa

Fish Feed

Largest markets are:

• Nigeria: Cat fish and Tilapia
• Egypt: Tilapia
• Uganda: Tilapia

Total feed market around 1.3 million tonnes

65

Nutreco in Africa

Export & growth

• Export to more than 20 countries in

Africa

• Year on year growth of >25%
• Growth in number of countries and

size of the countries in recent years with dedicated sales

Egyptian market

• Active for over 10 years in Egypt with

local joint venture Hendrix Misr., market leader in extruded fish feed (mainly tilapia) which is sold under the trade name Skretting

• Took full control in June 2013

Strategy

• Focused Nutreco strategy for Africa to

expand business with possible local ventures

• Business Unit Africa established to

increase focus

66

Fish Feed

Nutreco’s subsidiary Skretting produces and delivers high-quality feeds from hatching to harvest for more than 60 species of farmed fish and shrimp

Market position

• Skretting is a leading global

salmon feed producer with an estimated market share of 33%

• Main competitors of salmon

feed are EWOS and BioMar

• Global no. 3 shrimp feed

producer with an estimated market share of 6%

Presence

• Skretting has production

facilities in 17 countries for sales in over 40 countries

• JVs in Egypt and Honduras

Customers

• Fish and shrimp farmers

Suppliers

• Producers of marine

products, vegetable proteins, vegetable oils among others

67

Skretting ARC – world class fish feed R&D

• 20 nationalities
• >40 with university degree

Nationalities

• Specialists in fish nutrition,

health and feed technology

Specialists

• Collaborations with over

40 research institutions worldwide

Collaborations

Optiline Premium

Important innovations

68

Feed for all purposes

Broodstock feeds Larval feeds Juvenile feeds Transfer diets

(e.g. freshwater to saltwater)

Grower diets Harvest diets Anti-stress diets Organic feeds Speciality feeds Customer- specific feeds Certified products

(e.g. for supermarket chains)

Medicated feeds

69

Skretting Aquaculture Research Centre units

ARC Norway ARC Asia ARC Mediterranean

ARC Lab Feed Technology Plant Lerang Salmon | Trout | Cod | Halibut China and Japan Italy and Spain Trout | Sea bass | Sea bream | Sole | Turbot Shrimp | Asian sea bass | Tilapia Yellowtail | Red sea bream 70

Maintain leadership position in feed for salmonids

Thanks to MicroBalance Norwegian salmon producers became net fish protein producers in 2010

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 1990 1995 2000 2005 2008 2009 2010 Potential

Kg fish protein used in feed versus Kg fish protein produced

Source: Skretting ARC

2011 2012

71

The potential of Norwegian aquaculture

1999 2010 2030 2050

Economic value €1.5 billion Economic value €4.3 billion Economic value €15 billion Economic value €30 billion Volume 0.5 mill. tonnes Volume 1 mill. tonnes Volume 3 mill. tonnes Volume 5 mill. tonnes

Salmonid value chain

10% CAGR

Source: Value created from productive oceans in 2050, SINTEF, 2012

6.5% CAGR 3.5% CAGR 6.5% CAGR 5.6% CAGR 2.6% CAGR

72

Steady growth of global salmon farming industry

500 1,000 1,500 2,000 2,500 kTonnes Other Faroes Canada UK Chile Norway 1992 2015e 2000 2005 2010 CAGR 9%

Sources: Kontali, ABG Sundal Collier, companies

73

Fish meal reduction in salmon (2010)

0.50 0.55 0.60 0.65 0.70 0.75 0.80 0.85 0.90 Growth (SGR, %/day) Fishmeal 30% Fishmeal 15% + Fishmeal 15% + MicroBalance Equal growth with MicroBalance

74

CUSTOMER FISH SOCIETY SHAREHOLDER

MicroBalance

75

‘11 ‘12 ‘13 ‘14 ‘11 ‘12 ‘13 ‘14 ‘11 ‘12 ‘13 ‘14 ‘11 ‘12 ‘13 ‘14

A long term growing market

Sources: Kontali feed consumption report, January 2014 | OECD-FAO Agricultural Outlook 2013-2022

FAO aquaculture forecasts

• 35% production growth over the period 2013-2022
• By 2015 50% of human fish consumption will be

provided by aquaculture

• By 2023 China will comprise 63% of world

aquaculture production

Salmonid feed consumption 2010-2014F (million tonnes, % change per year)

Norway Chile Other countries Total 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5

Kontali 2014 feed consumption estimates

Worldwide decline of 3% in 2013, slight increase

• f 2% forecast for 2014:
• After a decline of 2% in demand in 2013, strong

growth forecast for Norway in 2014 of 7%

• Challenging sanitary conditions in Chile are driving a

forecast decline of 8% forecast for 2014 compared to a 5% decline in 2013 4.0

12% 11%

• 2% 7%

43% 21%

• 5%
• 8%

2% 2% 1% 3% 18% 12%

• 3% 2%

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The blue revolution towards 2020

Global production of seafood 1950-2020

250,000 200,000 150,000 100,000 50,000 8 6 4 2 7 5 3 1 9 1950 1960 1970 1980 1990 2000 2010 2020E

Wild catch

Tonnes (x 1000) Billion

Aquaculture

Sources: FAO State of World Fisheries and Aquaculture 2012 | OECD-FAO Agricultural Outlook 2013-2022

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