Half year results 2014 Amsterdam, 24 July 2014 Disclaimer The - - PowerPoint PPT Presentation

Half year results 2014

Amsterdam, 24 July 2014

Disclaimer

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

subscribe for, underwrite or otherwise acquire, or any solicitation of any offer to purchase or subscribe for, securities including in the United States, Australia, Canada or Japan.

• The information contained herein is not for publication or distribution into the United States, Australia,

Canada or Japan. Neither this announcement nor any copy of it may be taken or distributed or published, directly or indirectly, in the United States, Australia, Canada or Japan.

• 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 23 July 2014 14.00 2

Agenda

3

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

Higher first half results - highlights

4

Revenue €2,460.0 million

• Revenues increased by 2.6%
• Volumes increased by 5.2%

Additional share buy-back

• € 100 million share buy-back to
• ptimise balance sheet

Half year EBITA €108.2 million

• Animal Nutrition EBITA margin 6.7%
• Fish Feed EBITA increased 23.9% to

€ 43.5 million Basic earnings per share €0.82

• Increased by 5.1%

Focus on growth

• Organic growth; investment in 3 Asian

premix plants

• African expansion; Nigeria fish feed

joint venture Interim dividend €0.30

• To be paid in shares (or cash at option
• f shareholder)

10th AquaVision 2014 conference in Stavanger, Norway

“The problem with aquaculture is that we simply cannot get enough from it. The challenge is to do it sustainably.”

• Sir Bob Geldof, keynote speaker
• >400 delegates from +45 countries
• Key messages:
• continue sustainable geographic expansion
• innovate to increase yields
• control use of raw materials

5

Agenda

6

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

Nutreco’s three segments

Revenue 2013: € 5.2 billion EBITA* 2013: € 256 million € 1.8 billion € 112 million € 131 million € 2.0 billion

Over 100 production plants in 30 countries 10 R&D units in 7 countries Multi national workforce of 10,000 employees

€ 1.4 billion € 41 million

Fish Feed Animal Nutrition Compound Feed & Meat Iberia

*Including corporate costs

Our strategy – Driving sustainable growth

Higher value-added portfolio of nutritional solutions Premix, feed specialties and fish feed Growth geographies Latin America, Russia, Asia and Africa Sustainability throughout the feed-to- food chain

Animal Nutrition strategy

9

Focus Solid positions ASCs Go-to-market Revenue

Higher value-added portfolio of nutritional solutions Growth geographies, secure mature markets Link between R&D and customer needs Improve the commercialisation of our value proposition 35% of EBITA from growth geographies

EBITA margin

EBITA operating margin 6-7%

Key focus areas for innovation - Animal Nutrition

10

• Young animal feed
• Young animal vitality

and later life performance

Young animal nutrition

• Supporting intestinal

health

• Nutritional solutions for

transition periods

Health & welfare

• Feed additives for

production efficiency

• Reducing emissions

Feed efficiency

• Precision feeding
• Services & models for

quantitative nutrition

• Optimised feed value

and predictable performance

Application solutions

A global portfolio of branded specialty products

11

Clear product group portfolio with strong brands

Feed additives Preventive animal health products Young animal feeds

Young animal feed – aims of the LifeStart programme

12

Asia – investment in new premix plants

• Vietnam (Ho Chi Minh City area): will produce premix, farm minerals and

young animal feed concentrates

• Indonesia (East Java): will produce premix and farm minerals
• China (Xiangtan, Hunan): plant to be remodeled to produce premix, farm

minerals, piglet feed and feed additives

• Total of €15 million investment

13

Fish Feed strategy

14

Volume growth R&D Non-salmonid Maintain leadership EBITA margin

5% volume growth Roll-out MicroBalance and Protec to other species Grow non-salmonid feed volume share to 50% Grow salmonid feed volume in line with the market (5% CAGR) EBITA operating margin 6-7%

Oceans of opportunities

Source: FAO Fish to 2030 Prospects for Fisheries and Aquaculture, 2013

20 40 60 80 100 120 140 160 Million tonnes 2030

6.9bn

• Est. 8.3bn

2010

Aquaculture

Wild capture for human consumption

Population growth Increased incomes Health

BRAZIL EGYPT CHINA HONDURAS ECUADOR JAPAN TURKEY VIETNAM

Aquaculture growth factors

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

16

17

 Nutrition  Health promotion  Farming practices

Salmon farming in Norway Catfish farming in Nigeria

Technology & knowledge

116 119 123 85.8 86.1 86.3 85.4

85.6 85.8 86 86.2 86.4 112 114 116 118 120 122 124

Relative Growth Index Slaughter Yield (%)

More fish from limited resources

18

More production sites More production in existing sites

Faster growth Higher densities More filet

7%

higher with Optiline Premium

0.6%

higher with Optiline Premium

Proactive nutrition in fish feed

MicroBalance for shrimp feed

• Aim to apply MicroBalance concept to shrimp to allow for

flexible feed formulations and lower the use of expensive fishmeal

• Trials have been undertaken in Chinese research station
• Preliminary results indicate that fish meal levels can be

reduced in shrimp diets (from 25-30% down to 15%)

• Commercial product likely by end of year

20

Ibadan

Joint venture in Nigeria

New joint venture will be a leading fish feed company

• JV with Durante, leading Nigerian fish feed supplier and existing distribution

partner

• JV to invest in local production of extruded fish feed for Nigeria and wider

West African region

• Nigeria is Africa’s largest economy and its second largest fish producer after

Egypt

• Nigeria produces >200,000 tonnes fish feed p.a., (mostly for catfish), and

aquaculture production is growing by 5 to 10% per year

• Transaction close is expected within 3 months

21

2013 Revenue

€ 9 million

Volumes 5,500

• Mkt. share

(extruded feed) 15%

Compound Feed & Meat Iberia Business Unit

22

• Decision to halt divestment process announced (11 June 2014) as no fair valuation could be

reached

• Businesses are well-managed, combine market leadership with operational excellence and

are cash generative

• BU now fully focused on implementing agreed strategic projects
• Operating companies include Nanta (compound feed), Sada (poultry processing) and Inga

(pig trading) with approx. 3,500 employees and revenues of €1,414 million in 2013

Agenda

23

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

Revenue development half year 2014

H1 2013 H1 2014 Organic growth +3.6% Acquisitions +3.1% Volume +5.2%

2,398.7 2,460.0

Price

• 1.6%

Currency

• 4.1%

(€ x million) H1 2014 H1 2013 % Animal Nutrition 884.3 907.0

• 2.5

Fish Feed 928.3 770.9 +20.4 Compound Feed & Meat Iberia 647.4 720.8

• 10.2

Total revenue 2,460.0 2,398.7 +2.6

24

Nutreco

25

€ x 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% € x million H1 2014 H1 2013 Delta % Revenue 2,460.0 2,398.7 +2.6 EBITDA* 138.4 123.6 +12.0 EBITA* 108.2 94.1 +15.0 EBITA/Revenue 4.4% 3.9%

• Avg. capital employed

1,426.0 1,346.2 +5.9 ROACE (EBITA/ACE) 19.0% 18.8% Volume effect Price effect Acquisitions FX effect +5.2%

• 1.6%

+3.1%

• 4.1%

Operational highlights

• Volume effect was +5.2% mainly driven by higher Fish Feed

volumes

• EBITA Animal Nutrition up 4.7% to € 59.6 million
• EBITA Fish Feed up 23.9% to € 43.5 million

*Before exceptional items

Animal Nutrition

26

€ x 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% € x million H1 2014 H1 2013 Delta % Revenue 884.3 907.0

• 2.5

EBITDA 67.4 64.8 +4.0 EBITA 59.6 56.9 +4.7 EBITA/Revenue 6.7% 6.3%

• Avg. capital employed

660.4 662.5

• 0.3

ROACE (EBITA/ACE) 17.3% 17.6% Volume effect Price effect Acquisitions FX effect +1.3% +0.4% +1.2%

• 5.4%

Operational highlights

• Operating margin increased to 6.7%
• Better performances in mature markets in Europe and

North America and young animal feed

Fish Feed

27

€ x 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% € x million H1 2014 H1 2013 Delta % Revenue 928.3 770.9 +20.4 EBITDA 56.9 47.3 +20.3 EBITA 43.5 35.1 +23.9 EBITA/Revenue 4.7% 4.6%

• Avg. capital employed

599.4 507.8 +18.0 ROACE (EBITA/ACE) 23.2% 26.2% Volume effect Price effect Acquisitions FX effect +21.0%

• 2.3%

+8.3%

• 6.6%

Operational highlights

• Volume effect of 21.0% mainly driven by higher demand for

salmon feed in Norway due to the exceptional market circumstances

• New acquisitions in Ecuador and Egypt performing well

Compound Feed & Meat Iberia

28

€ x 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% € x million H1 2014 H1 2013 Delta % Revenue 647.4 720.8

• 10.2

EBITDA 26.5 22.9 +15.7 EBITA 18.1 13.8 +31.2 EBITA/Revenue 2.8% 1.9%

• Avg. capital employed

172.4 169.1 +2.0 ROACE (EBITA/ACE) 26.1% 17.8% Volume effect Price effect Acquisitions FX effect

• 6.7%
• 3.5%
• Operational highlights
• EBITA increased to € 18.1 million mainly due to lower raw

materials prices and good chicken and pork meat markets

• The meat business substantially compensated for 25% y.o.y.

lower sales to Mercadona by increasing sales to other customers

Operating result (EBITA)

€ million H1 2014 H1 2013 Delta abs. Delta % Animal Nutrition 59.6 56.9 +2.7 +4.7 Fish Feed 43.5 35.1 +8.4 +23.9 Compound Feed & Meat Iberia 18.1 13.8 +4.3 +31.2 Corporate

• 13.0
• 11.7
• 1.3

EBITA from continuing operations before exceptional items 108.2 94.1 +14.1 +15.0 Restructuring (Reversal of) impairment charges Acquisition/divestment-related costs Other

• 0.6
• 1.7
• 2.9

0.0

• 3.0
• 2.9
• 2.1

0.0 Total exceptional items

• 8.6
• 4.6
• 4.0

EBITA from continuing operations 99.6 89.5 +10.1 +11.3

29

€ million H1 2014 H1 2013 Delta abs. Delta % EBITDA* 129.8 119.0 +10.8 +9.1 Depreciation

• 30.2
• 29.5
• 0.7

+2.4 EBITA* 99.6 89.5 +10.1 +11.3 Amortisation

• 6.2
• 7.6

+1.4

• 18.4

EBIT from continuing operations 93.4 81.9 +11.5 +14.0 Net financing costs

• 15.5
• 13.9
• 1.6

+11.5 Share in results of associates 0.4 3.3

• 2.9
• 87.9

Income tax expense

• 20.7
• 17.8
• 2.9

+16.3 Income tax rate 26.4% 25.0% Total result for the period 57.6 53.5 +4.1 +7.7 Basic EPS (€) 0.82 0.78 0.04 +5.1

Net result and EPS

30

*Including exceptional items

Balance sheet

Assets (€ million) 30.06.14 31.12.13* Fixed assets 625.9 635.9 Intangible assets 431.4 429.7 Other non-current assets 95.7 93.7 Inventories 556.5 476.4 Trade receivables 819.2 808.8 Other current assets 17.7 22.8 Cash and cash equivalents 79.0 152.0 Total 2,625.4 2,619.3 Equity and liabilities (€ million) 30.06.14 31.12.13* Equity 981.2 961.8 Interest bearing debt 484.4 500.9 Provisions 3.4 4.1 Trade payables 1,032.6 1,010.0 Other liabilities 123.8 142.5 Total 2,625.4 2,619.3 30.06.14 31.12.13* 30.06.13 Net working capital 343.1 275.2 365.0 Net debt

• 405.4
• 348.9
• 552.0

31

*Differs from full year 2013 presentation because of reclassification in accordance with IFRS 5

Cash flow from continuing operations

€ million H1 2014 H1 2013 Delta abs. EBIT 93.4 81.9 +11.5 Depreciation and amortisation 36.4 37.1

• 0.7

EBITDA 129.8 119.0 +10.8 Working capital movement

• 62.2
• 87.7

+25.5 Capital expenditure

• 32.4
• 50.4

+18.0 Other movements

• 7.8

+10.4

• 18.2

Free cash flow 27.4

• 8.7

+36.1 Acquisitions and divestments 0.0

• 77.9

+77.9

32

Financial guidance

33

Organic volume growth guidance per segment Animal Nutrition 3% Fish Feed 5% EBITA margin guidance per segment Animal Nutrition 6-7% Fish Feed 6-7% Compound Feed & Meat Iberia 2-3% Nutreco total 5-6% Key ratios guidance ROACE >15% Net debt / EBITDA <3.0 Interest coverage >5.0 Net debt / Equity <1.0

Key ratios

H1 2014 H1 2013 Full year guidance EBITA / Revenue 4.4% 3.9% 5-6% Return on average capital employed (ROACE) 19.0% 18.8% >15% Net debt / EBITDA 1.2 1.9 <3.0 Interest coverage 8.4 8.6 >5.0 Net debt / Equity 0.42 0.61 <1.0 Basic EPS continuing operations (€) 0.82 0.78 +5.1% Dividend per share (€) 0.30 0.30

34

Additional share buy-back

35

• Nutreco is a cash generative company and we will use our financial

strength to support organic growth and make selective acquisitions

• We continue to expect to make one or two strategic acquisitions a year
• Currently we have ample financial room to achieve our growth objectives
• In order to optimise the efficiency of our balance sheet and enhance

future earnings per share, we will undertake an additional share buy-back programme of € 100 million in the second half of the year

Agenda

36

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

Outlook for full year 2014

• Based on current trading conditions and barring any unforeseen circumstances

Nutreco expects EBITA before exceptional items from continuing operations for the full year 2014 to be at least equal to 2013 (FY 2013: € 256.3 million)

37

Summary

Strategic

• Strong contribution from

shrimp and tilapia feed companies in Ecuador and Egypt acquired in 2013

• Investment in 3 Asian premix

plants

• Fish feed joint venture in

Nigeria

Operational

• Animal Nutrition EBITA

increased by 4.7% to € 59.6 million

• Margin improvement Animal

Nutrition 6.7% (H1 2013: 6.3%)

• Fish Feed EBITA increased by

23.9% to € 43.5 million

Execute roadmap

• Focus on premix, feed

specialties and fish feed

• Operational excellence in

mature markets

• Growth geographies Latin

America, Russia, Asia & Africa

Financial

• Interim dividend of € 0.30
• € 100 million share buy-

back

38

Thank you

Appendix

40

Our challenge

Doubling the food production Halving the pressure on the planet Feeding 9 billion people in 2050

Struggling supplies

42

Adverse weather Biofuel production Low stocks Price speculations

Surging demand

43

Growing middle class

3 billion more by 2030

+ 5 % + 7 %

Urbanisation

50% to 70% by 2050

Converging diets

Globally 37 to 50 kg meat, 83 to 99 kg dairy by 2050

+

Growing population

7 to 9 billion by 2050

The essential link

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

Where we come from

45

1994 2004 1975 1997 2011 Family businesses

Since 1899 Since 1954 Since 1931 Since 1937 Since 1968

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

Private equity

Start

Executive Committee

Regional scope Global scope Global leverage

Executive Board

Chief Executive Officer Knut Nesse Chief Financial Officer Gosse Boon Compound Feed & Meat Iberia Americas Hugues LeRuz Asia T.B.A. EMEA Harm de Wildt Feed Additives Martijn Adorf Global Salmon & Fish Feed Southern Europe Steven Rafferty Chief Innovation Officer Viggo Halseth Chief HR &

• Corp. Dev.

Officer Nalin Miglani Fish Feed Animal Nutrition Javier Rodriguez Ceballos

Our employees

47

Employees in R&D and innovation of which 22% PhDs

26.0%

Women working at Nutreco 2013 Employees in growth geographies

2,589

Number of employees in FTE at year end

2012

9,717

2013

10,231 Part-time employees Temporary contracts 2013 7.3% 2012 7.6% 2013 12.6% 2012 12.6%

Employees per segment

3,876 3,357 3,553

€ 5.2 billion revenue 10,000 employees >100 production locations Sales in more than 80 countries 11 R&D units in 7 countries

Nutreco’s presence

Global brands:

48

Segment revenue by region in 2013 (€ 5,237.2 million)

49

644 144

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

11 792 550 233 229 87 135 242 78 74 154 450

Fish Feed

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

Compound Feed & Meat Iberia 1,414 Spain & Portugal

EBITA development since IPO

50

Note: EBITA before exceptionals after corporate costs

59 60 73 85 119 117 92 98 112 117 159 182 175 210 232 262 256 H1 108

50 100 150 200 250 300

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 H1 2014

(€ x million)

TSR > 600% and beta reduced to 0.6

AEX Nutreco (€)

51

5 10 15 20 25 30 35 40 45 200 400 600 800 1,000 1,200

Sustainability progress made in 2013

52

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

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

53

54

Nutreco’s Animal Nutrition value proposition

Models Products Services

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

animal health products

• Young animal

feeds

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

Synergy between Animal Nutrition & Aquaculture

57

Feed additives & ingredients Science & technology R&D methodology

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

58

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

59

Animal Nutrition research centres

More than 100 qualified experts working in 6 research centres in 3 countries

Expertise

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

Certifications

• ISO 9001
• GMP+
• HACCP

Qualified experts

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

60

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 2014-2023

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 1.9%

Consistent growth globally in animal feed

61

' Weighted average growth rate approximately 2.5%'

Selko Feed Additives – added value

Food safety Preventive animal health Economic value

62

Selko markets: throughout feed-to-food value chain

63

Presan: maximum return on investment

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

65

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 66

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

67

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
• Joint venture in Nigeria for extruded

fish feed (mainly catfish) in 2014

Strategy

• Focused Nutreco strategy for Africa to

expand business with possible local ventures

• Business Unit Africa established to

increase focus

68

Compound Feed & Meat Iberia

• Poultry products, pig farming and trading and feed solutions primarily for

poultry, pigs and ruminants in Spain and Portugal

Market position

• Nanta is the leading feed

producer in Iberia with an estimated market share of 13%

• Sada is the largest poultry

producer in Spain, estimated market share 27%

Presence

• Nanta has a nationwide

presence in Spain and Portugal with 20 compound feed plants

• Sada has a nation-wide

presence in Spain with 10 poultry processing facilities

Customers

• Nanta services livestock

farmers including Sada and Inga Food

• Retail, wholesale, food

industry and food service (Sada); pig meat processors (Inga Food)

Suppliers

• Nanta sources from

producers of grains, vegetable proteins, land animals products, vegetable

• ils
• Sada and Inga Food source

from Nanta and others

69

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

70

Skretting – the global brand for fish feed

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

71

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

72

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

73

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

74

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 75

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

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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

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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

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 79

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

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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 81

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

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CUSTOMER FISH SOCIETY SHAREHOLDER

MicroBalance

83

‘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, June 2014 | OECD-FAO Agricultural Outlook 2014-2023

FAO aquaculture forecasts

• 35% production growth over the period 2014-2022
• 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 increase of 5% forecast in 2014;

• Strong growth forecast for Norway in 2014 of 7%
• Chile forecast to be flat at 0% for 2014

4.0

12% 11%

• 2% 7%

43% 21%

• 5% 0%

4% 3% 1% 7% 18% 12%

• 2% 5%

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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 2013 | OECD-FAO Agricultural Outlook 2014-2023

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H1 results IR presentation index

1. Half year results 2014 2. Disclaimer 3. Agenda 4. Higher first half results - highlights 5. AquaVision 2014 conference 6. Agenda 7. Nutreco’s three segments 8. Our strategy – Driving sustainable growth 9. Animal Nutrition strategy 10. Key focus areas for innovation - Animal Nutrition 11. A global portfolio of branded specialty products 12. Young animal feed – calf milk replacers 13. Asia – investment in new premix plants 14. Fish Feed strategy 15. Oceans of opportunities 16. Unique knowledge – Skretting’s passion for fish 17. Technology & knowledge 18. More fish from limited resources 19. Proactive nutrition in fish feed 20. MicroBalance for shrimp feed 21. Joint venture in Nigeria 22. Compound Feed & Meat Iberia BU 23. Agenda 24. Revenue development half year 2014 25. Nutreco 26. Animal Nutrition 27. Fish Feed 28. Compound Feed & Meat Iberia 29. Operating result (EBITA) 30. Net result and EPS 31. Balance sheet 32. Cash flow from continuing operations 33. Financial guidance 34. Key ratios 35. Additional share buy-back 36. Agenda 37. Outlook for full year 2014 38. Summary 39. Thank you 40. Appendix 41. Our challenge 42. Struggling supplies 43. Surging demand 44. The essential link 45. Where we come from 46. Executive Committee 47. Our employees 48. Nutreco’s presence 49. Segment revenue by region in 2013 (€ 5,237.2 million) 50. EBITA development since IPO 51. TSR > 600% and beta reduced to 0.65 52. Sustainability progress made in 2013 53. Animal Nutrition 54. Nutreco’s Animal Nutrition value proposition 55. Products with different margins 56. The innovation cycle 57. Synergy between Animal Nutrition & Aquaculture 58. ASC ̶ geographical reach 59. Nutreco science strategy 60. Animal Nutrition research centres 61. Consistent growth globally in animal feed 62. Selko Feed Additives – added value 63. Selko markets: throughout feed-to-food value chain 64. Presan: maximum return on investment 65. Presan development - A collaborative effort 66. Presan improves animal performance 67. Africa: growth market for animal nutrition and fish feed 68. Nutreco in Africa 69. Compound Feed & Meat Iberia 70. Fish Feed 71. Skretting – the global brand for fish feed 72. More than salmon: over 60 species 73. Skretting ARC – world class fish feed R&D 74. Feed for all purposes 75. Skretting Aquaculture Research Centre units 76. Maintain leadership position in feed for salmonids 77. World’s largest and most modern fish feed factory - Averøy 78. Acquisitions in Ecuador and Egypt 79. World fish and shrimp feed market 2013* 80. The potential of Norwegian aquaculture 81. Steady growth of global salmon farming industry 82. Fish meal reduction in salmon (2010) 83. MicroBalance 84. A long term growing market 85. The blue revolution towards 2020

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