Highlights Full Year 20 08 ireus Aquaculture SA - Celebrating 2 0 - - PDF document

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Full Year 2 0 0 8 Results Presentation

NI REUS AQUACULTURE S.A.

Athens Greece | March 2 00 9

Νireus Aquaculture SA - Celebrating 2 0 Years ( 1988 – 20 08)

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Highlights – Full Year 20 08

• Sales negatively affected by the drop in price of seabream
• Group sales in 2008 am ounted to € 169,6 mi. versus € 214,3 mi. in 2007 (€

206 mi. in 2007 excluding confectionaries)

• Sales were affected mainly by the drop in the price of seabream and measures

taken to limit possible negative developments from the adversities affecting the Mediterranean fish farming sector.

• Sales of merchandise dropped by € 17,9 mi.
• Stricter credit controls resulted in a decrease of fishfeed sales by € 15,9 mi.

and juvenile sales by € 2,1

• Exports I ncreased as a Percentage of Sales
• Exports in 2008 amounted to 61% of total sales vs 55% in 2007
• Operating m argins at 1 3.5 %
• Operating margins were stable over FY 2008 despite the lower price of

seabream and increased costs in raw material prices.

• The selective eggs technology and the inland production of 10 gram juveniles

resulted in a 3% reduction in the cost of production of market size fish vs 2007

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Νireus Aquaculture SA - Celebrating 2 0 Years ( 1988 – 20 08)

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Highlights - Full Year 200 8 ( cont.)

• Earnings after taxes affected by low seabream prices, one- off tax

settlem ent and loss in affiliate

• EBIDTA am ounted to € 30 mi and EBIT € 23 mi. - Earnings after taxes amounted to €

1.1 mi.

• The loss of Marine Farms ASA affected net income negatively by € 0,87 mi. and a tax

charge by € 2.3 mi.

• Restructuring of bank debt
• A new bond € 90 mi. joint bond loan with a 7 year duration was issued to refinance

existing debt – L/ T debt is 75% of total.

• Merge w it h Kego
• Finalized on November 2008
• New fish species
• Nireus started the cultivation of meagre in 2008 – first sales are expected in Xmas

2009.

• Fish production in Spain
• In Jan 2009, an agreement was signed for the cultivation (on a contract basis) of

fish in Spain – Nireus already produces and sells 10 gr. juveniles in Spain through a 100% owned subsidiary.

Νireus Aquaculture SA - Celebrating 2 0 Years ( 1988 – 20 08)

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2 00 8: Sea bream – extrem ely low prices

SEABREAM Price and Volume Evolution 2007- 2008 (source MercaMadrid)

100 200 300 400 500 600 700 800 Jan Feb M ar Apr May Jun Jul Aug Sep Oct Nov D ec Jan Feb M ar Apr May Jun Jul Aug Sep Oct Nov D ec 2007 2008 3 4 5 6 7 8 9 10 Volume th ton Price €

SEABREAM European ex-farm prices 1999 - 2008 e (source FEAP)

3,00 4,00 5,00 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 e

• I n 20 0 8, production of sea bream increased

by 4 2% ( source FEAP) . This depressed prices to historically low levels and –drove the sector into its m ost challenging period since its inception –ham pered grow th –led to on- going indust ry consolidation.

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Νireus Aquaculture SA - Celebrating 2 0 Years ( 1988 – 20 08)

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2 00 8: Sea bass – stable prices

SEABASS Price and Volume Evolution 2007- 2008 (source MercaMadrid)

50 100 150 200 250 300 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2007 2008 6 7 8 9 10 11 12 13 14 15 Volume th ton Price € SEABASS European ex-farm prices 1999 - 2008 e (source FEAP)

4 5 6 7 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 e

• Product ion levels ( and prices) of sea bass

w ere stable in 2 00 8.

Νireus Aquaculture SA - Celebrating 2 0 Years ( 1988 – 20 08)

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2 00 8: Higher raw m aterials costs

CBOT Corn m onthly CBOT W heat m onthly CBOT Soybean Oil w eekly I n 2 0 0 8 the cost for all raw m aterials used for the production of fish feed rem ained at higher levels versus 2 0 0 7 Fishm eal Peru Monthly ( source: I MF)

. . . . . .

Fishmeal Peru US$ / MT (source: IMF)

600 800 1.000 1.200 1.400 Jan 2005 Jan 2006 Jan 2007 Jan 2008

Monthly price

. .

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Νireus Aquaculture SA - Celebrating 2 0 Years ( 1988 – 20 08)

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Financials – Balance Sheet

S/ T banks loans shifted to L/ T Receivables w ere reduced by € 3 5 m i. Days of sales outstanding decreased by 2 4 % ( 1 2 2 days in 2 0 0 8 versus 1 6 0 days in 2 0 0 7 )

Assets

in mi. €

2 0 0 8 2 0 0 7 2 0 0 6 Total non-current 293,27 221,13 150,95 Total current 231,16 308,56 188,30 Total assets 5 2 4 ,4 3 5 2 9 ,6 9 3 3 9 ,2 4

Equit y and liabilit ies

in mi. €

2 0 0 8 2 0 0 7 2 0 0 6 Total shareholders' equity and minority interests 168,27 176,12 122,19 Total non-current liabilities 217,47 151,55 101,71 Total current liabilities 138,69 202,02 115,34 Total liabilities 356,16 353,57 217,05 Total equity and liabilities 5 2 4 ,4 3 5 2 9 ,6 9 3 3 9 ,2 4

Νireus Aquaculture SA - Celebrating 2 0 Years ( 1988 – 20 08)

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Financials – I ncom e Statem ent

Sales w ere affected by low prices in seabream = > drop in m erchandise sales = > reduced sales for juveniles / fish feed Expenses w ere reduced by 1 6 m i. and the operating m argin w as m aintained at 1 3 .5 % but, = > a tax charge and loss of affiliate im pacted profits

I ncom e Statem ent

in mi. € 2 0 0 8 2 0 0 7 2 0 0 6 Biological Sales 1 1 2 ,0 1 3 4 ,2 4 9 9 ,0 2 Non-Biological Sales 5 7 ,8 8 0 ,0 2 6 2 ,4 7 Total Sales 1 6 9 ,8 2 1 4 ,2 6 1 6 1 ,4 8 Gain from change of Fair Value in Biological Assets 1 6 0 ,8 0 1 5 9 ,5 8 1 2 3 ,8 6 EBI TDA 2 9 ,9 1 3 6 ,3 0 2 7 ,2 6 EBI T Operating 2 2 ,9 5 3 0 ,0 4 2 0 ,1 5 EBT 9 ,7 8 2 0 ,3 5 1 4 ,5 4 Tax

• 8,65
• 5,42
• 5,61

EAT 1 ,1 3 1 4 ,9 3 8 ,9 2 Majority interest 0,32 10,36 9,05 Minority interest 0,81 4,57

• 0,12

Earnings per share 0,0058 0,225 0,224

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Νireus Aquaculture SA - Celebrating 2 0 Years ( 1988 – 20 08)

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Financials – Cash Flow Statem ent

• Grow ing the fish inventory for 2 years require s high w orking capital needs
• Nireus m aintains a high cash balance despite the cost of increasing production constantly

in mi. € 2 0 0 8 2 0 0 7 2 0 0 6 Profit before tax 9,87 20,35 14,54 Cash flow from operating act ivit ies

• 2 6 ,1 8
• 1 3 ,7 1

5 ,0 5 Cash flow from invest ing act ivities

• 1 2 ,8 2
• 6 1 ,0 8
• 2 ,2 3

Cash flow from financing activit ies 1 6 ,7 4 1 1 4 ,1 8 5 ,9 0 Total cash flow report ing period

• 2 2 ,2 6

3 9 ,3 8 8 ,7 2 Cash and cash equivalents at the beginning of the period 51,90 12,52 2,70 Cash and cash equivalent s at t he end

• f the period

2 9 ,6 4 5 1 ,9 0 1 1 ,4 1

Νireus Aquaculture SA - Celebrating 2 0 Years ( 1988 – 20 08)

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Financials – Key Figures

Earnings w ere adversely affected by the drop in the price of seabream , loss of affiliate and one-off tax settlem ent in mi. € 2 0 08 2 0 07 20 0 6 Operating revenues 169,75 214,26 161,48 EBI TDA 29 ,91 36 ,30 2 7,2 6 EBITDA margin(% ) 18% 17% 17% EBT 9 ,78 20 ,35 1 4,5 4 EBT margin(% ) 6% 9% 9% Earnings after tax & m inorities 0 ,32 10 ,36 9,0 5 Earnings per share 0,0058 0,225 0,224 Total assets 524,43 529,69 339,24 Equity 168,27 176,12 122,19

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Νireus Aquaculture SA - Celebrating 2 0 Years ( 1988 – 20 08)

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Sales Quantities and Prices

Sales of m erchandise fish w ere reduced as they w ere deem ed unprofitable Sales of fish feed and juveniles to sm all farm ers w ere based on stricter credit term s, due to the sea bream situation 62.4 77 74.4 Juveniles ( m i. pieces) 28 45.3 27.1 Fish Feed ( thou.

ton.)

0.95 0.94 0.90

• Aver. Price

( €/ kg) 24 26.4 22.6 Market-size fish ( thou. ton.) 4.43 4.75 4.71

• Aver. Price

( €/ kg) 2008 2007 2006 0.21 0.20 0.20

• Aver. Price ( per

piece)

Νireus Aquaculture SA - Celebrating 2 0 Years ( 1988 – 20 08)

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Sales by Sector

The fish farm ing sector includes ow n and m erchandise fish and fish-related products( juveniles, eggs) I n the other products , confectionaries w ere sold in Dec 2 0 0 7 ( 2 0 0 7 w as € 8 ,3 m i.)

120 141

121

24 44 28 17 29

21

Fish Farming Fish Feed Other

Sales by Sector for 2006, 2007 & 2008

2006 2007 2008

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Νireus Aquaculture SA - Celebrating 2 0 Years ( 1988 – 20 08)

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W e have restructured bank debt

W e hedge 9 7 ,5 m i. € for interest rate increases L/ T Debt structure

• 1 9 ,6 m i. convertible of 5 yr

duration ( obtained Jul 2 0 0 7 – 6 banks)

• 9 0 m i. joint bond of 7 yr

duration ( obtained Jan 2 0 0 8 )

• 4 9 ,9 m i. long term loan of

1 0 yr duration secured by the Greek state that also pays ½

• f the interest – 1 st paym ent

January 2 0 1 0 ( obtained Dec 2 0 0 7 and April 2 0 0 8 )

• 2 9 ,9 m i. loans of 1 5 year

duration and 3 ,7 m i. bond loans of 2 -5 years duration ( obtained in 2 0 0 5 and 2 0 0 6 – 1 5 banks)

56,5% 43,5% 75,0% 25,0% 0,0% 50,0% 100,0% 2007 2008

Bank Loans Structure

L/T bank loans S/T bank loans Νireus Aquaculture SA - Celebrating 2 0 Years ( 1988 – 20 08)

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I ncreased exports’ share

20 0 7 Sales Breakdow n 20 0 8 Sales Breakdow n Exports am ounted to 61 % of total sales versus 5 5% a year ago

Greece 45% Other 7% E .U. 48% E.U. 54% Other 7% Greece 39%

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Νireus Aquaculture SA - Celebrating 2 0 Years ( 1988 – 20 08)

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I n 200 8 w e cut gross production cost for all products by 3%

100 88 78 77 75 71 66 71 68

50 60 70 80 90 100 2000 2001 2002 2003 2004 2005 2006 2007 2008E I nflation-adjusted cost - production of w hole fish

( base year 2 000 = 100 )

Despite increased cost of raw m aterials

Decreased production cost

Νireus Aquaculture SA - Celebrating 2 0 Years ( 1988 – 20 08)

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Put a new fish species in our nets

Meagre (Argyrosomus regius) Meagre (Argyrosomus regius)

• Meagre is a fast grow ing species
• Reaches 8 0 0 -1 2 0 0 gr. in 1 year
• Good quality flesh, low in lipids w ith a high

proportion of polyunsaturated fatty acids.

• Size appropriate for filleting and sm oking
• Nireus brings extensive experience into

m eagre cult ivation

• On-grow ing sim ilar to sea bass and sea bream
• First sale from Nireus is expect ed to

take place in Xm as 20 0 9.

FEAP: Meagre production ( ton.)

3 0 0 6 0 0 9 0 0 1 2 0 0 1 5 0 0 1 8 0 0 2 1 0 0 2 4 0 0 2 7 0 0 0 m onth s 6 m onth s 12 months 18 m onths 24 m onths gr.

Meagre Seabass/ Seabream

1 6 2 0 8 1 0 8 4 5 2 7 3 1 1 Spain 3 5 0 3 3 5 2 8 0 3 2 0 I taly 2 6 5 2 3 5 3 0 0 3 0 0 2 0 0 France 2008 2007 2006 2005 2004

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Νireus Aquaculture SA - Celebrating 2 0 Years ( 1988 – 20 08)

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And invested selectively on the future

I n May 2 0 0 8 Nireus w as certified by the British Retail Consortium ( BRC Global Standards)

I nvestm ents in productivity gains and products w ith high gross m argin:

• The 2 nd Greek unit for the inland product ion of 1 0 gr. juveniles w as

com pleted in Evia and started operations in Q4 ( capacity 1 5 m i. pieces)

• Spain is increased product ion capacity for 10 gr. juveniles by 3 0%
• The Turkish hatchery over doubled production capacit y

I nvestm ents in cost cutting:

• Merge w ith Kego ( 2 0 08 ) , Red Anchor, A- Sea, Alpino ( 20 0 9)
• I m provem ents in processing unit for m arket size fish
• Redesigning of logistics in EU m arket

Νireus Aquaculture SA - Celebrating 2 0 Years ( 1988 – 20 08)

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Source: I MF, FEAP Report on Mediterranean Aquaculture, Novem ber 2 008

Sea bream prices have a strong negative correlation w ith high volum e grow th and a w eaker link w ith GDP grow th. Prices are expected to im prove relatively in the second half of 2 00 9 and increase

• nce a bett er balance betw een supply and dem and is achieved

2 00 9 Outlook: Sea bream prices

EU GDP growth Greece GDP growth %Δ volume %Δ price 1998-1999 3,04% 3,42% 95%

• 24%

1999-2000 3,94% 4,48% 24% 0% 2000-2001 2,10% 4,49% 5%

• 11%

2001-2002 1,40% 3,90% 1% 0% 2002-2003 1,54% 5,04% 11% 19% 2003-2004 2,68% 4,58% 1%

• 4%

2004-2005 2,19% 3,83% 5%

• 3%

2005-2006 3,33% 4,19% 27%

• 5%

2006-2007 3,11% 4,00%

• 12%
• 4%

2007-2008 E 1,65% 3,16% 42%

• 20%

Volume average growth 20%

Developm ent of sea bream prices versus volum e and GDP grow t h

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Νireus Aquaculture SA - Celebrating 2 0 Years ( 1988 – 20 08)

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2 00 9 Outlook: The Econom y

Source: I MF econom ic forecast – Jan 2 0 0 9

I MF forecasts w eaker grow t h in 20 09

Νireus Aquaculture SA - Celebrating 2 0 Years ( 1988 – 20 08)

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But, seafood perceived as recession resistant

Source: The Nielsen Com pany, June 2 0 0 8

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Νireus Aquaculture SA - Celebrating 2 0 Years ( 1988 – 20 08)

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Strategy for 2 0 0 9 -2 0 1 0

2000

Market Focus:

• Open new m arkets for large fish
• Develop and sell VAP products
• New logistics center in Milan
• Sales/ dist ribution offices in I t aly,

France, Spain

• Diversify in new fish- related products

Operation Focus:

• Sw ap licenses – consolidate operat ions into efficient, fully integrated

farm ing clusters

• Low er capex, operat ing expenses and consum ption of fish feed

Assum ptions:

• Raw m aterials and transport cost w ill rem ain at low er levels
• The seabream situat ion w ill be im proved, but still w eak

Νireus Aquaculture SA - Celebrating 2 0 Years ( 1988 – 20 08)

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Appendix: Cost dynam ics in fish farm ing

Harvest Weight

Normal Operations Operations + Disease + Mortality Operations + Disease

Cost per kg

Δcost - Mortality Δcost - Disease Δcost - Weight

• Vertical structure ensures less risk from disease
• The 10- gr juvenile pre-fattening units target reduction in

m ortality

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Νireus Aquaculture SA - Celebrating 2 0 Years ( 1988 – 20 08)

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Appendix: Calculation of the fair value of biom ass

Fish farming companies are required to calculate and report the fair value of their biomass (IAS 41). The fair value of the biomass is calculated as volume (kg) x market price, net of harvesting and transportation cost, and is adjusted for the part that is not ready to harvest. The key drivers are the volume and weight of the biomass and the market price at the time of the calculation The ready to harvest part of the end-of-period biomass is reported in the B.S. as a current asset and the not ready to harvest as a non-current asset. Sales in the I.S. are separated into biological and non- biological. Biological sales represent sales of juveniles and fish (raw and processed) produced by the company. Non- biological sales represent the sales of the fish/ juveniles produced by others, the sales of fish feed, equipment, and other products. The gain or loss arising from changes in the fair value

• f the biomass is computed as follows:

biomass at end of period (+) biological sales (-) biomass at beginning of period (-) purchases of eggs and juveniles for production = gain/loss from biomass

The sales of fish/ juveniles produced by

• thers, fish feed,

nets, other products

Non- biological sales

Biological + Non- biological

Total Sales

The sales of fish/ juveniles produced by the com pany – to include processed fish

Biological Sales

Δ Volum e Δ Price

Key Drivers

Volum e x Price

Fair value of biom ass ( B.S.)

Νireus Aquaculture SA - Celebrating 2 0 Years ( 1988 – 20 08)

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Com m unication – Financial Calendar

I nvestor Relations

• Ms. Maria Kotsovou, I R Manager
• Tel. + 30 210 66 98 335
• Mob. + 30 693 66 98 335

Email m.kotsovou@nireus.com

• Ms. Konstantina Panagiotaki, I R Associate

Tel + 30 210 66 98 373 Email k.panagiotaki@nireus.com Nireus supports the United Nations Global Com pact

Financial Calendar 20 0 9

FY 2 0 0 8 Results Monday, 3 0 March 2 0 0 9 3 Mo. 2009 Results : Friday, 29 May 2009 Ordinary AGM: Friday, 19 June 2009 6 Mo 2009 Results : Friday, 28 August 2009 9 Mo 2009 Results : Friday, 27 November 2009

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Νireus Aquaculture SA - Celebrating 2 0 Years ( 1988 – 20 08)

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Legal Notice

This presentation has been prepared solely for inform ational purposes. Any projections

• r other estim ates in this presentation, including estim ates of returns or perform ance,

com m ents w ith respect to our objectives and strategies, or the results of our operations and business, are forw ard-looking statem ents based upon certain assum ptions that m ay be w rong. These assum ptions m ay be influenced by factors w ithin or beyond our control, and actual results m ay differ m aterially from any estim ates and projections. Factors influencing actual results include but are not lim ited to fluctuations in fish prices and raw m aterial prices, the effects of com petition in the areas in w hich w e operate, changes in the econom ic environm ent, regulatory and econom ic conditions. This presentation is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrum ent or to participate in any trading strategy. No part of this presentation m ay be construed as constituting investm ent advice or a recom m endation to enter into any transaction. No representation or w arranty is given w ith respect to the accuracy or com pleteness of the inform ation contained in this presentation, and no claim is m ade that any future offer to transact any securities w ill conform to any term s that m ay be contained herein. Before entering into any transaction, investors should determ ine any econom ic risks and benefits, as w ell as any legal, tax and accounting consequences of doing so, as w ell as their ability to assum e such risks, w ithout reliance

• n the inform ation contained in this presentation.

Νireus Aquaculture SA - Celebrating 2 0 Years ( 1988 – 20 08)

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