NI REUS AQUACULTURE S.A. Nireus at a glance The leader in seabass - - PowerPoint PPT Presentation

9 Months 2 0 0 9 Results Presentation

NI REUS AQUACULTURE S.A.

Athens Greece | 2 7 Novem ber 2 0 09

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• The leader in seabass and seabream fish farm ing
• A fully integrated producer
• Production facilities in 3 countries: Greece, Spain and Turkey
• Exports to > 40 countries – the # 1 exporter in the Greek food sector
• Significant growth potential on existing capacity
• Exclusive know-how and technology enable sustainable cost reduction
• W ell positioned to participate in further industry consolidation
• Know the Mediterranean fish farming business
• Proven success in absorption of other companies
• Attractive I ndustry Fundam entals
• Very attractive industry outlook long-term
• Recession resistant sector
• I ndustry will become more attractive from on-going consolidation
• Nireus is well positioned to capture opportunities in the global industry

Nireus at a glance

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• Financial
• Fish sales up + 15.4% in volume + 9.6% in value
• Sector adversities continue to impact sales of feed and juveniles
• Total sales for 9M 2009 € 125.9 versus € 131.4 in 9M 2008 (down 4% )
• On going cost reduction focus delivers significant results – sales and admin

expenses reduced by € 7.1 mi. (down 11.6% ) – PPE halved to € 5.9 mi.

• Net income for 9M 2009 2.3 mi. up + 63%
• Operations
• A new logistics service was created with Tradimar (of the STEF-TFE group) in Milan
• New product / brand launched in Greece.
• Market and external factors
• Seabream price has recovered solidly from historical low (April 2009)
• Aggregate cost for raw materials at 2008 levels
• Solid demand for seabass/ seabream – price stable despite higher volumes

Main events 9 Months 2 0 0 9

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Seabream price recovered

Recovery of the price of seabream despite higher volum es Depleting inventories expected to sustain price at higher level

MercaMadrid - Monthly volum es for fresh farm ed Seabream

100 200 300 400 500 600 700 800 900 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

tonnes 2008 2009 Seabass (Sparus aurata) Seabass (Sparus aurata)

MercaMadrid - W holesale Prices for Fresh farm ed Seabream last update 21/ 11/ 2009

3,00 3,50 4,00 4,50 5,00 5,50 6,00 6,50 7,00 7,50 8,00 8,50 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50

EURO / kg

2008 2009

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Sea bass price is stable

Price at 20 08 levels w ith higher volum es

MercaMadrid - Monthly volum es for fresh farm ed Seabass

50 100 150 200 250 300 350 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

tonnes

2008 2009

Seabass (Dicentrarchus labrax) Seabass (Dicentrarchus labrax) MercaMadrid - W holesale prices for fresh farmed Seabass la st upda te 2 1 / 1 1 / 2 0 0 9

4,50 5,00 5,50 6,00 6,50 7,00 7,50 8,00 8,50

2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50

2 0 0 8 2 0 0 9

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Aggregate cost of raw m aterials used for the production of fish feed stable vs 200 8

Data Source : FAO

Monthly Soybean Meal

(pellets, 44/45%, cif Rotterdam)

200 250 300 350 400 450 500 550 Jan Feb Mar Apr M ay Jun Jul Aug Sep Oct Nov Dec

2007 2008 2009

Monthly Fish Oil

(cif North West Europe)

400 800 1.200 1.600 2.000 Jan Feb M ar Apr M ay Jun Jul Aug Sep Oct Nov Dec

2007 2008 2009

Monthly Fish Meal

(64/65% Bremen fca)

900 1.000 1.100 1.200 1.300 1.400 1.500 Jan Feb M ar Apr M ay Jun Jul Aug Sep Oct Nov Dec

2007 2008 2009

Stable cost for feed raw m aterials

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The ongoing consolidation of the Greek sector

• No. of Lisences 1985-2009

12 170 220 229 260 290 310 310 315 320 329 329 329 329 100 200 300 400 1985 1995 2000 2002 2004 2006 2008

• No. of Companies 1985-2009

12 110 140 140 170 185 190 205 193 248 260 175 167 125 106 80 50 100 150 200 250 300

1 9 8 5 1 9 9 1 9 9 1 1 9 9 2 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 2 3 2 6 2 8 2 9

Data Source : Federation of Greek Mariculture

Greek Production - thou ton

0,1 1,6 17 59 79 98 97 82 85 100 120 130 120 20 40 60 80 100 120 140 1985 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Stable capacity since 2 0 0 6 ( NO new licenses) 8 0 com panies in 2 0 0 9 vs 1 6 7 com panies in 20 0 6 Hellastat expects a further reduction in production to 1 1 0 thou. ton. in 2 0 1 0

( analysis of the Greek fish farm ing sector, Oct 2 0 09 )

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Financials – Balance Sheet

Assets

in m i. €

9M 20 09 9 M 2008 200 8 Total non-current 253,27 246,23 293,27 Total current 269,77 268,41 231,16 Total assets 523,0 4 514,6 5 52 4,43

Equity and liabilities

in m i. €

9M 20 09 9 M 2008 200 8 Total shareholders' equity and m inority interests 170,79 170,23 168,27 Total non-current liabilities 213,07 214,07 217,47 Total current liabilities 139,18 130,34 138,69 Total liabilities 352,24 344,42 356,16 Total equity and liabilities 523,0 4 514,6 5 52 4,43

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Financials – I ncom e Statem ent

in mi. € 9M 2 00 9 9 M 20 08 20 08 Biological Sales 9 2,3 9 5,6 111 ,9 8 Non-Biological Sales 3 3,6 3 5,8 5 7,7 7 Total Sales 12 5,9 1 31,4 169 ,7 5 Gain from change of Fair Value in Biological Assets 1 17 ,9 2 125 ,5 7 160 ,8 0 EBI TDA 20 ,6 3 1 9,7 5 2 9,9 1 EBI T Operating 14 ,6 3 1 4,4 6 2 2,9 5 EBT 6 ,2 6 6 ,4 5 9 ,7 8 Tax

• 3,95
• 5,02
• 8,56

EAT 2 ,3 2 1 ,4 2 1 ,1 3 Majority interest 1 ,7 4 0 ,4 5 0,32 Minority interest 0 ,5 8 0 ,9 8 0,81 Earnings per share 0,0273 0,0087 0,0058

Reduced sales of feed and juveniles to farm ers im pacted overall sales Fish sales up + 9 .6 % in value

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Financials – Cash Flow Statem ent

Strong reduction in sustaining capex

in mi. € 9 M 20 0 9 9 M 2 00 8 2 0 0 8 Profit before tax 6,26 6,45 9,78 Cash flow from operating activities

• 12,40
• 14,23
• 2 6 ,1 8

Cash flow from investing activities

• 3,93
• 17,64
• 1 2 ,8 2

Cash flow from financing activities 2,16 9,25 1 6 ,7 4 Total cash flow reporting period

• 1 4 ,1 7
• 2 2,62
• 2 2 ,2 6

Cash and cash equivalents at the beginning of the period 29,64 51,90 51,90 Cash and cash equivalents at the end

• f the period

15 ,4 7 2 9,28 2 9 ,6 4

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Financials – Key Figures

in m i. € 9 M 2 0 0 9 9 M 2 0 0 8 2 0 0 8 Operating revenues 125,87 131,40 169,75 EBI TDA 2 0 ,6 3 1 9 ,7 5 2 9 ,9 1 EBITDA m argin(% ) 16% 15% 18% EBT 6 ,2 6 6 ,4 5 9 ,7 8 EBT m argin(% ) 5% 5% 6% Earnings after tax & m inorities 1 ,7 4 0 ,4 5 0 ,3 2 Earnings per share 0,0273 0,0087 0,0058 Total assets 523,04 514,65 524,43 Equity 170,79 170,23 168,27

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Sales Breakdow n

Volum es in m arket-size fish increased by 15.4% Sales of feed and juveniles w ere reduced on stricter credit term s

0.22 58.5 0.97 21.4 4.54 18.1 9M 20 08 0.21 62.4 0.95 28 4.43 24 20 08 38 36.7 Juveniles

( m i. pieces)

20 17.5 Fish Feed ( thou. ton.) 0.93 0.93

• Aver. Price

( € / kg)

28 20.9 Market-size fish ( thou. ton.) 4.30 4.30

• Aver. Price

( € / kg)

20 09e 9M 20 09 0.21 0.21

• Aver. Price

( per piece)

96 98 21 16 15 12 Fish Farming Fish Feed Other

9Μ Sales by Sector for 2008 & 2009 (mi. €)

9M 2008 9M 2009 Fish farming = fish + juveniles sales Other = equipment to fish farmers + feed, health, breeding and equipment to aviculture and animal culture

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Fish Sales - Value

m i. € + 9 .6% 9 0 .2 8 2 .2 Δ% 9 M 20 09 9 M 20 08 m i. € + 1 3 .1 % 3 0 .1 2 6 .7 Δ% 3 Q 2 00 9 3 Q 2 00 8 9Μ 2008 9Μ 2009 35,7 90,2 82,2 49,2

0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0

Fish Sales (mi. €) Ot her sales (mi. €) 3Q 2008 3Q 2009 11,2 30,1 26,7 17,3

,0 ,0 ,0 ,0 ,0 ,0

Fish Sales (mi. €) Ot her sales (mi. €)

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Fish Sales – Volum es

4 4,5 5 5,5 6 6,5 7 7,5 2008 1Q 2008 2Q 2008 3Q 2008 4Q 2009 1Q 2009 2Q 2009 3Q

Fish Sales Volume ('000 T) - 2008-2009 - quarterly

‘0 0 0 T 1 5 .4 % 2 0 .9 1 8 .1 Δ% 9 M 20 09 9 M 20 08 ‘0 0 0 T 1 5 .4 % 6 .8 5 .9 Δ% 3 Q 2 00 9 3 Q 2 00 8

8,0 10,0 12,0 14,0 16,0 18,0 20,0 22,0 24,0 26,0 28,0 2004 2005 2006 2007 2008 2009e

Fish Sales Volume ('000 T) - 2003-2009e

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1 5 18,64 21,26 3M 2008 3M 2009

Strict Cost Managem ent

61,06 53,96 9M 2008 9M 2009

• 11.6%
• 12.4 %

Group

in mi. € 9 M 2 0 0 9 9 M 2 0 0 8 Salaries & personnel expenses 25,21 27,97 3rd party fees and benefits 15,83 17,17 Other expenses 12,92 15,92 3 Q 2 0 0 9 3 Q 2 0 0 8 Total 5 3 ,9 6 6 1 ,0 6 1 8 ,6 4 2 1 ,2 6 Total as % of sales 4 2 ,8 7 % 4 6 ,4 7 % 4 5 ,0 2 % 4 8 ,3 4 %

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1 6 15,02 17,62 3M 2008 3M 2009 51,71 43,85 9M 2008 9M 2009

Everyw here

• 15.2 %
• 14.7 %

Com pany

9 M 2 0 0 9 9 M 2 0 0 8 Salaries & personnel expenses 19,44 22,39 3rd party fees and benefits 12,86 15,00 Other expenses 11,54 14,32 3 Q 2 0 0 9 3 Q 2 0 0 8 Total 4 3 ,8 5 5 1 ,7 1 1 5 ,0 2 1 7 ,6 2 Total as % of sales 3 5 ,0 9 % 3 7 ,7 6 % 3 4 ,4 1 % 3 5 ,9 0 %

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New product launch

Gutted bream , gutted bass and bream fillets launched in the Greek subsidiary of MAKRO hyperm arket under the brand nam e THALASSA ( SEA in Greek) .

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2 0 1 0 Outlook: fish feed volum es

Source for fish feed volum es: Kontali Analyse

Fish feed grow th for seabass/ seabream has been negative since Nov 2 008 Less dem and for fish feed ⇒low er fish population ( biom ass) ⇒reduction in future fish supply ⇒better expected pricing

Growth of fish feed production for seabass/seabream - 3M average Oct 2009

• 30%
• 20%
• 10%

0% 10% 20% 30% 40% Mar-06 Jul-06 Nov-06 Mar-07 Jul-07 Nov-07 Mar-08 Jul-08 Nov-08 Mar-09 Jul-09

Fish feed sales to seabass/seabream producers

10.000 20.000 30.000 40.000 50.000 60.000 70.000 80.000 90.000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2008 2009

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1 9 SEABASS Monthly Price and Volume Evolution Jan 1996 - Oct 2009 (source: MercaMadrid)

90.000 180.000 270.000 360.000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Volume (kg)

3,50 10,50 17,50 Price

Volume Price

Extrem e highs and low s in seabass/ seabream prices occur in a 7 - 8 years cyclical pattern that has a strong negative correlation w ith volum e grow th and a w eaker link w ith GDP grow th. Low er production volum es = > better pricing SEABREAM Production is less consolidated = > volatile pricing pattern Record high volum es in 2 0 0 8 - 2 0 0 9 = > historical low spring of 2 0 0 9 Reduced volum es are expected for 2 0 1 0 because of low prices SEABASS Production is m ore consolidated = > less volatility y- o-y Volum es have increased in 2 0 0 9

Historical patterns of bass / bream price

SEABREAM Monthly Price and Volume Evolution Jan 1996 - Oct 2009 (source: MercaMadrid)

300.000 600.000 900.000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Volume (kg) 3,00 5,00 7,00 9,00 11,00 Price

Volume Price

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Strategy for 2 0 0 9 -2 0 1 0

2000

Market Focus:

• Open new m arkets for large fish

fish sales volum e up 1 5 .4% in 9 Μ 09

• Develop and sell VAP products

new brand launched

• Open sales/ distribution offices in I taly,

France, Spain new logistics center in Milan

• Diversify in new fish-related products

Operation Focus:

• Cost reduction in capex, operating expenses, feed consum ption

low er capex, operating expenses

• Sw ap licenses – consolidate operations into 10 -1 2 efficient, fully

integrated farm ing clusters applied for relocation of several farm ing units

Assum ptions:

• The seabream situation w ill be im proved vs 1 st half of 2 00 9 .

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Excellent potential for grow th

Fish feed Fish feed Juveniles Juveniles Fish Fish

Sales Sales Sales grow th potential Sales grow th potential Capacity Capacity

Capacity: 3 5 .60 0 t

Utilization of full capacity does not require significant CAPEX expenditure Ready to increase production volum es as soon as the sector situation show s further im provem ent % of 20 08 Revenues % of 20 08 Revenues

Sales 07: 2 6.40 0 t Sales 08: 2 4.00 0 t

+ 4 8 %

Capacity: 2 0 0 m i. pieces Capacity: 9 0 .00 0 t Sales 0 7 : 7 7 m i. pieces Sales 0 8 : 6 2 m i. pieces

+ 1 0 0 % + 2 0 %

6 0 %

Sales 0 7 : 4 5 .300 t Sales 0 8 : 2 8 .000 t

8 % 1 6 %

* 9 Months 2 0 0 9 sales: Fish 2 0 .9 0 0 t, juveniles 3 6 .7 m i. pieces, fish feed 1 7 .5 0 0 t

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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 1 0 -gr juvenile pre-fattening units target reduction in

m ortality

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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 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

Biological + Non-biological

Total Sales ( I .S.)

The sales of fish/ juveniles produced by others, fish feed, nets,

• ther products

Non-biological sales ( I .S.)

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

Biological Sales ( I .S.)

Δ Volum e Δ Price

Key Drivers

Volum e x Price

Fair value of biom ass ( B.S.)

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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

Financial Calendar 2 00 9

FY 2008 Results Monday, 30 March 2009 3 Mo. 2009 Results: Friday, 29 May 2009 Ordinary AGM: Friday, 19 June 2009 6 Mo 2009 Results: Friday, 28 August 2009 9 Mo 2 0 0 9 Results: Friday, 2 7 Novem ber 2 0 0 9

Legal Notice

This presentation has been prepared solely for inform ational purposes. Any projections or other estim ates in this presentation, including estim ates of returns or perform ance, comm ents w ith respect to our objectives and strategies, or the results

• f our operations and business, are forw ard-looking statem ents based upon certain

assumptions that m ay be w rong. These assumptions 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 competition 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

• r 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 completeness

• f 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 terms 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 on the inform ation contained in this presentation.

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