SALMON INDUSTRY 1 Global produc@on of Salmon tons WFE; Market - - PowerPoint PPT Presentation

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SALMON INDUSTRY

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Chile is the #2 Producer of Atlan@c Salmon in the World

Source: Kontali

Global produc@on of Salmon tons WFE; Market share per origin

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GLOBAL DEMAND FOR ATLANTIC

46% 47% 47% 45% 44%

17% 18% 19% 20% 20%

5% 5% 4% 4% 4% 7% 5% 3% 3% 4% 26% 28% 27% 29% 30% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2014 2015 2016 2017 2018 E

Global demand for Atlan@c Salmon

Thousand tons WFE; Market share per country

Others Russia Brazil

USA

EU

2,206 2,311 2,218 2,264 2,407 Source: Kontali

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Source: Infotrade – Based on Chilean Customs

42% 43% 44% 45% 45%

18% 19% 17% 16% 15% 8% 10% 9% 7% 10% 3% 3% 6% 5% 7% 21% 18% 17% 19% 18% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2014 2015 2016 2017 2018

Chilean exports of Atlan@c Salmon

US$ million; Market share per desQnaQon

Others China Russia Brazil

USA

3,018 2,512 2,942 3,397 3,866

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Market Research:

Demand is growing as salmon is seen as a healthy protein choic

• Consumers have awareness of nutri@onal value: Protein, Omega-3 and other faYy acids for

muscle, brain and heart health

• Minimal percep@ons of difference between the nutri@onal value of different salmon types

(e.g. wild vs farmed, Country of Origin)

Au Audien ence ce Pe Percep,ons Ch Chefs

• Salmon perceived as substan,ally healthier than other protein sources, and this is a b

driver for consumer demand Se Seafood d Buy uyers

• No,ced increasing demand for salmon supply

Nu Nutri,on

• nists
• Very strong percep,on of salmon being healthy, and consump,on should be

encouraged Environme mentalists

• Aquaculture playing an extremely important role in feeding the popula,on healthily

CSMC PercepQons of Chilean Salmon in the United States 11/30/18, 1/4/19

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Fishing decreases and the aquaculture grows as the only solu@on to the demand

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THE SALMON IS PART OF THE SOLUTION AND NOT O THE PROBLEM

• 1. Increase in protein demand
• 2. Fisheries in exploitaQon limits
• 3. Protein with lower environmen

impact

• 4. Healthy protein (DHA, EPA) an

quality and nutriQous salmon

• 5. Limited use of mariQme space
• 6. High efficiency in food convers

and edible meat

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TAINABLE SOURCE OF PROTEIN

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CHILEAN SALMON INDUSTRY

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Harvest evolution

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Small and medium sized companies

4,000

Employees

61,000

20,000 direct 41,000 indirect

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6%

Of Exports

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In economic ac@vity

US $5,157,000,000 in output +10.86% vs ‘17

2018

20 companies 892.5 k tons (WFE) 350 ac@ve sites

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Markets and compe1tors ilean Industry: Compe1tors

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Markets and compe1tors ilean Industry: Compe1tors

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Chilean Salmon Industry

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High Demand for Suppliers

• Goods
• Infrastructure
• Services

Fresh water Farming Processing Sales Consumer

Breeding, Broodstock & ubaQon, eggs Fry producQon Farming SmolQficaQon Processing Well boat Process Final cons Seafarms Freshwater HarvesQng & Processing Sales & DistribuQon

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hilean almon dustry

Marine transport Land transport Diagnos@c laborato Process Diving Prepara@on and maintenance of networks Machinery and equipment Agriculture and fe Naval infrastructur Veterinary supplies Environmental Sampling

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Chilean Salmon Industry

Regulatory framework: General and Sectorial

Environmental Sanitary ProducQ

Regulatory framework

Highly regulated 3 Ministries. 16 public agencies .

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Chilean Salmon Industry

RegulaQon control the producQon and estricts growth based on Environmental and Sanitary behaviour.

Sanitary Standards (Biosecurity) Environmental standards rict Regulatory Framework erates as Traffic Light Prohíbe Restringe Regula

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CHALLENGES

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Chilean Salmon Industry Challenges

Prohibi@on

It is not possible to use it preven@vely

An@bio@c usage Sustainable Feed Seabed Fish escapes Sealice

educ@on in bio@c mp@on in 2018. st value in the years mmiied to ce mp@on by y 2025 in era@on with GO Monterrey Aquarium The best solu@on to this problem is the rota@on of farms and coordinated fallow periods (minimum 5 to 8 months). We are ini@a@ng pilot tests of new technologies to accelerate the normaliza@on of the ocean boiom. Objec@ve: 0 escapes. Site cer@fica@on Proper infraestructure :seali

• n net, grow nets.

There are no further studies of the preda@on condi@on

• f salmon

Medicinal treatments Vaccina@on Non farmacological treatments

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OUR COMPANY

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Salmones Camanchaca

A fully integrated salmon farmer...

GeneQcs and Fresh Water

Own Atlan@c Gene@cs Spawning plant RAS facility Non Atlan@c Hatcheries

Sea Water

Farming sea sites

• 74 sites in 14

different neighbourhoods, dispersed over regions X and XI

• 25 AtlanQc salmon

acQve sites in 2019.

• 4 Coho sites acQve

sites in 2019

• 7 Trout sites

contributed to a JV, in force 2017-2022

Processing 2 primary processing plants:

1 value adding processing plant

• Tomé, in region VIII,

with capacity:

• HON Frozen: 20k

fish/day

• Trim/PorQons: 40k

fish/day ...with global presence

MarkeQng & sales

• Diversified sales
• ffice in key markets
• USA
• Mexico
• Europe
• Japan
• China
• Chile
• Sales in 38 countries

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• Unleash scale potenQal
• Exceed 60,000 tons WFE of AtlanQc by 2022
• Open up Coho producQon (4-5k ton) starQng in

2019

• PotenQal of 10-12k avg. annual producQon from

Coho or Trout since 2022.

• Gain cost efficiencies
• Diversified market/buyer pornolio with

emerging market focus

• Majority of our producQon ASC cerQfied
• Maximize farming capacity uQlizaQon as leases

expire

• Processing automa@on and efficiencies
• Use of latest technology for feed and fish wellne
• Biology control
• Reduce AB
• Introduce mechanical sea lice treatments
• Oxygen & algae miQgaQon systems (Climate

Change)

• New markets and product flexibility
• Adhere to all 8 principles of ASC cerQficaQon in al

faming sites

Sustainable, cost and market leading producer

• f Salmon from the

Chilean Patagonia Medium term ambiQons Vision PrioriQes

Strategic PosiQoning