long-term trends and opportunities Schouw & Co. CEO Jens Bjerg - PowerPoint PPT Presentation

Deep dive into BioMar and the long-term trends and opportunities Schouw & Co. CEO Jens Bjerg Sørensen BioMar CEO Carlos Diaz 9 December 2019

Agenda SCHOUW & CO. ▪ Very short introduction ▪ 2019 status and current outlook Jens Bjerg Sørensen, CEO Schouw & Co. BIOMAR ▪ The World of BioMar ▪ Trends, developments, future Carlos Diaz, CEO BioMar QUESTIONS ▪ Discussion and debate

SCHOUW & CO. STRATEGY Planning for the next strategic phase Bigger and stronger Consolidating the Diversification Go Strong portfolio conglomerate 1988 2001 2006 2016 2020 From focused packaging Adding new businesses in the Strengthening by capex and Sustaining the growth platform business to a diversified portfolio to create a conglome- bolt-on acquisitions and di- and adding new businesses to industrial conglomerate rate with scale and strength vestment of non-core activities the portfolio Elopak and Martin Fibertex and BioMar No new GPV and Borg new platform investments new platform investments platform investments new platform investments Consolidated revenue DKK billion CAGR +11% +20 CAGR +7% 14.4 CAGR +27% 7.4 CAGR +17% 2.2 0.3 1988 2001 2006 2016 2020E 3

Vis/skjul grid: ALT+F9 SCHOUW & CO. STRATEGY A long history of big and bold moves 94/97 2013 2005 2015 2012 2004 Structuring the wind industry Creating a European giant Strengthening Schouw & Co. Trebling Hydra Divestment of Micon / Nordtank / Vestas by merger of Grene and Kramp by acquisition of BioMar by acquisition of Specma Martin Professional 2018 2003 2011 2008 2006 Fibertex Personal Care’s Doubling GPV Unfolding potential by Global expansion of BioMar Divestment of by acquisition of CCS Malaysian greenfield expansion demerger of Fibertex by acquisition of Provimi Elopak 2002 2017 2011 2009 2016 BioMar’s entrance in shrimp Divestment of Internationalising Fibertex Unlocking value Divestment of Schulstad by acquisition of Alimentsa by acquisition of Tharreau by demerger of Grene Kramp

Vis/skjul grid: ALT+F9 SCHOUW & CO. STRATEGY 2019 status and highlights Comfort Comfort Comfort Comfort Low High Low High Low High Low High ▪ Better than expected ▪ 2019 benefits significantly ▪ Strategic review confirms ▪ Good comfort on 2019 development in Norway from FX and positive raw long-term potential Group guidance material regulations ▪ Solid 2020 contract base ▪ Decline in automotive ▪ Different impacts and ▪ Intense competition to and higher capacity than hard to compensate dynamics going into 2020 in 2019 continue in 2020 ▪ Good product pipeline, ▪ BioMar non-cyclical ▪ Solid sale of funct. feed ▪ Asian dynamics changing e.g. in nano ▪ Long-term megatrend driven demand across all businesses Comfort Comfort Comfort Low High Low High Low High ▪ Very successful 1st phase ▪ Strong outlook in wind ▪ Decline in sales have of integration of CCS reached the bottom ▪ Vehicle segment soft, ▪ Soft demand from ▪ Remanufacturing bullwhip effect in 2019 Q4 selected customers ▪ Cost base lowered going fundamentally demanded ▪ Many potential orders and ▪ Short-term uncertainty on into 2020 customers in 2020-2021 core prices 5

Vis/skjul grid: ALT+F9 SCHOUW & CO. STRATEGY Introducing BioMar Solid profitable growth since Schouw & Co.’s acquisition in 2005… Revenue EBIT DKK billion DKK million ~11.0 600-630 +9% +10% 202 3.3 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’06 ’07’08’09 ’10 ’11 ’12 ’13 ’14’15’16’17’18’19 …and a long -term highly value-creating investment for Schouw & Co. DKK million 2005 acquisition 894 2008 share swap 1 623 BioMar purchase value 1,516 Carlos Diaz 2006-2010 dividends 111 2011 dividend 250 CEO in BioMar since 2014 2012 dividend 150 2013 dividend 200 Part of BioMar since 2000 2014 dividend 200 Originally responsible for building 2015 dividend 200 2016 dividend 200 BioMar organisation in Chile 2017 dividend 200 2018 dividend 300 Educated veterinarian 2019 dividend 300 "Cash Flow" to date -595 6 Notes: 1) Including capital increase and dividend adjustment prior to acquisition

BioMar Group Schouw Investor Day December 2019

#ClimateAction The Global Aquaculture Mission ~50% Growth 2010 - 2050 Double production by 2050 without taking one more fish from the ocean or using any more agriculture land for crops. Aquaculture feed is responsible for up to 80% of the environmental impact of producing seafood. 8

01 The World of BioMar 02 Trends & Developments 03 In the Spotlight 04 The Future of BioMar 10

01 The World of BioMar Agenda The BioMar Portfolio Research & Development 11

BioMar at a glance 2018 Turnover EBIT Sales volume Employees Owned since 2006 by Danish EUR ~1.5bn EUR ~80m ~ 1.35m tons ~1,400 industrial conglomerate Schouw & Co. WE ARE INNOVATORS DEDICATED TO AN EFFICIENT AND SUSTAINABLE Only high Feeds 1 out of 5 Feed for +45 Sale to more than GLOBAL AQUACULTURE performance farmed fish in different species 80 countries aqua feed Europe/Chile + shrimp 12

16 sites ~1.7 mtons capacity 13 Production Facilities & Sales 13

SALMON DIVISION Species Atlantic Salmon Coho Rainbow Trout Markets MS: 20-25% MS: 30-35% MS: 25-30% MS: N/A Volumes * (ktons) Comments • Increasing pressure on GM/kilo Headlines CAGR across all business units +7% • Consolidation in farming continue 900 880 850 730 to take place • Continued strong demand for Salmon 2016 2017 2018 2019F * Including inter company sales & 100% Consolidation of JV’s

EMEA DIVISION Non exhaustive Species Sea Bass Eel Sea bream Rainbow Trout Markets MS: 45-55% MS: 20-25% MS: 25-30% MS: 5-10% Volumes * (ktons) Comments CAGR • Amerra entrance in Greece starting the +4% Headlines professionalization & consolidation of 290 280 280 the bass & bream segment 260 • Russia a growth market in an otherwise stable Baltic region • Difficult financial situation in Turkey but fundamentals still in place 2016 2017 2018 2019F * Including inter company sales & 100% Consolidation of JV’s

EMERGING MARKETS DIVISION Non exhaustive Species Shrimp Rainbow Trout Japanese Sea Bass Sturgeon Tilapia Markets MS: N/A MS: 15-20% MS: 10-15% Volumes * (ktons) Comments • Shrimp becoming a more and Headlines CAGR more important part of BioMar +89% • Ecuador delivering upon promises 235 220 from acquisition 130 • Environmental focus in China 35 support our business concept 2016 2017 2018 2019F * Including inter company sales & 100% Consolidation of JV’s

Latest Moves Going into Shrimp Feed Honduras: Mexico: Shrimp Feed < 75 200 Volumes by Country (k tonnes) Nicaragua: < 30 Venezuela: < 40 Guatemala: < 30 Brazil: Costa Rica: Panama: ~ 100 < 3 < 14 Ecuador: ~ 750 Peru: < 40 CAGR +11% 2018 2019 2020 2021 2022 17 Expected BioMar Volume Development

Shrimp Latest Moves Sturgeon Flat fish Establishing Crab Shrimp BioMar in China Sturgeon Sea bass Red drum Wuxi • Factory 2015 BioMar Group & Chinese feed giant Tongwei establish a joint venture in China • Approximately 30 mio. ton of fish and shell fish yearly is produced by aquaculture in Sea bass Sea bream China, making it the biggest aquaculture Shrimp country in the world Tilapia Trout Sturgeon Yellow croaker Tilapia Expected BioMar Volume Development Haiwei Factory CAGR +14% Japanese Sea bass Tilapia Shrimp Snakehead Pomfret / Pompano Production Facility Distance between Plants ~ 1300 km. Under Construction 2018 2019 2020 2021 2022

Latest Moves Pargua , Chile Driving the development in Chile • Increasing demand in the market targeting our high- performance feed, functional products and services. Market share have increased considerably. Ercilla , Chile • Medio 2019 BioMar Group and AquaChile entered into an acquisition agreement giving BioMar full ownership of the Chilean factory Alitec Pargua, • With 3 fully owned factories in Chile we are ready to service and drive the development in this important market. Castro , Chile Volume kT CAGR +4% 1.500 1.460 1.420 1.350 1.290 Market Volume 19 2018 2019 2020 2021 2022

Latest Moves Building a factory in Tasmania Construction of a feed factory in Tasmania - capacity of 110.000T of feed yearly A 5 year agreement signed with Huon for supply of feed Start of commercial production in Q1/Q2 2020, also for species like Barramundi, King Salmon etc.. Furthermore South East Asia is also reachable from our factory. Other species than Atlantic salmon in Australia UK Distance between Factories King (chinook) salmon Yellowtail kingfish ~ 15 000 km. Australia Barramundi Rainbow trout