Management Presentation Forming a Leading European Aquaculture - PowerPoint PPT Presentation

Management Presentation Forming a Leading European Aquaculture Business “triton aquaculture GmbH” September, 2007

Management Team Otto Maier Maurizio Grispan Ulrich Höhberger Carlo Dalla Rosa Sigurd Späth Denis Pece CSO (Sales) Head of Trout & CEO Head of Caviar Product Head of Sea bass / bream Controlling, Production Management Production Production Italy Finance, Legal Croatia Consulting Board Gruppo Pizzolo (the Seller) Robert Gabriel Paolo Brazzalotto CFO 2

Agenda Gruppo Pizzolo – the Seller Overview of “triton aquaculture GmbH” Business units Sites & biomass Strengths & Challenges Distribution & Marketing Group Financials Next Steps & Timetable 3

History of carved-out businesses Italy Diversified white-label group 1860 1930 1970 1991 1998 Group entered into the Mr. Antonio Pizzolo Consolidation of Incorporation of ASA Srl fish business , through starts his agricultural agricultural activities Start of the cow a company initially the acquisition of activities in southern and entry into the wine business dedicated to animal Gruppo Ferretto Verona business feeding (holding Nuova Azzurro) Forward integration to secure sales of fish feed business 1998 1999 2003 2005 2005 On 30 June 2005 On 30 June 2005 Nuova Azzurro, Mare ASA acquired 24,88% Nuova Azzurro merged Start up of sturgeons Purchase of Cenmar Service and SGM have of Mrimirna (sea brass / through incorporation business in Calvisano through Marimirna been merged through bream) into ASA - Disposal of incorporation into Città Ducale farm Nuova Azzurro Entering Expand Entering Croatia Croatia Caviar 2006 2007 2005 2007 Signed a debt Carve out by ASA of Purchase of additional restructuring plan the caviar business investment in Cenmar First sale of caviar with a pool of banks to contributed to a (30,5%) directly by obtain new bridge Newco, Cavial Srl ASA refinancing Source: Financial Book (PWC) Ongoing corporate reorganization 4

Overview Gruppo Pizzolo SPA – “the Seller” Revenues by Business Segment 2006 Key Financials 2005-2006 Carved-out assets 13% Source: Financial Book (PWC) 5

Overview carved-out Aquaculture Assets 4 trout farms 1 sea bass / sea bream farm 1 Bio trout farm 1 caviar farm Currently significant minorities in Croatia. However buy-out terms 1 sea bass / agreed, heads of sea bream farm agreement signed so that 90 % of business will be owned by NewCo pre-closing 2 sea bass / sea bream farm Source: Financial Book (PWC) 6

Key Financials (Carved-out businesses) Key performance indicators All businesses Sea bass / Sea bream 1 Trout Caviar Consolidated with excellent 2006 05/2007 2007 2006 05/2007 2007 2006 05/2007 2007 2006 05/2007 2007 (in m€) performance, Total Sales 14.833 5.587 15.920 6.822 7.228 2287 7.372 1.840 3.178 791 5.564 19.245 22.203 8809 26.470 Caviar business EBITDA 3.238 1.769 3.884 -303 191 -148 611 194 507 162 2.025 2.120 3.624 1783 5.000 started to produce sales Sales growth 18% n.a. 7% 6% n.a. 2% 73% n.a. 75% 15% n.a. 19% in 2006 EBITDA margin 22% 32% 24% 3% -6% 8% 16% 20% 36% 16% 20% 19% Volume (tons) 2.147 n.a. 2.261 2.575 794 2.509 2,5 122,0 4,0 4.725 n.a. 4.774 Trout business Avg. Selling price (€/kg) 5,77 6,07 6,28 0,00 2,88 0,00 423,60 569,30 561,85 n.a. n.a. n.a. restrained due 1) Italian & Croatian Business Units combined to lack of Transaction processing and Perimeter distribution Sales by BU 2007 EBITDA by BU 2007 12% 10% 12% 28% 60% 78% Sea bass/bream Trouts Caviar Sea bass/bream Trouts Caviar 26,470 m€ 5,000 m€ Source: Financial Book (PWC) 7

Overview carved-out Assets Inventory (May 31st, 2007) Trouts 10.883 Sea bass / bream Italy 13.057 Caviar 21.372 Italy (gross) 45.312 Inventory provisions 762 Italy (net) 44.550 Croatia 9.241 Total (net) 53.791 Source: Financial Book (PWC) 8

Agenda Gruppo Pizzolo – the Seller Overview of “triton aquaculture GmbH” Business units Sites & biomass Strengths & Challenges Distribution & Marketing Group Financials Next Steps & Timetable 9

Ulrich Höhberger (52), CEO � More than 25 years of experience in corporate management with significant exposure to the food sector � More than 15 years as interim manager with focus on turnaround, succession and strong growth / expansion phases � Focus on controlling and legal, as well as production; expanding and efficiency improvement; having implemented traceability systems � Pan European radius of action, in recent years with a focus on Eastern European countries � Currently running a German food supplier with production in Germany, Czechia and Russia (sales > 40 €m; 100 employees) � Advising the Croatian government on planning EU landings zones for wild fish � Previous employers include Rheinmetall AG and ROI Management Consultants AG, His majesty the Royal of Liechtenstein, et.al. � Degree Diploma, qualified engineer, Food Engineering (Weihenstephan) and MBA in Finance (Wales/Hagen) 10

Overview We offer an investment opportunity in one of the strongest growing segments of food production Sales 2007 FC � Five of the largest freshwater fish farms in Europe 7.4 m€ � One caviar producer in Italy making money today 3.2 m€ � One big on-shore aquaculture facility in central Italy 6.4 m€ � 50 % of Croatian mariculture, an emerging market in Europe 9.6 m€ � A fully operational European sales organization 9.0 m€ We invite you to watch a movie about these assets 11

12 Overview Movie

Sigurd Späth (38) � Category Manager at Deutsche See GmbH, responsible for a buying volume in the mid double-digit € millions range � Prior to that, working in sales to wholesalers, retailers as well as restaurants, hotels and caterers � Created and introduced brand „Select“ for Deutsche See GmbH and developed the market for top restaurants � Extensive expertise in logistics, production and quality control (e.g. HACCP) � Degree Diploma, agricultural economics (Technical University Munich) & Master Science of Ichthyology (Humboldt University of Berlin) 13

Overview Investing in one of the biggest Aquaculture businesses We are investing in: The largest trout farms in Europe (Bussi, Osoppo) The largest Bio trout capacity in Civitavecchia (Sea bream/bass) Croatia (Sea bream/bass) Rivodutri (Bio trouts) Europe One of the largest sturgeon farms in Europe The most modern sea bass / sea bream hatchery in Europe Popoli (Trouts) Calvisano (Caviar) Bussi (Trouts) Rivoli di Osoppo (Trouts) Colli (Trouts) 14

Overview Located in the largest EU markets Top 9 countries out of EU-27 in consumption of fish � NewCo is located in the EU, one of the world's largest seafood markets 2,500 � The Company has produc- 2,000 illion tonne tion facilities/processing 1,500 1,000 and sales in the largest M 0,500 markets 0,000 France Spain Italy Germ any N etherlands Poland U K Portugal Greece Other � Except for the UK and Scandinavia, both competitive market-place Delivered by new company today � In addition serving Eastern Not yet delivered Europe, which is catching Other 18 countries with 5 of them being delivered up to Western European consumer behavior quickly Source: Management - Convenience food - Processed fish 15

Overview Fastest growing per capita consumption in the biggest markets NewCo’s 35 +7% target markets show 30 a growing +8% +20% +9% consumption 25 +5% per capita 20 +15% 15 10 5 Source: FAO 0 Germany France UK Italy EU-15 EU-27 average average 1994 2005 � Fish consumptions is the highest growing compared to other protein resources like cattle, poultry etc. � Developed countries have become more aware of the benefits of healthy and ecologically friendly food � “Bio” is the mega trend in the food sector - fish is on the verge of being the next “big thing” in Bio products � Food production / processing scandals or health issues (e.g. BSE, Asian Flu) – need for full traceability � Rise in consumption of convenience products as consumers have less and less time to spare for meal preparation 16

Overview Declining wildcatch while growing aquaculture of more than 5 % in the EU EU wild capture 8 � Wild capture is declining 7 because of 6 Million tonnes - Diminished fish stocks 5 - Stricter fishing policy 4 and environmental 3 laws 2 1 - Reduced fishing fleet 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 EU aquaculture � Aquaculture production is 1.600.000 1.400.000 strongly growing with over 1.200.000 5 % per year in the EU kg per year 1.000.000 (worldwide growth >10 %) 800.000 600.000 400.000 � Production value in 2006 200.000 was about 4.8 billion € 0 2000 2001 2002 2003 2004 2005 2006 2007 Freschwater species Maritim species Source: FEAP 17