November 21, 2017 Good Northern Pelagic Catches North: - PowerPoint PPT Presentation

November 21, 2017

Good Northern Pelagic Catches North: Normalization of temperatures at sea; abundant biomass near Iquique; low costs. Thousands of tons 140- 145 52 49 34 18 34 11 7 5 1 2016 2017 2016 2017 2016 2017 2016 2017 E 2016 2017 E Q1 Q2 Q3 Q4 Year Northern catches include own and third parties Industrial anchovy catches (after H2 ban) Catches at the end of the 100% 100% 100% 73% 25% 100% E X% year with respect to the 77 annual quota 55 52 40 21 4 2012 2013 2014 2015 2016 2017 E Affected by El Niño 2015-2016 Company’s estimations are based on current information, which could change due to deviations 2

South-Central Pelagic Catches J. Mackerel: Normal fishing conditions vs very favorable conditions in 2016. Sardine: Normalization in 8th region. Third parties catches doubled as of September. Jack Mackerel Thousands of tons Sardine (own) 110-115 106 Sardine (third parties) 12 57 50 23 2 28 22 10 21 8 2 31 4 8 4 45 17 35 14 11 9 3 3 7 1 3 2 2 2016 2017 2016 2017 2016 2017 2016 2017 E 2016 2017 E Q1 Q2 Q3 Q4 Year Company’s estimations are based on current information, which could change due to deviations 3

Fishmeal Price As of September, prices down due to higher quotas and catches in Peru. US$ / ton (Camanchaca) Peru’s Fishing Quota (North-Centre Region): Nov to Jan: May to Jul: May to Jul: Nov to Jan: Nov to Jan: May to Jul: 1.5 M Ton Nov to Jan: 2.6 M Ton 1.1 M Ton 1.8 M Ton 2.0 M Ton 2.8 M Ton (starting: Nov 23) No quota (98% catched) (99% catched) (51% catched) (98% catched) (85% catched) 2,247 Prime Fishmeal Price (Chile) 2,013 IFFO week 45 1,850 1,844 2017 1,760 1,676 1,613 1,592 1,570 1,551 1,490 1,471 1,425 1,384 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 1,600 1,404 1,780 4

Camanchaca Diesel Price (US$/lt) Diesel Oil Price (US$ / lt) 0.84 0.84 0.82 0.70 0.54 0.54 0.49 0.44 0.43 0.42 0.41 0.41 0.39 0.37 0.30 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 As of September 2017: • At constant volume, increased fuel costs of US $ 1.3 million vs 2016. • Fuel cost is approx. 15% of the total cost of fishmeal production (anchovy and industrial sardine). 5

Stocks (valued at cost) As of September, decrease of fishmeal inventories (US$ 1,095 / ton). Increase in mussels (US$ 2.5 / kg) compared to September 2016 September 30, 2017 December 31, 2016 September 30, 2016 December 31, 2015 Months of VOLUME ThUS$ VOLUME ThUS$ VOLUME ThUS$ VOLUME ThUS$ Production SALMON Atlantic Salmon (Tons) 3,560 2.1 32,229 2,595 23,763 3,676 32,471 7,458 42,198 Salmon Total 32,229 23,763 32,471 42,198 FISHING Fishmeal (Tons) 2,703 0.6 2,960 1,235 2,098 3,908 5,014 5,793 6,937 Fish oil (Tons) 407 0.3 463 38 353 291 511 846 1,896 Frozen Jack Mackerel (Tons) 5,390 6.5 2,064 31 16 1,045 535 1,185 694 Canned Fish (thousands of boxes) 569 6.8 7,028 449 5,719 736 9,368 43 664 Langostino Lobster (Tons) 153 3.1 2,133 92 1,180 229 2,742 225 2,824 Fishing Total 14,648 9,366 18,170 13,015 OTHER SEAFOOD Mussels (Tons) 3,401 4.1 8,470 3,094 5,275 2,317 4,578 2,280 5,304 Abalone (Tons) 56 3.4 1,370 79 1,788 80 1,644 86 1,969 Scallops (Tons) 0 0 0 5 51 12 177 19 157 Other Seaafood Total (Tons) 9,840 7,114 6,399 7,430 COMPANY TOTAL 56,717 40,243 57,040 62,643 6

Atlantic Salmon Price Normalization in prices due to higher Chilean harvests in H2 with an estimated increase of ~4% in world supply in 2017. Lower harvests in Q1-17 due to Bloom 2016 and lower smolt stocking in 2015. Price (US$ / Kg WFE) Harvest (Thousands of Tons WFE) 2017 2016 6.5 Δ +16% 7.5 5.6 7.1 6.8 Δ +29% Δ +5% 6.5 6.2 5.8 Δ +69% 4.2 34 33 16.0 9.1 9.0 7.8 7.9 6.7 5.3 4.8 E E Year Q1 Q2 Q3 Q4 Company’s estimations are based on current information, which could change due to deviations 7

Atlantic Salmon Price: Long-term trend Large devaluation in major Urner Barry Equivalent Trim C 2-3 (US$/Lb) markets and non-tariff restrictions Algae bloom Overshooting recovery ISA Virus post ISA 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 nov-17 jan-04 jul-04 jan-05 jul-05 jan-06 jul-06 jan-07 jul-07 jan-08 jul-08 jan-09 jul-09 jan-10 jul-10 jan-11 jul-11 jan-12 jul-12 jan-13 jul-13 jan-14 jul-14 jan-15 jul-15 jan-16 jul-16 jan-17 jul-17 Δ supply (Source: ABG Sundal Collier): 5% 4% 2% 10% 7% -2% -1% 12% 22% 2% 9% 4% -7% 4% E 8

Chilean Salmon Price Expectation until Sep-18 Urner Barry Trim C 2-3, market spot USD/Lb 6.50 6.00 5.50 5.00 4.50 4.00 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Fishpool Index Forwards Based Model Adjusted By: • Seasonal Historical Demand in the USA • US vs European salmon offer growth differences • Estimates subject to supply and demand fluctuations Source: Kontali, Fishpool, own analysis 9

Atlantic Salmon: Return of the raw material (relative performance) Camanchaca vs Market (Salmonex, January 2015 = Base 100) Urner Barry Salmonex Camanchaca 200 180 160 140 120 100 80 60 40 20 0 Sep-17 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Lag in months with strong spot price increases (Mar - Jun 2016 and Jan - Feb 2017) As of September 2017: Camanchaca’s return exceeds Salmonex (+23 cent) and Ubarry (+33 cent) indices 10

Salar Stocking in Chilean Industry Salar Stocking January to September (mill. of smolts), 10th, 11th and 12th región 106 +4% 104 +5% 101 100 100 100 80 2012 2013 2014 2015 2016 2017 Source: Undersecretariat for Fisheries and Aquaculture 11

Salar Stocking and Stocking Plans: 10th and 11th regions Salar Stocking previous cycle vs post new regulation cycle (mill. of smolt) Previous Cycle Current Cycle +9% (same neighborhoods) (considers new regulation) 156 25.0 143 20.0 15.0 Considers neighborhoods opened between Sep-16 and Sep-17 10.0 5.0 0.0 Total Source: Undersecretariat for Fisheries and Aquaculture 12

History and Projection of Harvests and smolt stocking in Camanchaca Harvests (Thousands of Tons WFE) Atlantic salmon from current active sites Atlantic salmon from previously leased sites Trout 64 64 58 58 56 51 43 41 39 36 2014 2015 2016 2017 E 2018 E 2019 E 2020 E 2021 E 2022 E 2023 E Includes one third of the trout harvests originated by the joint venture business started in 2016 Salar smolt stocking (mill. smolt) 11.9 11.3 9.8 8.9 8.4 8.0 2014 2015 2016 2017 E 2018 E 2019 E Estimate in November 2017 subject to variations due to future strategic decisions of the Company, changes in regulation, state of sanitary conditions or any other event not contemplated with the information available to date 13

Salar Health Conditions in Camanchaca (closed cycle) Q1-16 affected by harmful algae bloom (HAB) event. Favorable sanitary conditions starting in Q2-16 Mortality 2015 2016 2017 64.3% 36.8% 19.2% 14.2% 12.9% 10.9% 9.5% 8.7% 9.0% 7.0% 5.5% 5.4% 5.4% 5.5% 4.2% E E Q1 Q2 Q3 Q4 Year Economic Feed Conversion Ratio 2.87 1.66 1.58 1.38 1.35 1.36 1.35 1.35 1.30 1.33 1.25 1.23 1.26 1.21 1.20 E E Q1 Q2 Q3 Q4 Year Company’s estimations are based on current information, which could change due to deviations 14

Atlantic Salmon Costs Q4-15 and H1-16 affected by SRS and low oxygen conditions in the 10th region. Q2-17 affected by harvests coming from third-party-hatchery smolts. Q3-17: downward costs. Atlantic Salmon - Liveweight ex-cage cost (US$ / kg) Feed OPEX Smolt Labor Medicine Others 3.75 3.66 3.34 3.13 3.08 3.09 3.02 2.95 2.92 2.79 2.79 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 3.01 3.31 Company’s estimations are based on current information, which could change due to deviations 15

Development of Atlantic Salmon Margins Back to positive margins in Q2-16 increased in H2-16 Q2-17 affected by harvests coming from third-party-hatchery smolts Raw Material Cost and RMP (Raw Material Return) 11th region sites 10th region sites Base 100 = RMP January 2014 130 Leptepu Puelche Leptepu Puelche Licha Cahuelmó Cahuelmó Forsyth 120 Licha Ahoní |Ahoní| Johnson 2 Contao 110 Pilpilehue Lamalec Loncoch. |Pilpileh.- Mañihueico Marilmó 100 |Maril.| Cabudahue Izaza Islotes |--Izaza--| Porc. Puerto Arg. Islotes 90 Edwards |Porc.| |P. Arg.| |--Edwards--| F.Largo 80 |F.Larg.| 70 60 50 Dec-17 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 RM cost before processing RMP 16

Development of Atlantic Salmon Margins EBIT (US$/Kg WFE) before Fair Value in the Salmon business Atlantic Salmon Business EBIT without trout joint venture 3.0 2.5 2.0 1.29 1.5 0.91 1.0 0.50 0.5 0.0 -0.24 -0.5 -1.0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 0.64 -0.10 0.72 1.67 0.63 1.30 Atlantic Salmon Business includes other Revenues and Costs due to services and sales to third parties, and intercompany salmon sales to our offices abroad. 17