Outlook for Asian demand Klaus Hatlebrekke, COO 2 March 216
Agenda: Royal Salmon in brief The Asian potential Regional development
Attractive farming regions Founded in 1992 15 employees Listed on Oslo Stock Exchange March 211 REGION NORTH NRS Finnmark (19) Nord Senja Laks (6) Nor Seafood (4) Farming 35 licenses regions Region North 29 licenses Region South 6 licenses Volume 216E: 27 5 tonnes Associated companies with 1 licenses Trading Salmon fresh and frozen 95% export >5 countries Volume 215: 7 tonnes < 8% in region north REGION SOUTH NRS Feøy (6) Head office Royal Salmon ASA Sales office Royal Salmon ASA 3
Volume development for NRS 8 7 6 External Volumes NRS-Farming 57 5 62 2 59 1 7 8 7 6 5 4 3 2 1 49 5 5 5 47 2 45 5 42 1 39 5 37 35 5 36 5 36 7 32 39 39 5 4 7 27 9 35 1 25 2 32 3 21 22 4 18 5 1 5 3 2 4 4 6 6 5 26 27 28 29 21 211 212 213 214 215 5 4 3 2 1 4
Gutted weight N O RWAY ROYA L S A L M O N Green licenses is a growth catalyst for NRS 5 45 45 4 35 3 28 27 5 25 2 18 5 21 25 2 22 4 15 1 5 4 4 6 6 5 1 5 27 28 29 21 211 212 213 214 215E 216E Capacity
NRS green focus N O RWAY ROYA L S A L M O N Royal Salmon has received ASC (Aquaculture Stewardship Council) certification for five more of our farming sites last week 9 % of biomasses at NRS Finnmark is certified, and in a few years most of NRS production will be ASC certified NRS aims to be one of the leading ASC certified salmon companies in the world We want to meet the growing demand while minimizing environmental and social impacts
Agenda: Royal Salmon in brief The Asian potential Regional development
Annual increase in middle class pr year (29-22) The global middle class is estimated to grow with 12-13m people annually in the period 29-22 according to OECD. +6m annuall y +2m annuall y +5m annuall y +11m annually Source: SB1 Markets and OECD data.
peoples (M) N O RWAY ROYA L S A L M O N Global middle class growth. Look at Asia!! 6, 5, Global Middle Class: OECD 21 numbers 4,884 4, 3,249 3, 2, 1, 1,845 525 1,74 3,228 Source: SB1 Markets and OECD data. 29 22 23 North America Europe Central and South America Asia Pacific Sub-Saharan Africa Middle East and North Africa
It s mainly raw consumption
Europe Asia N O RWAY ROYA L S A L M O N Sizes per region 4, % Weight distribution for Atlantic Salmon 35, % 3, % 25, % 2, % 15, % 1, % 5, %, % 1-2 kg 2-3 kg 3-4 kg 4-5 kg 5-6 kg 6-7 kg 7-8 kg 8-9 kg 9+ kg
Agenda: Royal Salmon in brief The Asian potential Regional development
Stable development in 215 vs 214 3 ASIA Fresh and frozen volumes (Jan-Okt) 25 2 15 1 5 28 29 21 211 212 213 214 215 ASIA Source: Norwegian Seafood Council
ASIA Fresh volumes (Jan-Okt) ASIA Frozen volumes (Jan-Okt) 18 14 16 12 14 12 1 1 8 8 6 6 4 4 2 2 28 29 21 211 212 213 214 215 28 29 21 211 212 213 214 215 ASIA ASIA Source: Norwegian Seafood Council
Trade barriers is affecting Greater China 12 Greater China Fresh and frozen volumes (Jan-Okt) 1 8 6 4 2 28 29 21 211 212 213 214 215 Greater China Source: Norwegian Seafood Council
Greater China Fresh volumes (Jan-Okt) Greater China Frozen volumes (Jan-Okt) 7 6 6 5 5 4 4 3 3 2 2 1 1 28 29 21 211 212 213 214 215 28 29 21 211 212 213 214 215 Greater China Greater China Source: Norwegian Seafood Council
Indonesia Fresh volumes (Jan-Okt) Indonesia Frozen volumes (Jan-Okt) 2 5 1 9 2 8 7 1 5 6 5 1 4 3 5 2 1 28 29 21 211 212 213 214 215 28 29 21 211 212 213 214 215 Indonesia Indonesia Source: Norwegian Seafood Council
South Korea Fresh volumes (Jan-Okt) South Korea Frozen volumes (Jan-Okt) 12 14 1 12 8 1 8 6 6 4 4 2 2 28 29 21 211 212 213 214 215 28 29 21 211 212 213 214 215 South Korea South Korea Source: Norwegian Seafood Council
Middle East Fresh volumes (Jan-Okt) Middle East Frozen volumes (Jan-Okt) 2 2 18 18 16 16 14 14 12 12 1 1 8 8 6 6 4 4 2 2 28 29 21 211 212 213 214 215 28 29 21 211 212 213 214 215 Middle East Middle East Source: Norwegian Seafood Council
Israel Fresh volumes (Jan-Okt) United Arab Emirates Fresh volumes (Jan-Okt) 1 7 9 6 8 7 5 6 4 5 4 3 3 2 2 1 1 28 29 21 211 212 213 214 215 28 29 21 211 212 213 214 215 Israel UAE Source: Norwegian Seafood Council
Raw consumption is driving a positive underlying demand in Asia. Strong demand in the Middle-East for both fresh and frozen products. has a strong position in fresh products. Chile is dominant in frozen mainly due to price. Trade restrictions to some Asian regions/countries is affecting volumes. A political solution is needed towards China/Indonesia.
N ONORWAY R ROYAL R OYA SALMON L S A L M O N