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Marine Harvest Seafood Investor Forum London 19 November 2013

Marine Harvest Seafood Investor Forum London 19 November 2013. Implied protein consumption driven by population growth only. Assumption: Constant consumption of protein per capita .

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Marine Harvest Seafood Investor Forum London 19 November 2013

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  1. Marine HarvestSeafood Investor ForumLondon 19 November 2013

  2. Implied protein consumption driven by population growth only Assumption: Constant consumption of protein per capita Sources: FAO (2009); FAOstat Food Balance Sheets, United Nations population data; World PopulationProspects: the 2012 Revision

  3. Farmed Atlantic salmon relatively small Atlanticsalmon Sources: OECD-FAO Agricultural Outlook 2013 KontaliAnalyse

  4. Large opportunities within aquaculture species Source: Kontali Analyse

  5. Examples of protein co’s and area of potential

  6. A uniquenutritionalpackage Proteins: Omega-3: Vitamins: Mineral: High quality, easydigestable proteins High contentof Omega-3 fatty acids Rich in A, D og B12 vitamins High contentofiodine & selen, taurin og sterols

  7. Farmed salmon - Highly efficient use of resources

  8. Value CAGR of 8% - Volume CAGR of 6%

  9. Historic price–volume relationship • Both 2012 and 2013 clear outliers compared to historical relationship Source: Kontali Analyse

  10. 2014 growth expected between -1% and 5% • Growth in 2015 alsoexpected to be moderate

  11. Tough biological conditions in Chile…. • Weighted average EBIT/kg for selected listed companies in Chile and Rest of World

  12. …leads to strong cost increases… • Weighted average EBIT/kg for selected listed companies in Chile

  13. …and declining yields per smolt for the industry • Cannot rule out unprofitable operations next few years • Slight decline in industry volumes expected in 2014 Source: Sernapesca

  14. MHG - Total numberofsealicetreatments in Chile

  15. Expectations for new Norwegian government • Initial signals implies more liberal licensing regime • Introduction of average Maximum Allowed Biomass constraints • Assessment of current licensing system in general • This may lead to increased biological risk and reduced sustainability • Marine Harvest perceives this as a threat due to the industry’s dependency of a well regulated and sustainable framework • Marine Harvest’s recommendation: • Continuation of current system with maximum allowed biomass • Predictable annual capacity increase of 3-5% for ten years if deemed sustainable • Aquaculture Stewardship Council (ASC) certification should be encouraged • Establishment of Aquaculture Directorate to secure uniform approach • Proceeds from increased capacity directed to host communities

  16. MHG – Leading position across the value chain Marine Harvest business areas Feed Farming Sales/VAP #1 #1 New Position: 220 thousand tonnes vs. global production of ~2.6m 405 thousand tonnes vs. global production of c.1.85m (22%) Global sales network Leading position in VAP Successful construction and implementation by July 2014 Acquisitive growth in Norway and Chile Integration of Morpol Restructuring programme in VAP Organic growth in VAP Focus areas:

  17. Fish feed project proceeding according to plan • 220 thousand tonnes capacity – 60% of MHG requirement in Norway • ~NOK 800m investment - Completion July 2014

  18. Marine Harvest farming regions Norway Region North Volume: 62 000 Norway Region Mid Volume: 59 000 Faroe IslandsVolume: 9 000 CanadaVolume: 28 000 Norway Region West Volume: 77 000 ScotlandVolume: 50 000 Norway Region South Volume: 56 000 IrelandVolume: 8 000 ChileVolume: 56 000

  19. MHG – Volume recovery from drop in 2013

  20. Marine Harvest sales & marketingstructure • America, Sales & Marketing: • VAP Processing: 13,400MT finished product, turnover 1,0BN NOK • VAP Processing: USA & Chile • Sales to retail, food service and industry • 485FTE • Sales Office in: Miami, LA and Puerto Montt(Chile) • Asia, Sales & Marketing: • Sales 1,1BN NOK. 25,000MT finished products • VAP Processing: Tokyo & Shanghai • 115FTE • Sales Office in: Japan, China, Korea, Taiwan, Thailand and Singapore • Europe, Sales & Marketing: • VAP Processing: 60,000MT finished product, turnover 4,5BN NOK (VAP) • VAP Production: France, Belgium, Holland, Poland, Czech Rep • 2500FTE • Sales to retail, food service and industry • Sales office: France, Belgium, Spain, Italy, Czech Rep, Norway, Scotland and Ireland Note: Figures in Europe excluding Morpol

  21. Morpol – Competition clearance obtained • Major step in becoming a leading integrated protein player • The leading secondary processing entity in Europe • Complementary market position to Marine Harvest • ~30 thousand tonnes HOG farming assets • ~18 thousand tonnes in Orkneys and Shetland to be divested • ~12 thousand tonnes to be integrated Norway and Scotland • Location in Northern Norway where MHG is not currently present • Well positioned for further licences in this region in 2013 licencing round • About 4,000 employees

  22. Outlook • Strong market poses attractive 2014 net cash flow opportunity • Forward prices of NOK 38 per kg in 2014 and 35 in 2015 • Significantly reduced level of investment • Strategic focus areas • Successful development of green-field feed capacity • Acquisitions in Norway and Chile • Integration of Morpol • Expected impact from the higher than normal investments in 2013 • 65 000 tonnes increase in 2014 harvest volumes • Significant feed capacity in Norway from 2H 2014

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