Grieg Seafood (GSF) Capital Markets Update 2018 presentation summary

Growth and financial targets

• Targeting 100,000 tonnes harvested in 2020, from 62,598 tonnes in 2017, with cost at or below the industry average.

• 2020 cost target NOK 37.90/kg versus estimated weighted industry average of NOK 38/kg.

• 2017 baseline: cost NOK 43.4/kg, ROCE 24%, equity ratio 47%, and NIBD/harvest volume NOK 20.5/kg.

• Dividend policy targets 25%-35% of net profit after tax, adjusted for fair value appraisals; 2017 dividend was NOK 2/share with a 34% payout ratio.

Sustainable production and biology

• Strategic priorities include sustainability, larger post-smolt, digitalization, biosecurity and fish welfare, and expansion opportunities.

• Average smolt size in Rogaland targeted to rise from 90g in 2014 and 150g in 2017 to 500g in 2020, supporting productivity and lower costs.

• Larger post-smolt is intended to shorten seawater production time, free sea capacity, reduce active sites and biological exposure, and improve survival.

• Fish-welfare targets include survival above 93% in all regions and an average of no more than 0.5 adult sea lice per salmon.

• Sustainability strategy rests on five pillars: sustainable value chain, profitable growth and productive oceans, good jobs for everyone, sustainable innovation, and local value creation.

Digitalization and operational improvement

• Precision farming applies sensors, big data, AI and automation to improve decisions, yield and resource efficiency.

• Digital initiatives included a Rogaland integrated operations-center pilot, real-time cage sensor monitoring, satellite and water-sample analysis in British Columbia, and an IBM Watson feed-conversion project.

• Feed optimization combines feeding-system and environmental sensor data with salmon growth samples to adjust feeding profiles in real time and target improved feed conversion.

• The GSF 2020 improvement program sets regional targets, tracks monthly progress and initiates corrective actions when performance deviates.