Schouw & Co. — Investor Presentation 2017

Jun 2, 2017

BioMar acquires Ecuadorian shrimp feed manufacturer Alimentsa

Investor Presentation

2 JUNE 2017

Strategic logic in entering shrimp feed

Ecuadorian shrimp farming

• With about 450k t shrimp produced in 2016, Ecuador is among the global Top 5 shrimp producing countries
• About 95% of production is white-leg shrimp (Vannamei)
• Ecuadorian shrimp are positioned as high-end products
• The majority of the production is exported (US, EU, Asia)
• Ecuador has optimal biological conditions for shrimp farming with up to three production cycles per year
• Farming densities in Ecuador are low compared to e.g. Asian shrimp farming
• Significant potential for growth in Ecuadorian shrimp industry; 8-12% annual growth expected in the coming years
• The feed industry is led by four major players representing about 75% of the market
• Both the farming industry and the feed industry have historically been profitable

Shrimp industry in Ecuador Shrimp farming areas in Ecuador

4

Acquisition of Alimentsa

Alimentsa at-a-glance

• Ecuadorian top 4 feed producer
• Market share 10-15%
• Founded 1986 by Danish/German families
• Founders are still main shareholders
• Capacity of ~110k t pelletised shrimp feed
• Complete line of feed products; from starter to harvest and speciality products
• Strong technical setup; 3 training centres
• More than 300 customers in Ecuador
• Strong management with solid track-record continues under BioMar's ownership
• 2016 revenue USD 75m and solid profitability
• 145 employees

Transaction details

• Acquisition of 70% of the company
• Valuation (EV 100%) USD 170m
• EV/EBITDA17E transaction multiple of ~9.4x
• Subject to customary approvals
• Closing expected autumn 2017 i.e. limited effect on financials in 2017 (except payment of USD 119m)
• Likely 2018 effect before minorities and PPA: Volume ~85k t, revenue DKK +500m, EBIT DKK +110m

Long-term synergies

• Leverage from BioMar's knowledge/setup in salmonids
• Development/introduction of functional shrimp feed; e.g. performance, efficiency, health benefits, sustainability, food safety, traceability and other concepts
• Optimise sourcing platform and raw material usage
• Cross-utilise with shrimp feed production in Costa Rica