Olav Jamtøy CEO

Life Sciences Enterprice since 1996 with utilization of DNA technology into commercial breeeding program

Business areas: 1. Knowledge based – consultancy services and products:

Breeding services - providing breeding services to public or private organizations wanting to develop genetic resources and to engage in long term programs for breeding and stock performance improvement.

DNA verifiable traceability

2. Tilapia Value chain:

• Genomar Supreme Tilapia (GST) - commercialization of superior tilapia brood stock and fingerlings.

• Integrator: Trapia – integrated value chain in tilapia

From life science to integrated aquaculture operation

Operations:

Norway: - HQ - RD + Cooperation with life science Universities

Asia: Philippines: - GST -Breeding Nucleus, BFP , small scale fingerling/juvenile supply China: - GST multiplier , hatchery & nursery large scale fingerling supply Malaysia: - Trapia – Integrated value chain – hatchery, nursery, grow-out,processing & sales Singapore: - Regional support & market development Main operations in Asia

Challenges in Fish Farming

• High mortality

• Sexual maturation for spawning

• FCR

• Fish health and diseases

• Efficiency of production

• Sex ratio

• Broodstock management-genetic diversity

Most of these traits can be much improved!

Opportunity for continous improvements by genetic gains

Breeding services

Long term genetic gains

• Atlantic salmon: over 4 generations of breeding services for various traits, Growth, fillet color, disease resistance, etc.

GenoMar Breeding Activities

New selection can be done every 3-4 year

GenoMar Breeding Activities

• Tilapia: over 12 generations of selective breeding for growth, fillet yield and stress tolerance,

Selection of a new generation every year !

R=h2*S R=h2*S

GenoMar’s technology increases genetic gains

1st generation 1st generation

Traditional breeding program with a small population size and low selection pressure.

GenoMar breeding program with a big population size and high selection pressure.

2nd generation 2nd generation

Selected breeders Selected breeders

Separated rearing of families until physical tagging limits the population size.

GenoMars DNA markers allow communal rearing of families and greatly increased population size.

Low to moderate genetic gain High genetic gain

High genetic gain - save operational breeding costs

Genopass™

Ultimate tool to verify if a storyline (document based traceability) is true;

DNA cannot be faked;

Non-GMO technology;

Total consumer confidence;

Setting a new standard in food safety.

Verifiable 100% Traceability

GenoMar – Value Chain

Multipliers Hatchery Grow-out Processing Retail

GenoMar

Supreme Tilapia

Genopass DNA-verified traceability

Trapia branded value-added products

Importing

company

Breeding Nucleus

Multipliers Hatchery Grow-out Processing Importing company

Retail Consumer market

Safe , Sustainable, Traceable

GenoMar Supreme Tilapia (GST)

Partner in the GIFT project (Genetic Improvement of farmed Tilapia) -Continued with the GIFT broodstock from the G9

Being based on 22 generations of state of the art selective breeding and an optimal founder population with very high genetic robustness;

The GST represents most likely the internationally most genetically advanced tilapia broodstock.

GST - value chain

22 generations of selection.

High genetic diversity.

Selection for fast growth, high fillet yield and stress tolerance

Full pedigree.

Low inbreeding, around 0.25% per generation.

Probably the best genetic tilapia O. niloticus broodstock in the world

GenoMar Achievements in Asia

• Development of GST – leading tilapia strain

- 2010 - 180 culture days from 20 – 900 gr

- 2011 - 155 culture days from 20 – 900 gr

- 2012 - 125 culture days from 20 – 900 gr Results from commercial cage farming harvesting 40 ton/cage

• Utilization of genetic gains

• Improvement in feeding management

• Fish health - improvements

GST – fast growing

Tilapia – growth 1 kg

Example - improvement of growth - genetic gain A B

Culture days 200 150 Reduced due to genetic improvement

Crops year 1,83 2,43 Increase due to reduced culture days

Survival 60 % 70 % Increase due to lower explosure (culturedays)

FCR 1,7 1,5 Higher survival = reduced FCR

standard production in 1x 2000m3 cage @ 20kg/m3 40 000 73 000 97 333 Effect of reduced culture days

Feed price

Production cost (USD/kg) facility A 1,5

Farmgate price (USD/kg): 2,0

Revenue - farmgate USD - kg 146 000 194 667

Cost structure - Facility A B

Feed cost 1,05 76 650 89 060 0,92

Juvenile cost 0,15 10 950 12 167 0,13

Other variable cost 0,15 10 950 14 600 0,15

Fixed cost 0,15 10 950 9 733 0,10

Sum cost USD / KG 1,50 109 500 125 560 1,29

Profit - USD / KG 0,50 36 500 69 107 0,71

Profit margin 25 % 36 %

Extra profit B vs A for a standard cage 2000m3 per year - USD 32 607 0,21

89 %

High profit from genetic gains in growth

Impact of fillet yield

Value of Increased fillet Yield A B

Annual volume - farm gate 1 000 000 1 000 000

Price - farmgate - USD/Kg 1,50 1,50

Fillet yield - DS fillet 33 % 35 %

Price - fillet ex / factory USD / kg 6,5 6,5

Fillet volume 330 000 350 000

Raw -matr cost per kilo fillet USD/kg 4,55 4,29

Processing cost + packing USD/kg 1,00 1,00

Revenue USD 2 145 000 2 275 000

Cost - raw matr 1500000 1500000

Processing cost 330000 350000

Total cost USD 1830000 1850000

Profit USD 315 000 425 000

Profit B vs A USD 110 000

Profit B vs A USD/kg raw matr 0,11

Profit increase 35 %

Genetic selection increase profitability

Summary

• GenoMar can become your partner within

• Breeding services

– Design and implementation of selective breeding programs for aquaculture

• Broodstock supplier

– GenoMar SupremeTilapia – probably the best genetic tilapia O. niloticus broodstock

Sustainable aquaculture in harmony with environment and local stakeholders

Thank You

Enjoy with good conscience