Grieg Seafood ASA

IntraFish Seafood Investor ForumLondon, 13 September, 2018

Andreas Kvame, CEO

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Digitalization in salmon farming

British Columbia

Grieg Seafood footprint

20.0

29.5

18.5

12.0

25.0

38.0

20.017.0

Rogaland Finnmark BC Shetland

Guiding 2018Total capacity

Harvest volume and capacity (1 000 tonnes GWT)

51%

16%9%

18%

4% 3%

EU Great Britain US Asia Eastern Europe Canada

2017 revenue by market

Finnmark

Shetland

Rogaland

Bergen

Bømlo

Grieg Seafood regions

Head quarter

Sales offices

Bejing

Lisboa

Manchester

USA

3

Our value chain

4

Customers

Current annual capacity of 4 500 tonnes smolt 63 grow-out sites

62 600 tonnes of salmon harvested in 2017

60% ownership in sales company Ocean Quality

Smolt production

Farming Primary

processingSales and

distribution

Grieg Seafood presence

Fish feed

Breeding and genetics

Brood activity in Erfjord in Rogaland

Ensuring safe and healthy food throughout the value chain

• Quality criteria for feed

• Traceability through Fishtalk

• Preventive health measures and treatment

• Traceability through Fishtalk

• GLOBALG.A.P. certification

• Preventive hygienic and quality measures

• Traceability through Fishtalk and Maritech

• GLOBALG.A.P. certification

• Risk assessments and preventive measures

• Standards for transport and storage

• ASC chain and custody

• Communication about approach

• GKLOBALG.A.P. certification

900 000 meals per day

worldwide

• Register, follow-up and feedback

• Approved HACCP system

• Food safety authority monitors residue

• Substances in fish

• GLOBALG.A.P. certification

Value added processing

EBIT pre fair value/kg(NOK/kg)

8,84

3,42

-2,73

6,045,30

0,70

18,00

14,40

2010 2011 2012 2013 2014 2015 2016 2017

Operational and financial development

2 4472 047 2 050

2 404

4 100

4 609

6 545

7 017

2010 2011 2012 2013 2014 2015 2016 2017

5

64,260,1

70,0

58,1

64,7 65,4 64,762,6

2010 2011 2012 2013 2014 2015 2016 2017

Harvest volume(1 000 GWT)

Revenues(NOK million)

Financial performance H1 2018

• Record high quarterly harvest volume

• High prices driven by strong demand

• Good production in Finnmark, BC and Shetland

• Negative impact from PD in Rogaland

• Harmful algal bloom in BC

• Harvest volume of 17 100 tons Q3 2018, 75 000 for the full year

• Dividend of NOK 2.00 per share

6

29.0

16.714.7

2.8

11.6

19.2

23.4

9.3

Rogaland Finnmark BC Shetland

YTD Q2 2017 YTD Q2 2018

EBIT pre fair value/kg(NOK/kg)

• Targeting 100 000 tonnes in 2020 with cost at or below industry average

• Building a platform for sustainable growth beyond 2020

We are on a growth journey

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British Columbia

Growth through improved capacity utilization

Finnmark

ShetlandRogaland

Growth potential in current production capacityCurrent capacity: 100 000 tonnes

Growth initiatives

• Post-smolt strategy

• Precision farming

• Biosecurity

• New locations

• Regulatory changes

16,0

29,5

17,5

12,0

25,0

38,0

20,0

17,0

Rogaland Finnmark BC Shetland

Guiding 2018 Total GSF capacity

Harvest volume and capacity (1 000 tonnes GWT)

Targeting Group cost of NOK 37.90/kg in 2020

9

• Increased survival NOK 3/kg

- Robust smolt

- Reduced time in sea

- Biosecurity

• Harvest cost NOK 1/kg

- Increased efficiency from higher volumes

• Miscellaneous NOK 1/kg

- Precision farming

- Procurement

• Weighted industry average cost in of NOK 38/kg* in 2020

*based on industry and analysts forecasts

29,78 31,35 32,47 34,04 35,1937,70 39,67

43,41 42,3739,40 37,90

38,0

2010 2011 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E

GSF cost excl. HQ (NOK/kg) Estimated industry average NOK 38/kg

GSF Rogaland and Finnmark (NOK/kg)

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Post-smolt strategy

Sustainability

Digitalization in salmon farming

Expansion opportunites

Biosecurity and fish welfare

11

Data

Technology

Processes People

Combining people, nature and technology

Digitalization in salmon farming

12

Applying advanced sensors, big data, artificial intelligence and automation in order

to generate better decisions, thereby increasing yield and resource efficiency.

13GSF Precision Farming takes us into the digital era

Technology and data are changing the way we operate

14

Salmon farming

operations

Before Now The future

Historical data Real-time dataData-driven predictions and

simulations

• Integration platform

• Cloud-based services

• Internet of things (IoT)/sensors

• Big data analytics

• Integrated operations

• Predictions

• Improved decision support

• Consolidation

• Simplification

• Data acquisition

• Data storage

• Data Warehouse/BI

• Master data management

• Manually oriented

• Gut-feeling

• Experience-based

• Poor data quality

• Little focus on standardization

Data driven actions and effects End resultsData sources

Data enables GSF Precision Farming and the digital transition

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Sustainability

Productivity

Costs

• Data driven decision support

• Improved insight

• Better control

• Increased resource utilization

• Improved area management

• Unseen connectivity

• Biological characteristics

• Biomass control

• Environmental conditions

• Operational infrastructure

GSF Precision Farming is key for delivering on our sustainable growth strategy

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Where we started Where we are today

• Simplified and standardized infrastructure and IT portfolio management

• Developed a harmonized culture for interaction of IT and data throughout the company

• Worked closely with all regions and regional directors to recognize the importance of simplicity and standardization

• Through control of all data and systems, as well as digital confidence throughout the company, we have built the backbone for all ongoing and future digitalization projects

• Improving the BI solution utilizing the GSF Cloud as a source system

• Pilot for integrated operation center ready for launch in Rogaland

• Correlating satellite pictures with digital processing of water samples and environmental parameters, for optimized feeding in British Columbia

• Utilizing sensor data for real-time monitoring in cages

• Improving feed conversion ratio through big data project with IBM Watson

• Taken a lead role in industry collaboration project with NCE Seafood Innovation Cluster to predict sea lice outbreaks (AquaCloud)

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Integrated full-scale operations centers for remote farming operations

Compatibility

Compatible with multiple types of feeding systems, cameras and sensors

Open standard

Open standard enables integration with new technologies and functionalities

Operational and strategic decision support

• Gather and analyze new and historical data• Support decision through continuous data analysis• Centralize and improve feeding operations• Overview of all technical infrastructure

Utilizing artificial intelligence in feed optimization project

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Real-time data from feeding system

Grieg Seafood location

GSF Cloud

1

2

3

Operations center

Real-time environmental data from sensors at various depths in the cage

Sample tests on salmon growth

Optimized feeding profile (data analytics)

DataOptimal feeding4

Precision farming ensures efficient operations

Better feeding leads to better growth

Launch fall 2018 - ensure all technical aspect function correctly

Centralize and improve feeding operations

Gather and analyze new and historical data to support decision making at the growth sites

Free up time for employees at growth sites to focus on technical aspects, such as lice counts and cleaner fish

HMS - employee safety, improved surveillance of boats and employees

Aiming for full coverage by 2019

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02

03

04

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Photo: Eilert Munch