NORTH ATLANTIC SEAFOOD CONFERENCEQ4 update w/outlook on industry structureLillestrøm, March 5th, 2008

Gunnar Domstein (CEO) Jan-Terje Teige (CFO)

Agenda

Overview

Operations

Financials

Outlook on industry structure

Section Subject

I

II

III

IV

Norway Pelagic at a glance• Formed in the merger between Domstein Pelagic, Global Fish,

Bergen Fiskeindustri, Koralfisk and Bernt Hansens Eftf at 1th of July, 2007

• Processing and sales og pelagic fish (mainly herring and mackerel) for human consumption

• 10 processing plants from Karmøy in the south to Sommarøy in the north

• A strategic initiative to consolidate an industry charaterized by a fragmented structure and modest profitability

The value chain

• Catch of pelagic fish is mainly done by purse seiners. NVG herring is mainly caught in the Norwegian Sea and mackerel and North Sea herring mainly in the North Sea area

• Processing plants, scattered along the coast, bid for the catches through four daily mandatory auctions and receive fresh fish for sorting, filleting, freezing, packing, storage, sales and transportation

• Logistics - The cargo is deep-frozen, and transport is handled by ship and/or land based transport

• Customers are mainly large national import companies

– Herring: Mainly Russia, Ukraine and EU

– Mackerel: Mainly Japan and Russia

Catch Processing plants Logistics Customers

Norway Pelagic operations

Norway Pelagic no operations

• Sommarøy• Bodø• Ålesund• Liavåg• Selje• Måløy• Kalvåg• Florø• Bergen• Karmøy

Ideally located for landings that varies with seasons for pelagic fish combined with high peak season capacity…

Total production capacity: 5.050 tons/day

Est. production volume 2008: 400 000 tons

Norway Pelagic locations

Overview

Operations

Financials

Outlook on industry structure

Section Subject

I

II

III

IV

Raw materials• Simultanious peak season for herring

and mackerel in october and november

• Increased quotas for both species compared to last year

• Total production in 2007: 209 000 tons

• Fire in Bodø plant reduced production

• Failure of horse mackerel fisheries

• Estimated share of total landings: 33,5%

• Estimated share of total landings at normal capacity utilization: 37-40%

Tons (rw) NPEL Total for consumptio

n

% share

Mackerel 49 000 158 000 31 %

Horse mackerel

2 000 3 900 52 %

Herring 157 000 460 000 34 %

Total 209 000 622 000 33,5 %

Production

Total Q4 2007 Q4 2007 Herring

Mackerel

Horse mackerel

Produced round frozen 108 403 94 341 66 184 40 225 1 994

Produced fillet/value added 51 376 47 709 48 956 2 420 0

Total produced 159 779 142 050115 140 42 645 1 994

Total 2007

Q3+Q4 2007

Herring

Mackerel

Horse mackerel

Produced round frozen 144 647 103 663 95 817 46 824 2 006

Produced fillet/value added 64 171 59 089 61 049 3 122 0

Total produced 208 818 162 752156 866 49 946 2 006

Production 4th quarter (round weight in tons)

Production 2007 (round weight in tons)

• Total production increased by 12 % compared to same period in 2006

Quota developments

69,8%

34,0% 50,0%42,7%

44,1% 48,2% 52,2%

60,4%

9,3%

15,7% 15,6% 27,0%

26,7%29,0% 24,2%

16,0%

21,0%

34,0% 34,4% 30,3%

29,2% 23,6% 23,6%

23,6%

0

500.000

1.000.000

1.500.000

2.000.000

2.500.000

2001 2002 2003 2004 2005 2006 2007 2008

NVG Herring North Sea Herring Mackerel

• The NVG Herring is getting increasingly more important and accounted for almost 70 % of the total quota in 2007. From 2003 the NVG herring quota has increased 114 % while the total quota for the three main pelagic species has increased 30%.

Markets

Turnover 2007 - distribution pr market

J apan+Far East33 %

Russia30 %

EU12 %

Norway3 %

Others3 %

Europe Ex. EU19 %

Turnover 2007 - HERRING

1 %

24 %

19 %

2 % 4 %

Russia50 %

Japan+Far East

Russia

Europe Ex. EU

EU

Norway

Others

Turnover 2007 - MACKEREL

5 %

13 %

3 %5 % 3 %

Japan+Far East71 %

Japan+Far East

Russia

Europe Ex. EU

EU

Norway

Others

Average price for NP in 2007 was approx 5,00 kr /kg Average price for NP in 2007 was approx 10,30 kr/kg

Footnote: 1. Prices of herring and mackerel are based on prices achieved by Domstein and Global in the period 2001-2006 (volume weighted)

Norwegian Mackerel volumes and export pricesNorwegian Herring volumes and export prices

Volumes and prices of Herring and Mackerel(1)

6.1 5.76.0 5.6

4.8 5.1

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2001 2002 2003 2004 2005 2006

ton

s

0

2

4

6

8

10

12

14

16

kr/k

gVolume Price

14.9

10.610.28.6

9.58.6

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2001 2002 2003 2004 2005 2006

ton

s

0

2

4

6

8

10

12

14

16

kr/k

g

Volume Price

Gross margins (kr/kg)

 4th

quarter 2007

Herring 1,33 1,34

Mackerel 2,16 2,23

Horse mackerel 2,39 2,38

TOTAL 1,56 1,58

Overview

Operations

Financials

Outlook on industry structure

Section Subject

I

II

III

IV

P&L 2007MNOK Q4 2007 2007

Net operating revenues 996,8 1.118,3

EDITDA 78,3 83,9

EBIT 74,3 76,0

Operating margin 7,5% 6,8%

Net financial expences 8,3 9,7

Result before tax 66,0 66,3

Result after tax 47,3 47,8

BALANCE SHEET - ASSETSMill. Kroner 31.12.2007 01.07.2007

Intangible fixed assets 346,6 372,4

Tangible fixed assets 310,3 278,9

Financial fixed assets 0,1

Total fixed assets 656,9 651,3

Inventories 176,9 2,8

Receivables 424,9

Cash and equivalents 11,3 203,8

Current assets 613,1 206,3

Total assets 1 270,0 857,9

BALANCE SHEET - LIABILITIESMNOK 31.12.2007 01.07.2007

Equity contributions 634,5 632,3

Earned equity 47,3

Total equity 681,8 632,3

Provisions 7,0 3,5

Interest bearing long term debt 346,8 206,7

Interest bearing short term debt 109,8 11,5

Non interest bearing current liabilities 124,7 3,9

Current liabilities 588,2 225,6

Total equity and liabilities 1 270,0 857,9

KEY FINANCIAL

% and kr31.12.200

7

Result margin 4,27%

Operating margin 6,80%

Result pr. share Nok 3,35

Equity Mnok 681,8

Equity share 53,7%

Working capital Mnok 378,5

Net interest bearing debt Mnok 445,5

Expectations for 2008• Capacity utilisation is very good at Q1, more volumes than recent

years• Norway Pelagic expects to produce 400.000 tons raw materials,

equivalent of over 2 billon NOK turnover• Norway Pelagic will increase fillet capacity• Norway Pelagic will continue to establish best practice on

production and logistics• Low purchase prices on herring can still open favourable

opportunities in new markets • Market conditions in Japan for mackerel are generally good, partly

because of lower domestic catch than expected• Sommarøy and Bodø plant already approved by Russian Food Safety

Authorities, and has the capacity to serve our largest Russian customers. Further plants have been inspected for approval.

• Norway Pelagic expected to be listed on OSE by Q2 2008

Overview

Operations

Financials

Outlook on industry structure

Section Subject

I

II

III

IV

Structural development

• Lack of Industrial Structure In the Pelagic Consume Sector:– Fleet concentration– From 11 to 3 major Fishmeal producers last 10 years– Forceful concentration in the Salmon field– Still above 30 factories for Pelagic Consume Production in Norway…

• Norway Pelagic = response to this challenge

• Many factors drive the structural process:– Larger customers; expects large quantities and stability in quality and

volume – security for supply becomes important issue– Food Safety Demands – Norwegian Authorities– Russian Authorities; still only 7 suppliers are accepted– Investment needs vs volumes in each factory

Case: The 3 days rule and its consequences

Our challenge is in the Market

NP main operational challenge =improved performance in the Value Chain that we command

– Production and efficiency– Market performance

• Increment of value creation in our products:– From Round frozen products to Fillets– High standards & documentation: Quality & food safety– Improved customer understanding and product/process development in

accordance with market needs

• Particular focus on Herring – by far our most important product