Norway Seafood Industry Report

Transcription

1 Glitnir Seafood Team Norway Seafood Industry Report March 2006

2 Contents Foreword and Report s Main Findings The Norwegian Economy The Norwegian Seafood Industry Harvesting & Processing Aquaculture Opportunities and Challenges ISB Basic Information

3 Foreword Dear Reader, It is with great pleasure that we present this Glitnir Seafood Industry Report, this time focusing on Norway. As before, the objective of our Seafood Industry Report is to give a comprehensive and analytical overview of the region or country in question, aimed towards those living outside that area. Norway is one of the largest single fisheries countries in the world, the total fish catches in 2005 amounting to 2.4 million tonnes at a first-hand value of NOK11.5 billion/eur1.4 billion. Norway s long coastline with its deep fjords stretches for more than 57,000 kilometres. Fishing, fish processing and aquaculture have been an important foundation for the economy and culture along Norway s coast. The Gulf Stream, with its mild temperatures, provides optimum spawning and feeding conditions for a wide range of species and excellent opportunities for the growth of fish and seafood. In addition, Norwegian fish farmers farmed 569 thousand tonnes of salmon, at an export value of NOK14.7 billon/eur1.8 billion. Cod farming is developing and has a potential to provide significant value in the future. Enjoy the reading! Glitnir Seafood Team 3

4 Main findings In 2005, Norwegian seafood exports totalled NOK31.7 billion, and the export volume was 2.0 million tonnes. This is the highest seafood export value ever recorded in Norway and exports of farmed fish comprised 47% of all seafood exports in the year. Norwegian companies produced 569,000 tonnes of salmon and 52,000 tonnes of rainbow trout in 2005, making Norway the largest farmed salmon producer in the world. The purse seiners have been quite profitable for many years, maintaining a 30% to 40% EBITDA margin for the last several years. The profitability has been satisfactory due to consolidation of the fleet and high prices for pelagic fish. Other groups have had considerably lower EBITDA margins, prawn trawlers having suffered the most. The number of seafood processing plants in Norway has been reduced by 15% or from 607 plants in 2000 to 514 plants in 2004, while the number of employees fell from 11,268 in 2000 to 8,729 in 2004, a reduction of 22.5%. In order to improve future profitability there is still a large scope for efficiency improvement through structuring of the industry. Four of six seafood companies listed at Oslo Stock Exchange (the main European seafood stock exchange) have beaten the OSE benchmark index during the last 12 months (Feb Feb. 2006). The increased stock values are mainly caused by high revenues in the salmon farming business, due to high market prices and lower production costs. After the election in September 2005 a new minister of Fisheries and Coastal Affairs was assigned. The new minister, Mrs. Helga Pedersen, has initiated a political evaluation of the Norwegian fleet structuring tools. The evaluation is expected to be finished in the summer/fall of Meanwhile, further consolidation of the fishing fleet is suspended. It would be premature to declare in which direction the fisheries policy will move, but there is reason to believe that structuring schemes will be less liberal in the future. 4

5 The Norwegian Economy 5

6 The Norwegian Economy Norway a stable and strong economy GDP growth Current Account 6% 5% 4% 3% 2% 1% 0% 20% 16% 12% 8% 4% 0% Inflation 6% 4% 2% 0% E E Unemployment 5% 4% 3% 2% 1% 0% E E

7 The Norwegian Economy Norwegian Export Revenues in 2005 The Norwegian Economy Oil & gas represent more than 60% of the Norwegian export revenues. Total Norwegian exports amounted to NOK665 billion in 2005, and NOK553 billion in Norwegian seafood exports were NOK31.7 billion in 2005 and NOK28.2 billion in 2004, making the seafood sector the third largest industry in Norway. Will the seafood sector become the second largest export industry in the coming years? Iron & steel 2,4 % Aluminum 5,9 % Paper 1,3 % Other 24,2 % Seafood products 4,8 % Oil & Gas 61,4 % Source: 7

8 The Norwegian Economy The Norwegian krona (NOK) The Norwegian Economy Compared with exchange rate levels in January 2000 the Norwegian krona (NOK) has strengthened its value against the GBP and USD, while weakening its value against the EUR in the same period. The strengthening of the NOK is mainly attributable to high oil prices. The stronger NOK has had an adverse influence on seafood companies earnings, as the majority of their expenses is in NOK while revenues are primarily in foreign currencies. As future oil prices are expected to remain at a high level, one would expect the NOK to remain strong NOK / USD NOK / EUR NOK / GBP feb.00 maí.00 ágú.00 nóv.00 feb.01 maí.01 ágú.01 nóv.01 feb.02 maí.02 ágú.02 nóv.02 feb.03 maí.03 ágú.03 nóv.03 feb.04 maí.04 ágú.04 nóv.04 feb.05 maí.05 ágú.05 nóv.05 feb.06 Source: Norges Bank 8

9 The Norwegian Seafood Industry 9

10 The Norwegian Seafood Industry The Norwegian Seafood Industry Fleet: 8,184 vessels 12,711 fishermen Catch volume: 2,382,703 tonnes (2005) Processing: 514 plants 10,500 employees Fish farming: 2,946 licenses 4,400 employees Production volume: 621,000 tonnes (2005) Export: 532 exporters 140 countries 10

11 The Norwegian Seafood Industry Russia is Norway s largest individual market Seafood exports from Norway in 2005 totalled 31.7 BNOK, and the export volume was 2.0 million tonnes. Russia is Norway's largest individual market for seafood. Exports to Russia reached 3.7 BNOK in 2005, which is an increase of 1.2 BNOK or 47% compared with Exports to the EU reached a volume of 1.0 million tonnes at a value of 18.8 BNOK in 2005, corresponding to 59% of the seafood export value from Norway Value, '000 NOK % of value Volume, tonnes Value, '000 NOK Volume, tonnes EU - All states 18,825, % 100,046 17,075,672 1,057,270 Russia 3,725, % 345,169 2,526, ,837 Denmark 3,056, % 328,024 2,971, ,197 France 3,013, % 104,971 2,437,383 96,142 Japan 2,592, % 136,956 2,604, ,077 UK 2,041, % 91,088 1,578,622 81,975 Portugal 1,635, % 41,549 1,686,297 45,390 Sweden 1,561, % 55,326 1,463,130 55,835 Poland 1,424, % 79, ,537 65,710 Germ any 1,306, % 62,820 1,429,804 69,845 Italy 1,187, % 27,515 1,202,000 30,642 Ukraine 1,143, % 162, , ,493 China 1,096, % 76, ,579 83,225 Spain 1,086, % 41, ,040 40,642 Total 31,745,607 1,987,107 28,188,110 1,989,031 Source: Norwegian Seafood Export Council 11

12 The Norwegian Seafood Industry Salmon and herring are the most important species In 2005, Norway exported 470 thousand tonnes of salmon at a value of NOK13.4 billion. 533 thousand tonnes of herring at a value of NOK3.5 billion were exported from Norway in 2005, making herring the second largest seafood export item. As the herring stock is considered quite strong it will be interesting to follow product development and the develop of the markets in Value, '000 NOK % of value Volume, tonnes Value, '000 NOK Volume, tonnes Salmon 13,438, % 470,037 11,201, ,222 Herring 3,557, % 533,431 2,744, ,476 Mackrel 2,296, % 165,478 2,264, ,411 Cod 1,956, % 122,536 4,794, ,370 Saithe 1,490, % 105,610 1,329, ,129 Trout 1,243, % 43,371 1,199,657 47,051 Prawns 876, % 33, ,553 29,037 Haddock 644, % 36, ,689 42,811 Greenland halibut 399, % 14, ,787 13,625 Ling 263, % 6, ,923 6,225 Tusk 135, % 4, ,048 4,426 Redfish 134, % 5, ,048 4,426 Total 31,745,607 1,987,107 28,188,110 1,989,031 Source: Norwegian Seafood Export Council 12

13 The Norwegian Seafood Industry The biggest European seafood stock exchange OSE is hungry for fish Six seafood companies are listed at Oslo Stock Exchange. Three of the companies are salmon farming companies; Cermaq (CEQ), Fjord Seafood (FJO) and Pan Fish (PAN). Lerøy Seafood Group (LSG) is both a salmon farming company and a processor/ exporter. Aker Seafood (AKS) is a harvesting and processing company, and Domstein (DOM) is a processor. Cermaq is also a big producer of aquaculture feed. Four of six seafood companies have beaten the OSE benchmark the last 12 months (Feb Feb. 2006). The main reason for the increased stock values are high revenues in the salmon farming business, due to high market prices and low production costs. OSEBX is currently (February 2006) at record level, mainly due to high oil prices. CEQ % FJO % PAN % Listed 24. Oct 2005 DOM % AKS % LSG % Listed 13. May 2005 Source: Oslo Stock Exchange 13

14 Harvesting & Processing 14

15 Harvesting & Processing Key factors for the performance of Norwegian fisheries The price of seafood products has increased in the last year. Strong and stable fish stocks all fisheries quota regulated. Profitability in harvesting despite high oil prices. Political involvement and possible changes to the fisheries management system. Increased focus on illegal, unreported and unregulated (IUU) fisheries. Still large scope for efficiency improvement through structuring of the industry. 15

16 Harvesting & Processing Price development first hand The first-hand value for all species listed below has increased since was a difficult year with low first-hand prices. First-hand prices are expected to remain stable Cod Haddock Saithe Herring Mackerel Source: NOK/kg 16

17 Harvesting & Processing TACs in Norwegian waters (major species in thousands of tonnes) All major species in Norwegian waters are harvested sustainable and are in good condition. Norway controls some of the richest fishing grounds in the world: The North Sea The Norwegian Sea The Barents Sea All highly productive areas, and major fish stocks spawn right off the Norwegian coast. 90% of fish stocks shared with other countries and cooperation is essential to ensure sustainable management Cod Haddock Saithe Norwegian Spring Spawning Herring North Sea Herring Mackerel Source: Norwegian Directorate of Fisheries, 000 tonnes 17

18 Harvesting & Processing Profitability in harvesting EBITDA margin The purse seiners have been quite profitable for many years, maintaining a 30% to 40% EBITDA margin for the last several years. The profitability has been acceptable due to consolidation of the fleet and high prices for pelagic fish. The outlook for the purse seiners is relatively bright with strong fundamentals, as the main fishing stocks are in good condition. Furthermore, the markets for the main pelagic products seem to be strong for the long term. 45 % Other groups had have 40 % considerably lower EBITDA margins, prawn 35 % trawlers having suffered 30 % the most. 25 % EBITDA% 20 % 15 % 10 % 5 % 0 % -5 % -10 % E Purse seine Prawn trawl Cod trawl Conventional gears Source: Norwegian Directorate of Fisheries / ISB 18

19 Harvesting & Processing Improved profitability for the processing industry 2004 was the most profitable year for the Norwegian processing industry since 1998, mainly due to a low interest rate level and the strong consolidation of the whitefish processing. The net profit for the processing industry was 1.7% of the turnover. The producers of stockfish were the most profitable, with a net profit of 15% of the turnover. Prawn producers had a difficult year in Increased focus on fresh fillets instead of frozen ones improved profitability for the filleting industry. The number of employees was reduced by 10% from 2003 to The number of whitefish processing plants (filleting/freezing) fell from 35 in 1999 to 26 in EBITDA - margin 8,0 % 6,0 % 4,0 % 2,0 % 0,0 % -2,0 % ,0 % -6,0 % Pelagic Prawns Salted / Dried Fish Fillets, White Fish Fresh Fish 19

20 Harvesting & Processing Consolidation in the processing industry The number of seafood processing plants in Norway has been reduced by 15% from 607 plants in 2000 to 514 plants in % of the companies have less than 3 employees, 23% have 4-9 employees, while 21% have between 10 and 19 employees. Only 16 companies (3%) have more than 100 employees. The number of employees in the processing industry fell from 11,268 in the year 2000 to 8,729 in 2004, a reduction of 22.5% Number of processing plants Source: 20

21 Harvesting & Processing Quota distribution - Whitefish Only 30% of the Norwegian cod quota is caught by trawlers (fixed by govt. regulation). The coastal fleet (vessels under 28 meters) is assigned 60% of the Norwegian cod quota, while long liners have ~10% of the quota. Trawlers White Fish tons C od tons Haddock tons Saithe N of 62ºN tons Saithe S of 62ºN Conventional Gears (Long line, Gill Net, Danish Seine) The quota distribution between the different vessel groups is in accordance with the agreement on quota distribution between the Norwegian fishermen. New politically distributed regional quota introduced this year (3% of total). Cod (30,22% tons) Haddock (38,00% tons) Saithe N (37,00% tons) Saithe S (81,35% tons) Vessels over 28 mete Long Liners (% of tot al) rs Cod (8,96% tons) Haddock (11,16% tons) Saithe N (4,17% tons) Saithe S (10,80% - max tons) Vessels under 28 meters Coastal Fleet (% of tot al) Cod (60,97% tons) Haddock (50,84% tons) Saithe N (33,77% tons) Saithe S (2,29%- min tons) Cod (69,93% tons) Haddock (62,00% tons) Saithe N (38,05% tons) Saithe S (13,10% tons) (((1,6581,35%) Coastal Purse seine, Saithe (% of tot al) Saithe N (25,00% tons) Saithe S (9,00% tons) 21

22 Harvesting & Processing Quota distribution Pelagic species After being close to extermination during the 1960s, The Atlanto- Scandinavian herring is the world s single largest stock. Pelagic Species tons Mackerel tons North Sea herring tons Atlanto- Scandinavian herring In 2005, total export revenue of pelagic species was about NOK6.5 billion or 42% of total export value Purse seiners Industrial Trawlers Coastal Fleet of wild catch. In 2005, 100 basic tonnes included 170 tonnes mackerel, 980 tonnes Mackerel (68,46% tons) NS herring (79,90% tons) AS herring (51,55% tons) Mackerel (3,18% tons) NS herring (7,00% tons) AS herring (10,17% tons) Mackerel (21,59% tons) NS herring (8,00% tons) AS herring (37,61% tons) herring and access to catch capelin, sprat and horse mackerel. Small Purse seiners (SUK) The market value of 100 basic tonnes has risen sharply in the last 5-7 years and is now about NOK50m. Mackerel (6,1% tons) NS herring (5,1% tons) Number of vessels Value of licence Number of vessels Million NOK 22

23 Harvesting & Processing Oil price development The Central Bank of Norway expects the oil price to be on a level of approximately USD60 per barrel throughout Oil is the largest single cost item of harvesting companies, probably hitting shrimps trawlers worst but long liners the best. Source: Norges Bank 23

24 Harvesting & Processing Political risk: Possible changes to the fisheries management system During the last four years the fisheries legislations has been liberalised. Changes have been made to improve profitability by allowing consolidation of the fishing fleet. New minister of Fisheries and Coastal Affairs, Mrs. Helga Pedersen, from September Pedersen has initiated a political evaluation of the Norwegian fleet structuring tools. The evaluation is expected to be finished summer/fall Meanwhile, further consolidation of the fishing fleet is suspended. District quota system for cod implemented in 2006 corresponding to 1.6% of the Norwegian cod quota. Main purpose is to strengthen the fish processing industry in rural areas with low earning power. It has been indicated that the arrangement with compulsory deliveries in certain areas in the northern part of Norway, which has been practiced liberally, will be fully enforced in the future. It would be premature to declare in which direction the fisheries policy will move, but there is reason to believe that structuring schemes will be less liberal in the future. Illegal, unregulated and unreported (IUU) fisheries in the Barents sea is believed to account for 100, ,000 tonnes per year, equal to 50% - 100% of Norwegian cod catches. Increased political focus on IUU is expected to have positive effects on raw material supply to the industry. 24

25 Harvesting & Processing New product: Red King Crab In the beginning of the 1960s, the red king crab was introduced to the Barents Sea by Russian scientists. In the mid-1970s the crab was recorded for the first time as bycatch in the Norwegian demersal fishery, and the stock has grown gradually in Norwegian waters. In co-operation with Russia, a research fishery for the crab was carried out in the years In 2002, a commercial fishery for the crab was opened. In agreement with Russia, Norway has introduced a western boundary for the joint management of the king crab at 26 E from 2004, in order to limit the spread of the king crab west of this boundary. This will give Norway free rein to pass the measures it deems necessary and appropriate west of this boundary in order to limit further spread of the king crab, until more knowledge about the ecological impacts of this introduced species is obtained. In ,211 tonnes of red king crab were caught in Norwegian waters at a value of NOK69 million. Volume Value Source: value: 000 NOK, volume: tonnes 25

26 Aquaculture 26

27 Aquaculture Exports of farmed fish comprise 47% of seafood exports in was a record year for fish farming. Exports of farmed fish comprise 47% of all seafood exports in 2005 compared with 44% in 2004, and are the highest ever recorded. The aquaculture industry is of growing importance to the economy of coastal communities. In 2005, Norwegian companies produced 569,000 tonnes of salmon and 52,000 tonnes of rainbow trout. The future of aquaculture: bright prospects. Forecasts for salmon and trout are good although remaining prices will probably decrease. A great deal of effort is going into the development of breeding and farming of new species, e.g. cod, white halibut, artic char and blue mussels. 27

28 Aquaculture World s largest farmed salmon producer This year, Norwegian salmon farming companies are estimated to produce 580,000t of Atlantic salmon which is 45% of the total world s production. This means that production has increased by 37% since the year Atlantic salmon production volume (in tons) E 2006E Norway 422, , , , , , ,000 Chile 166, , , , , , ,000 Canada 78,800 99, ,000 92,000 89, , ,000 UK 120, , , , , , ,000 Faroe Isl. 30,000 41,000 42,000 47,000 37,000 16,000 6,500 Others 55,700 59,200 52,000 54,800 47,000 45,000 46,500 Total 873, ,300 1,059,242 1,144,800 1,193,000 1,237,000 1,288,000 Source: Kontali Analyse The most important markets for Norwegian salmon have been the EU countries but this year exports to Russia have increased extensively. 28

29 Aquaculture High salmon price Tight supply side and strong demand has been very positive for the Norwegian salmon producers. Prices have been at very high levels globally. Most estimates for 2007 are based on normalized salmon prices of NOK/kg Price is very volatile with frequent and large fluctuations. The salmon market is characterised by wide fluctuations. Low management level of production volume could cause supply to grow too fast, leading to a price fall Source: Leröy Seafood Group 29

30 Aquaculture Highly fragmented salmon aquaculture industry Anyone who wants to practise aquaculture in Norway needs a permit from the authorities a licence. This is an exclusive right to conduct fish-farming on certain conditions. As of 1 January 2005 there are 868 commercial licences for salmon and trout. In order to get a licence the fish-farmer must have access to a suitable site that is, a location for the aquaculture facility. There are strict requirements as to currents, seabed conditions and location before a site can be approved for use in aquaculture. Fish farmers holding only one licence represent ~ 40% of the market. The government regulates national and local ownership, the maximum share of licenses allowed to one owner being 25%. Number of companies Total Number of licenses Source: Various sources 30

31 Aquaculture Cod farming tripled in 2005 Cod farming is the main growth area in Norwegian fish farming. Over 2,500 tonnes of farmed cod were exported from Norway in Never before have exports been so high; the increase from 2004 was 290%. The export value of cod was almost NOK90 million in 2005, an increase from 2004 when export value amounted to NOK31 million. As yet, farmed cod has little significance compared with total export revenue from seafood products. The export value of farmed cod was 0.3% of the overall seafood exports. The average price per kg exported from Norway was NOK35.3 but was slightly higher the year before or NOK36.2. Europe is the most important market area for farmed cod. About 60% of products are exported to France and Denmark. The Danish pay more than the French as they buy more cod fillets whereas the French buy a higher proportion of whole fish. 31

32 Opportunities & Challenges The Norwegian Seafood Industry: Opportunities and Challenges Opportunities Further consolidation, acquisitions and investments, both domestically and abroad. Development of fresh goods vs. frozen/salted of ground fish species. The very strong segmentation of the industry with little vertical integration. Existence of "puppets" where industry invests in vessels. Take advantage of increased focus on health issues by supplying safe and healthy seafood. Challenges Oil prices will most likely remain high. Environmental sustainability with elimination of IUU fisheries focus. General agreement regarding oil exploration and wild catches, e.g. in the Lofoten area and in the Barents Sea. Product prices are high, but are expected to remain stable throughout Rapid growth in global aquaculture. Growing supply of frozen products from Asia, e.g. China. Volatile political situation with uncertain investment climate. 32

33 Introduction to Glitnir Home markets are Iceland and Norway Focus on niche segments world wide Seafood Industry, Sustainable Energy & Shipping - Offshore Supply Vessels Strong focus on the seafood industry since 1904 Today 10 % of the bank s loan portfolio is in the seafood industry Glitnir s Total Loan Portfolio USD 18.5 bn Manf. constr. 8% Seafood 10% Commerce 5% Other 3% Property companies 30% Credit ratings: A1 / P-1 (Moody s), A / F1 (Fitch) and A-/A-2 (Standard and Poor s) Services 20% Households 24% Our Services include: Credit facilities Term loan facilities Working capital facilities Syndicated loans Vessel financing Bridge loans Capital Markets Bond issuances FX dealings Forward contracts Options Mergers & acquisitions Financial advisory Acquisitions Disposals Minority investments MBOs / LBOs / MBIs Private Placements Strategic reviews Other services Risk management advisory Equity participation 33

34 Glitnir s international platform 41 Lothbury, London City United Kingdom London Branch Corporate Banking Corporate Finance Centre of Excellence Food industry Structured Finance Loan Syndication Luxembourg Glitnir Luxembourg Corporate Banking Financial Institutions Centre of Excellence Real Estate Private Banking 534 Rue de Neudorf, Lux. Frederiksgade 19, Copenhagen Denmark Copenhagen Branch Leveraged Finance Corporate Finance Norway Iceland Canada BNbank: Munkegata 21, Trondheim Dronningens gate 40, Oslo Glitnir Bank: St. Olavsplass 1, Alesund Glitnir Securities: Haakon VII s gate 10, Oslo BNbank Corporate and retail mortgage Glitnir Bank Full service bank, trad. indust. Centre of Excellence Shipping/ Offshore supply vessels Subsidiaries: Glitnir Factoring Glitnir Securities Union Group (approv. pending) Kirkjusandur, Reykjavik Headquarters Corporate Banking Centres of Excellence Global seafood Sustainable energy International core customers Structured Finance Capital Markets Corporate Finance 1718 Argyle Street, Halifax t.b.a., Shanghai Glitnir Canada Representative Office Halifax Opened April 2006 China Glitnir China Representative Office Shanghai Opening Fall

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36 Glitnir Seafood Team Business Management Covering: Asia and Oceania Magnús Bjarnason Managing Director Region Asia & Americas Direct line: Mobile: Latin America, S-Europe & Africa Jón Gardar Gudmundsson Director Business Management Direct line: Mobile: USA, UK & Continental Europe Helgi Anton Eiríksson Director Business Management Direct line: Mobile: Canada Hjálmur Nordal Chief Representative Glitnir Canada Canada: + 1 (902) Mobile: hjalmur.nordal@glitnir.is Iceland Ragnar Gudjónsson Director Corporate Banking, Iceland Direct line: Mobile: ragnar.gudjonsson@glitnir.is North America Jonathan Logan Executive Director North America Canada: +1 (416) (cell) Iceland: (cell) jonathan.logan@glitnir.is Nordic Countries Kjartan Ólafsson Director Glitnir Bank Direct line: Mobile: kjartan.olafsson@glitnir.no 36

37 Glitnir Seafood Team Other Members Timothy H. Spanos Director International Corporate Banking Direct line: Mobile: Örn Gunnarsson Executive Director Corporate Finance, Iceland Direct line: Mobile: Gudmundur Ragnarsson Senior Manager Corporate Banking, Iceland Direct line: Mobile: Gísli Sigurgeirsson Senior Manager International Corporate Banking Direct line: Mobile: Tim Owen Executive Director Head of Corporate Finance, UK Direct line: +44(0) Mobile: +44(0) Ola Övrelid Bank Executive Glitnir Bank Seafood Credit, Norway Direct line: Mobile: Hjörtur Thor Steindorsson Credit Manager International Corporate Banking Direct line: Mobile: Einar Örn Ólafsson Director Corporate Finance, Iceland Direct line: Mobile: Merete Stokke Nesdal Credit Manager Glitnir Bank Seafood Credit, Norway Direct line: Mobile: Kristján Th. Davídsson Managing Director Corporate Banking, Iceland Direct line: Mobile: Atli Rafn Björnsson Associate Corporate Finance, UK Direct line: +44(0) Mobile: +44(0) Kyrre Dale Credit Manager Glitnir Bank Seafood Credit, Norway Direct line: Mobile:

38 Glitnir Seafood Team Other Members Ingi Rafnar Júlíusson Executive Director Capital Markets Direct line: Mobile: Rúnar Jónsson FX Brokerage Capital Markets Direct line: Mobile: Stefán Eiríks Stefánsson FX Brokerage Capital Markets Direct line: Mobile: Eiríkur R. Eiríksson Senior Manager Corporate Risk Advisory Direct line: Mobile: Valdimar Halldórsson Analyst Glitnir Research Direct line: Mobile: Alexander Richter Analyst Business Management Direct line: Mobile: Snorri Arnar Vidarsson Analyst International Corporate Banking Direct line: Mobile: Harpa Lydía Gunnarsdóttir Business Support International Corporate Banking Direct line: Mobile:

39 Legal disclaimer All opinions and analyses represent the views of Glitnir at the time of writing and are subject to change without notice. Glitnir and its employees cannot be held responsible for any trading conducted on the basis of the information and views presented here. Glitnir may at any time have vested interests in individual companies, for example as an investor, creditor or service provider, but its opinions and analyses are produced independently by the Glitnir Research division, based on publicly available information on the company in question. This Seafood Industry Report was written by: Valdimar Halldórsson Glitnir, Research division, Kyrre Dale Glitnir Bank, Norway, 39

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