Creating Value in Wild Seafood. Dedicated to Sustainable Seafood Excellence

Transcription

1 Creating Value in Wild Seafood 0

2 Forward Looking Statements This presentation may contain forward-looking statements. Such statements involve known and unknown risks, uncertainties, and other factors outside management s control including but not limited to total allowable catch levels, selling prices, weather, exchange rates and fuel costs, that could cause actual results to differ materially from those expressed in the forward-looking statements. Clearwater does not assume responsibility for the accuracy and completeness of the forward-looking statements and does not undertake any obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. 1

3 Clearwater Seafoods Our Humble Beginnings Colin MacDonald John Risley Founded in 1976 By John Risley and Colin MacDonald Started as a small, local lobster distributor A focus on serving customers premium quality shellfish and seafood products second to none. 2

4 Clearwater Seafoods - Today (TSX: CLR) North America s largest vertically integrated harvester, processor, and distributor of premium shellfish Largest holder of shellfish quotas in Canada Frozen at Sea processing Global sales, marketing and distribution platform * Widest selection of MSC-certified species of any seafood harvester worldwide 3

5 Clearwater Seafoods - Today (TSX: CLR) 4

6 Creating Value in Wild Seafood 7 Key Elements Leading Global Provider of Wild- Caught Shellfish Investment in Technology & Innovation Powerful Industry Fundamentals Delivering Superior Customer Value Market, Channel & Customer Diversity Food Safety, Traceability & Quality Broad Portfolio of Sustainable Seafood 5

7 Leading Global Provider of Wild-Caught Shellfish Valuable License Ownership 100% 100% Clearw ater is a primary license-holder in all of its key fisheries Strong Presence Across the Value-Chain ($ in millions) Distribution, Procurement & Trading $80 bn Wild Capture $80 bn Arctic Surf Clams Offshore Lobster 49% Sea Scallops 39% Argentine Scallops 25% Coldwater Shrimp Secondary Processing $120 bn Clearwater s Value Added Pipeline Scallops Lobster Clams Shrimp Primary Processing $60 bn Aquaculture $60 bn Balanced Global Footprint United States 15% Canada 14% China, 16% Japan, 10% Crab 4% Lobster, 17% Balanced Species Mix (1) Other 4% Scallops, 38% Europe, 34% Other Asia 5% Clams, 16% Coldw ater Shrimp 21% 1) Ref lects percent of 2013 net sales. 6

8 Creating Value in Wild Seafood Leading Global Provider of Wild- Caught Shellfish Investment in Technology & Innovation Powerful Industry Fundamentals Delivering Superior Customer Value Market, Channel & Customer Diversity Food Safety, Traceability & Quality Broad Portfolio of Sustainable Seafood 7

9 % of Global Middle Class by Region Powerful Industry Fundamentals Supplier Pricing Power Global demand outstripping finite wild-caught supply sources Regulatory bodies managing wild-caught fisheries conservatively to protect long-term supply Declining growth of both wild-caught and aquaculture production 19% Projected Price Growth 23% 30% 43% 50% Customers willing to pay a premium for high-quality sustainable supply Fish Oil Capture/ Wild Traded/ Export Fish Meal Aquaculture Robust Emerging Market Demand Asia-Pacific middle class sustainable growth provides a stable source of long-term demand (six-fold growth in consumer spending forecast through 2020) Growing incomes have increased demand for high-quality premium products Increasing adaptation of premium priced Western-inspired products 2% 6% 2% 5% 10% 6% 28% 36% 66% 18% 14% 7% North America Europe Asia Pacific Central / South America Middle East / North Africa Sub-Sahara Africa Attractive Developed Market Mega Trends Consumer focus on health and wellness driving interest in higher-quality protein, such as seafood Growing desire for sustainably-sourced food Desire for authentic taste experience (wild-caught vs. farmraised) Source: OECD, FAO Secretariates and PricewaterhouseCoopers. 8

10 Attractive Long-Term Opportunity in China China has become a key seafood growth market (RMB per Household) 25,000 Historical Disposable Income in China Processed seafood, amongst other nutritional sources, meets the consumer s demand for a healthy and convenient diet China is expected to double its per capita spending on seafood products from 2007 to 2020 Advancing lifestyles and rising disposable incomes support strong long-term demand Source: Wall Street research and 2011 Global Seaf ood Outlook report. 20,000 15,000 10,000 5, ,280 6,860 7,703 8,472 9,422 10,493 11,760 13,786 Per Capita Seafood Consumption in China Annual per capita seafood consumption 15,781 17,175 2,253 2,366 2,476 2,622 2,936 3,255 3,587 4,140 4,761 5,153 19, (Seaf ood purchased in Yuan per capita) Urban Rural 2001A 2002A 2003A 2004A 2005A 2007A 2010A 2015P 2020P 5,919 9

11 Attractive Long-Term Opportunity in China Retail This year the Chinese retail sector is expected to complete a hat trick. It s going to become the world s largest grocery market, the worlds largest luxury market, and also the largest e-commerce market 10

12 Creating Value in Wild Seafood Leading Global Provider of Wild- Caught Shellfish Investment in Technology & Innovation Powerful Industry Fundamentals Delivering Superior Customer Value Market, Channel & Customer Diversity Food Safety, Traceability & Quality Broad Portfolio of Sustainable Seafood 11

13 Global Market, Channel and Customer Diversity Global Markets Worldwide distribution presence Local sales and marketing teams On-trend products in all markets Channel Mix Multiple touch points to global seafood consumers Diverse Customer Base No single customer represents more than 7% of revenue Average top-ten customer relationship of nearly 10 years Other 21% Food Service 45% Retail 34% Clearwater s Value Proposition Offering the highest-quality in premium, wild shellfish Widest selection of MSC-certified species of any harvester/processor Unique, just-in-time live lobster distribution system Industry leading investment in technology & innovation 12

14 Creating Value in Wild Seafood Leading Global Provider of Wild- Caught Shellfish Investment in Technology & Innovation Powerful Industry Fundamentals Delivering Superior Customer Value Market, Channel & Customer Diversity Food Safety, Traceability & Quality Broad Portfolio of Sustainable Seafood 13

15 Broad Portfolio of Sustainably Harvested Seafood Widest selection of MSC-certified species of any seafood harvester worldwide 14

16 Clearwater and 15

17 Clearwater FOCUS: Food Safety & 100% Traceability Eliminating our Food Safety Risk 1. Trust, but Verify philosophy 2. GFSI-BRC Accreditation 3. Enterprise wide buy-in and support 4. Education and training 5. Environmental swabbing 6. Product Micro 7. Positive release protocol Meets or Exceeds Standards 16

18 Creating Value in Wild Seafood Leading Global Provider of Wild- Caught Shellfish Investment in Technology & Innovation Powerful Industry Fundamentals Delivering Superior Customer Value Market, Channel & Customer Diversity Food Safety, Traceability & Quality Broad Portfolio of Sustainable Seafood 17

19 Customer Co-creation 18

20 Clearwater and 19

21 Clearwater and 20

22 Customer Co-creation 21

23 New Products & Packaging 22

24 Clearwater & Category Management 4 MAJOR SEAFOOD CONSUMER SEGMENTS Seafood- Connoisseurs 12% Impulse Purchasers 24% Cautious Loyalists 44% Bargain Hunters 20% 23

25 Clearwater & Retail Category Management 24

26 Creating Value in Wild Seafood Leading Global Provider of Wild- Caught Shellfish Investment in Technology & Innovation Powerful Industry Fundamentals Delivering Superior Customer Value Market, Channel & Customer Diversity Food Safety, Traceability & Quality Broad Portfolio of Sustainable Seafood 25

27 Technology & Innovation: A Shift From Fishing to Harvesting Ship Management Console (SMC) an All-In-One Onboard Management System Comprising: Ship navigation Data capture and Warehousing Harvest Strategy (pre trip planning) GIS applications Ocean Floor & Water Column Visualization Performance Measurement Vessel Management No. of Vessels 18 9 No. of Sea Days 3,426 2,707 $ Cost per Lb. 26

28 Technology & Innovation: A Shift From Fishing to Harvesting Multi Beam Mapping in Sea Scallop Identifying Harvest Patterns and Trends Directing Ships to Avoid Unproductive Areas Utilizing GIS Query Capabilities Pre-Planned Routing Other Energy Savings Initiatives Reduced Carbon Footprint Reduced Bottom Impact 27

29 Investment in Technology & Innovation Sea Scallops World Leader in FAS Scallop Harvesting Automated Shucking Increased productivity Reduced waste & labour Ergonomic / Reduced risk of injury Sorting & Cleaning Improved quality Improved size grading Increased capacity 28

30 Investment in Technology & Innovation Hard Shell Lobster Large Scale Dry Land Live Lobster Storage State-of-the-Art RSW Live Lobster Harvesting Live Lobster Branding Raw HP Processed Lobster 29

31 Investment in Technology & Innovation Vision for the Future Application of Technology Commonly Used in Subsea Exploration & Ocean Research Underwater Vehicles (AUV s & Gliders) Ocean Monitoring Buoys Salinity Temperature Chlorophyll & Nutrients Ocean Acidification Visual Recognition Technology Identifies target species By-catch avoidance Biomass Monitoring Dynamic Computer Modeling Identifies how gear interacts with the water Experimental Engineering 30

32 Creating Value in Wild Seafood 7 Key Elements Leading Global Provider of Wild- Caught Shellfish Delivering Superior Customer Value Powerful Industry Fundamentals Investment in Technology & Innovation Global Market and Customer Exposure Food Safety, Traceability & Quality Broad Portfolio of Sustainable Seafood 31

33 Thank You! 32