How can we feed a growing Population?

Global Macro factors

• Salmon farming in Scotland uses 150 hectares of sea, equates to 0.002% land in Scotland

Even stronger demand for Seafood

“…dietary goals can be met by (…) ensuring a regular intake of fish (one to two times per week).”World Health Organisation

Total seafood production

• Increasing output from Aquaculture with reduction in wild caught stocks

Salmon energy efficient compared to most protein sources

Global Atlantic salmon supplyWFE

Source Kontali 27/4/14

Change Change Change Change Change2010 09-10 2011 10-11 2012 11-12 2013 12-13 2014 13-14

Norway 944 600 10,4 % 1 005 600 6,5 % 1 183 100 17,7 % 1 143 600 -3,3 % 1 224 200 7,0 %United Kingdom 142 900 -1,0 % 154 700 8,3 % 159 400 3,0 % 157 800 -1,0 % 161 000 2,0 %Faroe Islands 41 800 -11,3 % 56 300 34,7 % 70 300 24,9 % 72 600 3,3 % 76 900 5,9 %Ireland 17 800 20,3 % 16 000 -10,1 % 15 600 -2,5 % 10 600 -32,1 % 12 000 13,2 %Iceland 1 000 100,0 % 1 000 2 900 3 100 6,9 % 4 000 29,0 %Total Europe 1 148 100 8,1 % 1 233 600 7,4 % 1 431 300 16,0 % 1 387 700 -3,0 % 1 478 100 6,5 %

Chile 129 600 -45,8 % 221 000 70,5 % 364 000 64,7 % 468 100 28,6 % 510 000 9,0 %Canada 122 000 0,1 % 119 500 -2,0 % 136 500 14,2 % 115 100 -15,7 % 117 300 1,9 %Australia 33 000 2,5 % 36 000 9,1 % 39 000 8,3 % 40 500 3,8 % 42 000 3,7 %USA 18 000 9,8 % 18 300 1,7 % 19 600 7,1 % 20 300 3,6 % 19 500 -3,9 %Others 4 500 60,7 % 5 000 11,1 % 8 500 70,0 % 11 100 30,6 % 14 100 27,0 %Total America 307 100 -25,5 % 399 800 30,2 % 567 600 42,0 % 655 100 15,4 % 702 900 7,3 %

Total World-wide 1 455 200 -1,3 % 1 633 400 12,2 % 1 998 900 22,4 % 2 042 800 2,2 % 2 181 000 6,8 %

138.200 t587.600 t (40 %)

Global Demand salmon

• Scotland has a declining market share now 7% of total production

Global market Atlantic salmon

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10% annual growth in demand

Scottish Sea Farms History

Scottish Sea Farms Ownership

• Leroy and SalMar are two leading performers in the European Seafood Industry, both companies are listed on the Oslo stock exchange.

• As a group in 2013 T/O £1.83 Billion, and we account for +287kt approx 16% of total global supply, No.2 in Global production.

• Secure financial structure within the group, with a strong commitment to continue to develop a leading position in the UK.

• Source Ova from 3 leading breeding programs

• SSF defined Ova specification

• Breed selection based on ultimate grow out site criteria.

Overview of operations

• Self sufficient for smolt production

• 3 Hatcheries

• 5 FW Lochs

• 36 Staff to produce 7 million smolts

• Defined smolt criteria – health, size, welfare indices, time of delivery

• 3 Year investment program of £+12m : To deliver

• Increased capacity +11 million smolts

• Improvement in quality and cost.

• 3 Regions – Scotland, Shetland, Orkney

• Annual production of 26,000t gutted weight

• Utilising 44.9kt of Farming consent on 38 sites

• £14.6m capital investment in the last 3 years

• 168 Staff in Marine.

• 2 Processing plants

• 80-120t per day

• Plants connected to the sea – wellboat live chill

• Only Scottish farmer with this system

• 120 Staff

• Pre rigor filleting capability

• Extensive certification providing customer assurance.

• UK approx 55% volume

• Export to 19 different countries – USA 22%, France 12%, other 11%

• Clients typically premium retail and high end food service

• Partnerships with clients that value a Scottish premium product and differentiation.

Scottish Sea Farms Locations

Scottish Sea Farms Harvest Volumes

Scottish Sea Farms Turnover

• SSF major player in the Scottish Food & Drink sector• SSF listed as No.81 largest 500 Companies in Scotland

• Ranked higher than

Scottish Sea Farms Investments

• SSF owners have invested +£71 million since ownership in 2001• Major capex plan in freshwater ‘14 & ‘15 - £22 million• Further investment new marine sites in ‘14 & 15 - £11 million

Careers in Scottish Sea Farms

Production Director

Site Manager

Senior Husbandryman

Husbandryman

Sales & Commercial Manager

Export Sales Manager

Sales Administrator

Quality Manager

Quality & Environmental System Supervisor

Quality Assurance Supervisor

Processing Microbiologist

Laboratory Manager

Finance Controller

Management Accountant

Accounts Payable Administrator

Credit Controller

Freshwater Production Manager

Freshwater Site Manager

Senior Technician

Freshwater Technician

Vet

Production Biologist

Quality Assurance Biologist

Biomass Assessor

Net Station Manager

Environmental Co-ordinatorProcessing Supervisor

Filleting Manager

Harvesting Supervisor

Processing Team Leader

Processing Operative

Dispatch Co-ordinator

Hygiene Supervisor

Hygiene Operative Engineer

Apprentice Engineer

Community

Eadar Glinn Care Home, Argyll Northmavin Community Development, Shetland Lochcarron Sailing Club

Community engagement – Perception, recruitment & the right thing to do!

Orkney Youth Development Group (OYDG) • Migdale Hospital, Bonar Bridge in Sutherland • Smiddybrae House, Orkney • NAFC Marine Centre in Shetland • Lairg Angling Club

• TSB Junior Football Club in Shetland & Fraser Park in Scalloway, Shetland • Mallaig and Morvern Community Centre Association • Multiple Sclerosis Therapy Centre, Argyll •

Oban Fireworks • Dumfries Young Curlers Club • Lochcarron Playgroup • Lairg & District Learning Centre • Orkney Athletic Club • East United Football Club, Orkney •

Northmavin Under 5’s Group, Shetland • Barcaldine Primary School • Sutherland Schools Pipe Band • St Andrew’s Hospice, Airdrie • Eday Community Sports Project • Oban

Lorn RFC • Lismore Primary School • Mallaig Primary School P7 • Highland Sunflower Ball

Scottish Sea FarmsQuality Assurance

•Extensive Certification delivering• Customer Assurance• Food Safety• Traceability• A culture of Best Practice

•218 External audits per year – +2,000hrs / year of site time

•4 Farm audits every week, notified, unannounced, short notice

SSF Market Approach

•Key Markets• UK 60%• USA 20%• France 10%• China 3%• Other 7%

•Exporting to 25 countries

• Total Export value in ‘13 of £51 million

• Increase value increase of 72% from ’12, volume +23.5%

• Increasing demand from global markets

Bloody Bay site - Mull

Mangaster Site - Shetland

Wildlife – Orkney

Wildlife – Mull

Thank You

• Our company ethos is to farm market differentiated Scottish salmon using trained, motivated, skilled staff while applying appropriate technology where it generates environmental and/or production benefit.

• Husbandry excellence, above all else, characterizes Scottish Sea Farms