Joe Hamby27 April 2009

The Future of Tuna An Indication Based on Recent Investments

While the longer term future of the tuna depends substantially on developments with respect to duty regimes, management of the tuna resource, and the consumers perception of tuna, the near term future will be determined by the investments now being made in the industry. The premise is that without investment, there is no future.

Investments in the tuna industry necessarily reflect what decision makers who control funding think about the future and the impact on their investments of possible changes in duty regimes, resource management and consumer behavior.

This presentation will review recent important tuna industry investments with a view to understand the tuna industrys future. Particular attention is given to recent developments in the Western and Central Pacific.

Some of the information in this presentation is sensitive. Most of this information is in the public domain. To protect confidentiality, information is presented regionally or aggregated so as not to compromise the project or the investor.

Thank you to those who provided this information and my apologies to those whose investments have not been counted here. Or maybe well done for keeping your project secret and out of the public domain.

Global Canned Tuna Industry

Boats

Processing Plants

Brands

US$15 Billion

Boats

Active RFMO Tuna Purse Seiners 550 vessels Assume $10m each Value $5.5 billion

There are many more boats than this especially domestic boats that do not fish internationally or do not target tuna or simply are not active

230IATTC

40ICATT

50IOTC

230WCPFC

Plants Primarily tuna- canning or cooked loins

155 plants 12,545 tons of daily processing capacity Assume $10m per 100 tpd capacity Value $1.3 billion

36plants1,380tpd

56plants6,815tpd

15plants1,380tpd

48plants2,970tpd

BrandsMarket CartonsCanada 3.5US 41.9Latin America 19.9EU 63.3Africa 1.8Eastern Europe 0.7Middle East 10.2Japan 11.5Asia 8.9Aust/NZ 3.1Other 8.5Quantity (millions) 173.3

Tuna Brands 86m cartons/year $75m per 1m sales Value $6.5 billion

Brand Value CartonsStarKist $363 4.7MW Brands $506 6.6Bumble Bee $350 4.6Total $1,219 15.9Per Million $77 million

$6,450

$5,500

$1,255

Brands

Boats

Plants$13.4 Billion

Value of Global Canned Tuna Industry

$15 Billion

Investment during last 3 years

US$3 Billion

Brands

Plants

Boats

$1.3 billion

$0.5

$1.2

Tuna BrandsMost of the investment has come in the form of well known transactions

Bumble Bee StarKist MW Brands (John West, Petit Navire)

$1.3 Billion

Market Value DealsAsia Pacific $4 0EU $602 3N. America $713 2Total $1,319 5

Boat Investments- ValueETP$206

WestPac$622

Indian$332

Atlantic$46

$1.2 Billion

Boat Transactions- Number

ETP29

WestPac67

Indian9

Atlantic4

Total 109

Pictures of Plants

$101$81$90

$186

$500 Million in Plants

Pacific Islands 61 Thailand 48 China 23 Indonesia 21 Philippines 17 Korea 10 Vietnam 5

$186m of InvestmentIn Tuna Canneries including Loin Plants

Existing PNA Tuna Processing Plants

PNA

Parties to the Nauru Agreement

Future

Desire by Parties to promote conservation of the tuna stocks and to achieve increased economic benefits

PNA Strategies

VDS:

Preferential access will be provided to locally based purse seiners associated with onshore investment, preferably processing, which provides employment and other economic benefits

Onshore Investment

Better Access=

PNG 2007 National Tuna Industry Development Action Plan

PNG:

Uncertainty of fish stocks

Restrictions on building new boats in Taiwan

Effort capped at 2004 levels

Permanent closure of the high seas areas by PNA

Period closure on FAD fishing

High fish prices

An Investment Opportunity?

Difficult Investment Decision

Raw material

Duty preferences

Access

What do the numbers say?

Utilities

Logistics

Packaging

Supplies

Labour

Government

Culture

+ -

Integrated Projects in PNG

Integrate the economic benefits of tuna purse seine fishing with the financial requirements of island based tuna processing plants

Papua New Guinea

SSTC

RD PNG

Frabelle PNG

Other Approaches Joint venture ownership of fishing boats

Other onshore investment besides processing plants

Expect creative solutions by industry

New Construction

Western Pacific Purse Seiner Deals during last 3 years

DWFN 21 34 55PNA 4 8 12 Total 25 42 67

Sustainability

25 new purse seiners in the past 3 years represents significant growth

The current fleet is about 230 vessels

The PNA countries eliminated the Palau Arrangement limit of 205 purse seiners

Regarding the Western and Central Pacific

We need better science

Is it necessary to stop the growth of the fleet?

Fleet ExpansionIs overcapacity a major risk?

Graph of Atlantic Cod catch and value in Canadian EEZ

Economic development

Entitlement

Sovereignty

Hunger

Jobs

History

Equality

Legitimate Aspirations

Resource ownership

Yellowfin and Bigeye vs Skipjack?

The Future

Brands

Boats Plants

IntegrationJoint venturesInvestmentsAlliances

Resource SharingFinanceTechnical ServicesManagementProcurementAdvocacyComplianceScience

ConsolidationRationalization

B ra n d s $ 6 ,4 5 0 $ 1 ,3 1 9 2 0 %B o a ts $ 5 ,5 0 0 $ 1 ,2 3 2 2 2 %P la n ts $ 1 ,2 5 5 $ 4 5 7 3 6 %T o ta l $ 1 3 ,2 0 5 $ 3 ,0 0 8 2 3 %

Assumed Value

Last 3 Years

Investment Relative to Value of Industry

Sustainability concernsIncreasing regulationsShare loss to private labelNew restrictions on fishingChanging import duty regimes

Despite

Thank You