November 21, 2017
Good Northern Pelagic Catches North: Normalization of temperatures at sea; abundant biomass near Iquique; low costs. Thousands of tons 49 52 34 18 11 1 7 5 2016 2017 2016 2017 2016 2017 2016 2017 E Q1 Q2 Q3 Q4 34 140-145 2016 2017 E Year Northern catches include own and third parties Industrial anchovy catches (after H2 ban) 100% 100% 100% 73% 25% 100% E 77 55 40 52 21 4 X% Catches at the end of the year with respect to the annual quota 2012 2013 2014 2015 2016 2017 E Affected by El Niño 2015-2016 Company s estimations are based on current information, which could change due to deviations 2
South-Central Pelagic Catches J. Mackerel: Normal fishing conditions vs very favorable conditions in 2016. Sardine: Normalization in 8th region. Third parties catches doubled as of September. Thousands of tons Jack Mackerel Sardine (own) Sardine (third parties) 106 110-115 12 23 2 22 28 8 2 31 4 8 4 17 14 7 9 11 3 3 1 2 2 3 2016 2017 2016 2017 2016 2017 2016 2017 E Q1 Q2 Q3 Q4 50 57 21 10 35 45 2016 2017 E Year Company s estimations are based on current information, which could change due to deviations 3
Fishmeal Price As of September, prices down due to higher quotas and catches in Peru. US$ / ton (Camanchaca) Peru s Fishing Quota (North-Centre Region): Nov to Jan: No quota May to Jul: 2.6 M Ton (98% catched) Nov to Jan: 1.1 M Ton (99% catched) May to Jul: 1.8 M Ton (51% catched) Nov to Jan: 2.0 M Ton (98% catched) May to Jul: 2.8 M Ton (85% catched) Nov to Jan: 1.5 M Ton (starting: Nov 23) 1,850 2,013 2,247 1,844 1,613 1,760 1,570 1,592 1,676 1,551 1,471 1,384 1,425 Prime Fishmeal Price (Chile) IFFO week 45 2017 1,490 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 1,780 1,600 1,404 4
Camanchaca Diesel Price (US$/lt) 0.84 0.84 0.82 Diesel Oil Price (US$ / lt) 0.70 0.54 0.54 0.49 0.43 0.30 0.37 0.39 0.41 0.44 0.42 0.41 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 As of September 2017: At constant volume, increased fuel costs of US $ 1.3 million vs 2016. Fuel cost is approx. 15% of the total cost of fishmeal production (anchovy and industrial sardine). 5
Stocks (valued at cost) As of September, decrease of fishmeal inventories (US$ 1,095 / ton). Increase in mussels (US$ 2.5 / kg) compared to September 2016 September 30, 2017 December 31, 2016 September 30, 2016 December 31, 2015 VOLUME Months of Production ThUS$ VOLUME ThUS$ VOLUME ThUS$ VOLUME ThUS$ SALMON Atlantic Salmon (Tons) 3,560 2.1 32,229 2,595 23,763 3,676 32,471 7,458 42,198 Salmon Total 32,229 23,763 32,471 42,198 FISHING Fishmeal (Tons) 2,703 0.6 2,960 1,235 2,098 3,908 5,014 5,793 6,937 Fish oil (Tons) 407 0.3 463 38 353 291 511 846 1,896 Frozen Jack Mackerel (Tons) 5,390 6.5 2,064 31 16 1,045 535 1,185 694 Canned Fish (thousands of boxes) 569 6.8 7,028 449 5,719 736 9,368 43 664 Langostino Lobster (Tons) 153 3.1 2,133 92 1,180 229 2,742 225 2,824 Fishing Total 14,648 9,366 18,170 13,015 OTHER SEAFOOD Mussels (Tons) 3,401 4.1 8,470 3,094 5,275 2,317 4,578 2,280 5,304 Abalone (Tons) 56 3.4 1,370 79 1,788 80 1,644 86 1,969 Scallops (Tons) 0 0 0 5 51 12 177 19 157 Other Seaafood Total (Tons) 9,840 7,114 6,399 7,430 COMPANY TOTAL 56,717 40,243 57,040 62,643 6
Atlantic Salmon Price Normalization in prices due to higher Chilean harvests in H2 with an estimated increase of ~4% in world supply in 2017. Lower harvests in Q1-17 due to Bloom 2016 and lower smolt stocking in 2015. Harvest (Thousands of Tons WFE) Price (US$ / Kg WFE) Δ+69% 7.1 2016 2017 5.8 Δ+29% 7.5 6.2 Δ+5% 6.5 6.8 5.6 Δ+16% 6.5 4.2 16.0 33 34 9.1 4.8 6.7 5.3 9.0 7.8 7.9 Q1 Q2 Q3 Q4 E Year E Company s estimations are based on current information, which could change due to deviations 7
jan-04 jul-04 jan-05 jul-05 jan-06 jul-06 jan-07 jul-07 jan-08 jul-08 jan-09 jul-09 jan-10 jul-10 jan-11 jul-11 jan-12 jul-12 jan-13 jul-13 jan-14 jul-14 jan-15 jul-15 jan-16 jul-16 jan-17 jul-17 nov-17 Atlantic Salmon Price: Long-term trend Urner Barry Equivalent Trim C 2-3 (US$/Lb) Large devaluation in major markets and non-tariff restrictions Algae bloom ISA Virus Overshooting recovery post ISA 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 Δ supply (Source: ABG Sundal Collier): 5% 4% 2% 10% 7% -2% -1% 12% 22% 2% 9% 4% -7% 4% E 8
Chilean Salmon Price Expectation until Sep-18 Urner Barry Trim C 2-3, market spot USD/Lb 6.50 6.00 5.50 5.00 4.50 4.00 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Fishpool Index Forwards Based Model Adjusted By: Seasonal Historical Demand in the USA US vs European salmon offer growth differences Estimates subject to supply and demand fluctuations Source: Kontali, Fishpool, own analysis 9
Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Sep-17 Atlantic Salmon: Return of the raw material (relative performance) Camanchaca vs Market (Salmonex, January 2015 = Base 100) 200 180 160 140 120 100 80 60 40 20 0 Urner Barry Salmonex Camanchaca Lag in months with strong spot price increases (Mar - Jun 2016 and Jan - Feb 2017) As of September 2017: Camanchaca s return exceeds Salmonex (+23 cent) and Ubarry (+33 cent) indices 10
Salar Stocking in Chilean Industry Salar Stocking January to September (mill. of smolts), 10th, 11th and 12th región 104 +4% 106 100 100 101 100 +5% 80 2012 2013 2014 2015 2016 2017 Source: Undersecretariat for Fisheries and Aquaculture 11
Salar Stocking and Stocking Plans: 10th and 11th regions Salar Stocking previous cycle vs post new regulation cycle (mill. of smolt) 25.0 Previous Cycle (same neighborhoods) Current Cycle (considers new regulation) 143 +9% 156 20.0 15.0 Considers neighborhoods opened between Sep-16 and Sep-17 10.0 5.0 0.0 Total Source: Undersecretariat for Fisheries and Aquaculture 12
History and Projection of Harvests and smolt stocking in Camanchaca Harvests (Thousands of Tons WFE) Atlantic salmon from current active sites Atlantic salmon from previously leased sites Trout 64 64 56 58 58 51 41 43 36 39 2014 2015 2016 2017 E 2018 E 2019 E 2020 E 2021 E 2022 E 2023 E Includes one third of the trout harvests originated by the joint venture business started in 2016 Salar smolt stocking (mill. smolt) 8.9 8.0 8.4 9.8 11.9 11.3 2014 2015 2016 2017 E 2018 E 2019 E Estimate in November 2017 subject to variations due to future strategic decisions of the Company, changes in regulation, state of sanitary conditions or any other event not contemplated with the information available to date 13
Salar Health Conditions in Camanchaca (closed cycle) Q1-16 affected by harmful algae bloom (HAB) event. Favorable sanitary conditions starting in Q2-16 Mortality 2015 2016 2017 64.3% 36.8% 8.7% 5.5% 5.4% 19.2% 5.4% 14.2% 9.0% 4.2% 12.9% 5.5% 9.5% 10.9% 7.0% E E Q1 Q2 Q3 Q4 Year Economic Feed Conversion Ratio 2.87 1.35 1.25 1.30 1.58 1.21 1.36 1.33 1.38 1.35 1.20 1.23 1.35 1.66 1.26 E E Q1 Q2 Q3 Q4 Year Company s estimations are based on current information, which could change due to deviations 14
Atlantic Salmon Costs Q4-15 and H1-16 affected by SRS and low oxygen conditions in the 10th region. Q2-17 affected by harvests coming from third-party-hatchery smolts. Q3-17: downward costs. Atlantic Salmon - Liveweight ex-cage cost (US$ / kg) Feed OPEX Smolt Labor Medicine Others 2.95 2.92 3.02 3.08 3.66 3.75 3.09 2.79 2.79 3.34 3.13 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 3.01 3.31 Company s estimations are based on current information, which could change due to deviations 15
Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Dec-17 Development of Atlantic Salmon Margins Back to positive margins in Q2-16 increased in H2-16 Q2-17 affected by harvests coming from third-party-hatchery smolts Raw Material Cost and RMP (Raw Material Return) Base 100 = RMP January 2014 130 120 110 100 90 80 Leptepu Cahuelmó Lamalec Licha Contao Puelche Mañihueico Islotes Izaza Edwards Ahoní Pilpilehue Cabudahue Puerto Arg. F.Largo Leptepu Cahuelmó Forsyth Johnson 2 Loncoch. Marilmó Porc. 10th region sites Puelche Licha 11th region sites Ahoní Pilpileh.- Maril. Islotes --Izaza-- P. Arg. Porc. --Edwards-- F.Larg. 70 60 50 RM cost before processing RMP 16
Development of Atlantic Salmon Margins EBIT (US$/Kg WFE) before Fair Value in the Salmon business 3.0 2.5 2.0 1.5 1.0 0.5 0.0-0.5-1.0 Atlantic Salmon Business EBIT without trout joint venture 1.29 0.91 0.50-0.24 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 0.64-0.10 0.72 1.67 0.63 1.30 Atlantic Salmon Business includes other Revenues and Costs due to services and sales to third parties, and intercompany salmon sales to our offices abroad. 17
Results January September (US$ million) 2016 2017 Profit/Loss 23.8 26.2 15.8 21.2-0.7-3.3-1.6-7.2 Fishing Salmon Other Seafood TOTAL EBITDA (before Fair Value) 36.5 42.2 3.6 6.6 12.4 0.5 16.5 Fishing Salmon Other Seafood TOTAL -1.0 18
Last 4 mobile quarters development EBITDA Revenues X% EBITDA/Revenues 485 12.4% 60.0 496 13.3% 66.1 489 12.0% 58.7 462 453 10.2% 10.0% 45.1 47.1 439 4.9% 21.6 470 446 2.3% 1.8% 10.1 8.7 483 3.0% 14.5 488 487 6.7% 32.8 11.4% 55.4 479 13.4% 64.0 454 12.9% 58.5 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 19
Last 4 mobile quarters development FISHING 163 184 179 161 169 33.1 22.6 29.0 27.3 18.8 146 147 141 15.7 18.9 15.6 126 6.7 107 105 121 123 SALMON 288 279 275 260 263 263 269 38.2 31.5 27.5 25.6 20.1 6.7 299 328 233 8.2-6.9-9.7-5.7-4.0 353 352 330 302 247 242 223 202 63.6 68.7 38.8 63.0 Total Revenues Own Revenues EBITDA -7.5-5.8 OTHER SEAFOOD 33 33 35 32 30 31 31 30 29 28 29 29 28 1.6 2.2 0.8 0.9 1.5 1.0-0.8-0.3-0.8-1.3-1.0-0.5-0.5 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 20
Salmones Camanchaca: IPO Process Corporate Reorganization of Salmones Camanchaca: Extraordinary shareholders meeting on September 14, 2017 Capital increase amount: US$ 38,579,359 Issuance of 340,266 shares subscribed and paid by the Parent Company with: Capitalization of contributions: US$ 19,500,024 Fiordo Blanco shares transfer: US$ 18,712,484 Surproceso shares transfer: US$ 366,851 Registration Process with Chilean and Norwegian Authorities (starting 3rd week of September) Designation of new Directors at Salmones Camanchaca Tore Valderhaug - former CEO and former CFO of Cermaq Felipe Sandoval Chairman of Salmon Chile Estimated Placement Date: First Quarter 2018 21
Debt Refinancing 2017: US$ 165 million Debt repayment schedule (US$ mill.) Debt Refinancing 2013 Debt Refinancing 2017 139.1 86.7 8.16,3* 8.16,3* 9.16,3* 6,3* 6.7 16.7 6.7 16.7 6.7 May 2018 Nov 2018 May 2019 Nov 2019 May 2020 Nov 2020 May 2021 Nov 2021 May 2022 Nov 2022 Prepaid repayments in case IPO takes place 22
Debt Refinancing 2017: US$ 165 million Tranche A: TERM LOAN Amount: US$ 25 million to the parent Company (term of 2 years) Amortizations: Semiannual (4 in total) Prepayment if IPO takes place Tranche B: REVOLVING LINE Amount: US$ 40 million to the parent Company (term of 5 years with 2.5 of grace period) Amortizations: Semiannual (6 in total starting in month 30) Availability fee: 0.35% on applicable margin Tranche C: REVOLVING LINE Amount: US$ 100 million to Salmones Camanchaca(term of 5 years with 3 of grace period) Amortizations: 2 of 10% (end of year 3 and 4) Payment in year 5 of the remaining 80% Availability fee: 0.35% on applicable margin Financial Covenants: Net Debt / LTM EBITDA < 4.0x and Net Equity/ Assets > 40% Interest Rate: according to Net Debt / EBITDA ratio In case of IPO: Libor + 2.25% to 3.25% Without IPO: Libor + 2.5% to 3.5% 23