Nireus Aquaculture S.A.

Company Presentation - Investors

Athens Greece | December 2014

Nireus: A unique value proposition

1. Very attractive market fundamentals for fish farming

2. Nireus is No. 1 in Mediterranean fish farming

3. Unique competitive advantages for Nireus:

a. extended product mix
b. the largest customer base globally
c. controls the full production value chain
d. experienced management
e. proprietary know-how

Vision:

to become a top tier global player

in the fish farming industry

Aquaculture - resilient high growth

2005 FAO projection

U.S. Projected Consumption

Growth, 2000-2020

for World Aquaculture and Fisheries Captures

Captures

Aquaculture

Population

Fish Supply (mi.

Ton.)

10

200

150

100

50

0
1970 1980 1990 2000 2010 2020 2030

Population (bi.)

250

Citrus Fruit

27

Fish

26
20

Vegetables

17

Dairy

16

Sugar

15

Beef
Processed Potatoes

Percent Change in Quantities Consumed, 2000 2020

FAO: Aquaculture will serve 100% of the growing

demand for seafood

(fisheries circular no. 1001)

USDA: Fish consumption is expected to grow by 26%

annually till 2020 2nd largest increase in the food sector
(USDA, ERS, 2003)

Time Magazine: The Future of Fish Can farming save

the last wild food?

Economist: Blue Revolution The promise of fish

farming

Med fish farming: a multi-species cultivation

Production of Seabass and Seabream
1995-2015e ('000t) - source Kontali

Seabream (Sparus aurata)

350
300
250
200
150
100
Seabass (Dicentrarchus labrax)

50
0
1995

2000

2005

2010

2015e

The advantages of multi-species cultivation

Profit stability
Spread of the risk from price fluctuations
Reduced capital needs

Meagre (Argyrosomus regius)

Transfer and sharing of technological and

biological advances
Improved operating margins
Marketing synergies
4

Greek fish farming: bass & bream industry leader

Fresh fish exports from Greece
1999-2013 (mi. ) - source: HEPO

Greek Fish Farming Industry

Mediterranean Leader 2014
Greece

118.000

Turkey

600

102.000

Spain

500
400

37.000

Italy

300

14.000

200

Croatia

6.100

France

100

6.000

25.000

50.000

75.000

100.000 125.000 150.000

0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Production (ton.)

The Greek aquaculture

Greek fish farming industry

consolidation over time
318

400

300

330

315

302
260

the 2nd most important key

229

200

193

175

sector is a rising star and

167
125

106
80

100

economic sector for the

growth of the Greek

0
1997

2000

2003

Companies

2006

2008

2010

economy

Licenses

Industry data: Federation of Greek Mariculture

Source: Mc Kinsey, Greece 10

Production data: Kontali Analyse

Years Ahead, Sept 2011

Sales rank of European fish farmers - 2013

Sales Rank of European farmers - 2013
Company

Country

Fish

2013
sales
(mi. )

Marine
Harvest

Salmon

2.296

Leroy

Salmon

1.287

Salmar

Salmon

747

Cermaq

Salmon

616

Grieg

Salmon

288

Nireus

Bass Bream

199

Selonda

Bass Bream

130

Andromeda

Bass Bream

119

Sales for Dias are estimates

Nireus holds the dominant position in both

the domestic and the global market

6
exchange rate 31.12.2013: 1 = 8.363

With experience in multi-species cultivation

Seabream

Seabass

Common dentex

Common Pandora

White seabream (sar)

Stripped seabream

Meagre

Sharpsnout seabream

Pagrus

A leading genetic selection program

Genetic Selection Program Overview
Breeding Nucleus

Challenge Tests
(n diseases)

Disturbance traits
(e.g. carcass quality)

Data

BLs
Selection
EBVs

Testing Units

Breeding
Candidate
Testing
(weight)

Brood stock
Maturation
Hatcheries

Genetic
Evaluations

Field Performance
(n environments)

Tagging

Family prod.
& Larviculture

Commercial
end Users
Cage Farms

Biosecure
EBV: Estimated Breeding Values
BL: Broodstock lines

NIREUS genetically selected bass and bream gain 37% more weight
versus non-selected fish for the same farming period
8

Unique know how in new technologies

Algae - culture

Nireus algae R&D / production facilities

Algae-culture has received global

attention following ExxonMobils recent
$600mm investment in algae-based
biofuels
Algae research is focusing on a wide
range of applications:
Fish & other feeds
Spirulina nutrition supplements
Polysaccharites
Cosmetics
Collagen
Biofuels
Nireus has market leading R&D and
operations for algae culture
9

Production facilities in Greece, Turkey, Spain

Fish feed

Juveniles

Fish farming

Packaging

Processing

Greece

Turkey

Spain

: 10 gr juveniles pre-growing units

Vertically integrated operations ensure:

Completely safe production conditions => less risk from disease

Absolute control over the production cycle => lower cost

10

With vertical integration from farming to distribution

Fish Farming
5
hatchery
units

Processing
35
farms

7
packaging
centers

1
processing
center

Distribution
Distribution
in 40 +
countries

PLUS

4 inland pre-fattening units producing 10 gram juveniles

1 R&D center

2 Factories producing 90.000 tons of fish feed - free of gmo

1 company producing fish cages & nets

1 company selling genetic material, feed, equipment and health
products to cattle, poultry and swine farmers (KEGOagri)
11

An extended product mix

Fish feed gmo free

Nets & Cages

Seabass, Seabream, Meagre, Pagrus

Fresh and frozen, whole, gutted, fillets

Genetic Material, feed, equipment & health

products to industrial livestock farmers

Juveniles

12

Sales to the largest markets in Europe

13

The #1 exporter in the Greek food sector

Sales Breakdown 2007-2014(%)

Exports Evolution 2013-2014

in mi.

9M 2013

9M 2014

Greece

33.53

29.88

EU

92.92

96.32

Other

25.46

24.02

14

Exporting 92% of produced fish to 40 countries

Sales
Production and Sales

Every week we ship 600 tons of seabass and

seabream ( = 1.5 million 400 gr. fish ) to >
400 clients in 40 countries
15

With exports growth coming from new markets

Exports Evolution
EU

Exports growth is coming from

new markets

Non-EU

5 year CAGR
31,9
2013

122,3

EU countries:

6.14%

Non-EU countries: 20.63%

12,5
2008

90,8
0

50

100

150

Sales (mi. )

in mi.

2008

2013

% 2008-2013

EU

90.76

122.26

35%

Non-EU

12.51

31.95

155%
16

Significant growth potential

Fish

Sales

Sales growth
potential

Capacity

% of 2013
Revenues

Sales 12:
Sales 13:

31.600 t
32.900 t

+15%

Capacity: 37.900 t

80%

Juveniles
Sales 12:
Sales 13:

49 mi. pieces
53 mi. pieces

Fish feed
Sales 12:
Sales 13:

11.400 t
12.800 t

+100%

+23%

Capacity: 200 mi. pieces

Capacity: 90.000 t

5%

8%

Current fish farming capacity can expand under the new carrying capacity law

17

Balance Sheet
Assets
9M 2014

9M 2013

12M 2013

Property Plant and Equipment

84,94

87,78

86,94

Goodwill

30,72

30,77

30,77

Biological non-c urrent

83,70

60,25

70,06

16,09
215,46
63,63
11,11
49,53
11,08
8,39
143,74
359,20

16,10
194,89
141,20
11,17
56,48
18,07
11,60
238,52
433,41

16,46
204,23
100,09
10,74
49,83
14,71
9,14
184,50
388,73

9M 2014
47,62
(6,43)

9M 2013
99,29
(6,97)

12M 2013
64,58
(6,90)

41,19
1,56
14,33
15,89
53,06
228,83
20,23
302,12
318,01

92,31
41,28
13,02
12,65
66,94
67,77
180,68
25,71
274,15
341,10

57,69
38,30
5,73
12,53
56,57
61,23
193,54
19,70
274,48
331,05

359,20

433,41

388,73

in mi.

Other non-current
Total non-current
Biological current
Inventories
Trade Receivables
Other current
Cash & equivalents
Total current
Total assets

Equity and liabilities

in mi.

Shareholders' equity
Non-controlling interests
Total shareholders' equity
and non-controlling
interests
L/T bank borrowings
Deferred inc ome tax liabilities
Other non-current liabilities
Total non-current liabilities
Trade & other payables
Current bank borrowings
Other current liabilities
Total current liabilities
Total liabilities
Total equity and liabilities

Financials

18

Income Statement
in mi.

9M 2014

9M 2013

115,31

115,41

149,47

34,90

36,50

49,11

150,22

151,91

198,58

(23,97)

(39,98)

(71,27)

Raw material consumption

(74,68)

(79,39)

(107,43)

Salaries & personnel expenses

(21,14)

(23,41)

(30,85)

3rd party fees and benefits

(15,21)

(15,07)

(19,99)

Other operating expenses

(21,18)

(20,66)

(31,82)

Biological Sales
Non-Biological Sales
Total Sales
Effect of measurement of biological
assets at fair value (*)

Other income

1,47

1,57

12M 2013

2,62

Operating expenses reduced

by 6.53 mi. (4.7%) to
133,36 mi.

Operating EBITDA (before

biological adjustment)
improved by 9.4 mi. to
10.5 mi.

EBITDA after biological adjustment

(4,48)

(25,04)

(13,80)

Biological adjustment

(14,98)

(26,10)

(46,38)

EBITDA before biological adjustment

Earnings / (loss) before interest
and taxes (EBIT)

10,50

1,06

(60,17)

Net results impacted by

(9,98)

(30,70)

(67,74)

Earnings / (loss) before taxes (EBT)

(20,21)

(46,42)

(87,43)

(15) mi. negative biological

adjustment

Tax

3,58

Earnings / (loss) after taxes (EAT)

Equity holders of the parent
Non-c ontrolling interests
Earnings per share ()

(16,63)

4,63

11,95

(41,79)

(75,48)

17,21

(41,15)

(75,07)

0,59

(0,64)

(0,41)

(0,6464)

(1,1791)

(0,2703)

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Financials

Cash Flow Statement

in mi.
Profit before tax
Depreciation

9M 2014
(20,21)

9M 2013
(46,42)

12M 2013
(87,43)

5,91

6,07

8,12

Miscellaneous other charges

11,08

16,93

24,31

Fair value adjustment

15,00

26,10

46,37

Reduction /(increase) of inventories

7,44

11,19

22,65

Reduction /(increase) of receivables

(Reduction)/increase of trade & other
payables

2,87

(8,17)

(2,22)

CFO 10.7 mi.

(8,38)

9,73

2,04

FCF 7.4 mi. up 17%

Interest expenses paid

(2,87)

(3,76)

(6,42)

Taxes paid

(0,14)

(0,03)

(0,24)

Trade & other receivables

reduced by 2.9 mi.

Trade & other payables

reduced by 8.4 mi.

Cash flow from operating activities

10,71

11,64

7,19

Net (Investments) / Divestments

(3,27)

(5,32)

(6,85)

FCF Free cash flow after operations

and investments

7,44

6,33

0,33

2,44

0,17

0,20

Cash flow from investing activities

(0,83)

(5,15)

(6,66)

Cash flow from financing activities

(9,50)

(5,67)

1,22

0,38

0,82

1,75

Cash and cash equivalents at the

beginning of the period

3,62

3,01

3,01

Foreign exchange adjustments

0,23

(0,31)

(1,14)

4,23

3,52

3,62

Subsidies & received interest

Total cash flow reporting period

Cash and cash equivalents at the

end of the period

Financials

20

Sales by Business Sector

Sales by sector for 9M 2014
(% distribution)

Fish farming = fish + juveniles sales (own +3rd party)

Other = aviculture and animal culture products sold through the
100% subsidiary KEGOagri & fish farming equipment

Sales of fish farming up 0.4 mi from higher fish sales value with lower juveniles
sales
Feed sales down (2.4) mi.
Sales of aviculture, animal culture products & equipment up 0.3 mi

Fish sales value stable at 84% of total

Feed and juveniles sales reduced from the adoption of stricter credit controls due
to the challenging domestic economic environment

21

Stock Market Performance

Nireus versus General Index & FTSEM 9M

Shareholders structure
Domestic
Institutions
4%

Foreign
Institutions
25%
`

Basic
Shareholders
32%

Public
39%

Overview of Nireus Stock

Price () 28.11.2014

0.118

Bloomberg Ticker

NIR:GA

Number of shares (mi.)

63.7

Reuters Ticker

NIRr.AT

Market cap (mi )

7.5

ASE Ticker

NHP

High / Low 52 weeks ()

0.358/ 0.1

ASE Sector

3M Av Daily Turnover(000)

26

Agriculture & Fisheries

22

Appendix

Cost dynamics in fish farming

Price
Sea bass and sea bream: price development 2013-2014
Industry outlook
Feed consumption juveniles input
The IFRS 13 & IAS 41 for biological assets
Communication & Financial Calendar

23

Cost per kg

Cost dynamics in fish farming

Operations + Disease + Mortality

Normal Operations

cost - Mortality
Operations + Disease
cost - Disease
cost - Weight

Harvest Weight

Vertical structure ensures less risk from disease

The 10-gr juvenile pre-fattening units target reduction in mortality
24

Bass & bream Weekly price development 2014

Seabass (Dicentrarchus labrax)

Seabream (Sparus aurata)

Source: Kontali analyse Seabass & Seabream Oct 2014 monthly report
Mercamadrid prices are wholesale and indicative of the price trend actual fish prices vary by size and market

25
External Factors

Feed Consumption and Juveniles Input

Fish feed data: Kontali Analyse

26

Production evolution 1998-2015e: Vol & % change

27

Appendix: IFRS 13 & IAS 41 for biological assets

Fish farming companies are required to calculate and
report the fair value of their biomass and the interperiod adjustment to the net fair value (IFRS 13 &
IAS 41).

Fair value of
biomass (B.S.)

Volume x Price

The fair value of the biomass is calculated as volume (kg)

x market price at the end of the period and is
adjusted for the part that is not ready to harvest.

Key Drivers

Volume
Price

Biological Sales
(I.S.)

The sales of fish &

juveniles produced to
include processed fish

Non-biological
sales (I.S.)

The sales of fish &

juveniles produced by
others, fish feed, nets,
other products

Total Sales
(I.S.)

Biological sales +
Non-biological sales

Effect of
measurement
of biomass at
fair value

The inter-period
difference in the fair
biomass value

The key drivers are the volume and weight of the biomass
and the market price at the time of the calculation.
The ready to harvest part of the end-of-period biomass is
reported in the B.S. as a current asset and the not
ready to harvest as a non-current asset.
Sales in the I.S. are separated into biological and nonbiological. Biological sales represent sales of juveniles
and fish (raw and processed) produced by the
company. Non- biological sales represent the sales of
the fish/juveniles produced by others, the sales of fish
feed, equipment, and other products.
The effect of measurement of biological assets at fair value
is added to (subtracted from) sales, and is computed
as follows:
biomass at beginning of period
(+) purchases of biological assets for production
(-) biomass at end of period
= effect of measurement of biomass at fair value

28

Communication Financial Calendar

Investor Relations
Financial Calendar 2014
12M 2013 Results
Monday, 31 March 2014

Ms. Maria Kotsovou, IR Manager

Tel. +30 210 66 98 335
Mob. +30 693 66 98 335
Email m.kotsovou@nireus.com

3M 2014 Results:
Friday, 30 May 2014
Ordinary AGM:
Monday, 30 June 2014
6M 2014 Results:
Friday, 29 August 2014
9M 2014 Results:
Friday, 28 November 2014

Legal Notice
This presentation has been prepared solely for informational purposes. Any
projections or other estimates in this presentation, including estimates of returns or
performance, comments with respect to our objectives and strategies, or the results
of our operations and business, are forward-looking statements based upon certain
assumptions that may be wrong. These assumptions may be influenced by factors
within or beyond our control, and actual results may differ materially from any
estimates and projections. Factors influencing actual results include but are not
limited to fluctuations in fish prices and raw material prices, the effects of
competition in the areas in which we operate, changes in the economic environment,
regulatory and economic conditions. This presentation is not an offer to buy or sell or
a solicitation of an offer to buy or sell any security or instrument or to participate in
any trading strategy. No part of this presentation may be construed as constituting
investment advice or a recommendation to enter into any transaction. No
representation or warranty is given with respect to the accuracy or completeness of
the information contained in this presentation, and no claim is made that any future
offer to transact any securities will conform to any terms that may be contained
herein. Before entering into any transaction, investors should determine any
economic risks and benefits, as well as any legal, tax and accounting consequences of
doing so, as well as their ability to assume such risks, without reliance on the
information contained in this presentation.

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