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The Role of PrivateEquity in Aquaculture

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New York

Dubai

! Oceanis is the worlds first globalprivate equity player to be dedicated

exclusively to the seafood and aquaticresource sector

! Founded in 2010, the company hasoffices in Dubai and New York

! Oceanis works with a selected numberof investors through customized

investment structures

! Our team combines capital markets,private equity, strategy consulting and

aquatic resources operational /

technical expertise

Oceanis Partners Key Highlights

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SUPPLY

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34.8

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43.638.9

0

10

20

30

40

50

60

2005 2006 2007 2008 2009 2010 2011

Non-alternative Alternative

Global Assets Under Management Institutional andRetail2005-2011, USD Trillions

! Despite a very public flame-out during the financial crisis,

alternative investments grew

up to USD 6.5 TN in 2011,

around 15% of the global

institutional and retail

investment market

! This represents acompounded annual growth

rate of 14.2% over 6-year

period, outperforming

traditional asset class growth

! Alternative includes PrivateEquity, Hedge Funds, Real

Estate, Infrastructure and

Commodities

Comments

CAGR

1.9%

14.2%

Source: McKinsey Financial Investment Practice

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4.2

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4

5

6

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2009 2011 2013E

Average Percentage of Total Portfolio AUM (simpleaverage)

2009-2013 ExpectedPrivate Equity Hedge Funds

4.1

5.9 6.5

0

1

2

3

4

5

6

7

2009 2011 2013E

Real Estate

0.72 2.2

0

1

2

3

4

5

6

7

2009 2011 2013E

Commodities

! Private Equityspercentage allocation

will more than double

from 2009 to 2013,

particularly in the US

market where it will

reach 7.3% (5.1%

expected in Europe)

Comments

Source: McKinsey Financial Investment Practice, Global Survey on Institutional Investing, 2011

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! Thematic investing is about capitalising on future macro trends, as opposed toallocating to incumbent sectors, based on the assumptions that past winners will

continue to win

! Increase of thematic PE and venture capital funds observed in the last decade! Examples of popular thematic funds:

" Clean-tech

"Agriculture

" Timberland

" Biotech

" Healthcare

" Energy & Natural resources

SUPPLY

At our recent London Ideas Exchange

conference, the majority of the audience believed

that thematic investing is an under-exploited way

to capture value

Towers Watson (firm), March 2011

In our view, investors should focus on thematic

private equity investment

Credit Suisse Research Monthly, Swiss edition June 2010

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! Substantial capital gains

! Dividends

Risk-adjustedreturns

Control

Downside

protection

!Ability to steer key strategic decisions,

and protect their interests

! Minority positions with negative control

are acceptable to some funds

!Avoid losses in any possible scenario

! Have a clear Plan B

! Empirical support for the strategic plan and

financial forecast

! Exit options after 4-6 years

Visibility

Typical PE Investors Core Goals

3-4 X

5 Years

SUPPLY

Multip

leof

Investment

Expected Return Profile -Conceptual

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Total Market

SizeUSD 500 BN

USD 30 BN

! Total seafood and aquaculture market

(yearly revenue) is estimated at USD 500

BN1

!Yet the aggregate market capitalization ofpublic companies accounts for less than

USD 30 BN (June 2012)2

! Private owners control more than 90% of

the sector

! In comparison, private owners only control

25% of the total US economy

! Marine Harvest, the largest public

company is only USD 3 BN market cap

Comments

Seafood & Aquaculture Market Size Comparison

Total market capitalization ofpublicly traded companies2

DEMAND

1) Estimate based on annual production of 150MM MT of fish (2012), at an average retail selling value of around 3 USD/Kg

2) Estimate based observing 65 of the largest seafood / aqua companies by market capitalization as of June 2012

Bubbles to Scale

Estimates

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!B

! Aquaculture is one of the most efficient ways to produce animal protein, when considering feed! Furthermore, marine based aquaculture uses very limited fresh water, as opposed to land based

animal production which actually consumes huge volumes

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1) Cattles FCR values vary from 7 to 10, Poultrys from 2 to 4.

2) The analysis does not include water requirements for feed production.

Source: FAO Fishery and Aquaculture Statistics, FAO report Livestocks long shadow, environmental issues

and options.

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DEMAND

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Aquaculture Project - Typical Proposition PE Investors Concerns

Capital atRisk

MaturityStage

! Many business plans for greenfieldprojects

! Often, unproven technology or pilotscale testing that is too small to

extrapolate

! Most of the business plans are highlycapital intensive

! Residual value of CAPEX is minimal ifthe business does not work

Track Record

! Often, track record is flimsy! Limited profits generated, or volatile

performance

! Often, track record just shows mistakesand bad decisions

! Deep industry knowledge anddedicated resources / time

required to assess the

opportunity

! Difficult to protect thedownside

! Risk of total write off in aworst case scenario

! PE investors want to seeproven ability to execute

plans and generate sustained

cash flows with high ROEs

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Timing

! Track records often show that it alwaystakes longer than expected

! Break-even for start ups sometimesrequires more than 5 years

! Typical PE investors requirevisibility on a credibleexitwithin 4-6 years

Aquaculture Project - Typical Proposition PE Investors Concerns

Governance

! Projects are often in jurisdictions withhigh perceived or real political / legal

risk

! Founder frequently wishes to retaincontrol

! Governance and regulatoryissues

! Can they gain control, or atleast negative control?

InvestmentSize

! Many investment opportunities fall belowa minimum threshold ticket size for

institutional investors

!Aquaculture investments maybe perceived to have a low

return-on-effort

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Required Characteristics for a PEinvestor in Aqua

Investor Type

! Patient capital provider

! Long term focus

! Thematic investment mindset

! Commitment to fundamentals

! Desire for inflation protection

! Belief in the efficient protein story

! Family Offices

! Sovereign Wealth Funds

! Endowments

! Pension funds

! Life insurance companies

The aquaculture sector still needs more nurturing and development before it will be seriously

interesting to a large number of classic PE funds. Oceanis therefore works with more patient

pools of capital to catalyse such development

EarlyStage

Later Stage

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Phase

Source ofFunds

! Prove the concept on

semi-commercial

scale! Generate consistent

revenue stream

! Focus on themarket

! Development banks! Founder capital!Angel investors

! Generate some profit! Build a solid scale-up

plan

! Private equity capital

(thematic players)! Reinvested profits

! Reach full vertical

integration!

Diversification intovarious markets and

species

! Private equity capital

(generalists)

! Public markets / banks

!Reinvested profits

Revenues

EBITDA

Ideal Aquaculture Venture Evolution

Years

$

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Y?, OZ[ J&66 &(8,-/ &( 1&N,.,(/ -',+&,-"(1 "/ 8".&):- -/"B,- )> /?, 8"6:, +?"&(

Sea bream

Sea bass

Mussels and Shellfish

AmberjackBluefin Tuna

PrawnExisting Aquaculture Species

To be DevelopedTilapia

\)3&"

Grouper/Hammour

Lobster

Logistics/Processing/Technology/Cages/RAS/Feed

Snapshot of SIV TargetsNON COMPREHENSIVE

& PRELIMINARY

! The MENA region offers good endemic bio-diversityand excellent natural aquatic resources

! Geographic differentiation will minimize extreme risks(e.g. natural catastrophes, diseases, political risk) and

provide overall protection to the invested capital

! The MENA region has the potential to become asignificant international production centre for aquaticproducts

Export to Asia

ExporttoRussia

MENA Demand

Algae

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Y?"(K ]):

Mattia Pipino Oceanis Partners

Bangkok 2012