MARINE FARMS ASAMARINE FARMS ASA- 1 -

By:

Bjørn Myrseth

Vitamar A.S.

E-mail: bjorn.myrseth@vitamar.no

Telephone +4790554963

Conducive framework for investments in aquaculturePresentation Norad Bangkok 17 Jan 2013

MARINE FARMS ASAMARINE FARMS ASA- 2 -

Master degree of fishery biology University of Bergen 1971

Worked with fish farming since 1970

Worked as manager and owner and operator

Founding member of European Aquaculture Society in 1976

Sea Farm A.s. from 1971 to 1987. Partner and CEO

Worked internationally with establishing fish farms in Scotland, USA and Canada

Listed Sea Farm on the Oslo Stock Exchange in 1985

Started Marine Farms A.S in 1987

Worked as owner and CEO

Invested in Chile, Scotland, Greece, Spain and Norway

All the farms developed into succesfull companies

Bjørn Myrseth – education and experience

MARINE FARMS ASAMARINE FARMS ASA

Bjørn Myrseth - education and experience(continued)

Many years of experience from marine hatcheries,cage farming, fish processing

and sales and marketing

Listed Marine Farms on Oslo Stock Exchange in 2006

2010 – Marine Farm ASA purchased by Morpol ASA and delisted.

2011 Receive FEAP award for Excellence in aquaculture

2012 Elected chairman of Morpol ASA

Course at AIT on tilapia production

December 2012 – Morpol ASA sold to Marine Harvest

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MARINE FARMS ASAMARINE FARMS ASA- 4 -

Sea farm A.S – stock market 1985 – merged with Marine Harvest ASA

CEO

Marine Farms A.S – stock market 2006 – sold to Morpol ASA – sold to Marine

CEO –owner CEO Chairman Harvest

Incorporate Vitamar A.S as a company for investments and consultancy services

Bjørn Myrseth - experience

MARINE FARMS ASAMARINE FARMS ASA- 5 -

MARINE FARMS ASAMARINE FARMS ASA

An enabling environment require:

Political will

want it to happen

Functional institutions

Markets

Research and Innovation

Environmental conditions

Capital

Conducive frame work

MARINE FARMS ASAMARINE FARMS ASA

• Species

• Markets

• Environment

• Technology

• Legal framework

• Infrastructure

• People

• Finance

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Conducive farmeworkWhat do I look for as an investor?

MARINE FARMS ASAMARINE FARMS ASA

• High price (or low cost of production)

• Closed life cycle

• Known technology

• Known environmental requirements

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Selection of species to farm

MARINE FARMS ASAMARINE FARMS ASA

• Local demand

• Local species or accepted exotic species

• Export markets

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Markets

MARINE FARMS ASAMARINE FARMS ASA

• Temperature and salinity

• Water quality in general – contaminants

• Environmental data :

– Wind data

– Wave data

– Currents in general

– Algal blooms

– Depth of water

– Fresh water flow

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Environmental conditions in the country I want to invest

MARINE FARMS ASAMARINE FARMS ASA

• Roads

• Electricity

• Harbours

• Fish processing capacity

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Conducive environmentInfrastructure

MARINE FARMS ASAMARINE FARMS ASA

•We can use a known technology

– Ponds or cages

– Known hatchery technology

– Feed requirements are known and feed available

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Conducive environmentTechnology

MARINE FARMS ASAMARINE FARMS ASA

• Possible to train people

• Labour costs not important

• Labour quality more important

– Committed

– High work ethic

– Trainable

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Conducive environmentPeople

MARINE FARMS ASAMARINE FARMS ASA

• 100% foreign ownership preferred

• Rights to sites

– Long leases

– Renewable leases

– Big leases (related to carrying capacity)

– Transferable rights

– No limit to number of sites for one operator

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Conducive environmentLegal framework I

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Conducive environmentDisease prevention

The biggest operational challenge

FISH DISEASES

MARINE FARMS ASAMARINE FARMS ASA

• Fallowing

• Site rotation

• Year class (lot) separation

• Distance between farms

• No aquaculture parks!!!!

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Conducive environmentLegal framework for disease prevention

MARINE FARMS ASAMARINE FARMS ASA

MARINE FARMS ASAMARINE FARMS ASA

Conducive frameworkThe leagal process

• One stop handling of applications

• Clear EIA content

• Time limit for handling of the application

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MARINE FARMS ASAMARINE FARMS ASA

• Importation of equipment and feed tax free

• Corporate tax reductions on profits not so important

• Banks do not belive in aquaculture – too high risks –nothing to mortgage

• Stock insurance

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Conducive environmentFinance

MARINE FARMS ASAMARINE FARMS ASA

Conducive frameworkInformation

• All information packets to investors relate to investments in industry or

agriculture

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MARINE FARMS ASAMARINE FARMS ASA

Conducive frameworkConclusions

Asia has the right natural conditions

environment

between 10 degree N – 10 degree S no storms

experience

Need better legislation

Better disease prevention (legislation, vaccines and diagnostic services)

Infrastructure developments

R & D in all areas of aquaculture

ASIA CAN FEED ITSELF AND MOST OF THE WORLD WITH FISH

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