Seafood consolidation seen from a global
leading Seafood bank
21 May 2013
Anne Hvistendahl
Head of Foods & Seafood, DNB Bank ASA
DNB – a strong bank in a strong economy

Strong fundamentals and market position
 34% owned by the Norwegian State
 Moodys A1, S& P A+, stable outlook
 5 year CDS price among the lowest in Europe ( 73 bps)
 # 1 in Norway and # 2 in the Nordics

Long term relationship bank

Strong sector focus internationally
 One of the world`s leading Shipping and Offshore banks
 A major international player in energy
 A global leading seafood bank – focusing on selected
markets, segments and customers
2
06.04.2015
International footprint
–Reflecting our sector strategies
Norway – a true Seafood nation
Today
Year 875
Seafood: Norway`s second largest export sector
NOK
bln
Norwegian Seafood: further strong growth expected
NOK
bln
9 USD bln
Salmon Farming
76 USD bln
Fisheries
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More than 90% of Norwegian seafood products exported to
international markets
Norway is the second largest provider of seafood in international
markets, export value of approx. USD 9 billions
Salmon (& trout) farming provide for approx. 61% of total export
value
Home to global leading players
New marketplaces for Seafood securities developed, 18 seafood
companies listed on Oslo Stock Exchange

Increase from approx. USD 14 billions in 2010 to approx. USD 41
billions in 2030 and USD 76 billions in 2050.

The established industries (Fisheries, Salmon farming, fishfeed,
suppliers) expected to contribute with the bulk of the growth

New industries especially within “Marine Ingredients”, “Algae” and
“High yield species” expected to develop substantially from 2030
Megadrivers - all in favour of aquaculture

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Blue revolution
Protein race
How to feed the world
Creating growth & consolidation – making
opportunities for investors & lenders
5
06.04.2015
DNB – a global leading Seafood bank
 Core business, strategic ambitions
(exposure USD 6 bill)

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Institutionalized industry knowledge
International footprint
Part of the Norwegian seafood cluster
Long term perspective & customer
relationships
 Strong balance sheet and access to capital
markets – incl. Norwegian HY bonds
 Substantial underwriting capacity
 Strong domestic & international
customer base
 M &A and Advisory services, one-stop
shopping
 Instrumental in salmon farming consolidation
6
06.04.2015
Financing Seafood – a manageable challenge
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Volatility
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Sustainability
Fragmented industry
Biological risk
Political influence on regulations &
markets
Capital intensive
Consolidation helps!
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06.04.2015
Drivers for further consolidation

Growth / expansion
 Economies of scale, bargaining power
 Horizontal & vertical Integration, within and between value
chains
 Access/control to raw materials / distribution channels
 Funding diversification – access to banks & capital markets

Risk reduction
 Diversification
 Balancing supply to demand
 Reduction of biological risks
 Influence on regulation

Sustainability
 Environmental requirements
 Food safety & traceability
 Long term profitability
8
06.04.2015
Recent activity – confirms consolidation trend
Expected development in selected segments

Norway
 Aquaculture: Assets for sale ?
 Fisheries : Need for consolidation

Scotland
 Some players are too small and perhaps one too big

Chile
 Need for fewer and bigger players
 Restructuring of pelagic sector
 Subsidiaries of Pescanova

Peru
 Copeinca ...what happened yesterday ?

US/Canada
 Pollock fleet
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Far East
06.04.2015
Selected DNB Seafood transactions
The Scottish Salmon Company
€ 600 Million
Senior Debt
NOK 950 Million
Senior Debt
GBP 38 Million
Refinancing
EUR 30 Million
RCF
US $475 Million
Bank Facilities
US $ 450 Million
Senior Debt
MLA, Bookrunner and
Facility Agent
Co-Lead Arranger
MLA & Bookrunner
MLA & Facility Agent
Sole Arranger
Sole Arranger
2010
2010
2010
2010
2010
2010
NOK 800 Million
RCF
Sole Arranger
NOK 408 Million
Senior Debt
CAD 300 Million
Corporate Financing
USD 45 Million
WC financing
Sole Arranger
Sole Arranger
NOK 100 Million
Multipurpose Credit Line
USD 20 Million
Term Loan
Sole Arranger & lender
Sole Arranger
2010
2010
2011
EUR 100 Million
Bridge Financing
NOK 4 700 Million
Operating Facilities
MLA & Bookrunner
MLA & Bookrunner
2011
2011
NOK 120 Million
Term Loan
US $ 125 Million
Senior Debt
Sole Arranger
Sole Arranger
2012
2012
Sole Arranger
NOK 1.530 Million
Term Loan
2011
Norway Pelagic ASA
€ 250 Million
Senior Secured
NOK 1.020 Million
Refinancing
MLA & Bookrunner
MLA & Bookrunner
MLA
2011
2011
2011
2012
T. Skretting AS
Aqua Chile S.A
NOK 994 Million
Oslo Stock Exchange
Guarntee
GBP 55 Million
Term Loan &
Overdraft Facilities
Sole Arrenger
Sole Arranger
2013
2013
Doc. Agent / Lender
2011
NOK 100 Million TL
NOK 75 Million RCF
USD 55 Million
Term Loan
2011
Glacier Fish Company
USD 125 Million
Term Loan
Revolver
2010
Sole Arranger
Lender
2010
2010
USD 30 Million
Corporate Financing
NOK 900 Million
Overdraft Facilities
Cash Management
Sole Arranger
Sole Arranger
EUR 500 Million
RCF
USD 30 Million
Working Capital Financing
Sole Lead Arranger
MLA & Bookrunner
2012
2012
2013
Banking the Norwegian Way