Bernt Brodal, American Seafoods

1. NorFishing
August 15, 2012

2. Introduction
• Overview - American Seafoods
• Regulatory Environment and Resource Health – U.S
Eastern Pollock Bering Sea Fishery
• Russian Pollock Fisheries
• Trends Impacting Seafood Prices
• Key Markets
1

3. American Seafoods Company Overview
• Leading worldwide integrated seafood company
– Consolidated revenue of approximately $500 million
– Largest Harvester of fish for human consumption in the United States with 2011 harvest
volume of more than 250,000MT
• We operate in some of the world’s best managed and sustainable fisheries
– Exclusive U.S. Bering Sea pollock fishing privileges results in high barriers to entry
– Also participate in Pacific Cod and Yellowfin sole fisheries in Alaska and the Pacific Hake
fishery off the U.S. Pacific NW Coast
– All the fisheries that we participate in are certified as sustainable by the MSC
• Diverse revenue base
– Sales to U.S., Europe, Japan, Korea, and China
• Experienced management team
2

4. We Operate in Two Primary Business Segments
At-Sea Processing Land-Based Processing
 Harvesting and primary processing of  Primary processing of scallops and
pollock, Pacific cod, Pacific whiting secondary processing of seafood
(hake) and yellowfin sole portions and fillets at New Bedford,
MA facilities
 Largest harvester and at-sea
processor of pollock, primarily in the  Includes value added seafood
U.S. Bering Sea portions, scallops and fillets
 Revenue: $324 million (66% of  Important in gaining access to
consolidated total) (1) restaurant and supermarket
industry
 Recent acquisition of a competitor
 Revenue: $165 million (34% of
consolidated total )(1)
(1) Year ended Dec. 31, 2011. Intersegment financial amounts allocated to segments based on each
segments percentage of consolidated revenue or consolidated gross profit, respectively.
3

5. State-of-the-Art Fleet of Vessels
 5 active vessels – largest fleet in U.S. Bering Sea pollock fishery and in
Pacific hake fishery
 Finest in industry – all Det Norske Veritas
Pollock  ~300 feet in length; carry ~130 crew members
Catcher-  Capable of daily production of ~150 metric tons each
Processors  Nets designed to minimize environmental impact
 Products: roe, surimi, fillet blocks, headed/gutted fish,
fishmeal, fish oil
 Maximize yield - Improved pollock flesh recovery rate from 23% in 2002 to
between 28% and 30% currently
 5 vessels –
Other  Selectively operate in P-cod and other fisheries
Vessels  Two Extra C/P vessels provide excess capacity
No near-term need to purchase or rebuild any vessels
4

6. Pollock – Leading Species for Human Consumption
Top Ten Fish Species – Global Production (1) U.S. Consumption (2)
(in millions of MT) (in pounds per capita)
Top 10 Fishery Products
Species Production Primary Usage Consumed in USA
Anchoveta 7.4 Fishmeal Shrimp 4.0
Pollock 2.7 Human Consumption Canned Tuna 2.7
Atlantic Herring 2.5 Human Consumption & Fishmeal Salmon 2.0
Skipjack Tuna 2.4 Human Consumption
Tilapia 1.5
Chub Mackerel 1.9 Human Consumption & Fishmeal
Pollock 1.2
Largehead Hairtail 1.4 Human Consumption & Fishmeal
Blue Whiting 1.3 Human Consumption & Fishmeal
Catfish 0.8
Crab 0.6
Chilean Jack Mackerel 1.3 Human Consumption &Fishmeal Cod 0.5
Japanese Anchovy 1.3 Human Consumption Pangasius 0.4
Yellowfin Tuna 1.1 Human Consumption Clams 0.3
Top Ten 23.3 All Species 15.8
(1) Source: FAO: “The State of World Fisheries and Aquaculture” – 2010. 2006 Data.
(2) Source: National Marine Fisheries Services (NMFS) data. 2010 Data.
5

7. Regulatory Environment and Resource -
US Eastern Bering Sea Pollock Fishery

8. Abundant, Stable Pollock Fishery
Historical Catch 1986 to 2011 and Projected 2012 Pollock Quota (TAC) (1)
(Tons in millions) 25 Year Ave: 1.23MM MT
1.5 1.4 1.5 1.5 1.5 1.5 1.5
1.4 1.3 1.3 1.4
1.2 1.2 1.2 1.3 1.1 1.2
1.1 1.2 1.1 1.1 1.0 1.2
1.0
0.9 0.8 0.8
1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
(2)
(Tons in thousands)
Biomass as compared to TAC levels(2)
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
TAC Biomass
(1) Catch data 2006 to 2010 per Dec. 2011 North Pacific Fishery Management Council (NPFMC) Eastern
Bering Sea pollock SAFE report, 2011 Catch data per National Marine Fishery Service Alaska Region
Catch report, 2012 pollock TAC as published by NPFMC
(2) TAC and Biomass by year, per Dec. 2011 NPFMC Eastern Bering Sea pollock SAFE report
7

9. Attractive Regulatory Environment; Barriers to Entry
TAC Allocation (1) Catcher-Processor Pollock Allocation (1)(2)
Total Allowable Catch  19 vessels named in American Fisheries Act –
(“TAC”) no other vessels may participate
1,212,000 MT
Starbound Ltd.
Arctic Storm
Alaska Community 6.2%
Directed Pollock 12.8%
By-Catch Development Quota
Catch (“DPC”)
(3% of TAC) (“CDQ”)
(87% of TAC)
(10.0% of TAC)
15.5%
Glacier
Mothership Inshore Catcher-Processor (2) Fish Ltd. 45.9%
(10.0% of DPC) (50.0% of DPC) (40.0% of DPC)
17.1%
Trident American
Seafoods
ASG Total 2.5%
Allocation
Share
15.8% TAC + CDQ Purchase = 17.8% TAC
Coastal Villiages
of 1.9% TAC
(18.4% DPC) 216,000 MT
Quota
(1) 2012 U.S. Bering Sea pollock TAC allocation.
(2) Includes allocations to catcher-processor vessels and catcher-vessels.
8

10. Russian Pollock Developments

11. Russian Pollock Developments
• Russian Pollock harvest has been stable between 1.4 - 1.6
mill MT in recent years
• 2012 Harvest expected to stay on par with 2011 despite
the 5.7% TAC increase. Fishing so far has been fairly good
• Coastal areas expected to continue to increase in TAC
(coastal fish is mainly for domestic sales)– Sea of Okhotsk
seem stable
• MSC certification experience continued delays…
10

12. Russian APO TAC vs. actual catch
1 800 000
Total
TAC
1 600 000
1 400 000
1 200 000
Catch in
Other Areas
1 000 000
N/S Kuril Is
800 000 W. Bering Sea
SOO
600 000
400 000
200 000
0
2009 2010 2011 2012E
Source: TINRO / RU AP Assoc.
11

13. Russian APO product mix trends
in MT 2009 2010 2011* 2012 trend
Fillet/Blocks 35,000 30,000 24,500 Stable
Mince 6,000 5,000 4,800 Stable
Stable to slight
H/G 660,000 700,000 586,000 increase
W/R 30,000 45,000 362,000 Stable to decrease
• Fillet/Blocks: the production of fillets and mince blocks is expected to remain fairly
stable between 25,000 to 30,000 MT in 2012
• H/G: Production expected to remain stable → demand in China and Russian domestic
market continue growing
• W/R: Production could decrease due to weaker demand in Africa. Main market
continue to be Korea.
* Source: Russian APO Association
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14. Market Trends

15. Global Trends Impacting Seafood
• Increasing Worldwide Demand For Protein
• Increasing Prices for Grain and Protein
• Consumers increasing focus on health benefits of
Seafood
• Favorable Environmental impact of Wild caught
seafood versus agriculture
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16. Growing Demand for Protein
• World population increased from 6 billion in 2000 to 7 billion in 2011
• United Nations Predicts 8 Billion people by 2030 and 9 Billion by 2050
• Economic growth in developing world is resulting in increased caloric
and protein consumption per capita
• Worldwide Food Demand May Double by 2050
• Increased fuel prices have resulted in:
– Increased demand for grain as a raw material to produce Biofuels
– Increasing cost to produce grain and protein products
15

17. “Corn, wheat and soybean prices projected to remain at
historical highs through 2020” – USDA ERS
$ per bushel
12
Soybeans
10
8
Wheat
6
4
Corn
2
0
1980 1985 1990 1995 2000 2005 2010 2015 2020
Source: USDA Agricultural Baseline Projections to 2020, February 2011.

18. Higher grain prices will keep protein price inflation high
$ per hundredweight, nominal, U.S. markets Beef cattle:
120 Steers, 5-area
110
100 Broilers:
90 12-city market price
80
70
Hogs:
60
National base
50
40
30
1990 1995 2000 2005 2010 2015 2020
Source: USDA Agricultural Baseline Projections to 2020, February 2011

19. 18

20. Grain prices again at record levels
• Already high grain increase to 1700
record levels
1500
• June 15 to August 2, 2012: 1300
• Corn up 58% CBOT Corn
1100 CBOT Soy
• Soy up 23% CBOT Wheat
• Wheat up 40% 900
“According to an August Congressional Research Service 700
report, feed costs account for 50 to 80 percent of cash
operating expenses in the U.S. livestock sector and U.S.
feed grain demand has exceeded production 500
6/15/2012 7/15/2012
in all but one year since 2004.” – Agri-pulse, 9/14/11

21. Healthfulness: Alaska pollock vs. other meat proteins
25
21.2
18.6
20
13.7
15
11.5 12
10 7.6
5
5
1 3.03 0.2 0.6
2.9
0
Protein (g)/100 calories Fat (g) Saturated Fat (g)
AK pollock Chicken Pork Ground Beef
Source: www.nutritiondata.self.com/USDA
20

22. Ak pollock Omega 3 content higher than canned light tuna and
much higher than other proteins (3 oz servings)
500
418
400
300
239
200
100 59.4 58 39.1
0
Omega 3 (mg)
AK pollock Canned Light Tuna Chicken Pork Ground Beef
Source: www.nutritiondata.self.com/USDA
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23. Wild caught seafood has a minimal environmental
impact compared to other proteins
Wild caught seafood:
• Generally has lowest carbon footprint of major protein
choices
• No fertilizer is used in the production of wild-caught seafood
• We make our own freshwater to produce pollock
• No soil is lost in the production of wild caught seafood
• No pesticides or herbicides are used to produce pollock
22

24. Developments in Key Markets

25. Pollock has the most diverse market distribution of
any major groundfish species.
Russian
domestic, 13%
Europe, 37%
North
America, 17%
Asia, 33%

26. North American market trend
• Domestic demand for 1x frozen APO is increasing
• Demand much driven by more seafood focus from the QSR
segment = when other proteins increase in price, seafood
gets more attention
• More focus on quality products in retail/clubstore segment
• Healthier eating promoted by current administration
• USDA Procurement program ramping up 1x APO usage

27. European market trend
• US 1x APO sales into Europe has to large degree not been
affected by the European banking crisis
• Sales of fillet block based products is increasing in most key
markets
• Demand for sustainable surimi increasing in France, Spain and
Russia.
• Weakening EUR is a concern

28. Asian market trend
• Demand for APO surimi has increased in Japan and Korea.
• China has become a net importer of surimi raw mat → demand
expected to grow significantly in the years to come
• US QSR’s in Asia increase their demand for 1x APO
• Chinese domestic market for filet product has started to grow =
great opportunities for wide range of APO based products