NIREUS AQUACULTURE S.A. · Solid recovery for the price of seabream Volumes for seabasslose momentum –price rebounded in Q2 2010 Seabream (Sparus aurata) ... breeding and equipment

3 Months 2010 Results Presentation

NIREUS AQUACULTURE S.A.

Athens Greece | 28 May 2010

22

• Financial

- Biological sales (fish and juveniles of own production) up € 8,2 mi. (+33%)

- Total sales stable at € 40,3 versus € 40,2 in 3M 2009

- Significantly reduced merchandise and feed sales

- Net income available to equity holders of the parent up at € 0,74 mi. versus € 0,34 mi.

- Net income after non-controlling interests €(0,43 mi.) versus € 0,22 mi. in 3M 2009, affected from increased feed and transportation cost and higher percentage of large size fish in biomass.

• Market and external factors

- Seabream price has recovered solidly from historical low

- Price of seabass shows first signs of recovery despite higher volumes coming into the market

- Higher cost for feed raw materials and transportation

- Demand for seabass/seabream remains solid due to their affordable pricing and high nutritional value

Main events 3M 2010

33

Bass & bream – Price and Volume

Solid recovery for the price of seabream

Volumes for seabass lose momentum – price rebounded in Q2 2010

Seabream (Sparus aurata)Seabream (Sparus aurata)Seabass (Dicentrarchus labrax)Seabass (Dicentrarchus labrax)

SEABREAM Monthly Price and Volume Evolution Jan 2007 - Apr 2010 (source: MercaMadrid)

0

300.000

600.000

900.000

2007

2008

2009

2010

Volu

me

(kg)

3

5

7

9

11

Pric

e

Volume Price

SEABASS Monthly Price and Volume Evolution Jan 2007 - Apr 2010 (source: MercaMadrid)

0

90.000

180.000

270.000

360.000

2007

2008

2009

2010

Volu

me

(kg)

3,5

10,5

17,5

Pric

e

Volume Price

44

Data Source: FAO for soybean, fish meal and fish oil - CME for oil

Higher cost for feed raw materials - transportation

Monthly Fish Meal US$/Ton (64/65% Bremen fca - US$/Ton)

900

1.200

1.500

1.800

Jan

Feb

Mar

Apr

May Ju

nJu

lA

ugS

ep Oct

Nov

Dec Ja

nFe

bM

arA

prM

ay Jun

Jul

Aug

Sep Oct

Nov

Dec Ja

nFe

bM

arA

prM

ay Jun

Jul

Aug

Sep Oct

Nov

Dec Ja

nFe

bM

ar

2007 2008 2009 2010

Monthly Soybean Meal (Pellets, 44/45%, cif Rotterdam - US$/Ton)

200

300

400

500

600

Jan

Feb

Mar

Apr

May Ju

nJu

lA

ugS

ep Oct

Nov

Dec Ja

nFe

bM

arA

prM

ay Jun

Jul

Aug

Sep Oct

Nov

Dec Ja

nFe

bM

arA

prM

ay Jun

Jul

Aug

Sep Oct

Nov

Dec Ja

nFe

bM

ar

2007 2008 2009 2010

Monthly Fish Oil (cif North West Europe - US$/Ton)

400

800

1.200

1.600

2.000

Jan

Feb

Mar

Apr

May Ju

nJu

lA

ugS

ep Oct

Nov

Dec Ja

nFe

bM

arA

prM

ay Jun

Jul

Aug

Sep Oct

Nov

Dec Ja

nFe

bM

arA

prM

ay Jun

Jul

Aug

Sep Oct

Nov

Dec Ja

nFe

bM

ar

2007 2008 2009 2010

55

The ongoing consolidation of the Greek sector

No. of Licenses 1985-2009

12

170220 229 260 290 310 310 315 320 329 329 329 329

0

100

200

300

400

1985 1995 2000 2002 2004 2006 2008

No. of Companies 1985-2009

12

110140 140

170 185 190 205 193248 260

175 167125 106 80

050

100150200250300

19851990

19911992

19931994

19951996

19971998

19992000

20032006

20082009

Data Source : Federation of Greek Mariculture

Greek Production - thou ton

0,1 1,617

5979

98 9782 85

100120

130120

020406080

100120140

1985 19901995 2000 20012002 2003 2004 2005 2006 2007 2008 2009

ØStable capacity since 2006 (NO new licenses)

Ø80 companies in 2009 vs 167 companies in 2006

ØHellastat expects a further reduction in production to 110 thou. ton. in 2010 (analysis of the Greek fish farming sector, Oct 2009)

66

Financials – Balance Sheet

Assets

in mi. € 3M 2010 3M 2009 2009Total non-current 242,85 258,06 235,07Total current 282,33 256,11 286,83Total assets 525,18 514,18 521,90

Equity and liabilities

in mi. € 3M 2010 3M 2009 2009

Total shareholders' equity and non-controlling interests 165,98 169,31 165,94Total non-current liabilities 205,39 217,57 209,21Total current liabilities 153,82 127,30 146,74Total liabilities 359,20 344,87 355,96

Total equity and liabilities 525,18 514,18 521,90

77

Financials – Income Statement

üBiological sales (own-production fish and juveniles): up € 8,2 mi, +33%

üTotal sales stable because of reduced sales of merchandise fish and feed

in mi. € 3M 2010 3M 2009 2009

Biological Sales 33,12 24,93 120,06

Non-Biological Sales 7,17 15,32 43,46

Total Sales 40,29 40,25 163,52 Gain from change of Fair Value in Biological Assets 30,48 27,90 151,72

EBITDA 5,76 5,11 22,12

EBIT Operating 3,63 3,72 13,77

EBT 1,11 0,89 0,94

Tax (1,52) (0,62) (3,92)

EAT (0,43) 0,22 (2,98)

Equity holders of the parent 0,74 0,34 0,34

Non-controlling interests (1,17) (0,12) (3,32)

Earnings per share 0,0116 0,0054 0,0054

88

Financials – Cash Flow Statement

in mi. € 3M 2010 3M 2009 2009

Profit before tax 1,11 0,89 0,94

Cash flow from operating activities (3,79) (0,41) (16,44)

Cash flow from investing activities (0,49) (0,53) (3,42)

Cash flow from financing activities 2,83 (5,96) 5,96

Total cash flow reporting period (1,45) (6,91) (13,90) Cash and cash equivalents at the beginning of the period 15,74 29,64 29,64 Cash and cash equivalents at the end of the period 14,29 22,73 15,74

99

Financials – Key Figures

in mi. € 3M 2010 3M 2009 2009Operating revenues 40,29 40,25 163,52EBITDA 5,76 5,11 22,12EBITDA margin(%) 14% 13% 14%EBT 1,11 0,89 0,94EBT margin(%) 3% 2% 1%Earnings attributable to equity holders of the parent 0,74 0,34 0,34

Earnings per share 0,0116 0,0054 0,0054Total assets 525,18 514,18 521,90Equity 165,98 169,31 165,94

1010

Sales Breakdown

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

Other = equipment to fish farmers + feed, health, breeding and equipment to aviculture and animal culture

0,20

11,1

0,92

4

4,20

7,6

3M 2010

38,69Juveniles (mi. pieces)

23,35,9Fish Feed (thou. ton.)

0,930,93Aver. Feed Price (€/kg)

27,77Market-sizefish (thou.

ton.)

4,294,17Aver. Price (€/kg)

20093M 2009

0,210,21Aver. Price (per piece)

2,63,63,65,5

34,031,2

Fish Farming Fish Feed Other

Sales by Sector for 3M 2009 & 3M 2010 (mi. €)

3M 2009

3M 2010

1111

Fish Sales

1Q 2009 1Q 2010

7,2

33,1

24,9

15,3

0,0

35,0

Biological sales (mi. €)

Non-biological sales (mi. €)

üStrong growth in sales of own production fish

üReduced 3rd party fish sales + feed sales

Biological sales = fish + juveniles of own production

Non-biological sales = 3rd party fish + feed + equipmentFish sales = own +3rd party fish

1Q 2009 1Q 2010

8,6

31,729,3

11,0

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

Fish Sales (mi. €)

Other sales (mi. €)

1212

Fish Sales – Value & Volumes

6,2

1Q 2008

‘000 T 7,67

1Q 20101Q 2009

Q1 08 Q1 09 Q1 10

2732

29

0

38

Fish sales value (mi. € )

27,1

1Q 2008

mi. € 31,729,2

1Q 20101Q 2009

4

4,5

5

5,5

6

6,5

7

7,5

8

2008 1Q 2008 2Q 2008 3Q 2008 4Q 2009 1Q 2009 2Q 2009 3Q 2009 4Q 2010 1Q

Fish Sales Volume ('000 T) quarterly

1313

Participation in international trade shows

Brussels Seafood Show – April 2009Brussels Seafood Show - Apr 2010

1414

Management award for sustainable environment

Biennial award recognizing responsible and eco-innovative companies.

Organized by the Greek Association of Environmental Protection Companies, the national member for Greece for FEAD.

Nireus received 3rd prize for the period 2009-2010.

1515

2010 Outlook: fish feed volumes

Data source for fish feed volumes: Kontali Analyse

Fish feed growth for seabass/seabream has been negative since Nov 2008

Less demand for fish feed

⇒lower fish population (biomass)

⇒reduction in future fish supply

⇒in the past, this has resulted in better pricing

Fish feed consumption - sales to seabass/seabream producers

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2008 2009 2010

Growth of fish feed production for seabass/seabream - 3M average

Apr 2010

-20%-10%

0%10%

20%30%40%

Mar

-06

Jul-0

6No

v-06

Mar

-07

Jul-0

7No

v-07

Mar

-08

Jul-0

8No

v-08

Mar

-09

Jul-0

9No

v-09

Mar

-10

1616

2010 Outlook: production of juveniles

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

Seabass 474.440 507.830 493.000 435.000 404.000

Seabream 561.840 629.300 529.900 448.000 455.000

Total 1.036.280 1.137.130 1.022.900 883.000 859.000

2006 2007 2008 2009 2010 E

Data source for juveniles estimates: Kontali Analyse

Production of juveniles hit a record high in 2007 => higher supply (production cycle is 18 -24 months for average sizes) =>lower prices in 2008 - 2009

Input of new juveniles down 22% in 2009 versus 2007 => lower expected supply going forward => better expected pricing

1717

2010 Outlook: Fish prices

Bass & bream are expected to be protected in a recession since 1. Their prices have decreased relative to substitutes in recent

years 2. Expected negative growth in global supply in 2010-11

MercaMadrid - Wholesale prices for fresh farmed Seabass last update 22/5/2010

4,50

5,00

5,50

6,00

6,50

7,00

7,50

8,00

8,50

2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50

EUR

O/k

g

2009 2010

MercaMadrid - Monthly volumes for fresh farmed Seabream

0

100

200

300

400

500

600

700

800

900

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

tonn

es

2009 2010

MercaMadrid - Monthly volumes for fresh farmed Seabass

0

50

100

150

200

250

300

350

400

450

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Decto

nnes

2009 2010

MercaMadrid - Wholesale Prices for Fresh farmed Seabream last update 22/5/2010

3,00

3,50

4,00

4,50

5,00

5,50

6,00

6,50

7,00

7,50

8,00

8,50

2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50

EUR

O /

kg

2009 2010

1818

Extreme highs and lows in seabass/ seabreamprices occur in a 7-8 years cyclical pattern that has a strong negative correlation with volumegrowth and a weaker link with GDP growth.

Lower production volumes => better pricing

SEABREAM

Production is less consolidated => volatile pricing pattern

Record high volumes in 2008-2009 => historical low spring of 2009

Reduced volumes are expected for 2010 going forward because of low prices

SEABASS

Production is more consolidated => less volatility y-o-y

Volumes increased in 2009

Historical patterns of bass / bream price

SEABREAM Monthly Price and Volume Evolution Jan 1996 - Apr 2010 (source: MercaMadrid)

0

300.000

600.000

900.000

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Vol

ume

(kg)

3,00

5,00

7,00

9,00

11,00

Pric

e

Volume Price

SEABASS Monthly Price and Volume Evolution Jan 1996 - Apr 2010 (source: MercaMadrid)

0

90.000

180.000

270.000

360.000

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Volu

me

(kg)

3,50

10,50

17,50

Pric

e

Volume Price

1919

Strategy for 2009-2010

2000

Market Focus:oOpen new markets for large fish

üfish sales volume up

oDevelop and sell VAP products

ünew brand launched

oOpen sales/distribution offices in Italy, France, Spain

ünew logistics center in Milan

oDiversify in new fish-related products

Operation Focus:oCost reduction in capex, operating expenses, feed consumption

ülower capex, operating expenses

oSwap licenses – consolidate operations into 12-14 efficient, fully integrated farming clusters

üapplied for relocation of several farming units

Assumptions:oSeabream price recovery expected to continue well into 2011

oSeabass price expected to recover solidly in H2 2010

2020

Excellent potential for growth

Fish feedFish feedJuvenilesJuvenilesFishFish

SalesSales

Sales growth potential

Sales growth potential

CapacityCapacity ØCapacity: 35.600 t

üUtilization of full capacity does not require significant CAPEX expenditureüReady to increase production volumes as soon as the sector situation shows further improvement

% of 2009 Revenues

% of 2009 Revenues

ØSales 08: 24.000 t

ØSales 09: 27.700 t

+29%

ØCapacity: 200 mi. pieces ØCapacity: 90.000 t

ØSales 08: 62 mi. pieces ØSales 09: 39 mi. pieces

+100% +20%

73%

ØSales 08: 28.000 tØSales 09: 23.300 t

5%12%

3M 2010 7.600 t 11.1 mi. pieces 4.000 tons

2121

Appendix: Cost dynamics in fish farming

Harvest Weight

Normal OperationsOperations + Disease + Mortality

Operations + Disease

Cos

t p

er k

g

Δcost - Mortality

Δcost - Disease

Δcost - Weight

Ø Vertical structure ensures less risk from disease

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

2222

Appendix: Calculation of the fair value of biomass

Fish farming companies are required to calculate and report the fair value of their biomass (IAS 41).

The fair value of the biomass is calculated as volume (kg) x market price and is adjusted for the part that is not ready to harvest.

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 non-biological.

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 gain or loss arising from changes in the fair value of the biomass is computed as follows:

biomass at end of period(+) biological sales(-) biomass at beginning of period(-) purchases of eggs and juveniles for production= gain/loss from biomass

Biological +Non-biological

Total Sales (I.S.)

The sales of fish/juveniles produced by others, fish feed, nets, other products

Non-biological sales (I.S.)

The sales of fish/juveniles produced by the company – to include processed fish

Biological Sales (I.S.)

Δ VolumeΔ Price

Key Drivers

Volume x PriceFair value of biomass (B.S.)

2323

Communication – Financial Calendar

Investor Relations

Ms. Maria Kotsovou, IR Manager

Tel. +30 210 66 98 335

Mob. +30 693 66 98 335

Email [email protected]

Financial Calendar 2010

FY 2009 ResultsTuesday, 30 March 2010

3 Mo. 2010 Results: Monday, 31 May 2010

Ordinary AGM: Friday, 18 June 2010

6 Mo 2010 Results: Monday, 30 August 2010

9 Mo 2010 Results: Tuesday, 30 November 2010

Legal NoticeThis 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.