Introductions – Regal Springs Group

Cameron MacLeanChief Operations Officer

• 22 years in Fishing and

Aquaculture sector.

• 10 years in Engineering Sector

• Director, NAQUA, Saudi Arabia. One of the largest Shrimp &

fish farming and processing operations world wide.

• Managing Director , ASSAB Steels Indonesia

• Operations Manager of Australia’s largest Fishing and

Seafood Processing Group, A. Raptis & Sons

• Track Record of managing large scale farming and

processing operations world wide.

Regal Springs part of Life Sciences Group Feeding Healthier Protein Globally

Gold Coin LivestockGold Coin Livestock

ParazelsusParazelsusRegal SpringsRegal SpringsSyAquaSyAqua

Affiliate

Where We AreGlobal Farms & Offices

USA/ Canada Sales

(Miramar) LATAM Sales

(Mexico City)

Central America Sales

(Guat. City)

Europe Sales

(Hamburg)

Asia Sales

(Jakarta)

Asia Sales

(Jakarta)

We farm in rural areas, in ecosystems that we

work to sustain. We offer high quality work

opportunities based on respect for people and

the environment.

The Regal Springs global headquarters are in

Singapore. Regal Springs Trading, is our U.S.-based

branch, handling sales and logistics from offices in

Miramar Florida.

Our commitment to responsible operations and

respect for our colleagues and the communities

we operate in is a way of working throughout the

business. We work daily to achieve these

standards irrespective of challenging economic,

social or political conditions in the regions we

farm in.

We Care and Develop Communities in order to

raise living standards, develop skills and so

produce Premium Fish that ensures repeat

customers which in turn funds our business

operations and activities.

Mexico Plant/Farms

We raise tilapia in Lake

Penitas and Lake

Malpaso in the rural

state of Chiapas. Our

processing and fish meal

plant are located nearby

operations.

Honduras Plant/Farms

Our tilapia are grown in

Lake Yojoa and El Cajon

Reservoir with nearby

hatchery, feed

and processing

operations.

Indonesia Plants and Farms

We operate two processing

plants in Indonesia located in

Java and Sumatra. Our tilapia

are raised in nearby lakes (4)

Headquarters

(Singapore)

Sales Office HeadquartersPlant/Farms

About Regal Springs Group Worldwide

Established in 1988

Globally recognised for responsibility & high quality food

Regal Springs Group supports over 27,000 jobs direct & secondary

World's largest white fish farming producer in the world

Vertically integrated operations – control over standards

The biggest Employer in each of our Lake Farming locations

The biggest Employer in each of our Factory Processing locations

World's largest Integrated Responsible Premium Tilapia Producer

3. Business Vision

6

7

Our Mission

Produce Premium Tilapia for the consumer

WE CARE operates in each country

WE CARE is the world's first totally integrated sustainability programme for a white fish farming and Tilapia producer – WE CARE will drive standards towards the 'Best' & 'Most Sustainable'

WE CARE has #15 Scorecards with annual targets to be delivered over the next five years

Responsible Aquaculture

GMP Fish Processing

GMP Energy

Lake Water Assurance Program HON IND MEX

GMP Waste

Responsible Feed Ethical Trading & Social Compliance

Community Programs

Ed

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atio

n

He

alth

Infra

struc

ture

Wa

ter

Re

-

Fore

statio

n

No Antibiotics

No Additives

No Preservatives

No Polyphosphates

Product Quality Claims Authentication

100% Traceable

100% Pure Fish

Health/Husbandry/Welfar

eResponsible Packaging

WE CARE and Vertical Integration brings unique benefits vs wild capture seafood operations

• 100% Traceability to egg

• 100% Provenance to location

• Better Control of unit operations

• Product Integrity into store

• Certified standards for worker

rights compliance standards

Location

Independent Third Party Certifications across Regal Springs Group

British Retail Consortium

ASCFarming

ASC Chain of Custody

ASC SocialModule

GAABAP 1,2,3,4*

Ethical Trading

Good Manufacturing

Practice

Responsible

AquacultureTraceability

Farming Social

Standards

Responsible

Aquaculture

Social & Workers Standards

Compliance

Honduras SMETA/ESR

Indonesia SMETA/UL/BSCI

Mexico ESR

Regal Springs WE CARE Certifications across Regal Springs farming and processing operations

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Indonesia

Mexico

Honduras

About Lake Water

Maximizing Fish

Resources

--

Fillets are less than

40% of Whole Fish

FILLETS

LOINS

PORTIONS

WHOLE

Scales - Health & Beauty Skin – Medical & FashionFeed

WE CARE Zero Fish Waste Approach through Innovation

Some of our Regal Springs Customers

The Story for Today

Why Tilapia?

Farming

Regal Springs

Why Tilapia?

Aquaculture is fundamental to feeding the expanding world population in light of reduced quotas on wild catch

Tilapia remains one of the worlds most popular species- Although 90% of consumption remains domestic

Sized based on Kantar Consulting’s ShopperGenetics® database with 55 MM Households*

10% Households

in the Tilapia Categoryin ShopperGenetics® database

Kantar Consulting ShopperGenetics® 52 weeks ending 7/21/2018*The category sizing is based from the shopper conversion of the category and the household base in the ShopperGenetics® database

Seafood growth under-performs all other proteins. There is massive headroom for growth

Tilapia is the #1 white fish in the USA

TilapiaOn Trend

Kids Nutrition

Free FromHealthy Protein

Search for Value

Tilapia and Consumer Behaviour

Tilapia Shoppers play a critical role in L4L growth…

Source: Kantar Consulting ShopperGenetics® 52 weeks ending 7/21/2018

Increased Store Traffic

Over-

Conversion

Over-Indexed

Conversion

Bigger Basket Size

Driving higher, more valuable traffic to stores

Maximising conversion to

purchase in Fresh Fish

Expanding basket size and share of

wallet

Tilapia shoppers make more annual trips on average than other shoppers

Kantar Consulting ShopperGenetics® 52 weeks ending 7/21/2018*The share of category trips by Heavy shoppers (top 15% of shoppers in terms of category trips), Medium Shoppers (next 25% of shoppers) and Light shoppers (bottom 60% of shoppers)

Tilapia over-indexes in it’s ability to recruit new shoppers to Fresh Fish

0

20

40

60

80

100

120

140

160

180

200

Tilapia Other White Fish Salmon

Relative Recruitment Index to Fresh Fish

Source: Kantar Consulting ShopperGenetics® 52 weeks ending 7/21/2018

Once purchasing Tilapia, these buyers tend to have larger baskets and are more valuable to the store than the rest of the category

Kantar Consulting ShopperGenetics® 52 weeks ending 7/21/2018

Average Fresh Fish Basket Ring Average Fresh Fish Buyer Worth

$76

$93

Salmon

Tuna

$3,072

$4,065

Salmon

Tilapia

Cod

Tilapia$104

$88

$3,483

Tuna

$3,850

Cod

Leverage Tilapia’s high value to partner with Grocery retailers in optimizing the Fresh Fish aisle

1.8

2What’s in the way?

While consumers across countries state that they

want to try to eat more seafood PCC is dropping

across almost every country

1. Customer Experience:

Not all Tilapia is created equal. Cheap/pond

farmed Tilapia = -ve PR and dilutes total category

CheapTilapia

Cheap Tilapia generates poor consumer experience that drives high rates of category abandonment.

*New Buyer Fair Share Index calculates the share of new category buyers attributable to each brand/segment. Kantar Consulting ShopperGenetics® 52 weeks ending 7/21/2018

Most Tilapia disappoints consumers significantly more than average

*Means with unique Uppercase letters are significantly different at the 95% confidence level.

• Cross category average for “worse than expected” is 33%

• Most competitive brands perform significantly worse than this average

• Significant penalties on taste, texture, colour and aroma

Significant/Concerning penalty = weighted mean drop of 0.40 or higher

**Borderline = weighted mean drop of 0.35 or higher

Total Population:

Base 413

Overall Liking

Overall Appearance Liking

Outside Color Liking

Aroma Liking

Overall Flavor Liking

Overall Texture Liking

Overall Freshness Liking

Purchase Interest -T2B

Worse than Expected

Significant Penalties

4.67 4.47

4.59 4.29

4.44 4.11

4.55 4.22

4.65 4.41

4.69 4.66

4.72 4.45

(D) (E)

43% 42%

37% Ab 40% Abc

•Not Flaky

Enough

•Not Flaky

Enough

•Outside

Color Too

Dark

•Aroma

Too Strong

•Too

Chewy

•Outside

Color Too

Dark

•Aroma

Too

Strong

•Too Juicy

•Too Juicy•Too

Chewy

RainforestTropical What’s the impact of delivering a worse than expected

consumer experience?

The research on CX is clear….

Source: RightNow and Harris Interactive Customer Experience Impact 2010

Why does Regal Springs outperform? Because WE CARE To Produce Naturally Better Tilapia

100% free from ANTIBIOTICS & Additives

• Regal Springs Tilapia is an excellent choice as part of a healthy, balanced diet. It is high in protein while low in calories, fats, and carbohydrates.

• Our Tilapia is rich in beneficial Vitamin B12, Niacin, Selenium, Phosphorous and Magnesium and contains more omega-3 than Chicken or Pork.

• We do not sell water or products loaded with polyphosphates. Products with polyphosphates have tested with a PH level similar to bar soap or shower gel while cheap Tilapia loses up to 40% of it’s weight in glazing.

Regal SpringsWe Sell Natutally Better Tilapia and nothing else

Farming

Overview

• Tilapia is a popular fish for aquaculture as it is very versatile and is

tolerant of a variety of aquaculture environments; it can be

farmed in brackish or salt water and also in pond or cage systems.

• As an omnivorous animal, tilapia will eat diets composed of both

animal and vegetable origin as well as algae/plankton. As such

Tilapia feeds can consist of higher % of Vegetable proteins, which

are cheaper and more sustainable than Animal or Fish proteins.

• Tilapia will cope with a relatively low feed quality, making them a

suitable species for feed of a lower nutritional value than might be

necessary for some other aquaculture species.

• Tilapia have a relatively quick growth rate and low FCR compared

to other Aquaculture species.

Comparative FCR’s

Species FCR

Salmon 1

Barramundi 1.7

Snapper 2.6

Tilapia 1.5

Grouper 2 to 3

Pangasius 1.7 to 2

Hatcheries

• Generally for Tilapia we can use Two Hatchery Models

– Swim up– Incubation

• Swim Up systems are generally lower capital intensive and high Labour intensive. Because they are generally an open system, there is less control over the system resulting in less reliable results and higher size range of fish

• Incubation systems tend to be more capital intensive and lower labour intensive, but provide much greater control over the hatching process giving more predictable results.

• The final Stage of the Hatchery is the Larvae Rearing.

Tilapia Production Cycle

Incubation

Spawning

Stripping

Hatching

Larvae Rearing

Swim Up

Spawning

Collecting

Larvae Rearing

Post Larvae Stage

From consumption of egg sack to 0.07gms (7 to 10 days) Feed is 50% protein powdered feed.

• Almost always done in tanks.

• During this stage the fish begin sex reversal.

• This process is done by mixing Methyl Testosterone Hormone into the feed to produce all male fish.

• Generally the success rate is around 95% males.

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Nursery

Happas

• Happa’s are used in ponds to hold the small fish. Again this is a low cost alternative but the pond environment has a lot more variables such a temperature, O2, and issues of Disease and predators.

Tanks

• In Higher technology Nurseries Tanks are used. By using tanks you have more control over water quality and conditions.

• Tanks systems can be either

– RAS where you can use high

stocking Density and high

water Turn over, or

– Biofloc, where you have low

stocking Density and no water

turn over.

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From 0.07gms to 2.5gms (+-21 days). In this stage the small fish complete the sex reversal process. Feed is usually from 42% to 36% protein on powder to 0.8mm pellets.

Pre-Growout

• This stage can be broken into two stages Nursery (2.5 to 5gms) and Pre Growout or combined into one process.

• Generally a Nursery stage us used if you want to grade the fish at 5gms.

• The finish weight of 25gms is primarily because at this size the fish can be vaccinated. So a process of grading and vaccination is carried out before the final Growout Cycle.

• Due to the size of the fish this can be done in large Happa’s or floating cages.

• Fish are generally feed 36 to 34% protien feed

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From 2.5 grams to 25gms (84 days)

Grading

• Grading is an important stage to ensure uniformity of your biomass.

• Grading can be done through Mesh Graders or mechanical graders.

• Mechanical graders are generally preferred for fish over 5gms as they can also count the fish.

• Good Practice is to grade at

– 0.07gms

– 5gms

– 25gms.

• Generally grading is done into three sizes, with the smallest and biggest 10% discarded.

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Growout

• The final stage of the farming process. The fish stay in growout through to harvest.

• As the fish grow bigger they consume more feed, so feed management is Critical through this period.

• Fish at this stage are generally feed 34 to 32% protien

• Following good husbandry practices is also critical, such as:

– Keep nets clean and free of fouling.

– Removing dead fish daily

– Maintaining Basic Bio Security

– Predator (Bird) protection.

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Disease and Vaccines Management

• Tilapia are prone to several Diseases, mainly:

– Streptococcus (A, B, III, and Iniea.

– Iridovirus

– TLiV

• Streptococcus is generally the major source of Biomass loss and is prevalent in Malaysian lakes and waterways.

• There are very effective vaccines available for most strains of Streptococcus.

• Due to slow approval process for vaccines and high cost of application, many disease outbreaks are still treated with Antibiotics.

Genetics

• Genetics is an important part of any husbandry. There is much work being done on Genetics.

• Broiler chickens in the 1960s could grow from day-old chicks to around 400g in six weeks. Today’s broilers can gain over 1kg during the same period

• Likewise, Nile tilapia was initially developed to produce the genetically improved farm tilapia (GIFT) strain, which came about in 1990 after 10 years of selective breeding. This strain grew 85 times faster than its ancestors.

• The Two main strains grown commercially in Asia are the

– GIFT (Black).

– Asian Red.

• Where as the Gift is faster growing, lower FCR and better disease resistance, the Asia Red is more consumer acceptable as a whole fish.

Developing Technologies

• Non Hormone / Non Antibiotics:– Consumer concerns about health

and environment is driving consumer preferences forward. Much work is being done to move away from the use of Hormones for sex reversal and the use of Antibiotics to treat disease. This is being addressed through Vaccine development and Genetics.

• Feeding Technologies:– Hand feeding is being replaced by

Auto Feeders. This range from semi automatic systems to Fully automatic systems that respond to Tilapia feeding behaviour.

• Nappies:– Concern about the impacts of waste

from intensive farming systems on the water ways is driving development of Nappy Systems to collect faeces from the cages and remove it from the water system. This biproduct can be dried and sold as fertilizer.

Tips for New Farmers

• Never compromise on Biosecurity.

• Producing is easy, Selling is hard. Ensure you have your sales channels clearly mapped out before investing in farming.

• Feed is you single biggest cost, this must be managed properly.

• Record all data and what you do. Farming is about trial and error, so you always need to measure everything and review results to identify what works and what doesn’t.

• Make sure you source fingerlings from a reliable certified hatchery. Poor fingerlings will not perform, and diseased fingerlings could destroy your farming site for years.

• Look after your water. Water Quality is the blood of Aquaculture. You pollute your water you poison your future.

Thank You