Mar - 2012 6th Annual Andean Conference

EMPRESAS AQUACHILE

Corporate Presentation

March 2012

1

1Overview

2AquaChile

3Financial Review

4Sustainability and

Stakeholders

5New Developments

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AquaChile is a Chilean company that

produces and commercializes Atlantic

Salmon, Pacific Salmon, Sea Trout and

Tilapia.

Empresas AquaChile at a glance.

Source: Infotrade

Chilean Salmon Exports Ranking as of

December 2011

It owns inland farms in Costa Rica and

the only three farming licenses granted

in the Bayano Lake in Panama to

produce Tilapia.

It has operations in Chile, Costa Rica, Panama

and a commercial office in the United States.

3

It is the largest producer in Chile of Salmon

and Sea Trout. It owns 149 sea licenses

which provide a solid basis for its growth.

50countries.

It has more than

400customers in

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4

Figures as of December 2011:

Sales MUSD

501.2

EBITDA* MUSD

95.4

Net Income MUSD

54.9Net Interest Bearing Debt MUSD

82.8

2011 physical sales:

WFE tons.

65,089WFE tons.

17,240

*Before fair value biomass adjustment

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Main Shareholders:

Puchi and Fischer Families

Public since

May 19th, 2011

Market capitalization of

USD 970 millionas of March 13th, 2012


5

Shareholder’s Structure**

Source: The Company

*As of March 13th, 2012 ** As of December 31th, 2011

Chilean Salmon Companies

by Market Cap (MUSD)*

Source: Bloomberg

2011 average daily trading volume

USD 2,0 million

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Annual SalesIn MUSD

Source: The Company

25 years of succesful track record.

Crisis

• ISA virus effects

• Financial restructuring

• New legal framework focused in

long term sustainability

• Advantages of diversification

2006 – 2007 Period

• 3rd largest world producer

• Global presence and reputation

• IPO and acquisition plans

Beginnings

• 25 years of history

• Merger with Salmones Pacífico Sur

• Track record forming strategic

alliances

• Sustained growth

Today

• Diversified business model

• Vertical integration

• High growth potential

• Industry consolidation capacity

6

RevenuesIn MUSD

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Main Figures*

Atla

ntic S

alm

on

Sales: MUSD 76.9

WFE Tons Sales: 14,251

EBIT: MUSD 14.6

EBIT/Kg WFE USD 1.03

% of Consolidated

EBIT

% of Consolidated

Sales

Se

a T

rout

Pa

cific

Sa

lmo

nT

ilapia

* Figures in MUSD as of December 31, 2011

Sales: MUSD 136.5


EBIT: MUSD 29.8


Sales: MUSD 107.5


EBIT: MUSD 28.8


Sales MUSD 47.5


EBIT: MUSD 2.9


Geographic

Diversification

Bayano Lake Guanacaste

X and XI Region

Source: The Company

X and XI Region

X and XI Region

Focus in

diversification for success.

7

19% 15%

39% 27%

38% 21%

4% 9%

1Overview

2AquaChile

3Financial Review

4Sustainability and

Stakeholders

5New Developments

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2 311

1622 25 28 28

13 9

1715

1616

16 16

99

1111

1213

13 13

2009 2010 2011 2012e 2013e 2014e 2015e 2016e

Atlantic Salmon Sea Trout Pacific Salmon

Sales Volume1

In thousands of WFE tons per species

SowingIn million of smolts

CAGR 20%

(1) For estimates, we assume that tons harvested equal sales volume

Organic growth planSupported by strong market fundamentals

Source: The Company

Source: The Company

9

291 14 22

5577

95 10221

3025

37

39

39

3939

24

2325

27

29

32

3232

18

1917

24

27

31

3641

9272

82

110

151

179

202215

2009 2010 2011 2012e 2013e 2014e 2015e 2016e

Atlantic Salmon Sea Trout Pacific Salmon Tilapia

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AquaChile:Strong organic growth plan based on unique assets

Fresh Water: Flexibility and excess installed capacity

Processing: Installed capacity to absorb growth

Vertical integration throughout the value chain

Sea Water: High quality and diversified license portfolio

Global presence and reputation

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Sea water:Unique, diversified and large license portfolio.

One of the largest sea licenses base and the

largest presence within sanitary areas in the

Chilean industry.

149Sea licenses distributed in

29 Sanitary Areas

-Geographic distribution

-Organic growth capacity

-Operational and productive continuity

-Continuous supply to clients

-Species diversification

-Natural, climate and sanitary risk diversification

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Sea water:Unique, diversified and large license portfolio.

INDUSTRY

Total of 34 sanitary areas

AQUACHILE

93 sea licenses and 17 sanitary areas

50% of sanitary areas of the Aysen Region

Sea licenses Sanitary areas

INDUSTRY

Total of 24 sanitary areas

AQUACHILE

56 sea licenses in 12 sanitary areas

50% of sanitary areas of the Los Lagos Region

Aysen Region

Los Lagos Region

Geographical

diversification in sea

licenses for Salmon

and Sea Trout

production.

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Sea water:Sea licenses Xth Region.

13

Sea licenses Xth Region

Sea licenses used during 2012 Sea licenses not used during 2012

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Sea water:Sea licenses XIth Region.

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Sea licenses XIth Region

Sea licenses used during 2012 Sea licenses not used during 2012

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Tilapia Costa Rica & Panama:Large water volume and favorable climate.

Costa Rica

-Strategic access to large volumes of high-quality water

-Optimal location for logistics

-21,000 tons WFE capacity

Panama

-The Company has the only three tilapia farming licenses granted in the Bayano Lake

-Potential to produce over 20,000 ton WFE

Geographical diversification in Tilapia production

Guanacaste

Bayano Lake

Costa Rica

Panama

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Fresh water:Flexibility and excess installed capacity.

23*hatcheries from the IXth Region to

the XIth Region, including 1 hatchery

near Santiago.

13**fresh water farming licenses in the

Xth and XIth Regions for Sea Trout

and Coho smoltification.

7brackish water licenses in the XIth

Region for Coho smoltification.

* Four of them are rented under long term contract

** Two of them are rented under long term contract

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Geographical

diversification in fresh

water.

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Fresh water:Flexibility and excess installed capacity.

AquaChile produces smolts not only to supply its own needs

but also to eventually sell them to third parties.

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Current production capacity of AquaChile’s processing plantsIn thousands of WFE tons

7 plants with a total capacity of 194,000 WFE tons, including one of the largest plant in the World

*Rented under long term contract

Processing:Installed capacity to absorb growth.

Location Puerto Montt CalbucoQuellón Dalcahue Chonchi

Plant TypeValue

AddedValue

Added

Whole

Salmon

Whole

Salmon

Value

Added

PAC-HACCP

CertificationYes YesYes Yes Yes

Panama

Value

Added

Yes

Value

Added

Yes

Guanacaste

Source: The Company

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Diversity of Salmon Products

Whole HG Trim C

PortionsTrim ETrim D

Whole

Breaded Fillets

Fillets

Diversity of Tilapia Products

Processing:Installed capacity to absorb growth.

Chile Costa Rica

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GENETICS

FRESH WATER

Eggs & Smolts

SEA WATER

Farming

PROCESSING COMMERCIALIZATION

FEED

SALMON AND

SEA TROUT

TILAPIA

Vertical integrationtroughout the value chain.

INTEGRATION AquaChile is vertically integrated in the Salmon and Tilapia business.

The Company adds value to all of its productive chain, from genetics up to commercialization.

FRY

PRODUCTION

GENETICS

FARMING

FEED*

PROCESSING COMMERCIALIZATION

FEED

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Source: The Company

Universidad

de Chile

15%

AquaChile

83%

Others

2%

Increase in harvest weight of the Pacific SalmonIn WFE kg

Δ+40%

Aquainnovo: Created to be a world class center for genetic improvement in aquaculture

Genetics:15 years of succesfull and proven genetic development.

Source: The Company Source: The Company

Improvement in Tilapia conversion factor of ACI Group Reduction in the Tilapia’s on growing cycleIn number of days

Δ+36%Δ+19%

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Genetics in Salmon and Sea Trout Genetics in Tilapia

Genetics:15 years of succesfull and proven genetic development.

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Fish feed plant:State of the art assets to feed our fish.

Joint venture with Biomar in Chile, one of the

world’s leading suppliers of high performance

fish feed.

126,000 tons of installed capacity.

Modular design allows the company to double

its output capacity.

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AquaChile has over 400 clients in more than 50 countries in the five continents

We have more than 19 years of experience in Asia and over 20 years in the fresh salmon market

Some 2011’s Figures

2,715,000 Boxes

3,171 Trucks

1,813 Containers

78 Cargo 767

Source: The Company

Destination of AquaChile’s main Salmon, Sea Trout and Tilapia salesIn net tons

Commercialization:Global presence and reputation.

Operations

Salmon and Sea Trout sales 2011 (net tons)

Tilapia Sales 2011 (net tons)28

Salmon

Tilapia

3.690

803

21810

234

23.276

2

42143

21

42

23

127

78

3.266

145

793

1.859

4.947

315

36

2.018

5.596

32

85

848

1.113

611

1.681

,

,

,

,

,

,

,

,,

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The only Salmon & Tilapia company with

operations inside Miami International

Airport

Improved cold chain

Less handling involved

AquaChile Inc:Servicing the United States from Miami.

Experienced customer service

Reliability and commitment

We deliver!

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Renowned Brands Reputable Clients

Our brands and

our main clients.

30

http://www.kroger.com/index.htm

http://www.mitsubishicorp.com/en/index.html

1Overview

2AquaChile

3Financial Review

4Sustainability and

Stakeholders

5New Developments

31

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EBITDA Pre FV Adj.In MUSD

RevenuesIn MUSD

Sanitary Crisis: Caligus

and ISA Virus

Legal change:

Industry Revival

Recovery and

profitability.

Source: The Company

Source: The Company

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Net IncomeIn MUSD

EBIT Pre FV Adj.In MUSD

Recovery and

profitability.

Source: The Company

Source: The Company

2010

IFRS

2011

IFRS

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EBITDA Pre IFRS Adj.In MUSD

EBIT per kg Pre IFRS Adj.In USD per WFE kg

Sales Volume, by specieIn thousands of WFE tons

65%

Recovery and

profitability.

Source: The Company

Source: The Company

Source: The Company

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Net Debt / EBITDAIn times

Net DebtIn MUSDIFRSPCGA IFRSPCGA

Restructured Financial Debt MaturityTotal Restructured Debt: MUS$ 182

Source: The Company

Source: The Company

Solidfinancial position.

Source: The Company

6.7

0.9

6.0

1.21.72.0

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Source: The Company

Financial

summary.

(1) “Cost of sales” deducted “Adjustment from depreciation and amortization expenses”

(2) “Distribution costs” plus “Administration expenses”

(3) “Fair Value of biological assets harvested and sold” plus “Fair Value of biological assets for the year”

(See Note 11 to the Financial Statements. Biological Assets)

2010 2011

USD Th 4Q10 2010 1Q11 2Q11 3Q11 4Q11 2011 ∆QoQ ∆YoY

Sales 131,294 387,841 135,884 96,960 102,568 165,740 501,151 26% 29%

Operational cost (1) -90,671 -309,524 -93,231 -80,235 -85,024 -126,364 -384,854 39% 24%

Operational margin 40,623 78,317 42,653 16,724 17,545 39,376 116,298 -3% 48%

Other cost and operating expenses (2) -11,326 -20,593 -9,923 698 -5,297 -6,421 -20,944 -43% 2%

EBITDA pre FV adj. 29,297 57,724 32,730 17,421 12,248 32,955 95,355 12% 65%

Depreciation & Amortization -7,939 -16,587 -4,890 -5,454 -4,105 -4,824 -19,273 -39% 16%

EBIT pre FV adj. 21,358 41,137 27,840 11,967 8,143 28,131 76,081 32% 85%

Net revenues from biological assets (3) 15,239 9,290 -9,948 4,211 -7,648 18.278 4,893 20% -47%

EBIT post FV adj. 36,597 50,427 17,892 16,178 495 46,409 80,974 27% 61%

Other non operating items 17,116 7,667 -8,391 -6,402 -2,034 -9,271 -26,098 -154% -440%

Financial expenses -1,532 -11,521 -5,329 -6,115 -1,481 -1,047 -13,972 -32% 21%

Financial income 37 630 100 968 232 333 1,632 800% 159%

Other non operating items (4) 1,932 2,201 270 456 -33 -243 450 -113% -80%

Income taxes 16,679 16,356 -3,432 -1,712 -751 -8,313 -14,209 -150% -187%

Net income 53,713 58,093 9,501 9,776 -1,539 37,137 54,876 -31% -6%

Total Assets 571,376 571,376 569,234 794,940 752,512 826,505 826,505 45% 45%

Total Liabilities 539,404 539,404 528,300 378,439 337,504 375,409 375,409 -30% -30%

Total Equity 31,972 31,972 40,934 416,501 415,008 451,097 451,097 1311% 1311%

36

1Overview

2AquaChile

3Financial Review

4Sustainability and

Stakeholders

5New Developments

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Sustainability:New regulation with long term vision

Larger Size and Operational Scale

Mortality indexIn %

Harvest weight evolutionKg WFE

Sernapesca workforce increase in X, XI and XII Regions

Self-regulationActive participation of industry actors in recent cases of sanitary code violations

68

128

2009 2010

Plants

Fresh Water

Smolts in lakes and estuariesBroodstockBiocontainment and bioexclusionEggs

Sea Water

All in/all outFallowingDensityBiocontainment and bioexclusionMacrozones

Farming Licences

Minimum DistanceNew concessionsTimeTransferLoss

Biocontainment and bioexclusionfrom harvesting until packing

New regulation, more oversight and continuous improvement: Concrete results

Regulatory framework Supervision and self-regulation Results

88%

Source: Chile Transparente/Sernapesca

Source: AquabenchSource: The Company

Source : Aquabench

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Management and Boardof Directors

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- Top management accumulate more than

300 years in the aquaculture industry

- Board of Directors composed by 4 of the

AquaChile’s founders plus other 3 directors with

extensive experience in commodities production

business, aquaculture and investments

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-More than

4,800 employees in Chile, Costa Rica, Panama & United States

-Benefits above legal requirements

-On the job training

-Costa Rica: ISO 14001:2004, OHSAS 18001:2007 and BAP for Global

Aquaculture Alliance, the most demanding at present

-Chile: Global GAP certification in progress

-Social Responsibility Report available (www.aquachile.com/sustainability)

OUR LABOR AND

ENVIROMENTAL

STANDARDS

We are committedto our employees, our clients and the environment.

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-To produce quality, healthy and safe food

-To act in a proactive and respectful way towards the environment

-To develop in a safe and healthy work environment

-To benefit the communities and suppliers in the places where the

company operates

OUR CORPORATE SOCIAL RESPONSIBILITY PRINCIPLES


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1Overview

2AquaChile

3Financial Review

4Sustainability and

Stakeholders

5New Developments

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Disease freerecirculation hatchery: Chaicas.

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State of the art

research facility: Lenca.

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Alejandro Cristian

Verlasso salmon

Verlasso farms

Harmoniously raised fishwww.verlasso.com

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Fish feed in Costa Rica:association with Biomar.

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Pet food flavoring plant:association with SPF.

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Mar - 2012 6th Annual Andean Conference

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Transcript of Mar - 2012 6th Annual Andean Conference