November 27, 2013

Cermaq, which has more than 50% of its production in Chile, aims to reduce the production cost for Atlantics by 18% in 2015 through comprehensive actions to improve the biological performance.

The capital markets day in Trafun in Los Lagos Region (X), Chile was part of a broader Cermaq field trip presenting the framework for Chilean industry including sanitary situation, production estimates as well as the regulatory situation and policy development.

"Improved fish health conditions in Chile are a prerequisite for restoring profitability in this important farming region for Cermaq. The strategy we have presented includes an ambition to reduce our production and downgrading costs for Atlantic salmon with US$0.8 per kilogramme in 2015," says CEO Jon Hindar.

The key elements to improve the biological situation include local industry coordination and cooperation, regulatory framework enforcement; especially related to Caligus (sea lice in Chile), and more treatment options now made available to the industry.

Cermaq aims to grow both organically and through selected acquisitions to become the global no. two by volume in salmonids, and is well positioned and has the fundamentals in place to create shareholder value.

"Cermaq is transforming into a dedicated fish farming company, and will focus on profitable growth while we remain open to participate in industry consolidation provided industrial merit and shareholder value creation," concludes Jon Hindar.

On December 9, 2013, Cermaq's Board will decide on a call for an extraordinary general meeting on January 7, 2014 with an anticipated proposal for an initial extraordinary dividend of around NOK50 (US$8.20) per share based on the proceeds received at closing of the sale of EWOS (supplier of feed and nutrition for farmed fish), with a potential additional dividend at a later stage.