Peruvian Anchovy Fishery and Austral Group S.A.A Sustainability Performance

1. Peruvian Anchovy Fishery and Austral Group S.A.A Sustainability Performance Adriana Giudice Alva CEO

2. Agenda Company Outlook • Peruvian fishing industry and Anchovy fishery • Regulatory frame • Austral Group S.A.A. sustainability performance

3. Austral Group S.A.A Austral is a Peruvian fishing company leader in innovation, quality and environment performance, publicly listed on the Lima stock exchange. The Norwegian group Austevoll Seafood ASA, one of the world ‘s largest fishing group, is our largest shareholder owning 89.35% of the capital.

4. Austral Group S.A.A VISION Setting the course for innovation. MISSION Becoming the leading fishing company in Peru, satisfying market needs with innovative and high-quality products, directing our activities towards entrepreneurial success, with social and environmental accountability.

5. Austral Group S.A.A. VESSELS AND FACTORIES • 7 fishmeal & fish oil plants • 2 canned fish plants • 2 frozen fish plants • 37 fishing vessels (11 with RSW capacity of 5.871 m3) • 7% anchovy fishing quota.

6. Austral Group S.A.A. OUR PRODUCTS • Fishmeal. • Fish Oil. • Canned fish. • Frozen fish.

7. AUSTRAL GROUP IN NUMBERS

8. Agenda Company Outlook • Peruvian fishing industry and Anchovy fishery • Regulatory frame • Austral Group S.A.A. sustainability performance

9. Humboldt current. Trade winds + continental platform = Upwelling of nutrients for phytoplankton. Large quantity of carbon in the ocean. Large marine resources off the Peruvian coast

10. Tuna -(3,872 MT) Skipjack, Big Eye PERU IS A MAJOR FISHING COUNTRY WOLDWIDE - LANDINGS 2008 Anchovy - (6,206,857 MT) Engraulis Ringens Jack Mackerel - (159,115 MT) Mackerel -(88,078 MT) Scomber Japonicus Thrachurus Murphy

11. WHERE DOES THE PERUVIAN FISHING INDUSTRY STAND IN 2008?

12. A PRIVILEGED & UNIQUE BIOMASS Peru Engraulis Ringens Stock North-Centre Stock South Peru-Norh Chile Chile DISTRIBUTION OFANCHOVIES

13. Engraulis Ringens Estimated Biomass (2009) Center North: 7.6m South: 0.5m Minimum size for catches: 12 cm Maximum limit for juvenile catches: 10% Maximum limit for by-catches: 5% Peruvian Anchovy

14. Agenda Company Outlook • Peruvian fishing industry and Anchovy fishery • Regulatory frame • Austral Group S.A.A. sustainability performance

15. Flow chart of Peruvian Administration Ministry of Production IMARPE ITP Vice-Ministry of Fisheries ADVISING ENTITIES FONDEPES National Directorate of Fishing Extraction & Processing CEP PAITA National Directorate of Artisan Fisheries National Directorate of Tracking, Control & Surveillance National Directorate of Aquaculture National Directorate of Fishing Environment

16. Protection of Eco-systems. Preservation of Biodiversity. Sustainable use of marine resources. Implementation of clean technologies. ENVIRONMENTAL POLICY

17. Scientific investigation of marine resources. World class authority recognized by FAO, UNESCO, ICES, CIAT. Intensive monitoring through research cruises. Eco-system approach. INSTITUTO DEL MAR DEL PERÚ (IMARPE)

18. Framework based on prevention and sanctions. Strict controls to prevent fishing of young specimens. Fishing within 5 miles area reserved for artesanals. Two annual fishing bans based on spawning of biomass. BIOMASS CONTROL HEALTHY BIOMASS

19. Anchovies moving in large schools. Purse seiner fishery. Minimum size of mesh: ½ inch (13mm). By-catches of 3.6% well below FAO limit of 8% (IMARPE, Annual Report 2007). LIMITED LEVELS OF BY-CATCHES

20. Satellite monitoring of fishing vessels. Online control from Ministry of production. Control of unloading in each plant done by independent bodies. Strict enforcement of regulation. CONTROL OF UNLOADINGS

21. Commitment against child malnutrition By law, min. 8% of all food purchases by the Peruvian state destined to social programs have to be anchovy and/or squid. Promote job creation. Increase added value products ANCHOVY FOR HUMAN CONSUMPTION IS A STATE POLICY

22. Depending on license capacity and historical fishing records. Better planning of fishing operations. Less fishing pressure on Biomass. Safer operations for the fishing crews. NEW SYSTEM OF INDIVIDUAL QUOTAS World Bank (2006): “(It is recommended that Peru, among other policies, implements a System of Transferrable Individual Quotas. This system (…) could be modelled after the experience of several countries within the OECD”. PERÚ, Increasing the Benefits from the Fisheries Sector trough Policy Reform.

23. “Code of ethical conduct” from the Fishing National Society (SNP). Commitment to reduce the social impact of the new quota system through FONCOPES: - Financial support - Training programs - Pension scheme for early retirement. COMMITMENTS FROM THE PRIVATE FISHING SECTOR

24. The biomass of Peruvian anchovy is healthy. The anchoveta is “fully exploited” according to FAO report 2008. Peru is the country with the “Best Management of fishing resources” (University of British Columbia, 2009). SUMMARY

25. Agenda Company Outlook • Peruvian fishing industry and Anchovy fishery • Regulatory frame • Austral Group S.A.A. sustainability performance

26. OUR INDICATORS OF ENVIRONMENT MANAGEMENT • Liquid effluents • Air emission • Solid residues (Dangerous and Non Dangerous) • Fuel consumption • Water consumption

27. - Plan HACCP (1994) - Dolphin Safe (2001) - ISO 9001:2000 (2002) - ISO 14001:2004 (2005) - Friend of the Sea (2008) AUSTRAL LONG TERM LEADER MAIN CERTIFICATIONS

28. ACKNOWLEDGEMENT FROM GOVERNMENT Austral was awarded the Prize for the “Cleanest and Most Eco-efficient Production - 2008” for the Model of Environmental Management System successfully implemented in all the production plants. This reward was given by the Ministry of Environment to promote an adequate management and handling of solid residues.

29. Increased use of fish oil for human consumption. Leader in production of canned fish in Peru, including canned anchovy. New investments in Human consumption applications. COMMITMENT TO ADDED VALUE WORLD FISH OIL CONSUMPTION

30. Health campaign (benefiting 1,192) Re-Building of housing (Earthquake, Pisco 2007) Literacy program (to be implemented soon, 137 workers). SOCIAL RESPONSIBILITY WITH SURROUNDING COMMUNITIES

31. Canned fish production: 79´650,000 cans in total 22´194,000 cans of anchovies Labour intensive industry: Paita: 1 442 workers Coishco: 1 567 workers Major impact on coastal cities affected by lack of industry. Currently building a new canned fish factory in Pisco. AUSTRAL IS A LARGE EMPLOYER

32. Environmental initiative by fishmeal & fish oil producers within the APROPISCO association. System used to evacuate effluents previously treated. Includes a 13.8-kms long submarine pipeline. Preserving the National Reserve of Paracas. Program duly monitored by governmental authorities (DIGESA & DICAPI). APROPISCO SUBMARINE PIPELINE

33. Austral: A good match with Friend of the Sea Leadership in innovation and quality. Commitment with environment. Social Responsibility. Job creation in poor surrounding communities. FRIEND OF THE SEA CERTIFICATION SUMMARY

34. Thank you for your attention