1. Adriana Giudice Alva CEO
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. 3

4. Setting the course for innovation.
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. 4

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 m3)
7% anchovy fishing quota. 5

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

7. AUSTRAL GROUP IN NUMBERS
FISHMEAL & FISH OIL
2008
Raw material – Own fleet & third parties (MT)
580,000
Fishmeal production (MT)
121,916
Fish oil production (MT)
25,698
HUMAN CONSUMPTION
76,000
Canned fish production (cases)
1,919,191
Frozen fish production (MT)
2,984
SALES
Total sales (US$m)
202
Exportations (US$m)
176
PARTICIPATION IN FISHING
Quota for anchovy fishing 7%
Estimated quota for 2009 (MT)
385,000
N° de trabajadores, incluye Conservera de las Amerícas trabajadores

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

9. Large marine resources off the Peruvian coast
Humboldt current.
Trade winds +
continental platform =
Upwelling of nutrients for phytoplankton.
Large quantity of carbon in the ocean.
Fishing holds an important place among the Peruvian Industry. We have been blessed with plentiful resources at the Sea. And having this availability is due to some important factors. The Humboldt current drives cold waters from the south, creating just the right temperatures for our targeted species.
But, of course, those species do not only live of temperature. The combination of a wide underwater platform and the presence of trade winds encourage the upwelling of deeper waters, thus bringing nutrients up to the surface and feeding the phyto and zooplankton. These make the waters off the coast of Peru very rich ones.
The amount of carbon in the sea determines the capacity to obtain carbon dioxide, which is a driver for the larger or lesser presence of oxygen. While the world average is 0.15 grams of carbon per square meter a day, Peru reaches between 1 and 1.5 grams of carbon per square meter a day, and even some areas reach higher values, like Chimbote  with 6.99 grams of carbon per square meter a day.  9

10. 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)
Thrachurus Murphy
Scomber Japonicus
Tuna - (3,872 MT)
Skipjack, Big Eye

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

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

13. Minimum size for catches: 12 cm
Peruvian Anchovy
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%
Pelágico: Término que se utiliza para denominar a los organismos marinos que viven en la columna de agua, en alta mar. Perteneciente al océano, se refiere a las aguas, sea cual sea la profundidad o situación con referencia a la línea de la orilla. Dícese también de los peces que pueblan las aguas superficiales 13

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

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

17. INSTITUTO DEL MAR DEL PERÚ (IMARPE)
Scientific investigation of marine resources.
World class authority recognized by FAO, UNESCO, ICES, CIAT.
Intensive monitoring through research cruises.
Eco-system approach.
FAO: Food and Agriculture Organization
UNESCO: Organización de las Naciones Unidas para la Educación, Ciencia y Acuicultura.
ICES: International Council for the Exploration of the Sea.
CIAT: Comisión Interamericana de Atún Tropical.

18. BIOMASS CONTROL
HEALTHY BIOMASS
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.

19. LIMITED LEVELS OF BY-CATCHES
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).
El descarte está definido como la porción de captura que es desechada al mar, se produce por: exceso de pesca, alto porcentaje de juveniles y captura incidental de otra especie, siendo principalmente registrado el descarte por exceso de pesca (98%). El descarte, junto con la captura incidental, son una fuente recurrente de mortalidad por pesca en casi todas las pesquerías del mundo. En la pesquería de la anchoveta, el principal determinante de los descartes es el exceso de captura. Las estimaciones de este descarte por exceso han ido cayendo, desde el 9% de 1987 al 3% en 1994 y a 2,5% en el 2005.
Las redes de cerco usadas son la mejor opción para la pesca responsable de la anchoveta, al estar esta congregada en grandes cardúmenes, permitiendo la captura del recurso objetivo y minimizando las posibilidades de pesca incidental.

20. CONTROL OF UNLOADINGS
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.

21. ANCHOVY FOR HUMAN CONSUMPTION IS A STATE POLICY
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

22. NEW SYSTEM OF INDIVIDUAL QUOTAS
Depending on license capacity and historical fishing records.
Better planning of fishing operations.
Less fishing pressure on Biomass.
Safer operations for the fishing crews.
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. COMMITMENTS FROM THE PRIVATE FISHING SECTOR
“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.
La politica de estado esta respaldada por el sector privado

24. The biomass of Peruvian anchovy is healthy.
SUMMARY
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).
Se cambio el “Enfoque Clásico o Poblacional” (Unidad de Stock Poblacional) por el “Enfoque Ecosistémicos” (Unidades ecológicas). Un ‘enfoque ecosistémico’ marino significa que se toman en cuenta todas las delicadas y complejas interacciones entre los organismos (de todos los tamaños) y los procesos físicos (tales como las corrientes y la temperatura del mar por ejemplo) que componen el ecosistema marino.
En tal sentido, el enfoque ecosistémico no sólo está dirigido a la reglamentación de la pesca de ciertas especies, sino que también vela porque la pesca no tenga un efecto desfavorable en otras especies afines o dependientes de las especies objetivo. Los esfuerzos, por lo tanto, estarán dirigidos a preservar la ‘integridad’ del ecosistema mediante el establecimiento de límites conservadores (es decir, precautorios) a fin de tomar en cuenta las necesidades de las especies relacionadas y preservar la sostenibilidad ecológica de todas las especies involucradas (incluyendo al hombre) y del hábitat donde viven.

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. AUSTRAL LONG TERM LEADER
MAIN CERTIFICATIONS
- Plan HACCP (1994)
- Dolphin Safe (2001)
- ISO 9001:2000 (2002)
- ISO 14001:2004 (2005)
- Friend of the Sea (2008)
Primera empresa pesquera en el Perú en tener un Plan HACCP (1994).
Nueva Certificación 2008:
“Friend of the Sea”
Fishmeal, Fish Oil, Canned Fish and Frozen Fish.
Peruvian Anchovy and Mackerel.
Peruvian anchovy is not overexploited (IMARPE, FAO).
Mackerel is considered as moderately to fully exploited (FAO).

28. ACKNOWLEDGEMENT FROM GOVERNMENT
Austral was awarded the Prize for the “Cleanest and Most Eco-efficient Production ” 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. COMMITMENT TO ADDED VALUE WORLD FISH OIL CONSUMPTION
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.
WORLD FISH OIL CONSUMPTION

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

31. AUSTRAL IS A LARGE EMPLOYER
Canned fish production:
79´650,000 cans in total
22´194,000 cans of anchovies
Labour intensive industry:
Paita: workers
Coishco: workers
Major impact on coastal cities affected by lack of industry.
Currently building a new canned fish factory in Pisco.
El impacto de la pesqueria es fuerte debido al bajo nivel de desarrollo en la costa peruana

32. APROPISCO SUBMARINE PIPELINE
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). 32

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

34. Thank you for your attention