1. 1 DOMESTIC AQUACULTURE A Darden Restaurant Perspective April 16, 2008 2008 USDA ARS/CSREES Aquaculture Stakeholder Workshop

2. 2 Why Domestic Aquaculture Darden Restaurants is committed to growth Global demand for seafood will grow Wild capture stable Responsible aquaculture must fill the gap Domestic aquaculture should play a greater role – 80% of the seafood consumed in the U.S. is imported Darden Restaurants is committed to growth Global demand for seafood will grow Wild capture stable Responsible aquaculture must fill the gap Domestic aquaculture should play a greater role – 80% of the seafood consumed in the U.S. is imported

3. 3 Darden Overview Six concepts: Largest publicly traded, owned and operated full-service dining restaurant company in world Over 1700 restaurants in U.S., Canada and Puerto Rico 170,000 employees 400 million guests per year $6.7 billion in annual sales Six concepts: Largest publicly traded, owned and operated full-service dining restaurant company in world Over 1700 restaurants in U.S., Canada and Puerto Rico 170,000 employees 400 million guests per year $6.7 billion in annual sales

4. 4 We Are a Global Seafood Purchaser Darden sources seafood from over 30 countries We are unique in the restaurant business -- Seafood Center of Excellence Food safety is our number one priority Our seafood purchases are roughly $900 Million, aquaculture representing 60% Darden sources seafood from over 30 countries We are unique in the restaurant business -- Seafood Center of Excellence Food safety is our number one priority Our seafood purchases are roughly $900 Million, aquaculture representing 60%

5. 5 Darden Brands

6. 6 Global Wild Harvest Supply Production Source: FAO FishStat '50'55'60'65'70'75'80'85'90'95'00'04 0 20 40 60 80 100 Millions of MT

7. 7 World Aquaculture Production Total Growth Rate Source: FAO Aquaculture Production, by FAOSTAT Group, Growth has slowed from over 16% in the early 1990's to around 5% per year

8. 8 Sustainable Seafood Darden being a global purchaser of seafood – is committed to sustainable wild-capture fisheries – is committed to sustainable aquaculture – recognizes there is a need for sustainable fisheries and aquaculture to meet global protein needs Darden being a global purchaser of seafood – is committed to sustainable wild-capture fisheries – is committed to sustainable aquaculture – recognizes there is a need for sustainable fisheries and aquaculture to meet global protein needs

9. 9 Demand and Supply Gap Data from U.S. Census and FAO Assumes constant seafood consumption of 7.48kg/capita and population growth of 0.9% per annum (US Census) Millions of MT Current Production Required Production 400,000 MT deficit requires an 18% increase in supply To Maintain Per Capita Status Quo (16.5 lbs. ) Requires Approximately 400,000 Additional Metric Tons (edible wt.) by 2025

10. 10 U.S. Restaurant Industry – Demand Growth Source: National Restaurant Association 2008 Restaurant Industry Forecast 67% Increase in less than 10 years 67% Increase in less than 10 years Restaurant Industry Sales (Billions of Current Dollars) 945,000 Restaurants Will Hit $558.3 Billion in Sales in 2008

11. 11 Darden’s Transition with Evolution in Seafood Industry SPECIES Shrimp Salmon Tilapia Trout Catfish Arctic Char Hybrid Stripped Bass Mussels Oysters Clams 1 9 6 8 - 1 9 8 8 WILD-CAPTUREAQUACULTURE XX XX X X X X XX X 1 9 8 8 - 2 0 0 8 WILD-CAPTUREAQUACULTURE XX XX X X X X X X X X

12. 12 Aquaculture Drivers Supply – year round accessibility Quality Product Variety Price Consistency Traceability Supply – year round accessibility Quality Product Variety Price Consistency Traceability

13. Power of Domestic Aquaculture Fresh Product Regional Markets Variety Short supply chain Strict environmental conditions Fresh Product Regional Markets Variety Short supply chain Strict environmental conditions 13

14. 14 Darden’s Recommended List of Aquaculture Species

15. 15 Darden’s Recommended List of Aquaculture Species Redfish Sea Trout Red Snapper Pompano Halibut Tuna Grouper Lobster Cod Dungeness Crab Redfish Sea Trout Red Snapper Pompano Halibut Tuna Grouper Lobster Cod Dungeness Crab Tier One Species

16. 16 Darden’s Recommended List of Aquaculture Species Redfish Sea Trout Red Snapper Pompano Halibut Tuna Grouper Lobster Cod Dungeness Crab Redfish Sea Trout Red Snapper Pompano Halibut Tuna Grouper Lobster Cod Dungeness Crab Mahi Mahi Bay scallops Oysters Clams Blue/Swimming Crabs Mussels Mahi Mahi Bay scallops Oysters Clams Blue/Swimming Crabs Mussels Tier One Species Tier Two Species

17. 17 Darden’s Recommended List of Aquaculture Species Redfish Sea Trout Red Snapper Pompano Halibut Tuna Grouper Lobster Cod Dungeness Crab Redfish Sea Trout Red Snapper Pompano Halibut Tuna Grouper Lobster Cod Dungeness Crab Cobia Black Drum Trippletail Snook Amberjack Hogfish Sea Bream Other Flatfish Conch Cobia Black Drum Trippletail Snook Amberjack Hogfish Sea Bream Other Flatfish Conch Mahi Mahi Bay scallops Oysters Clams Blue/Swimming Crabs Mussels Mahi Mahi Bay scallops Oysters Clams Blue/Swimming Crabs Mussels Tier One Species Tier Three Species Tier Two Species

18. 18 Closing Thoughts Be guided by what the customer wants Take advantage of your location – regional production Customer –Producer-Researcher partnership Regulatory climate conducive to aquaculture Leverage existing US infrastructure Be guided by what the customer wants Take advantage of your location – regional production Customer –Producer-Researcher partnership Regulatory climate conducive to aquaculture Leverage existing US infrastructure

19. 19 Vision for Domestic Aquaculture Profitable/Attracts Capital Opportunities for Coastal and Farming Communities Gold Standard for Sustainable Aquaculture Global Technology Leader Profitable/Attracts Capital Opportunities for Coastal and Farming Communities Gold Standard for Sustainable Aquaculture Global Technology Leader