1. Collaboration in the Seafood Industry Graham Stuart Chief Executive Officer Sealord Group

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3. An overview of the Industry  4 companies account for 75% of the industry  Over 90% of production is exported  Traditional markets have stagnated  Production volumes fell by 60% over a decade

4.  Faces strong competition from domestic production in most export markets  Highly regulated  Under intense scrutiny from environmental interest groups  Quota management of natural resource = natural collaborative platform An overview of the Industry

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7. Seafood Industry Economics 7 Total Revenue~ $3 billion Exports $1.6 billion EBITDA (est)~ $270 million Invested Capital~ $6.5 billion Quota $4.0 billion Return on Invested Capital4.2%

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9. Good Examples of Collaboration  Working with the regulator  Deep Water Group partnership with MPI (3 CEO’s as Directors)  Deep Water Group collaboration on major policy matters (represent over 95% of quota holders)  Improving our global sustainability credentials  Marine Stewardship Council (a WWF off shoot) accreditation for our major fisheries  Deploying technologies to reduce our impact  Protecting the marine environment – Benthic Protection Areas closed to bottom trawling  On risky innovation ventures  One significant PGP partnership involving 3 Companies and Plant & Food Research

10. Good Examples of Collaboration  In Market  Fewer examples of collaboration, all relatively small  trade delegation to North America  Pure New Zealand Green Shell Mussels in China  Fishing Ventures  We know surplus capacity could be reduced with greater collaboration between harvesters.  The prize is potentially high 10

11. On Collaboration David Hume 18th Century Scottish Philosopher “Your corn is ripe today; mine will be so tomorrow. 'Tis profitable for us both, that I should labour with you today, and that you should aid me tomorrow. I have no kindness for you, and know you have as little for me. I will not, therefore, take any pains upon your account; and should I labour with you upon my own account, in expectation of a return, I know I should be disappointed, and that I should in vain depend upon your gratitude. Here then I leave you to labour alone; You treat me in the same manner. The seasons change; and both of us lose our harvests for want of mutual confidence and security.”

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13. Collaboration requires Collaborative Leadership skills And a culture that values and supports collaboration Four keys to successful collaboration: Sounds simple… Be clear about the goal Develop mutual understanding Know when to lead and when to follow Encourage information sharing Collaboration

14. 14 Collaboration is easy Let’s not kid ourselves…