Greenland – Iceland New opportunities – distribution network Greenland – Iceland New opportunities – distribution network September 5th 2017 Director of Corporate Relations & HR Jens K. Lyberth

Related to our Supply Chain & Logistics: Royal Greenland in brief Turnover +5 Billion DKK 2.400 employees located in 17 countries Truly vertically integrated company, combining fishing with processing, logistics and sales Logistic key figures Total logistic costs 309 million DKK We deliver approx. 526.000 pallets to customers in 45 countries world wide Royal Grenland do not own any logistic facilities, everything are outsourced to local and international logistic providers Related to our Supply Chain & Logistics:

Fishing & Processing

38 production sites in Greenland Production facilities in Greenland 15 trawler vessels 38 production sites in Greenland QAANAAQ 138 tons +1500 independent fishermen deliver their catches to Royal Greenland’s facilities UPERNAVIK 4,798 tons UUMMANNAQ 7,427 tons ILLULISSAT 6,559 tons AASIAAT 2,253 tons QASIGIANNGUIT 2,447 tons SISIMIUT 5,238 tons MANIITSOQ 4,752 tons NUUK 2,589 tons PAAMIUT 1,553 tons NARSAQ 231 tons AAPPILATTOQ 106 tons

The total volume has been increasing in recent years Volumes from Greenland Royal Arctic Line shipped 76,225 tons of seafood from Greenland to Aalborg, DK in 2016 The total volume has been increasing in recent years

Production facilities outside Greenland Processing of prawns 1 site Aalborg Production of seafood in brine and packaging of frozen cold water prawns. Denmark Outsourcing Primarily China & Poland Special products for the Japanese market, and processed prodcuts for the Europeen market International Production & Sourcing 6 sites Matane & Newfoundland Primary species: snow crab cold water prawns whelk lobster cod greenland halibut herring capelin Canada Roe and packing 2 sites Cuxhaven Production of roe and packaging of natural fish. Primary species: Lumpfish Cod Saithe salmon Germany

Sales & Logistics

Export volumes of Greenlandic products EUROPE 40,201 tons NORTH AMERICA 425 tons ASIA 33,517 tons

Net turnover by Sales Channel Drop size: Retail 860 kg Drop size: Foodservice 474 kg Drops size: Industry 16,300 kg

Main Supply Chain flows (as-is) 7 DC´s in Europe DC in Greenland DC in USA DC in Canada Several DC´s in Japan 49 Production Sites 13 Sales officies

New opportunities

Royal Arctic Lines joint venture with Eimskip

Royal Arctic Lines joint venture with Eimskip

Potential Reduced transit time from fishing/production to customer Logistic cost savings Strategic commitment to creating growth and jobs in Greenland

Preconditions for HUB Nuuk

Possible scenarios by the new network set-up Central hub in Nuuk, Reykjavik or Rotterdam with direct shipments to: Distributions centers in EU Production platforms in EU Industry customers in EU & Asia Warehouse in Denmark will be included as distribution center equally with other distribution centers in the logistic network of Royal Greenland

Possibilities Fresh fish (chilled) Express - Seafreight from Greenlandic plants to either Nuuk or Reykjavik: High volume airfreight directly to worldmarkets

Barriers & Challenges

Challenges Authority approval Health Certificates Mandatory documentation for all exports As is: Cooperation agreement between Greenland and Denmark Documents signed and controlled by the Danish veterinary authorities Local function with veterinarian staff needed! Business case for cost calculation and preparation Future competitive freight costs structure in a new set-up Fix the local freight rate issue in Greenland Avoid added costs: Forwarding agents, Harbor fees, verterarian costs etc. Involve the Greenlandic exporters & importers! 4,5 mil. DKK yearly in extra costs, if the port will change from Aalborg to Århus without notice and time preparation. (2 years advice)