Presentation for IMC Meeting Mainland China/Hong Kong

Market Overview General Economy: Mainland China: CPI rose 2% in 2016. E-commerce experienced robust growth with the sales reaching RMB91.39 billion (USD13.55 billion), up 68.6% compared to 2015. Traditional retail was suffering a shrink. New retail (Hema Fresh/Yonghui Super Species) is growing up rapidly. Hong Kong: Both retail and foodservice had an increase in sales. The retail sector rose by 3.9% to USD 11.9 billion and the foodservice sector also had the same percentage increase to USD 17.89 billion in 2015. Seafood consumption remains high as a result of HK consumers’ preference for seafood and the lack of natural resource locally available. Macau: The economy has begun to rebound recent years. The Hong Kong-Zhuhai-Macau Bridge project will be completed towards the end of 2017. It will be helpful to the imports of seafood to Macau directly.

Seafood Update Seafood Market: Reprocessing down as production shifts to SE Asia and increased labor cost. Increased domestic consumption; More imported seafood into China with Russia ranked the top, followed by USA, Canada, and New Zealand etc.; Healthy trend led to increased demand for seafood over meat. Especially, imported high quality seafood is deemed as excellent food products for children’s complementary feeding; With the development of e-commerce and logistics, frozen seafood is becoming the main steam for consumption; Lower import tariffs will be helpful to the seafood access to the Chinese market; Sustainability is an overwhelming topic in China. With growing consumer awareness of the attributes of wild, natural and sustainable, it is believed that Alaska seafood consumption will continue to rise.

Seafood Imports from Alaska (2015-2016) MTs China’s total import volume of Alaska seafood 338,011MTs in 2016. Increasing labor cost has resulted in many Alaska seafood shifting to SE Asian countries for re- processing, which therefore led to dropping down of Alaska seafood imports. However, many imported seafood products enter the Chinese market from border countries more freely with zero tariffs.

New & Deep-Processed Products Promotion Highlights of the Year E-commerce Promotion New & Deep-Processed Products Promotion

Highlights of the Year – E-commerce Promotion In FY16/17, ASMI China parented with 4 online platforms, including YHD.com, Chunbo.com, JD.com, and TMALL.com. The total sales reached more than 280MTs. April 24-May 6, 2017 April 29 - May 13, 2017 April 30-May 10, 2017 June 18-22, and June 30-July 5,  2017

Highlights of the Year – E-commerce Promotion Alaska Yellowfin sole Alaska Dungeness Crab Alaska Cod Alaska Scallop Alaska Pollock Alaska Sea Cucumber Alaska Black Cod Alaska Spot Prawn April 24 - May 6, 2017

Highlights of the Year – E-commerce Promotion Alaska Cod Alaska Pollock Alaska Sea Cucumber Alaska Black Cod Alaska King Crab Alaska Dungeness Crab April 29 - May 13, 2017

Highlights of the Year – E-commerce Promotion April 30 - May 10, 2017

Highlights of the Year – E-commerce Promotion June 18 - 22 & June 30 - July 5,  2017

Highlights of the Year – E-commerce Promotion This was the third time for ASMI China to work with TMALL.com In addition to regular products like salmon, king/snow crab, black cod, halibut, cod, sea cucumber and yellowfin sole etc., new products and deep-processed/ready-to-eat products like pollock roe, pollock hamburger and nuggets were promoted. The sales during the promotion was treble of the non- promotion period, hitting 90,000kgs.

Highlights of the Year – E-commerce Promotion On June 21, Tmall hosted a live streaming in Detroit via its mobile app, when there was a 15-min video on air to introducing Alaska seafood. It is a way for Chinese customers to feel and experience catching Alaska seafood through Tmall Discovery. ASMI Executive Director Ms. Alexa Tonkovich together with the rep from Tmall and Alaska seafood importer attended this live streaming, which introduced the nutritional value and the sustainable development concept of Alaska seafood. The viewer was reached 150 thousand.

Highlights of the Year – E-commerce Promotion In conjunction with the online promotion, there was an offline VIP event in Shenzhen, which provide an opportunity for consumers to experience Alaska seafood at offline while online sales.

Highlights of the Year – E-commerce Promotion Alaska seafood has been the popular products in e-commerce platforms. Over 10 e-commerce platforms in China sell Alaska seafood with more than 10 varieties of Alaska seafood on a long term basis.

Highlights of the Year – New & Deep-Processed Products Promotion ASMI China increased focus on promotion of new products such as Pollock roe and herring roe etc. through various promotions throughout the year in addition to promoting traditional products. Chef seminars Trade gatherings Online promotions New recipes were developed to feature these new products. Besides Japanese restaurants, about 20 Chinese hotels/restaurants have started to use Pollock roe and herring roe in their menu.

Highlights of the Year – New & Deep-Processed Products Promotion Deep-processed pollock products was popular in China recent years. Famous chain fast food restaurants involved in Alaska pollock, and promoted it on several platforms including Weibo, ads on subways, and outdoor billboards etc. With the rising healthy trend, and the consumers’ recognition of Alaska seafood, more seafood processors applied for ASMI logo on their product package, to enable consumers to recognize the Alaska seafood is a safe and reliable food.

Strategy Continue to work with Chinese key seafood importers to build up a stronger sales network. Keep promoting the nutritive value and sustainable concept. Stay close with more e-commerce platforms Tmall., JD.com, YHD.com, Benlai.com, Sfbest.com, Yiguo.com, freshfresh.com, fruitday.com……. O2O activities/promotions Offline showcase/road show with online sales Promote Alaska seafood through more different channels, especially new social media, and digital media Wechat ASMI account, Weibo, KOL posts / blogs APP (Toutiao)

Upcoming Plans ASMI China Seafood Show - Attend the annual China Fishery & Seafood Expo 2017 in Qingdao, Nov. 1-3, 2017 and SIAL in Shanghai, May 16-18, 2018 - Expand ASMI’s presence at the shows and introduce more products to Chinese traders Foodservice and Chef Training - Enhance promotion of Alaska seafood in collaboration with high-end international hotel and chain restaurants - Further give education on hotel chefs of Alaska seafood through chef seminars E-Commerce - Continue partnership with e-commerce retail platforms in online sales of Alaska seafood - O2O activities will integrate online sales, in-store sales and offline experience Social Media/Digital Media - Increase presence and interaction on social media such as Wechat and Weibo - Utilize KOL to introduce to introduce Alaska seafood and promote ASMI activities - Increase exposure of Alaska seafood via new digital media like mobile APP, with popularization of smart phone in China

Industry Help & Support Please join us 2017 China Fishery & Seafood Show in Qingdao on November 1-3, 2017. Thanks for getting support from all of you as always. Looking forward to working closely with you!

Thank you!