The document discusses the need for Atlantic Canada to strengthen its global competitiveness and increase international trade. It notes that Atlantic Canada lags behind the rest of Canada and the world economically. To improve, it must mobilize efforts around issues like demographics, competitiveness, innovation, productivity, skills, and government processes. Going global is important because emerging economies now account for half of global GDP and their growing middle classes will demand products from around the world. The document provides examples of how certain industries and sectors in Atlantic Canada could benefit from expanding international trade.

1. 0
Global Competiveness & Trade

2. 1
So What ?
The world economy is at a pivotal point and Atlantic Canada is lagging behind the rest of Canada and the world
We need to mobilize for change:
Demographics
Competitiveness & International Trade
Innovation
Labour Productivity
Talent & Skills
Government Processes
Indebtedness
We need greater Private-sector leadership
We need to end Business and Politics as usual
We need to strengthen our region’s global competitiveness
We need to “Go Global ”
1

3. 2
Why is Going Global So Important ?

4. 3
The GDP of emerging
economies now accounts for
nearly half of global GDP and
is growing at more than
double the rate of western
economies.
Emerging economies and
their rising middle classes will
rely on the rest of the world
for inputs to build their
infrastructure, supply their
factories, design and fuel
their modes of transport, as
well as feed, house and
educate their children.
The Important Issues
26%
10%
38%
20%
23%
59%
7% 6% 2% 4% 1% 4%
2009 2030
North America Europe
Asia Pacific Central / South America
Middle East / North Africa Sub-Sahara Africa
PUCHASING POWER & THE
MIDDLE CLASS IN ASIA

5. 4
Attractive Long-Term Opportunity in China
“This year the Chinese retail sector is expected to complete a hat trick. It’s going to become the world’s largest grocery market, the worlds largest luxury market, and also the largest e-commerce market”

6. 5
We’re Already Competitive….
Aren’t We ?

7. 6
Switzerland and Singapore are the most prosperous and competitive countries in the world and a key source of their competitiveness is not natural resources, but success in international trade.
Critical success factors are:
Conscious selection of “champion” industries and sectors.
Broad coordination across public sector, private sector and academic institutions.
The Issue of Competitiveness
6

8. 7
“What is Competitiveness”
7

9. 8
Who’s the Most Competitive?
• Switzerland and Singapore are the two most prosperous and globally competitive economies in the world
• Neither country benefits from any significant historical competitive advantage i.e. natural resources
• One of their greatest sources of competitiveness and prosperity is their success in international trade
• Critical success factors:
 Conscious selection of “champion” industries & sectors
 Broad coordination across public sector, private sector and academic institutions
8

10. 9
BUT
Today, approximately 75% of all Atlantic Canada’s regional international exports are to the USA and are accounted for by fewer than 500 companies.
Even with an improving U.S. economy, we can no longer afford to be so reliant on one market.
Canadian industry and assets, such as energy, mining, agri-food, information and computer technology, aerospace, education and tourism can all be positioned to garner significant benefits from the growth in global trade flows and from these rising economies.
Other countries and regions see these same opportunities and are developing focused global trading strategies – this is what Atlantic Canada needs now.
Our Record – Dead Last in Total Economic Growth vs ROC

11. 10
BUT
Today, approximately 75% of all Atlantic Canada’s regional international exports are to the USA and are accounted for by fewer than 500 companies.
Even with an improving U.S. economy, we can no longer afford to be so reliant on one market.
Canadian industry and assets, such as energy, mining, agri-food, information and computer technology, aerospace, education and tourism can all be positioned to garner significant benefits from the growth in global trade flows and from these rising economies.
Other countries and regions see these same opportunities and are developing focused global trading strategies – this is what Atlantic Canada needs now.
Our Record – Value of NS Exports 2003 – 2012 : -30%

12. 11
Learn more about emerging market countries and their economies.
Organize or attend a “reverse trade mission”, where key foreign companies come to Atlantic Canada.
Do a strategic competitive assessment of your company. Is it ready to compete globally? Can you benefit from:
Rapid economic expansion in emerging economies?
Greater regional focus on champion industry sectors?
The +$100 billion in major capital project investment in Atlantic Canada over the next 20 years?
Mentor/Hire a new immigrant to Atlantic Canada.
Participate on a industry sector/chamber of commerce task force to develop regional economic and export strategies.
If you are already global, offer to help someone or a company that’s not.
If you aren’t already global, find someone to help you get there
How Can We Get Started ?

13. 12
Going Global - a Local Example @

14. 13
Wild Catch + Aquaculture Growth will be Insufficient to Address Supply-Demand Imbalance
Source: FAO – Fisheries and Aquaculture Information and Statistics Service; OECD-FAO Agricultural Outlook 2011-2020; Moody’s Economy.com; Moody’s Investors Service estimates.
Seafood Supply-Demand Imbalance

15. 26%
10%
38%
20%
23%
59%
7% 6% 2% 4% 1% 4%
2009 2030
North America Europe
Asia Pacific Central / South America
Middle East / North Africa Sub-Sahara Africa
Powerful Industry Fundamentals Will Continue In Our Favour
 Asia-Pacific middle class sustainable growth provides a stable
source of long-term demand (six-fold growth in consumer
spending forecast through 2020)
 Growing incomes have increased demand for high-capacity
premium products
 Increasing adaptation of premium priced western-inspired
products
Robust Emerging
Market Demand
Source: OECD, FAO Secretariates and PricewaterhouseCoopers.
 Growing focus on health and wellness driving interest in
“higher-quality” protein
 Increasing consumer willingness to pay a premium for
“sustainable” , traceable, safe food
 Desire for “authentic” taste experiences (wild-caught vs. farm-raised)
and scarcity premium (the seafood connoisseur)
Compelling
Market
“Mega Trends” in
Advanced
Economies
Supplier Pricing
Power
 Global demand outstripping finite wild-caught supply sources
 Regulatory bodies managing wild-caught fisheries
conservatively to protect long-term supply
 Declining growth of both wild-caught and aquaculture
production
 Customers willing to pay a premium for high-quality
sustainable supply
19%
23%
30%
43%
50%
Fish Oil Capture/
Wild
Traded/
Export
Fish Meal Aquaculture
Projected 2000-2020 Price Growth
14

16. 15
Source: APEC and OECD
Growth Opportunity - A Healing Global Economy

17. 16
Source: APEC and IMF
Growth Opportunity: Emerging Markets – Led by China

18. 17
0
50
100
150
200
250
300
350
400
450
2001A 2002A 2003A 2004A 2005A 2007A 2010A 2015P 2020P
Annual per capita seafood consumption
Historical Disposable Income in China
Per Capita Seafood Consumption in China
6,280 6,860 7,703 8,472
9,422
10,493
11,760
13,786
15,781
17,175
19,109
2,253 2,366 2,476 2,622 2,936 3,255 3,587 4,140 4,761 5,153 5,919
0
5,000
10,000
15,000
20,000
25,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Urban Rural
 China has become a key
seafood growth market
 Processed seafood, amongst
other nutritional sources,
meets the consumer’s
demand for a healthy and
convenient diet
 China is expected to double
its per capita spending on
seafood products from 2007 to
2020
 Advancing lifestyles and rising
disposable incomes support
strong long-term demand
Source: Wall Street research and 2011 Global Seafood Outlook report.
(Seafood purchased in Yuan per capita)
(RMB per Household)
Attractive Long-Term Opportunity in China

19. 18
Source: APEC and Statistics Canada
Growth Opportunity: A Falling Canadian Dollar vs. Major Trading Currencies

20. 19
Growth Opportunity: Free Trade with the EU
Source: APEC and Statistics Canada

21. 20
USA 62%
CHINA 11%
EU 8%
JAPAN 6%
A/O 13%
2012 CANADIAN SEAFOOD EXPORTS
$2.5 B
$451 M
$328 M
$246 M
$533 M
Opportunity – Expand AC Seafood Exports Beyond The US
Source: Agriculture and Agri-Food Canada

22. 21
Opportunity – Global Seafood Export Growth
3,948
7,976
25
5,000
3,626
1,654
51,583
4,060
8,376
3,339
4,302
1,497
0
10,000
20,000
30,000
40,000
50,000
60,000
China
EU
India
USA
Japan
Korea
Seafood Consumption (kt)
Proportion of Imports to Total Seafood Consumption
Consumption from Imports
Consumption from Domestic Product
7.1%
66.3%
0.3%
60.0%
45.7%
52.5%
Source: OECD-FAO Agricultural Outlook

23. 22
Opportunity – Global Seafood Consumption Growth
7594.1
1947.4
1235.8
256.1
84.7
-336.5
-1000
0
1000
2000
3000
4000
5000
6000
7000
8000
China
India
EU
USA
Korea
Japan
Total Change in Seafood Consumption (kt)
Total Seafood Consumption Growth
(2014-2022)
Total Seafood Consumption Growth (2014-2022)
13.68 %
23.18 %
10.27 %
3.07 %
2.69 %
-4.24 %
Source: OECD-FAO Agricultural Outlook

24. 23
Product
Current Tariff
Eliminated
Scallop
8%
Upon ratification
Live Lobster
8%
Upon ratification
FAS Shrimp
12%
Upon ratification
Snow crab
8%
Upon ratification
Clam
13%
Upon ratification
C&P Shrimp
20%
Eliminated over 7 years, Canada ATRQ in place of 23,000mt
Raw Lobster
20%
Eliminated over 5 years
Value Added
20%
Eliminated over 5 years
Europe is one of the world’s top consumption markets for seafood.
It is a significant market for Canadian scallops, cold water shrimp and lobster etc…
When CETA comes into force, almost 96 percent of EU tariffs for fish and seafood products will be duty-free. Seven years later, 100 percent of these tariff lines will be duty-free.
As an exporter our plan will be to leverage this agreement export more of our Canadian seafood into this market
CETA Eliminates Millions of $ in Tariffs & Duties on Canadian Seafood Exports and Make us more Competitive

25. 24
China, 16%
Japan, 10%
Other Asia
5%
Europe, 34%
United States 15%
Canada 14%
Source: Clearwater Seafoods Inc. Annual Report, 2013 Net Sales
The EU is Already Clearwater’s Largest Market But…

26. 25
Key Value Drivers
Value Chain Research
Differentiation
Pricing (leveraging vs. conceding)
Solutions vs. Products
Branding, Innovation, Quality Improvements
Exporters Must Do Their Homework to Capture Value

27. 26
Widest selection of MSC-certified species of any seafood harvester worldwide
Value Driver : Sustainability

28. 27
Value Driver: Food Safety & 100% Traceability
Eliminating our Food Safety Risk
1.“Trust, but Verify” philosophy
Meets or Exceeds Standards
2.GFSI-BRC Accreditation
3.Enterprise wide buy-in and support
4.Education and training
5.Environmental swabbing
6.Product Micro
7.Positive release protocol

29. 28
Value Driver: Consumer Insights & Category Management
Impulse Purchasers 24%
Bargain Hunters 20%
Cautious Loyalists 44%
Seafood- Connoisseurs 12%
4 MAJOR SEAFOOD CONSUMER SEGMENTS

30. 29
Value Driver: Customer Co-creation

31. 30
Value Driver: New Products, Packaging & Brand Investment

32. 31
Does Any of this “Stuff”
Ever Really Work ?

33. 32
Clearwater Seafoods - Today (TSX: CLR)

34. 33
Thank you