EX-99.2 3 dex992.htm OMEGA PROTEIN CORPORATION INVESTOR PRESENTATION Omega Protein Corporation Investor Presentation
Investor Presentation
March 3, 2011
Exhibit 99.2

Forward Looking Statements
2
The information presented herein may contain projections, predictions, estimates and other
forward-looking statements within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934.  Forward-looking statements will use
words like “may,” “may not,” “believes,” “do not believe,” “expects,” “do not expect,”
“anticipate,” “does not anticipate,” and other similar expressions.  Although the Company
believes that its expectations are based on reasonable assumptions, we can give no assurance
that these expectations will be realized. Important factors that could cause actual results to
differ materially from those included in these forward looking statements include: (1) our
ability to meet our raw material requirements through our annual menhaden harvest, which is
subject to fluctuations due to natural conditions over which we have no control, such as
varying fish population, fish oil yields, adverse weather conditions, oil spill impacts and
disease; (2) the impact of laws and regulations that may be enacted that may restrict our
operations or the sale of products; (3) the impact of worldwide supply and demand
relationships on prices for our products; (4)  our expectations regarding demand and pricing for
our products proving to be incorrect; (5) fluctuations in the Company’s quarterly operating
results due to the seasonality of our business and our deferral of inventory sales based on
worldwide prices for competing products, (6) the impact of the uncertain economic conditions,
both in the United States and globally; (7) the effect of the Deepwater Horizon oil spill on our
business, operations and fish catch, both short-term and long-term; (8) the business, operations,
potential or prospects for our new Cyvex subsidiary, the dietary supplement market or the
human health and wellness segment generally; and (9) the amount, if any, of future
reimbursements from the Deepwater Horizon defendants or the GCCF for damages caused by
the Deepwater Horizon oil spill.

Omega Protein Corporation (NYSE: OME)
3
•
Serves the human, animal and plant
nutrition markets
•
Strategically positioned to
capitalize on long-term growth
opportunities
•
Leading producer of omega-3 fish
oil, specialty fish meal, and other
nutrition ingredients
•
Blue chip customer base
•
Strong balance sheet

The Company’s Assets
•
Harvest from a
sustainable fishery
•
Over 1,000
employees
•
49 vessels and 34
spotter planes
•Four meal and oil
processing plants
•Fish oil refinery
•Technology and
Innovation Center
4

Omega Protein Business Model
5
Omega Protein Corporation
Human Nutrition
Ingredients
Animal Nutrition
Ingredients
Plant Nutrition
Ingredients
Nutraceuticals
Functional Foods
Aquaculture Feed
Pet Food
Livestock Feed
Organic
Fruits and Vegetables

Fundamentals Driving Demand
Global Demand for Meat
World Population
Standards of Living
Developing Countries* GDP per Capita (PPP)
6
* As defined by the World Bank-
2010-2011
300
250
200
150
100
50
0
+37%
+27%
+17%
1980
1990
2000
2010
Beef
Pork
Poultry
Other
Global Demand for Seafood

World Supply/Demand Imbalance
Global Fish Meal Production
Global Fish Oil Production
Source:  IFFO, 2010
Average Fish Meal Prices (FOB from Peru )
Average Fish Oil Prices (FOB from Netherlands)
7

Human Nutrition
Nutraceutical  Ingredients
Global Nutrition Industry
•
Diverse product set of
nutritional ingredients
•
Supply
the
dietary
supplement
and
functional food
markets
•
Supports good health and
well-being
Source:
“Global
Nutrition
Industry.”
Nutrition
Business
Journal.
March,
2010.
1995  1996 1997 1998 1999 2000 2001 2002 2003  2004 2005 2006 2007  2008  2009  2010 2011 2012 2013 2014
$50,000
$0
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
*2009-2014 are projections
8

Booming Supplement Market Leads to…
Source: “Global Omega-3 Industry Report.”
Frost & Sullivan.  September 2009.;  “Top 5 Supplements”. Consumer Lab.com. Survey, 2011
9
End Use Applications of EPA and DHA Oils (Metric Tons)
Global Omega-3 Dietary Supplement Sales
U.S. Omega-3 Dietary Supplement Sales
Fish Oil Usage Surpasses the Multi-Vitamin
1.
Fish Oil
2.
Multi-Vitamin
3.
Vitamin D
4.
Calcium
5.
Q-10 (cOq10)
Top 5 Supplements (Consumption Order)

•
Founded in 1984
•
Located in Irvine, California
•
Selling focus: health and well-being
•
Strong customer relationships in the
dietary supplements industry
•
Focused on high-value, higher
margin products
•
2010 sales ~ $12M
10
…Cyvex
Acquisition
Background
Transaction Rationale
•
Increase presence in human
nutrition
•
Access to the top supplement
retailers
•
Provides established distribution
network for omega-3
•
Existing line of non-marine
products
•
Combination fits with shifting
customer demand
•
B2B ingredient supplier

11
Animal Nutrition
2010 End Usage of OME Fish Meal
2010 End Usage of OME Fish Oil
Market Segments
•
Aquaculture
•
Companion Animals
•
Swine
•
Dairy
•
Beef
•
Poultry/Layers
Feed Ingredients
•
Fish meal
•
Fish oil
High-quality protein source with superior
amino acid profile and omega-3s
Contains 35% omega-3 fatty acids with a
balanced concentration of EPA and DHA,
plus additional DPA

Our Customer Base is Growing
Global  Swine Production by Volume
Global Aquaculture Production by Volume
Global Pet food Market by Retail Sales
12
OME Revenue per Ton (U.S. Dollar)

13
Plant Nutrition
Nutritive Products
•
OmegaGrow
®
Organic fertilizer produces healthier, faster  
growing plants
•
OmegaGrow
®
Plus
Provides the same benefits as OmegaGrow ®
but with 25% oil to enhance plant health and
fortification
•
Seacide
®
Currently in process of bio-pesticide registration   
(market ~$594 million)
Sales Growth
Source:  Omega Protein

Blue Chip Customers
14

Global Distribution Network
15
Source:  Omega Protein

New Focus on Research and Development
16
Company-Driven Growth Initiatives
1.
Process Innovation
2.
Menhaden Utilization
3.
Novel Product Development
In-House Research and Development
•
OPTIC
efforts
•
Analytical Laboratory
•
Pilot Plant from Oil Refinery
•
Beverage and Emulsions Laboratory
•
Commercial Kitchen and Bakery
Laboratory
•
AOCS/GOED certified for the analysis
of marine oils
Partner and Contract with Universities
was
completed
in
2008
to
augment

17
Growth Strategy
Leverage
OME’s existing
protein and
fatty acid
platform to
expand its line
of nutritional
ingredients
Stable Growth
Research and Development
Customer Base
•Humans
•Aquaculture
•Pets
•Livestock
Nutraceutical
Ingredients
Acquisitions
Protein
Fatty Acids

Financials
18

Financial Performance
Gross Margin 2006-2010 (Million U.S. Dollar)
Revenue 2006-2010 (Million U.S. Dollar)
19
EBITDA 2006-2010 (Million U.S. Dollar)
Net Income 2006-2010
(Million U.S. Dollar)
$21
$40
$37
$8
$45
15%
26%
21%
5%
27%
0%
10%
20%
30%
$0
$20
$40
$60
2006
2007
2008
2009
2010
EBITDA
EBITDA Margin
$5
$12
$13
-$6
$18
-$10
-$5
$0
$5
$10
$15
$20
2006
2007
2008
2009
2010
Source:  Omega Protein

Financial Performance
Capital Expenditures (Million U.S. Dollar)
Cash Balance (Million U.S. Dollar)
20
Debt Balance (Million U.S. Dollar)
$8
$19
$14
$2
$20
$0
$5
$10
$15
$20
$25
2006
2007
2008
2009
2010
$20
$8
$23
$18
$16
$0
$5
$10
$15
$20
$25
2006
2007
2008
2009
2010
$75
$65
$61
$28
$35
3.6X
1.6X
1.7X
3.0X
0.8X
0.00
1.00
2.00
3.00
4.00
$0
$20
$40
$60
$80
2006
2007
2008
2009
2010
Debt
Debt/EBITDA
Source:  Omega Protein

Why OME?
•
Compelling fundamentals
•
Strong product price appreciation should
continue
•
Opportunities for organic growth and
acquisitions
•
Strong balance sheet
21

APPENDIX
22

Peru, 1346
Chile, 641
Thailand, 381
United States,
249
Japan, 192
Global Fish Meal and Oil Production by
Country
Top
5
Producers
of
Fish
Oil
(Thousand
Metric
Tons)
Top
5
Producers
of
Fish
Meal
(Thousand
Metric
Tons)
23
Source: IFFO, Yearbook of Statistics, 2010
48%
23%
13%
Peru, 258
Chile, 152
United States,
75
Denmark, 72
Japan, 64
7%
9%
41%
11%
12%
12%
24%

Omega-3 Sources
24
The Omega-3 Comparison
Plant
Algae
Marine
Sources
Soybean Oil
(Genetically
Modified)
Flaxseed Oil
Algal Oil
Fish Oil
Omega-3
Fatty Acids
Profile
Stearidonic Acid
(SDA)
Alpha-Linolenic
Acid (ALA)
Alpha-Linolenic
Acid (ALA)
Docosahexaenoic Acid
(DHA) only
Eicosapentaenoic Acid (EPA)
Docosahexaenoic Acid (DHA)
Docosapentaenoic Acid (DPA)
Omega-3:6 Ratio
0.73
3.56
2.35
8.30
Biologically
Active Omega-3
None; Body
must convert
to EPA and
DHA
None; Body
must convert
to EPA and
DHA
One; DHA is biologically
active
Two; EPA and DHA are
biologically active compounds,
plus additional DPA
Natural ?
No; Genetically
modified
(GMO)
Yes
Yes
Yes

0
2
4
6
8
10
12
14
16
$0
$200
$400
$600
$800
$1,000
$1,200
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Omega-3 Supplement Sales
World Fish Oil Production (100,000 Metric Tons)
Linear (World Fish Oil Production (100,000 Metric Tons))
U.S. Omega-3 Dietary Supplement Sales
25
Source: IFFO, Yearbook of Statistics, 2010 and “Global Omega-3 Industry Report.” Frost & Sullivan.  

Source:  Omega Protein
Market Comparison
26
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95
96
97
98
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01
02
03
04
05
06
07
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