Clean Seas Seafood Limited

Investor Presentation • Jan 15, 2024

EXTRAORDINARY GENERAL MEETING

ASX:CSS & OSE:CSS

15th January 2024

O V E R V I E W

• Operational Review on track to deliver "right-sized" business, with sales and production at circa 3,000 tonnes per annum
• Maintained pricing resilience at A\$22.53/kg for H1 FY24 versus A\$22.44/kg for H1 FY23 and A\$23.02/kg for H2 FY23 in a highly competitive trading environment
• Completed Tranche 1 placement of A\$6.7 million and renewed A\$32.2 million bank facility to support working capital and the operational review
• Biomass reduction complete, expected to save A\$11 million in feed costs over the next 14 months versus growing these fish to harvest size
• Targeted reduction in fixed and variable operating costs of up to A\$5.0 million per annum underway and on track
• Ongoing elevated feed prices however some respite is expected in H2 FY24 with Fish Meal prices easing in Q2 FY24

O P E R A T I O N A L R E V I E W P R O G R E S S

• Biomass reduction has been completed through an accelerated harvest and sale of ~550t into the fish protein market, saving ~A\$2.0 million in feed costs in November, December and January 2024, and ~A\$11 million over the next 14 months versus what it would cost to grow these fish out to harvest size
• Managing feed and growth levels, and achieving the biomass reduction quicker than expected meant the reduction required was less than the ~800 tonnes expected
• The new biomass level supports sales volumes of ~3,000 tonnes in the most efficient manner and allows for the consolidation of farming activities
• On track to achieve a reduction in fixed and variable operating costs of up to A\$5.0 million per annum
• The consolidation of farming activities and a reduction in the business' operational footprint is expected to reduce the requirement for future capital spend by approximately A\$8.0 million per annum
• With the lower biomass reduction of ~550t versus ~800t, we expect the previously advised non-cash SGARA impairment of between A\$13.5 and A\$14.5 million in FY24 to be reduced proportionately, which will be confirmed in our Half Year Financial Statements released in February 2024

T R A D I N G U P D A T E

• Challenging market conditions have persisted throughout H1 FY24, resulting in flat sales volumes year-on-year
• Excluding the accelerated harvest as part of the biomass reduction, sales volumes for H1 FY24 were 1,513 tonnes, versus 1,526 tonnes in H1 FY23
• Prices for H1 FY24 remained strong, with revenue of A\$22.53/kg ahead of H1 FY23 of A\$22.44/kg. Pricing decreased in comparison to H2 FY23 of A\$23.02/kg
• Fresh prices have held up particularly well at A\$22.88/kg in H1 FY24 versus A\$22.63/kg in H1 FY23 and A\$22.98/kg in H2 FY23
• Frozen prices declined to A\$20.23/kg in H1 FY24 versus A\$21.23/kg in H1 FY23 and A\$23.26/kg in H2 FY23 due to competitive pressures, broadly lower protein prices and high levels of inventory globally

O U T L O O K

• Leveraging premium market position, investment in infrastructure and automation, and reviewing operational footprint to help offset competitive market forces and input cost pressures
• Significant reduction in funding required for infrastructure and working capital as a result of the Operational Review
• Reduced operational and financial risk, faster pathway to profitability and free cash flows
• Right-sized business that leverages the premium positioning and quality, culinary flexibility and unique provenance of Clean Seas' ocean farmed Yellowtail Kingfish to maintain premium pricing
• Automated feed barge on track to be delivered and implemented in mid-2024 to provide capability and help offset cost pressures, and will allow for ~90% of Clean Seas' biomass to be fed remotely
• Explore the development of alternate diets to drive fish performance and options to offset exposure to volatility in feed prices
• Focus on driving efficiencies and improvement across the business

DISCLAIMER:

Certain statements contained in this presentation, including information as to the future financial or operating performance of Clean Seas Seafood Limited ("CSS"), are forward looking statements.

Such forward looking statements may include, among other things, statements regarding targets, estimates and assumptions in respect of CSS' operations, production and prices, operating costs and results, capital expenditures, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions; are necessarily based upon a number of estimates and assumptions that, while considered reasonable by CSS, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; and involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward looking statements.

CSS disclaims any intent or obligation to update publicly any forward looking statements, whether as a result of new information, future events or results or otherwise. The words "believe", "expect", "anticipate", "indicate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule" and similar expressions identify forward looking statements.

All forward looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward looking statements due to the inherent uncertainty therein.

All volumes are in Whole Weight Equivalents (WWE).

Authorised for release by the Board of Clean Seas Seafood Limited.