Barramundi Group

Earnings Release • Nov 29, 2022

Business update First nine months 2022

BARRAMUNDI GROUP LTD 29 NOV 2022

Building an Asia Pacific aquaculture leader

Barramundi Group builds a fully integrated aquaculture leader with a premium product in a high growth market

Highlights

• Harvest volumes were up from 1,488 to 1,503 tonnes (WFE).
• Total income in the period was SGD 25.7 million (25.2).
• Net profit for was –SGD 18.6m (13.6)*
• and planning has commenced, to provide ability to self-supply fry and fingerlings.
• In Singapore, the new vaccine trial for SDDV (Scale Drop Disease Virus) commenced with vaccination of over 35,000 juveniles at the nursery. Preliminary results show similar high survival rates, as in the clinical trials.
• In Australia, the process of passing on price increases from raw materials and feed is progressing well.

* Due to a change in accounting estimates, the numbers are not comparable, see the attached financial update document for details.

Profit and Loss after first nine months of 2022 (Unaudited) Actual Proforma Actual

				(Unaudited)
Profit and Loss after first nine months of 2022
	Actual	Proforma	Actual
	YTD Sep 2022 Unaudited	YTD Sep 2022 Unaudited	YTD Sep 2021 Unaudited
(in SGD)	\$	\$	\$
Revenue	25,731,004	25,731,004	25,196,788
Other income Raw materials and consumables	515,869 (20,175,372)	515,869 (20,541,523)	823,375 (17,184,442)
Farm personnel expenses Fair value loss on biological assets	(2,990,622) (8,938,449)	(6,325,149) (5,768,459)	(6,997,474) (2,007,686)
Fish mortalities	(3,002,840)	(1,800,975)	(1,701,797)
Depreciation expenses Amortisation expenses	(1,513,389) (423,226)	(2,893,637) (423,226)	(2,865,084) (423,225)
Administrative expenses Distribution expenses	(6,091,463) (1,503,563)	(6,091,463) (1,503,563)	(4,945,150) (1,752,018)
Finance expenses	(764,473)	(764,473)	(1,481,991)
Loss before tax	(19,156,524)	(19,865,595)	(13,338,704)
Income tax (expenses)/credit	(24,387)	(24,387)	15,522
Net loss for the financial period	(19,180,911)	(19,889,982)	(13,323,182)
Other comprehensive income/(loss):
Items that may be reclassified subsequently to profit or loss:
Currency translation gain/(loss) on translating foreign operations	621,545	621,545	(229,980)
Total comprehensive loss for
the financial period	(18,559,366)	(19,268,437)	(13,553,162)
(Loss)/profit attributable to:
Owners of the Company Non-controlling interests	(19,086,949) (93,962)	(19,796,020) (93,962)	(13,725,429) 402,247
	(19,180,911)	(19,889,982)	(13,323,182)
Total comprehensive (loss)/income
attributable to: Owners of the Company	(18,465,404)	(19,174,475)	(13,955,409)
Non-controlling interests	(93,962) (18,559,366)	(93,962) (19,268,437)	402,247 (13,553,162)

Balance Sheet per 30 September 2022 (Unaudited)

Unaudited (in SGD) \$ ASSETS Current assets Cash and cash equivalents 14,488,820 Trade and other receivables 6,862,475 Inventories 7,222,158 Biological assets 14,030,592 42,604,045 Non-current assets Property, plant and equipment 29,443,878 Intangible assets 10,752,157 Biological assets 1,544,488 Deferred income tax assets 2,042,682 43,783,205 Total assets 86,387,250 LIABILITIES Current liabilities Trade and other payables 9,139,845 Employee benefits 454,011 Borrowings 15,542,877 Deferred capital grants 127,924	Audited \$ 28,482,011 7,200,974 3,511,581 19,384,330 58,578,896 25,932,732 11,175,383 1,083,883 2,090,984 40,282,982 98,861,878 9,362,551 430,454
	6,630,421
	127,924
Income tax payables 39,908	-
25,304,565	16,551,350
Non-current liabilities
Borrowings 17,819,111	22,447,596
Deferred capital grants 6,516,603	4,857,039
Provision for reinstatement 55,980	55,980
Deferred income tax liabilities 3,360,187	3,424,010
27,751,881 Total liabilities	30,784,625
53,056,446	47,335,975
Net assets 33,330,804	51,525,903
EQUITY
Share capital 153,913,373 153,913,373
Other reserves (1,922,771) (2,799,486)
Accumulated losses (124,214,210) (105,236,358)
Non-controlling interests 5,554,412	5,648,374
Total equity 33,330,804	51,525,903

Cash Flow in the first nine months of 2022 (Unaudited)

	YTD	YTD
	30 Sep 2022	30 Sep 2021
(in SGD)	Unaudited \$	Unaudited \$
Cash flows from operating activities
Loss before tax	(19,156,524)	(13,338,703)
Adjustments for:
Fair value adjustment on biological assets	8,938,449	2,571,010
Amortisation of government grant	(140,796)	(223,760)
Depreciation of property, plant and equipment and right-of-use assets	1,432,556	2,784,251
Depreciation of biological assets	80,833	80,833
Property, plant and equipment written-off	20,624	-
Amortisation of intangible assets Employee share option expenses	423,226 364,267	423,225 277,839
Interest expense	776,759	1,501,025
Interest income	(12,286)	(19,034)
Provision for employee benefits	34,270	(26,163)
	(7,238,622)	(5,969,477)
Changes in working capital: Biological assets	(3,038,357)	(1,492,237)
Inventories	(3,719,498)	(930,803)
Trade and other receivables	295,197	5,710
Trade and other payables	41,784	1,309,857
Cash used in operations, representing net cash used in operating activities	(13,659,496)	(7,076,950)
Cash flows from investing activities
Additions to property, plant and equipment	(5,770,739)	(5,459,214)
Interest received	12,286	19,034
Net cash used in investing activities	(5,758,453)	(5,440,180)
Cash flows from financing activities
Proceeds from issuance of/(Payments from cancellation of) ordinary shares	-	17,107,800
Share issue expenses	-	(1,703,385)
Repayment of third-party loans Proceeds from borrowings	- 4,208,512	(3,240,000) 11,308,659
Repayment of lease liabilities	(576,976)	(835,854)
Interest paid	(776,759)	(1,501,025)
Capital contribution from non-controlling interests	-	1,020,000
Redemption of redeemable convertible preference shares	-	(2,363,725)
Grant received	1,800,360	-
Net cash provided by financing activities	4,655,137	19,792,470
Net (decrease)/increase in cash and cash equivalents	(14,762,812)	7,275,340
Cash and cash equivalents
Beginning of the financial year Effects of currency translation on cash and cash equivalents	28,482,011 769,621	29,327,259 100,023
	14,488,820	36,702,622
End of period

Key Financials & Highlights - Australia

• Net sales for Australia were reduced by SGD 1.5 million following reduced harvest tonnage of 121 tonnes.
• Successful negotiations with key customers to recognize increases in raw material and operating costs enabled a significant increase in the ASP (Average Selling Price), going forward.
• The average net selling price for Australia was SDG 10.76 in the first nine months of 2022, compared to SGD 9.71 in the same period of 2021.
• Streamlining of harvest operations and innovation in processing procedures are resulting in improvements in product quality.

Harvest volume (T)	1,096	1,217
Biomass end of quarter (T)	1,513	1,612

Key Financials & Highlights - Singapore Senang sites. • Installation of the mooring system in the new St John's lease was completed with the

• Net sales for the first nine months 2022 increased slightly on the back of higher harvest volumes as part of the inventory drawdown after fallowing the Semakau and
• use of our newly commissioned multi-purpose vessel, Barra Endeavour. Assembly, construction and welding of the new 7x7 nursery and 80m grow out cages have commenced with completion on target for end of year.
• A trial of a vaccine for SDDV (Scale Drop Disease Virus) commenced with vaccination of over 35,000 juveniles, which were transferred to our new St. John's site in October.

Net sales for the first nine months 2022 increased slightly on the back of higher harvest volumes as part of the inventory drawdown after fallowing the Semakau and
use of our newly commissioned multi-purpose vessel, Barra Endeavour. Assembly, construction and welding of the new 7x7 nursery and 80m grow out cages have commenced with completion on target for end of year. A trial of a vaccine for SDDV (Scale Drop Disease Virus) commenced with vaccination of over 35,000 juveniles, which were transferred to our new St. John's site in October.
Net selling price (SGD)	\$13.05	\$13.34
Harvest volume (T)	345	271
Biomass end of quarter (T)	86	507

Operating Highlights – Brunei • Export of approximately 5 tonnes of fresh portions to Singapore via airfreight under the Kuhlbarra brand earlier this year, after a trial harvest. • The UVAXX laboratory has been completed and commissioned. Together with • Preliminary broodstock and hatchery facility development and planning has

• animal health technicians and vets, this allows for quick local diagnostics and PCR of bacterial and viral pathogens.
• nursery has commenced.
• commenced, to provide ability to self-supply fry and fingerlings.

Key Financials & Highlights- Fassler

• Fassler's revenue increased by 20 per cent to SGD 10.5 million in the first nine months of 2022 following a more aggressive digital marketing strategy, joint promotions with an online shopping platform and an increase in selling price for customers. The cost of raw materials has increased significantly, impacting our EBITDA-margin, but is gradually been fed through to end customers from the second quarter of 2022

Outlook

• We expect continued strong demand.
• Increased prices for raw materials and feed are gradually being passed on to end consumers.
• Exploring strategic options for Australian business as well as funding. Process updates will be given no later than in the report for the second half of 2022, scheduled for 28 February 2023.

Financial Calendar

2H 2022 Results	28 February 202
2022 Full year results	28 April 2023

Alternative performance measures

Barramundi Group Ltd discloses alternative performance measures as a supplement to the financial statements prepared in accordance with IFRS. Such performance measures are commonly used by analysts, investors and other stakeholders to evaluate the performance of the company and its businesses. The measures are provided to give an enhanced insight into the operations of the company and its businesses.

Operating EBITDA and/or Operational EBITDA is net profit/(loss) before amortization and depreciation expenses, finance costs, provision for income taxes, excluding new sites, one-off non-operational costs and fair value adjustments on biological assets.

Operating EBIT and/or Operational EBIT is net profit/(loss) before finance costs, provision for income taxes, excluding new sites, one-off non-operational costs and fair value adjustments on biological assets.

Operating EBT and/or Operational EBT is net profit/(loss) before provision for income taxes, excluding new sites, one-off non-operational costs and fair value adjustments on biological assets.

Operating net profit/(loss) and/or Operational net profit/(loss) is net profit/(loss) excluding new sites, one-off non-operational costs and fair value adjustments on biological assets.