Statt Torsk ASA

Investor Presentation • Aug 19, 2022

Statt Torsk

Financial Report – Q2 2022 Oslo, 19. August 2022

CEO Message

Gustave Brun-Lie

CEO

Dear Friends of Statt Torsk

Another quarter and summer has passed in the development of our company. Important milestones have indeed been achieved after long and meticulous work by our team.

• Stokkeneset was set in first commercial operation in April, supporting our year-around deliveries till midsummer 2024.
• We have entered into a long-term harvesting agreement with Western Sea Products, owned by the Mosøval Group, at Vartdal, just 3 hours transportation from our production plants.
• We have obtained the Global Gap certification. By this we show our commitment to quality of the fish and responsibility for the environment. We know that these values are important for our customers, partners and investors.
• We completed a private placement for 41,4 MNOK.
• We have obtained an increase of allowed volume of fish at our Rekvika plant from 3 to 6 MAB's.
• We have entered into a sales agreement for about 30% of our production with a first-class South European client, with whom we already have delivered most of previous production.
• We have obtained a credit line from the largest bank in the seafood industry. We regard this as a major achievement and a recognition of the management of our resources and know how.

All this tells us that we are on the right track. The industry starts to materialize, but we have still a long way to go.

Our goal has not changed, and we need to increase our yearly production to about 12,000 tonnes. To achieve this, we have presently two applications to the authorities and several other possibilities are identified. We do not hide that this is somewhat cumbersome but are confident that we shall manage in the end.

The most important challenge now is the market. Production of farmed cod is small and needs to be developed. In close cooperation with our partners, our colleagues in the industry through Torskenettverket as well as authorities such at Sjømatrådet, large and continuous efforts are being made towards the market to make it understand the value of our products in sustainability, predictability and quality.

We do have a value chain from fry to harvest. Our aim is to consolidate this further and are comfortable that the market will value this.

In other words: so far so good; there is definitely no lack of enthusiasm; rather the contrary. With best regards

Gustave

Q2 2022 The industry is starting to materialize

Stokkeneset – First commercial production

The production site Stokkeneset has so far been our test location for small pilot batches. We are very pleased that we could start our first commercial operation in end of April 2022. The site has been renewed, and the first delivery of fish arrived at the end of April. Stokkeneset will be in full production by the end of October 2022 .

Long-term processing agreement

Statt entered in June 2022 into a long-term agreement for harvesting and processing up to 3,500 tons of cod per year with Western Seaproducts AS, a company fully owned by Måsøval AS. Western Seaproducts AS is located at Vartdal, north of Stad, about 3 hours by well-boat from the production in Vanylsfjorden. All production will be processed at Western Seaproducts AS, from September 2022 through 2024.

Global Gap

Statt was in June 2022 approved the Global G.A.P IFA Aquaculture for production of fish. The standard covers our production process from eggs to processing and all through Chain of Custody. Statts routines meet all requirements for safe food and environment, sustainability and welfare for both animals and humans throughout the production process.

Capital increase – 41 MNOK

Statt completed a private placement for 41,4 MNOK late June 2022. The new capital will fund the planned build-up of biomass, needed to ensure stable deliveries of high-quality farmed cod all year round.

Q2 2022 The industry is starting to materialize

Test harvesting in June

As a preparation for future continuous deliveries we performed a test harvest in June. Statt Torsk have not delivered cod during the summer months before, and this test harvesting was important to us. We are satisfied with the with the outcome of this test and are confident that we can deliver top quality fresh fish also during the summer months in the future. The harvesting at Vartdal is ready to operate from September 2022.

Former harvesting partner Per Stave AS

The unfortunate events surrounding the bankruptcy of our harvesting partner Per Stave AS were challenging for all parties. However, we have control over our involvement and have a good alternative for our RSW investment.

Q2 2022 Operational update Rekvika

Fingerlings

A total of approx. 1,170,000 fingerlings was put to sea in 2021, at 3 different periods.

Under production

Current production will result in 1,500 tons WFE to be harvested in 2H 2022 and 2,500 tons in 2023.

Total volume of fish at Rekvika per 30.06.22 was 2,120 tons.

Growth rate

As per 30.06.2022 the growth rate is on track accumulated. Weight of fish under production is from 1,6 to 3,5 kg, depending on batch. Planned weight WFE is 3,3 – 4,0 depending on harvest period, start primo September.

Feed Conversion Rate

• Biological feed conversion rate (bFCR) in Q2: 1,16 / as per 30.06.2022: 1,04. Expected end of production: 1,1
• Economical feed conversion rate (eFCR) in Q2: 1,23 / as per 30.06.2022: 1,08. This is as expected. Expected eFCR end of production period: 1,20-1,25.

Mortality

Mortality rate in Q2 is 2,3% / per 30.06.2022 8,9%. Expected mortality rate end of production cycle of 19-21 months is 10-12%

Q2 2022 Operational update Stokkeneset

Fingerlings

A total of approx. 105,000 fingerlings was put to sea in April.

Under production

Current production, together with another two deliveries of fingerlings in July and October, will result in 3,000-3,500 tons WFE to be harvested in 2H 2023 – 1H 2024.

Total volume of fish at Stokkeneset per 30.06.22 was 52 tons.

Growth rate

As per 30.06.2022 the growth rate is as expected first 2 months. Weight of fish under production is approx. 0,5 kg. Planned weight WFE is 3,3 – 4,0 depending on harvest period.

Feed Conversion Rate

• So far too small production to report any reliable figures.

Mortality

• Mortality rate in Q2/per 30.06.22 is 1,3%. Expected mortality rate end of production cycle of 19-21 months is 10-12%.
• "It is good to have Stokkeneset back in production after a normal break. The establishment of new equipment has gone as planned and was completed in Q2, and the first fish seems to thrive"
  • – Leif-Ronny Rætta, COO

Site applications

• Awaiting approval of the application for Apalset and for expansion of Stokkeneset.
• We have currently applied for one additional location to the above.

Sustainability

• Installing onshore renewable electricity for both sites and feedbarges in progress and is expected to be in operation during September and to have large effect on both CO2 figures and on financials.

Main events after Q2

• Rekvika +3x780 MABs, expansion from 3 to 6 MABs total.
• 35 MNOK financing Biomass overdraft facility. Important milestone and key enabler to realize growth plans.
• Agreement for 12 months sale, totaling up to 1,600 tonnes WFE of farmed Cod. Expected FCA value for Statt is approximately MNOK 75.

Consolidated Statement of Comprehensive Income

(NOK 1.000)	Note	Q2 2022	Q2 2021	1H 2022	1H 2021	Y2021
Revenue		681	1 646	8 580	1 646	8 905
Operating Income		681	1 646	8 580	1 646	8 905
Cost of goods sold		905	1 460	8 101	1 630	18 187
Wages		1 772	1 033	4 792	2 316	7 930
Depreciation	2,3	1 853	515	3 099	780	2 147
Other operating expenses		3 838	1 880	7 275	3 149	9 516
Operating profit/loss		-7 687	-3 242	-14 687	-6 229	-28 875
Net financial items		-381	-1	-911	-2	-29
Profit/loss before tax		-8 068	-3 243	-15 598	-6 231	-28 904
Other comprehensive income		0	0	0	0	0
Total comprehensive income		-8 068	-3 243	-15 598	-6 231	-28 904

Consolidated Statement of Financial Position

(NOK 1.000)	Note	Q2 2022	Q2 2021	Y2021
Assets
Non-current assets
Plant and equipment	2	50 569	19 888	87 881
Right-of-use assets	3	62 227	159	3 127
Investment in associates		35	35	1 023
Loan to associates		900	900	935
Other non-current assets		4 078	4 003	3055
Total non-current assets		117 809	24 985	96 021
Current assets
Inventories	4	82 583	19 727	46 514
Receivables		9 083	794	9 073
Prepayments		0	20 607	19 866
Cash and cash equivalents		35 315	106 644	33 601
Total current assets		126 981	147 772	109 054
Total assets		244 790	172 757	205 075

Consolidated Statement of Financial Position

( NOK 1.000)	Note	Q2 2022	Q2 2021	Y2021
Equity and Liabilities
Equity
Issued capital	5	18 676	16 611	16 611
Share premium	5	161 167	152 612	123 707
Retained earnings		-15 597	-6 231	0
Total equity		164 246	162 992	140 318
Liabilities
Non-current liabilites
Lease liabilities		42 413	100	37 649
Total other non-current liabilities		42 413	100	37 649
Current liabilites
Current lease liabilities		10 650	60	8 673
Accounts payable and other current liabilities		27 481	9 605	18 435
Total current liabilites		38 131	9 665	27 108
Total equity and liabilities		244 790	172 757	205 075

Consolidated Statement of Cashflow

(NOK 1.000)	Q2 2022	Q2 2021	1H 2022	1H 2021	Y2021
Cashflow from operating activities
Net profit before tax	-8 068	-3 243	-15 597	-6 232	-28 904
Depreciation	1 853	515	3 099	781	2 147
Change in inventory and biological assets	-21 378	-2 468	-36 069	-11 720	-38 507
Change in receivables	6 982	670	19 857	-7 679	-15 218
Change in accounts payable	13 527	-6 284	5 722	8 007	17 404
Change in other items	-94	771	-659	1 101	729
= Net cashflow from operating activities	-7 178	-10 039	-23 647	-15 742	-62 349
Cashflow from investing activities
Purchase of plant and equipment	-15 398	-9 431	-24 885	-13 837	-83 887
Investments in assosiated companies	0	-900	0	-4 938	-5 013
= Net cashflow from investing activities	-15 398	-10 331	-24 885	-18 775	-88 900
Cashflow from financing activities
New interest-bearing debt/downpayment	8 514	-13	10 721	-30	43 160
Proceeds from issuing of share capital	39 525	108 161	39 525	108 161	108 660
= Net cashflow from financing activities	48 039	108 148	50 246	108 131	151 820
Net change in cash and cash equivalents	25 463	87 778	1 714	73 614	571
Cash and cash equivalents (opening balance)	9 852	18 866	33 601	33 030	33 030
= Cash and cash equivalents (closing balance)	35 315	106 644	35 315	106 644	33 601

Q2 2022 Statt Torsk Group Notes

Note 1 General information and Reporting principles

Reporting entity

Statt Torsk ASA is registered and domiciled in Norway, head office in Stad on the west coast of Norway. The statements includes the 100% owned subsidiary Stokkeneset Reiarlag AS.

Reporting principles

The 2022 Q2 report is prepared based on IFRS. The financial information is not audited. Accounting principles applied in 2022 are consistent with those used in the Annual Report for 2021 ( IFRS) 2021 Q2 has been adjusted accordingly.

Bought and sold fry and fingerlings in the period are netted in the accounts and does not appear as revenue.

As there are no reliable indication on future sales prices our best estimate for fair value of the fish in sea is currently cost. The marked will be monitored closely, and we will adjust our estimate when predictable price picture for wild farmed cod becomes available.

For complete accounting principles, we refer to the Annual Report for 2021.

	Sites	Vessels and	Machinery and	Construction	Total 30.06.22
Note 2 Property, plant and equipment		Barges	equipment	in progress
Accumulated cost 1 January 2022	20 152	4 938	6 661	60 835	92 586
Additions	18 612		668		19 280
Transferred to leases				-54 848	-54 848
Depreciation 1H 2022	-1 190	-128	-426		-1 744
Depreciation accumulated January 1	-4 227	-362	-116		-4 705
Carrying value 30 June 2022	33 347	4 448	6 787	5 987	50 569
Economic life	12,5 years	20 years	5 years
Depreciation method	linear	linear	linear
			Vessels and barges	Machinery and	Total 30.06.22
Note 3 Leases - Right-of-use assets		Land		equipment
Acquisition cost 1 January 2022		186	0	3 208	3 394
Addition of right-of-use assets			5 605		5 605
Transfers and reclassifications			54 848		54 848
Aquisition cost 30. June 2022		186	60 453	3 208	63 847
Accumulated depreciation and impairment 1. January 2022		53	0	214	267
Depreciation 1H 2022
		26	1 007	320	1 353
Accumulated depreciation and impairment 30. June 2022		79	1 007	534	1 620
Carrying amount of right-of-use assets 30. June 2022		107	59 446	2 674	62 227
Lower remaining lease term or economic life		2,5 years	5 years	4,5 years
Depreciation method		Linear	Linear	Linear

Note 4 Inventories	30.06.2022	01.01.2022
Finished goods:
Raw material
Finished goods	850	757
Fish at sea (biological assets)
Total finished goods	850	757
Fish at sea (Biomass)	76 523	41 644
Raw materials, at cost	5 210	4 113
Finished goods	850	757
Total	82 583	46 514

Biomass	Fish at sea tons			Fair value NOK			Cost NOK			Fair value adjustment
	30.06.2022	31.03.2022	01.01.2022	30.06.2022	31.03.2022	01.01.2022	30.06.2022	31.03.2022	01.01.2022	30.06.2022	31.03.2022	01.01.2022
	2172	1 512	1 051	76 523	58 742	41 644	76 523	58 742	41 644	0	0	0

Note 5 Share capital, shareholder information and dividend

	30.06.2022	01.01.2022
Ordinary shares, nominal amount NOK	0,10	0,10
Total number of shares	186 763 187	166 112 707

Changes to share capital and premium	No. of shares		Share capital		Premium
Ordinary shares	2022	2021	2022	2021	2022	2021
Issued and fully paid 1 January	166 112 707	98 797 149	16 611	9 880	123 707	11 179
Issued new share capital	20 650 480	67 315 558	2 065	6 732	39 236	148 768
Retianed earnings						-28 904
Other/Transaction cost					-1 776	-7 336
30. June 2022	186 763 187	166 112 707	18 676	16 611	161 167	123 707

Statt Torsk ASA Board

Marianne Kveldstad (sign) Board member

Øyvind Schanke (sign) Board member

Nicolas Brun-Lie (sign) Chairman

Statt Torsk ASA Top 20 Shareholders per 18.08.2022

Shareholder	Holding	% of total
Orinoco AS	42 400 000	22,70 %
T.D. Veen AS	19 025 000	10,19 %
Medvode AS	15 680 000	8,40 %
Techbridge AS	14 600 000	7,82 %
Borgund Brygge AS	10 089 735	5,40 %
DnB NOR Bbank ASA meglerkonto innland	9 225 566	4,94 %
Bjug A. Borgund AS	6 150 000	3,29 %
Bypass Consulting AS	4 646 750	2,49 %
Lindvard Invest AS	4 308 002	2,31 %
Alden AS	4 000 000	2,14 %
GH Holding AS	3 750 000	2,01 %
Tigerstaden Marine AS	3 000 000	1,61 %
Brekke Holding AS	2 870 000	1,54 %
Frode Borgund	2 533 298	1,36 %
Secom AS	2 500 000	1,34 %
Ervik Havfiske AS	2 320 000	1,24 %
Mami Holding AS	2 170 000	1,16 %
Forte Norge	2 108 885	1,13 %
Nersnæs AS	2 100 571	1,12 %
Fjellseter Utvikling AS	1 940 000	1,04 %
Total number owned by top 20	155 417 807	83,22 %
Total number of shares	186 763 187	100,00 %

Disclaimer and important information

(General): By reading this presentation dated 19 August 2022 (the "Presentation") or attending a meeting or an oral presentation held in relation thereto, you (the "Recipient") hereby acknowledge, agree and accept that you have read, and agree to be bound by the term, conditions and limitations set out in this disclaimer. This Presentation has been produced by Statt Torsk ASA (the "Company") solely for the purpose of presenting the Company's financial results for Q2 2022 to the market and the investors. The financial results are based on IFRS and do not meet the requirements for a full quarterly report under IFRS and the results have not been audited. The Presentation does not constitute or form part of, and should not be construed as, an offer, invitation or recommendation to purchase, sell or subscribe for any securities in any jurisdiction and neither the issue of the Presentation nor anything contained herein shall form the basis of or be relied upon in connection with, or act as an inducement to enter into, any investment activity.

(No representation or warranty / disclaimer of liability): To the best knowledge of the Company, the information contained in this Presentation is in all material respects in accordance with the facts as of the date hereof and contains no material omissions likely to affect its import. Please note that none of the Company or its affiliates, directors, officers, employees, advisors or representatives of any of the aforementioned (collectively the "Representatives") make any representation or warranty (express or implied) whatsoever as to the accuracy, completeness or sufficiency of any information contained herein, and nothing contained in this Presentation (including, but not limited to, projections, estimates, targets and opinions) is or can be relied upon as a promise or representation by the Company or any of the Representatives.

(Forward-looking statements / information from third parties): This Presentation contains certain forward-looking statements relating to inter alia the business, financial performance and results of the Company and the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements in this Presentation are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. Forward-looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward looking statements. Many of these risks and uncertainties relate to factors that are beyond the Company's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of regulators and other factors such as the Company's ability to continue to obtain financing to meet its needs, changes in the political, social and regulatory framework in which the Company operates or in economic or trends or conditions. None of the Company or the Representatives provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor do any of them accept any responsibility for the future accuracy of opinions expressed in this Presentation or the actual occurrence of forecasted developments, and the Company assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to its actual results. Investments in the Company's shares involves inherent risk and prospective investors risk to lose all or parts of their investment. This Presentation contains information obtained from third parties. Such information has been accurately reproduced and, as far as the Company is aware and able to ascertain from the information published by that third party, no facts have been omitted that would render the reproduced information inaccurate or misleading.

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