Statt Torsk ASA

Earnings Release • Feb 11, 2022

Statt Torsk

Financial Report – Forth Quarter 2021 Oslo, 11. February 2022

Gustave Brun-Lie

CEO

Dear Friends of Statt Torsk, time to report!

At the time you read this we have completed the harvesting and sales of our 3. pilot. This is indeed a pilot with a limited production of about 420 tons, ended 1. February 2022. The deviation in previously informed volume is partly du to under-delivery of fingerlings and partly an abnormally prolonged starvation before processing. We think the gaining of such an experience is of essence.

We can confirm that the quality of our product is excellent, and beautifully fresh! And we can confirm our ability to offer predictable deliveries to the market. Again.

We did however meet challenges during Q4 as well. After having established with whom we should partner for the harvesting, including permits from all relevant authorities and preparation of all schedules and sales, this partner suddenly changed their mind only 3 weeks ahead of first shipment to our customer.

This led to set up of a new harvesting line for cod at and with Per Stave AS at Stad, with strong support of local industry and authorities. The new line was build in record time, up and running late November and has since then been going and going. Result: we have consolidated our value chain further.

The result of this challenge has however a "back flip": Cost. To achieve this we had to invest, both in hardware but also in financial support of the running of the harvesting plant. Harvesting cost has therefore been substantially higher than projected.

We have also learned a lot in respect of sales and marketing:

• About 70 percent of our production went to one of Spain's largest food retailer; at gross prices at the level of NOK 60+ per kg. We invoice our sales net of expenses such as freight and commissions.
• The remaining production went to a market influenced by the actual market conditions of sales of wild cod.
• A substantial effort needs to be made to develop the market for farmed cod. We are taking proper action on this.

The 3. pilot now having been completed we are now entering a new phase: Production at industrial scale. As from September this year we will deliver more than 3,000 tons of fresh and high-quality products, Aiming at everyday deliveries in accordance with a defined and predictable schedule throughout January 2023. We will then have some pause and from May 2023 we shall be able to deliver whole year around, market conditions permitting of course.

We have challenges ahead of us: to achieve our goals will not be "a walk in the park", but we are ready: with all the experience we have gathered during our 3 small scale pilots, we are now ready to face all new challenges.

Q4 2021 Operational update Rekvika

Fingerlings

In Q4 approx. 320,000 fingerlings was received and set under production. 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 3,000 tons WFE to be harvested in September 2022 – January+ 2023, and 1,000 tons WFE following months in 2023.

Total biomass in Rekvika per 31.12.21 was 841 tons.

Growth rate

So far, for all three batches, the growth rate is as expected. Rekvika seems to be a good location for codfarming. Planned weight WFE is 3,3 – 4,0 depending on harvest period.

Feed Conversion Rate

• Biological feed conversion rate (bFCR) in Q4: 0,98 / as per 31.12.2021: 0,95. Expected end of production: 1,1
• Economical feed conversion rate (eFCR) in Q4: 1,04 / as per 31.12.2021: 1,00. As expected. Expected eFCR end of production: 1,20-1,25.

Mortality

• Mortality rate in Q4 is 2,50% / per 31.12.2021 4,3%. Expected mortality rate end of this production is 10%.
• "This is our first commercial production, and first at Rekvika. Biological performance is good, all rates is in line with our cost targets" Leif-Ronny Rætta, COO

Q4 2021 Other

Site applications

• There are no news in this matters during Q4. We have currently applied for 1 additional location and recently 1 extension.
• It takes longer than expected to be granted new locations.

Sustainability

• We have a strong focus on sustainability and will monitor and report on important KPI´s such as feed conversation ratio, mortality rate, fish stock density, medication and other measurable impact on environment, partly in this report and with increased scope from Q1 2022.

Other

• From AS to ASA Public Limited Liability Companies Act
• New board elected
• New auditor elected EY
• The Annual Report for 2021 will be prepared in accordance with IFRS.

Q4 2021 The product from pilot 3 – Statt cod

Nutrient content of the Statt cod

• Analyzes of nutrient content carried out in January 2022 show that our fish have a better content than expected, especially on proteins.
• We expect similar analyzes for future productions that take place in Vanylvsfjorden.

Statt cod – a super fish!

• We have a super fresh product
• An excellent taste
• Fresh at the market, 2-4 days ahead of wild cod.
• Correspondingly longer shelf life
• No parasites, no worms/anisakiasis
• Always high quality and scheduled delivery
• Low environmental footprint
• Biological feed consumption is approaching 1,1
• Fantastic nutritional and protein content

Fish	Protein, g	kJ	Kcal	Fat, g	Carbohydrates	Fiber	Omega3, g
Statt cod, farmed *	21,5	389	93	0,55	0	0	0,27
Wild cod **	17,9	343	81	1,1	0	0	0,26
Salmon, farmed, Raw **	19,7	938	226	16,3	0	0	2,73

Q4 2021 Financial review

Statt Torsk Group Consolidated Income Statement

(All figures in NOK 1.000)	Note	Q4 2021	Q4 2020	Y2021	Y2020
Revenue		7 259	4 974	8 905	5 082
Operating Income		7 259	4 974	8 905	5 082
Cost of goods sold	3	14 712	7 491	18 077	7 491
Wages		3 224	1 045	7 929	1 211
Depreciation	2	574	706	1 880	988
Other operating expenses		4 823	614	9 830	816
Operating profit/loss		-16 074	-4 882	-28 811	-5 424
Net financial items		53	-475	53	-526
Profit/loss before tax		-16 021	-5 357	-28 758	-5 950

Statt Torsk Group Consolidated Statement of Financial Position

(All figures in NOK 1.000)	Note	Y2021	Y2020
Assets
Non-current assets
Plant and equipment	2	27 111	7 336
Investment in associates		1 058	0
Loan to associates		3 955	0
Prepayment barges and vessels		60 835	0
Total non-current assets		92 959	7 336
Current assets
Inventories	3	46 624	8 007
Receivables	4	28 868	13 722
Cash and cash equivalents		33 601	33 030
Total current assets		109 093	54 759
Total assets		202 052	62 095

Statt Torsk Group Consolidated Statement of Financial Position

(All figures in NOK 1.000)	Note	Y2021	Y2020
Equity and Liabilities
Equity
Share capital		16 611	9 880
Share capital/additional not registered		0
Additional paid-in capital		152 629	51 183
Retained earnings		-28 758	0
Total equity	5	140 482	61 063
Liabilities
Non-current liabilites
Liabilities to financial institutions		43 160	0
Total other non-current liabilities		43 160	0
Current liabilites
Accounts payable		15 894	736
Other current liabilities		2 516	296
Total current liabilites		18 410	1 032
Total equity and liabilities		202 052	62 095

Statt Torsk Group Consolidated Statement of Cashflow

(All figures in NOK 1.000)	Q4 2021	Q4 2020	Y2021	Y2020
Cashflow from operating activities
Net profit before tax	-16 021	-3 616	-28 757	-5 950
Depreciation	574	235	1 879	988
Change in inventory and biological assets	-14 111	8 221	-43 867	-3 107
Change in receivables	-2 417	-12 735	-9 686	-12 914
Change in accounts payable	12 902	-2 047	15 158	689
Change in other items	2 770	-320	2 849	135
= Net cashflow from operating activities	-16 303	-10 262	-62 424	-20 159
Cashflow from investing activities
Purchase of plant and equipment	-68 770	-270	-83 887	-6 883
Investments in assosiated companies	0	0	-4 938	0
= Net cashflow from investing activities	-68 770	-270	-88 825	-6 883
Cashflow from financing activities
New interest-bearing debt/downpayment	43 160	-3 038	43 160	0
Proceeds from issuing of share capital	0	39 970	108 660	55 570
= Net cashflow from financing activities	43 160	36 932	151 820	55 570
Net change in cash and cash equivalents	-41 913	26 400	571	28 528
Cash and cash equivalents (opening balace)	75 514	6 630	33 030	4 502
= cash and cash equivalents (closing balace)	33 601	33 030	33 601	33 030

Statt Torsk Group Notes Q4 2021

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. Figures of 2020 are pro forma.

Reporting principles

The financial statments have been prepared in accordance with The Norwegian Accounting Act and generally accepted accounting principles in Norway. The financial information is not audited. Accounting principles used in 2021 are the same as used in the 2020 financial statements (NGAAP)

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

Biological assets includes all directly attributable farm costs. Costs such as depreciation, adminstration and other common costs are not included in the book value. This principle will be used until the market and a predictable price picture for wild farmed cod is established.

For complete accounting principles, we refer to the Annual Accounts for 2020.

Statt Torsk Group Notes Q4 2021

Note 2 Fixed assets	Farm facilities	Vessels	Other equipment	Total
Acquisition cost as of 01.10	20 245	5 060		61 25 366
Additions	1 269	759	5 907	7 935
Disposals	-1 397	0		0 -1 397
Accumulated depreciation as of 31.12	-4 192	-523		-78 -4 793
Book value as of 31.12	15 925	5 296	5 890	27 111
Note 4 Receivables			Per 01.10	Per 31.12
Accounts receivables			794	9 073
Prepayment contracts barge and vessel			15 295	0
Fry to fingerlings			3 500	5 250
VAT			4 206	6 928
Other short term receivables			2 656	7 617
Total			26 451	28 868

Note 3 Inventory and biological assets	Biological assets	Raw materials	Total
As per 01.10	31 723	790	32 513
Delivered fry, fingerlings and raw materials	10 633	11 041	21 674
Consumption of materials and services	13 568	-8 166	5 402
Cost of sold goods	-14 712		-14 712
Direct production costs added	1 747		1 747
Book value as of 31.12	42 959	3 665	46 624

Note 5 Equity	Share capital	Share premium	Other equity	Total
Equity as of 01.10	16 611	152 629	-12 737	156 503
New shares issued	0	0	0	0
Share issue costs	0	0	0	0
Profit/loss before tax	0	0	-16 021	-16 021
Equity as of 31.12	16 611	152 629	-28 758	140 482

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 10.02.2022

Name	Holding	% of total
ORINOCO AS	37 400 000,00	22,51 %
T.D. VEEN AS	16 525 000,00	9,95 %
MEDVODE AS	15 080 000,00	9,08 %
TECHBRIDGE AS	14 600 000,00	8,79 %
BORGUND BRYGGE AS	10 089 735,00	6,07 %
DNB NOR BANK ASA MEGLERKONTO INNLAND	8 135 862,00	4,90 %
BJUG A. BORGUND AS	6 000 000,00	3,61 %
BYPASS CONSULTING AS	4 646 750,00	2,80 %
ALDEN AS	4 000 000,00	2,41 %
TIGERSTADEN MARINE AS	3 000 000,00	1,81 %
BREKKE HOLDING AS	2 870 000,00	1,73 %
BORGUND FRODE PER	2 523 688,00	1,52 %
SECOM AS	2 500 000,00	1,51 %
ERVIK HAVFISKE AS	2 320 000,00	1,40 %
LINDVARD INVEST AS	2 314 258,00	1,39 %
NERSNÆS AS	2 100 571,00	1,26 %
MAMI HOLDING AS	1 820 000,00	1,10 %
FJELLSETER UTVIKLING AS	1 560 000,00	0,94 %
ERVIK CAPITAL AS	1 240 000,00	0,75 %
NORDNET LIVSFORSIKRING AS	1 165 358,00	0,70 %
TOTAL NUMBER OWNED BY TOP 20	139 891 222,00	84,21 %
TOTAL NUMBER OF SHARES	166 112 707,00	100,00 %

Definitions

Definitions and glossary

• Board Members: Members of the Company's Board of Directors
• Board of Directors: The Board of Directors of the Company
• CEO: The Group's designated chief executive officer
• CFO: The Group's designated chief financial officer
• COO: The Group's designated chief operating officer
• Company: Statt Torsk ASA
• eFCR: Economical feed conversion ratio
• FCR: Biological feed conversion ratio
• Group: The Company and its subsidiaries
• HSE: Health, Safety and Environment
• KPI: Key Performance Indicators
• Lerøy: Lerøy Seafood AS
• Management: The Company's senior management
• NGAAP: Norwegian generally accepted accounting principles for small enterprises in Norway, NRS 8
• Shares: The Company's 166,112,707 outstanding shares, each with a par value of NOK 0.10.
• VAT: Value Added Tax
• WFE: Whole Fish Equivalent

Disclaimer and important information

(General): By reading this presentation dated 11 February 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 Q4 2021 to the market and the investors. The financial results are based on NGAAP 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.

(No updates): This Presentation speaks as at the date set out on its front page. Neither the delivery of this Presentation nor any further discussions of the Company with the Recipient shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. The Company does not assume any obligation to update or revise the Presentation or disclose any changes or revisions to the information contained in the Presentation (including in relation to forward-looking statements).

(No investment advice): The contents of this Presentation shall not be construed as technical, financial, legal, business, investment, tax or other professional advice. The Recipient should consult its own professional advisers for any such matter. By attending or receiving this Presentation, you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company's business.