Clean Seas Seafood Limited

Earnings Release • Oct 29, 2021

Clean Seas Seafood Limited (ASX:CSS & OSE:CSS)

Annual General Meeting CEO Presentation

29th October 2021

Overview

• New Leadership & Focus - refreshed Board & Management, new partnerships and distribution channels, cost and volume focus
• Strong Sales Growth – Record sales volumes in FY21 and YTD FY22
• Diversification - new channels & markets are complementing the premium restaurant businesses as it recovers, and will deliver lower costs of production as volumes increase
• Inventory Sell Down / Biomass Back into Balance - leveraging the sale of excess inventory has supported working capital requirements and driven channel diversification and volume growth
• Cost Focus - will further support lower costs of production and profit recovery
• Strong Balance Sheet - A\$50M of available funding
• Uniquely Positioned - to be the quality & cost leader in sustainable & environmentally friendly Kingfish production

Sustainability and Premium Quality is at our Core

Substantial progress against Strategic Priorities

	FY21	FY22	FY23
Operations	e Stabilise the business following et pl FY20 COVID shock, restructure m and reduce indirect expenses o C	k Grow and diversify kingfish c a n tr production. Activate new farming sites. O	k Operating EBITDA and c a n tr cashflow positive O
Sales	Diversify channels and e et markets, maximise existing pl m premium business as o lockdowns ease C	Develop new channels and k c a markets, premium business n tr O	k Launch volume retail channels c a with a price competitive lower n tr cost fish O
Inventory	e et Rectify Live Fish Biomass and pl Frozen inventory imbalance m o C	e Bring Biomass and Frozen et pl inventory into balance to m support future sales o C	k Accelerate stocking and c a n tr growth targets O
Cost Of Production	e Accept higher cost of et production while excess pl m inventory is sold through o C	Achieve significantly lower k c a cost of production as a result n tr of clearing excess inventory O	Achieve \$9/kg cost of k c a production in line with FY18 n tr levels O
Funding	e Secure debt and equity et pl funding for growth ambitions m o C	e Simplify capital structure and et pl redeem Convertible Notes m o C

Strong sales momentum, revenue and volume growth

• Growing awareness and acceptance of Yellowtail Kingfish globally
• Product performing well in all diversified channels and markets
• Record sales revenues and volumes in FY21 and YTD FY22
• Quality and provenance resonating with customers
• Well positioned as food service markets reopen

Rolling 12 Month Sales

Historical inventory imbalance has been addressed and on-track for significant improvement in cost of production

• Carrying cost of excess live fish biomass and frozen inventory has significantly impacted profitability for a number of years
• Excess inventory has been used diversify into new markets and channels, and to generate cash
• Target of 11 months cover achieved
• On track to achieve improvement in production costs in FY22 and return to historical levels of circa \$9.00/kg in FY23

Cash collections for Q1 FY22 reach record level of A\$14.8 million, which translated into positive operating cashflow of A\$2.1 million

Q1 Operating Cashflow

• Q1 FY22 cash receipts of A\$14.8 million, up 67% on Q1 FY21 and 23% on Q1 FY20.
• Record sales volumes translated into positive Operating cash flows of A\$2.1 million
• First positive operating cash flows quarter since Q1 FY18, which reflects record sales volumes, reopening of food service channels globally and disciplined inventory management.
• Convertible note redemption complete and final interest payment made
• Cash and undrawn facilities of A\$42.6 million to support growth and investment in capacity and automation.

Huge potential for Yellowtail Kingfish globally

• The market for Yellowtail Kingfish has expanded significantly as awareness of the species has grown
• Clean Seas has built a substantial per capita consumption in Australia in premium restaurants
• Continued increases in per capita consumption will see total global sales grow strongly in future years
• Clean Seas has established distribution in Australia and Europe, and significant partnerships to expand into North America and Asia

Outlook for Clean Seas and Spencer Gulf Kingfish

Unique market opportunity driven by megatrends

High growth potential can be realized at low costs and result in more competitive cost/kg

Proven setup with all key success factors in place

• Exposure to megatrends: consumer health, sustainable protein, rising incomes and environmental awareness
• 70% of demand for Atlantic Salmon is from retail, while Kingfish is almost entirely foodservice
• Increasing popularity for Kingfish as a premium source of seafood with limited sources of supply
• Strong sales growth signals successful diversification strategy
• Clean Seas is several times larger than its closest competitor and is well placed to access the growth potential in Kingfish in the near-term
• Tangible growth trajectory with low license costs and ability to leverage fixed assets
• Volume growth facilitated can enable unit production costs to fall
• Industry leading production experience from 13+ generations of breeding
• Control over the entire production value chain, delivering a Michelin-starred quality product
• Distribution and partnerships with proven reach and scale
• Cold-water production of a native species in its natural environment, ensuring optimal and unparalleled product quality
• Exclusive access to freezing and defrosting technology, optimizing seasonality in harvesting schedules and global deliveries with a low carbon footprint

Contacts

R o b G r a t t o n | C E O r o b . g r a t t o n @ c l e a n s e a s . c o m . a u + 6 1 4 3 4 1 4 8 9 7 9

D a v i d B r o w n | C F O D a v i d . b r o w n @ c l e a n s e a s . c o m . a u + 6 1 4 1 2 2 3 5 6 2 4

A n d r e w A n g u s | I n v e s t o r R e l a t i o n s a n d r e w a n g u s @ o v e r l a n d a d v i s e r s . c o m . a u + 6 1 4 0 2 8 2 3 7 5 7

D I S C L A I M E R :

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).