Icelandic Salmon AS

Earnings Release • Aug 26, 2021

Improved performance and on track for further growth

Improved performance and on track for further growth

Icelandic Salmon: Highlights for the first six months of 2021

Bildudalur, 26 August 2021

In the first six months of 2021, Icelandic Salmon AS (Euronext Growth Oslo: ISLAX) and its subsidiaries, collectively referred to as “Icelandic Salmon” or the “Group”, had operating revenues of EUR 35.42 million (corresponding period 2020: EUR 35.38 million) and an operational EBIT of EUR 3.77 million.

Total own harvest in the period was 4,847 (5,954) tonnes, resulting in an EBIT/kg of EUR 0.71. For the whole year 2021, Icelandic Salmon expects to harvest 14,000 tonnes of salmon.

“Continued attention to biological performance, cost efficiency and increased market prices have contributed to the significantly improved results in the first half of 2021.

Strengthened team

During the first six months of the year, the organisation was strengthened through the appointment of five new members, all Icelanders, to the executive management team.

“The five bring a wealth of experience from the seafood industry and will play key roles in the further operational and strategic development of Icelandic Salmon,” said Björn Hembre.

Marketing and positioning

“We have also taken important steps in terms of marketing and positioning. In August 2021, we launched the brand ‘Arnarlax – Sustainability, it’s in our nature’. The new brand will be instrumental in our efforts to differentiate our products and break into new markets with potentially higher margins,” said Hembre.

With Icelandic super chill technology, Icelandic Salmon has continued to expand a new export route by boat to the US, lowering the carbon footprint and cost compared with conventional airfreight. The Group also signed a contract with a local partner for production of pre-rigor filet, which is a new product for Icelandic Salmon.

Preparing for growth

In anticipation of increased demand for first class sustainable salmon from Iceland, Icelandic Salmon continues its structured and disciplined growth path.

Two arctic char facilities were acquired in the period and conversion to smolt production is underway. This will increase the Group’s total smolt capacity with approximately 800,000 smolt in 2022 and 1,500,000 smolt in 2023. A new barge and a service boat were delivered, further extending the Group’s production capabilities.

In June 2021, a new three-year loan agreement with DNB and Arion bank was entered into for refinancing of the Group’s liabilities, creating better financial flexibility.

The complete report and presentation for the first six months of 2021 is attached.

CEO Björn and CFO Jónas Heiðar Birgisson will begin presenting the company's results at 11am via a webcast on arnarlax.webcast.is

For further information, please contact:

CEO Björn Hembre

Tel: +47 913 47 432

Email: bjorn@arnarlax.is

CFO Jónas Heiðar Birgisson

Tel: +354 414 0609

Email: jonas@arnarlax.is

About Icelandic Salmon

Icelandic Salmon is listed at the Euronext Growth. The company is a 100% owner of Arnarlax ehf, the leading farming company in Iceland with head office in Bildudalur. The company is fully integrated with control over all parts of the value chain.

See https://www.arnarlax.is/en for more information about the company.

This information is subject to the disclosure requirements stipulated in section 5-12 of the Norwegian Securities Trading Act.