Icelandic Salmon AS

Annual Report • Apr 25, 2025

CONSOLIDATED ANNUAL REPORT 2024

Icelandic Salmon AS

Consolidated Annual Report 2024

1 2 3 4

100

Sustainability and social responsibility	15
Sustainability and corporate responsibility 16 Fish22
Environment 30
People & Society 38

GRI Index and Third-Party Verification................... 43 Independent Accountant's Assurance Report.....44

Corporate governance 48
Corporate governance at Icelandic Salmon 49
Group management 54
Board of Directors 55
Board of directors' statement 202456

THIS IS ICELANDIC SALMON ICELANDIC SALMON AS

Financial Statements and results61
Icelandic Salmon AS 62
Consolidated Financial Statements 62
Notes to the Consolidated Interim Financial Statements67
Icelandic Salmon AS Financial Statements 94
Notes To Icelandic Salmon As Annual Financial Statements98
Statement by the Board of Directors and CEO 105
Independent auditor's report 106
Analytical information109

THIS IS ICELANDIC SALMON

THIS IS ICELANDIC SALMON ICELANDIC SALMON AS

Icelandic Salmon AS is listed on the Euronext Growth market in Oslo, and NASDAQ First North in Reykjavik.

The company is the sole owner and parent company of Arnarlax ehf.

Four smolt facilities, Current capacity of 7-8 million smolt, depending on size of smolt

Harvesting plant in Bíldudalur. BRCGS* certified 30,000 tonnes per year capacity

All operational activities of the group are performed in Arnarlax ehf.

Farming in seven sites in three fjords All production ASC** certified Total MAB 23,700 tonnes

Sales by internal team Domestic and global markets

Arnarlax – Sustainable Icelandic Salmon is the common brand for all operational activities and products from Icelandic Salmon

Note: *BRCGS = Brand Reputation Compliance Global Standards | **ASC = Aquaculture Stewardship Council

THIS IS ICELANDIC SALMON 1

THIS IS ICELANDIC SALMON ICELANDIC SALMON AS

This is Icelandic Salmon.................................................4

Key Figures for Icelandic Salmon5
Message from CEO 6
Our history 7
Significant Achievements In 20249
Contributing to our community 12
Arnarlax's visions, ambition and values14

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Key Figures KEY FIGURES FOR ICELANDIC SALMON for Icelandic Salmon

EUR million (MEUR)		FY 2024 FY 2023
Operating revenue (MEUR)	101.45	164.82
Operational EBIT (MEUR)	(5.89)	20.28
Resource tax (MEUR)	(3.04)	(2.20)
Fair value adjustments (MEUR)	11.37	(4.38)
Profit (loss) before tax (MEUR)	(0.95)	10.20
Net interest bearing debts (MEUR)	75.60	45.81
Equity ratio (%)	57%	64%
Harvested volume from own production (mt.)	11,676	17,919
Operational EBIT (EUR/kg.)	(0.50)	1.13
Cost of biological challenges (MEUR)	8.55	6.99
Operational EBIT excluding biological challenges (EUR/kg.)	0.23	1.52

Operating Revenues

Q4 2024 Q3 2024

76

Q4 2023

64

87

23

Q2 2024

52

13

65

89

87

^{12 11}

78

Operating EBIT

2023

2024

2024

2024

2024

Male 74% Female 26%

Gender Ratio

2023

Europe 75% North America 19% Asia 6%

MESSAGE FROM CEO

2024 was the first year since 2018 that Icelandic Salmon saw a decrease in harvested volume. The total harvested volume ended at 11,676 tonnes, down from 17,919 tonnes in 2023. This reflects biological challenges experienced in Q4 2023 and first half of 2024. The year has been thoroughly used for improving the operations to prevent similar challenges in the future.

Biological challenges

A heavy infestation of lice in Q4 2023 had a significant effect on our harvested volume in 2024. To mitigate this and have better control of the lice in the future, several measures were implemented during the year. First a better coordination of the lice situation with other farmers in our area was executed. A contract was signed for a well boat equipped with a non-medical treatment system on board. This increased delicing capacity, to secure improved control of the lice levels. In addition, we continued with preventive methods to keep lice

levels down, including lice skirts on the cages, that prevents lice larvae from entering the cages, and cleaner fish (lumpfish) that eats the lice off our salmon.

For 2025, the Group has signed a contract to implement additional preventive measures, including the Stingray laser. The laser uses advanced camera technology to detect and shoot the lice with a laser beam.

To decrease the risk in our seawater operations, the Group implemented two new vaccines used on the smolts put into sea in 2024, and going forward. One vaccine targets ISA, since it is known that this disease can occur, even if we have not experienced it in our area yet. The other protects against winter wounds, which we have experienced during the colder periods. The ISA vaccine is a pure risk mitigating measure, while the winter wound vaccine is expected to show effect of during winter 2024/25, resulting in lower mortality.

Market

Throughout 2024, we have seen a strong demand for Sustainable Icelandic salmon. The Group has delivered salmon to Europe, North America and Asia. Europe is the largest market for salmon for Icelandic salmon for two reasons: it is the market with best logistic solutions from Iceland, and it has the largest demand for fish between 3 and 6 kilos, our main product.

However, we are also working hard to utilize the competitive benefit we have by being able to ship fresh salmon by boat to North America. This gives us a benefit both on CO2 footprint and lower logistic cost compared to most other salmon producing regions. The North American market was slow in the beginning of the year but strengthened during second half. Asia, especially China, was also a strong market in the second half. Iceland has a free-trade agreement with China, which gives us a good position there.

People

In Icelandic Salmon, our commitment to self-development is key. The most important tool we have for this is our Arnarlax Academy. In 2024, all employees participated in shaping the Arnarlax Academy's strategy and further develop the content of the course further. The contribution from the company in the rural areas we are operating is significant, and to document the contribution a community footprint report is published yearly. As the main private employer in a community the responsibility is huge, and to make things work a strong cooperation with the community is important.

Political situation

2024 was a year were of political uncertainty. First, a proposed new aquaculture law was put up for vote in the Parliament (Alþingi), that did not go through. This means that the industry is still operating according to the aquaculture law from 2019. The proposed new law included several positive items that would have supported the sustainable development of the Icelandic salmon farming.

Secondly, Icelandic Salmon was granted a licence of 10,000 tonnes of sterile salmon in June 2024. Unfortunately, this licence was revoked in October 2024. The Group continues to work with the authorities to have it issued again. Greater political predictability is needed for long term growth of Icelandic salmon farming.

Outlook

Icelandic Salmon currently has licenses of 23,700 tonnes MAB, that gives us the opportunity to produce 26,000 tonnes of harvested volume. The value chain is well-prepared for this, supported by a robust corporate culture and committed staff. Most investments in smolt production and harvesting capacity have been completed, though some investments needed to fully utilize the licences in sea.

The group is in a strong position for further growth, and salmon is becoming an important part of the Icelandic economy. In 2024, salmon represented 5 per cent of all export of goods from the country. Among seafood products, only cod has a higher export value. With this in mind, we are positive for a sustainable growth for Icelandic salmon production.

Bjørn Hembre // CEO Arnarlax

OUR HISTORY

Arnarlax ehf., a subsidiary of Icelandic Salmon, was founded in 2010 in Bíldudalur, a small Icelandic village inside a long fjord called Arnarfjörður. Bíldudalur is the hometown of the company's founder, Matthías Garðarsson, who knew that the area had excellent conditions for farming salmon. The natural conditions, with good quality seawater and temperatures on par with northern Norway, provided a sound basis for engaging its sustainable aquaculture in Iceland.

Today, Arnarlax is one of Iceland's leading producer of Atlantic salmon. The company's vision is "Sustainability – it's in our nature", so to be sustainable in every aspect of its operations and lead the way in terms of cost efficiency, biology and the development of the whole value chain for salmon farming in Iceland.

Icelandic Salmon successfully completed a private placement in the autumn of 2020 followed by a listing on EURONEXT Growth. The Group also successfully completed a dual listing on NASDAQ First North Reykjavík in the fall of 2023. At the end of the year 2024, SalMar owned 52 per cent of the shares in the Group.

Icelandic Salmon has a fully integrated value chain with its own hatcheries, sea farms, harvesting plant and sales department.

The Group has its headquarters and harvesting plant in Bíldudalur in Iceland's West Fjords region, close to the sea farms located in surrounding fjords. In addition, the Group has an office facility in Reykjavík area and four smolt facilities, whereby one is located in the West Fjords, and three on the south coast of Iceland.

The Group strongly believes in sustainable aquaculture production in Iceland.

HIGHLIGHTS IN 2024

• » Harvest volume of 11,676 tonnes in 2024
• » Delivered 4.8 million smolts to sea in 2024 with an average weight of 230 gram
• » The new site, Vatneyri, within the Patreks- and Tálknafjörður license has been successfully brought into operation, leading to a strong improvement in the MAB utilization for this 12,200 MAB license
• » Received an increased license at the company's smolt facility in Gileyri, raising the capacity from 200 tonnes to 1,000 tonnes MAB
• » Farming operation impacted by biological challenges at sea and in smolt facilities, affecting operational and financial performance
• » In April 2024, the Ministry of Food, Agriculture and Fisheries sent a law proposal to the Parliament, Alþingi, regarding sustainable salmon farming, but due to domestic political situations the proposal was not approved before end of the year
• » New procedures and equipment for sea lice treatment implemented and invested in

SIGNIFICANT ACHIEVEMENTS IN 2024

Certifications

Icelandic Salmon is deeply committed to quality, which stands out as one of the Group's core ambitions. Striving to uphold the highest standards, the operating company, Arnarlax, has earned numerous certifications that underscore its dedication to the principle of "Quality in everything we do".

ASC Certification

BRC Certification AA+

All production within the Group was ASC certified in 2024. This is an important documentation for the Group and the sustainability profile.

The ASC certification confirms that the Group's environmental and social responsibility impacts are acceptable and under good governance. It also verifies that the Group complies with laws and regulations and that employees are treated in fair way.

Supporting The Group's focus on Food safety, the Group's harvest plant is BRC certified. This certification assures customers that they can enjoy the Group's excellent salmon without concerns, knowing it meets the highest food safety standards.

The Group received the BRC certificate in 2021, and for 2024, the overall score remained AA+ after an unannounced BRC audit in November 2023.

The Group's BRC AA+ rating is a testament to all the hardworking and dedicated employees, who are focused on achieving excellence every single day.

Certified as "Excellent in Iceland 2024"

In 2024, Arnarlax achieved certificate as "Excellent in Iceland" from Keldan and Viðskiptablaðið, having first achieved this recognition in 2023.

With this certification, Arnarlax place itself as role model companies in Iceland. The exclusive list of role model companies is an acknowledgement of excellent business performance.

In 2024, only 2.9 per cent of Icelandic companies were awarded the certification. To qualify, companies of various sizes, categorised as large, medium and small, must meet strong criteria related to profit, equity ratio, revenue and assets.

To achieve the designation of "Excellent", the jury consider the operational years 2021, 2022 and 2023, where key criteria must be met.

Certified as "Strongest in Iceland 2024"

In 2024, Arnarlax was recognised as an outstanding company based on its financial strength and stability, and was awarded the certification of "Strongest in Iceland" by CreditInfo in Iceland.

Only 2 per cent of Icelandic companies met these criteria in 2024.

To qualify for this recognition, companies must meet strict criteria, including being in the highest credit category evaluated by CreditInfo.

Annual accounts must be submitted within the required timeframe, and companies must meet minimum financial requirements, including a solid capital structure, healthy revenues and positive earnings.

Strongest in Iceland 2024

Equal pay certificate

In 2024, the Group maintained its initial equal pay certificate, which it first received in 2021. The current certificate is valid until 3rd January 2028.

The primary objective of obtaining equal pay certification is to address the gender pay gap and maintain gender equality within the workforce. By incorporating the equal pay certification process, businesses and institutions can establish a management system that guarantees pay-related procedures and decisions are grounded in objective considerations, free from any form of gender-based discrimination.

The equal pay standard ÍST 85:2012, available through the Icelandic Standard Council, serves as a benchmark for organisations pursuing this certification.

Support for further growth

As part of the Group's growth strategy, it has over the past years built up capacity for smolt production to a level that supports production of 26,000 tonnes of harvested volume in sea. The final steps will be completed at the beginning of 2025, including the post-smolt plant at Laxabraut 5. The smolt strategy has led to a higher number of smolts, as well as an increased average weight of the smolts that will be put into sea.

To support growth, harvesting capacity has also been increased in recent years. At the end of 2024, the Group's total harvesting capacity is 30,000 tonnes per year. This is sufficient to handle the volumes produced in sea water, within the existing licences.

The Group has over the last years built up a sales and logistic team, that has the competence and capacity to sell all the volume the group produces and harvest. This is a strategic important part of the value chain, in the work to achieve premium prices in the market. The features for which customers are willing to pay a premium include the Icelandic origin, Sustainability features such as the ASC certification, and the high quality of our salmon.

There is still a need for further buildup of equipment in sea, due to the expected increase in production up to 26,000 tonnes in the coming years. These investments include boats, barges, cages, and moorings for the equipment. This is because we expect to start using more new sites in the coming years. In 2024, we started to use one new site, Vatneyri in Patreksfjörður. This was a big milestone for the group, because it increased the MAB utilization on the license in Patreksand Tálknafjörður significantly.

The Group's capability within few years is then 26,000 tonnes on the existing licenses.

Licenses in Ísafjarðardjúp

Icelandic Group's operating company, Arnarlax, received a license 14 June 2024 for 10,000 tonnes of sterile salmon in Ísafjarðardjúp on three new sites. However, the license faced objections, and the Environmental and Natural Resources Board of Appeal ruled that the Icelandic Food and Veterinary Authority (MAST) had not conducted a comprehensive, weighted assessment of the potential increased risk of the spread of fish diseases and parasites before issuing the license to Arnarlax. As a result, the license originally awarded on 14 June 2024, was revoked.

The decision emphasised such an assessment of potential risk is a necessary precondition for the issuance of licenses in areas where the distance between fish farming sites is less than 5 km. The Board of Appeal also raised maritime safety issues concerning one of the three sites.

Arnarlax will continue to work with the authorities and MAST on these matters and perform the necessary assessment in order for the license to be reissued. However, the timeline for reissue is currently unclear. When, and if, the license is reissued, Arnarlax will hold licenses for 33,700 tonnes of MAB, split between 23,700 fertile salmon and 10,000 tonnes of sterile salmon. This will provide up to three new sites for production in Ísafjarðardjúp.

Smolt expansion

The Group owns four smolt facilities. In 2024, one of them was being prepared for smolt production, with production set to begin in the first half of 2025. With increased smolt licenses and full utilization of all smolt facilities, the Group's smolt production will support full utilization of seawater production in the near future.

CONTRIBUTING TO OUR COMMUNITY

Proud sponsor of handball national team

In 2024, Arnarlax continued its three-year sponsorship agreement with the Icelandic Handball Federation (HSÍ), originally established in 2023. As part of this partnership, the Arnarlax logo is displayed on the back of all competition jerseys worn by the Icelandic national handball teams.

The national team's performance has improved in recent years, regularly qualifying for final stages of major tournaments. The men's team qualified for the 2025 IHF Men's World Championship, which was held from January 14 to February 2, 2025, in Croatia, Denmark, and Norway. The women's team qualified for the 2024 IHF Female's European Championship, which was held from November 28 to December 15, 2024.

Handball holds a deep-rooted place in Icelandic sports culture, and Arnarlax takes great pride in supporting HSÍ on its journey. "Go Iceland!"

Sponsoring the youth

In 2024, Arnarlax entered into a three-year sponsorship agreement with Héraðssamband Hrafna-Flóki (HHF), a sport district organisation promoting activities for young people. The partnership underlines the company's commitment to supporting society and investing in the future of youth. Arnarlax and HHF share the same values of promoting healthy lifestyles through sports, using sports as a means to teach goal-setting and personal development.

Arnarlax Academy

As in previous years, the Group hosted the Arnarlax academy, which is a hub for growth, collaboration and learning, where employees come together to develop their skills and strengthen their expertise. In 2024, the academy focused on teamwork. Teamwork is one of the Group's core values: "Teamwork makes us stronger!". By bringing employees together to connect, share knowledge and strengthen bonds, the academy drives both individual growth and collective success, strengthening a stronger, more unified organis ation.

Icelandic Salmon continued to encourage employees to pursue formal education continued in 2024, and two employees received diplomas from vocational aquaculture school. In addition, the Group continued to support its employees to complete higher education and additional courses to advance in their roles.

Community footprint

Export value of farmed salmon 2020-2024

Arnarlax is a major player in the Icelandic economy and in several local communities along the coast. The Group is committed to developing its business in close interaction with these communities. Society creates the framework for Arnarlax's business, and Arnarlax is committed to giving back.

To ensure transparency, the Group annually publishes a community footprint report, prepared by an independent third party. This report provides a comprehensive overview of the Group's contributions.

Arnarlax make significant contributions in the form of employment, taxation, and local value creation. In 2024, the company accounted for 1.5 per cent of Iceland's total goods exports, with its economic contribution reaching ISK 33.6 billion between 2020 and 2024.

Arnarlax employed over 170 people in 2024, with majority based in the Westfjord region, supporting regional job creation. Additionally, its tax footprint averaged ISK 10 million per employee, reflecting the company's substantial financial contribution to the national economy.

Of total taxes paid in 2024, a total of ISK 417 million in taxes and fees went to the local municipalities where the company operates. Arnarlax also invests directly a wide range of community support activities. In 2024, it donated ISK 30 million with a focus on youth, sports and cultural activities.

The community footprint is available at the Group's website www.arnarlax.is

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ARNARLAX'S VISIONS, AMBITION AND VALUES

SUSTAINABILITY AND SOCIAL RESPONSIBILITY ICELANDIC SALMON AS

Vision

Sustainability it's in our nature

Be in compliance with Arnarlax standard.

Keep everything in order.

Walk the talk. Follow rules and regulations.

Contribute to both local and broader societal needs.

Ambition

Premium salmon - Crafted with passion, by nature

Be a frontrunner in the industry in all aspects to deliver a premium product to the customers. This includes sustainability, health and safety, education, fish welfare, technology and biology.

Strive for profitability to secure our employees jobs and contribution to society, within a sustainable framework so high quality salmon can be produced for generations to come.

Quality

In everything we do

Focus on quality in everything we do.

Follow the Arnarlax standard, that guides us in the everyday work to perform at high quality level.

For our colleagues, for the salmon, for the customer and for the environment.

Demonstrate respect for customers, colleagues, community, nature, and salmon.

Encourage and embrace what is being done well.

Focus on open communication, through talking and listening to each other.

We Care Team Work

Makes us stronger

We are driven by working together as a team.

Together we accomplish more.

2 SUSTAINABILITY AND SOCIAL RESPONSIBILITY

SUSTAINABILITY AND SOCIAL RESPONSIBILITY ICELANDIC SALMON AS

Sustainability and corporate responsibility ...............................................16 Fish......................................................................................................................... 22 Environment .......................................................................................................30 People & Society ..............................................................................................38 GRI Index and Third-Party Verification.......................................................43 Independent Accountant's Assurance Report.........................................44

« Back to Contents « Chapter start Next chapter » 15

SUSTAINABILITY AND CORPORATE RESPONSIBILITY

Icelandic Salmon's business is based on farming of Atlantic Salmon (L. Salmo Salar). Operating in a sustainable manner is essential for long-term profitability and environmental and social balance. By minimizing environmental impact and preserving natural resources, we support healthy ecosystems and promote good fish welfare. This ensures a consistent supply of high-quality salmon viability of the industry. Sustainability also builds consumer trust and drives long-term success in an increasingly eco-conscious market.

With the world's population outpacing the planet's ability to regenerate resources, innovative food production is crucial. Salmon farming emerges as a sustainable solution, with minimal land use, freshwater consumption, and greenhouse gas emissions. Aquaculture has great potential to provide healthy, protein-rich food for a growing world

Fish

Good fish welfare is the foundation of Icelandic Salmon's strategy. We work systematically to create an environment in which the salmon thrives and remains healthy.

Environment and technology

Icelandic Salmon believes in preserving the seas for future generations. We strive to minimise our footprint with measures and routines throughout the entire value chain.

People and society

Icelandic Salmon acts as a responsible corporate citizen. We believe in creating local value and safe workplaces and support the local communities where we operate.

Sustainability - it's in our nature

"Sustainability - it's in our nature" is Icelandic Salmon's vision. The Group looks beyond its operations, considering its influence on surrounding areas and its broader impact across the entire value chain. Icelandic Salmon is committed to take care of the benthic at its farm sites, prioritizing the well-being of its employees and the salmon. This commitment includes actively contributing to new technologies that reduce the biological footprint of production and promote environmental preservation.

The Group acknowledges its diverse corporate social responsibility, holding different roles as an employer, producer, supplier of healthy food, custodian of the natural environment, and steward of financial and intellectual capital. Social responsibility is central to its values, and the Group is committed to conducting its operations transparently and accountably, with a focus on minimizing environmental impact.

This is the Group's fifth consecutive sustainability report and the KPIs listed on the GRI index and Third-Party Verification are verified by Ernst and Young. The 2024 sustainability report is an integrated part of the annual report and adheres to the Global Reporting Initiative (GRI) reporting standard. The GRI Index on page 43 gives details on alignment and the audit process.

The report is structured around Icelandic Salmon's three core pillars of sustainability across the entire value chain, with key performance indicators (KPIs) reported under each section of the document.

Icelandic Salmon's core pillars of sustainability
Fish	Environment	People and Society

Our material sustainability topics

The strategic positioning of Icelandic Salmon's facilities in the pristine coastal areas of the Westfjords of Iceland is a testament to our commitment to producing robust and healthy salmon. With clean water and optimal natural conditions, these facilities support local communities by creating jobs and strengthening regional economies. Icelandic Salmon values the significance of these communities and their surrounding environments.

Management of material sustainability topics

The Board exercises oversight of strategic, operational and financial matters, including climate and nature risks. The CEO holds ultimate responsibility for Icelandic Salmon's environmental impact and sustainability efforts, with oversight from the quality department in collaboration with the Board. The management teams in Fish Farming, Harvesting, Sales and Administration, supported by qualified professionals, coordinate sustainability efforts.

Systematic risk and opportunity assessments are conducted at the highest level and in all departments, including assessments of climate risks. This commitment extends to Icelandic Salmon's subsidiaries through Board representation.

The management in the departments are accountable for conducting and reporting monitoring activities. The quality manager plays a key role in following up and assisting the departments in this regard, providing support. Active participation of the quality manager, along with other quality assurance staff, in regular management meetings at all levels of the organization addresses concerns related to quality, safety, the working environment, fish welfare, and environmental/climate issues.

Acknowledging our diverse stakeholder groups

Recognizing the diversity within our stakeholder community, Icelandic Salmon is steadfast in its commitment to foster an open and constructive communication with each constituent. This dynamic dialogue is facilitated through a range of channels, including face-to-face meetings, media engagement, the issuance of interim and annual reports, stock market notifications, GRI reports, advertisements, and our official website, www. arnarlax.is. These dialogues are not confined to a specific locale; rather, they transpire both locally and at the corporate echelon.

When considering stakeholders for inclusion in our future sustainability reporting initiatives, we evaluate the degree of influence each holds over our organization. Our objective is to engage with stakeholders in meaningful and effective way.

Icelandic Salmon undertakes a comprehensive process to pinpoint stakeholders with whom dialogue will be initiated. The selection includes:

• » Public Authorities: Given their role in overseeing public interests and granting operational licenses, public authorities naturally become integral participants in stakeholder dialogue.
• » Supplier Selection and Approval: Management teams across different segments of the Group are responsible for selecting and approving suppliers, as well as engaging with local stakeholders.
• » NGO Engagement: The identification of NGOs (Non-governmental organization's) with which Icelandic Salmon directly interacts is determined by the Group Management.

The table shows the various stakeholder groups that are included in Icelandic Salmon's analyses.

Icelandic Salmon Stakeholders
Internal influence	Business associates	Customer groups	External influence
Employees	Partners	International customers	Government / regulatory authorities
Shareholders/investors	Suppliers	National customers	Industry associations
Board and Group Management	Service providers		Discussion partners
			NGOs
			Research establishments
			Local communities
			Media

Building trust through transparent reporting

Icelandic Salmon places a premium on open and transparent reporting to build trust with stakeholders. In 2024, Icelandic Salmon expanded its reporting initiatives and continued with third-party verification for sustainability KPIs, aligning with the Global Reporting Initiative (GRI).

To understand its position within the industry, Icelandic Salmon benchmarks against sustainability and innovation trends through various channels, allowing the Group to gain valuable market insights. The table below outlines how Icelandic Salmon communicates its sustainability information:

ASC reports	Audit reports from our ASC-certified sites are available on www.asc-aqua.org. Weekly ASC updates on lice numbers, treatments and lethal incidents are available on our website under Sustainability/Quality.
Icelandic Salmon's ESG Policies	Icelandic Salmon has all it's ESG related policies published on its website, ESG Policies. These are public statements from Icelandic Salmon that give insight into how Icelandic Salmon conducts its endeaours while always considering sustainability in all parts of our operations.
Green accounting	A report detailing green information and is submitted to the Icelandic Environment Agency before May 1st each year.
Emission Accounting	A report detailing emissions and is submitted to the Icelandic Environment Agency before May 1st each year.
Monthly Production Reports to MAST	Report submitted monthly to the Icelandic Food and Veterinary Authority detailing lice numbers and information on fish growth and welfare for the Aquaculture dashboard.
Benthic species	On the website www.botndyr.is a dashboard can be found with results from benthic monitoring on farm sites.
Authorities	On the site of the Environment Agency of Iceland www.ust.is operation licenses, audit reports and benthic monitor ing reports can be found. On the site of the Icelandic Food and Veterinary Authority www.mast.is operation licenses and audit reports can be found.

Integrated report combining sustainability reporting with financial reporting.

Quarterly report on financial and operational results. Our website is updated regularly. Here you will find relecant

information about Icelandic Salmon.

Ensuring sustainability across the value chain

Icelandic Salmon is committed to robust supply chain management, conducting thorough due diligence assessments not only of its internal operations but also throughout its entire value chain. These assessments focus on evaluating the risks associated with human rights breaches, whether influenced by the Group or impacting it in any way.

The due diligence process is initiated with a self-assessment questionnaire, where suppliers respond to inquiries covering human rights practices, worker's rights, health and safety, governance, tax, and their own supply chain management processes. Deviations from Icelandic Salmon's expectations prompt closer follow-ups. While no significant human rights breach risks or incidents have been identified to date, Icelandic Salmon remains committed to continuous assessment and improvement in this regard.

All ESG related policies can be found on Icelandic Salmon's website.

Materiality assessment

At Icelandic Salmon, we place a significant focus on directing our efforts towards areas where our operations wield the most significant influence on fish, the environment, and communities. Our materiality assessment goes beyond internal consideration, extending to what holds importance for our stakeholders and is fundamental to our reporting. The identified material aspects serve as the bedrock for the content presented in this report, with colors designating the sections where each aspect receives a more detailed examination. The topics under important in the table below are identified as important in the 2024 assessment to our organization and our stakeholders and are covered by group policies. The highlighted topics represent the list of material topics reported in line with the GRI standards.

Review of material topics 2024

The annual materiality review process is based on a revision of existing material topics from the prior year. In addition, an assessment of the Group's material topics was reviewed with the proposed material topics in the sector standard GRI 13: Agriculture, aquaculture and fishing sectors.

GRI 13, introduced in 2022, and effective from 1 January 2024, covers 26 topics likely material for organizations involved in crop cultivation, animal production, aquaculture and fishing. While GRI 13 links to disclosures in the GRI Topic Standards, it also includes some sector-specific disclosures to report on, given that the company has identified material topics of some of the 26 suggestions.

In 2024, the Group identified and assessed sustainability topics which were reviewed considering its impact on the environment, economy and people.

Icelandic Salmon's commitment to the UN's Sustainable Development Goals

Icelandic Salmon is committed to the United Nations' 17 Sustainable Development Goals (SDGs) through deliberate actions and initiatives. While we recognize the significance of all SDGs, we focus on those where we can contribute most. These prioritized SDGs serve as focal points guiding our Group's dedicated efforts.

3 Good health and well being

Targets in focus: 3.4

Salmon is a healthy source of protein, an important source of omega-3 and a good source of vitamins and minerals which we see clearly via nutrition analysis done on our product.

5 Gender Equality

Targets in focus: 5.1, 5.5, 5.c

Icelandic Salmon is Equal Pay certified where full gender pay gap and equality is certified. Icelandic Salmon has published its policy on Non-discrimination and Equal Opportunities, on its website.

8 Decent work and economic growth

Targets in focus: 8.5, 8.8

Icelandic Salmon is dedicated towards ensuring that all our employees

are valued, safe and respected in the workplace. This includes our supply chain. Icelandic Salmon has an anonymous whistleblowing channel available and policies on Non-discrimination and Equal Opportunities, and Human Rights. For economic growth and impact see Community Footprint 2024 found under Reports and media under Investors on our website.

9 Industry, innovation and infrastructure Targets in focus: 9.4

Icelandic Salmon has committed to a longterm plan in cooperation with authorities and fellow companies within the aquaculture industry to make improvements and adoption of environmentally sound technologies: Aquaculture Climate Roadmap

10 Reduced Inequalities

Targets in focus: 10.1, 10.2, 10.4

Icelandic Salmon contributes to reducing inequalities through fair, non-discriminatory wages, social inclusion for all employees and due diligence of social standards and equality practices through our value chain. Our Non-Discrimination and Equal Opportunities policy is available on our website.

11 Sustainable cities and economies

Targets in focus: 11.3

Icelandic Salmon is dedicated to its employees and to the local communities of where we operate. Icelandic Salmon is conscious that operating in remote areas requires contributing to the local communities so that they also see the value of Icelandic Salmon's presence.

12 Responsible consumption and production

Targets in focus: 12.2, 12.3, 12.4, 12.5, 12.6, 12.8

Borrowing natural resources to carry out our operations brings responsibilities that Icelandic Salmon takes very seriously. This involves responsible and sustainable operations in all parts of the value chain. Icelandic Salmon is dedicated to reducing waste, food waste and

increasing recycling rates and the procurement of products or services with circular designs.

13 Climate action

Targets in focus: 13.1, 13.2

Icelandic Salmon has committed to a long-term plan to reduce its fossil fuel usage and adopt to more sustainable technology: Aquaculture Climate Roadmap

14 Life below water

Targets in focus: 14.1, 14.2

Icelandic Salmon has responsibilities concerning surrounding ecosystems in its operations and closely monitors the benthic sediments under and around farm sites.

17 Partnership for the goals

Targets in focus: 17.14, 17.17

Stakeholder engagement and establishing common goals and pathways toward sustainable development is one of Icelandic Salmon's most important contributions to the industry, to local communities and to our other stakeholders. We believe that partnership is integral to our shared success of reaching our goal.

At Icelandic Salmon, we believe salmon comes first, guiding every action we take. Our objective is to provide sustainable, nutritious food while keeping the well-being of the salmon at the forefront of our efforts.

Central to successful fish farming is prioritizing fish welfare. Icelandic Salmon develops and implements initiatives and procedures aimed at enhancing the welfare of our salmon. We recognize that each decision we make concerning fish health impacts the financial, social, and environmental aspects of the entire value chain.

Fish welfare is one of the key focus points in Icelandic Salmon's operations, underscoring the significance of sustainable aquaculture. Our commitment to the well-being of salmon is not just an aspect but a core principle in our pursuit of responsible and sustainable practices. Icelandic Salmon also wants to cooperate in a socially responsible manner with wild salmon stocks improving escape prevention and monitoring lice on wild stocks.

Fish welfare KPIs

Main Animal Welfare KPIs		Target 2024	2024	2023	2022
Annual survival rate	At sea: In smolt facilities:	93% 93%	87.4% 82.3%	85.6% 88.7%	89.7% 79.7%
Antibiotics	Grams of active pharmaceutical ingredient (API) per tonne produced	0	0	0	0
Sea lice	Per centage proportion of observations over the lice limit (0.5 adult female lice)	0%	27.8%	56%	26%
	Accidental mortality	0	0	0.43	0.43
Interaction with wildlife - Birds1	Euthanised	0	0	0	0
	Accidental mortality	0	0	0	0
Interaction with wildlife - Marine mammals	Euthanised	0	0	0	0
	No. of incidents	0	0	0	0
Fish escapes	No. of escaped fish	0	0	0	0
ASC Certification	Share of active sites certified	100%	100%	83%	100%
	Certification of marine ingredients	100%	99%	96%	100%
	Certification of soya ingredients	100%	100%	100%	100%
Feed	FFDR (Fish meal)	Below 1.202	0.25	0.46	0.34
	FFDR (Fish oil)	Below 2.523	0.98	1.91	1.38
	Biological feed conversion ratio (bFCR)	1.22	1.18	1.19	1.26

¹ Calculated as the number of interactions per active site during the reporting year.

² FFDRm = (% fishmeal in feed from forage fisheries)(eFCR)/24

³ FFDRo = (% fish oil in feed from forage fisheries)(eFCR)/5.0 or 7.0, depending on fish source. eFCR or Economic Feed Conversion Ratio is the quantity of feed used

to produce the quantity of fish harvested (net production is the live weight).

Zero antibiotics usage in 2024

Fish welfare

Icelandic Salmon is dedicated to advancing fish welfare based on the principles disclosed in the "Five Freedoms of Animal Welfare. Ensuring good fish welfare involves systematic initiatives aimed at safeguarding the well-being of the fish throughout their lifecycle. In the Fish Health and Fish Welfare policy Icelandic Salmon's commitment is outlined to upholding the highest standards for fish health and welfare, extending to the well-being of our cleaner fish. How we harvest our salmon is also important, and details can be found in our Humane/Ethical Killing Policy.

The assessment of fish welfare at Icelandic Salmon incorporates various metrics. These include monitoring indicators such as lice, appetite, growth rate, skin health, and wound status during operations, as well as observing oxygen uptake during transport. Altogether, fish welfare stands as a fundamental prerequisite for Icelandic Salmon's operations, treated with the utmost importance throughout all aspects of our business.

Improve fish survival and well-being

At Icelandic Salmon, we are dedicated to improving the survival rate of our fish, a metric we consider to be the most reliable indicator of fish welfare. We measure the survival rate through a 12-month rolling average, presented in absolute numbers, adhering to the methodology endorsed by the Global Salmon Initiative.

While we have observed a decline in the survival rate over the past two years, our unwavering goal remains to achieve a 93.5 per cent survival rate by the year 2025. Identifying smolt quality and infectious diseases as

Trend survival rate

primary factors influencing mortality. However, we recognize the need for further enhancements in managing diseases like HSMI, BKD and POX, as well as prioritizing gill health.

Lice management was a top priority in 2024, with secured capacity for mechanical delousing parallel to medicinal treatments.

Monthly health visits to each farm site and each hatchery were made by designated veterinarians. A total of over 1,400 samples were sent from smolt stations and farm sites for histology and bacteriological analysis.

Promoting cleaner fish welfare

As a preventive measure against salmon lice during the salmon sea phase, Icelandic Salmon employs cleaner fish. Demonstrating our commitment to fish welfare, we strive to maximize the survival rates of cleaner fish by ensuring healthy living conditions within the net pens.

Dedicated feed designed for cleaner fish supports their growth and well-being while fulfilling their primary function. We go a step further by incorporating artificial kelp inside the net pens, providing cleaner fish with a familiar environment for eating, hiding, resting, and sleeping when not actively engaged.

Zero antibiotics

In 2024, Icelandic Salmon maintained its antibiotic-free approach. The Icelandic Food and Veterinary Authority conducts annual screenings for antibiotics and other substances in our salmon for verification of this..

Ensuring adequate space for fish welfare

Adhering to the prevailing legislation in Iceland, the Group operates within a maximum density limit of 25 kg/m3.

We consistently meet this regulatory requirement across all our operational areas, with the average density within each individual net pen consistently surpassing the stipulated minimum. This deliberate adherence to lower-than-required stocking densities ensures that our salmon always has ample space to move freely, a crucial element for maintaining optimal fish welfare. In 2024, the average stocking density at Icelandic Salmon was 3.7 kg/m3.

Proactive measures against salmon lice

Salmon lice, a naturally occurring seawater parasite, pose a threat to the quality and well-being of farmed salmon. As a responsible salmon farmer, it is our duty to coexist with these lice while minimizing their impact on our salmon. The negative consequences of salmon lice, ranging from wounds to severe diseases and mortality, underscore the importance of preventive measures that prioritize both fish and environmental well-being.

In Iceland, sea lice regulations differ from those in Norway. When lice levels exceed the 0.5 threshold, fish farmers must apply for clearance from the local food safety authority (MAST) before conducting a delousing operation. Due to administrative processing times and the high frequency of lice monitoring at sea farms, multiple counts above the national limit may occur before delousing is approved and carried out. As a result, the proportion of lice counts exceeding the 0.5 limit is typically higher in Iceland than in Norway. However, all procedures fully comply with local regulations.

In 2024, the percentage of lice counts exceeding the 0.5 limit in Iceland was 28 per cent, marking a significant reduction from 56 per cent in 2023. Regular reporting of lice numbers to the authorities is mandatory, and all our farm sites provide updated status reports within seven days of lice counting, accessible to the public on Icelandic Salmon's website. Weekly lice counting is mandated during the sensitive period, with a minimum bi-weekly frequency outside this period when sea temperatures exceed 4°C.

An example of our proactive measures against lice is the underwater cameras, which enable automatic daily lice counting in cages while monitoring fish welfare indicators and weight. In year 2024, Icelandic Salmon invested in additional cameras. For 2025, the Group has signed a contract to implement additional preventive measures, including the Stingray laser. The laser uses camera technology to detect and shoot the lice with a laser beam. This reflects Icelandic Salmon's commitment to exploring innovations in lice management.

Secured capacity of non-medicinal delousing in 2025

Preventing and managing fish escapes

Icelandic Salmon maintains a zero-tolerance policy regarding fish escapes, considering such incidents with the utmost seriousness. In 2024, there were no reported escape incidents, and our commitment to preventing fish escapes remains unwavering. Daily routines involve vigilant monitoring, regular checks of technical equipment, and stringent procedures for fish-handling operations.

Zero escapes reported in year 2024

To improve transparency and accountability, Icelandic Salmon conducts monthly monitoring of all cages across its farm sites via subcontractor Recognizing that damage to net pens is a common cause of fish escapes within the industry. Icelandic Salmon is dedicated to ongoing improvements in net pen design to prioritize fish welfare and sustainability. We maintain an open dialogue with authorities on all diving activities on the sites.

Partnership for wild salmon conservation

While the Westfjords have a low level of major waterway with wild salmon, Icelandic Salmon is committed to preserving wild salmon populations. We acknowledge the importance of aquaculture coexisting with those dependent on wild salmon fishing in other parts of the country. Our involvement in various biodiversity initiatives includes monitoring lice on wild salmon populations and we welcome research institutions to get access to our data and equipment.

Minimizing impact on wildlife

Icelandic Salmon places a high priority on minimizing its impact on wildlife. We strive to utilize equipment at our sites that minimizes the risk of harm to wildlife and have work procedures that shall be in focus during daily work.

Sustainable feed

For Icelandic Salmon, fish feed is not just about nutritional quality but also about aligning with our commitment to environmental sustainability. We hold our feed suppliers to high standards, insisting on certified ingredients that guarantee the production of a sustainably sourced product. This involves ensuring that the feed ingredients are sourced from regions free from deforestation threats, and independent of endangered fish stocks. Detailed information about our stance on deforestation can be found in Icelandic Salmon's Deforestation Policy at arnarlax.is.

The feed used by Icelandic Salmon is an all-encompassing blend designed to optimize production and foster excellent fish health. In essence, it's a high-value salmon feed that supports robust growth, maintains a low feed conversion ratio, and fulfills the nutritional requirements of our salmon.

In 2024, approximately 21,940 tonnes of dry feed pellets were used in our salmon farming operations. The accompanying pie chart illustrates a typical pellet's ingredients, highlighting the composition that contributes to a healthy feed promoting fish health, welfare, and growth.

Marine ingredients derived from trimmings in 2024 were 42.3 per cent which is a positive increase of over 15 per cent from 2023.

Beyond monitoring ingredients, Icelandic Salmon ensures the nutritional value of the feed used in hatcheries and sea farms via sampling reports on feed from feed supplier. Additionally, thorough inspections done internally of the physical quality of received feed types help identify and address any non-conformances.

6%

4%

Average contents in Icelandic Salmon feed

How we safeguard our fish feed

• » All fish feed used by Icelandic Salmon is required to be certified.
• » All fish feed used is deforestation-free and not genetically modified.
• » Icelandic Salmon has dedicated personnel who work with fish feed and its nutritional content.
• » Icelandic Salmon has chosen to maintain a strategic partnership with our main feed suppliers, with whom we work to include sustainable ingredients in the feed we use, improve agricultural practices and nutrient management.
• » Icelandic Salmon recognises that soil health and nutrient management is a global challenge in agriculture and expects our feed suppliers to manage soil health and perform nutrient management in a responsible and sustainable manner.

Commitment to certified ingredients

Approximately 17 per cent of Icelandic Salmon's fish feed ingredients comprises marine ingredients, and we hold a stringent standard for the sourcing of these elements. All feed suppliers are mandated to procure marine ingredients certified by the Marine Trust, MSC, or an equivalent standard, ensuring sustainability in the fish stocks they are derived from. In 2024, 98.6 per cent of the marine ingredients used by our feed suppliers originated from certified fish stocks.

Vegetable raw materials play a significant role in our fish feed, constituting approximately 48 per cent of proteins and 22 per cent of vegetable oil. We mandate our feed suppliers to source soy from sustainable origins, certified according to ProTerra, Europesoya, or an equivalent environmental standard. In 2024, all our feed suppliers exclusively used certified soy, ensuring it is not cultivated in areas threatened by deforestation.

Icelandic Salmon prioritizes full traceability of the origin of all feed ingredients, scrutinizing both direct and indirect suppliers. To uphold sustainability across our value chain, we ensure our feed suppliers are ASC certified and verify that all ingredients used in our fish feed originate from sustainably sourced producers.

We ensure low dependence on wild fish stocks

To measure the sustainability of our feed, Icelandic Salmon employs the Fish Forage Dependency Ratio (FFDR). This metric quantifies our reliance on wild fish stocks as raw materials in our feed production. The FFDR assesses the volume of live fish required to produce the fish meal or fish oil needed for one kg of farmed salmon. A lower FFDR indicates reduced dependence on the limited global supply of marine raw materials, allowing for more efficient salmon production.

In alignment with the ASC standard, sustainability in feed is recognised if its FFDRm (fish meal) is less than 1.2 and its FFDRo (fish oil) is less than 2.52. In 2024, Icelandic Salmon achieved FFDR values well below these benchmarks, underscoring our commitment to sustainable feed practices.

The primary sources of marine ingredients in the feed produced by our main suppliers, including herring, mackerel, capelin, white-fish offcuts, blue whiting, bony fish, and anchovy, are detailed in the suppliers' own sustainability reports. For further information, refer to these reports for a comprehensive understanding of the origins and sustainability practices associated with the marine ingredients used in our feed.⁴

Promoting efficient feed utilization

At Icelandic Salmon, we acknowledge that the nutritional quality, consistency, and taste of fish feed are crucial factors, but equally important is the precise dosing to enhance feed utilization and uphold fish health.

Our vigilant monitoring of key performance indicators, with a focus on effective feed utilization, yields numerous advantages, including optimal growth, reduced environmental emissions, enhanced fish welfare, heightened disease resistance, minimized mortality, size uniformity, increased harvest yield, and superior fish quality.

A central sustainability KPI for the Group is the biological feed conversion ratio (bFCR) which states how many kilograms of feed are fed to gain 1 kilogram of salmon and is calculated as the total weight of feed divided by gross growth (incl. mortality). In 2024, Icelandic Salmon's bFCR showed a positive decrease from 1.19 in 2023, to 1.18 in 2024.

bFCR 2024 1.18

To achieve precision in feeding, we

tailor the feed to match the appetite of salmon in each net pen. By encouraging advanced technologies like underwater CCTV cameras, we monitor fish locations in the water column and evaluate their appetite. Our strategic focus on optimizing feeding during the initial 12 weeks at sea, with maximum feed availability, contributes to the development of healthy and resilient fish.

Throughout 2024, Icelandic Salmon continued the development of its feeding center, responsible for remotely controlling fish feeding. This initiative consolidates highly skilled staff into a centralized control room, facilitating the implementation of new routines and continuous learning both internally and externally via training programs. The remote feeding scheme not only enhances our focus on feeding but also serves as an environmental measure, promoting robust growth, swift turnover, and efficient MAB and site utilization. It also emphasizes the importance of our employees who perform this critical task. Ongoing efforts include providing real-time data access, customizing optimal reporting, and developing support tools for our dedicated team.

⁴ Skretting: https://www.skretting.com/en/sustainability/ sustainability-reporting/

Safe and healthy food

Icelandic Salmon takes pride in delivering not just delicious, but also safe and healthy food. Our salmon is of good quality according to our customers, shelf-life tests and nutrition sampling.

Our commitment to providing a sense of safety to our customers is evident through certifications aligning with the most rigorous standards for sustainable aquaculture and food safety, including the Aquaculture Stewardship Council (ASC) and BRCGS. How we provide safe and healthy food to all our customers

• » We prioritize good fish welfare and maintain the correct nutritional content in the fish feed we use, ensuring the production of healthy food for human consumption.
• » Our entire value chain, spanning from roe to plate, is certified to guarantee the highest standards of safety and quality.
• » Thorough training is imparted at all levels, encompassing routines and procedures, to uphold the exceptional quality of our salmon.
• » Regular internal audits are conducted, and we openly welcome audits and inspections from regulatory authorities, certification agencies, and customers.

For detailed insights into how Icelandic Salmon ensures the complete safety and healthiness of its food for customers, refer to our Food Safety Policy and traceability on our webpage.

Certification across the entire value chain

Icelandic Salmon upholds a commitment to honesty and trustworthiness, embracing transparency throughout our operations. We have achieved certification in accordance with the most rigorous requirements and guidelines, demonstrating our dedication to maintaining the highest standards throughout our entire value chain, from roe to plate.

Our adherence to third-party standards and those specified by our customers is rigorously verified through meticulous monitoring of our operations. Moreover, our operations undergo scrutiny from government and regulatory authorities, providing an additional layer of oversight to ensure the integrity and quality of our processes.

ASC BRCGS HACCP Whole value chain Processing 100% harvest ASC certified in 2024

BRCGS score AA+ in 2024

All our production at Icelandic Salmon adheres to the rigorous standards set by the Aquaculture Stewardship Council (ASC). The ASC Standard is designed to propel aquaculture towards environmentally and socially responsible salmon production, utilizing effective market mechanisms that create value across the entire value chain.

Choosing ASC-certified salmon ensures that consumers are selecting fish from a responsible farmer. The ASC Standard, with over 400 auditing criteria spanning seven main categories, sets a challenging benchmark that demands significant resources for documentation and reporting, both before, during, and after certification. Icelandic Salmon goes even further by obtaining certification in accordance with ASC's Chain of Custody scheme, emphasizing traceability to the source.

BRCGS certification, a component of the GFSI standard, underscoring our dedication to maintaining the highest standards in food safety. In year 2024, Icelandic Salmon had the score of AA+ after an unannounced auditor's visit to our processing facility in end of year 2023. This score is the highest score of the BRCGS audit which is conducted annualy.

Salmon is a healthy and delicious food

Salmon is enriched with essential nutrients, making it an integral part of a well-rounded diet. Its safety has been extensively researched, and it is deemed perfectly safe for consumption.

The World Health Organization (WHO) has compiled a comprehensive report on the risks and benefits associated with consuming salmon. According to the findings, incorporating oily fish, such as salmon, into one's diet reduces the risk of cardiovascular disease. This health benefit is attributed to the product's fat composition, featuring high levels of omega-3 fatty acids (EPA and DHA), along with vitamin D, selenium, and easily digestible proteins.

While underscoring the importance of seafood consumption, many people consume insufficient amounts of the crucial nutrients offered by fish. A weekly serving of salmon (150g) has proven sufficient to meet the recommended intake of healthy fatty acids EPA/DHA, contributing to overall well-being.

Nutrition of our harvest in 2024 consisted of:

• » Omega 3 level on average of 2.9g/100g product
• » Omega 6 level on average of 1.9g/100g product
• » EPA/DHA level of 0.73g/100g of product
• » Total fat of 14 per cent on average
• » Total protein 20.4 per cent on average
• » Average SalmoFan colour was 28 (Target >24)

Assurance of safe salmon from Icelandic Salmon

Our production strictly adheres to Icelandic regulations for food production, and our facilities undergo regular inspections by the Icelandic Food and Veterinary Authority (MAST). Additionally, we implement our own sampling program, analyzing and testing feed and finished products for various elements.

The results of MAST's monitoring of samples from our salmon indicate under limit of chemical residues in our farmed fish. Icelandic Salmon received over 40 analysis reports from MAST on residues in harvested salmon, analyzed at external laboratories. Residues that are analyzed are amongst other pesticides, medicinal residues, antibiotics, steroids, PFAS, PCB's, dioxins and high toxicity dye colorings such as malachite green.

Our production processes are designed to meet the diverse standards and expectations of different customers with HACCP system and BRCGS certification integrated into our daily work. We conduct regular internal audits and welcome external audits and inspections by public authorities, certification agencies, and customers. In 2024, Icelandic Salmon performed 2,534 registrations related to hygiene, food safety, quality of fish and daily product control. Internal audits and checks were over 40 in 2024. Over 1,000 samples from product and environment, including samples of ice, effluent, fresh water and sea water, were sampled for microbial measurements.

There were no incidents of product recalls in 2024. Icelandic Salmon has well-defined routines for handling customer complaints, ensuring transparency and informing customers of the steps to take if a purchased product does not meet their expectations. Every product can be traced back through the entire value chain to its origin, providing complete transparency.

Over 2,500 food safety & quality registrations in 2024

Over 1,000 product and environment samples in 2024

ENVIRONMENT

Operating under the core principle of minimal environmental impact, Icelandic Salmon is dedicated to produce salmon in an environmentally friendly manner. Our mission at Icelandic Salmon is to spearhead the development of a sustainable aquaculture industry, prioritizing ocean protection, energy efficiency, and the reduction of greenhouse gas emissions.

In our pursuit of sustainability, we actively explore new technologies and innovations to diminish our biological footprint, concurrently maximizing salmon production. However, acknowledging the ongoing need for advancements in sustainable practices, Icelandic Salmon remains committed to acquiring new knowledge and fostering innovation.

Continuous work towards our sustainability-linked goals set in June 2023, on page 42, along with working towards goals set in the Climate Roadmap of Aquaculture project, Icelandic Salmon is committed to a gradual reduction of greenhouse gas emissions. This strategic commitment aligns with our ongoing efforts to contribute meaningfully to environmental sustainability within the aquaculture industry.

For more information see our Environmental Practices Policy, on our website along with other ESG-related policies.

Environment KPIs

Main Environmental Standards KPIs		Target	2024	2023	2022
Absolute greenhouse gas (GHG) emissions (1000 tons CO2eq)	Scope 1		3.0	2.2	1.8
	Scope 2	-42% from 2020 to 2030	0.0	0.0	0.0
	Scope 1 + 2		3	2	2
	Total Scope 3		57	60	72
	Total Scope 1 + 2 + 3		60	62	73
Intensity of GHG emissions (tCO2eq / tonne salmon gross growth)	Scope 1 + 2	-42% from 2020 to 2030	0.2	0.1	0.1
	Scope 3		3.3	3.6	3.4
	Scope 1 + 2 + 3		3.5	3.7	3.5
Intensity of GHG emissions (tCO2eq /MNOK revenue)	Scope 1 + 2		2.6	1.2	1.1
	Scope 3	-42% from 2020 to 2030	48.5	33.7	44.9
	Scope 1 + 2 + 3		51.1	35.0	46.1
Electrical or hybrid installation at farms	Share of sites supplied by el or hybrid power	100%	29%	33%	0%
Freshwater withdrawal	Intensity (m3/tonne salmon)		20	20	16
	Absolute (million m3)	-20% from 2022 to 2030	1.138	1.183	779
	From water risk areas		0	0	0

Greenhouse gas emissions

The reduction of global greenhouse gas emissions is a critical challenge, and Icelandic Salmon aims to set a notable example for other companies, especially within the domestic context. Salmon farming is positioned as a low-carbon alternative for food production and many studies can be found on the topic.

However, Icelandic Salmon acknowledges that simply highlighting the climate benefits of salmon farming is insufficient. The Group is committed to ongoing efforts to develop and implement sustainable practices as identified in the Aquaculture Climate Roadmap ensuring that its operations remain environmentally responsible. This reflects a dedication to not only leverage the inherent advantages of salmon farming but also to actively contribute to environmental sustainability through continuous improvement and innovation.

Icelandic Salmon has pledged to reduce its greenhouse gas emissions

To underscore our commitment to reducing greenhouse gas emissions, Icelandic Salmon acknowledges the significance of developing a high-quality Greenhouse Gas (GHG) inventory. In this pursuit, the Group has undertaken a thorough process to reassess and refine its existing GHG reduction targets. The revised targets are designed to align with science-based criteria that are in harmony with the United Nations' 1.5 °C Paris agreement. This strategic alignment ensures that Icelandic Salmon's efforts to reduce GHG emissions are consistent with the global scientific consensus on the measures needed to limit global warming to a manageable level. This commitment reflects a proactive approach to environmental responsibility and adherence to established scientific guidelines for sustainable practices.

Scope 1 and 2 absolute emissions: At least 42% reduction from 2020 to 2030

Scope 3 absolute emissions: At least 42% reduction from 2020 to 2030

The objective pertaining to scope 1 and 2 emissions signifies Icelandic Salmon's committed efforts to actively diminish greenhouse gas emissions originating from its internal operations. This involves a concerted focus on reducing reliance on fossil fuels and guaranteeing that all electricity utilized is sourced from renewable energy. By doing so, Icelandic Salmon aims to minimize the carbon footprint directly associated with its facilities and activities.

As for the scope 3 target, Icelandic Salmon recognises the imperative of fostering collaboration throughout its value chain to ensure that all operations, both preceding and following its own, adhere to carbonefficient practices. This entails aligning climate goals with those of suppliers and establishing clear expectations to collectively promote carbon efficiency throughout the entire value chain. This holistic approach reflects Icelandic Salmon's dedication to addressing emissions beyond its immediate operations and promoting sustainability across its broader network.

Icelandic Salmon pledges to align its climate targets with the Science Based Targets initiative, with a commitment to update them in line with forthcoming recommendations from the Forest, Land and Agriculture (FLAG). The categorization of Scope 3 emissions follows the Greenhouse Gas Protocol, encompassing specific categories considered most pertinent to Icelandic Salmon's activities. The selected categories (2, 7, 9, 10, 12, and 15) have been integrated into the GHG inventory, while others (8, 11, 13, and 14) were deemed either negligible, too inaccurately estimated, or irrelevant to be included in Icelandic Salmon's Scope 3 targets, as determined by the internal team. This strategic approach reflects Icelandic Salmon's commitment to a comprehensive and accurate assessment of its emissions footprint.

Scope 3	Description	2024	2020
Cat 1	Purchased goods and services	33,790	57,859
Cat 3	Fuel and energy related activities	709	248
Cat 4	Upstream transportation and distribution	22,582	7,640
Cat 5	Waste generated in operations	47	28
Cat 6	Business travel	43	4
Total	All emissions in Scope 3 target	57,347	65,779

Emission reduction performance 2024

In 2024, Icelandic Salmon's scope 1 and 2 emissions increased by 28 per cent from 2023 but reduced scope 3 emissions by 5 per cent and 15 per cent since base year with over 8,000 CO2-equivalents. Due to the decrease in scope 3 emissions it also means that the Group's total emissions have been reduced by 3 per cent in the last year, and 11 per cent since 2020, a reduction of more than 6,400 tons of CO2 equivalents.

GHG emission reduction 2020-2024 8,432 tons CO2 equivalents 15% Scope 3

Absolute GHG Emissions - Icelandic Salmon

Intensity of GHG Emissions - Icelandic Salmon

Overview of energy and greenhouse gas emissions

Icelandic Salmon's energy and climate balance sheet has been meticulously prepared in collaboration with CEMAsys, utilizing the well-established GHG Protocol. The values are derived from a combination of internal and external systems, incorporating diverse emission factors to ensure the accuracy of greenhouse gas emission calculations.

In 2024, Icelandic Salmon's energy consumption comprised of 1,111,920 liters of fossil fuel which is an increase from the year before and is related to more consumption and activity. Electricity consumption comprised of 8,781 MWh of electricity with 136 MWh dedicated to district heating from renewable sources. In 2024 there was a reduction of 1,823 MWh compared to the previous year (2023). It is noteworthy that all electricity in Iceland is sourced from geothermal and local hydro power, reinforcing Icelandic Salmon's commitment to renewable and sustainable energy practices..

We are electrifying the value chain

In our commitment to advancing environmental sustainability in aquaculture, Icelandic Salmon is actively pursuing increased energy efficiency across its operations. Multiple strategies are being explored to achieve this objective, including the supply of onshore electricity to power sea sites and electrification of vessels, with a focus on reducing Scope 1 emissions.

In 2024, the Group planned to further advance its electrification efforts by establishing land power connections at the first farm site and introducing its first hybrid technology workboat in the year 2025.

Beyond the evident benefits of reducing diesel consumption and minimizing emissions, electrification positively impacts occupational health by decreasing noise pollution from diesel generators. Looking ahead, Icelandic Salmon remains committed to expanding electrification efforts, connecting more barges to onshore electricity sources, implementing hybrid technology at sites beyond feasible onshore areas, and exploring alternative energy sources to further mitigate greenhouse gas emissions.

We use local energy and water resources

In our continuous commitment to advancing energy efficiency, Icelandic Salmon places a strong emphasis on harnessing local water-based energy sources, consistently seeking opportunities to leverage these resources across our facilities.

Within our hatcheries, we capitalize on the abundant natural geothermal energy sources present in the regions we are operating. By employing geothermal heat exchangers, we effectively utilize this sustainable energy to warm the intake water.

Furthermore, our harvesting plant situated in the Westfjords optimizes efficiency by tapping into the power of local hydroelectricity. This strategic utilization of nearby hydro power contributes to the overall sustainability of our operations.

In essence, Icelandic Salmon's proactive use of local water-based energy resources underscores our commitment to environmental stewardship and the continuous pursuit of energy-efficient solutions.

We make effective use of our fish feed

Fish feed represents a significant portion of our scope 3 emissions, accounting for nearly 57 per cent of the total. Recognizing the pivotal role of feed in our overall greenhouse gas emissions, Icelandic Salmon is committed to enhancing the efficiency of feed consumption and integrating novel, low-carbon feed ingredients into our fish feed formulations.

In the concerted efforts to address this environmental impact, Icelandic Salmon is a part of ongoing dialogues with feed suppliers. These discussions focus on incorporating more climate-friendly feed ingredients and improving agricultural practices associated with feed production. Through collaborative initiatives, we aim to not only reduce the overall carbon footprint of our feed but also contribute to sustainable and environmentally responsible feed practices.

Biodiversity and site environment

Icelandic Salmon farms salmon in hatchery and open net pens on farm sites in the West Fjords and in hatcheries on the South coast of Iceland. In 2024, the company harvested 11,676 tonnes of salmon. The Group recognises the importance of this natural balance and the shared assets of the local community that are utilized in the production process. With a deep sense of responsibility, the Group acknowledges the need to preserve the sea and its living creatures for future generations. Icelandic Salmon is committed to employ technology that treats the environment with the utmost care and consideration. This commitment reflects a dedication to sustainable practices that harmonize aquaculture with the delicate ecosystems of the sea.

We care for the benthic sediments

Icelandic Salmon places a high priority on the environmental impact of its operations, conducting regular inspections of the seabed beneath all sites to assess the extent of any influence from the aquaculture activities both at maximum biomass and after fallow before new output. Icelandic Salmon's goal is that all farm sites recover after each generation, aiming for a "very good" or "good" condition designation (MOM-B score of ≤ 22) from benthic assessments. In 2024, 100 per cent of operational sites achieved this goal.

Icelandic Salmon is working on reducing the use of copper impregnation in the coating of its net-pens, aiming to minimize benthic impacts associated with its aquaculture operations. In 2024 a total of 32 per cent of all nets in sea operations did not have copper impregnation in the coating. For past years Icelandic Salmon has complied to set copper limits in sediments according to the ASC standard.

Furthermore, the Group ensures that its processing facilities and onshore hatcheries comply with discharge permits for excess wastewater. The discharged water undergoes treatment before being released into the sea. Continuous monitoring of water quality is a standard practice, and all Icelandic Salmon facilities are strategically located in areas with low risk across all main categories of the WRI Aqueduct map3.

In 2024, Icelandic Salmon reported no incidents of non-compliance with water quality or discharge permits, underscoring the Group's commitment to responsible environmental practices. The wastewater volume target is aligned with the water withdrawal target, emphasizing a sustainable approach where all withdrawn water receives appropriate treatment before discharge. This reflects Icelandic Salmon's dedication to maintaining environmentally conscious and sustainable aquaculture operations.

2 The MOM-B study complies with Norwegian Standard NS9410. The condition is graded on a scale of 1 to 4, where 1 = Very good, 2 = Good, 3 = Bad, 4 = Very bad.

4 www.wri.org/aqueduc

Water management

Compared to other food production types, salmon farming requires less freshwater since the fish spend much of their lives in the sea. The primary source of Icelandic Salmon's freshwater consumption is attributed to its onshore hatcheries, constituting 97 per cent of the total in 2024. Residual consumption is primarily associated with harvesting and processing operations. Icelandic Salmon's total water withdrawal is presented in the table below.

Freshwater source	Water withdrawal (1000m3)
Surface water	1,577
Municipal water	143
Ground water	17,612
Geothermal water	365
Total water withdrawal	19,696

We use fresh water only from low-risk areas

Icelandic Salmon acknowledges the global challenges related to water scarcity and emphasizes responsible water management in its operations. The Group ensures that all withdrawn freshwater comes from areas with low risks of water shortages or poor water quality. The World Resource Institute's water risk map4 is used as a tool to assess and understand water risks in different regions.

Additionally, Icelandic Salmon is actively engaging with its suppliers, particularly feed suppliers operating in areas with higher water risk. The expectation is for these suppliers to responsibly and sustainably manage water resources, with a clear strategy aimed at reducing freshwater use.

Water treatment

All water from the processing facility is rinsed and sanitized before it is released to the effluent.

³ Aqueduct | World Resources Institute: https://www.wri.org/aqueduct

Circularity and Nutrient Management

Icelandic Salmon is committed to transitioning from linear to circular economies, influencing material flow patterns, procurement strategy, and strategic partnerships in operational areas with high potential for resource reuse.

At one of the Icelandic Salmon's hatcheries, a filter facility has been implemented to process sludge and utilize it as a valuable resource. It's a long-term project to start up a drying process for sludge production but it is our first target to be able to achieve at least 30 per cent of dry matter. Processed sludge has been giving good fertilizer effect on farming fields for example.

To ensure responsible waste disposal, we conduct measurements according to operational licenses for total organic carbon (TOC), total nitrogen, and total phosphorus in the wastewater, which is monitored by both local and public authorities.

In cases where resources cannot be effectively reused, Icelandic Salmon follows a waste management plan applicable to all departments. This plan specifies approved receiving facilities for various types of waste. Major waste categories, such as packaging and fish farming equipment (e.g., feed pipes, collars, nets, and mooring devices), are directed to enterprises that specialize in reusing these materials. Icelandic Salmon remains committed to responsible resource management, aiming to minimize waste generation.

Addressing ocean pollution, with a focus on plastic waste

Recognizing the significant environmental challenge posed by sea pollution, particularly plastic pollution, Icelandic Salmon is dedicated to contributing to the reduction of plastic waste in the oceans. We aim for continual improvement in waste handling practices.

To reduce the volume of plastic waste generated by our operations, we have been implementing several initiatives:

1. Recycling obsolete plastic equipment:

We ensure that obsolete plastic equipment is recycled by participating in established return schemes. Additionally, we collect other waste materials for delivery to municipal waste handling systems.

2. Promoting reuse and recycling:

We actively contribute to more reuse and recycling, especially of plastic materials. This involves enhancing the materials surrounding our end products and increasing the utilization of reusable boxes.

3. Participating in beach cleanup initiatives:

Icelandic Salmon contributes to beach cleaning and plastic waste collection through various means, including financial support, lending boats for cleanup operations, and active participation.

Addressing sea pollution in fish farming

Recognizing the challenges associated with sea pollution caused by uneaten feed and fecal matter in the fish farming industry, Icelandic Salmon takes its responsibilities seriously. We actively engage in projects to increase knowledge on this matter and leverage new optic technology to optimize feed conversion ratios. This approach aims to limit the amount of feed spilled into the sea, contributing to sustainable and responsible fish farming practices.

Comprehensive utilization of salmon by-products

Icelandic Salmon is committed to maximizing the use of every part of the salmon, ensuring a sustainable and environmentally friendly approach. Our by-products are fully exploited through a streamlined process:

Closed system to by-product site:

All by-products from processing are efficiently directed through a closed system to our land-based by-product site. This closed-loop system minimizes the need for additional input factors related to transport and handling..

Efficient resource utilization:

The approach ensures that every part of the salmon, including those that may not meet production standards, is utilized efficiently. This includes fish that may not survive during production in hatcheries or sea water.

Eco-friendly disposal:

The by-products are sent to specialized company which utilize the by-products as ingredients in various industries, including fish meal and fish oil production, feed manufacturing, and biogas.

This comprehensive utilization of salmon by-products not only aligns with our commitment to sustainability but also contributes to minimizing waste and promoting circular economy practices in our operations

We support research and education

Iceland's aquaculture industry has experienced significant growth, with Icelandic Salmon playing a pivotal role in its continuous development. The Group is dedicated to advancing knowledge in various operational areas through extensive collaboration with key stakeholders:

Partnerships with public authorities and educational institutions:

Icelandic Salmon collaborates closely with public authorities, educational institutions, and industry associations. This collaborative approach contributes to the growth and development of the aquaculture industry in Iceland.

Support for academic programs:

The Group actively supports academic programs related to aquaculture. Icelandic Salmon has engagement with the Westfjords University Center and other education institutions. Master students often work on their thesis in cooperation with the company where we support the students with data, documents, and equipment.

Collaboration with fisheries and aquaculture education institutions:

Icelandic Salmon maintains good collaborations with institutions such as the Icelandic College of Fisheries and is engaged in discussions with Hólar University and the University of Akureyri, which offers formal education in the field of aquaculture and fisheries.

Research support:

Icelandic Salmon welcomes researchers working on projects relevant to the aquaculture industry. The Group provides support in the form of information, equipment, and data to contribute to the success of research initiatives.offers formal education in the field of aquaculture and fisheries..

Exchange training programs:

We welcome exchange students for training programs through our collaboration with universities and colleges. Our employees also attend training programs via the operations of our major shareholder.

PEOPLE & SOCIETY

At Icelandic Salmon, we prioritize the well-being of our colleagues, partners, and the communities where we operate. As responsible corporate citizens, we believe that our conduct should contribute positively to both our business operations and society as a whole. With a workforce exceeding 180 employees, we play a significant role as an employer, making us a vital contributor to society. This role carries multiple responsibilities to individuals, communities, and the industry, which we uphold through ethical business practices as a core value.

At Icelandic Salmon, we are committed to upholding and promoting human rights in all facets of our operations. Key aspects, such as safeguarding against discrimination and supporting the right to form labor unions, are central to the Group's Ethical Guidelines. In 2024, Icelandic Salmon continued auditing subcontractors to ensure adherence to human rights standards, following the initiative launched in 2023.

Our dedication to sustainability revolves around creating local values, fostering knowledge, and enhancing the quality of life for individuals. Recognizing our role as an employer, producer, supplier of nutritious food, custodian of nature and the environment, and manager of intellectual and financial capital, we acknowledge the importance of integrating these aspects into our business. Given our influential position, we understand the significance of making positive and sustainable contributions to our surroundings, while also actively participating in community initiatives whenever possible.

Breakdown by residency

People and society KPIs

Main Social & Governance KPIs		Target 2024	2024	2023	2022
	No. of full-time equivalents (FTE):		158	168	154
	Admin		18	18	17
Employees in the workforce (Full-time equivalents)	Smolt facilities	Increase in all divisions	23	25	24
	Fish farming		66	64	58
	Sales & Industry		51	60	55
	Total across divisions	Increase in all divisions	24%	28%	26%
	Admin		49%	49%	51%
Female ratio	Smolt facilities		20%	18%	20%
in the workforce (Full-time equivalents)	Fish farming		9%	12%	12%
	Sales & Industry		36%	39%	33%
	Top management		38%	33%	29%
	Own employees	0	0	0	0
Fatalities	Subcontractors	0	0	0	0
	Own employees (LTIs)	0	8	5	9
Lost time incidents (LTIs)	Frequency (LTIs)	< 3.0	5.1	3.0	5.8
	Subcontractors (LTIs)	0	2	0	0
Sickness absence rate	Own workforce	< 4.5%	5.4%	4.7%	4.1 %
	No. of violations	0	0	0	1
Regulatory compliance	Fines (ISK million)	0	0	0	120

The workforce

To achieve our strategic objectives, we must attract and retain highly skilled employees, regardless of gender, age, or background. This can only be accomplished by providing an appealing and secure work environment.

Our commitment to diversity is evident in our workforce. In 2024, Icelandic Salmon employed 158 full-time equivalents from at least 15 different nationalities. This represents a slight decrease of 9.5 fulltime equivalents from 2023. The workforce comprised 46 women and 134 men, resulting in a female ratio at 24 per cent and in the Executive Management at 38 per cent.

Icelandic Salmon actively promotes the recruitment of women in what has traditionally been a male-dominated industry. Our goal is to showcase the vast opportunities for women in all industry sectors, targeting potential future employees in schools, universities, and having female representatives speak about Icelandic Salmon as a workplace.

The female ratio of employees decreased slightly between the years in most parts of our value chain. While the percentage of women is higher at the Group's administration, sales, and processing facilities compared to at hatcheries and fish farms, we are focusing on increasing the female ratio in the fish farming segment in the coming years.

Since 2021, Icelandic Salmon has been certified by BSI according to the equal pay standard ÍST 85, ensuring professional practices that prevent direct and indirect gender-based discrimination, demonstrating that our remuneration policy promotes equality.

In the maintenance audit conducted in November 2024, the gender pay gap was 0.3 per cent in favor of females, and the report highlighted the exemplary and well-managed nature of the Group's equal pay system.

Details of benefits to executive management and compensation according to the remuneration policy for 2024 are presented in Note 2.3 Salaries and personnel expenses on page 72.

Age distribution of Icelandic Salmon

<30 years 30-50 years >50 years

Female ratio

We have clear ethical guidelines

In our Ethical Guidelines, we explicitly outline our commitment to promoting diversity and equality. Icelandic Salmon unequivocally rejects discrimination, abuse, or harassment of our workers or partners. We are dedicated to treating everyone with courtesy and respect, regardless of their ethnicity, gender, national or social background, age, functional capacity, sexual orientation, religious faith, political convictions, or other status.

Respect for the individual is a fundamental principle embedded in one of our company's core values, "We care." Our policy emphasizes that everyone should be treated with dignity and respect, and no one should be unfairly hindered from carrying out their duties and responsibilities. This approach is rooted in the understanding that diversity contributes to a better working environment, enhances adaptability, and yields better results in the long term.

Icelandic Salmon's Ethical guidelines is available on our website

Encouraging accountability: Whistleblowing at Icelandic Salmon

At Icelandic Salmon, we prioritize transparency and accountability in our workplace. To ensure a safe space for reporting wrongdoing or expressing grievances, we have established Ethics Gateway, a dedicated whistleblowing channel operated by a consulting company. This platform enables all employees to report concerns, either anonymously or using their full names, promoting accountability and fairness.

The Ethics Gateway is easily accessible on www.sidferdisgattin.is in both Icelandic and English languages. It operates independently, fostering an environment where individuals can report not only issues related to themselves but also instances of unfair treatment toward others. Our commitment to this channel is a testament to our values and our dedication to maintaining a workplace built on integrity.

To ensure that employees feel confident in using the whistleblowing channel, we provide comprehensive training on the procedure. Importantly, all employees are assured of protection from reprisals when reporting any wrongdoing. Detailed information on the grievances and whistleblowing procedure is available in our management system, accessible to all employees and is handled in collaboration with the HR department.

In the year 2024, no grievances or whistleblowing reports were recorded, encompassing all grievances for the full year.

For more in-depth information about our whistleblowing channel and Icelandic Salmon's practices related to this, please refer to our whistleblowing procedure and Grievances policy on arnarlax.is.

Promoting equality and non-discrimination at Icelandic Salmon

As a foundational step, we continued with the Equal Pay certification process, focusing on equitable remuneration practices. These measures underscore our ongoing efforts to cultivate a workplace where everyone is treated with respect and fairness. Icelandic Salmon is steadfast in upholding these values across all aspects of our operations. Course in non-discrimination has been held for all employees in seawater.

Empowering and engaging our team

At Icelandic Salmon, we believe in harnessing the collective strength of our workforce for continuous growth. Regular planning and review meetings are conducted across various departments, ensuring a structured platform for employees to contribute ideas and insights.

Our commitment to employee development begins with comprehensive training in the company's eLearning system where courses on health and safety, fish welfare, escape prevention and biosecurity are key factors along with other courses.

Another key role regarding employee development is the Arnarlax Academy which stands as Icelandic Salmon's dedicated platform for cultivating individual competence and shaping our corporate culture. Addressing not only operational matters but also diving into corporate culture and leadership, this initiative engages both managers and employees in the collective pursuit of creating one of the leading aquaculture companies in Iceland. The bedrock of our activities in this domain is grounded in shared management principles and tenets. In 2024 the Arnarlax Academy focused on teamwork and teambuilding within departments and across departments, highlighting one of our values "Teamwork makes us stronger".

Icelandic Salmon acknowledges its responsibility in training skilled workers and actively fosters talent through numerous apprenticeships. Collaborating with esteemed institutions like the Icelandic College of Fisheries, University of Akureyri and Westfjords University, we contribute to the development of the next generation of industry professionals.

Additionally, Icelandic Salmon conducts regular development discussions with employees, occurring at least annually. This best practice not only plays a crucial role in nurturing content and highperforming employees but also provides a familiar space for open and honest dialogue with senior management, fostering a culture of continual improvement and collaboration.

Icelandic Salmon is committed to upholding the rights of our employees, actively promoting freedom of association and supporting collective bargaining. 100 per cent of Icelandic Salmon's employees are covered by the collective bargaining agreements. In Iceland, no specific amount is specified as minimum wages; rather, there is a legal provision stipulating that wages lower than those specified in collective bargaining agreements may not be paid.

Incentive schemes for senior executives are linked to our sustainability KPIs

Icelandic Salmon employs a performance-based bonus scheme depending on positive EBIT of the company for senior executives, aligning closely with the achievement of the Group's sustainability key performance indicators (KPIs). Tailored to specific roles and responsibilities, individuals across the organization, from Group Management to site managers, have distinct KPIs that guide the assessment of their performance-based bonuses. For instance, sea farm site managers are evaluated based on clear KPIs related to fish welfare, encompassing factors like survival rate and feed conversion ratio.

All general employees without KPIs are also a part of the bonus system.

Health and safety in the workplace

At Icelandic Salmon, our commitment is to provide a secure working environment. We work systematically with risk management and training to protect our workforce.

In 2024, we recorded a total of 8 Lost Time Injuries (LTI), achieving an H-factor5 of 5.1. This is an increase from the H-factor reported at 3.0 in 2023. We aim to return to an H-factor of 3.0 in 2025 through continuous work and safety training.

H-factor 2024 5.1

To ensure transparency, Icelandic Salmon reports LTIs for subcontractors, with two LTIs reported for subcontractors in 2024.

Serious personal injuries are promptly reported to relevant authorities and thoroughly investigated to prevent similar incidents in the future. Hazardous operations are meticulously planned, supported by operational plans and safe work analyses (SWA) before any work commences. Compliance with national regulations on working hours and rest periods is prioritized.

Our safety efforts include a dedicated Safety Committee, consisting of selected management representatives and nominated employee representatives from various departments. The committee meets at least quarterly to discuss safety matters and organize training initiatives. Management also monitors safety performance during weekly and monthly meetings.

As part of Icelandic Salmon approach to employee well-being, an annual health check and vaccination program are provided on-site, ensuring proactive health measures.

In 2024, the sickness absence rate exceeded the target for the second constructive year, reaching 5.4 per cent (vs. 4.5 per cent target). In 2025, the aim is to bring the overall sickness absence rate back in line with the set target, reinforcing our commitment to the health and well-being of our workforce.

⁵ H-factor = (Accumulated LTI over last 12 months x 200,000 workhours) / Acc. Work hours last 12 months

Society

Our presence extends to local communities in the Southern Westfjords region, South Coast, and Reykjavik. We recognize the importance of these communities having essential infrastructures and recreational opportunities for our employees. Operating in locations conducive to optimal fish growth is critical for Icelandic Salmon. Engaging in local forums, information exchange, and planning processes are essential aspects of our commitment to these regions.

As a relatively young industry, salmon farming requires transparent communication with local decision-makers and residents. By participating in business associations and public debates, Icelandic Salmon contributes to sustainable development processes in Iceland. We prioritize keeping stakeholders informed about our operations and future development plans.

Community support and sponsorship

Icelandic Salmon is dedicated to making meaningful contributions to the communities in which we operate. Through our sponsorship committee, we support local culture, community projects, educational events, sports teams, and voluntary associations. The committee places a special emphasis on backing initiatives that promote sports and culture, with a focus on children and young people. We believe that by investing in local culture, education, and sports, we contribute to the well-being and growth of the communities that form an integral part of our operations.

In addition to our broader community support initiatives, Icelandic Salmon serves as a major sponsor of public transport in the Southern Westfjords. This is also to provide our own employees with safe and sustainable transport to work. By supporting sustainable mobility solutions, we aim to contribute to the accessibility and connectivity of the region, promoting environmentally friendly transportation options. This sponsorship aligns with our commitment to fostering a positive impact on local communities and the environment in which we operate.

Sustainable financing for responsible practices

In 2023, Icelandic Salmon secured a sustainability-linked credit facility, tied to three key sustainability KPIs that impact the interest margin. Meeting these KPIs results in a lower margin, while failure leads to a higher margin, emphasizing the Group's commitment to sustainable practices. The KPIs focus on:

• » Survival Rate in Seawater
• » Biological Feed Conversion Ratio
• » Usage of Fossil Fuel, Scope 1 (liters per kilo harvested)

In 2024 the Group succeeded with the biological feed conversion ratio while the other two KPIs were not met.

We comply with the regulations

The aquaculture industry is strictly regulated, and companies must comply with their operational licenses, applicable laws and regulations. Icelandic Salmon reports the number of regulatory violations that have resulted in fines. This includes all violations relating to products and food safety, environmental and social regulations that resulted in monetary fines. In 2024, Icelandic Salmon had no regulatory violations.

GRI INDEX AND THIRD-PARTY VERIFICATION

Icelandic Salmon reports on its activities in the field of corporate social responsibility and sustainability on the basis of the guidelines issued by the Global Reporting Initiative (GRI). Reporting takes place via this report, Icelandic Salmon's consolidated annual report and sustainability and other information published on our website.

The sustainability report for 2024 includes data for several disclosures drawn from GRI's guidelines. An overview of which indicators the report covers is presented in a separate publication on our webpage. For reporting year 2024, the GRI 13: Agriculture, Aquaculture and Fishing Sectors 2022 came into effect for reporting, with early adoption encouragement. This standard is used together with the GRI Universal Standards and the GRI Topic Standards in this report.

EY has carried out a limited third-party verification of the 2024 report. The KPIs in the report that have been verified, along with accompanying comments, are presented below.

Third-party verification

The following shows the KPIs that have been the subject of thirdparty verification by EY

The relevant criteria in the GRI standards are 305-1, 305-2, 305-3, 305-4, 403-9, and 403-10

Fish			Environment & Technology		People & Society
KPI		Indicator	KPI		Indicator	KPI		Indicator
Survival rate	12-month rolling survival rate	GSI		Scopes 1+2 (GHG tCO2e)	305-1+2		LTI-Own employees	403-9
Antibiotics	Grams of active pharmaceutical ingredient (API/tonne produced)	GSI		Intensity Scopes 1+2 (kgCO2e/tonne produced)	305-4	Safety and sickness absence	LTI-Subtractors	403-9
Interaction	Birds - Accidental mortality	GSI	Greenhouse gas (GHG)	Scope 3 (GHG tCO2e)	305-3		H-factor	403-9
	Birds - Euthanised	GSI	emissions	Intensity Scope 3 (kgCO2e/tonne produced)	305-4		Sickess absence	403-10
with wild life	Marine mammals - Accidental mortality	GSI		Intensity Scopes 1+2+3 (kgCO2e/tonne produced)	305-4
	Marine mammals - Euthanised	GSI	Site environment	MOM-B-Score ≤ 2	Own KPI
	No. of incidents	GSI	Operational areas with low	Share of operational areas with a low	303-5
Fish escapes	No. of escaped fish	GSI	water risk	overall water risk
Fish feed	Certification of marine ingredients in fish feed	Own KPI	Withdrawal of fresh water	Withdrawal (1,000 m3)	303-5
	Certification of soya ingredients in fish feed	Own KPI		Intensity (m3/tonne of salmon)	Own KPI
	FFDR (Fish meal)	Own KPI
	FFDR (Fish oil)	Own KPI
	Biological feed conversions ratio	Own KPI
Certification	Share of active sites certified	GSI

INDEPENDENT ACCOUNTANT'S ASSURANCE REPORT

Statsautoriserte revisorer Ernst & Young AS

Foretaksregisteret: NO 976 389 387 MVA Tlf: +47 24 00 24 00

Havnegata 9, 7010 Trondheim Postboks 1299 Pirsenteret, 7462 Trondheim www.ey.no Medlemmer av Den norske Revisorforening

To the board of directors in Icelandic Salmon AS

INDEPENDENT ACCOUNTANT'S ASSURANCE REPORT

Scope

We have been engaged by Icelandic Salmon AS to perform a limited assurance engagement, as defined by International Standards on Assurance Engagements, here after referred to as the engagement, to report on Icelandic Salmon's sustainability reporting as defined and specified in the Icelandic Salmon's GRI Index (see the document GRI content index 2024 on page 43 in Icelandic Salmon AS's Consolidated Annual Report (the "Subject Matter") as for the year then ended.

Other than as described in the preceding paragraph, which sets out the scope of our engagement, we did not perform assurance procedures on the remaining information included in the Consolidated Annual Report, and accordingly, we do not express a conclusion on this information.

Criteria applied by Icelandic Salmon AS

In preparing the Subject Matter, Icelandic Salmon AS applied the relevant criteria from the Global Reporting Initiative (GRI) sustainability reporting standards as well as its own defined published criteria (the "Criteria"). The Criteria can be accessed at globalreporting.org and are available to the public. Icelandic Salmon AS has also applied relevant criteria from the reporting standards of the Global Salmon Initiative (GSI). Such Criteria were specifically designed for companies and other organizations that want to report their sustainability impacts in a consistent and credible way. As a result, the Subject Matter information may not be suitable for another purpose.

Icelandic Salmon AS's responsibilities

The Board of Directors and Group Chief Executive Officer (management) are responsible for selecting the Criteria, and for presenting the Subject Matter in accordance with that Criteria, in all material respects. This responsibility includes establishing and maintaining internal controls, maintaining adequate records and making estimates that are relevant to the preparation of the Subject Matter, such that it is free from material misstatement, whether due to fraud or error.

EY's responsibilities

Our responsibility is to express a conclusion on the presentation of the Subject Matter based on the evidence we have obtained.

We conducted our engagement in accordance with the International Standard for Assurance Engagements Other Than Audits or Reviews of Historical Financial Information ('ISAE 3000'). This standard requires that we plan and perform our engagement to obtain limited assurance about whether, in all material respects,

2

the Subject Matter is presented in accordance with the Criteria, and to issue a report. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risk of material misstatement, whether due to fraud or error.

We believe that the evidence obtained is sufficient and appropriate to provide a basis for our limited assurance conclusion.

Our Independence and Quality Control

We are independent of the Company and the Group in accordance with the requirements of the relevant laws and regulations in Norway and the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements.

EY also applies International Standard on Quality Management 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services engagements, which requires that we design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Description of procedures performed

Procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained if a reasonable assurance engagement had been performed. Our procedures were designed to obtain a limited level of assurance on which to base our conclusion and do not provide all the evidence that would be required to provide a reasonable level of assurance.

Although we considered the effectiveness of management's internal controls when determining the nature and extent of our procedures, our assurance engagement was not designed to provide assurance on internal controls. Our procedures did not include testing controls or performing procedures relating to checking aggregation or calculation of data within IT systems.

A limited assurance engagement consists of making enquiries, primarily of persons responsible for preparing the Subject Matter and related information and applying analytical and other appropriate procedures.

Our procedures included:

• Interviews with key personnel to understand the business and the reporting process
• Interviews with key personnel to understand the process for collecting, collating and reporting the Subject Matter during the reporting period
• Test on a sample basis the calculation Criteria against the methodologies outlined in the Criteria

Independent accountant's assurance report – Icelandic Salmon AS 2024

• Analytical review procedures of the data
• Comparison, on a sample basis, of data with the underlying source information
• Comparison of the presentation of the Subject Matter with the presentation requirements outlined in the Criteria.

We believe that our procedures provide us with an adequate basis for our conclusion. We also performed such other procedures as we considered necessary in the circumstances.

3

We have performed these procedures on the following indicators that also form the scope of our conclusion:

GRI / GSI	Custom
GRI 303-5	Certification of marine ingredients in fish feed
GRI 305-1	Certification of soya ingredients in fish feed
GRI 305-2	Forage fish dependency ratio (FFDR) for fish meal
GRI 305-3	Forage fish dependency ratio (FFDR) for fish oil
GRI 305-4	Biological feed conversion ratio
GRI 403-9	B-analysis benthic score ≤ 2
GRI 403-10	Fresh water intensity (liter per kg produced)
GSI Fish Mortality
GSI Antibiotic Use
GSI Wildlife interactions
GSI Fish Escapes
GSI Certifications

Independent accountant's assurance report – Icelandic Salmon AS 2024

Conclusion

Based on our procedures and the evidence obtained, we are not aware of any material modifications that should be made to the Subject Matter as for the year then ended in order for it to be in accordance with the Criteria.

4

Trondheim, 22. April 2025 ERNST & YOUNG AS

The assurance report is signed electronically

Christian Ronæss State Authorised Public Accountant

Independent accountant's assurance report – Icelandic Salmon AS 2024

3 CORPORATE GOVERNANCE

CORPORATE GOVERNANCE ICELANDIC SALMON AS

Corporate governance at Icelandic Salmon 49
Group management 54
Board of Directors 55
Board of Directors' statement 2024 56

« Back to Contents « Chapter start Next chapter » 48

CORPORATE GOVERNANCE AT ICELANDIC SALMON

Icelandic Salmon AS ("Icelandic Salmon" or "the Group") is dedicated to maintaining a high standard of corporate governance. The Board of Directors acknowledges the crucial role of corporate governance in safeguarding the interests of all stakeholders. The Board is responsible for ensuring that Icelandic Salmon is organised, managed and operates in accordance with applicable laws and regulations, while upholding high standards of corporate governance.

Corporate governance at Icelandic Salmon is based on the following principles:

• » All shareholders shall be treated equally.
• » Icelandic Salmon shall maintain open, relevant and reliable communications with its stakeholders, including shareholders, public authorities and the general public, on matters relating to its business.
• » Icelandic Salmon Board of Directors shall have good understanding of the group's industry, values and day -to-day activities within the company operation. Icelandic Salmon's Board of Directors shall have a good understanding of the Group's industry, values, and day-to-day activities within the company operation.
• » Icelandic Salmon shall clearly allocate roles and responsibilities between the Board and management.

Icelandic Salmon shares are listed on the EURONEXT Growth in Oslo and NASDAQ First North in Reykjavík. The Norwegian Code of Practice for Corporate Governance ("the Code of Practice") does not apply for EURONEXT Growth Oslo. However, with the Group's ambition to uphold high standards in terms of corporate governance, the code is used as a framework for this report. The Norwegian Code of Practice for Corporate Governance, which was last revised on 14 October 2021, may be found at www.nues.no.

Corporate social responsibility

The Group acknowledges its role as an employer, producer, supplier of nutritious food, user of the environment and administrator of financial and intellectual capital. Social responsibility is integrated in daily operations, with further details on this described in the sustainability report, included in the Board of Directors report.

Business and purpose

Icelandic Salmon is the parent company of Arnarlax ehf., one of Iceland's leading producers of farmed salmon. At the end of 2024, the Group held licenses for 23.7 thousand tonnes MAB in Iceland and harvested 11.7 thousand tonnes of salmon.

The Group has followed a long-term growth strategy since 2020, following a successful capital increase. Central to this growth strategy was increased smolt production. By the end of 2024, the Group owned four smolt facilities. Three are in operation, while the fourth is being prepared for smolt production and is planned to start production in first half of 2025. The Group received an increase of license in one of its smolt facility, Gileyri, for 800 tonnes in January 2024. This increase from a 200 tonnes license to a 1,000 tonnes license was an important step for the Group to prepare for further growth and creates an opportunity to expand the smolt facility.

The growth strategy is to maximise utilization of MAB within current licenses and expand capacity to obtain critical mass to secure competitiveness in the global market. Furthermore, the Group has expanded its licenses and received new licenses of 10,000 tonnes in Ísafjarðardjúp on three new sites for sterile salmon production. Due to ruling from Environmental and Natural Resources Board of Appeal, where it is stated that Icelandic Food and Veterinary Authority (MAST) did not provide a comprehensive weighted assessment of the potential increased risk of spread of fish diseases and parasites before issuing a license to the Group, the license was revoked. Icelandic Salmon has initiated a process to have the licences reissued.

Icelandic Salmon's objective has been defined as follows:

"The objective of the Group is production, processing and sale of seafood and seafood-based products, as well as conducting other business in connection with these purposes, including through investments and ownership in other companies with same the purpose"

The Group regularly assesses its objectives and goals through reviews conducted by the Board and senior management. This evaluation typically takes place during the Group's long-term forecasting, market analysis, and industry development reviews. If necessary, adjustments are made to ensure the most effective strategies for addressing upcoming challenges.

Arnarlax ehf.

Arnarlax acquired full ownership of Eldisstöðin Ísþór (Ísþór) in May 2022, securing full control over smolt production at the Ísþór facility. This acquisition has increased flexibility in smolt production, both in volume and smolt size, increased optimalisation of MAB capacity in sea phase, shortened production time at sea, and strengthened biological risk management.

Ísþór currently holds an 1,800 tonnes MAB license for smolt production and has a production capacity of 3.3-4.0 million smolts annually, with average weights of 130-700 grams.

Acquired in 2021, Fjallalax ehf. (Fjallalax) is a smolt facility with access to geothermal water. Originally built for Arctic Char, it was converted for salmon smolt production, with renovations completed in 2022. The upgrades at Fjallalax were important for the Group's growth strategy to increase smolt production. Fjallalax holds a 100 tonnes MAB license for smolt production and has an annual production capacity of 1.3 million smolts. The smolts are transferred from Fjallalax to Ísþór and Laxabraut 5 for further production of large smolt and post-smolt.

Eldisstöðin Ísþór ehf. Fjallalax ehf. Icelandic Salmon ehf. Arnarlax Europe ApS

A subsidiary of Arnarlax with no current operations. The company was originally intended as a sales arm, but these plans were never realised. The Group retains ownership of the company primarily to preserve rights to the name.

Established in November 2024 to comply with new EU Customs rules, effective from 4 December 2024. These regulations require a confirmed buyer for shipments to Europe. Arnarlax Europe ApS ensures flexibility for in-transit sales, allowing sales opportunities during transport and preventing fresh fish from being stranded in Iceland.

Code of conduct, values, and social responsibility

The Board reviews and approves the Group's ethical guidelines annually, most recently in January 2025. The guidelines apply to all within the Group, including employees, the Board of Directors, and representatives acting on behalf of the Group or its subsidiaries.

The purpose of the ethical guidelines is to ensure a healthy corporate culture and safeguard the Group's integrity by helping employees to comply with standards for good business practice. The guidelines also serve as a tool for self-assessment and further development of the Group's corporate identity.

The Group's ambition is:

"Premium Salmon – Crafted with Passion, by nature"

This ambition drives the Group to focus on farming salmon on the salmon's terms and work tirelessly to be outstanding at all levels and in all aspects of production.

The operative business has two clear strategic goals, which form the core of the Group's strategic foundation:

"(1) Sales shall secure the best possible price, and (2) fish farming shall be unbeatable on cost – best for operational efficiency"

Overarching all business operations and actions is the Group's vision, which is the following:

"Sustainability – it's in our nature"

This vision implies that all decisions related to production will be made based on the Group's vision. The fish will be farmed in conditions most conductive to their wellbeing. The Group believes that the best biological results will pave the way for the best financial results, premium product quality and thus safeguard the Groups position as a sustainable salmon producer.

The Group has a set of tenets that describe desired behaviours and a shared understanding of how employees should behave to build a good corporate culture. Through Arnarlax Academy, all employees are encouraged to pursue development opportunities while receiving an introduction to the Group's principles and ethical guidelines. The tenets are:

1. "Quality in everything we do"

This means that the Group's processes must continuously be developed and improved to fulfil its vision of delivering sustainable Icelandic Salmon from the Westfjords. The Group achieves this by maintaining high standards and ensuring that all processes are implemented to ensure the quality of the jobs, and through that securing a good quality of the product.

2. "Teamwork makes us stronger"

This means that the Group has an open culture where everyone can express their opinion and through that, improve work processes within the Group. This enables improvements and good working environment.

3. "We care"

Meaning that all employees must care about the people around them and the job they do. Employees must live by values rooted in a sense of responsibility, consideration and ambition. This will have a positive impact on the Group biological, financial, health safety and environmental performance as well as relation with the society at large. The Group has a presence in five local communities and its employees are multicultural from all over the world. The Group is therefore aware of the diverse nature of its social responsibilities as an employer, producer and a user of the natural environment.

Equity and dividend

As of 31 December 2024, the Group's equity totalled EUR 149.8 million which corresponds to an equity ratio of 56.9 per cent. The Board considers Icelandic Salmon's capital structure to be adequate in relation to the Groups objectives, strategy and risk profile.

Icelandic Salmon aims to provide shareholders with a competitive return on invested capital by creating value through share price appreciation over time. The Group has not paid any dividends to its shareholders, and no decisions nor dividend policy have been made regarding dividend payments while the Group focuses on its growth strategy.

The Group is committed to maintain a strong financial position, ensuring a consistently strong balance sheet and adequate liquidity reserve to meet upcoming obligations. The Group follows three primary long-term financial targets linked to its net interest-bearing debts (NIBD), EBITDA and equity.

The Group has not issued any increased share capital and no approval from the Annual General Meeting (AGM) has been issued for any additional share issues.

The Board of Directors

The Group has an active Board of Directors with a prescheduled meeting agenda throughout the year. According to the articles of association, the board must consist of 3-7 board members, with election of members at the AGM for a two-year period. The current Board of Directors is comprised of five members elected by the AGM for a two-year period. All members of the Board of Directors are representatives of the Group's shareholders.

At the Annual General Meeting (AGM) held 21 May 2024, it was confirmed that all board members elected at the 2023 AGM were appointed for a two-year term. They were therefore not up for election in 2024.

Authorisations granted to the Board of Directors are normally time-limited, valid only until the next AGM, and no later than June of the following year. At the AGM on 21 May 2024, no authorisation was granted for increasing the Group's shares capital. Next AGM is scheduled to be held on 18 June 2025.

Further information about members of the Board of Directors can be found in chapter Board of Directors.

Shareholder equality and transactions with closely related parties

As of 31 December 2024, Icelandic Salmon did not possess any treasury shares. Transactions involving treasury shares must be executed on the stock exchange or through other means at the listed price on the transaction date. In instances of significant transactions involving closely related parties, the Group is obligated to make use of valuations and assessments provided by an independent third party. Should a capital increase occur based on an authorisation by a general meeting of shareholders, where the existing rights of shareholders are waived, the reason for this action will be disclosed in a public announcement at the time of the capital increase.

Icelandic Salmon's ethical guidelines address insider trading, outlining the expectations for employees regarding loyalty, conflicts of interests, confidentiality, and guidelines for trading the Group's shares. The guidelines ensure that no party's ability to own, trade, or vote for shares is restricted.

Icelandic Salmon's Communication and Information Policy sets guidelines for all internal and external communications. The policy is applicable to the members of the Board of Directors, as well as to executive officers and employees, in addition to those of its subsidiaries where applicable.

Icelandic Salmon's Insider Policy ensures equal access for all market participants to timely, accurate, and reliable information regarding the Group. Additionally, the policy is designed to build confidence that the Group's handling of information, including insider information, consistently complies with applicable legal requirements.

The Group's Compliance Officer reports directly to the Group's Board of Directors. The Compliance Officer must have unrestricted access to both the Board of Directors and Chief Executive Officer (CEO) or any other employee of the Group for the purpose of acquiring information, conveying observations, conducting assessments, and presenting findings. The Groups compliance officer is Stefán Orri Ólafsson.

The Insider Policy explicitly states that all employees are required to notify their line manager or the Compliance Officer if they find themselves in a situation where they hold a material direct or indirect interest in a transaction or other matter involving the Group.

Employees of the Group are prohibited from giving or accepting personal benefits or gifts that could influence any action or decision. It is the employee's duty to disclose any benefits received from business partners or third parties in connection with their employment.

Unrestricted transferability

All shares in Icelandic Salmon have equal rights. Each share has a face value of EUR 0.96 and holds the entitlement to one vote. The shares of Icelandic Salmon can be freely traded on both the EURONEXT Growth Stock Exchange and NASDAQ First North Stock Exchange. The Group's articles of association contain no restrictions on the ownership, trading or voting rights of the shares, provided that compliance with insider trading regulations is maintained.

General meeting of shareholders

The Group's highest decision-making body is the General Meeting of Shareholders. According to the Group's articles of association, the General meetings are open to participation by all shareholders and the Annual General Meeting must be held before the end of June each year. The 2025 Annual General Meeting is scheduled to be held on 18 June 2025.

In accordance with the Group's articles of association, documents relating to topics addressed in general meeting of shareholders may be accessible to all shareholders on the Group's website www. Arnarlax.is. Shareholders may still, free of charge, request a copy of documents concerning matters to be considered at the general meeting.

The Board determines the agenda for the meeting, and the main issues to be dealt with by the AGM are regulated by the Group's articles of association.

Risk management and internal control

The Board is responsible for ensuring that the Group's risk management and internal control system are adequate in relation to the regulations governing the business. The Group's systems and procedures for risk management and internal control are intended to ensure efficient operations, timely and correct financial reporting, as well as compliance with the legislation and regulations to which the Group is subject. The Board performs an annual review of the Group's risk management and corporate governance.

Internal control of financial reporting is achieved through day-today follow-up by management and process owners and supervision by the Audit committee. Non-conformances and improved opportunities are followed up and corrective measures implemented. Financial risk is managed by a central unit at the head office, and, where appropriate, considerations is given to the use of financial hedging instruments.

Follow-up and control of compliance with the Group's values and code of conduct take place in the line as part of day-to-day operations. The Group maintains a Directors and Officers Liability insurance on behalf of the members of the Board of Directors and the CEO. The insurance also covers any employee acting in a managerial capacity. The insurance policy is issued by a reputable insurer with an appropriate rating and has a limit of liability of NOK 100 million.

Audit committee

Icelandic Salmon's subsidiary, Arnarlax ehf., is recognised as a public interest entity in Iceland. As a result, the Group was required to have in place an audit committee for Arnarlax ehf. The committee's responsibilities relates to Arnarlax ehf., both publicly and according to the committee's mandates. However, due to the Group's structure, the committee also undertakes assignments related to Icelandic Salmon.

The committee's key tasks are to prepare the Board's follow-up of the financial reporting process, monitor the Group's internal controls and routines, as well as to maintain an ongoing dialogue with the Group's auditors.

According to the committee's mandate, the committee must comprise a minimum of three persons elected by the Board of Directors annually. All members of the committee shall be independent from the Group's auditors, and the majority of the committee shall be independent of the Group. Additionally, the Chair of the committee shall be independent of the Group.

As of 31 December 2024, the audit committee (AC) comprise the following members:

• » Tonette Bjørgård (AC Chair)
• » Ulrik Steinvik (AC member)
• » Erik Bjarnason (AC member)

The audit committee is required to hold five meetings each year. In 2024, the committee held six meetings. The majority of the audit committee members are considered to be independent from the Group.

Information and communication

Communication with shareholders, investors and nearby community is a priority for the Group. The objective is to ensure that the financial markets and shareholders receive correct and timely information. All shareholders have access to the same financial information of the Groups operations and all public information are published on the Group's webpage. All notices sent to the stock exchange are also made available on the Groups website www.arnarlax.is.

The Group follows strict Communication and information Policy where guidelines for all internal and external communications are followed, ensuring consistent messaging within the Group to establish effective communication with external stakeholders.

The Group holds an open investor presentation in association with the publications issued of the year-end and interim results each quarter. The presentations are open to all and proved an overview of the Group's operational and financial performance as well as an overview of the Groups operations. These presentations are also made available on the Group's website. The Group keep good communications to the nearby community with regular information and updates as requested by the municipality in the area where the Group operates. The Group has active dialog as well with the authorities as part of day-to-day activities.

Takeovers

Icelandic Salmon has implemented guidelines to protect shareholder interests and ensure fairness during takeover processes. The Board of Directors is committed to maintaining transparency, independence, and impartiality by providing all relevant information to help shareholders make informed decisions. Any defensive actions or significant transactions related to a takeover will require prior approval from shareholders, and independent valuations will be conducted to address potential conflicts of interest.

The Board will not take actions to block or delay a takeover bid involving the Group's operations or shares. In such circumstances, the Board will adhere to applicable laws and regulations, ensuring all shareholders are treated equally and that the Group's operations remain stable.

Auditor

The Board of Directors appoints the Group's auditor. The auditor shall draw up a plan for the execution of their auditing activities and the plan shall be discussed by the Audit Committee. Auditors shall hold at least one meeting each year with the Board of Directors at which no representatives of the Group's management are present. The auditors attend the board meeting at which the year-end financial statements are considered.

The auditor is invited to Audit Committee meetings and shall there inform the committee of remuneration payable to auditor, divided between auditing and other service component. The Audit Committee reviews internal controls with the auditors after interim or annual audits, addressing any weaknesses and recommending improvements. This assessment is shared with the Board of Directors. The Audit Committee Mandate includes guidelines to ensure the independence of external auditors and outline the parameters for non-auditing services auditors may provide to the Group or subsidiaries.

GROUP MANAGEMENT

Icelandic Salmon management team consists of eight individuals, including three women and five men, all with extensive industry experience.

The team works closely with SalMar, the Group's largest shareholder and one of the world's leading producers of farmed salmon, using their collective expertise to drive the Group's growth.

As of 31 December 2024, the Group's management team included the following members:

Bjørn Hembre CEO

Rúnar Ingi Pétursson COO of Harvest Plant

Jónas Heiðar Birgisson CFO

Linda Björk Gunnlaugsdóttir CSO

Rolf Ørjan Nordli COO of Biology

Silja Baldvinsdóttir Quality Manager

Karen Ósk Pétursdóttir HR Manager

Hjörtur Methúsalemsson BD Manager

BOARD OF DIRECTORS

Leif-Inge Nordhammer Chairman of the board

Mr. Nordhammer was the CEO in SalMar from 1996 to 2016, with a hiatus from 2011 to 2014. He is board member of Kverva AS, SalMar ASA and Chairman of Scottish Sea Farms Ltd. He has extensive experience from leadership positions from several companies within aquaculture and has been a part of the industry since 1985. Former companies include Sparebank 1 Midt-Norge, E Boneng & Sønn, Frøya Holding AS and Hydro Seafood AS. Nordhammer has educational background for the Norwegian Armed Forces, Trondheim Business School and University in Trondheim. Nordhammer also seved on the board of directors of Icelandic Salmon from 2016-2019.

Citizenship: Norwegian Independent: No

Espen Weyergang Marcussen Member of the Board

Mr. Marcussen has been the CEO of Pactum AS since 2017. Prior to this, he served as the deputy CEO of the shipping company Bergshav. He has also long experience from investment banking with combined 17 years at Handelsbanken and Nordea. Marcussen holds a siviløkonom degree from the Norwegian school of economics (NHH).

Gustav Witzøe Member of the Board

Gustav Witzøe joined the board of directors in June 2023. Mr. Witzøe is the co-founder of SalMar ASA. He holds a degree in engineering. After several years as an engineer he co-founded BEWI AS, a company producing styrofoam boxes for the fish farming industry. Mr. Witzøe held the position as managing director of BEWI AS until 1990. Since Mr. Witzøe founded SalMar ASA in 1991 he has gained extensive experience in fish farming and processing.

Kjartan Ólafsson Member of the Board

Mr. Ólafsson has served as the chairman of the board of directors since 2013. He has a MSc in Fishery Science from the University of Tromsø with emphasis on economy and finance. Further, he is founder and managing director of Markó Partners, an Icelandic Seafood advisory boutique.

Ulrik Steinvik Member of the Board and member of Arnarlax Audit committee

Steinvik started in the position as SalMar CFO in October 2021, prior to this he has held several leading positions in the executive management of SalMar. Mr. Steinvik holds the title as Norwegian state authorised public accountant. Before Steinvik joined SalMar in 2006 he served with Arthur Andersen Norway and Ernst & Young AS from 1998 to 2006. He graduated from the Norwegian School of Economics and Business Administration in 2002.

Citizenship: Norwegian Independent: No

Citizenship: Norwegian Independent: Yes

Citizenship: Norwegian Independent: No

Citizenship: Icelandic Independent: Yes

BOARD OF DIRECTORS' STATEMENT 2024

Going concern

The Board of Directors is of the opinion that Icelandic Salmon will be able to continue its business in the foreseeable future and hence confirms that the annual financial statements for 2024 have been prepared on a going concern basis and as this assumption is appropriate at the date for the accounts. In the Board's opinion, the Group's financial position is satisfactory to fulfil its obligations.

Group overview

Icelandic Salmon AS is the sole owner and parent company of Arnarlax ehf. Icelandic Salmon AS inclusive its subsidiaries, and is referred to as the "Group" or "Icelandic Salmon" throughout the report. All operational activities in the Group are performed through Arnarlax ehf. and its subsidiaries.

Icelandic Salmon's shares are listed on EURONEXT Growth in Oslo and NASDAQ First North in Reykjavík, traded under the ticker symbol ISLAX. The Group's organisational structure ensures a wellestablished and fully integrated value chain for the Group, where it maintains control over every step of the process. The Group procures eggs for its hatcheries, produces its own smolt, has seawater net pen production, operates a harvesting plant, and sells and distributes sustainable Icelandic Salmon in Europe, North America and Asia.

The Group's salmon harvesting facility in the Westfjords region is a key operational asset in the Group's value chain, with a total harvesting capacity of 30.0 thousand tonnes per year. In addition, the Group operates four smolt facilities and a sales department.

Financial results

The Group's consolidated operating revenues of EUR 101.5 million in 2024, compared with EUR 164.8 million in 2023, representing a 38.4 per cent decrease. Harvesting decreased from 17.9 thousand tonnes in 2023 to 11.7 thousand tonnes in 2024. Icelandic Salmon did not harvest for third party in 2024, compared to 2.9 thousand tonnes in the year before. For 2025, the Groups volume guidance is at 15.0 thousand tonnes.

Icelandic Salmon harvested volume were low in the first half of 2024, which was partially driven by biological challenges related to high lice levels at one of the Group sites at end of 2023. As a result at the time, it was decided to harvest out significant volume earlier than planned, leading to lower harvest volume in the first half of 2024. Following a summer of limited harvest, the group ramped up harvest volume in the second half of the year where harvest volume went over 8.2 thousand tonnes.

The Group experienced unusually high number of biological challenges that affected the year end operational results. The high mortality in relation to high lice levels in 2023 affected the harvesting volume in 2024, impacting the operational results for the year. Additionally, mortality caused by pathogens like Parvicapsulose, Tenacibatilum, and BKD in the first half of 2024 also had significant impact on the Group's results and the volume guidance for 2025. Furthermore, the Group experienced high mortality in one of its smolt facilities, which further affected the operational results for the year.

The operational EBIT, as defined in the consolidated financial statements, was a negative EUR 5.9 million in 2024, compared to a positive EUR 20.3 million the year before. For 2024, this corresponds to a negative operational EBIT of 0.5 per kg harvested fish, compared to an operational EBIT 1.13 per kg harvested fish the year before. The EBIT per kilo harvested fish was down due to high-cost levels in relation to biological challenges described above.

The price of salmon (NASDAQ Salmon Index) has largely held steady compared to year before with high price levels during the first two quarters compared to the second half of the year.

In 2024, the resource tax was EUR 3.0 million, up from EUR 2.2 million the year before. The main reason for increased resource tax was due to tax discount that is lowered between years as the tax is implemented over seven-year period. The resource tax will be fully implemented in year 2026, but in year 2024 the Group paid 5/7th of the calculated tax amount.

Net financial items amounted negative EUR 4.0 million in 2024 compared to negative EUR 3.0 million the year before. Financial expenses amounted EUR 4.7 million in 2024, compared to EUR 3.6 million in 2023. During the year there was a currency gain of EUR 0.4 million, compared to currency gain of EUR 0.3 million in 2023.

The Group's net loss for the year 2024 was EUR 3.1 million compared to a net profit of EUR 8.6 million for the year 2023.

Cash flow

In 2024, net cash flow from operational activities was negative of EUR 12.6 million compared with positive cash flow EUR 40.1 million in 2023. Operational results were impacted by changes in the working capital in relations to high level of mortality within the year.

The Group continued working on building up its biological assets within the year with the goal of reaching the Group's growth projects to 26 thousand tonnes harvesting volume within few years. The Group also were affected by prior mortality resulting in reduced revenues from harvesting in 2024.

Net cash flow from investing activities was EUR 8.7 million in 2024, compared with EUR 25.1 million the year before. The primary investment activities for the year 2024 were mainly in seawater and freshwater equipment to support further increased production at sea.

Cash flow to financing activities amounted to positive EUR 18.4 million in 2024 mainly due to increase in Group facility agreement amount to EUR 21,5 million compared to negative EUR 6.7 million in the year before.

Balance sheet

The Group's balance sheet on 31 December 2024 was at EUR 263.2 million, representing an increase of EUR 25 million from the end of year 2023. Total equity was EUR 149.8 million with an equity ratio of 56.9 per cent at the end of the year, compared to total equity of EUR 152.9 million and with an equity ratio of 64 per cent at the end of the prior year.

Non-current assets increased from EUR 141.2 million at the end of 2023 to EUR 146.8 million at the end of 2024. Current assets increased from EUR 97.1 million to EUR 116.5 million at the end of 2024. The main reasons for changes in assets in the year are due to investment activities and changes on biological assets at fair value. Please see note 3.4 for changes in fixed assets and note 3.6 for information regarding changes in biological assets.

Non-current liabilities increased from EUR 62.4 million at the end of year 2023, to EUR 91.1 million at the end of year 2024. The increase was due to an increase in interest-bearing debts lease liabilities. Current liabilities decreased from EUR 23.0 million from end of 2023 to EUR 22.4 million at end of year 2024, mainly due to changes in trade payables, tax payables and increase in interest-bearing debts and current lease liabilities. Please refer to note 3.10 on interestbearing debts for further information.

As of the end of 2024, the Group's trade receivables amounted to EUR 9.5 million, and its cash and cash equivalents totaled EUR 6.9 million. With the revolving facility from the Group's loan agreement, this is considered sufficient for the Group's operations.

At the end of June 2023, the Group signed an engagement letter with DNB and Danske bank concerning a new three-year loan agreement. In November 2023, the Group signed the agreement, with the option of two one-year extensions with a term loan facility and revolving facility with DNB and Danske bank. The signed loan agreement totalled an amount of EUR 95.0 million, and an additional EUR 5.0 million overdraft facility with Arion bank. The new loan facilities replaced the Groups old loan facilities which were set to mature in June 2024.

Risk management

The Group has incorporated rigorous risk management systems and The Group has incorporated rigorous risk management systems and routines as part of its daily operations. These systems and practices monitor important risk factors across the Group's entire operation. They are also regularly assessed to ensure the Group operates in accordance with the highest quality and certification standards.

It is the Group CEO's responsibility ensuring that the Group operates in compliance with all relevant legislation and within the guidelines of each entity. Each line organisation is responsible for follow-up and control of risk factors and compliance with the Group's values and code of conduct.

Operational risk

The most significant operational risk to the Group is biological risk, as it affects growth and welfare of its fish stock, both in smolt production and at the sea pens. Despite ongoing risk mitigating measures, biological risk, such as mortality, diseases, sea lice, and winter wounds, remains. To mitigate such biological risk, the Group has focused on reducing fish density and using larger sea pens in exposed areas. As from the smolt output in 2024, all fish are vaccinated against winter wounds, and the Group also vaccinates against the viral disease ISA, which recently emerged in Iceland.

Hatchery mortality is another identified operational risk, and the

Group continuously optimises hatchery production to reduce the risk factor. The Group has implemented additional procedures to reduce the risk of disease spread at hatcheries. Several salmon diseases remain foreign to the Icelandic waters.

Maintaining a disease-free environment in the farming region and optimising fish welfare are key priorities, and fish welfare is supported through several initiatives, such as having dedicated fish health personnel and vaccination of smolt before transfer to seawater sites.

Icelandic Salmon's location in the Westfjords provides favourable conditions with lower risk. As such, the Group refrains from using antibiotics throughout the production cycle. Icelandic Salmon has also implemented standards to minimise the risk of new diseases entering the Icelandic environment to preserve the region's status.

Additional information on operational risks and mitigation measures, including the Group's commitments to fish welfare, are further detailed in the Sustainability section of this report.

Climate risk

The Group has assessed climate risks associated with extreme weather, including high winds, heavy rainfall, and prolonged dry spells, and potential rising sea temperatures. To mitigate the risks of extreme winds and waves, all sea installations have been certified to withstand the most severe conditions. When it comes to the risk of increased rainfall, the potential impact of this risk is considered minimal, as all freshwater activities are supplied by groundwater from wells. As for the risk of rising sea temperatures, the Group operates in fjords that can tolerate a temperature increase of up to 7 degrees Celsius before reaching critical levels, making the risk negligible for the group.

Further assessment about the Group climate risks can be found in note 1.4 in section 4 of this report and in the Sustainability section.

Financial risks

The Group's internal control process provides reliable and transparent financial reporting, ensuring that the Group achieves its strategic objectives whilst complying with laws and regulations. Monitoring financial risk is part of the Board's ongoing risk management work, the effectiveness of which is reviewed annually.

The Group finalised its internal protocol in 2020 and has developed additional policies to minimise the risk of incorrect financial reporting. These policies and monitored by the Group's management, ensuring that procedures are carried out as intended by all employees.

The Group has implemented several procedures and controls to prevent and detect any fraud risks, hereunder financial misreporting, or any other type of financial fraud. The primary responsibility for prevention and detection of fraud rest with the Senior management and Audit Committee.

A further overview of financial risks, interest rate risk, foreign exchange risk, credit risk and liquidity risk are included in note 4.1 in section 4.

Market price risk

The salmon market price is a risk to the Group as its revenues are based on the sale of salmon. The Group's profitability and cash flow are hence strongly correlated with the price of salmon.

To mitigate its potential impact, the Group constantly considers potential cost reductions. The Group also regularly evaluates ways in which to sell a proportion of its stock at a fixed price, which would minimise the risk of fluctuating prices but also pose the risk of the Group not benefitting from high spot market prices.

The exchange rate affects the profitability of the Group, as strong local currency makes export more expensive, while a weaker currency increases the cost of imported goods in other currency than the Group's operational currency. To reduce the risk stemming from currency fluctuations, the Group now hedges all fixed price contracts in other currencies than the operational currency. The Group also strives to maximise the share of purchasing contracts in EUR, the Group's operational currency.

Potential changes in government regulation and tariffs can impact the price of salmon. Tariffs can disrupt the supply chain and lead to higher prices for customers. This is considered a threat to direct sales and may influence the Group's supply chain. Management maintains ongoing discussions with authorities to stay informed and be able to act swiftly on any regulatory changes. The Group has a good and open dialogue with authorities in Iceland, who share our ambition of growing a sustainable aquaculture industry in Iceland.

Credit risk

The likelihood of a counterparty lacking the financial means to fulfil its obligations to the Group is deemed minimal, and he Group's incurred losses from defaulting debtors have been low historically. The Group has established strict guidelines ensuring that transactions are conducted solely with customers who have a good payment track record and who's outstanding balances remain within specified credit limits. As a precautionary measure, the Group has implemented a routine that secures credit insurances.

The Group has no material credit risk associated with individual counterparties or groups of counterparties.

Liquidity risk

Liquidity risk can be a concern for Icelandic salmon farmers because they are heavily dependent on the export market and salmon farming industry is capital-intensive. Salmon sales can be affected by market fluctuations, which can then have a significant impact on cash flow and liquidity.

Additionally, the industry's dependence on international markets for the sale of its products makes it vulnerable to factors such as changes in exchange rates, geopolitical tensions, and global economic conditions. These factors can impact the demand and prices of salmon, which in turn affects revenues and liquidity.

To address liquidity risk, the Group has implemented various mitigating measures. One such measure involves optimising the cash conversion cycle, while another involves purchasing credit insurance for all customers. The Group regularly updates its liquidity forecasts, which are shared with both management and the Board of Icelandic Salmon. By closely monitoring these forecasts, the Group is better equipped to identify and address any potential threats to its liquidity position in a timely manner.

Climate and environment

Icelandic Salmon's vision, "Sustainability it's in our nature", demonstrates the Group's commitment to corporate responsibility through profitable and sustainable operations. Sustainable operations are essential for the Group's license to operate in the Atlantic Ocean surrounding Iceland, and hence underpins the Group's strategy and adherence to strict quality standards.

The Group is subjected to climate and environment reporting requirements under section 2-3 and 2-4 of the Norwegian Accounting Act. See the Sustainability section of this directors' report for details.

SalMar ASA owns 52.48 per cent of the shares in Icelandic Salmon, making it a subsidiary of SalMar. As part of SalMar's reporting requirements under the Sustainability Reporting Directive (CSRD) and the applicable European Sustainability Standards (ESRS), SalMar publishes a statement on the EU Taxonomy (ESRS E1), which includes an assessment of Arnarlax's activities. While Arnarlax does not publish its own EU Taxonomy statement, it complies with Icelandic law by referring to SalMar's EU Taxonomy statement.

Environmental policies

The Group believes that salmon farming is one of the most environmentally friendly ways to produce animal protein, with minimal land use, low freshwater consumption, and lower greenhouse gas emissions compared to other animal proteins. Icelandic Salmon is committed to its environmental impact through strict environmental practices and policies, including compliance with local and international laws, ASC regulations, escape prevention, optimising feed ratios, reducing organic waste, using eco-friendly products, and recycling materials. Further details on the Group's environmental policies and practices can be found in the Sustainability section, under the Environment chapter of this report.

Employees, work safety and local support

The Group works systematically to safeguard its employees' health, safety and working environment. The aim is to prevent work-related injuries, illness, and accidents. All such incidents are registered and reviewed by the board frequently. Read more about how the Group is committed to safeguarding its employees and the results of this work in the Sustainability section, under the People & Society chapter of this report.

To strengthen the culture and encourage employees to develop, Icelandic Salmon supports participation in education and courses provided by the Group or external education. Read more about this work in the Sustainability section, under Empowering and Engaging our Team chapter of this report.

The Group priorities safeguarding biodiversity, using eco-friendly farming methods, and supporting local communities in rural areas in which it operates. Icelandic Salmon actively contributes to cultural, youth, and sport activities. Read more about our commitment in the Sustainability section, under the Society chapter of this report.

Equal opportunities, diversity and inclusion

The Group is committed to obtaining an inclusive business where all forms of diversity are encouraged. To reach its goals, the group prioritises attracting top talents and ensuring equal opportunities for all, irrespective of race, gender, religion, national origin, disability, or other personal characteristics.

In 2024, Icelandic Salmon employed 158 full-time equivalents (FTEs) from 15 different nationalities, maintaining a stable workforce compared to 167.5 FTEs in 2023. The team included 46 women and 134 men, implying a gender ratio of 26 per cent female and 74 per cent male. At executive management level, the female ratio was 38 per cent in 2024. The Group is committed to increase female representation across its operations and in management roles in the coming years and is actively pursuing the recruitment of more women. Read more about our commitment to diversity in the Sustainability report section, in the Workforce chapter of this report.

Human rights and anti-slavery

The Group upholds human rights and anti-slavery principles with a zero-tolerance policy for violations, following international standards. This commitment extends to the Group's suppliers.

In late 2023, Icelandic Salmon took a significant step on transparency by publishing its Human Rights Policy and Whistleblowing Policy on its website, emphasizing its dedication to protect all individuals in the value chain. Read more about the subject in the Material Assessment and the Society parts in section 2 of this report.

Transparency act

In response to the Norwegian Transparency Act and anticipated EU regulations, the Group is actively ensuring sustainable practices throughout its supply chain and seeks to uphold the highest standards on guidelines for human rights due diligence. With support from its parent company, SalMar, the Group has conducted comprehensive evaluations of its suppliers to meet the requirements of the Norwegian Transparency Act. Icelandic Salmon stands committed to upholding responsible and sustainable practices, and a statement of the 2024 assessment will be available on the Group's website."

Intangible resources

The Group is fundamentally dependent on intangible resources such as consumer satisfaction, reputation and brand strength in order to remain its leading market position.

Outlook

Since its foundation in 2010, the Group has established a significant presence in Iceland's aquaculture industry. While still in its early stages, the industry is experiencing rapid growth and contributing significantly to the country's export revenues. As Iceland's largest salmon producer, the Group remains focused on growth while maintaining its commitment to responsible resource management.

Leveraging optimal conditions for salmon farming in the Westfjords, the Group prioritises sustainability, efficiency, and maintaining its leading position in the market. With global demand for sustainable, protein-rich food rises, aquaculture play a crucial role, both the industry and the Group are expected to grow in the coming years.

Recent changes to Iceland's tax regime may impact innovation and investment in the local aquaculture industry, potentially limiting the growth potential and competitiveness of aquaculture in Iceland. Stable, predictable regulatory conditions are crucial for the industry, and the Group will continue to work closely with authorities to align on common goals.

Icelandic Salmon expects limited short-term growth in global supply of salmon, coupled with continued strong demand. This outlook leads the Group to maintain a positive market outlook for coming years.

The Group's strong corporate culture is built on leadership in salmon farming, dedication to high quality, focus on teamwork, and care for colleagues, customers, and the environment. Continued organisational and cultural development remains a primary priority, and the Board of Directors extends gratitude to all employees for their commitment and dedication, which will continue to drive the Group's growth.

Subsequent events

In February 2025, the Group further strengthened its financial position by reaching an agreement to extend its sustainability-linked financing agreement with DNB and Danske Bank. This extension provides additional funding of EUR 65 million, increasing the total loan facility to EUR 160 million. This funding will support operational growth and minimise any risk of delays in achieving the Group's long-term goal of reaching a harvest volume of 26,000 tonnes in the near future.

Following the balance sheet date, new tariffs imposed by the USA on imports from Iceland have been announced. The new tariffs, set at 10 per cent will take effect from April 2025. There is significant uncertainty regarding the impact of these tariffs on the Group, and The Group is actively monitoring the situation and exploring strategies to mitigate potential effects on its operations and financial performance. The tariffs are considered to be a non-adjusting event for the 2024 financial statements.

4 FINANCIAL STATEMENTS AND RESULTS

CONSOLIDATED FINANCIAL STATEMENTS 2024 ICELANDIC SALMON AS

Amounts in 1000 EUR « Back to Contents « Chapter start 61

Icelandic Salmon AS Consolidated Financial Statements 62
Notes to the Consolidated Interim Financial Statements67
Icelandic Salmon AS Financial Statements 94
Notes To Icelandic Salmon As Annual Financial Statements 98
Statement by the Board of Directors and CEO105
Independent auditor's report 106
Analytical information 109

Icelandic Salmon AS

Consolidated Financial Statements

Consolidated Statement of Comprehensive Income

In EUR 1000	Note	2024	2023
Revenue from contracts with customers	2.2, 4.6	101,455	164,816
Total operating revenue		101,455	164,816
Cost of goods sold		58,030	95,979
Salaries and personnel expenses	2.3, 2.4	18,704	19,800
Other operating expenses	2.5	17,951	19,675
Depreciation	3.4, 3.5	12,663	9,086
Total operating expenses		107,347	144,541
Operational EBIT		(5,893)	20,275
Resource tax	2.5	(3,038)	(2,195)
Onerous Contracts	3.11	653	(531)
Fair value adjustments of biomass	3.6	11,370	(4,378)
Operating profit		3,093	13,171
Financial items
Financial income	2.6	303	255
Financial expense	2.6	(4,742)	(3,568)
Net currency gain (loss)		396	337
Net financial items		(4,043)	(2,975)
Profit (loss) before tax		(950)	10,196
Income tax	2.7	2,138	1,628
Net profit (loss) for the year		(3,088)	8,568
Net profit (loss) attributable to:
Equity holders of the parent company		(3,088)	8,568
Other comprehensive income
Items which may subsequently be reclassified to profit or loss
Translation differences related to subsidiaries		0	(21)
Other comprehensive income for the year		0	(21)
Total comprehensive income for the year		(3,088)	8,547
Total comprehensive income attributable to:
Equity holders of the parent company		(3,088)	8,547
Earnings per share ("EPS"):
Basic and diluted (EUR per share)	4.3	(0.1)	0.28

Statement of Financial Position

In EUR 1000	Note	31/12/2024	31/12/2023
Assets
Non-current assets
Goodwill	3.1, 3.2	34,740	34,740
Licenses	3.2, 3.3	1,659	1,626
Property, plant & equipment	3.4	99,084	99,028
Lease assets	3.5	11,287	5,783
Other investments	4.4	7	1
Total non-current assets		146,776	141,178
Current assets
Biological assets	3.6	94,293	65,963
Inventories	3.6	2,444	3,992
Trade receivables	3.7	9,514	13,172
Other receivables	3.8, 4.1	3,293	3,800
Cash and cash equivalents	3.9	6,901	10,189
Total current assets		116,445	97,116
Total assets		263,220	238,294

Statement of Financial Position

Continued

Bíldudalur, 16 April 2025

Leif-Inge Nordhammer, Chairman of the Board

Espen Weyergang Marcussen, Member of the Board

Gustav Witzøe Member of the Board

Ulrik Steinvik, Member of the Board

Kjartan Olafsson, Member of the Board

Bjørn Hembre, CEO

In EUR 1000	Note	31/12/2024	31/12/2023
Equity and liabilities
Equity
Share capital	4.2	29,571	29,571
Share premium		88,231	88,231
Other paid-in equity		(834)	(805)
Other equity		32,826	35,887
Total equity		149,795	152,884
Liabilities
Non-current liabilities
Interest-bearing borrowings	3.10	79,500	54,500
Lease liabilities	3.5, 3.10	7,804	4,772
Deferred tax liabilities	2.7	3,761	3,130
Total non-current liabilities		91,065	62,402
Current liabilities
Interest-bearing borrowings	3.10	3,000	1,500
Lease liabilities	3.5, 3.10	3,359	894
Trade payables		6,471	8,679
Tax payables	2.7	0	2,385
Provision for onerous contracts	3.11	0	653
Other payables	3.12	9,531	8,897
Total current liabilities		22,361	23,008
Total liabilities		113,426	85,409
Total equity and liabilities		263,220	238,294

Consolidated Statement of Cash Flow

In EUR 1000	Note	2024	2023
Cash Flow from operating activities:
Profit before tax		(950)	10,196
Tax paid in the period	2.7	(3,840)	(1,055)
Adjustments to reconcile profit before tax to net cash flows:
Deprecation	3.4, 3.5	12,663	9,086
Share based payment expense	2,4	26	125
Net foreign exchange differences and other items		51	106
Gain or loss of sale of assets	3.4	0	(391)
Financial expenses (debt/borrowings and leases)	2.6	4,742	3,568
Financial revenue (interest income)	2.6	(303)	(255)
Onerous contracts	3.11	(653)	531
Change in fair value of biomass	3.6	(11,370)	4,378
Working Capital changes:
Change in inventories and biomass recognised at cost		(15,412)	14,856
Change in trade receivables and other receivables		4,165	2,830
Change in payables and other current payables		(1,692)	(3,843)
Net cash flow to from operating activities		(12,574)	40,133
Cash flow from investing activities:
Proceeds from sale of property, plant & equipment		0	495
Purchase of property, plant & equipment	3.4	(8,938)	(25,839)
Purchase of intangible assets		(32)	0
Proceeds of interest income		303	227
Net cash flow to investing activities		(8,667)	(25,117)
Cash flow from financing activities:
Proceeds from new interest-bearing debt	3.10	45,000	23,500
Repayment of interest-bearing debt	3.10	(18,500)	(25,699)
Payment of principal portion of lease liabilities 3.5		(3,443)	(981)
Paid interest (debt/borrowings and leases)	2.6	(4,658)	(3,501)
Net cash flow from financing activities		18,399	(6,680)
Net change in cash and cash equivalents		(2,841)	8,335
Foreign exchange effect		(447)	0
Cash and cash equivalents as at 1 Jan	3.9	10,189	1,854
Cash and cash equivalents as at 31 Dec		6,901	10,189

Consolidated Statement of Changes in Equity

In EUR 1000				Other equity
2023	Note	Share capital		Share premium Other paid-in equity	Restricted reserve*	Statutory reserve**	Translation differences	Retained earnings	Total equity
Equity as at 1 Jan 2023		29,571	88,600	(930)	8,971	3,527	(1,528)	16,005	144,216
Net profit for the year		0	0	0	0	0	0	8,568	8,568
Uncovered loss moved against Share premium		0	(368)	0	0	0	0	368	0
Share in subsidiaries- restrictive reserve		0	0	0	(3)	0	84	(81)	0
Statutory reserve		0	0	0	0	894	0	(894)	0
Translation difference of foreign interest		0	0	0	0	0	13	(35)	(21)
Total comprehensive income for the year		0	(368)	0	(3)	894	97	7,928	8,547
Share-based payment, expensed	2.4	0	0	125	0	0	0	0	125
Other changes		0	0	0	0	0	0	(4)	(4)
Other transactions		0	0	125	0	0	0	(4)	121
Equity as at 31 Dec 2023		29,571	88,231	(805)	8,968	4,421	(1,431)	23,929	152,884

In EUR 1000	Note			Share premium Other paid-in equity		Other equity
2024		Share capital			Restricted re serve*	Statutory re serve**	Translation differences	Retained earn ings	Total equity
Equity as at 1 Jan 2024
Net profit for the year		29,571	88,231	(805)	8,968	4,421	(1,431)	23,928	152,884
Uncovered loss moved against Share premium		0	0	0	0	0	0	(3,088)	(3,088)
Share in subsidiaries- restrictive reserve		0	0	0	0	243	0	(243)	0
Translation difference of foreign interest		0	0	0	0	243	0	(3,331)	(3,088)
Total comprehensive income for the year		0	0	(29)	0	0	0	26	(3)
Share-based payment, expensed	2.4	0	0	(29)	0	0	0	26	(3)
Other changes		0	0	0	0	0	0	1	1
Other transactions		29,571	88,231	(834)	8,968	4,663	(1,431)	20,625	149,795
Equity as at 31 Dec 2024		29,571	88,231	(779)	8,968	4,663	(1,431)	20,570	149,795

Restricted reserve*

Restricted reserve refers to restricted equity in Arnarlax ehf. (subsidiary of Icelandic Salmon). The equity is restricted until the subsidiaries of Arnarlax distribute dividend in excess of accumulated profits, which is the restricted amount, to Arnarlax ehf.

Statutory reserve**

According to the Act on Limited liability Companies No. 2/1995., at least 10 per cent of the profit of the Group which is not devoted against losses from previous years and is not contributed to other legal reserves must be contributed to the statutory reserve until it amounts to 10 per cent of the share capital. When that limit has been reached the contribution must be at least 5 per cent of the net profit until the statutory reserve amounts to 25 per cent of the share capital of relevant Company of the Group.

1.1 Corporate information 68
1.2 Basis for preparation 68
1.3 Significant accounting policies 68
1.4 Critical accounting judgements and key sources of estimation uncertainty 70

2.1 Operating Segments 71
2.2 Revenue from contracts with customers 71
2.3 Salaries and personnel expenses 72
2.4 Share-based incentive schemes 73
2.5 Other operating expenses, Resource tax and environmental fees 74
2.6 Financial income and expenses 74
2.7 Tax expense 75

3.1 Goodwill 77
3.2 Impairment77
3.3 Other intangible assets 78
3.4 Property, plant & equipment 78
3.5 Leases 80
3.6 Biological assets and inventory 81
3.7 Trade and other receivables and allowance for expected credit losses84
3.8 Financial instruments and Capital structure - Overview of financial instruments and fair value measurement 85
3.9 Cash and cash equivalents 86
3.10 Interest-bearing loans and borrowings 86
3.11 Onerous Contracts 88
3.12 Other current payables 88

4.1 Capital & Risk Management 89
4.2 Share capital and shareholders91
4.3 Earnings per share92
4.4 Group companies92
4.5 Related party transactions92
4.6 Subsequent events93

Judgements, estimates and assumptions

1.1 Corporate information

Icelandic Salmon AS (the "Company") and its subsidiaries (collectively "the Group" or Icelandic Salmon) is a publicly listed company, incorporated and registered in Norway. The address of its registered office is Industriveien 51, 7266 Kverva in the municipality of Frøya, NORWAY.

The Company's shares are listed on Euronext Growth in Norway and Nasdaq First North in Iceland. Majority of the Company's shares are held by SalMar ASA which is listed on Oslo Stock Exchange. The Ultimate Parent Company is Kvarv AS.

Icelandic Salmon is the leading salmon farmer in Iceland. The main operation of the Group is production, processing and sale of salmon and salmon-based products.

The Consolidated Financial Statements of the Group for the year ended December 2024 were approved by the Board of Directors on 10th of April 2025.

1.2 Basis for preparation

The Consolidated Financial Statements for the year ended on 31 December 2024 incorporates the Financial Statements of the Company and its subsidiaries which are collectively referred to as "the Group". The Consolidated Financial Statements of the Group comprise the Consolidated Statements of Comprehensive Income, Consolidated Statement of Financial Position, Consolidated Statement of Cash Flow and Consolidated Statement of Changes in Equity and related notes. The Consolidated Financial Statements of the Group for 2024 ending 31 December 2024 have been prepared in accordance with IFRS ® Accounting Standards as adopted by The European Union ("EU"), as well as additional disclosure requirements pursuant to the Norwegian Accounting Act.

The Consolidated Financial Statements have been prepared on a historical cost basis, except for biological assets and certain financial instruments that are measured at fair values. All figures are presented in EUR thousands (000), except when otherwise noted.

Going concern

Management have, at the time of approving the Consolidated Financial Statements, a reasonable expectation that the Group have adequate resources to continue in operational existence for the foreseeable future. Thus management continue to adopt the going concern basis of accounting in preparing the Consolidated Financial Statements.

1.3 Significant accounting policies

The Company has selected a presentation in which the description of accounting policies as well as estimates, assumptions and judgmental considerations is disclosed in the notes to which they relate. A summary of significant and other accounting policies not disclosed in the notes, are summarised below:

Presentation currency and functional currency

The Consolidated Financial Statements are presented in EUR, which is the functional currency of the Group.

The functional currency is determined in each company within the Group based on the currency within the primary economic environment of that company. Transactions in foreign currency are translated into functional currency using the exchange rate at the date of the transaction. Monetary items in foreign currency are at the end of the reporting period translated to functional currency using the closing rate. Differences arising on settlement or translation of monetary items are recognised in the Statement of Comprehensive Income. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.

Basis of consolidation

The Group's Consolidated Financial Statements comprise the Parent Company and its subsidiaries as of 31 December 2024. All subsidiaries have a reporting date of 31 December. The consolidated companies have been assessed as being controlled by the Group during the reporting period.

Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Company controls an investee if, and only if, the Company has:

• Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee)
• Exposure, or rights, to variable returns from its involvement with the investee
• The ability to use its power over the investee to affect its returns

The Company re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control.

Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary.

Intercompany transactions, balances and unrealised gains or losses on transactions between Group companies are eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

Company's within the Group

Ownership

Subsidiary	Registered office			31/12/2024 31/12/2023 Parent company	Country
Arnarlax ehf.	Strandgata 1, 465 Bíldudalur, Iceland	100%	100%	Icelandic Salmon AS	Iceland
Fjallalax ehf.	Strandgata 1, 465 Bíldudalur, Iceland	100%	100%	Arnarlax ehf.	Iceland
Eldisstöðin Ísþór ehf.	Nesbraut 25, 815 Þorlákshöfn, Iceland	100%	100%	Arnarlax ehf.	Iceland
Icelandic Salmon ehf.	Strandgata 1, 465 Bíldudalur, Iceland	100%	100%	Arnarlax ehf.	Iceland
Arnarlax Europe	Lautrupsgade 11 2100 København Ø	100%	N/A	Arnarlax ehf.	Denmark

Current versus non-current classification

An asset is current when it is:

• Expected to be realised or intended to be sold or consumed in the normal operating cycle,
• Held primarily for the purpose of trading,
• Expected to be realised within twelve months after the reporting period, or
• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in the normal operating cycle,
• It is held primarily for the purpose of trading,
• It is due to be settled within twelve months after the reporting period, or
• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Group classifies all other liabilities as non-current.

Cash and short-term deposits

Cash and cash equivalents in the Statement of Financial Position and the Statement of Cash Flows includes cash and short-term highly liquid deposits with a maturity of three months or less, that are held for the purpose of meeting short-term cash commitments and are readily convertible to a known amount of cash. and subject to insignificant risk of changes in value.

Equity and share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown as a deduction from the proceeds received. Equity is defined as any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

Statement of Cash Flows

The Consolidated Statement of Cash Flows is prepared using the indirect method.

New and amended IFRSs

In the current year, the Group has applied a number of amendments to IFRSs issued by the International Accounting Standards Board (IASB) that are mandatory for an accounting period that begins on or after 1 January 2024. Their adoption has not had any material impact on the disclosures or on the amounts reported in these Consolidated Financial Statements.

• IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures Supplier Finance Arrangements

• IFRS 16 Leases Lease Liability in a Sale and Leaseback

The adoption of the amendments stated above has not had any material impact on the disclosures or on the amounts reported in these Consolidated Financial Statements.

Non-current Liabilities with Covenants: The IASB
issues amendments to IAS 1, which affect the
presentation of liabilities as current or non-current
in the statement of financial position.
The amendments clarify:

• What is meant by a right to defer settlement
• That a right to defer must exist at the end of the reporting period
• That classification is unaffected by the likelihood that an entity will exercise its deferral right

• That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not impact its classification

• IAS 1 Classification of Liabilities as Current or Non-Current

The Group has not early adopted new standards or amendments to IFRSs that have been issued and are permitted for early adoption. The following amendments are effective from 1 January 2025:

• IAS 21 The Effects of Changes in Foreign Exchange Rates Lack of Exchangeability

• IFRS 18 Presentation and Disclosure in financial statements (Effective from 1 January 2027)

New requirements for presentation within the statement of profit or loss and new disclosure requirements on management-defined performance measures.

The Management of the Company do not expect that the adoption of the amended Standards listed above, or other issued new standards and amendments scheduled that become effective in subsequent periods, will have a material impact on the Consolidated Financial Statements of the Group in future periods.

1.4 Critical accounting judgements and key sources of estimation uncertainty

The preparation of the Consolidated Financial Statements in accordance with IFRS and applying accounting policies requires management to make judgments, estimates and assumptions about the reported amounts of assets, liabilities, revenues and expenses that are not readily apparent from other sources. The estimates and associated assumptions are based on information available when the Consolidated Financial Statements are prepared, historical experience and other factors that are considered to be relevant. Existing circumstances and assumptions may change due to the preparation of the Consolidated Financial Statements in accordance with IFRS and applying accounting policies requires management to make judgments, estimates and assumptions about the reported amounts of assets, liabilities, revenues and expenses that are not readily apparent from other sources. Existing circumstances and assumptions may change due to events arising that are beyond the Group's control. Therefore, actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Critical judgements and estimates in applying the Group's accounting policies

The following items include the most critical judgements and material estimates that, management has made in the process of applying the Group's accounting policies and that have the most significant effect on the amounts recognised in Groups Consolidated Financial Statements.

• Fair value measurement of biological assets (see note 3.6 for relevant disclosures)
• Impairment considerations of goodwill (see note 3.2 for relevant disclosures)
• Licenses (see note 3.3 for relevant disclosures)
• Right of use assets (see note 3.5 for relevant disclosures)

The Group has conducted an analysis of the impact of climate risk on its operations, as detailed in the Board of Directors´s report on risk assessment. As of the reporting date, the Group has deemed the assessed risk to be negligible.

The Group evaluates its climate risk through collaboration with SalMar, its majority owner and parent company of Icelandic Salmon. This comprehensive evaluation covers risks across the entire value chain, from the initial roe to the final plate, including risks to suppliers linked to the value chain. Key insights from the assessment reveal:

• The Group's reliance on fossil fuels for its assets, such as work boats and company vehicles, is at odds with its climate goals and faces external pressures to switch to zero-emission alternatives rapidly.
• The potential introduction of carbon taxes on imports and/or exports could significantly impact the Group financially.
• The likelihood of increased occurrences of extreme weather events, such as heatwaves and floods, may disrupt the cultivation of certain ingredients for feed production for the Group. This disruption could lead to higher costs, impacting the Group's most significant operational expense.
• Compared to other protein sources, the minimal carbon footprint of salmon farming positions it favorably against CO2-efficiency regulations and makes it an appealing choice for environmentally conscious consumers.
• Currently, there is no evidence to suggest that climate risks will significantly affect the valuation of Icelandic Salmon's assets or materially impact its operations and anticipated future cash flows Nonetheless, monitoring and assessing this issue remains a priority in the years ahead.

2. Financial results

2.1 Operating Segments

Accounting principles

An operating segment is a component of an entity:

• a) That engages in business activities from which it may earn revenues and incur expenses
• b) whose operating results are regularly reviewed by the entity's chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and
• c) for which discrete financial information is available.

The operating segments represents the business units for which the chief operating decision maker monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment.

The Group owns and operates fish farming sites in the Icelandic fjords allong with hatchery operations. The main purpose of the Group is the production, processing and sale of seafood and seafood-based products, as well as conducting other business in connection with this purpose, including through investments and ownership in other companies with the same purpose. The Group operates and manages its business as one operating segment based on the manner in which the Chief Executive Officer, the Group's chief operating decision maker, assesses performance and allocates resources across the Group. The segment reporting is therefore identical to the Group´s Consolidated Financial Statements presented in this report.

2.2 Revenue from contracts with customers

Accounting principles

The Group recognises revenue from the sale of salmon at the point in time when control of the goods is transferred to the customer. The transfer of control to the customer depends on shipping terms, but will normally occur when the goods are delivered to the customer. Other revenues from the sale of services relates primarily to the sale of harvesting services. Revenue from contracts with customers is recognised when control of the goods and the service has been transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods and/or service.

Revenues from contracts with customers are recognised in the Consolidated Statement of Comprehensive Income net of discounts. Transaction prices are fixed upfront without any variable consideration. There is no right of return and refunds are only given if delivered goods are damaged or if there is a discrepancy in delivered goods compared to agreements. The normal credit term is 21 days upon delivery to the customers. Refunded amounts have historically been immaterial.

Revenue recognised at point in time (sale of goods) and revenue recognised over time (other revenue) is as follows:

Specifications of revenue	2024	2023
Sales of goods	101,106	160,640
Other revenue	349	4,176
Revenue from contracts with customers	101,455	164,816

Disaggregated revenue from contracts with customers

The Group's revenue based on geographical markets from contracts with customers in which the revenue is earned are presented below

Group revenues by geographical market:	2024	%	2023	%
Europe	68,683	67.7%	124,833	75.7%
North America	16,887	16.6%	30,381	18.4%
Asia	15,884	15.7%	9,602	5.8%
Revenue from contracts with customers	101,455	100.0%	164,816	100.0%

The operational income for the Group is denominated in EUR. In 2024, 63 per cent of the Group's operational income was generated in EUR (2023: 64 per cent), while 33 per cent was generated in USD (2023: 26 per cent). Since exchange rate volatility can impact the profitability of salmon sales, the Group has taken steps to mitigate currency risk by hedging all fixed price contracts denominated in currencies other than the operational currency.

2.3 Salaries and personnel expenses

Salaries and personnel expenses	2024	2023
Salaries, incl. vacation allowance and bonuses	14,087	14,784
Social security and employers national insurance expenses	1,028	1,248
Pension expenses	1,812	1,801
Other benefits	1,777	1,967
Total salaries and personnel expenses	18,704	19,800
Number of full-time employees during the financial year:	157	193

Pension expenses related to defined contribution consists of expense incurred by the Group for employees that are required by local laws to participate in pension schemes. These pension schemes are not sponsored or administered by the Group. Pursuant to the requirements of the schemes, the Group is required to contribute a certain percentage of its payroll costs to the pension schemes. Such contributions are charged to the Consolidated Statements of Comprehensive Income in the period in which they incurred in accordance with the rules of the pension schemes. The Group has no further payment obligations once these contributions have been paid.

Remuneration to Group's management:	2024	2023
Bjørn Hembre, CEO	744	557
Other members of the management team	1,088	972
Total remuneration to Group's management	1,831	1,530

Remuneration to Board of Directors (BOD) :

Remuneration to members of the BOD	74	62
Total remuneration to Group's Board of Directors	74	62

All fixed-salary employees, including the Group's management, participate in a performance-related bonus scheme. The bonus is determined based on a combination of shared corporate goals and individual performance evaluations. At the beginning of each bonus period, the Board of Directors (BOD) sets the total bonus pool as a fixed percentage of the Group's Operational EBIT.

For 2024, the BOD set the total bonus amount at 2 per cent of Operational EBIT, consistent with the allocation for 2023 (2 per cent). However, as the Operational EBIT for 2024 was negative, therefore no bonuses were paid out in 2025 for the 2024 performance year.

In addition to the standard bonus scheme, the CEO and certain members of the senior executive team were granted additional performance-related bonuses:

• 2024: EUR 593.6 thousand, plus an additional EUR 68.1 thousand under the fixed salary bonus scheme.
• 2023: EUR 392.4 thousand, plus an additional EUR 171.3 thousand under the fixed salary bonus scheme.

This structure aligns incentives with the Group's financial performance and strategic objectives.

At the end of 2024 the Company's management consisted of eight personnel, five of them live in the local community near the Company's headquarters. The management, as well as other personnel, that live near the Company headquarters all pay taxes and obligations to the local municipality as laws and regulations apply. Further breakdown and information on taxes and obligations to the authorities can be found in the community footprint issued on the Company's homepage, arnarlax.is.

2.4 Share-based incentive schemes

Accounting principles

The Company operates an equity-settled, share-based compensation scheme, under which the Company receives services from Arnarlax's employees as consideration for equity instruments (stock options) of the Company. Equity-settled share based options are measured at the fair value of the equity instruments at the grant date using Black-Scholes valuation model, excluding the effect of non-market-based vesting conditions. The fair value determined at the grant date is expensed and recognised in employee benefits on a straight-line basis over the vesting period of the options with a corresponding increase in equity. At each reporting date, the Group revises its estimate of the number of equity instruments expected to vest as a result of the effect of non-market-based vesting conditions and recognises any impact in the Statement of Comprehensive Income such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to equity.

On 19 February 2021, the Company granted 205,850 share options with an exercise price of NOK 115.00, to the CEO and certain key employees. The option holders must stay in the employment of the Group over a vesting period of three years from the grant date until 19 February 2024. In April 2024 option holders got extension on their exercise period, option holders have until 19 August 2025 to exercise their option rights.

The Company has a choice of settling the options in cash or equity instruments. As of 31 December 2024, the fair value of the agreements was determined to be EUR 410 thousand. Three option holders exercised their options right during the year and one option holder forfeited his rights.

	2024		2023
	Number of shares '000	Weighted avg exercise price (NOK)	Number of shares '000	Weighted avg exercise price (NOK)
Outstanding at the beginning of period	168	115	184	115
Granted during the period	0	115	0	115
Forfeited during the period	(1)	115	(16)	115
Exercised during the period	(18)	115	0	115
Outstanding at the end of period	148	115	168	115
Average remaining contractual life at year-end		0.67		1.34

Estimate of the share options award was based on the following assumptions:

	2024
Date of award	19.2.2021
Plan	2021
Volatility	34.88%
Risk free rate	0.54%
Share price at date of award	115
Weighted average fair value on date of award	28.01
Option's lifespan	0.67
Model employed	Black-Scholes

Management and key employee's interests in the Share-based incentive scheme

			Number outstanding
		Date of grant Expiry date Key employees	Exercise price (NOK)	31/12/2024	31/12/2023
2021	2025	CEO Björn Hembre	115	100,000	100,000
2021	2025	Company's Management	115	25,800	35,800
2021	2025	Other key employees	115	22,400	31,850
				148,200	167,650

During the year 2024 the Group recognised total expenses of EUR 26.1 thousand (2023: EUR 125 thousand) related to share -based payment transactions, which are included in Salaries and personnel expenses in the statement of other comprehensive income.

2.5 Other operating expenses, Resource tax and environmental fees

Specification of other operating expenses:	2024	2023
Services, marketing and travel expenses	5,927	9,052
Operating equipment & consumables expenses	4,768	4,107
Maintenance expenses	3,079	2,632
Freight & delivery expenses	608	722
Fee expenses	582	461
Insurance expenses	452	296
Other expenses	2,534	2,406
Total other operating expenses	17,951	19,675

The Group pays fees based on the Company's licenses and production

Environmental fees

The Group pays fees to Icelandic environmental fund. The environmental fund of fish farming operates based on law no. 71/2008, on fish farming. This state-owned fund, overseen by the Ministry of Fisheries and Agriculture in Iceland and collected by the Icelandic Food and Veterinary Authority (MAST), aims to mitigate the environmental impacts of fish farming activities. As part of its commitment, the Group, like all operational permit holders for fish farming in Iceland, paid a total of EUR 0.6 million to the fund in 2024, compared to EUR 0.6 million in 2023. The fee calculation is standardised at 20 SDR per ton of the Group's license, applicable even if the utilisation of the license remains untapped. Environmental fees are included in the cost of goods sold.

Resource tax (Resource fee)

The Group pays fees to aquaculture fund categorised as Resource tax. Fees to aquaculture is based on law no. 89/2019 on fees for fish farming in the sea. The Directorate of Fisheries shall assess and charge the fee amount in accordance with guidelines laid down in the 2nd article of the same law.

According to a temporary provision of the law, the fee amount was 4/7th of the calculated fee in 2023 and 5/7th in 2024. The fee is calculated out from the preceding year's average NASDAQ prices, as directed by the Directorate of Fisheries. The tax rate, tied to NASDAQ averages, remained at 4.3 per cent in 2024 as in 2023, calculated against the harvested volume of head-on-gutted fish (HOG) weight.

For the year 2024, the Group's resource tax was calculated to EUR 3.0 million compared to EUR 2.2 million in 2023. To highlight the performance of underlying operations before deduction of the Resource tax, the Group has chosen to report it on a separate line in the Statement of Comprehensive Income below Operational EBIT.

Auditor:

The remuneration (excl. VAT) paid to the Group's auditors breaks down as follows:

2024	Deloitte	EY	Total
Statutory audit service	244	38	282
Assurance services and other services	55	28	83
Total	299	65	365
2023	Deloitte	EY	Total
Statutory audit service	3	247	250
Assurance services and other services	0	108	108
Total	3	355	358

Remuneration paid to the Group's auditors are included in other operating expenses in the Statement of Comprehensive Income.

2.6 Financial income and expenses

Financial income	2024	2023
Interest income	303	255
Total financial income	303	255
Financial expenses	2024	2023
Interest expenses on debts and borrowings	4,152	3,342
Interest expenses on lease liabilities	590	226

2.7 Tax expense

Accounting principles

Deferred tax assets are recognised when it is probable that the relevant tax entities will have a sufficient profit for tax purposes in subsequent periods to utilise the tax asset or when there are taxable temporary differences that will reverse in future periods. The companies recognise previously unrecognised deferred tax assets to the extent that it has become probable that the company can utilise the deferred tax asset. Similarly, the Company will reduce a deferred tax asset to the extent that the Group no longer regards it as probable that it can utilise the deferred tax asset.

Deferred tax and deferred tax assets are measured based on the expected future tax rates applicable to the companies in the Group where temporary differences have arisen.

Deferred tax assets and deferred tax are recognised at their nominal value and classified as non-current assets and long-term liabilities in the Statement of Financial Position.

Taxes payable and deferred taxes are recognised directly in equity to the extent that they relate to equity transactions.

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits, together with future tax planning strategies.

Tax expense Consolidated Comprehensive Income	2024	2023
Tax payable	0	2.385
Change in deferred tax	(279)	(580)
Effect of change of tax rate in Iceland *	(155)	109
Translation differences	(51)	(287)
Adjustment for tax of prior periods	2.623	0
Tax on ordinary profit	2.138	1.628
Current income tax expense:	2024	2023
Change deferred tax/deferred tax assets (ex. OCI effects)	2,138	1,628
Total current income tax expense	2,138	1,628
Tax rates applied	2024	2023
Norway	22%	22%
Iceland	21%	20%
Reconciliation deferred tax (liabilities)/assets	2024	2023
Deferred tax assets recognised in the Consolidated Statement of Financial Position at 1 January	(3,130)	(3,576)
Tax recognised in the Consolidated Statement of Comprehensive Income	(2,138)	(1,628)
Effect on deferred tax assets due to joint taxation within the Group**	1,115	0
Tax payable	0	2,385
Translation differences and other changes	393	(312)
Deferred tax (liabilities) recognised in Consolidated Statement of Financial Position 31 December	(3,761)	(3,130)

*From 21 per cent to 20 per cent in 2024 (from 20 to 21 per cent in 2023)

**In 2024 Arnarlax ehf. were granted group tax relief with its Subsidiary, Eldisstöðin Ísþór ehf. effective for fiscal year 2023. Utilization amounts EUR 5.5 million of carry forward loss was utilized against the 2023 Group's tax profit. The effect on 2024 tax payable decreased of EUR 1.1 million with corresponding amount effecting deferred tax liability that increased by same amount.

Deferred tax (liabilities)/assets are split as follows:	2024	2023
Non-current assets	(24,649)	(20,199)
Biological assets and inventories	(12,675)	(1,375)
Receivables	(151)	(298)
Liabilities	(211)	(83)
Onerous contracts	0	653
Other	462	466
Losses carried forward (including tax credit)	23,379	10,308
Translation differences	(174)	(45)
Basis for deferred tax (liabilities)/assets:	(14,019)	(10,572)
Calculated deferred tax (liabilities)/assets	(2,804)	(2,178)
- Deferred tax assets not recognised	957	952
Net deferred tax (liabilities)/assets recognised in Consolidated Statement of Financial Position	(3,761)	(3,130)
Reconciliation of income tax expense	2024	2023
Profit before taxes	(950)	10,196
Income tax expense at corporate income tax rate in Norway (22%)	(209)	2,243
Effect of tax rates outside Norway	19	(102)
Non-taxable and non-deductible items	2,328	(514)

Carry forward loss	Fjallalax ehf.		Isþór ehf. Arnarlax ehf.	Icelandic Salmon AS	Total Sum
Loss for 2020, expires end of 2030	305	445	0	0	750
Loss for 2021, expires end of 2031	96	0	0	0	96
Loss for 2022, expires end of 2032	133	0	0	0	133
Loss for 2023, expires end of 2033	0	0	0	0	0
Loss for 2024, expires end of 2034	14	6,893	11,256	0	18,162
No expiry (tax loss Norway)	0	0	0	4,238	4,238
	547	7,338	11,256	4,238	23,379

For losses carried forward in Norway (Icelandic Salmon AS) and for Fjallalax ehf. in Iceland, no deferred tax assets are recognized.

During the year Icelandic Tax Authorities ruled that Arnarlax ehf were not entitled to utilize the loss carry forward from Fjarðalax ehf, following the merger of Arnarlax and Fjarðalax ehf dated 1st January 2020. The ruling resulted in 2.5 million EUR additional tax payable in 2024.

The Group has paid the assessed taxes but intends to appeal the Tax Authorities ruling to the Internal Revenue Board. The matter is considered to be in dispute and is expected to be resolved in the year 2025

3. Assets and liabilities

3.1 Goodwill

Accounting principles

Goodwill represents the excess of the purchase price of the business combination over the Group's interest in the net fair value of the identifiable assets, liabilities, contingent liabilities, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer's previously held equity interest in the acquiree.

Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests and any previous interest held over the net identifiable assets acquired and liabilities assumed). After initial recognition, goodwill is measured at cost less any accumulated impairment losses.

Goodwill is reviewed for impairment at least annually, and whenever there is an indication that the asset may be impaired. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs of disposal and value in use. The value in use calculation is performed using discounted expected future cash flows. The discount rate applied to these cash flows is based on the weighted average cost of capital and reflects current market assessments of the time value of money.

For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to the Group's cash-generating unit (CGU) that is expected to benefit from the business combinations, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.

Goodwill	31.12.2024	31.12.2023
Carrying amount at beginning of the year	34,740	34,740
Carrying amount at year end	34,740	34,740

3.2 Impairment

Impairment is determined by assessing the recoverable amount of the cash generating unit (CGU) to which the goodwill and indefinite lifetime licenses relates. If the recoverable amount of the CGU is lower than its carrying amount, an impairment loss is recognised.

Impairment losses relating to goodwill cannot be reversed in future periods.

The Group comprise of one CGU for goodwill being the Icelandic fish farming operations of Arnarlax ehf. The table below outlines the carrying amounts of goodwill:

Arnarlax ehf.	2024	2023
Goodwill	34,740	34,740
Arnarlax ehf. licenses.	1,659	1,626
Total Goodwill and licenses	36,398	36,366

Basis for determining the recoverable amount

Impairment is tested by calculating the recoverable amount of the CGU. The recoverable amount of the cashgenerating unit is determined based on a value in use calculation, which uses cash flow projections based on the financial forecast for the period 2025-2027 that has been approved by management and the Board of Directors. Cash flows in 2028 and beyond have been extrapolated using a 2.5 per cent terminal growth rate. An impairment loss is recorded if the carrying amount of the CGU exceeds the estimated value in use.

The Group has determined that the following assumptions are the key assumptions used in determining the current estimate of value in use:

• Forecasted harvested volume
• EBIT/kg
• Forecasted market price for harvested products
• Investment (CAPEX) forecast
• Discount rate (WACC)

Harvest volume

Forecast of harvested volume are estimated based on current production and future harvesting plans, adjusted for expected increases in future output given current licenses.

EBIT/kg

EBIT per kg is sensitive to fluctuations in the price of salmon. Forecast market prices for the harvested products are based on market data from Euronext salmon future (euronext.com). Estimates for production cost are based on historical figures and future expectations.

Investment (CAPEX) forecast

A detailed CAPEX forecast is used which includes CAPEX needed for the forecast increase in production. Investment after 2028 have been estimated with simplified approach to estimate the maintenance investment of assets required to maintain the production volume.

Discount rate (WAAC)

The discount rate used reflects management's estimate of the risk specified for the CGU. The discount rates are based on the Weighted Average Cost of Capital (WACC) methodology. In the model a ten-year riskfree rate has been used. The calculation of the final discount rates also takes into account the market risk premium, debt risk premium, gearing and beta value. In the calculations, the Group has applied estimated cash flows after tax. The discount rate for the year 2024 is estimated post - tax 8.8 per cent compared to 10.2 per cent previous year.

Sensitivity

In connection with the impairment testing of intangible assets, a sensitivity analysis has been performed. With the assumptions used, the recoverable amount of the cash-generating unit was in reasonable excess of its carrying amount as of 31. December 2024 and 2023. There is sufficient headroom in place, and there are no triggers that would indicate an impairment being necessary. Management believes that any reasonably possible change in the key assumptions on which the recoverable amount of the cash-generating unit is based would not cause the carrying amount of the cash-generating unit to exceed its recoverable amount.

Based on the above assessments, there were no impairment indicators identified based on the impairment test related to the fish farming licenses or goodwill as of 31 December 2024.

3.3 Other intangible assets

Accounting principles

Intangible assets that are purchased individually are capitalised at acquisition cost. Intangible assets acquired in connection with the purchase of a business entity are capitalised at acquisition cost when the criteria for separate posting are met.

Other intangibles consist of following:

Licenses	2024	2023
Carrying amount on 1 January 2023	1,626	1,626
Additions new licenses	0	0
Carrying amount on 31 December 2023	1,626	1,626
Additions new licenses	32	32
Carrying amount on 31 December 2024	1,659	1,659

Licenses

The licenses that the Group owns and has purchased are capitalised at their cost. In Iceland, licenses are granted for a period of 16 years and must then be renewed. Licenses will be renewed if the applicant meets the prevailing statutory and regulatory requirements at the time the license comes up for renewal. A small fee must be paid for the license's renewal. As licenses have a contractual 16 year lifetime, with the possibility of renewal, the Group has elected to presume that these licenses have indefinite useful lifetime. They are therefore not amortised, but tested annually for impairment.

Over the recent years the Group has invested significantly in smolt production capacity. The Group now has a smolt capacity of up to seven to eight million smolts, depending on the size of the smolts. This smolt strategy has started to provide the Group with larger smolts and thereby reducing production time at sea. That reduces risk and improves biological performance. The smolt strategy is expected to improve the Group's Maximum allowed biomass (MAB) utilization in the upcoming years.

The Group currently holds a license for 23,700 tonnes maximum allowed biomass in the southern part of the Icelandic Westfjords, Arnarfjörður, Patreksfjörður and Tálknafjörður.

The Group is still pursuing two license applications in Arnarfjörður. The first involves the combination of the Fossfjörður license (1,500 tonnes) and the Arnarfjörður license (10,000 tonnes) into a single 11,500 tonnes license. The second application is in the final stage of an environmental assessment, which involves expanding four sites and potentially increasing the biomass capacity to 16,000 tonnes in Arnarfjordur, with the total maximum allowed biomass potentially reaching 28,200 tonnes. This is an ongoing process and the timeline for the licenses being granted is still unclear.

14th of June 2024, Arnarlax received a license for 10,000 tonnes of sterile salmon in Ísafjarðardjúp on three new sites. However, the Environmental and Natural Resources Board of Appeal ruled that the Icelandic Food and Veterinary Authority (MAST) did not provide a comprehensive, weighted assessment of the potential increased risk of the spread of fish diseases and parasites before issuing a license to Arnarlax for farming of sterile salmon in Ísafjarðardjúp. As a consequence, the license, which was originally awarded on 14th of June 2024, was revoked.

According to the ruling, such assessment of potential risk is a necessary precondition for licenses in areas where the distance between fish farming sites is less than 5 km. The Board of Appeal also addressed maritime safety issues concerning one of the three sites. Arnarlax will continue to work with the authorities and MAST on these matters and perform the necessary assessment in order for the license to be reissued. However the timeline on the license being reissued is unclear.

If the license is reissued Arnarlax will hold license for up to 38,200 tonnes of maximum allowed biomass, split between 28,200 fertile salmon and 10,000 tonnes of sterile salmon

3.4 Property, plant & equipment

Accounting principles

Property, plant and equipment ("PP&E") is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of replacing part of the PP&E and borrowing costs if the asset qualifies for the recognition criteria of borrowing cost. The gain or loss arising from the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset. When significant parts of PP&E are required to be replaced at intervals, the Group depreciates them separately based on their specific useful lives. All other repair and maintenance costs are recognised in Statement of Comprehensive Income as incurred.

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. The residual values, useful lives and methods of depreciation of PP&E are reviewed at each financial year end and adjusted prospectively, if appropriate. Right-of-use assets are recognised separately from property, plant and equipment and presented in note 3.5.

	Plant, machinery and equipment	Land, buildings & other property	Assets under construction	Total
Acquisition cost on 1 January 2023	66,875	36,305	8,378	111,559
Additions	0	0	26,107	26,107
Assets under construction taken in use	26,385	375	(26,761)	0
Sold and disposed	(591)	(97)	0	(689)
Acquisition cost on 31 December 2023	92,669	36,583	7,724	136,977
Additions	0	0	9,289	9,289
Assets under construction taken in use	7,698	1,211	(8,909)	0
Assets under construction expensed	0	0	(351)	(351)
Sold and disposed	(165)	0	0	(165)
Acquisition cost on 31 December 2024	100,201	37,795	7,754	145,750
Acc. dep. & Impairment in 1 January 2023	(26,931)	(3,478)	0	(30,409)
Depreciation	(6,251)	(1,702)	0	(7,954)
Sold and disposed	239	(239)	0	0
Foreign exchange effect	414	0	0	414
Acc. dep. & Impairment at 31 December 2023	(32,529)	(5,419)	0	(37,949)
Depreciation	(7,299)	(1,583)	0	(8,882)
Reclassification	0	0	0	0
Sold and disposed	165	0	0	165
Acc. dep. & Impairment at 31 December 2024	(39,663)	(7,003)	0	(46,666)
Carrying amount at 31 Dec 2024	60,539	30,792	7,754	99,084
Carrying amount at 31 Dec 2023	60,140	31,164	7,724	99,028
Useful lives	3-30 years	0-40 years
Depreciation plan	Straight-line	Straight-line
Gains on sale of non-current assets	0	0

As of 31 December 2024, the Group had PP&E at total of EUR 99.1 million compared to EUR 99.0 million as of 31 December 2023. The PP&E consist of plant, equipment and machinery, land, buildings and other property, and assets under construction. Plant, equipment and machinery mainly consist of operational equipment, floating pens, boats and aquaculture tanks. Land building & other property mainly consist of Real Estate, land and other non-removable assets. The useful life of these PP&E differs from three years, up to forty years. Assets under construction relates to ongoing investment projects later to be moved to the relevant nature of PP&E when taken to usage.

Impairment testing of non-current assets

Impairment tests for specific non-current assets are performed when there are indications of impairment. In 2024 no indications of impairments of property, plant and equipment were noted and no impairments of property, plant and equipment were incurred in 2024 or 2023.

Contractual commitments

The Group has entered into significant contractual commitments for the acquisition of property, plant and equipment at year-end 2024. The significant commitments are related to Arnarlax ehf seawater farming department with EUR 4.4 million.

3.5 Leases

Accounting principles

The Group recognises right-of-use assets at the commencement date of the lease. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. Right-of-use assets are depreciated over the shorter of the lease term and the useful life of the asset. When a purchase option has been included in the cost at recognition, the right-of-use asset is depreciated over the estimated useful life of the asset.

Short term leases (lease term less than 12 months) and leases of low-value assets are not recognised as right-of-use assets and lease liabilities, as the recognition exemptions for these leases is applied. Lease payments of such leases are recognised as expense over the lease term.

Contracts may contain both lease and non-lease components. The group allocates the consideration in the contract to the lease and non-lease components based on their relative stand-alone prices. This applies to some of the Group´s lease arrangements of wellboats and service boats, where crew and other service elements are included in the contract. The cost related to service elements not defined as lease, are expensed in the period they occur.

The lease liabilities at commencement date are measured at the present value of the lease payments. The lease payments are discounted using the Group's incremental borrowing rate as the interest rate implicit in the lease is not readily determinable.

For leasing contracts with optional renewal period, and where we are reasonably certain to exercise this option, the renewal periods are included in the calculation of the lease liability and asset.

Right-of-use assets and lease liabilities includes offices and production facilities, there are also significant leasing agreements in place for wellboats, service boats, plant and equipment.

Balance on 1 January 2023	Buildings	Equipment	Vessels	Total
Adjustments and indexation of existing agreements	3,355	300	3,320	6,975
Additions	165	0	78	243
Termination of leases	145	417	0	561
Depreciation	(89)	(123)	(653)	(865)
Balance on 31 December 2023	(410)	(175)	(547)	(1,132)
Adjustments and indexation of existing agreements	3,166	418	2,199	5,783
Additions	106	(2)	(481)	(376)
Termination of leases	799	553	7,893	9,246
Depreciation	(6)	(4)	0	(10)
Currency translation differences	(347)	(340)	(3,095)	(3,781)
Balance on 31 December 2024	12	7	407	426
	3,729	633	6,924	11,287
Estimated lifetime
Deprecation method	3-38 years	1-3 years	5-7 years
	Linear	Linear	Linear
Other leasing cost recognised in profit and loss.
Costs relating to short-term leases (less than 12 months duration)			2024	2023
Costs relating to the lease of low-value assets			2,055	4,311
Total leasing costs included in other operating expenses			53	45

Land and

Machinery and

Leases of low value are recognised in other operating expenses. Costs relating to short-term leases mainly relates to ad hoc leasing of service boats.

Total leasing costs included in other operating expenses 2,108 4,356

Boats and

Lease liabilities	2024	2023
Balance at 1 January 2024	5,665	6,942
Adjustments and indexation of existing agreements	139	243
Additions (New leases)	9,246	561
Accretion of interest	608	226
Installments on lease liabilities paid (cash flow)	(3,482)	(981)
Interest on lease liabilities paid (cash flow)	(593)	(226)
Termination of leases	(135)	(862)
Currency translation differences	(285)	(239)
Balance at 31 December 2024	11,163	5,665

	2024	2023
Current lease liabilities	3,359	894
Non-current lease liabilities	7,804	4,772
Total Lease liabilities	11,163	5,665

Summary of amounts recognised in the Consolidated Statement of Comprehensive Income:	2024	2023
Depreciation expense of lease liabilitites	3,781	1,132
Interest expense on lease liabilities (included in finance expenses)	608	226
Total amount recognised in profit or loss	4,390	1,358

The Group had total cash outflows for leases of EUR 4.1 million in 2024 compared with EUR 1.2 million in 2023.

3.6 Biological assets and inventory

Accounting principles

Biological assets

Live fish are accounted for in accordance with IAS 41 Agriculture. The main principle is that such assets are measured at fair value less cost of sale. Fair value is measured in accordance with IFRS 13 within level 3 which is based on factors that are not drawn from observable markets assumptions. Changes in value are recognised and classified under fair value adjustments in the Consolidated Statement of Comprehensive Income.

Roe, fry, smolt and arctic char are valued at historic cost. Historic cost is deemed to be the best estimate of fair value for these assets, due to little biological conversion.

The fair value of biological assets held at the Group's sea farms is calculated using a model based on future cash flow. The present value is calculated based on estimated revenues, less estimated remaining production costs until the fish is harvestable at the individual site. A fish is harvestable when it has reached the estimated weight required for harvesting specified in the Company's budgets and plans. The estimated value is discounted to present value in the Consolidated Statement of Financial Position. Present value is estimated for the biomass at each site.

Incoming cash flows are calculated as the estimated biomass at harvest multiplied by the price expected to be achieved at the same time. The estimated biomass (volume) at harvest is calculated based on the number of individual fish held in sea farms on the balance sheet date, adjusted for expected mortality until harvest, adjusted by the quality of the biomass and multiplied by the estimated weight of the fish at harvest.

The quality of the biomass can be difficult to assess prior to harvesting. In the Groups fair value assessment, the Group has used EUR 0,70 per kilo as deduction from Superior graded fish to quality downgraded fish and is that based on the Groups price history. Estimated quality downgrade proportion is also based on the Groups experience if no other indicators for specific sites suggest otherwise. Expected quality downgrade proportion varies from 7 per cent up to 16 per cent between farming sites.

The price is calculated using the EURONEXT future salmon price for the estimated harvesting date that was in effect at the end of the reporting period. Forward prices are adjusted for an exporter supplement, as well as harvesting, sales and carriage costs. In addition, an adjustment is made to take account of expected differences in fish quality. Price adjustments are made at the site level.

Management estimates the remaining production costs based on experience and current market conditions for the farming of fish up until they reach a harvestable weight. In the model, instead of being a separate cost element in the calculation, compensation for license fees and site leasing costs is included in the discount factor, and thereby reduces the fair value of the biomass.

The fair value of the biomass is calculated using a monthly discounting of the cash flow based on the second last harvesting month in the harvesting plan. The discount factor is intended to reflect three main components:

1. The risk of incidents that affect the cash flow.

2. Synthetic license fees and site leasing costs.

3. The time value of money.

The discount factor is set based on an average for all the Group's sites and which, in the Group's assessment, provides a sensible growth curve for the fish – from smolt to harvestable fish.

The risk adjustment must take account of the risk involved in investing in live fish. A fish spends from 16 up to 24 months at a sea farm, and the risk will be higher the longer the time until harvest. Biological risk, the risk of increased costs and price risk will be the most important elements to be recognised. The present value model includes a theoretical compensation for license fees and site leasing costs as a surplus to the discount factor in the model, instead of being a cost-increasing factor in the calculation.

Inventories

Inventories is comprised of feed, packaging materials, finished goods and other inventories. Inventories are stated at the lower of cost or net realizable value. Net realizable value is the expected sales price less completion costs and costs to be incurred in marketing, selling, and distributing the inventory. Cost is determined using the first-in, first-out method.

Finished products include direct material cost, direct personnel expenses, and indirect processing cost (full production cost). Interest costs are not included in the inventory value. If the cost value of finished product is estimated to be higher than realised sales value, based on judgement of the management, the finished products are revaluated based on best estimate on product valuation. Finished product is never valued above cost value. Value is based on the principle of first-in-first-out.

Book value of biological assets and inventories	31/12/2024	31/12/2023
Finished Products	482	2,279
Raw materials	1,892	1,432
Other inventories	0	219
Boxes	70	62
Inventories	2,444	3,992
Biological assets	94,293	65,963
Total biological assets and inventories	96,737	69,955

Raw materials comprise mainly feed for smolt and marine-phase fish production. It also includes raw materials for use in processing, as well as packaging. Stocks of biological assets are associated with farming activities on land and at sea, and comprise roe, fry, smolt and fish held at sea farm. Finished goods comprises whole salmon, fresh and frozen, as well as processed salmon products.

Fair value

Fair value adjustments are part of the Group's operating profit/loss, but changes in fair value are presented Fair value adjustments are part of the Group's operating profit/loss, but changes in fair value are presented on a separate line to provide a greater understanding of the Group's profit/loss on sold goods. The item comprises:

	2024	2023
Change in fair value of the biomass	11,370	(4,378)
Recognised fair value adjustments	11,370	(4,378)

Book value of biological assets recognised at fair

value	31/12/2024	31/12/2023 55,927
Biological assets held at sea farms at cost	73,034
Fair value adjustment of biological assets	12,572	1,202
Total biological assets held at sea by fair value	85,606	57,128
Roe, fry, smolt at cost	8,687	8,835
Total biological assets	94,293	65,963

Change in the book value of biological assets held at

sea farm carried at fair value	2024	2023
Biological assets held at sea farm 1 Jan	57,128	73,674
Increase resulting from production/purchase	88,225	82,870
Reduction resulting from sale/harvesting	(63,937)	(86,452)
Reduction resulting from incident-based mortality	(4,912)	(8,584)
Reduction resulting from re-valuation of stock value	(2,267)	0
Net fair value adjustment	11,370	(4,378)
Biological assets held at sea farm 31 Dec	85,606	57,128

Write-downs

Cost of biological assets recognised as an expense in respect of write-downs of inventory to net realisable value.

	2024	2023
Write downs within period	9,699	9,390

Biological assets held at sea farms 31 Dec 2023:	Cost	Fair value adjustment	Carrying amount
< 1 kg (LW)	20,749	1,202	21,951
1-4 kg	18,694	0	18,694
> 4 kg (GW)	16,483	0	16,483
Biological assets held at sea farms	55,927	1,202	57,128
Roe, fry, smolt and arctic char fish at cost	8,835	0	8,835
Biological assets total:	64,761	1,202	65,963

Incident-based mortality

In the event of incidents exceeding three per cent mortality in a period based on a single incident, or if the mortality exceeds five per cent over several periods based on the same incident, an assessment is made as to whether there is a basis for write-down. The assessment relates to the number of fish and is carried out at site level. Incident-based mortality is recognised under cost of goods sold in the Consolidated Statement of Comprehensive Income.

The estimate relates to the number of fish and is carried out at site level. The Group had one incident in its sea farm in the year 2024 that resulted in incident-based mortality as defined above. The total effect on the Group's operational profit at cost was EUR 4.4 million but the Group has in place insurance of its biological assets that covered part of the mortality. The corresponding numbers for 2023 were three incidents, with an effect on Groups operating profit at cost of EUR 7.0 million where mortality was partially covered by the insurance.

The Group also had a value write down on its biological assets at one of its sea farms in the year 2024 and affected the Group's operational profit for EUR 2.3 million. No such write down was done in the previous year.

Biological assets held at sea farms 31 Dec 2024:	Cost	Fair value adjustment	Carrying amount
< 1 kg (LW)	12,507	732	13,239
1-4 kg	37,996	11,839	49,836
> 4 kg (GW)	22,531	0	22,531
Biological assets held at sea farms	73,034	12,572	85,606
Roe, fry and smolt at cost	8,687	0	8,687
Biological assets total:	81,721	12,572	94,293

The discount rate at end of year 2024 was 4.0 per cent per month, which reflects the biomass capital cost, risk and synthetic license fees and site rental charges. The discount rate was changed from end of year 2023 from 5.0 per cent and is based on lower margin expectations that should give a lower contribution to the owner of the licenses and lower expectations of profitability in the industry.

The fair value calculation is based on following forward prices:

Expected harvesting period:	Forward price 31/12/2024	Expected harvesting period: Forward price 31/12/2023
Q1-2025	10,02	Q1-2024	9.58
Q2-2025	10,26	Q2-2024	10.02
Q3-2025	7,24	Q3-2024	7.40
Q4-2025	7,46	Q4-2024	7.62
Q1-2026	9,91	Q1-2025	9.13
Q2-2026	9,21	Q2-2025	9.09
Q3-2026	7,40	Q3-2025	6.67
Q4-2026	8,19	Q4-2025	6.85

Sensitivity assessment

The estimated fair value of biological assets has been calculated using different parameters. The effect on the estimated fair value of biological assets is summarised below. Consideration has been given to fish groups valued at cost in the sensitivity assessment:

2024	Increase	Effect on estimated fair value 31/12/2024	Decrease	Effect on estimated fair value 31/12/2024
Change in estimated forward price	0,5 EUR per kg.	4,148	-0.5 EUR per kg.	(4,148)
Change in discount factor	1%	(4,459)	-1%	6.190
Change in harvesting time	1 month earlier	(1,697)	1 month later	1,778
Change in biomass	1%	639	-1%	(639)

2023	Increase	Effect on estimated fair value 31/12/2023	Decrease	Effect on estimated fair value 31/12/2023
Change in estimated forward price	0,5 EUR per kg.	1,439	-0,5 EUR per kg.	(1,439)
Change in discount factor	1%	(1,202)	-1%	1,613
Change in harvesting time	1 month earlier	(636)	1 month later	674
Change in biomass	1%	215	-1%	(215)

3.7 Trade and other receivables and allowance for expected credit losses

Accounting principles

The Group's trade receivables consist solely of amounts receivable from revenue from contracts with customers. Trade receivables are generally on payment terms of 21 days.

Trade receivables are financial assets which are initially recognised at transaction price determined under IFRS 15. The Group always recognises an allowance for trade receivables that are in scope of the expected credit loss model. The expected credit losses are estimated using a provision matrix based on the Group's historical credit loss experience and based on individual estimate of each trade receivable.

The Group recognises an allowance for expected credit losses (ECLs) for its financial assets. ECLs are based on the cash flows that the Group expects to receive. For trade receivables, the Group applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Group bases the allowance of its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

	31/12/2024	31/12/2023
Trade receivables	9,536	13,225
Allowance for expected credit losses	(22)	(53)
Total trade receivables	9,514	13,172
Other receivables	3,293	3,800
Bonds	309	309
Allowance for expected credit losses (Bonds)	(309)	(309)
Total other receivables	3,293	3,800
Total receivables	12,807	16,972

Allowance for expected credit losses are classified as other operating expenses in the Statement of Comprehensive Income. Changes in allowance for expected credit losses are charged to expenses during the period are presented below:

2024	2023
362	661
331	362
(31)	(300)
2024	2023
35	500
(31)	(300)
0	4
4	204

See note 4.1 for further details of the credit risk and foreign exchange risk associated with trade receivables and other receivables.

As at 31 December, the Group's outstanding trade receivables had the following aging:

EUR 1000	Total	Not due	<30 d	31-60d	60-90d	>90d
31/12/2024	9,536	6,352	2,771	387	0	25
31/12/2023	13,225	7,645	5,190	217	86	86

3.8 Financial instruments and Capital structure

- Overview of financial instruments and fair value measurement

Accounting principles

Classification of financial instruments

The Groups' financial instruments are grouped in the following categories:

Financial assets at amortised cost

Trade, other receivables and other long-term receivables are part of the Group's business model with the sole objective to collect contractual cash flows. Additionally, if the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding, thereby passing the "SPPI test", constituting debt instruments measured at amortized cost.

Financial Liabilities at amortized cost

Financial liabilities at amortised cost includes the Group's non-interest-bearing debts.

Hedging

The Group designates certain derivatives as hedging instruments in respect of foreign currency risk in cash flow hedges. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges. At the inception of the hedge relationship, the Group documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument is effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk, which is when the hedging relationships meet all of the following hedge effectiveness requirements:

• » There is an economic relationship between the hedged item and the hedging instrument
• » The effect of credit risk does not dominate the value changes that result from that economic relationship
• » The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Group actually hedges and the quantity of the hedging instrument that the Group actually uses to hedge that quantity of hedged item

If a hedging relationship ceases to meet the hedge effectiveness requirement relating to the hedge ratio but the risk management objective for that designated hedging relationship remains the same, the Group adjusts the hedge ratio of the hedging relationship (i.e. rebalances the hedge) so that it meets the qualifying criteria again. The Group designates the full change in the fair value of a forward contract (i.e. including the forward elements) as the hedging instrument for all of its hedging relationships involving forward contracts. The Group designates only the intrinsic value of option contracts as a hedged item, i.e. excluding the time value of the option. The changes in the fair value of the aligned time value of the option are recognised in other comprehensive income and accumulated in the cost of hedging reserve. If the hedged item is transactionrelated, the time value is reclassified to profit or loss when the hedged item affects profit or loss. If the hedged item is time period related, then the amount accumulated in the cost of hedging reserve is reclassified to profit or loss on a rational basis – the Group applies straight-line amortisation. Those reclassified amounts are recognised in profit or loss in the same line as the hedged item.

No hedge was in place at end of the year.

Expected credit loss

The Group writes off a financial asset when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy proceedings. Financial assets written off may still be subject to enforcement activities under the Group's recovery procedures, taking into account legal advice where appropriate. Any recoveries made are recognised in the Consolidated Statements of Comprehensive Income.

Derecognition of financial assets

The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognize the financial asset and also recognises a collateralised borrowing for the proceeds received.

Derecognition of financial liabilities

The Group derecognises financial liabilities when, and only when, the Group's obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.

When the Group exchanges with the existing lender one debt instrument for another one with substantially different terms, such an exchange is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, the Group accounts for a substantial modification of terms of an existing liability or part of it as an extinguishment of the original financial liability and the recognition of a new liability. It is assumed that the terms are substantially different if the discounted present value of the cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective interest rate is at least 10 per cent different from the discounted present value of the remaining cash flows of the original financial liability. If the modification is not substantial, the difference between:

(1) the carrying amount of the liability before the modification; and

(2) the present value of the cash flows after modification is recognised in profit or loss as the modification gain or loss within other gains and losses.

Classification as debt or equity

Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument in IAS 32.

Fair value measurement

All assets and liabilities for which fair value is measured or disclosed in the Consolidated Financial Statements, the Group has used the following assumption to measure fair value:

Financial assets

Management assessed that the carrying amount of cash and cash equivalents, trade receivables, other receivables and other long-term receivables is a reasonable approximate of their fair value.

Financial liabilities

Management assessed that the carrying amounts of trade and other payables is a reasonable approximate of their fair value. The fair values of the Group's interest-bearing debts are similar to the carrying amount, as the interest rates are floating.

Financial instruments

Assets	31/12/2024	31/12/2023
Trade receivables	9,514	13,172
Other receivables	3,293	2,265
Cash and cash equivalents	6,901	10,189
Total financial assets	19,708	25,626

Liabilities	31/12/2024	31/12/2023
Non-current interest-bearing liabilities	79,500	54,500
Non-current lease liabilities	7,804	4,772
Current interest-bearing liabilities	3,000	1,500
Current lease liabilities	3,359	894
Trade payables	6,471	8,679
Other current payables	9,531	5,688
Total financial liabilities	109,665	76,032

Non-current and current interest-bearing liabilities are recognised at amortised cost.

3.9 Cash and cash equivalents

Cash and cash equivalents	31/12/2024	31/12/2023
Bank deposits, unrestricted	6,901	10,189
Cash and cash equivalents in the Statements of Financial Position	6,901	10,189

At 31 December 2024 the Group had unused overdraft facility amounting to EUR 5 million, the overdraft facility was not drawn down either at 31 December 2023 (see note 3.10).

3.10 Interest-bearing loans and borrowings

Non-current interest-bearing borrowings	2024	2023
Interest-bearing borrowing to credit institutions	82,500	56,000
Next year's installment on non-current interest-bearing borrowings	(3,000)	(1,500)
Total non-current interest-bearing borrowings to credit institutions	79,500	54,500

Current interest-bearing borrowings	2024	2023
Bank overdraft	0	0
Next year's installment on non-current interest-bearing borrowings	3,000	1,500
Total current interest-bearing borrowings to credit institutions	3,000	1,500

In November 2023, Arnarlax ehf., a subsidiary of the Group, completed a refinancing process totalling facilities of 95 MEUR. The sustainable linked facilities consisted of a term loan of 30 MEUR, a revolving facility of 65 MEUR and an additional overdraft facility of 5 MEUR. The facility agreement is valid until November 2026 with the possibility of two, one year extensions.

In December 2024, the Group signed a Term sheet for extension of the facility. In February 2025 the agreement was finalised. See further in note 4.6 Subsequent events.

Financial Position

The refinancing was accounted for an extinguishment under IFRS and resulted in EUR 0,1 million recognised through profit and loss, classified within finance expense.

For maturity structure of interest-bearing borrowings, references are made to note 4.1. Lease liabilities are presented separately from interest-bearing borrowings to credit institutions and disclosed in note 3.5.

Financial covenants

The Company has a solvency requirement which means that the book equity ratio must be above 35 per cent and profit requirement that stipulates that the Company's 12-month rolling interest coverage ratio must not be lower than 4.00:1. In addition, the Company's NIBD/12-month rolling EBITDA, excluding certain limited extraordinary items, should not exceed 6.00:1 for each relevant period expiring on or prior to 31 December 2024. In December 2024 the Groups lenders agreed to waive the financial covenants for the period up to and including the second quarter 2025.

With the new loan agreement signed in February 2025, changes to the covenant measure were agreed for period going forward. See further in note 4.6 Subsequent events. The Group does not expect any breach of the new covenants from Q2-25 going forward.

The Company is also subjected to three sustainable linked measures at year end 2024. The company achieved one of the three measures.

Reconciliation of changes in liabilities to credit institutions incurred as a result of financing activities

2024	1. January 2024	New interest-bearing borrowings	Repayment of Interest-bearing borrowings	Current portion of long-term borrowings	Other changes	31. December 2024
Non-current interest-bearing borrowings to credit institutions	54,500	45,000	(17,000)	(3,000)	0	79,500
Current interest-bearing borrowings to credit institutions	1,500	0	(1,500)	3,000	0	3,000
Total liabilities from financing	56,000	45,000	(18,500)	0	0	82,500

2023	1. January 2023	New interest-bearing borrowings	Repayment of Interest-bearing borrowings	Current portion of long-term borrowings	Other changes	31. December 2023
Non-current interest-bearing borrowings to credit institutions	51,649	23,500	(21,506)	750	107	54,500
Current interest-bearing borrowings to credit institutions	6,230	0	(4,193)	(750)	213	1,500
Total liabilities from financing	57,879	23,500	(25,699)	0	320	56,000

2024	1 January 2024	New leases recognised	Adjustments of the year	Cash flows	Current portion of long-term leases	31 December 2024
Non-current lease liabilities (Note 3.5)	4,772	9,246	(263)	(2,956)	(2,994)	7,804
Current lease liabilities (Note 3.5)	894	0	(42)	(487)	2,994	3,359
Total liabilities from financing	5,665	9,246	(305)	(3,443)	0	11,163

2023	1 January 2023	New leases recognised*	Adjustments of the year	Cash flows	Current portion of long-term leases	31 December 2023
Non-current lease liabilities (Note 3.5)	5,756	561	(858)	(36)	(653)	4,772
Current lease liabilities (Note 3.5)	1,186		0	(945)	653	894
Total liabilities from financing	6,942	561	(858)	(981)	0	5,665

3.11 Onerous Contracts

Accounting principle

Onerous contracts

IAS 37 defines an onerous contract as a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under the contract. Unavoidable costs are the lower of the costs of fulfilling the contract and any compensation or penalties from the failure to fulfill it. If a contract can be terminated without incurring a penalty, then it is not onerous.

The definition of onerous contract focuses on the costs of fulfilling the obligations compared to the expected benefits. Similarly, a contract not performing as well as anticipated, or as well as possible, is not onerous unless the costs of meeting the obligations under the contract exceed the expected benefits.

The recognition and measurement of onerous contract provisions are (as discussed in IFRS 15:BC296) subject to the general requirements of IAS 37 and, as such, are based on the entity's 'best estimate' of the (net) expenditure required to settle an obligation (IAS 37:36).

Physical fixed-price sales contracts whose price is less than the price used as the basis for adjusting the fair value of the biomass are recognised as liabilities in the Consolidated Statement of Financial Position. The amount recognised as a liability is the difference between the market price at the end of the reporting period plus costs to sell and the contract price. Changes in provisions are recognised in a separate line in the Consolidated Statement of Comprehensive Income and are included in the operational profit.

Effect from onerous contracts was EUR 0.65 million for the year 2024 compared to EUR (0.53) million for the year 2023. The effect is recognised as separate line in the Consolidated Statement of Comprehensive Income with contra entry to current liabilities.

3.12 Other current payables

Provision

A provision is recognised when, and only when, the Group has a constructive obligation (legal or selfimposed) deriving from an event which has occurred, and it is probable (more likely than not) that a financial settlement will take place as a result of that liability, and the amount in question may be reliably quantified. Provisions are reviewed on each reporting date, and the level reflects a best estimate of the liability concerned.

Accruals for clean-up cost

When fish-farming licenses are granted and production equipment is installed at the site, an obligation arises to remove the operational equipment in the future. Additionally, obligations may arise due to changes in legislation. Licenses for operating a fish-farm are granted for 16 years at a time, with possibility to be renewed if the company fulfills the demands of the government. Consequently, fish-farming licenses are expected to have an indefinite useful lifespan and production at the sites will continue in unforeseeable future.

Provisions are made for costs related to clean-up associated with the termination of individual production cycles at each site. However, the settlement dates for the removal of equipment placed on sites are indeterminate and cannot be measured reliably. Other estimates, such as extremely long-term discount rates for which there is no observable benchmark, cannot be determined reliably. Due to the long time horizon, the present value of an estimated obligation becomes insignificant. Consequently, no provision has been made for liabilities related to removal costs.

Other current payables comprise:	31/12/2024	31/12/2023
Withheld taxes	9	3
Unpaid payroll expenses	1,677	1,482
Accrued interest expense	603	543
Accrued accumulated clean up expenses for sites.	3,010	1,005
Other accrued expenses *	4,230	5,863
Total other current payables	9,531	8,897

* Other accrued expenses consist of accruals for operational expense.

4. Financial risk management and other notes

4.1 Capital & Risk Management

Accounting principle

Financial risk

The Group faces several financial risks through its operations, including market risk, credit risk, and liquidity risk. The management continuously evaluates these risks and establishes policies to manage them. The Group secures bank loans to fund investments for its operations and to secure liquidity for daily operations. Furthermore, the Company deals with financial instruments like trade receivables and payables, which are directly linked to its daily business activities.

Interest rate risk

The Groups operating results and cash flow from operations are largely independent of changes in market interest rates. The Group has an insignificant part of its assets that are interest-bearing. The Groups longterm loans have variable interest rates based on EURIBOR. The Group has not entered into any swaps or other derivatives in relation to interest rate risk.

Foreign exchange risk

The Group operates in a global environment which exposes it to foreign currency fluctuations mainly related to any trade receivables or trade payables denominated in foreign currency. Interest bearing debt is denominated in EUR which is the functional currency of the borrowing entity Arnarlax ehf. Management monitor the risk related to currency fluctuation in relation to day to day operations.

Credit risk

The likelihood of a counterparty lacking the financial means to fulfil its obligations has been deemed minimal, and The Group´s incurred losses from defaulting debtors have been low. The Group has established strict guidelines aimed to ensure that all transactions are conducted solely with customers who have a good payment track record and outstanding balances remain within specified credit limits. The Group has implemented routine that secures credit insurances as a precautionary measure for all its customers. The gross credit risk on the balance sheet date corresponds to the Group's trade receivables portfolio on the balance sheet date. See note 3.8.

Liquidity risk

Liquidity risk refers to the risk that the Group may not be able to meet its financial obligations as they become due. To mitigate and manage this risk, cash flow forecasts are drawn up on a regular basis and the Accounting department monitors rolling forecasts of the Group's liquidity needs. This ensures that the Group maintains sufficient cash equivalents to meet operational liabilities, as well as at all times having adequate flexibility in the form of unused credit facilities (see consolidated statement of cash flows). The Group's objective is to have sufficient cash, cash equivalents or medium-term credit facilities to meet its payment obligations in the short term, whilce also staying within borrowing limits and adhering to specific borrowing conditions.

The table below details the Group's non-derivative financial liabilities classified by maturity structure. The figures presented in the table are undiscounted contractual cash flows.

70,500 0	82,500 6,471
2,921	11,163
0	9,531
	109,665
	Total
0	56,000
0	8,679
2,812	5,665
0	5,688
	76,032
	73,421 5 years and more 2,812

Interest rate risk sensitivity

The sensitivity to a possible change in interest rates, with all other variables held constant, on the Group's profit before tax, is illustrated below.

Interest rate sensitivity*	Increase / decrease in basis points	Effect on profit before tax	Effect on equity
31.12.2024	+/- 100	+/- 825	+/- 660
31.12.2023	+/- 100	+/- 560	+/- 448

*The figures given above are absolute figures

Currency risk sensitivity

The operational income for the Group is denominated in EUR. In 2024, 63 per cent of the Group's operational income was generated in EUR (2023: 64 per cent), while 33 per cent was generated in USD (2023: 26 per cent). Since exchange rate volatility can impact the profitability of salmon sales, the Group has taken steps to mitigate currency risk by hedging all fixed price contracts denominated in currencies other than the operational currency.

The Group's operational costs are primarily denominated in EUR and significant purchases are also contracted in EUR. However, around 40 per cent of the operational costs are in Icelandic Krona (ISK), which is a currency that is highly vulnerable to fluctuations in the global market. While the Group acknowledges the impact of currency fluctuations on its operational cost, there has been no hedging against ISK to EUR. The main components of the operational costs in ISK are salaries, domestic contractors and supplier purchases, and taxes.

Capital structure and equity

The objective of the Group's capital management is to safeguard the Group's continued operations in order to secure a return on investment for shareholders and other stakeholders, and maintain an optimal capital structure for reducing capital costs. By ensuring a good debt-to-equity ratio the Group will support its business operations, and thereby maximise the value of the Group's shares.

The Group manages and makes changes to its capital structure in response to an ongoing assessment of the financial conditions under which the business operates, and its short and medium-term outlook. No changes were made in the guidelines covering this area in 2024.

As of 31 December 2024, the Group had an equity ratio of 56.9 per cent (64.2 per cent as at 31 December 2023). See note 3.10 for further details of the Group's net interest-bearing debt.

4.2 Share capital and shareholders

As at 31 December 2024, the parent company's share capital comprised:

	No.	Face value	Share capital in EUR
Ordinary shares	30,961,868	0,96	29,571,137
Shareholders
The Company's 20 largest shareholders as at 31 December 2024 were:
		No.	Shareholding
SalMar ASA		16.248.152	52,48%
J.P. Morgan SE		2.701.033	8,72%
Clearstream Banking S.A.		2.346.115	7,58%
Íslandsbanki hf.		2.341.889	7,56%
Holta Invest AS		1.149.133	3,71%
Pactum Vekst AS		701.983	2,27%
MP Pensjon PK		619.706	2,00%
Roth		599.661	1,94%
Nima Invest AS		574.853	1,86%
Kristians and AS		450.000	1,45%
Surfside Holdings AS		274.804	0,89%
VPF DNB Norge Selektiv		257.374	0,83%
Verdipapirfondet DNB SMB		239.222	0,77%
Alden AS		217.776	0,70%
DNB Bank ASA		199.641	0,64%
Lithinon AS		186.881	0,60%
J.P. Morgan SE		157.389	0,51%
Haganes AS		141.278	0,46%
Verdipapirfondet KLP AksjeNorge		135.666	0,44%
Alcancia Captial AS		124.000	0,40%
Total 20 largest shareholders		29.666.556	95,82%
Total other shareholders		1.295.312	4,18%
Total no. of shares		30.961.868	100,00%

Shares owned by the Board of Directors and management:

Name	Title	Shares	Shareholding
Leif Inge Nordhammer (1)	Chairman of the board	-	0.00%
Kjartan Olafsson (2)	Board member	550,000	1.78%
Gustav Witzøe (1)	Board member	-	0.00%
Espen Marcussen (3)	Board member	-	0.00%
Ulrik Steinvik (1)	Board member	-	0.00%
Bjørn Hembre (4)	CEO	32,900	0.11%
Rolf Ørjan Nordli (1)	COO SeaWater	-	0.00%
Rúnar Ingi Pétursson (5)	COO Harvest Plant	750	0.00%

(1) Leif Inge Nordhammer, Gustav Witzøe, Ulrik Steinvik and Rolf Ørjan Nordli, all indirectly own shares through stake in SalMar ASA.

(2) Kjartan Ólafsson owns 100% of the shares in Berg Fjárfesting ehf, which own 100% of the shares in Gyða ehf. Gyða ehf. has its shares within custody account within J.P. Morgan SE.

AS, owns shares in SalMar ASA and holds a majority voting right in SalMar ASA.

(3) Espen Marcussen indirectly owns shares through a minority stake in Pactum Vekst AS

(4) Björn Hembre owns indirectly through IVMA AS which is one of minority stakeholders in Icelandic Salmon AS. Björn owns 100% of the shares in IVMA AS.

(5) Rúnar Ingi Pétursson owns shares within custody account within Íslandsbanki hf.

See further information regarding share options in note 2.4

4.3 Earnings per share

Earnings per share	2024	2023
Net profit for the year	(3,088)	8,568
No. of shares outstanding as at 1 Jan	30,962	30,962
No. of shares outstanding as at 31 Dec	30,962	30,962
Average no. of shares outstanding through the year (basic and diluted)	30,962	30,962
Earnings per share (EUR)
Basic and diluted	(0.10)	0.28

4.5 Related party transactions

Accounting principles

Balances and transactions between Icelandic Salmon AS and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note. Transactions between the Group and its joint ventures are disclosed below.

Transactions with related parties in 2024:	Sales	Purchases	Receivables Liabilities
Entities related to chairman of Icelandic Salmon AS		245 462	102	54
Entities related to Kvarv AS, ultimate parent	2,469	4,076	0	163

Transactions with related parties in 2023:	Sales		Purchases Receivables	Liabilities
Entities related to chairman of Icelandic Salmon AS	279	535	95	86
Entities related to Kvarv AS, ultimate parent	218	10,569	0	1,901
Salmar ASA, parent company	113	0	0	0
Entities related to Salmar ASA, parent company	0	8	0	0

4.4 Group companies

Ownership and voting interest :

Subsidiary		31/12/2024 31/12/2023	Company	Registered office Principal activity
Arnarlax ehf.	100%	100%	Icelandic Salmon AS	Strandgata 1, 465 Bíldudalur, Iceland	Fish farming
Fjallalax ehf.	100%	100%	Arnarlax ehf.	Strandgata 1, 465 Bíldudalur, Iceland	Fish farming
Eldisstöðin Ísþór ehf.	100%	100%	Arnarlax ehf.	Nesbraut 25, 815 Þorlákshöfn, Iceland	Fish farming
Arnarlax Europe AsP	100%	0%	Arnarlax ehf.	Lautrupsgade 11, 2100 CPH Ø, Denmark	Sales and market ing**
Icelandic Salmon ehf.	100%	100%	Arnarlax ehf.	Strandgata 1, 465 Bíldudalur, Iceland	Dormant*

* Share capital of Icelandic Salmon ehf. consists solely of ordinary shares, which are held directly by the Group. The company is dormant and not consolidated in these Consolidated Financial Statements as its effects would be immaterial in the opinion of management.

** Arnarlax Europe AsP was established in end of November 2024 at year-end 2024 there is no activity in the company and therefor it is not consolidated in these Consolidated Financial Statements as its effects would be immaterial in the opinion of management.

Transactions between the Group and related parties are undertaken at market terms and conditions.

See note 2.3 for remuneration to Group management and Board of Directors.

Icelandic Salmon AS is part of the SalMar Group. The Group's Parent Company is Salmar ASA. SalMar's Parent Company is Kverva Industrier AS, which owns 45.39 per cent of the shares in SalMar ASA. The Ultimate Parent Company is Kvarv AS.

4.6 Subsequent events

The Group has evaluated subsequent events and determined that no significant events or transactions have occurred after the year-end that would require adjustments to the financial statements. However, certain events require disclosure, as detailed below.

In December 2024, the Group's subsidiary, Arnarlax ehf., signed a term sheet for the extension of its loan facility. The agreement was finalised in February 2025, securing an additional EUR 65 million extension to the revolving facility, bringing the total facility to EUR 160 million, in addition to a EUR 5 million overdraft facility. With this amendment, the facility is now valid until November 2027. With the new agreement, the covenants require an equity ratio above 35 per cent and profit requirement that requires that the Company's 12-month rolling interest coverage ratio must not be lower than 1.50:1 first measured on 30 September 2025, not be lower than 2.00:1 first measured 31 March 2026 and not be lower than 2.50:1 first measured 30 September 2026 and thereafter. The Company's NIBD/12-month rolling EBITDA, excluding limited extraordinary items, should not exceed 5.50:1 first measured on 31 March 2026, not exceed 5.00:1 first measured 30 September 2026 and not exceed 4.50:1 first measured 31 March 2027 and thereafter.

Additionally, Arnarlax ehf. received a verdict from Landsréttur, the Court of Appeal, in a legal case against Vesturbyggð municipality regarding catch fee price increases. The court upheld the prior District Court ruling, confirming that Arnarlax ehf. is not obligated to pay the increased catch fees, as they are not legally supported. This ruling aligns with the company's position and may result in a reimbursement of catch fees paid for the period from 2018 to year-end 2024. However, Vesturbyggð municipality retains the right to request for appeal for the verdict to the Supreme Court in Iceland.

Tariffs to USA

Following the balance sheet date, new tariffs imposed by the USA on imports from Norway & Iceland have been announced. The new tariffs, set at 15 per cent for Norway and 10 per cent for Iceland, will take effect from April 2025. There is significant uncertainty regarding the impact of these tariffs on the Group, and the Group is actively monitoring the situation and exploring strategies to mitigate potential effects on its operations and financial performance. The tariffs are considered to be a non-adjusting event for the 2024 financial statements

ICELANDIC SALMON AS FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 2024 ICELANDIC SALMON AS FINANCIAL STATEMENTS

Income Statement

In EUR 1000	Note	2024	2023
Operating revenues
Service revenues	1	0	219
Total revenue		0	219
Payroll expenes	2	79	281
Other operating expenses	3	257	253
Total operating expenses		336	534
Operating loss		(336)	(315)
Financial Items
Other interest income		38	37
Other interest expenses		(1)	(0)
Foreign currency loss	4	(42)	(90)
Net financial items		(5)	(53)
Net loss for the year		(341)	(368)
Allocation of loss:
Uncoverred loss allocated to Share Premium		341	368
Total allocation of the year		341	368

Statement of Financial Position at 31 December

FINANCIAL STATEMENTS 2024

Leif-Inge Nordhammer, Chairman of the Board

Gustav Witzøe Member of the Board

Ulrik Steinvik, Member of the Board

Bjørn Hembre,
CEO

Kjartan Olafsson, Member of the Board

Espen Weyergang Marcussen, Member of the Board

In EUR 1000	Note	2024	2022
Assets
Non-Current assets
Investments in subsidiaries	5, 11	115,883	115,854
Total non-current assets		115,883	115,854
Current assets
Other current receivables		0	9
Current receivables related parties		0	1
Cash & cash equivalents	6	804	1,177
Total current assets		804	1,187
Total Assets		116,687	117,041
Equity Share capital	7, 8	29,571	29,571
Share premium	7	87,114	87,426
Total equity	7	116,686	116,998
Liabilities
Current liabilities
Trade payables		1	27
Other current liabilities		0	17
Total current liabilities		1	43
Total liabilities		1	43
Total equity and liabilities		116,687	117,041
Total liabilities		1	43

Total equity and liabilities 116,658 117,041

FINANCIAL STATEMENTS 2024

Statement of Cash Flow	In EUR 1000	Note	2024	2023
	Cash flow from Operating Activities
	Loss of the year		(341)	(368)
	Change in trade payables and other current liabilities		(32)	18
	Net Cash Flow from Operating Activities		(373)	(351)
	Net change in bank deposits, cash & cash equivalents		(373)	(351)
	Bank deposits, cash & cash equivalents 1 Jan		1,177	1,527
	Bank deposits, cash & cash equivalents 31 Dec		804	1,177

2 Salaries and personell expenses and other operating expenses 101
3 Other operating expenses101
4 Currency gains (losses) 101
5 Investments in Subsidiaries101
6 Cash and cash equivalents101
7 Share capital and shareholders 102
8 Equity 103
9 Related parties transactions103
10 Tax 104
11 Loans and guarantees 104

FINANCIAL STATEMENTS 2024 NOTES TO THE FINANCIAL STATEMENTS FOR 2024

1 Accounting principles

Corporate information

Icelandic Salmon AS (the "Company" or "Icelandic Salmon" is a limited liability company, incorporated in Norway and headquartered in Kverva. The address of its registered office is Industriveien 51, 7266 Kverva, NORWAY. The Ultimate Parent Company is Kvarv AS.

Basis for preparation

The Financial Statements of the Company for the year ended on 31 December 2024 comprise the Income Statment, Statement of Financial Position, Statement of Cash Flow and Statement of changes in equity in related notes. The Financial Statements of the Company for the year ended 31 December 2024 have been prepared pursuant to the Norwegian Accounting Act of 1998 and generally accepted accounting principles in Norway (NGAAP).

Use of estimates

Preparation of Annual Financial Statements in accordance with generally accepted accounting principles requires management to make assessments, estimates and assumptions that affect the application of the accounting principles and the recognised value of assets and liabilities in the Statement of Financial Position, revenues and expenses for the financial year, as well as disclosures about uncertain assets and liabilities on the reporting date. Estimates and their underlying assumptions are based on historic experience and other factors considered to be relevant and obable at the time the assessment is made. These estimates affect the book value of assets and liabilities when their value is not based on other sources. Estimates are assessed continuously and final values and results may deviate therefrom. Changes in accounting estimates are recognised in the period in which the change takes place.

Shares in subsidiaries

Subsidiaries classified as non-current assets are recognised in accordance with the cost method. Subsidiaries are companies in which Icelandic Salmon AS has a controlling influence as a result of legal or de facto control. A controlling interest is, in principle, deemed to exist when more than 50 per cent of the voting capital is owned either directly or indirectly.

Dividend and other distributions are recognised as other financial income. If dividends exceed the share of profit and loss withheld after acquisition, the surplus amount represents a repayment of invested capital, and the distributions are deducted from the value of the investment in the Statment of Financial Position.

Classification and valuation of Financial Postition items

Means of payment comprise cash, bank deposits and other short-term investments that can be converted into cash in no more than three months.

Assets intended for permanent ownership or use are classified as non-current assets. Other assets are classified as current assets and normally include items due for payment Assets intended for permanent ownership or use are classified as non-current assets.

Other assets are classified as current assets and normally include items due for payment in less than a year, as well as items relating to the production cycle. For the classification of current and non-current liabilities, similar criteria applies.

Non-current assets are recognised at acquisition cost. If the recoverable value of a non-current asset is lower than its book value, and the impairment is not expected to be temporary, the carrying amount of the asset is reduced to its recoverable amount. Non-current assets with a limited economic lifespan are depreciated systematically.

Current assets are recognised at the lower of acquisition cost and fair value. Other non-current liabilities and current liabilities are recognised at their nominal value.

Receivables

Trade receivables and other receivables are recognised at their nominal value, less a provision for bad debts. Provisions for bad debts are made on the basis of an individual assessment of the receivable concerned.

Cash and cash equivalents

Cash and cash equivalents in the Statement of Financial Position and the Statement of Cash Flows includes cash and restricted cash with a restriction less then three months from end of the reporting period.

Presentation currency and functional currency

The Financial Statements are presented in EUR, which is the functional currency of the Company and its subsidiares where the Icelandic Salmon Group main operation is.

Transactions in foreign currencies are recognised in the Statement of Financial Position at the exchange rate in effect when the transaction took place. Monetary items denominated in foreign currencies are translated into EUR at the exchange rate in effect on the reporting date. Non-monetary items valued at historic cost expressed in foreign currencies are translated into EUR using the exchange rate in effect when the transaction took place. Changes in exchange rates are recognised in the Income Statement under other financial items in the accounting period in which they occur.

Opearating revenues

Revenues Services are recognised in revenue as they are delivered. The normal credit period is 30 days net. Revenues are recognised at the value of the consideration at the transaction date.

Tax

The tax expense is matched against the profit/loss before tax. The tax expense comprises tax payable (tax on the year's direct taxable income) and change in net deferred tax. To the extent that it is probable that deferred tax assets and liabilities will be used, they are presented net in the Statment of Financial Position.

Statement of Cash Flow

The Company's Statement of Cash Flow shows a breakdown of total cash flow generated by operating, investing and financing activities. The Statement shows the individual activity's effect on cash and cash equivalents. The Statement of Cash Flow has been prepared in accordance with the indirect method.

Change in accounting principle and comparable figures

The Financial Statements of the Company are prepared in accordance with the same accounting principles as the Financial Statements for 2023.

2 Salaries and personell expenses and other operating expenses

Included in payroll expenses are benefits paid to Directors of the company as follows:
Payroll expenses	2024	2023
Salaries expense	74	177
Social Security tax	5	35
Pension expense	0	6
Total payroll expenses	79	219
No. of full-time equivalents employed during the financial year	0	0
Remuneration to the Company's BOD	2024	2023
Fees to members of the BOD	74	62
Total remuneration to the Company's BOD	74	62
NOK 115.00, to the CEO and certain key employees. The Company's intention is that the options will be equity-settled. The option holders must stay in the employment of the Group over a vesting period of three years from the grant date until 19 February 2024. As at 31 December 2024, the fair value of the agreements was determined to be EUR 410 thousand (2023: EUR 460 thousand). Corresponding amounts have been recognised as salary by Arnarlax ehf. For further details, see note 2.4 the Consolidated Financial Statements of Icelandic Salmon AS.

3 Other operating expenses

Included in operating expenses are remuneration paid to statutory auditors as follows:

	EY	Total
Statutory auditing services	38	38
Total remuneration to auditors in 2024:	38	38
Statutory auditing services	72	72
Total remuneration to auditors in 2023:	72	72

4 Currency gains (losses)

The effect of currency gains or losses are recognised under other financial expenses in the Income Statement. The currency gain/(loss) are related to bank balances in NOK.

5 Investments in Subsidiaries

Company	Shareholding	Registered office	Book value of investment 1 Jan 2024	Net profit/ (loss) 2024	Book value of investment 31 Dec 2024	Book value of equity at 31 Dec 2024
Arnarlax ehf	100%	Bildudal - Iceland	115,854	(2,748)	115,883	148,996

6 Cash and cash equivalents

The Company´s cash and cash equivalent consist of bank balances in NOK.

Cash and cash equivalent at year end	2024	2023
Bank balances	804	1,177
Total cash and cash equivalent at year end	804	1,177

7 Share capital and shareholders

Share capital as at 31 December 2024:

	No.	Face value	Share capital in EUR
Ordinary shares	30,961,868	0,96	29,571,137

The Company's 20 largest shareholders as at 31 December 2024 were:

Share capital as at 31 December 2024:
	No.	Face value	Share capital in EUR
Ordinary shares	30,961,868	0,96	29,571,137
The company has only one class of shares.
The Company's 20 largest shareholders as at 31 December 2024 were:
		No. of shares	Shareholding
SalMar ASA		16,248,152	52.48%
J.P.Morgan SE		2,701,033	8.72%
Clearstream Banking S.A.		2,346,115	7.58%
Íslandsbanki hf.		2,341,889	7.56%
Holta Invest AS		1,149,133	3.71%
Pactum Vekst AS		701,983	2.27%
MP Pensjon PK		619,706	2.00%
Roth		599,661	1.94%
Nima Invest AS		574,853	1.86%
Kristians and AS		450,000	1.45%
Surfside Holdings AS		274,804	0.89%
VPF DNB Norge Selektiv		257,374	0.83%
Verdipapirfondet DNB SMB		239,222	0.77%
Alden AS		217,776	0.70%
DNB Bank ASA		199,641	0.64%
Lithinon AS		186,881	0.60%
J.P. Morgan SE		157,389	0.51%
Haganes AS		141,278	0.46%
Verdipapirfondet KLP AksjeNorge		135,666	0.44%
Alcancia Captial AS		124,000	0.40%
Total 20 largest shareholders		29,666,556	95.82%
Total other shareholders		1,295,312	4.18%
Total no. of shares		30,961,868	100.00%

Shares owned by members of the board and senior executives:

Name		No. of shares	Share-holding
Leif Inge Nordhammer (1)	Chairman of the Board	-	0.00%
Kjartan Olafsson (2)	Board member	550,000	1.78%
Gustav Witzøe (1)	Board member	-	0.00%
Espen Marcussen (3)	Board member	-	0.00%
Ulrik Steinvik (1)	Board member	-	0.00%
Bjørn Hembre (4)	CEO	32,900	0.11%
Rolf Ørjan Nordli (1)	COO SeaWater	-	0.00%
Rúnar Ingi Pétursson (5)	COO Harvest Plant	750	0.00%

(1) Leif Inge Nordhammer, Gustav Witzøe Ulrik Steinvik and Rolf Ørjan Nordli, all indirectly own shares through minority stake in SalMar ASA.

(2) Kjartan Ólafsson owns 100% of the shares in Berg Fjárfesting ehf, which own 100% of the shares in Gyða ehf. Gyða ehf. has it's shares within custidy account within J.P. Morgan SE.

(3) Espen Marcussen indirectly owns shares through a minority stake in Pactum Vekst AS

(4) Björn Hembre owns indirectly through IVMA AS which is one of minority stakeholders in Icelandic Salmon AS. Björn owns 100% of the shares in IVMA AS.

(5) Rúnar Ingi Pétursson owns shares within custody account within Íslandsbanki hf.

8 Equity

8 Equity	Share capital 29,571	89,033	Share premium Other paid-in equity (930)	Uncovered loss (433)	Total equity
Equity 1 Jan 2023 Year's change in equity: Net loss for the year
					117,241
	0	0	0	(368)	(368)
Uncovered loss moved against Share Premium	0	(802)	0	802	0
Share-based payment, expensed	0	0	125	0	125
Other paid-in equity moved agains Share Premium		0	0	0	0
Equity 31 Dec 2023	29,571	88,231	(805)	(0)	116,998
Equity 1 Jan 2024	29,571	88,231	(805)	(0)	116,998
Year's change in equity:
Net loss for the year	0	0	0	(341)	(341)
Uncovered loss moved against Share Premium	0	(341)	0	341	0
Share-based payment, expensed	0	0	29	0	29
Other paid-in equity moved agains Share Premium Equity 31 Dec 2024	0 29,571	(776) 87,114	776 0	0 (0)	0 116,686
For further information on share-based payments see note 2.4 in Consolidated Financial Statements of Icelandic Salmon AS.

9 Related parties transactions

Icelandic Salmon AS is a holding company, which primarily provides administrative services to its Subsidiary Arnarlax ehf. Icelandic Salmon's sales revenues therefore derive from only one business area, Revenue from intra-group services. Sales to related parties are carried out in accordance with the arm's length principle.

Revenues - intercompany services	2024	2023
Total revenues - intercompany services	0	219
Current receivables related parties	2024	2023
Group Companies	0	1
Total current receivables to related parties	0	1

Related parties transactions in the years 2024 and 2023 were insignificant.

10 Tax

Breakdown of the year's taxable income
	2024	2023
Loss before tax	(341)	(368)
Year's taxable income	(341)	(368)
Breakdown of temporary differences	2024	2023
Accumulated tax-loss carryforwards 1 January	(4,125)	(4,127)
Loss of the year	(341)	(368)
Foreign currency differences	228	370
Accumulated tax-loss carryforwards 31 December	(4,238)	(4,125)
Not included in the calculation of deferred tax	4,238	4,125
Deferred tax liability (+) / tax asset (-)	0	0
Tax rate used to calculate deferred tax	22%	22%
to utilize the tax asset.
Reconciliation of nominal to actual tax rate	2024	2023
Loss before tax	(341)
Expected tax on income at nominal tax rate	(75)
Carry forward loss not recognised in Income Statement as tax asset*	75
Estimated tax expense	-
Effective tax rate	0.0 %
*The Company's carry forward loss of EUR 4.2 million does not expire according to Norwegian laws. The Company will recognise and record tax
asset when there is an adequate profit for tax purposes to utilize the existing carry forward loss.
		(368) (81) 81 - 0.0 %

11 Loans and guarantees

Icelandic Salmon AS has pledged shares it holds in Arnarlax ehf. as security for its subsidiary's liabilities. Icelandic Salmon AS owns 100 per cent of the shares in Arnarlax ehf, the book value of which was EUR 148.9 million as at 31 December 2024 (EUR 115.9 million 31 December 2023).

Reconciliation of nominal to actual tax rate	2024	2023
Loss before tax	(341)	(368)
Expected tax on income at nominal tax rate	(75)	(81)
Carry forward loss not recognised in Income Statement as tax asset*	75	81
Estimated tax expense	-	-
Effective tax rate	0.0 %	0.0 %

STATEMENT BY THE BOARD OF DIRECTORS AND CEO

We confirm, to the best of our knowledge, that:

The Group financial statements for the period from 1 January to 31 December 2024 have been prepared in accordance with IFRS, as adopted by the EU.

The financial statements of Icelandic Salmon AS for the period from 1 January to 31 December 2024 have been prepared in accordance with Norwegian Accounting Act and accounting standards and practices generally accepted in Norway.

The financial statements give a true and fair view of the Group and the Company's consolidated assets, liabilities, financial position and results of operations.

The Report of Board of Directors provides a true and fair view of the development and performance of the business and the position of the Group and the Company, together with a description of the key risks and uncertainty factors that the Group and the Company is facing.

The Board of Directors and the Chief Executive Officer hereby confirm these Consolidated Financial Statements with their signature.

Bíldudalur 16 April 2025

FINANCIAL STATEMENTS 2024

Leif-Inge Nordhammer, Chairman of the Board

Espen Weyergang Marcussen, Member of the Board

Kjartan Olafsson, Member of the Board

Ulrik Steinvik, Member of the Board

Gustav Witzøe Member of the Board

Bjørn Hembre,

INDEPENDENT AUDITOR'S REPORT

Statsautoriserte revisorer Ernst & Young AS

Foretaksregisteret: NO 976 389 387 MVA Tlf: +47 24 00 24 00

Havnegata 9, 7010 Trondheim Postboks 1299 Pirsenteret, 7462 Trondheim www.ey.no Medlemmer av Den norske Revisorforening

To the General Meeting in Icelandic Salmon AS

INDEPENDENT AUDITOR'S REPORT

Report on the audit of the financial statements

Opinion

We have audited the financial statements of Icelandic Salmon AS (the Company) which comprise:

• The financial statements of the Company, which comprise the balance sheet as at 31 December 2024 and the income statement and statement of cash flows for the year then ended and notes to the financial statements, including a summary of significant accounting policies, and
• The financial statements of the Group, which comprise the balance sheet as at 31 December 2024, the income statement, statement of other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended and notes to the financial statements, including material accounting policy information.

In our opinion:

• the financial statements comply with applicable statutory requirements,
• the financial statements give a true and fair view of the financial position of the Company as at 31 December 2024 and its financial performance and cash flows for the year then ended in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway, and
• the consolidated financial statements give a true and fair view of the financial position of the Group as at 31 December 2024 and its financial performance and cash flows for the year then ended in accordance with IFRS Accounting Standards as adopted by the EU.

Basis for opinion

FINANCIAL STATEMENTS 2024 We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company and the Group in accordance with the requirements of the relevant laws and regulations in Norway and the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards) (the IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other information

The Board of Directors and Chief Executive Officer (management) are responsible for the information in the Board of Directors' report and the other information presented with the financial statements. Our opinion on the financial statements does not cover the information in the Board of Directors' report and the other information presented with the financial statements.

2

FINANCIAL STATEMENTS 2024 In connection with our audit of the financial statements, our responsibility is to read the information in the Board of Directors' report and for the other information presented with the financial statements. The purpose is to consider if there is material inconsistency between the information in the Board of Directors' report and the other information presented with the financial statements and the financial statements or our knowledge obtained in the audit, or otherwise the information in the Board of Directors' report and for the other information presented with the financial statements otherwise appears to be materially misstated. We are required to report if there is a material misstatement in the Board of Directors' report and the other information presented with the financial statements. We have nothing to report in this regard.

Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors' report

• is consistent with the financial statements and
• contains the information required by applicable statutory requirements.

Responsibilities of management for the financial statements

Management is responsible for the preparation of the financial statements of the Company that give a true and fair view in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway, and for the preparation of the consolidated financial statements of the Group that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU. Management is responsible for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company's and the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or the Group, or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Independent auditor's report - Icelandic Salmon AS 2024

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

3

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's and the Group's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's and the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company and the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with the board of directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Trondheim, 22 April 2025 ERNST & YOUNG AS

The auditor's report is signed electronically

Christian Ronæss State Authorised Public Accountant (Norway)

Independent auditor's report - Icelandic Salmon AS 2024

ANALYTICAL INFORMATION

Alternative performance measures (APM) - Non-IFRS measures

Operational EBIT

FINANCIAL STATEMENTS 2024
ANALYTICAL INFORMATION
Alternative performance measures (APM) - Non-IFRS measures
The Group prepares its Consolidated Financial Statements in accordance with International Financial Reporting Standards (IFRS). In addition, management has established alternative performance parameters (APMs) to provide useful and relevant information to users of its Financial Statements. Alternative performance parameters have been established to provide greater understanding of the Company's underlying performance, and do not replace the Consolidated Financial Statements prepared in accordance with international accounting standards (IFRS): The performance parameters have been reviewed and approved by the Group's management and Board of Directors. Alternative performance parameters may be defined and used in other ways by other companies.
Operational EBIT
Operational EBIT is an APM and a non-IFRS metric used by the Company to evaluate its performance, reflecting the results of underlying operations for each period. As a widely recognised industry benchmark, Operational EBIT provides valuable insights to investors and other stakeholders. The difference between Operational EBIT and operating profit/loss arises from items the Group believes may impact comparability between periods or across companies in the industry. It is important to note that Operational EBIT is not intended to replace IFRS-based income statement measurements.
Operational EBIT is calculated by excluding specific items that are not related to underlying operations, which are presented separately in the Consolidated Financial Statements.
	2024	2023
Operating profit	3,093	13,171
Resource tax	3,038	2,195
Onerous Contracts	(653)	531
Fair value adjustments of biomass	(11,370)	4,378
Operational EBIT	(5,893)	20,275

Resource tax

The Resource tax represents resource tax as described in note 2.5. Resource tax reduces profit by EUR 3.0 million in 2024 compared to EUR 2.2 million in 2023.

Operational EBIT per kg gutted weight

Operational EBIT per kg gutted weight (GW) is defined as a key APM for the Group. The performance parameter is used to assess the profitability of the goods sold and the Group's operations. The performance parameter is expressed per kg of harvested volume.

	2024	2023
Operational EBIT	(5,893)	20,275
Harvested volume (tonnes)	11,688	17,919
Operational EBIT per kg gutted weight	(0,50)	1,13

Net interest bearing debt (NIBD)

Net interest bearing debt is an alternative performance measure used by the Group. The performance measure is used to express the Group's working capital, and is an important performance measure for investors and other users, because it shows net borrowed capital used to finance the Group. Net interest-bearing debt is defined as long-term and short-term debt to credit institutions, less cash and cash equivalents. Lease liabilities under IFRS 16 are not included in the calculation of Net interest-bearing debt.

	2024	2023
Non-current interest-bearing borrowings	79,500	54,500
Current interest bearing borrowings	3,000	1,500
Cash and cash equivalents	(6,901)	(10,189)
Net interest bearing debt (NIBD)	75,599	45,811