Aker BioMarine — Interim / Quarterly Report 2020

Feb 16, 2021

AKER BIOMARINE

FOURTH QUARTER 2020 REPORT

THIS IS AKER BIOMARINE

Aker BioMarine ("the group" or "the company") is a leading biotech innovator and Antarctic krill-harvesting company developing krill-derived products for pharma, consumer health and wellness and animal nutrition. The company has a strong position in its industry and is the world's leading supplier of krill, the natural, powerful and health promoting source of nutrients from the pristine waters of Antarctica.

Aker BioMarine consists of two business segments, Ingredients and Brands. The Ingredients segment is comprised of offshore harvesting and production, the logistical operation and the onshore manufacturing and sale of krill-derived products globally to the pharmaceutical, nutraceutical, pet food and aquaculture industries. The Brands segment is the human consumer goods business, which is comprised of Lang and Epion. Lang is a producer and distributor of private labels within the vitamin and supplement categories to the largest retailers in the US market. Epion is Aker BioMarine's consumer brand company. Its first consumer brand, Kori, launched in the US mass market in 2020.

FOURTH QUARTER HIGHLIGHTS

• Revenues of USD 75.5 million (USD 71.9 million in the corresponding period last year)
• Net profit of USD 4.2 million (USD -17.8 million)
• Adjusted EBITDA of USD 21.1 million (USD 8.2 million), with 28% (11%) Adjusted EBITDA margin in the quarter
• Continued strong onshore production through the quarter as well with full year production of 1,083 MT delivering record low unit cost
• Harvesting in the quarter was 2,500 MT vs. the expected range of 6,500 7,500 MT, lower due to the krill appearing in area 48 later than anticipated
• Kori continued to grow their customer base with new retailers coming in, including Sam's Club, Rite Aid and Walgreens
• Launch of Lysoveta; a transporter molecule for vital molecules targeting the brain and eye segment. Established partnerships with University of Illinois for IP and research
• Signed pharma partnership with MD3, controlled by a pharma entrepreneur, for development of five indications within the eye and brain segment
• Launch of Aion, a circular solution company, delivering fully traceable circular plastic products, also supporting Aker BioMarine's ambition of full circularity of main waste streams
• Adjusted EBITDA for the full year of USD 78.1 million (USD 53.0 million)

GROUP FINANCIAL SUMMARY

	Fourth Quarter		Year
Amounts in thousands of U.S. Dollars	2020	2019	2020	2019
Net sales	75 501	71 923	288 588	246 170
Gross margin	36 %	31 %	38 %	39 %
Operating profit	(3 181)	(6 005)	7 000	2 762
Net profit (loss)	4 187	(17 835)	(4 210)	(23 751)
Adjusted EBITDA*	21 063	8 202	78 106	53 039
Cash flow from operations	3 248	16 104	(35 556)	12 037
CAPEX*	(9 593)	(20 573)	(31 396)	(176 201)
Equity	373 170	154 547	373 170	154 547
Total assets	700 432	692 223	700 432	692 223
Net interest bearing debt	232 121	358 863	232 121	406 454

*) See note 3 and separate disclosure covering the Aker BioMarine Group's use of Alternative Performance Measures (APMs).

CEO LETTER: INNOVATION CREATING OPPORTUNTIES

It was an eventful year to say the least. Even in the face of Covid-19-related challenges in 2020, our business continued as usual thanks to the relentless efforts and dedication of our global team. We grew our topline by 17%, and we managed to onboard new customers and enter new markets amidst pervasive travel restrictions.

In 2020, our Houston factory reported record performance for the year, despite operating in an area hit hard by the pandemic. We also reached full capacity on our new harvesting vessel, Antarctic Endurance, and maintained an infection-free offshore operation. In addition, innovation stayed top of mind across Aker BioMarine, enabling us to launch three new products within the year: Lysoveta, Aion and INVI Protein. As a company, we continually explore and experience the tremendous potential of krill, and we believe that we've only scratched the surface of what's possible with this nutrient-rich marine source. Krill comprises the largest single species marine biomass on the planet; it is present in all the oceans (covering 70% of the planet's surface), and it sits on the bottom of the food chain. Biology tells us that all important nutrients and molecules accumulate upwards through the food chain, and given the size of the krill biomass and its widespread availability, millions of years of evolution have made krill, as well as the nutrients and molecules in krill, important for all life on the planet.

To capitalize on the vast potential of krill, innovation is essential. This is where Aker BioMarine shines. Innovation is in our DNA and firmly rooted in our culture, from our harvesting fleet to the R&D team. It is in the attitude and skills of our employees, who constantly explore and extract the potential of krill. We've long been dedicated to innovating with krill, which has led us to launch three new innovations over the past year. In 2020, we launched Lysoveta, a new molecule that delivers EPA and DHA directly to the brain and other vital organs. Aker BioMarine has pioneered the development of Lysoveta, and enjoys both market leadership, a strong IP position and cost advantages. We see strong potential for this product within both the nutrition and pharmaceutical industries.

Aion, a circular solution company, was created on the back of Aker BioMarine's need to become fully circular on our primary waste streams. Aion has developed into the first (and leading) provider of circular solutions for plastics. We believe that companies will depend on services from Aion to meet future plastic requirements from regulators, as well as the consumers.

INVI Protein is a protein source that meets all the needs of the future protein consumer. It is non-dairy, but still contains a complete amino acid profile. INVI is water soluble, which means no more lumpy and milk-based formulations. It has a favorable CO2 profile that meets the needs of the conscientious consumer. Aker BioMarine aims to become a significant player in the global protein market.

All of our innovations have stemmed from the vivid imaginations, expertise and hard work of our employees. I am grateful to work with a team that's always on the hunt for new opportunities; a team that believes anything is possible; and a team that always grinds though when the going gets tough.

Despite the challenges and curveballs thrown at us in 2020, Aker BioMarine delivers strong financial numbers for the year, giving me great optimism for a promising and innovation-filled future.

Matts Johansen CEO

OPERATIONAL REVIEW

Ingredients segment

The harvesting performance has been disappointing through the year as Aker BioMarine has been facing both challenging ice conditions, and technical issues on the vessels. Fourth quarter continued to be challenging as the krill appeared later in the fishing area 48 than what was anticipated. All vessels went into shipyard late September and the two largest vessels resumed to the fishing grounds in late November. Technically, all vessels have performed and functioned very well during the quarter, but limited krill availability at the end of the year led to lower than expected harvesting with 2,500 MT in the quarter vs. the expected range of 6,500-7,500 MT. This has an impact on the EBITDA for the quarter. Subsequent to the quarter, the vessels have resumed harvesting at expected levels and the biomass appears abundant.

The strong performance at the Houston facility continued in the quarter. The last twelve months oil production showed a 36% growth compared to the same period last year. The company has seen a positive development for the Houston plant through 2020 as a result of process optimization, use of big data/artificial intelligence and new management with relentless focus on improvements, the costs and efficiency gains. As a result of strong performance in Houston, the unit cost has been significantly reduced, leading to higher margins for the Superba segment this quarter as well as going into 2021.

Total sales for the quarter was USD 55.7 million, up from USD 51.1 million same period last year. Superba oil sales were down 14.8% from same period last year. The sales in Korea are picking up following the positive outcome of the regulatory process, but the market has not yet fully recovered to earlier peak volumes. Superba sales in the US have been strong this quarter with several key accounts taking large volumes. For Qrill, the sales were up 40% from the same period last year. There has been positive development in several of the key accounts in Europe as well as Asia, despite challenging economics for the Aquaculture industry during Covid-19. Both India and China are countries with high potential, where the company has secured new large customers. Sales in the Qrill Pet category also increased by 28% compared with the same period last year.

The Covid-19 situation has been monitored closely from the outbreak in early 2020, and it has been demanding for the company to carry out crew changes, implementing and ensuring adherence to all available protective measures as well to avoid an outbreak on any of the vessels. Aker BioMarine has good procedures in place, and this quarter the company was able to carry out all planned crew shifts, including shipyard workforce, without any outbreaks or operational disruption on any of the vessels. Furthermore, there were no major outbreaks or operational disruptions at the Houston plant. Additional costs have been incurred as a result of these efforts.

Brands segment

Aker BioMarine's consumer brand, Kori, that was launched in the US during the summer of 2020, has continued to grow, both out of store and with several new customers coming onboard including Sam's Club, Rite Aid, Swanson and Walgreens. Kori is now rolled-out to a total of eighteen US retailers with the majority having both physical stores and online sales. The feedback from existing retailers has been positive and sales are growing, although total sales are still lower than the original plan. The brand continues to respond well to marketing and Aker BioMarine is committed to continue to support and build the brand.

Lang delivered slightly above plan for the quarter with highest growing categories being krill, fish oil and UCII joint health. Higher gross margin, due to customer mix and operational leverage, increased the EBITDA margin to 11.2% this quarter compared to 9% the same period last year. For the year in total, 2020 has been an all-time-high with sales increasing 16% from 2019.

OVERVIEW OF NEWSFLOW DURING FOURTH QUARTER AND KEY SUBSEQUENT EVENTS

A selection of the posts below can be found at our homepage: https://www.akerbiomarine.com/news

Date	New publications and science
	Aker BioMarine launched new business segment – LYSOVETA
	A new delivery platform based on LPC-bound EPA and DHA from krill, opening new opportunities and
24/11	new markets within the brain, eye and other important health areas
1/12	New study to help dog owners determine the most effective omega-3 fatty acids for their pets' diets
	A new study put omega-3 fatty acids to the test, comparing the effects of short-chain (alpha-linolenic acid)
	versus long-chain (EPA and DHA) fatty acids in the diets of 20 Alaskan Huskies
	Aker BioMarine joined industry alliance to reduce the carbon footprint of Norwegian salmon
11/12	Aker BioMarine joins forces with The Bellona Foundation, the Norwegian Seafood Federation and six other
	major players in the fish feed industry to improve the climate footprint of Norwegian salmon
	Open Innovation Study showed no plastic in krill meal
26/12	Samples from 26 different fishmeal products, from 11 countries on four continents and Antarctica
	were collected. No plastics was detected in krill meal obtained from Antarctica
	Launch of INVI, a novel protein for human consumption
14/1	INVI is ideal for incorporation into powder and ready-to-drink beverages, as well as broader food and beverage
	applications for brands looking to grow their product portfolio with a high quality and sustainable protein source
Date	Other news
	Signed strategic partnerships and commercial frame agreement in China for 2021
9/11	At CIIE, Aker BioMarine signed one commercial frame agreement for Superba for 2021, in addition to
	three strategic partnerships. Two of the strategic partnerships are for Superba, and one for QRILL
1/12	Webjørn Barstad started as EVP Offshore
	Mr. Barstad has spent his entire career within the seafood industry, mainly on the harvesting side. Previously as CEO for Havfisk.
11/12	Aker BioMarine and the Krill industry joined forces to protect penguins in Antarctica
	Year-round protection of the largest Adélie penguin colony around Hope Bay
	Launch of AION, a new circular economy company
15/12	Capital light and technology agnostic business model to offer products and services
	to companies with a desire to recycle waste and re-use materials
	Awarded a NOK 21.5 million grant from Innovation Norway for krill protein launch plant
18/12	The launch plant requires an investment of around NOK 150 million and Innovation Norway
	will contribute NOK 21.5 million to cover operating costs for a period of three years
4/1	Aker BioMarine hired its first ever female Fish Mate
	Hege Louise Eltoft took on the role as Fish Mate for Aker BioMarine's Saga Sea vessel in Antarctica
	Signed first pharmaceutical agreement for development of therapies based on LYSOVETA
11/1	Agreement with serial biotech entrepreneur Dr. Michael Davidson to develop pharmaceutical
	therapies for brain and eye health based on LYSOVETA, LPC bound EPA/DHA
5/2	Delivery of new support vessel, the 168-meter Antarctic Provider
	Several improvements and efficiencies to Aker BioMarine's offshore operation

FINANCIAL REVIEW

The revenue development in the quarter showed an all-timehigh net sale of USD 75.5 million up from USD 71.9 million last year. The Ingredients segment showed strong sales towards the end of the year despite South Korea not yet up to full speed, and limited product availability for Qrill following a difficult harvesting season. The Brands segment showed lower growth in the quarter due to a tough comparison to the record fourth quarter 2019 and softer sales for relevant product categories in the midst of the pandemic. For 2020 as a total, the Brands segment had a strong year, with revenue up 33% from 2019.

Revenue distribution for the quarter was 69% for Ingredients and 31% for Brands compared to the same period 2019 distribution of 64% and 36%, respectively. Adjusted EBITDA was USD 21.1 million (USD 8.2 million) representing 28% (11%) Adjusted EBITDA margin in the quarter. Special Operating Items for the quarter include Kori Launch costs of USD 6.7 million (USD 17 million for FY 2020), Transaction related costs of USD 0.8 million (USD 2.6 million for FY 2020) and Other non-recurring costs of USD 3.0 million (USD 3.0 million for FY 2020). The Other adjustment relates to chartering of planes for transportation of crew between Oslo/ Moscow and Montevideo, as well as overtime paid to offshore crew that were forced to stay on the vessels in Antarctica as a result of mobility and safety restrictions.

For the Ingredients segment production efficiency improvements in Houston supported the margins for Superba in the quarter and for the full year. Sales and distribution costs in the quarter increased as a result of increased sales, but remaining G&A costs were down USD 2.2 million compared to fourth quarter 2019 as a result of cost focus in the organization. In the Brands segment, Lang performed according to plan for the quarter, but still below the record high fourth quarter 2019 with significant promotional activity by key customers. Nevertheless, 2020 has been a record year for Lang in terms of both Net Sales and EBITDA with an increase of 16% and 62%, respectively towards FY 2019. The strong EBITDA growth is a result of higher gross margins and stable cost base despite strong topline growth, increasing the EBITDA margin to 12.5% for 2020 up from 8.9% in 2019. Kori has continued to develop its foothold in the US market with new retailer customers and marketing efforts with positive effects on sales.

Total assets at period-end was USD 700.4 million, up from USD 691.2 million at end Q3 2020. The increase relates to a continued build-up of accounts receivables in the quarter.

During the quarter, the company un-winded the USD 7.8 million NMTC (New Markets Tax Credit) facility that was put in place in 2013 to finance the start-up of the Houston plant. When un-winded this was deducted from the company's liabilities and recognized as other financial income before tax. The company

has in the quarter reduced the expected earn-out commitments to the previous Lang owners because of a slightly lowered expected growth trajectory for 2021. The reduction in earn-out commitments amounts to USD 8 million and is recognized as other financial income for the quarter.

Interest bearing debt was at USD 242.8 million as of December 31, 2020. Cash and cash equivalents amounted to USD 10.7 million, implying net interest bearing debt of USD 232.1 million. Total available liquidity as of December 31, 2020 was USD 105.5 million (cash and available amounts under the RCF facilities). Cash flow from operations was positive by USD 3.2 million in the quarter as a result of lower build-up of inventory in the period, as well as no extraordinary items.

Net profit for the quarter was positive by USD 4.2 million, partly driven by the NMTC facility and the reduced Lang earn-out liability being recognized as financial income.

At the end of the quarter the company had a solid financial position with significant headroom under its financial covenants across the Group. The balance sheet totaled USD 700.4 million as of December 31, 2020. Total equity was USD 373.2 million implying an equity ratio of 53% and net debt of USD 232.1 million.

For the full year 2020, net sales were USD 288.6 million (USD 246.2 million) and Adjusted EBITDA was USD 78.1 million (USD 53.0 million) with Adjusted EBITDA margin of 27% (22%).

Risks and uncertainties

The company is exposed to credit, liquidity and interest risk in addition to operational risks and uncertainties relating to harvesting and offshore processing technologies, fluctuations in annual krill harvesting, onshore production processes and product quality, ability to develop new products, and general market risk. The ongoing Covid-19 pandemic inherently increases many of these risk factors; markets become more uncertain, operations become more vulnerable to interruptions and policy makers around the world may gravitate towards stricter regulations impacting international trade.

The company has adopted a risk management policy to identify, measure, and mitigate risks. For a more detailed discussion on market risk, credit risk, and liquidity risk, see the Annual Accounts 2019 Note 20 (Financial risk).

OUTLOOK

The company has historically seen, and also going forward will expect a natural variation in catch volumes throughout the season due to weather and occurrence of krill in the various sub-areas in Antarctica. This could result in material variations in offshore production between the quarters, but as long as the vessels are technically operating, this seasonal variation will smoothen out throughout the year, and Aker BioMarine should deliver a consistent yearly harvesting. Fishing is currently very good, and both Antarctic Endurance and Antarctic Sea have set all-time-high production per day records in February.

Realizing scale effects from the company's supply chain, and particularly through a fully operational offshore fleet, is a key driver for 2021 results. Assuming Antarctic Endurance will reach near full capacity, significant reduction will be seen in the offshore unit cost with correspondingly increased gross margins for Qrill Aqua.

Aker BioMarine will continue to expand its sales and marketing efforts to develop the company's existing and new markets with prospective leads and new customers in addition to further increase sales to current customer base. Asia is expected to be an important growth region for both Superba and Qrill Aqua.

Strategically, a main priority will be the continuous development of Lysoveta, including securing new commercial and research partnerships. In 2021 we expect our current pharma partner, MD3 to become fully financed, and kick off the development of the new drug indications. For Aion the ambition is to spin off the company during 2021/2022 when a proven business concept and value chain is established, and a strong team is in place. For INVI, the protein product launched this January, the focus is to start the building of the launch plant in Ski, Norway, and in parallel start building demand with potential customers.

The Covid-19 pandemic continues to inflict inefficiencies and extra costs, especially related to crew changes, and the company expects this to continue at least through 1H 2021.

The company continues to grow towards the communicated aspiration of reaching Adjusted EBITDA of USD 200 million in 2024.

The company is planning to move listing venue for its shares from Euronext Growth to the Oslo Stock Exchange main list during first half of April 2021. All requirements are fulfilled, except for the free float of minimum 25%. The Oslo Stock Exchange has indicated that an 18-months waiver from the 25% free float requirement most likely will be granted assuming relevant factors, like number of shareholders, market cap and current free float, remain relatively stable. As a result, the company expects no transaction or issuance of new shares in relation to the upcoming change of listing venue.

00 432	692 223
327 262	537 676
70 945	99 585
38723	51 994
32 222	47 591
256 317	438 091
45740	65 618
210 578	372 473
373 170	154 547
96 376)	(190838)
140	154
69 407	345 230
493 554	277 227
75 853	68 003

		Fourth Quarter		Year to date
Amounts in thousands of U.S. Dollars	Note	2020	2019	2020	2019
Net sales	2	75 501	71 923	288 588	246 170
Cost of goods sold	2	(48 495)	(49 339)	(179 010)	(150 891)
Gross profit		27 006	22 584	109 578	95 280
Selling, general and administrative expense	2	(26 007)	(23 730)	(86 847)	(74 200)
Depreciation, amortization and impairment	2,5,6	(4 585)	(4 669)	(17 125)	(17 822)
Other operating income/(cost), net	2	406	(189)	1 394	(495)
Operating profit		(3 181)	(6 005)	7 000	2 762
Net financial items		13 133	(11 538)	(5 059)	(26 097)
Tax expense		(5 764)	(291)	(6 151)	(415)
Net profit (loss)		4 187	(17 835)	(4 210)	(23 751)

Earnings per share to equityholders of Aker BioMarine AS

Basic	0,05	-0,26	-0,08	-0,34
Diluted	0,05	-0,26	-0,08	-0,34

AKER BIOMARINE GROUP ACCOUNTS

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

			Fourth Quarter		Year
Amounts in thousands of U.S. Dollars	Note	2020	2019	2020	2019
Net profit (loss)		4 187	(17 835)	(4 210)	(23 751)
Other comprehensive income (loss)
Defined benefit plan income gains (losses)		(79)	(111)	(79)	(111)
Total items that will not be reclassified to profit and loss		(79)	(111)	(79)	(111)
Translation differences		3	-	(11)	-
Translation differences from equity accounted investees		-	-	-	-
Total items that may be reclassified subsequently to profit and loss		3	-	(11)	-
Change in fair value cash flow hedges		2 679	-	(1 253)	-
Total items that will be reclassified to profit and loss		2 679	-	(1 253)	-
Total other comprehensive income (loss)		2 603	(111)	(1 343)	(111)
Total comprehensive income (loss)		6 790	(17 946)	(5 553)	(23 862)

INTERIM FINANCIAL STATEMENTS

AKER BIOMARINE GROUP

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

Amounts in thousands of U.S. Dollars	Note	As of 31.12 2020	As of 31.12 2019
ASSETS
Property, plant and equipment	5	266 556	302 366
Right to use assets		13 145	16 555
Intangible assets	6	189 719	190 297
Other non-interest-bearing non-current receivables		7 761	145
Investments in equity-accounted investees		130	260
Total non-current assets		477 311	509 624
Inventories	7	114 559	94 725
Trade receivable and prepaid expenses		97 885	74 264
Cash and cash equivalents		10 678	13 610
Total current assets		223 121	182 599
Total assets		700 432	692 223

LIABILITIES AND OWNERS' EQUITY
Share capital	75 853	68 003
Other paid-in equity	493 554	277 227
Total paid-in equity	569 407	345 230
Translation differences and other reserves	140	154
Retained earnings	(196 376)	(190 838)
Total equity	373 170	154 547
Interest-bearing debt	210 578	372 473
Other non-interest-bearing non-current liabilities	45 740	65 618
Total non-current liabilities	256 317	438 091
Interest-bearing current liabilities	32 222	47 591
Accounts payable and other payables	38 723	51 994
Total current liabilities	70 945	99 585

Total equity and liabilities	700 432	692 223
Total liabilities	327 262	537 676

AKER BIOMARINE GROUP ACCOUNTS

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	Fourth Quarter		Year
Amounts in thousands of U.S. Dollars	2020	2019	2020	2019
Net profit (loss) after tax	4 187	(17 835)	(4 210)	(23 751)
Tax expenses	5 764	291	6 151	415
Net interest and guarantee expenses	2 471	6 099	17 861	21 699
Interest paid	(3 348)	3 270	(30 749)	(16 520)
Interest received	426	270	871	1 084
Taxes paid	(4 351)	1 044	(3 690)	920
Impairment charges	1 202	67	43	6 155
Depreciation and amortization	12 760	11 466	48 248	36 947
Foreign exchange loss (gain)	1 576	1 045	314	790
Change in accounts receivable, other current receivables, inventories, accounts payable and other	(17 438)	10 387	(68 080)	(15 432)
Net cash flow from operating activities	3 248	16 104	(33 243)	12 307
Payments for property, plant and equipment	(9 593)	(20 567)	(21 654)	(126 906)
Payments for intangibles	-	(7)	(12 055)	(10)
Proceeds from sales of property, plant and equipments	219	231	22 012	255
Investments in subsidiary and associated companies	(356)	9	(356)	(49 284)
Net cash flow from investing activities	(9 730)	(20 333)	(12 053)	(175 946)
Proceeds from issue of debt and change in overdraft facility	5 689	10 384	(16 462)	(4 353)
Net change in external interest-bearing debt	(1 588)	(14 462)	(188 352)	142 587
Net funds from issue of shares	5	-	224 178	-
Loan from owners	-	-	23 000	36 500
Net cash flow from financing activities	4 105	(4 079)	42 363	174 735
Net change in cash and cash equivalents	(2 377)	(8 308)	(2 932)	11 096
Cash and cash equivalents beginning of the period	13 055	21 919	13 610	2 515
Cash and cash equivalents end of period	10 678	13 610	10 678	13 610

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

TOTAL
154 547
(8 397)
(3 953)
(12 350)
142 197
2 385
(3 186)
(801)
224 171
224 171
366 375
4 192
2 603
6 795
-
-
373 170

AKER BIOMARINE GROUP ACCOUNTS

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

NOTE 1 REPORTING ENTITY

Aker BioMarine AS is a limited liability company with headquarters located in Norway. The condensed consolidated interim financial statements comprise Aker BioMarine AS and its subsidiaries (the Group). The Group is a global supplier of krill-derived products, with a fully owned supply chain. The operations span from harvesting krill in the Southern Ocean with vessels owned by the Group, distribution world-wide from Uruguay, and further processing into oil-products in the United States.

Basis of accounting

Aker BioMarine's interim financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed by the European Union. The condensed interim statements are prepared in compliance with the International Accounting Standard (IAS) 34 Interim Financial Reporting and should be read in conjunction with the consolidated financial statements that are part of Aker BioMarine's Annual Report for 2019. They do not include all the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual financial statements.

The Group annual accounts of Aker BioMarine can be found at https:// www.akerbiomarine.com/investor

Judgements, estimates and assumptions

The preparation of the consolidated interim financial statements according to IFRS requires management to make judgments, estimates and assumptions each reporting period. The main judgements, estimates and assumptions are described in the annual consolidated financial statements for 2019 (note 2). Actual results may differ from these estimates.

The significant judgements made by management in the preparation of this interim financial report were made applying the same accounting policies and principles as those described within the 2019 annual report.

Rearrangements of items in the Condensed consolidated Statement of Profit or Loss

In the current quarter the Group has reclassified leasing impact and inventory adjustments from Other operating income/ (cost), net to SG&A and Cost of goods sold, respectively.

NOTE 2 OPERATING SEGMENTS

The Group's operating segments are separately managed and are segregated as they serve different markets. The identified segments are the Ingredients business, and the Brands business, see note 3 and 7 in the financial statements for the year ended 31 December 2019, for more information.

The Ingredients segment segment comprises of offshore harvesting and production, the logistical operation and the onshore manufacturing and sale of krill oil products globally to distributors and feed producers.

The Brands segment is the human consumption distribution business which comprises of Lang and Epion. Lang acquires products derived from krill, fish and plants and packages, labels and sells the products onwards to retailers in the US market. Intangible assets recognized through the acquisition of Lang is presented within "adjustments", and not within the Brands segment.

Segment performance is evaluated based on net revenues, Adjusted EBITDA and net profit.

Segment performance fourth quarter 2020

		FOURTH QUARTER 2020
USD thousands	Ingredients	Brands	Adj	TOTAL
Net sales	55 657	20 141	(298)	75 501
Cost of goods sold	(36 000)	(14 166)	1 672	(48 495)
Gross profit	19 657	5 975	1 374	27 006
SG&A	(15 786)	(10 222)	-	(26 007)
Depreciation, amortization and impairment	(3 359)	(74)	(1 152)	(4 585)
Other operating income/(cost), net	406	-	-	406
Operating profit	918	(4 321)	222	(3 181)
Net financial items	3 117	(84)	10 099	13 132
Profit (loss) before tax	4 035	(4 405)	10 321	9 951
Tax expense	(4 201)	(1 563)	-	(5 764)
Net profit (loss)	(166)	(5 968)	10 321	4 187

EBITDA reconciliation	FOURTH QUARTER 2020
USD thousands	Ingredients	Brands	Adj	TOTAL
Net profit (loss)	(166)	(5 968)	10 321	4 187
Tax expense	4 201	1 563		5 764
Net financial items	(3 117)	84	(10 099)	(13 132)
Depreciation and amortization non-production assets	3 359	74	1 152	4 585
Depreciation and amortization production assets 1)	9 549	(2)	2	9 549
EBITDA	13 826	(4 249)	1 376	10 954
Special Operating Items	3 438	6 671	-	10 109
Adjusted EBITDA	17 264	2 422	1 376	21 063
Adj EBITDA margin %	31 %	12 %	19 %	28 %
Gross profit %	34 %	30 %	4 %	35 %

1) Included in Cost of Goods Sold

Segment performance YTD 2020

		YTD 2020
USD thousands	Ingredients	Brands	Adj	TOTAL
Net sales	198 398	104 416	(14 226)	288 588
Cost of goods sold	(115 468)	(77 596)	14 054	(179 010)
Gross profit	82 930	26 820	(172)	109 578
SG&A	(57 480)	(29 367)	-	(86 847)
Depreciation, amortization and impairment	(12 254)	(261)	(4 610)	(17 125)
Other operating income/(cost), net	1 394	-	-	1 394
Operating profit	14 590	(2 808)	(4 782)	7 000
Net financial items	(12 337)	(652)	7 930	(5 059)
Profit (loss) before tax	2 253	(3 461)	3 148	1 940
Tax expense	(2 811)	(3 340)	-	(6 151)
Net profit (loss)	(558)	(6 801)	3 148	(4 210)

EBITDA reconciliation		YTD 2020
USD thousands	Ingredients	Brands	Adj	TOTAL
Net profit (loss)	(558)	(6 801)	3 148	(4 210)
Tax expense	2 811	3 340	-	6 151
Net financial items	12 337	652	(7 930)	5 059
Depreciation and amortization non-production assets	12 254	261	4 610	17 125
Depreciation and amortization production assets 1)	32 518	-	-	32 518
EBITDA	59 362	(2 547)	(172)	56 643
Special Operating Items	4 446	17 016	-	21 462
Adjusted EBITDA	63 808	14 469	(172)	78 106
Adj EBITDA margin %	32 %	14 %	18 %	27 %
Gross profit %	42 %	26 %	16 %	38 %

1) Included in Cost of Goods Sold

Segment performance fourth quarter 2019

	FOURTH QUARTER 2019
USD thousands	Ingredients	Brands	Adj	TOTAL
Net sales	51 144	28 208	(7 429)	71 923
Cost of goods sold	(32 486)	(21 783)	4 929	(49 339)
Gross profit	18 658	6 425	(2 500)	22 583
SG&A	(18 355)	(3 756)	(1 619)	(23 730)
Depreciation, amortization and impairment	(1 639)	(4)	(3 026)	(4 669)
Other operating income/(cost), net	(189)	-	-	(189)
Operating profit	(1 525)	2 665	(7 145)	(6 005)
Net financial items	(10 884)	(192)	(463)	(11 539)
Profit (loss) before tax	(12 408)	2 473	(7 608)	(17 543)
Tax expense	1 044	(1 335)	-	(291)
Net profit (loss)	(11 364)	1 138	(7 608)	(17 834)

EBITDA reconciliation	FOURTH QUARTER 2019
USD thousands	Ingredients	Brands	Adj	TOTAL
Net profit (loss)	(11 364)	1 138	(7 608)	(17 834)
Tax expense	(1 044)	1 335		291
Net financial items	10 884	192	463	11 539
Depreciation and amortization non-production assets	1 639	4	3 026	4 669
Depreciation and amortization production assets 1)	6 849	-	-	6 849
EBITDA	6 963	2 669	(4 119)	5 513
Special Operating Items	2 689	-	-	2 689
Adjusted EBITDA	9 652	2 669	(4 119)	8 202
Adj EBITDA margin %	19 %	9 %	9 %	11 %
Gross profit %	43 %	23 %	20 %	36 %

1) Included in Cost of Goods Sold

Balance sheet items		YTD 2020
USD thousands	Ingredients	Brands	Adj	TOTAL
Property, plant and equipment	266 248	308	-	266 556
Right to use asset (leasing)	12 950	195	-	13 145
Intangible assets	114 617	11 299	63 803	189 719
Cash and cash equivalents	7 774	2 903		10 678
Inventory	80 502	36 729	(2 672)	114 559
Interest-bearing debt	(180 191)	(65 458)	2 850	(242 799)
Net interest free asset and liabilities	72 069	1 549	(52 304)	21 314
Total equity	373 968	(12 475)	11 677	373 170

Balance sheet items		YTD 2019
USD thousands	Ingredients	Brands	Adj	TOTAL
Property, plant and equipment	302 026	340	-	302 366
Right to use asset (leasing)	16 555	-	-	16 555
Intangible assets	119 805	79	70 413	190 297
Cash and cash equivalents	7 981	5 629	-	13 610
Inventory	60 147	37 078	(2 500)	94 725
Interest-bearing debt	(319 554)	(58 220)	5 301	(372 473)
Net interest free asset and liabilities	(25 313)	(16 857)	(48 364)	(90 533)
Total equity	161 646	(31 950)	24 850	154 547

Segment performance YTD 2019

		YTD 2019
USD thousands	Ingredients	Brands	Adj	TOTAL
Net sales	177 402	82 153	(13 384)	246 170
Cost of goods sold	(98 238)	(63 537)	10 884	(150 891)
Gross profit	79 164	18 616	(2 500)	95 280
SG&A	(63 468)	(10 732)	-	(74 200)
Depreciation, amortization and impairment	(11 136)	(11)	(6 675)	(17 822)
Other operating income/(cost), net	(495)	-	-	(495)
Operating profit	4 064	7 873	(9 175)	2 762
Net financial items	(25 627)	(751)	281	(26 097)
Profit (loss) before tax	(21 563)	7 122	(8 894)	(23 335)
Tax expense	920	(1 335)	-	(415)
Net profit (loss)	(20 643)	5 787	(8 894)	(23 750)

EBITDA reconciliation		YTD 2019
USD thousands	Ingredients	Brands	Adj	TOTAL
Net profit (loss)	(20 643)	5 787	(8 894)	(23 750)
Tax expense	(920)	1 335	-	415
Net financial items	25 627	751	(281)	26 097
Depreciation and amortization non-production assets	11 136	11	6 675	17 822
Depreciation and amortization production assets 1)	25 109	-	-	25 109
EBITDA	40 310	7 884	(2 500)	45 694
Special Operating Items	7 345	-	-	7 345
Adjusted EBITDA	47 655	7 884	(2 500)	53 039
Adj EBITDA margin %	27 %	10 %	17 %	22 %
Gross profit %	47 %	23 %	25 %	41 %

1) Included in Cost of Goods Sold

NOTE 3 ADJUSTED EBITDA

The Executive Management Team (EMT) evaluates the performance based on Adjusted EBITDA. This metric is defined as operating profit before depreciation, amortization, write-downs and impairments, and special operating items. Special operating items include gains or losses on sale of assets, if material, restructuring expenses and other material transactions of either non-recurring nature or special in nature compared to ordinary operational income or expenses. See reconciliation and description of the Alternative Performance Measures (APM) included in this report.

The EMT has provided the following information at 31 December 2020:

	Fourth Quarter		Year
Amounts in thousands of U.S. Dollars	2020	2019	2020	2019
Net profit (loss)	4 187	(17 835)	(4 210)	(23 751)
Tax expense	5 764	291	6 151	415
Net financial items	(13 132)	11 538	5 059	26 097
Operating profit	(3 182)	(6 006)	7 000	2 762
Depreciation, amortization and impairment non-production assets	4 585	4 668	17 125	17 822
Depreciation, amortization and impairment production assets 1)	9 549	6 849	32 518	25 109
EBITDA	10 953	5 512	56 643	45 693
Special operating items	10 110	2 690	21 462	7 346
Adjusted EBITDA	21 063	8 202	78 106	53 039

1) Included in cost to inventory

NOTE 4 MEASUREMENT UNCERTAINTY

As a result of the Covid-19 outbreak during the first quarter 2020 there has been significant volatility in the global markets. A review of significant estimates and underlying assumptions has been conducted. The Group has since the early phase of the crisis started and continued monitoring of estimates for losses of receivables. As of the date of these interim financial statement, no significant changes in estimates have been performed.

Other than those explained in the Alternative Performance Measure section, the Group has not identified any impact from Covid-19 in the condensed consolidated financial statement as of 31 December 2020 which requires any changes in management's judgement, estimates or assumptions.

NOTE 5 PROPERTY, PLANT AND EQUIPMENT

As of 31 December, 2020

	Vessels, trans
	portation		Asset under	Buildings
Amounts in thousands of U.S. Dollars	equipment, etc	Machinery	construction	and Land	TOTAL
Acquisition cost as of 1 January, 2020	215 303	134 009	41 222	18 559	409 092
Investments	4 145	7 088	10 355	66	21 654
Sale of vessel			(26 336)		(26 336)
Asset retirements	(1 535)	(2 793)		(2)	(4 330)
Other reclassifications 1)	(11 307)	19 033	(12 760)		(5 034)
Acquisition cost as of 30 September, 2020	206 606	157 337	12 481	18 623	395 047
Acc. depreciation and impairment as of 1 January, 2020	(59 404)	(36 312)	(8 555)	(2 454)	(106 726)
Depreciation for the year	(15 751)	(14 571)		(554)	(30 875)
Sale of vessel			5 900		5 900
Impairment	(1 150)			(246)	(1 396)
Asset retirements	1 535	2 324		-	3 859
Other reclassifications	5 071	(4 324)			747
Acc. depreciation and impairment as of 30 September, 2020	(69 699)	(52 883)	(2 655)	(3 254)	(128 491)
Book value as of 30 September, 2020	136 907	104 454	9 826	15 369	266 556

Depreciation period	10-30 years
Depreciation method	Straight-line

3-20 years

Straight-line

As of 31 December, 2019

Amounts in thousands of U.S. Dollars	Vessels, trans portation equipment, etc	Machinery	Asset under construction	Buildings and Land	TOTAL
Acquisition cost as of 1 January, 2019	105 250	95 840	105 271	8 708	315 069
Investments	4 223	4 802	117 556	326	126 906
Investments from merger & acquisition	-	73	-	-	73
Asset retirements	-	(428)	-	-	(428)
Other reclassifications 1)	105 830	33 721	(181 605)	9 525	(32 529)
Acquisition cost as of 31 December, 2019	215 303	134 009	41 222	18 559	409 092
Acc. depreciation and impairment as of 1 January, 2019	(46 278)	(33 027)	(2 654)	(728)	(82 687)
Depreciation for the year	(14 979)	(9 952)	-	(313)	(25 244)
Impairment	-	(255)	(5 900)	-	(6 155)
Asset retirements	-	-	-	-	-
Other reclassifications	1 853	6 921	(1)	(1 413)	7 360
Acc. depreciation and impairment as of 31 December, 2019	(59 404)	(36 312)	(8 555)	(2 454)	(106 726)
Book value as of 31 December, 2019	155 899	97 696	32 667	16 105	302 366

Depreciation period Depreciation method 10-30 years Straight-line

3-20 years Straight-line

Specification depreciation and amortization

Amounts in thousands of U.S. Dollars	As of 31.12 2020	As of 31.12 2019
Depreciation for the year for property, plant & equip	(30 875)	(25 244)
Impairment	(1 396)	(6 155)
Amortization for the year Intangible assets	(10 991)	(8 699)
Leasing (ROU) depreciation	(6 381)	(2 833)
Total	(49 643)	(42 931)
Depreciation, amortization and impairment non-production assets	(17 125)	(17 822)
Depreciation, amortization and impairment production assets	(32 518)	(25 109)

NOTE 6 INTANGIBLE ASSETS

Movements in intangible assets as of December 31, 2020:

As of 31 December, 2020

			License agree	Fishing	Customer
Amounts in thousands of U.S. Dollars		Goodwill Development	ments	licences		relation Trademark	TOTAL
Acquisition cost as of 1 January, 2020	94 557	5 318	2 396	10 500	91 293		5 675 209 739
Additions - external cost	55				10 000		10 055
Acquisition					357		357
Asset retirements							-
Reclassifications							-
Acquisition cost as of 31 December, 2020	94 612	5 318	2 396	10 500	101 650		5 675 220 151
Amortization and impairment losses as of 1 January, 2020	-	(5 245)	(578)	-	(13 619)		- (19 442)
Amortization for the year			(532)		(10 459)		(10 991)
Impairment							-
Asset retirements							-
Reclassifications							-
Amortization and impairment losses as of 30 September, 2020	-	(5 245)	(1 110)	-	(24 077)		- (30 432)
Book value as of 31 December, 2020	94 612	73	1 286	10 500	77 573		5 675 189 719

Movements in intangible assets as of December 31, 2019

As of 31 December, 2019

Book value as of 31 December, 2019	94 557	73	1 818	10 500	77 674		5 675 190 297
31 December, 2019
Amortization and impairment losses as of	-	(5 245)	(578)	-	(13 619)		- (19 442)
Reclassifications	-	-	151		(151)	-	-
Asset retirements	-	-	23 118		-		- 23 118
Impairment	-	-	-		-	-	-
Amortization for the year	-	(83)	(377)		(8 239)		- (8 699)
Amortization and impairment losses as of 1 January, 2019	-	(5 162)	(23 469)		(5 229)		- (33 860)
Acquisition cost as of 31 December, 2019	94 557	5 318	2 396	10 500	91 293		5 675 209 739
Reclassifications	-	-	-	10 500	-		- 10 500
Asset retirements	-	-	(23 118)		-		- (23 118)
Acquisition Lang	28 156	-	-		46 174		- 74 330
Additions - external cost					9		9
Acquisition cost as of 1 January, 2019	66 401	5 318	25 514		45 110		5 675 148 018
Amounts in thousands of U.S. Dollars		Goodwill Development	ments	licences		relation Trademark	TOTAL
			License agree	Fishing	Customer

NOTE 7 INVENTORIES

Inventories are measured at the lower of actual production cost (including freight) and net realizable value. Acquisition cost is based on the actual cost of warehoused materials. The cost of finished goods and work in progress comprises the costs of raw materials, direct labor and other direct costs, and related production overheads. Indirect costs allocated to inventories, includes salaries, depreciation and certain other operating expenses. The company assigns cost of inventories using a weighted average cost formula.

During 2020 there has been a build-up of inventory in the Ingredients segment, from USD 57.6 million at 31 December 2019 to USD 77.8 million as of 31 December 2020. The inventory levels have been relatively flat in the Brands segment throughout the periods. In the Ingredients segment the vessels started their production in the quarter producing 2 516 MT of krill meal, and the factory in Houston produced 317 MT krill oil.

Amounts in thousands of U.S. Dollars	INGREDIENTS	BRANDS	TOTAL
Raw materials	-	9 943	9 943
Goods under production/ Semi finished	-	14 252	14 252
Finished goods	77 830	12 534	90 364
Inventory at 31 December, 2020	77 830	36 729	114 559

Amounts in thousands of U.S. Dollars	INGREDIENTS	BRANDS	TOTAL
Raw materials	-	9 015	9 015
Goods under production/ Semi finished	-	12 289	12 289
Finished goods	57 647	15 774	73 421
Inventory at 31 December, 2019	57 647	37 078	94 725

NOTE 8 EQUITY INFORMATION

At 2 July 2020 the share capital of Aker BioMarine AS was changed to NOK 525.516.516 divided on 87 586 086 shares. Before the Euronext Growth market listing the number of shares was 69 053 544. At quarter end the share price was NOK 117.50.

NOTE 9 SUBSEQUENT EVENTS

Delivery of Antarctic Provider

In February 2021 a Group company, Aker BioMarine Antarctic AS, took delivery of its new state-of-the-art supply vessel, The Antarctic Provider. Antarctic Provider was delivered at the CIMC Raffles yard in Yantai, China 5 February 2021 and is expected to be operational early Q2 2021. The vessel will immediately enter service, and fully replace La Manche, the Groups existing supply vessel, before its class expires in October 2021. Compared with La Manche, Antarctic Provider offers several improvements and efficiencies to the Groups offshore operation and is expected to generate savings for the years to come. Antarctic Provider was delivered on time, and on budget. Total project purchase price amounted to USD 75.0 million which was 80% debt financed, including a facility tranche from GIEK and Export Credit Norway.

ALTERNATIVE PERFORMANCE MEASURES (APMS)

Alternative performance measures, meaning financial performance measures not included within the applicable financial reporting framework, are used by the Group to provide supplemental information by excluding and including items that in management's view, do not give indications of the periodic operating results. The APMs are used to enhance comparability of the results across periods, and management uses these measures internally when assessing performance in terms of long- and short-term business plans. The measures are adjusted IFRS measures, and are defined, calculated and consistently applied in the Group's financial reporting. The Group focuses on EBITDA, Adjusted EBITDA, EBITDA Margin, Adjusted EBITDA Margin, Gross Margin and CAPEX when presenting the period's financial result internally and externally.

The APMs should not be considered as substitute for measures of performance in accordance with applicable financial reporting framework.

The Group uses the following APMs in the reporting:

• EBITDA: Net profit (loss) for the period before net financial items, income tax expense, total depreciation, amortization and impairment
• Adjusted EBITDA: EBITDA adjusted for Special Operating Items
• EBITDA Margin %: EBITDA divided by Net sales
• Adjusted EBITDA Margin %: Adjusted EBITDA divided by Net sales
• Gross Margin %: Gross profit divided by Net sales
• CAPEX: The sum of Payments for property, plant and equipment and payments for intangibles (included in the condensed consolidated statement of cash flow)

Special Operating Items

The Group defines significant items of income and expenditure as "Special Operating Items" (which is also the wording used in the Group's financing agreements).

As per the Group's APM guideline, Special Operating Items encompass the following definitions:

• Restructuring costs: In the event of the initiation of a restructuring program as defined in IAS 37 Provisions, Contingent Liabilities and Contingent Assets as a restructuring program that materially changes the scope of a business or the manner in which it is conducted. • Launch costs: Costs related to the launch of a new brand. Examples of relevant costs are employment of management team, R&D on
• packaging and capsules, general start-up cost, and marketing costs from start to end of the launch campaign.
• Transaction related costs: These costs include fees to legal and tax advice related to a share issues (unless not carried towards equity) or M&A valuation fees, underwriting fees, roadshow costs, and certain bonus schemes directly linked to such transactions.
• Settlements: In the event the Company has paid to or received settlements from other parties.
• Legal and consulting expenses: Litigation expenses related to lawsuit settlements, legal and consultancy fees.
• Gains/ losses on sale of assets: The sale of property, plant and equipment and intangible assets, and any (material) gains or losses are considered non-recurring.
• Impairments: When the (reversal of) impairment is the result of an isolated, non–recurring event, this is considered non-recurring.
• Unrealized gains/losses on financial instruments: Unrealized effects related to financial instruments are not part of the company's normal operations, and any unrealized gains or losses are adjusted.
• Other: Other material transactions which are special in nature compared to ordinary operational income or expenses.

The following table reconciles EBITDA and Adjusted EBITDA to Net profit (loss) in the condrenied consolidated statements of profit or loss. 'Depreciation, amortization and impairment non-production assets' in the below table is derived directly from the corresponding line item 'Depreciation, amortization and impairment'. 'Depreciation, amortization and impairment production assets' in the below table can be reconciled with information in Note 5 'Property, plant and equipment' under line items 'Depreciation for the year' and 'Impairment'.

Adjusted EBITDA reconciliation

	Fourth Quarter		Year
Amounts in thousands of U.S. Dollars	2020	2019	2020	2019
Net profit (loss)	4 187	(17 835)	(4 210)	(23 751)
Tax expense	5 764	291	6 151	415
Net financial items	(13 132)	11 538	5 059	26 097
Operating profit	(3 182)	(6 006)	7 000	2 762
Depreciation, amortization and impairment non-production assets	4 585	4 668	17 125	17 822
Depreciation, amortization and impairment production assets	9 549	6 849	32 518	25 109
EBITDA	10 953	5 512	56 643	45 693
Juvel gain and operating cost - 'Gains/ losses on sale of assets'	(63)	467	(1 052)	1 784
Patent dispute - 'Legal expenses'	(229)	481	362	836
Lang transaction - 'Transaction related costs'	-	-	(90)	1 298
Kori national brand US launch - 'Launch cost'	6 671	1 742	17 016	3 428
Oslo Børs listing - 'Transaction related costs'	749	-	2 245	-
Private charter flights - 'Other'	1 519	-	1 519	-
Crew cost - 'Other'	1 462	-	1 462	-
Total special operating items	10 110	2 690	21 462	7 346
Adjusted EBITDA	21 063	8 202	78 105	53 039

Juvel gain and operating cost:

In 2018 there was a fire in the superstructure when the vessel Juvel was docked in Montevideo. In 2019, the vessel had not in any way been used in the ordinary course of business as intended by management. As part of the repair work the Group incurred significant costs while in Montevideo. These costs are recognized in the Profit or loss and have been reimbursed from the Group's insurer. The vessel was sold in Q2 2020, yielding a net gain which has been adjusted out as a Special operating Item. For further details concerning the sale of the vessel, please refer to note 5.

Lang transaction:

On 1 March 2019 the Group acquired Lang Pharma. The transaction related costs have been booked as an operating expense and recognized in the Profit or loss under IFRS 3 'Business Combinations'. Given the complexity of the transaction and being cross-border, transaction related costs have been material. The amount is non-recurring, and no Lang acquisition costs are recognized after Q4 2019. For further detail on the Lang transaction see the annual financial statements from 2019.

Patent disputes:

During 2019 and 2020 the Company has been in certain legal disputes regarding production related assets. Given the complexity of the legal proceedings, costs have been material.

Kori national brand US launch:

As part of the Lang transaction, the Group is launching its own national brand in the US. The incurred costs are material and will continue through 2020. These costs include employment of Epion management team, R&D on packaging and capsules, general start-up costs, and significant market development costs. Furthermore, these costs are deemed material and non-recurring after the launch of Kori.

Oslo Børs listing:

Include costs associated with the Euronext Growth (previous name: Merkur Market) listing as well as cost associated with the listing on Oslo Børs. Costs directly attributable to the listing has been posted as merger costs, and netted with the raised amount in equity, but the Company also recognized other costs related to audit, due diligence work, investor presentations / roadshow, and advice which has been considered non-recurring in nature and has been included as a Special Operating Item.

Private charter flights:

The Group is dependent on getting crew in and out of Antarctica safely. With significant restrictions on global travel for large parts of 2020 limiting the availability of commercial flight options, the Group made extensive use of private charter flights from one specific vendor. This was done to ensure that the harvesting operation could continue as planned whilst maintaining the safety of the crew. In total, planes were chartered for 6 trips between Oslo and Montevideo and 3 trips between Moscow and Oslo, resulting in a cost of USD 2.1 million during the year. These costs were recorded as cost to inventory (i.e. no impact on Profit or loss in that period) as per the Group's accounting policy. The cost of flying the equivalent number of crew commercially is estimated at USD 0.25 million, resulting in an estimated net incremental cost of USD 1.85 million. The 'Cost of goods sold' impact after these expenses is estimated to USD 1.5 million and is as such considered material and non-recurring in nature compared to ordinary operational expenses.

Crew cost:

The Group's crew are entitled to overtime payments for any amount of time worked beyond their contractually defined shift duration. A challenging travel environment in 2020 meant that it was, in some cases, logistically impossible to get crew home from the Southern Ocean before their shift ended. This resulted in a total of USD 2.1 million in overtime payments during the year. The 'Cost of goods sold' impact after these expenses is estimated to USD 1.4 million and is as such considered material and non-recurring in nature compared to ordinary operational expenses.