Aker BioMarine

Quarterly Report • Apr 26, 2024

First Quarter Report 2024

THIS IS AKER BIOMARINE

Aker BioMarine is a leading biotech innovator and Antarctic krill-harvesting company developing krill-derived products for consumer health and wellness as well as animal nutrition. The company has a strong industry position 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 consist of four segments:

1) Feed Ingredients including Qrill Aqua and Pet, our harvesting operations in Antarctica and Uruguay distribution hub. The segment sells krill meal as marine ingredients into the aqua and pet industry globally.

2) Human Health Ingredients including Superba, Lysoveta, Algae and our Houston manufacturing plant. The segment sells B2B krill oil supplements to nutritional brands for humans around world.

3) Consumer Health Products including Lang Pharma Nutrition, a producer and distributor of private labels within the vitamin and supplement categories, to the largest retailers in the US market.

4) Emerging Businesses, including Epion, Aker BioMarine's consumer brand company that sells our own krill oil brand, Kori krill oil to the largest retailers in the US., Aion AS, a circular plastic company, and Understory Protein, a novel protein product developed for the B2B sports segment.

Aker BioMarine is committed to have a positive impact on human health, without compromising the health of the planet. We aim to deliver krill products that support nutritious and sustainable diets and have set a path towards 50% reduction of CO2-emissions intensity by 2030, with the longterm target being carbon neutral by 2050. The company's bank loan is established as a sustainability linked facility with ESG KPIs that are reported on an annual basis.

FIRST QUARTER HIGHLIGHTS

• Revenue of USD 78.3 million in the quarter, up 13% from USD 69.1 million in the same quarter last year
• Adjusted EBITDA of USD 15.2 million, up from USD 6.0 million in the same quarter last year¹ . The Adjusted EBITDA margin was 19% compared to 9% in the same quarter last year.
• Qrill Aqua sales increased by 33%, and Superba krill oil sales increased by 11% compared to same quarter last year.
• Krill offshore production volume was 21,306 MT in the quarter compared to 19,852 MT in the same quarter last year.
• The drone was commissioned on the harvesting ground with proven ability to identify krill.
• Korean FDA awarded an additional health claim for skin health to Superba Krill Oil.
• The company has launched its new algae oil brand, FloraMarine.
• The company announced a strategic review for the Feed Ingredients business.
• Aker BioMarine won the prestigious Norwegian Export Prize 2024

¹Please see segment review for Feed Ingredients for more details.

GROUP FINANCIAL SUMMARY

		First Quarter	Year
USD million	2024	2023	2023
Net sales	78.3	69.1	335.3
Gross margin	29%	30%	34%
Operating profit (loss)	-5.6	-9.4	5.3
Net profit (loss)	-11.9	-17.6	-9.0
Adjusted EBITDA1	15.2	6.0	70.0
Cash flow from operations	-1.5	-5.4	47.4
Cash flow related to CAPEX	-4.6	-8.4	-49.3
Equity	354.7	356.8	366.5
Total assets	813.5	817.6	827.1
Net interest-bearing debt	371.6	372.7	365.4

¹ See Note 3 and separate disclosure covering the Aker BioMarine Group's use of Alternative Performance Measures (APMs).

SEGMENT REVIEW

Aker BioMarine completed a company restructuring end of 2023 and has changed its reporting format according to new business segments starting in Q1 2024. The previous two segments (Ingredients and Brands) have been deconsolidated into four new segments; Feed Ingredients, Human Health Ingredients, Consumer Health Products and Emerging Businesses. The new financial reporting, legal entities and operational structure will improve each business unit's strategy, operations, and financials, and result in increased transparency of the development of earnings in the business segments.

Going forward, the company will explore how the increased focus and flexibility can drive shareholder value by enabling potential partnerships and transactions for each of the entities. A strategic review for Feed Ingredients was announced in the quarter.

FEED INGREDIENTS

Sales in the segment were USD 30.8 million for the quarter, up 41% from the same period last year at comparable figures. Qrill Aqua sales increased 33% compared to the same quarter last year, driven by higher volumes and higher prices. The market sentiment continues to be strong. Furthermore, also Qrill Pet increased sales with 160% compared to same period last year as a result of a new large contract on prices at or above same period last year. QHP (Qrill High Protein) sales are now recognized in the Human segment as it is a biproduct from krill oil production at the Houston plant. The Feed Ingredients segment receives a 6% royalty to facilitate and administrate the sale of QHP.

Offshore production volume was 21,306 MT in the quarter compared to 19,852 MT same quarter last year. The harvesting has developed well so far this year, and YTD production on April 25 is 10% above same period last year. As part of the improvement program, the company has tendered its fuel supply and signed a contract with a new supplier for fuel delivery at a fixed spread delivered at or close to the fishing ground. Assuming stable underlying oil prices and good harvesting, this will result in savings of several million dollars per year due to lower spread and, more importantly, fewer fishing days lost during peak season as Antarctic Provider can avoid trips to Rio Grande or Falkland for bunkering. The first bunkering at the fishing ground took place in March.

The drone was deployed at sea and has been scouting for krill. On several occasions, the drone has identified larger shoals of krill and, as a result, the vessels have changed their position. The drone has operated within a relatively close proximity to the vessels during its commissioning phase, but as the technology is now tested and tuned, longer reach trips can be done.

The segment reported an Adjusted EBITDA of USD 11.2 million in the quarter, up from USD 2.2 million same period last year. The significant increase is mainly due to a change in the company's cost estimation decided in Q4 2023 with regards to how offshore costs are booked in the Feed Ingredients segment. The accounting effect of the change is reduced volatility in gross margin and increased correlation between gross margin and harvesting during the year. This has resulted in a higher gross margin in the Feed Ingredient segment for Q1 2024 compared to Q1 2023. Please see note 4 for more details.

HUMAN HEALTH INGREDIENTS

Sales in the segment were USD 22.4 million in the quarter, up 13% from the same period last year at comparable figures. Sales of Superba krill oil increased by 11% compared to the same quarter last year. The turnaround plan that was launched in 2022 is yielding results and US showed strong growth in the quarter and so did most other regions. Our main customer in South Korea had a new health claim for skin health approved by the South Korean Ministry of Food and Drug Safety, which will support the advertising and sales strategy in Korea going forward.

Aker BioMarine launched its algae oil brand, FloraMarine at the Natural Products Expo West in March. The company received orders for 100 MT of Algae oil in 2023 for delivery in 2024. Houston is currently ramping up its algae oil production capacity and started shipping in the quarter.

The production plant in Houston has ramped up production capacity and is producing at normalized levels. The preparation for Lysoveta commercial sales is ongoing and the company is planning for a new clinical trial to take place in 2025.

From first quarter 2024, sales of QHP (Qrill High Protein) is recognized as part of the Human segment, but reported separately from the krill oil sales.

The segment reported an Adjusted EBITDA of USD 9.0 million in the quarter, up from USD 6.0 million same period last year at comparable figures.

CONSUMER HEALTH PRODUCTS

Lang Pharma Nutrition had sales of USD 26.1 million, down 19% compared to same quarter last year. First quarter last year had significant promotional activity from one of the clubs that drove sales. However, gross margin remains on par with same period last year at 23%.

The segment reported an Adjusted EBITDA of USD 1.8 million in the quarter, down from USD 2.8 million same period last year at comparable figures. Adjustments of USD 0.5 million is related to severance packages from a restructuring effort. Adjusted EBITDA margin was low at 6.5% compared to 8.7% same period last year due to lower sales on a relatively fixed SG&A cost base.

EMERGING BUSINESSES

The segment reported USD 3.1 million in gross sales from Kori krill oil which is 31% lower compared to same period last year. This is mainly driven by the exit of Costco from Kori krill oil during 2023. Online sales on Amazon continue to grow with a POS (sales out of stores) growth at 50% this quarter compared to first quarter last year. The Kori krill oil has won distribution with Costco Japan and has also signed a strategic partnership agreement with one of Aker BioMarine's largest customers in China for licensing out the Kori krill oil brand in China.

The protein launch plant in Ski, Norway is producing test batches for customer samples. Customer dialogues are ongoing, and the product is currently undergoing formulation studies to improve and finalize the commercial product. A strategic partnership agreement was signed with a large Chinese customer for sale of the protein product once commercial batches are ready.

The segment reported an Adjusted EBITDA of USD -1.1 million in the quarter, up from USD -3.7 million from same period last year at comparable figures.

Offshore production and revenue per product/segment

	Unit	Q1-23	Q2-23	Q3-23	Q4-23	Q1-24	2023
Offshore production	Tons	19,852	17,846	12,073	879	21,306	52,042
Krill meal revenue (Qrill Aqua + Pet+ Asta)	USD mill.	21.7	41.3	41.6	33.5	30.7	168.8
Nutra meal revenue (sale to HHI)	USD mill.	-	-	-	19.8	-	19.8
Krill oil revenue (Superba + PL+)	USD mill.	18.3	20.7	20.9	19.3	20.2	79.2
Other human ingredients revenue (Algae and QHP)	USD mill.	1.6	0.1	1.8	1.7	2.0	5.2
Consumer Health Products revenue (Lang)	USD mill.	32.2	28.7	30.8	30.5	26.1	122.2
Emerging Businesses revenue (Epion)	USD mill.	4.5	2.6	1.8	2.1	3.1	14.1

GROUP FINANCIAL REVIEW

Revenue in the quarter was USD 78.3 million, up 13% from the same period last year. Gross revenue distribution in the quarter was 37% for Feed Ingredients, 27% for Human Health Ingredients, 32% for Consumer Health Products and 4% for Emerging Businesses.

Adjusted EBITDA in the quarter was USD 15.2 million, a significant increase from USD 6.0 million same period last year. The increase is driven by higher sales in Feed Ingredients and Human Health Ingredients, and the above-mentioned change in cost estimation for Feed Ingredients (see Segment Review and Note 4 for more details). This change results in lower unit cost for Qrill meal end of year leading to an improved gross margin for Qrill Aqua in the first quarter at 12%, up from zero same quarter last year. The margin increase in the beginning of the year will be balanced with lower margins second half of year.

Gross margin for the Human Health Ingredients segment was slightly up from same quarter last year as Houston production has been ramping up since Q4 2023, driving improved margins for Superba krill oil as the more expensive krill oil inventory is sold. In addition, customer and product mix drove gross margins up. Starting this quarter as a result of the restructuring, the Human segment will purchase nutra meal from the Feed Ingredients segment as raw material for the Superba production process at a fixed price with an annual index regulation. As the Human segment purchased the entire nutra stock from Feed Ingredients per 31.12.23 at the fixed price, there were no nutra sales in the quarter between the segments. For the segment in total, gross margin development will be somewhat diluted by the QHP (Qrill High Protein) and algae oil business as it grows, now part of the Human Health Ingredients, with a gross margin slightly below the krill oil. The gross margin for the Consumer Health Product segment was on par with same quarter last year.

Gross margin for the Group was 29%, on par with same period last year, mainly due to lower profit realization from internal sales.

SG&A for the Group is down in the quarter compared to first quarter last year. First quarter last year reported high SG&A cost due to severance packages in the Feed Ingredients and Human Health Ingredients in relation to the downsizing. However, also on a like for like, there is a positive cost development in the segments as a result of the improvement programs that was initiated early 2023. Epion has cut their marketing budget as they have moved to online marketing resulting in lower SG&A in the Emerging Business segment than comparable figures same period last year. With the new segment structure each segment reports SG&A cost directly attributable to their operations and resources. All overhead and corporate cost (finance, legal, ESG, HR, communication and IT compliance) is booked under "Other/elim" and financed through a management fee structure. The Consumer Health Products segment has all their corporate cost embedded in the segment figures as Lang is a fully autonomous entity.

The Adjusted EBITDA from Feed Ingredients and Human Health Ingredients is significant at USD 20.2 million for the quarter compared to USD 8.2 million at comparable figures same period last year. Consumer Health Products (Lang) reports an Adjusted EBITDA of USD 1.7 million, while Emerging Business reports a negative Adjusted EBITDA of USD -1.1 million in the quarter and will continue to report negative EBITDA throughout the year as the current portfolio of assets is moving through their restructuring phase with corresponding plans.

The EBITDA adjustments of USD 3.4 million in the quarter includes cost related to the ongoing strategic review process for Feed Ingredients as well as severance packages in Lang from a restructuring initiative.

		First quarter 2024
		Human
	Feed	Health	Consumer	Emerging
USD million	Ingredients	Ingredients	Health Products	Businesses	Other/elim	Total
EBITDA	11.2	8.9	1.3	-1.1	-8.6	11.8
Adjustment items	-	0.1	0.5	-	2.9	3.4
Adjusted EBITDA	11.2	9.0	1.8	-1.1	-5.7	15.2

	First quarter 2023
		Human
	Feed	Health	Consumer	Emerging
USD million	Ingredients	Ingredients	Health Products	Businesses	Other/elim	Total
EBITDA	1.5	5.8	2.8	-3.8	-3.3	3.0
Adjustment items	0.7	0.2	-	0.1	1.9	3.0
Adjusted EBITDA	2.2	6.0	2.8	-3.7	-1.4	6.0

As of 31 March, total assets were USD 813.5 million, down from USD 817.6 million at same period last year. All relevant items are amortized and depreciated according to plan, but offset by the newbuilt Ski protein plant that was finished in Q3 2023, and the inclusion of a deferred tax asset of USD 25 million that was recognized in Q4 2023.

Total interest-bearing debt was at USD 403.6 million, including leasing commitments of USD 8.3 million as of 31 March. Cash amounted to USD 32.0 million, implying net interest-bearing debt of USD 371.6 million, down from USD 372.7 million same period last year.

As of 31 March, total available liquidity was USD 43.1 million, consisting of cash and available amounts under the debt facilities.

Cash flow from operations was negative by USD 1.5 million in the quarter, with a negative change in working capital due to lower payables as large shipyard payments from end of 2023 fell due in first quarter. Cash flow from investing activities was negative USD 4.6 million and included payments for shipyard end of 2023. Net cash flow was positive at USD 4.4 million in the quarter.

The company is within the leverage threshold of 5.0:1 in its financing facility (net interest-bearing debt / 12 month Adjusted EBITDA).

Net loss for the quarter was USD 11.9 million.

Total equity was USD 354.7 million, implying an equity ratio of 44%.

HEALTH, SAFETY, SECURITY AND THE ENVIRONMENT

Aker BioMarine works closely with all stakeholders to ensure the well-being of people, environment, and communities in vicinity of our operations. In response to the evolving reporting requirements with CSRD and the introduction of AKBM's new company structure, effective January 1, 2024, Aker BioMarine have embarked on a comprehensive review of the Company's ESG Ambitions to be finalized in 2024. The company is currently working on process optimalization, more efficient offshore operations and energy efficiency measures to reduce the CO² intensity. The transport vessel Antarctic Provider is an example of a sustainability measure which makes a substantial contribution towards our goal by being highly fuel efficient. Another example is the heat recovery project installed on the Antarctic Sea in 2022, which is yielding significant fuel savings.

Sick leave rates are low onboard the vessels, at the factory in Houston, and in the office locations.

Aker BioMarine is committed to a goal of zero harm to people and the environment, and our targets are supported by a forward leaning HSSE roadmap designed for continuous performance improvement. Ultimately, HSSE is all about keeping our people safe at all times, in everything we do and, wherever we are in the world.

The company is well underway preparing for compliance with the Corporate Sustainability Reporting Directive (CSRD) and will start to report according to this framework for the financial year 2025.

	Unit	Q1-23	Q2-23	Q3-23	Q4-23	Q1-24	2023	LTM
CO2 per group revenue1	Kg/USD	0.5	0.4	0.3	0.2	0.5	0.3	0.3
Lost Time Injuries (LTI)2	Amount	-	-	1.0	-	1.0	1.0	2.0
Sick leave3	Percent	0.9 %	0.6 %	0.4 %	0.7 %	0.4 %	0.7 %	0.7 %

1 From 2024 the group has started reporting on CO² per group revenue (kilograms per USD) instead of CO² per tons qrill meal produced. Historical figures are updated in according to new reporting. CO² emissions include Scope 1, 2 and 3.

2 LTI: any injury that causes the person to be off work the following day.

³Sick leave: all sites and vessels.

RISKS AND UNCERTAINTIES

The company is exposed to market, commercial, operational, regulatory, financial and liquidity risks that affect the assets, liabilities, available liquidity, and future cash flows. The company's largest risks are fluctuations in annual krill harvesting, product quality, ability to develop new products, and market and price risk for sale of products.

The company is also exposed to climate risk, and the exposure is assessed using the TCFD framework. Access to continuous harvesting in the Antarctic as well as climate changes affecting the krill biomass could significantly affect the offshore operations. In addition, climate changes creating a more challenging operational environment both offshore, but also for the onshore plant in Houston could significantly impact the company's ability to operate effectively.

Aker BioMarine employs vessel crew from both Russia and Ukraine through third-party crewing agencies. With regards to Russia's invasion of Ukraine, the Company is continuously assessing how to provide support to the crew in these challenging times, while continuing krill harvesting operations. Aker BioMarine has taken measures to ensure that the krill harvesting can be operated as normal throughout this period, although the cost of crew travel has increased.

The company has adopted a risk management policy to identify, measure, and mitigate risks. For a more detailed discussion on risk, see the Annual Accounts 2023; Operational Risk and Opportunities chapter and Note 20 (Financial risk).

OUTLOOK

FEED INGREDIENTS

Analysis from several sources (Kontali, BCG research, Rabobank) show that the aquaculture industry will increase inclusion of marine ingredients in certain diets to improve biology and quality. This might lead to increased prices during the coming decade as wild fisheries are at their limit and cannot increase output even to cope with aquaculture's base growth. Qrill Aqua should benefit from this trend and we could expect higher prices with slightly increased production in the coming years. Contracted sales of raw materials to Human Health Ingredients at premium prices will impact the product mix positively.

Over time, production is expected to exceed 60,000 MT with the USV drone now deployed and continuous efforts underway to improve yield for the existing fleet. Further growth can be unlocked by investing in a new vessel, which may also justify an expansion to CCAMLR's Area 58.

HUMAN HEALTH INGREDIENTS

According to the NBJ Supplement Business Report from 2022, the global nutrition market is expected to continue its positive trend of 4% annual growth on the back of a growing middleclass in emerging markets and increased focus on a healthy lifestyle globally. Most governments recommend their population to increase their intake of Omega-3s, which will continue to drive increased adoption. With the company's differentiated and documented Omega-3 offering we expect a higher market share in the expanding Omega-3 market.

Long term Superba sales is expected to grow across most sales regions at stable prices only affected by product mix. Several Asian markets are expected to demonstrate high annual sales growth over the next years, whereas other more mature regions trend closer to gross domestic product growth.

Product portfolio expansions PL+, Algae and Lysoveta will enable growth outside the core Superba products and beyond krill. Houston will have enough capacity to supply required krill and algae oil volumes short to medium term, and the company has identified debottlenecking initiatives for the longer term.

Based on an increased Superba sales, the production at the Houston facility will ramp up. This would drive a gradual margin improvement throughout the year with full effect expected from 2025 onwards.

CONSUMER HEALTH PRODUCTS

The private label market in the US follows the positive trends of the human health ingredients market with a general increased focus among retailers on private label offerings to compete with the growing e-commerce market.

Growth will be driven by private label product innovation across the major US retailers. New product categories and new retailers are key drivers for future growth.

EMERGING BUSINESSES

The ambition is to turn loss making business units into profitable companies. We expect losses to be significantly reduced in 2024.

Meanwhile, we will consider partnerships and other types of transactions to the extent we can accelerate that objective and create more competitive units that can grow profitably at higher rates.

FINANCIAL

All major capital projects have been completed, and 2024 capital expenditures will be related to maintenance and smaller improvement projects totaling USD 15-20 million, excluding operational costs related to yearly maintenance booked to fixed assets in the fourth quarter.

OVERVIEW OF NEWSFLOW DURING FOURTH QUARTER AND KEY SUBSEQUENT EVENTS

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

DATE OTHER NEWS

15 Feb	Aker BioMarine's collaborative venture with the Norwegian Institute of Marine Research This month, Aker BioMarine proudly handed over control of the Antarctic Provider to scientists from the Institute of Marine Research (IMR) for 12 days of critical work on krill biomass and ecosystem monitoring in Antarctica.
March	Krill contributes to improved reproductive performance in Nile tilapia (the second most farmed fish in aquaculture) A recently published study conducted by Spring Genetics Tilapia in Miami, Aker BioMarine Antarctic AS, and LABOMAR (the Marine Sciences Institute in NE Brazil) evaluated whether krill meal in the diet impacted reproductive performance of Nile tilapia and the quality and quantity of offspring. The study concluded that krill meal inclusion resulted in positive effects on Nile tilapia's reproductive performance and higher survival of larvae.
12 March	Aker BioMarine won the prestigious Norwegian Export Prize 2024 Aker BioMarine was honored with this year's Export Award during "Eksportkonferansen" under the auspices of Eksfin and Innovation Norway. Aker BioMarine convinced the jury that it is possible to achieve export success through a targeted, sustainable and innovative business strategy

CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS

		First Quarter
USD million	Note	2024	2023	2023
Net sales	2	78.3	69.1	335.3
Cost of goods sold	2	-55.9	-48.2	-222.4
Gross profit		22.4	20.9	112.9
Selling, general and administrative expense	2	-22.6	-25.6	-90.5
Depreciation, amortization and impairment	2, 4, 5	-5.4	-4.7	-21.1
Other operating income	2		-	4.0
Operating profit (loss)		- -5.6	-9.4	5.3
Net financial items Tax expense		-6.1 -0.3	-7.6 -0.6	-39.3 25.0
Net profit (loss)		-11.9	-17.6	-9.0
Earnings per share to equity holders of Aker BioMarine ASA
Basic		-0.07	-0.20	-0.10
Diluted		-0.07	-0.20	-0.10

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

		First Quarter
USD million	Note	2024	2023	2023
Net profit (loss)		-11.9	-17.6	-9.0
Change in fair value cash flow hedges		-	-4.3	4.7
Total items that will be reclassified to profit and loss		-	-4.3	4.7
Total other comprehensive income (loss)		-	-4.3	4.6
Total comprehensive income (loss)		-11.9	-21.9	-4.4

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

USD million	Note	As of 31.03.2024	As of 31.03.2023	As of 31.12.2023
ASSETS
Property, plant and equipment	4	332.9	333.2	341.5
Right to use assets		7.9	8.8	9.1
Intangible assets and goodwill	5	152.9	160.2	155.4
Contract cost		2.7	4.7	3.2
Deferred tax asset		25.7	2.6	25.0
Other interest-bearing non-current receivables		2.7	2.4	2.7
Investments in equity-accounted investees		0.1	10.2	0.1
Total non-current assets		524.9	522.1	537.0
Inventories	6	184.2	184.5	183.7
Trade receivable and prepaid expenses		65.3	75.2	71.5
Derivative assets	7	-	6.1	-
Current interest-bearing receivables		-	-	0.3
Cash and cash equivalents		32.0	29.7	27.5
Total current assets		281.5	295.5	283.1
Assets held for sale	8	7.1	-	7.1
Total assets		813.5	817.6	827.1
LIABILITIES AND OWNERS' EQUITY
Share capital		75.9	75.9	75.9
Other paid-in equity		493.8	493.7	493.8
Total paid-in equity		569.7	569.6	569.7
Translation differences and other reserves		0.1	-0.9	0.1
Retained earnings		-215.2	-211.9	-203.3
Total equity		354.7	356.8	366.5
Interest-bearing debt		340.9	340.2	344.0
Deferred tax liability		4.4	7.5	3.7
Other non-interest-bearing non-current liabilities		-	0.1	-
Total non-current liabilities		345.3	347.8	347.7
Interest-bearing current liabilities		62.7	62.2	49.0
Accounts payable and other payables		50.8	50.7	63.9
Total current liabilities		113.5	112.9	112.9
Total liabilities		458.8	460.7	460.6
Total equity and liabilities		813.5	817.6	827.1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

		First Quarter
USD million	Note 2024	2023	2023
Net profit (loss) after tax	-11.9	-17.6	-9.0
Tax expenses	0.3	0.6	-25.0
Net interest and guarantee expenses	8.5	7.1	31.0
Interest paid	-9.1	-6.9	-29.7
Interest received	0.9	0.3	2.2
Taxes paid		0.2	-0.7
Share of earnings in associated companies	-	-	3.0
Other P&L items with no cash flow effect	-	-	-0.1
Impairment charges	- -	-	0.5
Depreciation and amortization	17.3	12.5	52.3
Foreign exchange loss (gain)	-0.2	-	-
Change in accounts receivable, other current receivables,	-7.3	-1.6	23.0
inventories, accounts payable and other
Net cash flow from operating activities	-1.5	-5.4	47.4
Payments for property, plant and equipment	-4.4	-8.2	-45.9
Payments for intangibles	-0.3	-0.2	-3.4
New short-term receivable interest-bearing		-	-0.3
Proceeds from sales of property,plant and equipments	-	-	0.6
Net cash flow from investing activities	- -4.6	-8.4	-48.9
Proceeds from issue of debt and change in overdraft facility	14.2	14.7	-18.7
Instalment interest-bearing debt	-3.7	-3.5	-14.6
Proceeds from issue of external interest-bearing debt		10.0	40.0
Net cash flow from financing activities	- 10.5	21.2	6.7
Net change in cash and cash equivalents	4.4	7.4	5.2
Cash and cash equivalents beginning of the period	27.5	22.3	22.3
Cash and cash equivalents end of period	32.0	29.7	27.5

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

		Share	Other paid-in	Other	Retained
USD million	Share capital	premium	capital	reserves	earnings	Total
Balance as of 1 January 2024	75.9	530.2	-36.3	-0.1	-203.5	366.6
Net profit (loss)	-	-	-	-	-11.9	-11.9
Total comprehensive income (loss)	-	-	-	-	-11.9	-11.9
Balance as of 31 March 2024	75.9	530.2	-36.3	-0.1	-215.4	354.7
Balance as of 1 January 2023	75.9	530.1	-36.3	3.5	-194.4	378.7
Net profit (loss)	-	-	-	-	-17.6	-17.6
Other comprehensive income (loss)	-	-	-	-4.3	-	-4.3
Total comprehensive income (loss)	-	-	-	-4.3	-17.6	-21.9
Balance as of 31 March 2023	75.9	530.1	-36.3	-0.9	-211.9	356.8
Balance as of 1 January 2023	75.9	530.1	-36.3	3.5	-194.4	378.7
Net profit (loss)	-	-	-	-	-9.0	-9.0
Other comprehensive income (loss)	-	-	-	4.6	-	4.6
Total comprehensive income (loss)	-	-	-	4.6	-9.0	-4.4
Reclassification of hedge reserve to inventory	-	-	-	-8.2		-8.2
Total other transactions	-	-	-	-8.2	-	-8.2
Capital Increase	- -	- 0.1	- -	-	-	0.1
Total transactions with owners	-	0.1	-	-	-	0.1
Balance as of 31 December 2023	75.9	530.2	-36.3	-0.1	-203.5	366.6

NOTE 1 REPORTING ENTITY

Aker BioMarine ASA is a public limited company with the headquarters located in Norway. The condensed consolidated interim financial statements comprise Aker BioMarine ASA (the Company) 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

The Group's unaudited 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 the Annual Report for 2023. 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's latest Annual Report can be found at https://www.akerbiomarine.com/investor.

In this report amounts have been rounded to the nearest million USD, unless otherwise stated. As a result of rounding differences, amounts may not add up to the total.

Judgements, estimates and assumptions

The preparation of the condensed interim financial statements according to IFRS requires management to make judgements, estimates and assumptions each reporting period. The main judgements, estimates and assumptions are described in the annual consolidated financial statements for 2023 (Note 1).

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 2023 annual consolidated financial statements.

NOTE 2 OPERATING SEGMENTS

The Group has completed the restructuring including new business units and segment reporting as communicated in June 2023. Starting from Q1 2024, the identified operating segments are the Feed Ingredients business, the Human Health Ingredients business, the Consumer Health Products business and the Emerging Businesses.

The Feed Ingredients segment includes Qrill Aqua and Pet, our harvesting operations in Antarctica and Uruguay distribution hub. The segment sells krill meal as marine ingredients into the aqua and pet industry globally. Sales from the Ingredient segment to the Human Health Ingredients segment include nutra meal and sale of feed products to the US market. These sales are presented as 'Internal sales' below.

The Human Health Ingredients segment includies Superba, Lysoveta, Algae and our Houston manufacturing plant. The segment sells B2B krill oil supplements to nutritional brands for humans around world. Sales from the Human Health Ingredients segment to the Consumer Health Products segment include krill oil sold to Lang. These sales are presented as 'Internal sales' below.

The Consumer Health Products segment includes Lang Pharma Nutrition, a producer and distributor of private labels within the vitamin and supplement categories, to the largest retailers in the US market. Sales from the Consumer Health Products segment to the Emerging businesses segment include krill oil sold to Epion. These sales are presented as 'Internal sales' below.

The Emerging Businesses segment includes Epion, Aker BioMarine's consumer brand company that sells our own krill oil brand, Kori krill oil to the largest retailers in the US., Aion AS, a circular plastic company, and Understory Protein, a novel protein product developed from krill that is sold B2B into the sports segment.

Segment performance is evaluated based on net revenues and Adjusted EBITDA less corporate SG&A costs (presented in the other/elim column) as well as specific balance sheet items.

The other/elim column comprises the following: the corporate overhead costs not directly attributable to the different segments, elimination of internal transactions between segments as well as elimination of internal profit in stock. All overhead and corporate cost (finance, legal, ESG, HR, communication and IT compliance) is booked under "Other/elim" and financed through a management fee structure. The Consumer Health Products segment has all their corporate cost embedded in the segment figures as Lang is a fully autonomous entity.

Segment information provided to the Executive Management Team (EMT)

The tables below show the segment information provided to the EMT for the reportable segments for Q1 2024, Q1 2023 and the full year 2023. The table below also shows the basis on which revenue is recognized. The 2023 comparable figures have been adjusted to the new segment reporting structure (unaudited).

Segment performance Q1 2024

	First Quarter 2024
		Human	Consumer
	Feed	Health	Health	Emerging
USD million	Ingredients	Ingredients	Products	Businesses	Other/elim	Total
Net sales	30.8	22.4	26.1	3.1	-4.2	78.3
Cost of goods sold	-27.1	-10.6	-20.1	-1.7	3.6	-55.9
Gross profit	3.7	11.8	6.0	1.4	-0.6	22.4
SG&A	-3.1	-4.2	-4.8	-2.5	-8.0	-22.6
Depreciation, amortization and impairment	-0.6	-1.5	-1.3	-1.2	-0.7	-5.4
Operating profit (loss)	-	6.1	-0.1	-2.3	-9.3	-5.6

EBITDA reconciliation First Quarter 2024

USD million	Feed Ingredients	Human Health Ingredients	Consumer Health Products	Emerging Businesses	Other/elim	Total
Operating profit	-	6.1	-0.1	-2.3	-9.3	-5.6
Depreciation and amortization non-production assets	0.6	1.5	1.3	1.2	0.7	5.4
Depreciation and amortization production assets1	10.6	1.3	-	-	-	12.0
EBITDA	11.2	8.9	1.3	-1.1	-8.6	11.8
Special operating items	-	0.1	0.5	-	2.9	3.4
Adjusted EBITDA	11.2	9.0	1.8	-1.1	-5.7	15.2
Adj EBITDA margin %	37%	40%	7%	-37%		19%
Gross margin %	12%	53%	23%	45%		29%
1 Included in Cost of Goods Sold

	First Quarter 2024
USD million	Feed Ingredients	Human Health Ingredients	Consumer Health Products	Emerging Businesses	Other/elim	Total
Internal sales	1.1	2.5	0.7	-	-4.3	-
External sales	29.7	19.9	25.5	3.1	-	78.3
Net sales	30.8	22.4	26.1	3.1	-4.2	78.3

Balance sheet items As of 31 March 2024

		Human	Consumer
	Feed	Health	Health	Emerging
USD million	Ingredients	Ingredients	Products	Businesses	Other/elim	Total
Property, plant and equipment	235.1	67.4	0.3	29.0	1.2	332.9
Inventory	72.3	47.8	33.3	21.7	9.1	184.2
Trade receivables and prepaid expenses	24.0	24.3	15.3	0.8	1.0	65.3
Accounts payable and other payable	30.5	-2.9	11.5	2.4	9.4	50.8

Segment performance Q1 2023

	First Quarter 2023
		Human	Consumer
	Feed	Health	Health	Emerging
USD million	Ingredients	Ingredients	Products	Businesses	Other/elim	Total
Net sales	21.8	19.9	32.2	4.5	-9.2	69.1
Cost of goods sold	-22.0	-10.8	-24.8	-2.9	12.2	-48.2
Gross profit	-0.3	9.1	7.5	1.6	3.1	20.9
SG&A	-5.1	-4.3	-4.7	-5.3	-6.4	-25.6
Depreciation, amortization and impairment	-0.6	-1.7	-1.2	-0.3	-0.8	-4.7
Other operating income/(cost), net	-	-	-	-0.1	0.1	-
Operating profit (loss)	-6.0	3.1	1.6	-4.1	-4.1	-9.4

EBITDA reconciliation	First Quarter 2023
USD million	Feed Ingredients	Human Health Ingredients	Consumer Health Products	Emerging Businesses	Other/elim	Total
Operating profit (loss)	-6.0	3.1	1.6	-4.1	-4.1	-9.4
Depreciation and amortization non-production assets	0.6	1.7	1.2	0.3	0.8	4.7
Depreciation and amortization production assets1	6.8	0.9	-	-	-	7.7
EBITDA	1.5	5.8	2.8	-3.8	-3.3	3.0
Special operating items	0.7	0.2	-	0.1	1.9	3.0
Adjusted EBITDA	2.2	6.0	2.8	-3.7	-1.4	6.0
Adj EBITDA margin %	10%	30%	9%	-83%		9%
Gross margin %	-1%	46%	23%	36%		30%

¹Included in Cost of Goods Sold

	Feed	Human Health	Consumer Health	Emerging
USD million	Ingredients	Ingredients	Products	Businesses	Other/elim	Total
Internal sales	-	3.2	6.0	-	-9.2	-
External sales	21.8	16.7	26.2	4.5	-	69.1
Net sales	21.8	19.9	32.2	4.5	-9.2	69.1

First Quarter 2023

Balance sheet items As of 31 March 2023

	Feed	Human Health	Consumer Health	Emerging
USD million	Ingredients	Ingredients	Products	Businesses	Other/elim	Total
Property, plant and equipment	242.2	67.8	0.3	22.7	0.2	333.2
Inventory	62.3	76.7	38.2	1.9	5.2	184.5
Trade receivables and prepaid expenses	38.5	16.7	15.0	1.8	3.2	75.2
Accounts payable and other payable	25.3	3.3	15.4	3.3	3.4	50.7

Segment performance Year 2023

	Year 2023
USD million	Feed Ingredients	Human Health Ingredients	Consumer Health Products	Emerging Businesses	Other/elim	Total
Net sales	158.2	84.2	122.2	11.1	-40.5	335.3
Cost of goods sold	-119.9	-41.0	-95.4	-7.7	41.6	-222.4
Gross profit	38.4	43.2	26.8	3.4	1.1	112.9
SG&A	-18.5	-15.8	-16.4	-13.9	-25.9	-90.5
Depreciation, amortization and impairment	-2.5	-6.6	-4.8	-3.5	-3,8	-21.1
Other operating income/(cost), net1	4.1	39.4	-	-0.2	-39.3	4.0
Operating profit (loss)	21.5	60.2	5.6	-14.2	-67,9	5.3

¹USD 39.4 million is internal sale of IP rights in Q3 2023

EBITDA reconciliation Year 2023

USD million	Feed Ingredients	Human Health Ingredients	Consumer Health Products	Emerging Businesses	Other/elim	Total
Operating profit (loss)	21.5	60.2	5.6	-14.2	-67.9	5.3
Depreciation and amortization non-production assets	2.5	6.6	4.8	3.5	3.8	21.1
Depreciation and amortization production assets2	27.1	4.4	-	-	-	31.6
EBITDA	51.1	71.2	10.4	-10.7	-64.1	58.0
Special operating items	1.3	-38.6	0.4	0.2	48.7	12.0
Adjusted EBITDA	52.4	32.6	10.8	-10.6	-15.4	70.0
Adj EBITDA margin %	34%	39%	9%	-96%		21%
Gross margin %	25%	51%	22%	30%		34%
2 Included in Cost of Goods Sold

	Feed	Human Health	Consumer Health	Emerging
USD million	Ingredients	Ingredients	Products	Businesses	Other/elim	Total
Internal sales	19.8	9.0	11.7	-	-40.5	-
External sales	138.4	75.2	110.5	11.1	-	335.3
Net sales	158.2	84.2	122.2	11.1	-40.5	335.3

		Human	Consumer
	Feed	Health	Health	Emerging
USD million	Ingredients	Ingredients	Products	Businesses	Other/elim	Total
Property, plant and equipment	243.3	68.2	0.3	28.5	1.2	341.5
Inventory	63.7	50.4	35.1	22.7	11.8	183.7
Trade receivables and prepaid expenses	26.0	25.0	19.4	0.5	0.6	71.5
Accounts payable and other payable	23.9	15.6	11.1	4.3	9.0	63.9

Balance sheet items As of 31 December 2023

Year 2023

NOTE 3 ADJUSTED EBITDA

The EMT evaluates the performance based on Adjusted EBITDA. This metric is defined as operating profit before depreciation, amortization, writedowns 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 March 2024:

		First Quarter
USD million	2024	2023	2023
Net profit (loss)	-11.9	-17.6	-9.0
Tax expense	0.3	0.6	-25.0
Net financial items	6.1	7.6	39.2
Operating profit	-5.6	-9.4	5.3
Depreciation, amortization and impairment non-production assets	5.4	4.7	21.1
Depreciation, amortization and impairment production assets1	12.0	7.7	31.6
EBITDA	11.8	3.0	58.0
Special operating items	3.4	3.0	12.0
Adjusted EBITDA	15.2	6.0	70.0

1 Included in cost to inventory

NOTE 4 PROPERTY, PLANT AND EQUIPMENT

	Vessels,
	transportation,		Asset under	Buildings and
USD million	equipment, etc	Machinery	construction	Land	Total
Acquisition cost as of 1 January 2024	297.9	164.4	46.5	20.6	529.4
Investments	1.9	1.3	0.9	0.3	4.4
Asset retirements	-	-0.4	-	-	-0.4
Other reclassifications	2.2	-	-2.1	-	-
Acquisition cost as of 31 March 2024	301.9	165.3	45.3	20.9	533.4
Acc. depreciation and impairment as of 1 January 2024	-109.7	-70.1	-2.7	-5.5	-188.0
Depreciation for the year	-8.2	-4.5	-	-0.2	-12.9
Asset retirements	-	0.4	-	-	0.4
Other reclassifications	-	-	-	-	-
Acc. depreciation and impairment as of 31 March 2024	-117.9	-74.3	-2.7	-5.6	-200.5
Book value as of 31 March 2024	184.0	91.0	42.7	15.3	332.9
Depreciation period	10-30 years	3-20 years		30-50 years
Depreciation method	Straight-line	Straight-line		Straight-line

Investments in 2024:

Investments in assets under construction are continued investment in the Protein Plant and other various projects. Vessel and machinery investments are mainly from the shipyard and harvesting equipment for the vessels. The reclassification in Q1 2024 from assets under construction to vessels was mainly the drone that was operating on the fishing ground from January 2024.

Asset retirements in 2024:

Asset retirements in the quarter were fully depreciated.

Change of estimate seasonal depreciations offshore

As part of the restructuring and the new reporting format, the company made a change to its cost estimation with regards to how offshore costs are booked in the Feed Ingredients segment. The following changes have taken place:

• From Q4 2023, all operational costs related to the normal yearly shipyard period (October and November) were booked as fixed assets in the balance sheet and then depreciated over the first 10 months of the following year to reflect the harvesting season. USD 7.2 million was booked as Fixed Assets in Q4 2023.
• Starting from 2024, other offshore depreciations are also shifted from 12 months to 10 months.
• A standard costing approach is implemented based on budgeted offshore unit cost for the year and applied to each quarter.

The accounting effect of the change will be reduced volatility in gross margin and increased correlation between gross margin and harvesting activity during the year. This has resulted in a higher gross margin in the Feed Ingredient segment for Q1 2024 compared to Q1 2023.

USD million	Vessels, transportation, equipment, etc	Machinery	Asset under construction	Buildings and Land	Total
Acquisition cost as of 1 January 2023	283.7	149.0	46.5	19.6	498.8
Investments	0.9	0.4	6.0	0.8	8.2
Asset retirements	-1.7	-1.7	-	-	-3.5
Acquisition cost as of 31 March 2023	282.9	147.7	52.5	20.4	503.5
Acc. depreciation and impairment as of 1 January 2023	-96.1	-62.1	-2.7	-4.7	-165.6
Depreciation for the year	-4.5	-3.5	-	-0.2	-8.2
Asset retirements	1.7	1.7	-	-	3.5
Acc. depreciation and impairment as of 31 March 2023	-98.9	-63.9	-2.7	-4.9	-170.3
Book value as of 31 March 2023	184.0	83.8	49.8	15.5	333.2
Depreciation period	10-30 years	3-20 years		30-50 years
Depreciation method	Straight-line	Straight-line		Straight-line

	Vessels,
	transportation,		Asset under	Buildings and
USD million	equipment, etc	Machinery	construction	Land	Total
Acquisition cost as of 1 January 2023	283.7	149.0	46.5	19.6	498.8
Investments	18.5	3.6	23.8	-	45.9
Asset retirements	-4.3	-1.1	-0.6	-	-6.1
Other reclassifications	-	20.5	-23.2	1.0	-1.7
Acquisition cost as of 31 December 2023	297.9	171.9	46.5	20.6	537.0
Acc. depreciation and impairment as of 1 January 2023	-96.1	-62.1	-2.7	-4.7	-165.6
Depreciation for the year	-18.0	-15.7	-	-0.7	-34.4
Asset retirements	4.3	0.7	-	-	5.0
Other reclassifications	-	-0.5	-	-	-0.5
Acc. depreciation and impairment as of 31 December 2023	-109.7	-77.6	-2.7	-5.4	-195.5
Book value as of 31 December 2023	188.2	94.3	43.9	15.2	341.5
Depreciation period	10-30 years	3-20 years		30-50 years
Depreciation method	Straight-line	Straight-line	Straight-line
Specification depreciation and amortization
		As of		As of	As of
USD million		31 March 2024	31 March 2023		31 December 2023

USD million	31 March 2024	31 March 2023	31 December 2023
Depreciation for the year for property, plant & equipment	-12.9	-8.2	-34.4
Amortization for the year, - Intangible assets	-2.8	-2.7	-11.1
Amortization for the year, - Contract cost	-0.5	-0.5	-2.0
Leasing (ROU) depreciation	-1.2	-1.1	-4.7
Total	-17.4	-12.5	-52.1
Depreciation, amortization and impairment non-production assets	-5.4	-4.7	-21.1
Depreciation, amortization and impairment production assets and included in cost	-12.0	-7.7	-31.6
to inventory

19

NOTE 5 INTANGIBLE ASSETS

			License		Fishing	Customer
USD million	Goodwill	Development	agreements	Patents	licenses	relation	Trademark	Total
Acquisition cost as of 1 January 2024	94.6	11.1	2.4	2.6	10.5	90.9	5.7	217.8
Additions - external cost	-	-	-	-	-	0.3	-	0.3
Acquisition cost as of 31 March 2024	94.6	11.1	2.4	2.6	10.5	91.2	5.7	218.1
Amortization and impairment losses as of 1 January
2024	-	-6.9	-2.4	-	-	-52.3	-0.9	-62.4
Amortization for the year	-	-0.5	-	-0.1	-	-2.2	-	-2.8
Amortization and impairment losses as of 31 March
2024	-	-7.3	-2.4	-0.1	-	-54.5	-0.9	-65.2
Book value as of 31 March 2024	94.6	3.8	-	2.5	10.5	36.7	4.8	152.9
Depreciation period		5-10 years	10-12 years	7-10 years		7-10 years	7-10 years
Depreciation method		Straight-line	Straight	Straight		Straight	Straight
			line	line		line	line
USD million	Goodwill	Development	License agreements	Fishing licenses		Customer relation	Trademark	Total
Acquisition cost as of 1 January 2023	94.6	9.4	2.4	10.5		91.9	5.7	214.5
Additions - external cost	-	0.2		-	-	-	-	0.2
Acquisition cost as of 31 March 2023	94.6	9.6	2.4	10.5		91.9	5.7	214.7
Amortization and impairment losses as of 1 January
2023	-	-5.4	-2.2		-	-43.3	-0.9	-51.8
Amortization for the year	-	-0.2		-	-	-2.4	-	-2.6
Amortization and impairment losses as of 31 March
2023	-	-5.6	-2.2		-	-45.6	-0.9	-54.4
Book value as of 31 March 2023	94.6	4.0	0.2	10.5		46.2	4.8	160.2
Depreciation period		5-10 years	10-12 years			7-10 years	7-10 years
Depreciation method			Straight-line Straight-line			Straight-line Straight-line
			License		Fishing	Customer
USD million	Goodwill	Development	agreements	Patents	licenses	relation	Trademark	Total
Acquisition cost as of 1 January 2023	94.6	9.4	2.4	-	10.5	91.9	5.7	214.5
Additions - external cost	-	-	-	2.6	-	0.1	-	2.7
Asset retirements	-	-	-	-	-	-0.5	-	-0.5
Reclassifications	-	1.7	-	-	-	-0.5	-	1.2
Acquisition cost as of 31 December 2023	94.6	11.1	2.4	2.6	10.5	91.0	5.7	217.9
Amortization and impairment losses as of 1 January
2023	-	-5.4	-2.2	-	-	-43.3	-0.9	-51.8
Amortization/ impairment for the year	-	-1.5	-0.2	-	-	-9.5	-	-11.2
Reclassifications	-	-	-	-	-	0.4	-	0.4
Amortization and impairment losses as of 31
December 2023	-	-6.9	-2.4	-	-	-52.4	-0.9	-62.5
Book value as of 31 December 2023	94.6	4.3	-	2.6	10.5	38.6	4.8	155.4
Depreciation period		5-10 years	10-12 years	7-10 years		7-10 years	7-10 years
Depreciation method
		Straight-line	Straight line	Straight line		Straight line	Straight line

NOTE 6 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 warehouse materials. The cost of finished goods and work in progress is comprised of 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.

		Human	Consumer
	Feed	Health	Health	Emerging
USD million	Ingredients	Ingredients	Products	Business	Other/elim	Total
Non-product related inventory	19.3					19.3
Packaging		1.8				1.8
Raw materials and goods under production	3.1	11.5			4.5	19.1
Finished goods	49.9	34.6	33.3	21.7	4.7	144.2
Inventory at 31 March 2024	72.3	47.8	33.3	21.7	9.1	184.2

USD million	Feed Ingredients	Human Health Ingredients	Consumer Health Products	Emerging Business	Other/elim	Total
Raw materials and goods under production		21.5				21.5
Finished goods	62.3	55.2	38.2	1.9	5.2	162.9
Inventory at 31 March 2023	62.3	76.7	38.2	1.9	5.2	184.5

		Human	Consumer
	Feed	Health	Health	Emerging
USD million	Ingredients	Ingredients	Products	Business	Other/elim	Total
Non-product related inventory	14.7					14.7
Packaging	6.4	1.6				7.9
Raw materials and goods under production		16.0			7.4	23.4
Finished goods	42.6	32.8	35.1	22.7	4.5	137.7
Inventory at 31 December 2023	63.7	50.4	35.1	22.7	11.8	183.7

The inventory presented in the "other/elim column" is the delta production cost of nutra meal between the agreed price between the Feed Ingredients and the Human Health Ingredients segment and actual production cost as well as elimination of internal profit in stock.

NOTE 7 DERIVATIVES

One of the Group's significant operating costs are the fuel costs. As such, the Group is exposed to fuel prices fluctuations since the vessels use fuel while steaming and in production. The profitability and cash flow of the Group will therefore depend upon the market prices of fuel. In 2021 the operating subsidiary Aker BioMarine Antarctic AS entered into option contracts for future delivery of fuel in Rotterdam; that is, the contracts will be settled without physical delivery. During 2023, the Company evaluated the qualifying criteria for hedge accounting. Following the assessment, the Company discontinued the hedging relationship with the effect that amounts in the cash flow hedging reserve were reclassified to the profit and loss. In addition to this, the Company sold its 2024 fuel option contracts at the end of 2023.

NOTE 8 ASSETS HELD FOR SALE

From Q4 2023, the investment in Aion is classified as held for sale as the investment is expected to be sold in 2024.

NOTE 9 RELATED PARTIES

The Group has not entered into any new contracts with related parties during the quarter.

In the ordinary course of business, the Group has certain transactions with related parties covering office rent, digital development services and other. As of 31 March 2024, the Group had USD 0.1 million towards related parties recognized as 'Accounts payable and other payables' in the 'Consolidated statement of financial position'. In the 'Condensed consolidated statements of profit or loss' under 'Selling, general and administrative expense' the Group has recognized USD 0.2 million in the quarter as related party costs.

NOTE 10 SUBSEQUENT EVENTS

No subsequent events after the quarter.

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 items that in management's view, do not give indications of the periodic operating results. Financial APMs are used to enhance comparability of the results from one period to the next, and management uses these measures internally when driving performance in terms of long- and short-term forecasts. The measures are adjusted IFRS measures, and are defined, calculated, and consistently applied in the Group's financial reporting. The Group focuses on EBITDA and Adjusted EBITDA when presenting the period's financial result internally and externally. Adjusted EBITDA is adjusted for Special operating items.

Financial 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: Operating profit before depreciation, amortization, write-downs and impairments
• Adjusted EBITDA: Operating profit before depreciation, amortization, write-downs and impairments, and Special operating items
• EBITDA margin %: EBITDA as a percentage of Net sales
• Adjusted EBITDA margin %: Adjusted EBITDA as a percentage of Net sales
• Gross margin %: Gross profit as a percentage of 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)

"EBITDA" and "Adjusted EBITDA" are used as APMs to facilitate operating performance comparisons from period to period, and the others are relevant key figures mainly in connection with the mentioned performance measures. The significant items of income and expenditure represent the difference between EBITDA and Adjusted EBITDA and are labeled "Special operating items" (which is also the wording used in the Group's financing agreements).

Total special operating items in Q1-24 was USD 3.0 million related to the improvement program and strategic review of the Feed Ingredient business as well as a restructuring item of USD 0.4 million in the Consumer Health Products segment. APMs recognized in 2023 are cost mainly related to the improvement program and the strategic review of the Feed Ingredient business. For further details on APMs in 2023, see the group financial statements for 2023.

	First Quarter		Year
USD million	2024	2023	2023
Net profit (loss)	-11.9	-17.6	-9.0
Tax expense	0.3	0.6	-25.0
Net financial items	6.1	7.6	39.2
Operating profit (loss)	-5.5	-9.4	5.2
Depreciation, amortization and impairment non-production assets	5.4	4.7	21.1
Depreciation, amortization and impairment production assets1	12.0	7.7	31.6
EBITDA	11.8	3.0	58.0
Special operating items	3.4	3.0	12.0
Adjusted EBITDA	15.2	6.0	70.0

1 Included in cost to inventory

The following table reconciles special operating items in the above table.

	First Quarter		Year
USD million	2024	2023	2023
Restructuring costs	3.4	2.5	11.6
Other	-	0.4	0.4
Total special operating items	3.4	3.0	12.0

Based on the Group's policy on APMs, the restructuring costs and tax/structure analysis are material transactions that are non-recurring in nature, and special compared to the ordinary operational income or expenses. These transactions are therefore adjusted from the EBITDA in the respective periods.