Arctic Fish Holding

Investor Presentation • Nov 16, 2022

Arctic Fish

Q3'22 Presentation 16th of November 2022

Disclaimer

Cautionary note regarding forward-looking statements

This presentation is the managements summary of the 3rd quarter report, it includes forward-looking statements that reflect the Company's current views with respect to future events and financial and operational performance. These forward-looking statements may be identified by the use of forward-looking terminology.

These forward-looking statements are not historic facts. The forward-looking statements are not guarantees of future performance. The Company's actual financial position, operating results and liquidity, and the development of the industry in which the Company operates, may differ materially from those made in, or suggested, by the forward-looking statements.

The Company cannot guarantee that the intentions, beliefs, or current expectations upon which its forward-looking statements are based will occur.

By their nature, forward-looking statements involve, and are subject to, known and unknown risks, uncertainties, and assumptions as they relate to events and depend on circumstances that may or may not occur in the future. Because of these known and unknown risks, uncertainties and assumptions, the outcome may differ materially from those set out in the forward-looking statements.

These forward-looking statements speak only as at the date on which they are made. The Company undertakes no obligation to publicly update or publicly revise any forward-looking statement, whether as a result of new information, future events or otherwise. All subsequent written and oral forward-looking statements attributable to the Company or to persons acting on the Company's behalf are expressly qualified in their entirety by the cautionary statements referred to above and contained elsewhere in this presentation.

1	Highlights for the period
2	Operational performance & Group financials
3	Key features
4	Growth projects
5	Outlook and summary

Highlights in Q3'2022

Solid biological performance and output targets surpassed

Smolt output in 2022 at 3,9 million smolt and overall structure and long-term growth maintained as planned, with 2 new farming areas this year.

Farming Operational EBIT of 9.8 NOK pr. kg

Slightly lower than the Farming Operational EBIT of 10.6 NOK pr. kg from Q3'2021.

Solid salmon prices in the quarter

Price achievement amounted to 58.9 NOK pr. kg.

Harvesting quantities

Harvested 1,968 tonnes in the quarter – a 32% decrease YoY.

Volumes for 2022 estimated to 9,400 tonnes and 2023 to 14,100 tonnes.

Production costs of 49.1 NOK pr. kg

Production costs have increased by 4.6 NOK pr. kg from Q3'2021.

Operational KPI's

▪ Arctic Fish has harvested 7.218 tonnes YTD, or approx. 15% less than at the same period last year.

• The mortality incident in Q1'22 has impacted the harvest volumes in the year.
• Revenues increased drastically which is due to improved market prices realized in first half of the year.
• Revenue has increased 13% YTD compared to the same period last year.
• The operations improved substantially, combining the two main factors, production cost stabilization and stronger market prices which resulted in the Operational EBIT developing emphatically.

Operational performance

Operational EBIT pr. kg turns downward for the first

time this year

Salmon prices in the quarter impact the operational EBIT positively pr. kg, but the larger increase in production costs reduces the EBIT development compared to Q3' 21.

Farming Operational EBIT YoY (NOK pr. kg) Operational EBIT (NOK pr. kg)

Operational Farming EBIT of 9.8 NOK pr. kg has developed negatively YoY due to the following factors

Price achievement increased by 3.9 NOK pr. kg.

Production cost increased by 4.6 NOK pr. kg.

Stable and strong cost performance over time

NOK pr. kg (HOG) Arctic Fish expects to stabilize and decrease production cost through: Biological performance ▪ Increased size of smolt is expected to improve survival rate and decrease production time. ▪ Expansions and improvements in the RAS facility will lead to better license utilization and fish health. 1 Operational efficiency ▪ Constant improvements and economies of increased knowledge. ▪ Full control of harvesting capacity will optimize timing both with regards to the market and the production in sea. 2 Primary processing ▪ A new facility will decrease cost and secure sufficient capacity. ▪ Increased and stable volumes with full control on harvesting capacity. 3 Harvesting, packing & Wellboat COGS 29,9 36,1 34,5 34,6 33,7 35,2 36,4 8,9 9,0 10,0 12,0 12,7 12,5 12,7 38,8 45,1 44,5 46,5 46,5 47,7 49,1 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22

Profit and loss

• Operating revenues of 116 MNOK.
• Operational EBIT of 17.2 MNOK.
• Harvested volume of 1,968 tonnes (YoY 32% decrease).
• Negative fair value adjustment of -10.7 MNOK due to decreased forward prices.

Operational EBIT (MNOK)

Key figures from P/L
----------------------	--	--

KEY FIGURES	Q3	Q3	YTD	YTD
(NOK '000)	2022	2021	2022	2021
Operating revenues	116.000	161.000	485.526	429.642
Operational EBIT	17.236	26.904	8.081	59.414
Fair value adjustments	-10.685	-24.183	50.478	58.837
Production tax	-1.676	-818	-6.108	-3.054
EBIT	4.875	1.904	52.450	115.198
Net financial items	-35.655	-5.141	-51.688	2.286
Earnings before tax (EBT)	-30.780	-3.237	762	117.484
Volume harvested GW	1.968	2.924	7.218	8.541
Operational EBIT pr.kg (farming)	9,83	10,55	19,88	8,20

Financial position

• Total assets increased by 294.3 MNOK from the prior period (Q2'2022).
• Receivables increased by 97.6 MNOK from the prior period (Q2'2022).
• Biological assets and other inventories increased by 71.8 MNOK from the prior period (Q2'2022).
• Property, plant, and equipment increased by 124.1 MNOK from the prior period (Q2'2022).
• Bank deposits decreased by 6.5 MNOK from the prior period (Q2'2022).

NIBD development and financial covenants

NIBD development (MNOK) Alternate performance measures (APM)

Net interest bearing debt

(NOK '000)	30.09.2022	30.06.2022	30.09.2021
Reported long-term interest-bearing debt	536.550	359.477	201.720
Reported short-term interest-bearing debt	105.080	40.406	36.621
Reported bank deposits	-56.889	-63.369	-55.517
Total net interest bearing debt	584.741	336.514	182.824

Equity ratio

(NOK '000)	30.09.2022	30.06.2022	30.09.2021
Reported equity	976.118	1.000.742	940.429
Reported total assets	1.833.971	1.539.719	1.302.770
Equity ratio	53,2 %	65,0 %	72,2 %

Interest bearing debt overview

(NOK '000)	30.09.2022	30.06.2022	Loan agreement	Unused 30.09.2022
Total interest bearing debt	641.630	399.883	801.432	159.802

Summary

▪ Net interest-bearing debt (NIBD) up by 248 MNOK in the quarter. The increase is largely due to working capital changes and fixed assets additions.

Bank covenants

• Equity ratio has to remain above 40%.
• NIBD/EBITDA ratio cannot be higher 4.5. Q1'22 will not be used in further NIBD/EBITDA calculations in 2022.

CAPEX

• We are committing to our growth plan with extensive investments in our Smolt Production capacity and in a Harvesting facility.
• Both investments are aimed at securing larger parts of our value chain, improving operational scale, less biological risk and ultimately decreasing our production cost.

Harvesting facility building in Bolungarvík

Ongoing investments Planned capital expenditure going forward

Actual Capital Expenditures (MNOK) 97 97 139 232 0 50 100 150 200 250 Q1'22 Q2'22 Q3'22 Q4'22 E Planned Capital Expenditures (MNOK)

Existing Credit facilities from bank

Existing loan agreement components are as follows:

• 300 MNOK revolving facility for Biomass.
• 321 MNOK long term loan, 20 MNOK has been repaid reducing the availability under this part of the loan agreement.
• 30 MNOK overdraft facility.
• 150 MNOK smolt expansion facility.
• 175 MNOK harvesting plant facility.**

Covenants:

• 40 % Equity ratio.
• Leverage ratios to be tested and need to be less than 4.5:1. Q1'22 results will be excluded from calculations for the remainder of 2022.

Agenda

1	Highlights for the period
2	Operational performance & Group financials
3	Key features
4	Growth projects
5	Outlook and summary

A robust and strong sustainability profile

First of its kind hi-tech smolt facility with 100% green energy¹

All Icelandic attributes preserved; low sea temperature and density

No antibiotics have ever been used on Arctic Fish sites

• All fish sold and all sites in use have been ASC certified or accepted certified since 2016
• The company was the first salmon farmer from Iceland to receive an ASC certification

Licenses enabling growth and production potential

Current license applications

• Handed in an application for the expansion of the land based smolt production license from 1.000 tonnes to 2.400 tonnes.
• Enlarged area and updated licenses in Patreksfjörður finalized. Enables 1 additional site and better licences utilization.

Markets and sales

• The markets for salmon saw a substantial decline in strength from the previous quarter, this can be traced back to increased supply, large global harvesting quantities and general stabilization on markets.
• Despite the solid market conditions the price achievement was not optimal as the volume harvested was at lower average weight than preferred due to limitations with harvesting capacity.
• Price achievement was also affected due to fixed price contracts, logistics and sales commissions.
• Despite uncertainty, the forward prices for salmon are at high levels compared to 2021 and should remain at strong levels on average throughout Q4'22.
• Fixed price contracts will affect the price achievement in a less negative manner as their proportionate value in the sales is becoming less.

Price achievement development

Agenda

1	Highlights for the period
2	Operational performance & Group financials
3	Key features
4	Growth projects
5	Outlook and summary

Smolt expansion in Tálknafjörður

Commentary

• Two-step plan to increase tank volume with 7,500m³and increase smolt capacity to 5 million smolt.
• It is expected that the expansion will be completed in the end of Q2'2023.
• Total cost is estimated to 260 MNOK.
• Total investment will strengthen the position of Arctic Fish as leading smolt producer as well as support its future growth target in terms of harvest volume.

Current progress in Norður Botn

Smolt capacity forecast (in million)

Harvesting facility in Bolungarvik

Commentary

Design

• Project going forward on full speed with the aim of finishing in Q2'2023.
• The facility will fulfil Arctic Fish needs with additional possibilities to service others as well, with a potential short-term capacity of 60 thousand tonnes.
• Strategic investment plan with possibilities to increase capacity, up to 120 thousand tonnes.
• Parallel to this there are possibilities at this specific site for value added processing, box manufacturing, fish meal & oil as well as possibilities for waiting cages.
• New logistical routes with exiting direct ocean freight possibilities from the closes export port in Isafjordur to USA now achievable.

Rendering of interior design

Agenda

1	Highlights for the period
2	Operational performance & Group financials
3	Key features
4	Growth projects
5	Outlook and summary

Harvesting estimates

• Arctic Fish continues developing according to its growth plan but harvesting quantities in 2022 are affected by the mortality incident occurred in Q1'2022.
• Harvesting volumes in 2022 are expected to be 18% lower than in 2021 overall, coming in at a total of 9.4 thousand tonnes.
• In Q3'2022, the Company harvested 2.0 thousand tonnes (HOG) compared to 2.9 thousand tonnes for the same period the year before (2021) which is a 32% decrease.
• 2023 harvesting quantities have been increased from previously guided volumes that is related to volume moved from Q42022 to early Q12023

Appendix: Group financials

Group income statement

	Q 3	Q 3	YTD	YTD	FY
(NOK '000)	2022	2021	2022	2021	2021
Operating revenues	116.000	161.000	485.526	429.642	595.895
Cost of goods sold	27.642	68.516	186.539	208.457	299.189
Salaries	16.461	17.253	50.056	42.624	54.151
Depreciation	13.822	11.961	39.671	33.562	46.501
Other operating costs	40.839	36.366	201.180	85.584	109.110
Operational EBIT	17.236	26.904	8.081	59.414	86.944
Fair value adjustments	$-10.685$	$-24.183$	50.478	58.837	44.897
Production tax	$-1.676$	$-818$	$-6.108$	$-3.054$	$-3.843$
EBIT	4.875	1.904	52,450	115.198	127.998
Other net financial items	$-35.655$	$-5.141$	$-51.688$	2.286	2.580
Earnings before tax (EBT)	$-30.780$	$-3.237$	762	117.484	130.578
Taxes	6.157	0	$-152$	0	21.985
Profit after tax from continuing operations	$-24.623$	$-3.237$	610	117.484	152.563
Profit after tax on discontinued operations incl. profit from sale				o	n
Net profit/loss	$-24.623$	$-3.237$	610	117.484	152.563
Profit attributable to:
Parent company shareholders	$-24.623$	$-3.237$	610	117.484	152.563
Minority interests	0	0	$\bf{0}$	0	0
Earnings per share (NOK)	$-0.77$	$-0.10$	0,02	3,69	4,79
Earnings per share - diluted	$-0,77$	$-0,10$	0,02	3,69	4,79

Statement of the financial position

(NOK '000)	30.9.2022	30.6.2022	30.9.2021	31.12.2021
Deferred tax assets	19.327	13.170	$\bf{0}$	19.479
	55.488	54.257	49.340	52.119
Intangible assets
Property, plant and equipment	947.598	823.518	605.124	657.161
Right of use assets	3.940	4.098	0	4.435
Non-current financial assets	650	650	629	629
Non-current assets	1.027.003	895.693	655.094	733.823
Biological assets	506.041	439.584	496.880	512.010
Other inventory	29.195	23.881	18.800	33.785
Receivables	214.842	117.191	76.480	115.951
Bank deposits	56.889	63.369	55.517	38.126
Current assets	806.968	644.026	647.676	699.871
TOTAL ASSETS	1.833.971	1.539.719	1.302.770	1.433.695
Share capital	31.877	31.877	31.877	31.877
Other equity	944.241	968.865	908.552	943.631
Equity	976.118	1.000.742	940.429	975.508
Deferred tax	$\bf{0}$	0	2.506	0
Provisions	$\bf{0}$	0	2.506	0
Long-term interest-bearing debt	536.550	359.477	201.720	318.152
Long term leasing liabilities	3.057	3.420	0	3.424
Total non-current liabilities	539.607	362.897	201.720	321.576
Short-term interest-bearing debt	105.080	40.406	36.621	36.063
Short term leasing liabilities	1.252	1.252	ō	1.138
Trade payables	208.633	119.224	112.110	91.052
Other current liabilities	3.280	15.198	9.384	8.357
Current liabilities	318.246	176.080	158.115	136.609
TOTAL EQUITY AND LIABILITIES	1.833.971	1.539.719	1.302.770	1.433.695

Statement of equity

STATEMENT OF EQUITY

30.9.2022	Equity allocated to parent	company shareholders
(NOK '000)	Share capital	Share premium	Accumulated earnings	Total equity
Equity 01.01.2022 at	31.877	1.001.740	-58.109	975.508
Total comprehensive income	0	0	610	610
Transactions with shareholders
Dividend	0	0	0	0
Total transactions with shareholders	0	0	0	0
Equity 30.09.2022 at	31.877	1.001.740	-57.499	976.118

30.9.2021	Equity allocated to	company shareholders
(NOK '000)	Share capital	Share premium	Accumulated earnings	Total equity
Equity at 01.01.2021	689.476	0	-210.672	478.805
Total comprehensive income	0	0	117.484	117.484
Transactions with shareholders
Reclassification due to new parent	-689.476	12.888	0	-676.588
from of Proceeds issue new share capital	26.158	650.431	0	676.588
Proceeds from issue of new share capital	5.719	344.281	0	350.000
Transaction costs	0	-5.859	0	-5.859
Total transactions with shareholders	-657.600	1.001.740	0	344.141
Equity at 30.09.2021	31.877	1.001.740	-93.188	940.429

Group cash flow statement

	Q3	Q3	YTD	YTD	FY
(NOK '000)	2022	2021	2022	2021	2021
Operational EBIT	17.236	26.904	8.081	59.414	86.944
Adjusted for:
Depreciation	13.822	11.961	39.671	33.562	46.501
Production tax	$-1.676$	$-818$	$-6.108$	$-3.054$	$-3.843$
Change in inventories/biological assets	$-82.456$	$-39.117$	61.036	$-27.605$	$-71.661$
Change in account receivables and accounts payables	$-8.242$	15.958	18.689	$-30.545$	$-91.074$
Change in other current assets and liabilities	$-11.918$	$-1.429$	$-5.077$	$-112$	$-1.138$
Net cash flow from operating activities	$-73.234$	13.459	116.292	31.660	$-34.271$
Cash flow from investing activities
Payments for purchase of fixed assets and licenses (MAB)	$-138.975$	$-12.476$	$-333.003$	$-93.745$	$-160.846$
Net cash flow from investing activities	$-138.975$	$-12.476$	$-333.003$	$-93.745$	$-160.846$
Cash flow from financing activities
Proceeds from borrowings	215.204	0	269.763	o	119.797
Repayment of borrowings	$-25.625$	$-19.822$	$-44.583$	$-69.738$	$-39.425$
Installments on right to use liabilities	$-273$	o	$-776$	0	$-528$
Interest payments for right to use liabilities	$-49$	0	$-149$	o	$-153$
Current debt change	23.214	$-2.848$	27.780	$-219.472$	$-247.450$
Issued new share capital	$\bf{0}$	0	$\bf{0}$	344.141	344.140
Net interest payments	$-6.740$	$-5.496$	$-16.559$	$-16.499$	$-22.311$
Net cash flow from financing activities	205.730	$-28.166$	235.475	38.432	154.070
Net increase in bank deposits	$-6.480$	$-27.183$	18.763	$-23.653$	$-41.046$
Bank deposits as of start of period	63.369	82.701	38.126	79.171	79.171
Bank deposits at the end of the period	56,889	55.518	56,889	55.517	38.126

Appendix: Ownership structure - Shareholders

Shareholders

Ownership structure: The largest 20 shareholders as of 30.9.2022*

Rank	Name	# of shares	% ownership
1	NORWAY ROYAL SALMON ASA	16.346.824	51,28%
2	J.P. Morgan Bank Luxembourg S.A.**	12.925.224	40,55%
3	Landsbankinn hf.	481.567	1,51%
4	KVERVA FINANS AS	258.000	0,81%
5	CLEARSTREAM BANKING S.A.	247.721	0,78%
6	VERDIPAPIRFONDET EIKA SPAR	172.312	0,54%
7	MP PENSJON PK	165.000	0,52%
8	Íslandsbanki hf.	159.964	0,50%
9	PACTUM AS	152.751	0,48%
10	VERDIPAPIRFONDET PARETO INVESTMENT	132.900	0,42%
11	VERDIPAPIRFONDET EIKA NORGE	125.225	0,39%
12	State Street Bank and Trust Comp	101.616	0,32%
13	ROTH	80.000	0,25%
14	Euroclear Bank S.A./N.V.	46.989	0,15%
15	RAMSFJELL AS	40.849	0,13%
16	SKEIE ALPHA INVEST AS	36.000	0,11%
17	VERDIPAPIRFONDET EIKA ALPHA	34.693	0,11%
18	DNB Luxembourg S.A.	25.231	0,08%
19	Saxo Bank A/S	25.215	0,08%
20	VERDIPAPIRFONDET EIKA BALANSERT	18.972	0,06%
	Ownership of 20 largest shareholders	31.577.053	99,06%
	Total number of shares	31.876.653	100,00%

Arctic Fish Holding does not own any of it's own shares

*20 largest shareholders list includes nominee accounts that are composed of multiple individual shareholders.

**Sildarvinnslan hf is a part of the nominee account "J.P. Morgan Bank Luxembourg S.A.".