Benchmark Holdings Plc — Earnings Release 2021

Nov 29, 2021

Full Year Results for the Financial Year ended 30 September 2021

Full Year Results for the Financial Year ended 30 September 2021

Transformation and focused strategy delivering results

Benchmark, the aquaculture biotechnology Company, announces its audited full year results for the year ended 30 September 2021 (the "period").

• Strong FY2021 results with increase in revenues of 18% (+24% CER) and Adjusted EBITDA +34% (+43% CER) demonstrating the success of the Company’s transformation and focused strategy

• Strong trading performance and strategic progress across our three business areas:

o Advanced Nutrition – return to growth driven by renewed commercial focus and recovery in the shrimp markets; revenues increased by 19% (+27% CER)

o Genetics – continued revenue growth +13% (+15% CER) and significant investment and progress in growth opportunities

o Health – new sea lice solution Ectosan® Vet and CleanTreat® launched in Norway and first sales achieved; treatments delivering excellent efficacy

• Disciplined investment in growth areas with capex totalling £23m

£m FY 2021 FY 2020 % AER % CER**

Revenue from continuing operations 125.1 105.6 +18% +24%

Adjusted

Adjusted EBITDA1 from continuing operations 19.4 14.5 +34% +43%

Adjusted EBITDA excluding FV uplift from biological assets 16.1 11.2 +44% +54%

Adjusted Operating profit from continuing operations2 10.8 7.9 +37% +52%

Statutory

Operating loss (5.4) (10.9) 50% 60%

Loss before tax from continuing operations (9.2) (22.6) 59% 65%

Loss for the Period - total incl. discontinued operations (11.6) (31.9) 64% 67%

Basic loss per share (p) (1.93) (5.26) 63%

Net debt3 (80.9) (37.6)

Net debt excluding lease liabilities (56.9) (27.1)

** Constant exchange rate (CER) figures derived by retranslating current year figures using previous year’s foreign exchange rates

(1) Adjusted EBITDA is EBITDA (earnings before interest, tax, depreciation and amortisation and impairment), before exceptional items including acquisition related expenditure.

(2) Adjusted Operating Profit is operating loss before exceptional items including acquisition related items and amortisation of intangible assets excluding development costs

(3) Net debt is cash and cash equivalents less loans and borrowings

£m

Continuing operations FY 2021 FY 2020 % AER % CER**

Revenue

Genetics 46.8 41.5 +13% +15%

Advanced Nutrition 70.5 59.4 +19% +27%

Animal Health 7.8 5.2 +50% +50%

Adjusted EBITDA1

Genetics 11.5 14.4 -20% -20%

- Net of fair value movements in biological assets 8.2 11.1 -26% -27%

Advanced Nutrition 13.8 6.4 +116% +132%

Animal Health (2.7) (3.7) +27% +30%

** Constant exchange rate (CER) figures derived by retranslating current year figures using previous year’s foreign exchange rates

(1) Adjusted EBITDA is EBITDA (earnings before interest, tax, depreciation and amortisation and impairment), before exceptional items including acquisition related expenditure.

Operational highlights

Advanced Nutrition

• Strengthened commercial team under new leadership, implemented processes and digital tools that focus on performance and relaunched Artemia technologies

• Invested in principal manufacturing facility in Thailand to improve safety, resilience and energy efficiency while maintaining supply and customer service levels

• Post period end launched Natura pRo and ExL, a new feed protocol to substitute rotifers (live feed) in sea bass and sea bream hatcheries

Genetics

• Continued growth in core salmon egg business

o Continuing ramp-up of Salten facility

o First production and sales of salmon eggs in Chile

o Established clear leading position in land-based salmon segment

• Commenced construction of new incubation centre in salmon egg facility in Iceland to support periods of peak Progress towards launch of SPR shrimp including continued test market sales, expanded capacity in US and completion of JV multiplication centre in Thailand

Health

• Commercial launch of Ectosan® Vet and CleanTreat® delivering a solution to one of the industry’s biggest sustainability challenges while protecting fish welfare and the oceans

• CleanTreat received the highest level of recognition for environmental protection and sustainability by the Aquaculture Stewardship Council (ASC), the world’s leading certification scheme for farmed aquaculture

• Post period end Ectosan® Vet patent grant approved giving 20 year protection

Group

• Culture change underpinned by new commercial focus, remuneration policy and performance management framework

• Actions to further integrate the Group and streamline the organisation including co-location of Genetics and Health activities in Norway and Chile

• Good progress in all areas of ESG programme including adoption of Net Zero targets and roadmap; first phase of climate risk assessment and review of policies and disclosures to align to best practice and standards

Current trading and outlook

• Trading in line with FY22 expectations

o Consistency in performance continuing in Genetics and Advanced Nutrition

o Health starts benefitting from Ectosan® Vet and CleanTreat® revenue stream

• Market environment

o Salmon markets are solid with positive outlook for continuous growth

o Global shrimp markets showing recovery

o Sea bass and sea bream markets recovered and stable

Trond Williksen, CEO, commented:

“2021 was a very successful year for Benchmark with much accomplished financially, operationally and strategically. The Group delivered a strong financial performance across its three business areas reflecting our new commercial focus and supported by improving conditions, particularly in our important shrimp market which had been hardest hit by the pandemic.

There is good momentum in our business helped by positive conditions in our markets contributing to a good start to the new financial year across all business areas, consistent with our outlook for the year as a whole.

The aquaculture industry increasingly recognises the importance of an integrated approach to sustainability across the value chain which Benchmark is uniquely positioned to deliver through our range of solutions, underpinning our focus on delivering profitable growth.”

Details of analyst / investor call today

There will be a webcast at 9am UK time today for analysts and investors. To register for the call please contact MHP Communications on +44 (0)20 3128 8990 / 8742, or by email on benchmark@mhpc.com

Enquiries

Benchmark Holdings plc Tel: 0114 240 9939

Trond Williksen, CEO

Septima Maguire, CFO

Ivonne Cantu, Investor Relations

Numis (Broker and NOMAD) Tel: 020 7260 1000

James Black, Freddie Barnfield, Duncan Monteith

MHP Communications Tel: 020 3128 8990 / 8742

Katie Hunt, Reg Hoare, Alistair de Kare-Silver, Charlie Protheroe benchmark@mhpc.com