Benchmark Holdings Plc — Earnings Release 2022

Aug 25, 2022

Q3 Results - Continued business momentum and growth in Adjusted EBITDA

Q3 Results - Continued business momentum and growth in Adjusted EBITDA

Benchmark Holdings plc

(“Benchmark”, the “Company” or the “Group”)

Q3 Results

(Three months ended 30 June 2022)

Continued business momentum and growth in Adjusted EBITDA

Trading in-line with expectations for FY22

Transition to new strategic model for Ectosan® Vet and CleanTreat®

In compliance with the terms of the Company’s senior secured bond, which requires it to publish quarterly financial information, Benchmark, the aquaculture biotechnology business, announces its unaudited results for the three months ended 30 June 2022 (the “Period”), which constitutes the third quarter for the fiscal year (“FY”) 2022. All Q3 FY22, Q3 FY21, Q3 YTD FY22 and Q3 YTD FY21 figures quoted in this announcement are based on unaudited accounts.

Financial highlights – Fifth consecutive quarter of year-on-year and quarter-on-quarter growth in Adjusted EBITDA on a rolling twelve month basis

• Q3 FY22 revenues were £36.3m, 28% ahead of the prior year (+20% CER)

o Genetics delivered an excellent performance with revenues 50% above Q3 FY21 driven primarily by higher sales of salmon eggs and harvest revenues. Q3 YTD FY22 revenues up 29%

o Advanced Nutrition reported revenues 5% above the prior year in-line with anticipated seasonal pattern. Q3 YTD FY22 revenues up 15%

o Health revenues were 213% above Q3 2021 driven by Ectosan® Vet and CleanTreat® revenues. Q3 YTD FY22 revenues up 308%

• Q3 FY22 Adjusted EBITDA excluding fair value movements from biological assets increased 26% (+18% CER) as a result of higher revenues, higher asset utilisation and cost discipline

o Adjusted EBITDA margin of 14% (excluding fair value movements from biological assets) for the Period

• Q3 YTD FY22, Group revenues were 32% higher (+28% CER) and Adjusted EBITDA excluding fair value movements from biological assets was 99% higher (+92% CER) than the prior year

o Increase in Adjusted EBITDA margin (excluding fair value movements from biological assets) to 17% (Q3 YTD FY21: 11%) – notable in a global inflationary environment

o Increase in operating loss due to depreciation and amortisation from CleanTreat® units and leased vessels, and first amortisation of Ectosan® Vet and CleanTreat® development costs

o Increase in statutory loss before tax due to significant £5.9m increase in net finance costs due to:

 £3.1m forex loss (Q3 FY21: £0.7m gain) mainly driven by the translation of USD denominated loan balances; and

 £2.3m loss in the fair value of financial instruments (Q3 FY21: £nil) related to hedging of the Company’s NOK bond.

 The YTD impact of these caused a negative movement of £10.7m increasing net finance costs to £10m YTD.

• Cash of £37.3m and liquidity of c.£50.3m (cash and available facility) as at 23 August 2022

• Net debt excluding lease liabilities of £59.3m (31 March 2022: £50.6m)

Operational highlights

• Advanced Nutrition - continued good performance

o Driven by commercial focus and cost discipline with good resilience to inflationary environment through better productivity and asset utilisation

o Positive market environment

• Genetics – recent investments delivering growth in core areas

o Continued growth in salmon egg sales: 59.4m eggs sold in Q3 FY22 (Q3 FY21: 45.2m eggs) demonstrating success of investment in incubation unit in Iceland

o Commercialisation of shrimp genetics (SPR shrimp) exceeding plan in Q3 FY22 and Q3 YTD FY22

• Health - Ectosan® Vet and CleanTreat®

o Capacity utilisation was low in Q3 FY22 after spring delousing with less sea lice pressure faced by existing and potential customers

o Post period end there has been significant and growing customer interest ahead of the peak sea lice treatment season

o Progress in the development of a new configuration and business model for CleanTreat®

 New CleanTreat® configuration based on the next generation of large wellboats which make it feasible to install CleanTreat® systems onboard customer wellboats

 Enables a new sale and licencing business model, eliminates need for PSVs (platform supply vessels) and reduces capital investment

 Commercial discussions are ongoing

 Transition in FY23 will result in limited growth in Adjusted EBITDA for Health but will result in a less capital intensive solution thereafter.

o Obtained variation to the Company’s Marketing Authorisation from the Norwegian Medicines Agency ("NoMA") enabling a second use of treatment water

o Obtained Marketing Authorisation in the Faroe Islands

• Group integration – enhanced customer-centric approach by combining the commercial function across Genetics and Health for salmon

Progress made towards the planned listing on Euronext Growth Oslo in Q4 calendar year 2022

• First step towards a listing on Oslo Børs, the leading seafood and aquaculture listing venue globally

• The Company plans to execute a limited share issue to satisfy the regulatory requirements of a listing on Euronext Growth Oslo

• Intention to uplist to the Oslo Børs in H1 of calendar year 2023 from Euronext Growth Oslo. In tandem, the Board intends to consult with shareholders on whether to maintain its admission of the Company’s shares to trading on AIM

• The potential limited share issue and the timing of the Company’s intended listings on the Euronext Growth and the Oslo Børs are subject to market conditions

Current trading and outlook

• Trading in-line with expectations for FY22:

o Strong outlook for Genetics and Advanced Nutrition sales for remainder of the year

o Continued effort to embed Ectosan® Vet and CleanTreat® into customers’ sea lice strategies and infrastructure

• FY23 is expected to be a transitional year for the Health business area as the Company assumes transfer of some CleanTreat® capacity to the new business model, removing some supply from the market for a period of time

• Medium term targets for the Group and for Health remain unchanged