Grieg Seafood — Earnings Release 2022

Aug 23, 2022

Grieg Seafood ASA: Q2 2022 - best quarter ever

Grieg Seafood ASA: Q2 2022 - best quarter ever

Highlights

* Operational EBIT of NOK 986 million, with operational EBIT/kg of NOK 41.6,

driven by exceptionally high prices and good biological performance

* Accelerated harvest taking advantage of high market prices - good

coordination between farming and sales

* First fish to sea in Newfoundland, with high survival

* Seawater production good in all regions with stable survival

* Group farming cost of NOK 48.6 per kg (NOK 50.7 in Q2 2021). NOK 42.7 per kg

for Norwegian operations, despite inflationary pressure

* Expect harvest of 21,400 tonnes in Q3 2022 and 87,000 tonnes for the full

year 2022

Financial results

Operational EBIT for Grieg Seafood was NOK 986 million in the second quarter, up

from NOK 44 million in the corresponding period last year. Harvest volume was

23,700 tonnes during the period (17,800), which gives an operational EBIT per kg

of NOK 41.6 (2.4).

"As a continuation of the positive trend in Q1, the second quarter of 2022 also

turned historic. Due to the strongest market the industry has seen, coupled with

solid production, I am proud to present Grieg Seafood's best result in a single

quarter ever. I want to sincerely thank all of my dedicated and hard working

colleagues in both farming and sales for their efforts and achievements

throughout the quarter. In line with the strategy of our integrated sales

organization, we successfully expedited some harvest to capitalize on strong

prices in the market," says CEO Andreas Kvame in Grieg Seafood.

The Norwegian farming operations delivered record results during the quarter,

driven by high prices and good biological performance. Results in both Rogaland

and Finnmark were positively impacted by strong price realization from high

average harvest weights and positive cost development.

Results in British Columbia were solid, driven by good price achievement from

premium on VAP products, in addition to stable costs from harvesting of sites

with good biological performance.

In Newfoundland, fish transferred to sea is performing well, with high survival

and no sea lice issues. Currently, two million smolt has been transferred to

sea, with harvesting commencing late 2023.

Outlook

Global harvest of Atlantic salmon in 2022 is expected to decrease by 1% with all

major regions seeing declining volumes. In the first half of 2022, the global

harvest was down 4% compared to the first half of 2021. Consequently, harvest

volume for the second half of 2022 is expected to increase by close to 1%

compared to the corresponding period in 2021.

With limited supply growth in the second half of 2022, Grieg Seafood expects

good market conditions going forward. However, current inflation reducing

household purchasing power, might impact demand from both the HoReCa and the

retail segment.

Over the last years, Grieg Seafood has been able to reduce farming costs through

operational improvement initiatives. However, the general cost inflation, and

higher feed prices in particular, are expected to gradually impact farming costs

going forward.

Grieg Seafood cost ambition remains - being the cost leader in all regions where

the company operates. To achieve this, the company executes on its strategic

priorities - post smolt, preventative farming practices, digitalization,

integrated operations and by utilizing existing capacity.

Grieg Seafood generally targets an annual contract share of 20-50%. Estimated

contract share for the Norwegian operations in Q3 2022 is 37% and 22% for the

full year 2022.

In the third quarter of 2022, expected harvest volume is 21,400 tonnes,

distributed as follows:

* Rogaland: 7,100 tonnes

* Finnmark: 7,100 tonnes

* BC: 7,200 tonnes

The company now guides for a harvest volume of 87,000 tonnes in 2022, down from

the previously guided level of 90,000 tonnes. Estimated harvest volume in

Finnmark has been reduced by 2,000 tonnes to 36,000 tonnes due expedited harvest

to capitalize on strong market and somewhat reduced growth in sea during the

quarter as a result of lower temperatures. Estimated harvest volume in BC has

been reduced by 1,000 tonnes to 21,000 tonnes due to accelerated harvest of fish

due to risk of early maturation. Of the total harvest volumes for 2022, Grieg

Seafood expects to sell some 5-10% as VAP products.

Results presentation

CEO Andreas Kvame and CFO Atle Harald Sandtorv will present the results live at

Hotel Continental today at 9:00 a.m. CEST.

The presentation can be accessed at https://investor.griegseafood.com/reports-&-

presentations#quarterly, or with the following link:

https://channel.royalcast.com/landingpage/hegnarmedia/20220823_2/

The presentations and the subsequent Q&A will be held in Norwegian. An English

transcript of the presentations will be made available at

https://investor.griegseafood.com/reports-&-presentations#quarterly.

For further enquiries, please contact:

Andreas Kvame, CEO

Cell phone: +47 907 71 441

Atle Harald Sandtorv, CFO

Cell phone +47 908 45 252

About Grieg Seafood

Grieg Seafood ASA is one of the world's leading salmon farmers. Our farms are

in Finnmark and Rogaland in Norway, and British Columbia as well as Newfoundland

in Canada. Our headquarter is located in Bergen, Norway. Grieg Seafood ASA

was listed at the Oslo Stock Exchange in June 2007. More than 750 people work in

the company throughout our regions.

Sustainable farming practices are the foundation of Grieg Seafood's

operations. The lowest possible environmental impact and the best possible fish

welfare is both an ethical responsibility and drive economic profitability.

Towards 2026, we aim for global growth, cost improvements and to evolve from a

pure salmon supplier to an innovation partner for selected customers.

To learn more, please visit www.griegseafood.com

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.