Grieg Seafood — Earnings Release 2021

Feb 15, 2022

Grieg Seafood ASA: Q4 2021 results - Strong operational performance and good cost development

Grieg Seafood ASA: Q4 2021 results - Strong operational performance and good cost development

Highlights

* EBIT before production fee and fair value adjustment of NOK 265 million

driven by high market prices and declining operational cost

* Strong operational performance, with increased survival in all regions and

good cost development

* Completion of Shetland transaction and debt refinancing by NOK 3.2 bn

sustainability-linked credit facility strengthens financial position to

execute strategic priorities and deliver shareholder return

* Commenced value added processing in Norway

* Ranked 2(nd) by the Coller FAIRR Protein Producer Index of the world's most-

sustainable protein producers

* Received Leadership (A) score by the CDP for our transparency and actions

related to climate change

* Expect harvest of 15 500 tonnes in Q1 2022 and 90 000 tonnes for the full

year 2022

Financial results

The average spot price for salmon (Nasdaq Salmon Index) for Q4 2021 was NOK

59.7 per kg, up NOK 16.5 per kg from Q4 2020, and up NOK 5.2 per kg compared to

Q3 2021. The increase was driven by muted supply growth combined with strong

demand from supermarkets and the recovery in the HoReCa segment.

The higher prices combined with a 17% increase in harvest volumes from Q4 2020

to Q4 2021 of 23 727 tonnes, generated sales revenues of NOK 1 513 million

during the quarter, up 32% compared to Q4 2020. The Group's operational EBIT for

the quarter came to NOK 265 million compared to NOK -16 million in Q4 2020 and

EBIT per kg ended at NOK 11.2 (NOK -0.8 in Q4 2020).

Farming operations delivered strong performance, with increased survival in all

regions. Finnmark delivered on the expected cost improvements, primarily due to

good biological conditions on the harvesting sites during the quarter. In

addition, 100% of the net production in the region achieved status as ASC

certified. In Rogaland biological conditions were satisfactory during the

period, with good sea lice control, though price achievement was somewhat

impacted by quality costs caused by PD on two sites. In British Columbia, price

achievement was good, but this was partly offset by high costs due to harvest

from sites with high mortality in earlier periods. 71% of the net production in

BC is ASC certified, however all fish harvested in BC in 2022 will come from ASC

certified sites.

In Newfoundland, the smolt is healthy and growing well, and focus during the

quarter was preparing for seawater operations. This is going according to plan,

and the first smolt release remains on schedule for spring / summer 2022.

"In the fourth quarter, operations continued the positive improvement momentum

seen coming out of the third quarter, with improving survival rates and a

declining cost level. Development throughout the year has been largely as

expected, with costs in Norway gradually declining towards NOK 40 per kg. In BC,

costs have been too high, but successful mitigating efforts have reduced impact

from harmful algae blooms compared to earlier years, and we expect positive

results from these initiatives going forward.

After year-end, we signed an agreement for refinancing of our debt, which

combined with the completion of the Shetland transaction, secures the long-term

financing of ongoing operations and the flexibility to execute on our strategic

priorities, while maintaining a robust capital structure. We are excited for

2022 and the years to come," says CEO Andreas Kvame in Grieg Seafood.

Refinancing

On 9 February 2022 Grieg Seafood announced signing of a NOK 3.2 billion five-

year senior secured sustainability-linked facilities agreement with DNB Bank ASA

and Nordea Bank, refinancing the company's existing bank facilities. The

agreement provides for a NOK 750 million term loan, an EUR 75 million term loan,

a NOK 1 500 million revolving credit facility. In addition, Grieg Seafood has

access to a NOK 200 million overdraft facility. The new debt structure will

reduce financial costs and give a more flexible covenant structure.

Outlook

The global harvest of Atlantic salmon in 2022 is expected to remain at a similar

level as in 2021, according to Kontali.

The Covid-19 pandemic has impacted the salmon market the last two years, with a

shift in demand from HoReCa to the retail segment. Going into 2022, salmon

demand is still impacted by the pandemic and partly characterized by volumes

channelled from the HoReCa to retail. However, with global progress on

vaccination against Covid-19 and reopening of countries and the HoReCa segment,

the global salmon markets are expected to normalize. Temporary lockdowns might

be experienced, but we believe the higher retail consumption seen during the

pandemic will remain, adding to overall demand as the HoReCa segment recovers to

pre-pandemic levels. With no supply growth in 2022, combined with outlook for

continuing strong demand, we believe in increased market prices going forward.

Estimated contract share for the Norwegian operations in Q1 2022 is 16%, and

17% for the full year 2022.

In the first quarter of 2022, expected harvest volume is 15 500 tonnes,

distributed as follows:

* Rogaland: 8 000 tonnes

* Finnmark: 5 000 tonnes

* BC: 2 500 tonnes

Results presentation

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

webcast today at 8:00 a.m. CET.

The presentation can be accessed at investor.griegseafood.com, or with the

following link:

https://channel.royalcast.com/landingpage/hegnarmedia/20220215_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/

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 2025, 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.