Grieg Seafood — Earnings Release 2023

May 12, 2023

Grieg Seafood ASA: Q1 2023 results

Grieg Seafood ASA: Q1 2023 results

Highlights

* Harvest volume of 15,357 tonnes (16,916 tonnes)

* Operational EBIT in the quarter of NOK 385 million (NOK 453 million), with

operational EBIT/kg of NOK 25.1 (26.8)

* Salmon market remains strong, supporting earnings

* Harvest volume above guidance due to advanced harvesting related to

biological challenges. Increasing smolt release to compensate and rebuild

biomass

* Newfoundland developing according to plan

* 81% of harvested volume in the quarter was ASC certified

* Dividend proposal of NOK 4.5 per share based on a record high 2022 result,

subject to approval by the Annual General Meeting in June 2023

* Expect harvest of 21,300 tonnes in Q2 2023 and 80,000 tonnes for the year

2023

Financial results

Operational EBIT for Grieg Seafood was NOK 385 million in the first quarter of

2023, compared to NOK 453 million in the corresponding period last year. Harvest

volume was 15,357 tonnes during the period (16,916), which gives an operational

EBIT per kg of NOK 25.1 (26.8).

Harvest volume in Rogaland was 7,502 tonnes in the quarter (9,645), 2,200 tonnes

above guidance due to advance harvesting to reduce biological risk related to

Infectious Salmon Anemia (ISA) at one site and winter ulcers. Operational

EBIT/kg ended at NOK 38.4 for the quarter (33.5) and was impacted by a reduced

superior share, negative contribution from contracts and reduced average harvest

weight.

In Finnmark, harvest volume was 7,856 tonnes in the quarter (5,175), 2,100

tonnes above guidance due to advance harvesting related to the Spiro parasite

(Spironucleus salmonicida) and winter ulcers. No new incidents of Spiro have

been detected at the freshwater facility during the first quarter. Operational

EBIT/kg for the quarter ended at NOK 20.1 (25.0), impacted by a low superior

share, low average harvest weight and negative contribution from contracts.

To compensate for the advance harvesting in Finnmark, Grieg Seafood will

increase smolt release for the remainder of the year to rebuild biomass.

However, the initiative is not expected to fully compensate for the lost

biomass, and the 2023 harvest target for Finnmark is reduced from 28,000 to

26,000 tonnes.

In BC, there was no harvest during the first quarter. This was according to plan

to prioritize growing of biomass. Seawater performance was good during the

quarter with stable survival rate at 92%. In Q1 2022 harvest volume in BC was

2,096 tonnes.

In Newfoundland, freshwater production was good during the quarter, with good

fish health and growth. Next transfer of smolt to sea is scheduled for late

spring or early summer 2023. Seawater production in the region is developing

according to plan, with high survival and no sea lice issues. First harvest from

this new region is expected to commence towards the end of 2023.

Commenting on the quarter, Andreas Kvame, CEO of Grieg Seafood ASA said:

"The markets for Atlantic salmon remained strong during the quarter, with solid

demand from both the retail, and the hotel and restaurant segments. On the

farming side we were still impacted by biological challenges in the beginning of

the year, though biology improved throughout the quarter and is currently good

in Rogaland, BC and Newfoundland. Like in the previous quarter, Finnmark is

still impacted by the Spiro parasite. Mitigating measures have been taken to

address the issues. The fish in Newfoundland handled a cold winter in the sea

well and the development of the region is going according to plan.

In Norway, we are expecting the final proposal of the resource tax to be made

public soon. The current version of the tax would negatively impact a

sustainable development of the industry in Norway significantly. We sincerely

hope that the Parliament will make the necessary changes to secure continued

innovation, investments and development throughout the production cycle, which

is necessary to improve biology and sustainability of Norwegian salmon farming."

Outlook

Global harvest of Atlantic salmon in 2023 is expected to be in line with 2022.

The current harvest estimates indicate a significant difference between supply

volumes in the first and second half of 2023, the same pattern as observed in

2022. Grieg Seafood expects a continued strong salmon market going forward.

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

contract share for the Norwegian operations in Q2 2023 is 12% and 15% for the

full year 2023. The contract market is somewhat subdued due to uncertainty

related to the proposed resource rent tax on salmon in Norway.

In Q2 2023, expected harvest volume is 21,300 tonnes, distributed as follows:

* Rogaland: 10,500 tonnes

* Finnmark: 5,500 tonnes

* BC: 5,300 tonnes

Grieg Seafood guides for a harvest volume of 80,000 tonnes in 2023, down from

previously guided 82,000 tonnes.

* Rogaland: 29,000 tonnes

* Finnmark: 26,000 tonnes

* BC: 20,000 tonnes

* NL: 5,000 tonnes

Results presentation

Grieg Seafood ASA will release its first quarter 2023 report on Friday, 12 May

2023, at 6:00 a.m. CEST.

The same day at 8:00 a.m. CEST, CEO Andreas Kvame and CFO Atle Harald

Sandtorv will present the results live at Hotel Continental, Stortingsgaten

24/26, Oslo.

Following the presentation, it will be opened up for questions from the

audience. The presentation and the subsequent Q&A will be held in Norwegian.

A live webcast from the presentation can be accessed

at www.investor.griegseafood.com or with the following link:

https://channel.royalcast.com/landingpage/hegnarmedia/20230512_1/.

Webcast participants need to register to post questions. A recording of the

webcast and an English transcript of the webcast will be made available on our

website.

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, as well as in British Columbia and

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.