Icelandic Salmon AS

Earnings Release • Feb 15, 2024

Q4 2023 results: Navigating challenging conditions and positioning for further growth

Q4 2023 results: Navigating challenging conditions and positioning for further growth

Bíldudalur, 15th of February 2024

Icelandic Salmon is the parent company of Arnarlax, and other subsidiaries

involved in salmon farming and processing in Iceland. The companies are

collectively referred to as "Icelandic Salmon" or the "Group".

Operations

In the fourth quarter 2023, Icelandic Salmon continued ramping up harvest

volumes, up from both the previous quarter and the corresponding quarter last

year. The group harvested 7,219 tonnes up from 6,008 tonnes in the fourth

quarter 2022, an increase of 20 per cent. The high harvest volume in the fourth

quarter was partly a result of the previously reported biological challenges,

which prompted the company to harvest early for animal welfare reasons.

"I am proud of our team's effort in navigating challenging working conditions.

As previously reported, our team had to adapt quickly to a biological challenge

in Tálknafjörður, where biological challenges posed a risk to fish health and

continued sustainable growth," said Bjørn Hembre, CEO of Icelandic Salmon.

The group reported revenues of EUR 51.6 million in the fourth quarter 2023,

compared to 51.7 million in the fourth quarter 2022. The EBIT for the quarter

was EUR 2.0 million, resulting in an EBIT/kg of EUR 0.28. The EBIT/kg was down

from the corresponding quarter last year of EUR 1.55, mainly due to higher cost

level related to the reported biological challenges. A one-off cost of 5.2

million EUR was booked in the fourth quarter 2023, adjusted for this the EBIT/kg

was EUR 1.00.

Strategic milestones

Icelandic Salmon continues to monitor markets closely with the aim to obtain the

best price possible for its products. Partly for this reason, the company

increased its sales to Asia and Europe in the fourth quarter, and reduced sales

to the US where markets were temporarily softer.

The Group is awaiting approval for a new 10,000-tonnes farming license in

Ísafjarðardjúp, a 4,500-tonnes MAB license in Arnarfjörður and new MAB

utilization regime for two sites in Arnarfjörður. Uncertainty persists regarding

the allowed share of fertile fish on the Ísafjarðardjúp license and the

implications for Arnarfjörður applications under Iceland's new proposed

regulatory regime. A final decision is expected in 2024.

In January, Icelandic Salmon received a new license for its smolt plant Gileyri

for an additional volume capacity of 1,000 tonnes. Implying opportunities for

increase production on existing capacity levels and a potential for further

scale-up.

Within sales and marketing, Icelandic Salmon has strengthened its team with the

appointment of Linda Gunnlaugsdottir as the CSO in January.

Outlook

For the year 2024 as a whole, Icelandic Salmon expects to harvest 15,000 tonnes,

in line with previous guidance. The spring 2022 generation is performing well

and shows significant improvements on key parameters.

For the longer-term, the group continue to see a potential for growth up to

26,000 tonnes on existing licenses. The promising performance of this year's

smolt stocking supports this view.

"We are optimistic about Icelandic Salmon's future growth, despite recent

biological challenges and expected, not yet confirmed regulatory changes. We

have implemented effective measures with neighboring farmers to address the

biological challenges and maintain an open dialogue with the Icelandic

government to navigate regulatory shifts. Our shared ambition is to grow the

industry sustainably. We are committed to continue to deliver value for our

shareholders, for our other stakeholders and for Iceland," said Bjørn Hembre,

CEO of Icelandic Salmon.

Presentation details

Attached is the presentation for the fourth quarter 2023.

CEO, Bjørn Hembre and CFO, Jónas Heiðar Birgisson will be presenting the results

at 8:00 am Icelandic time (09:00 am CET) via a webcast on arnarlax.webcast.is.

The presentation will be followed by a Q&A session. Questions can be sent before

and during the presentation to questions@arnarlax.is

(mailto:questions@arnarlax.is). A recording of the presentation will be made

available on the company's website.

After the presentation, one-on-one meetings may be scheduled either at our

office in Reykjavík (Borgartún 18) or on Teams from 9:00 am to 2:00 pm Icelandic

time. If interested, please send an email to hjortur@arnarlax.is

(mailto:hjortur@arnarlax.is).

For further information, please contact:

CEO Bjørn Hembre

Tel: +354 620 1936

Email: bjorn@arnarlax.is (mailto:bjorn@arnarlax.is)

CFO Jónas Heiðar Birgisson

Tel: +354 414 0609

Email: jonas@arnarlax.is (mailto:jonas@arnarlax.is)

About Icelandic Salmon:

Icelandic Salmon is listed at the Euronext Growth. The company is the 100% owner

of Arnarlax ehf, the leading farming company in Iceland with their head office

in Bildudalur. The company is fully integrated, from egg to the fish is

delivered to customers in the market, with control over all parts of the value

chain.

See https://www.arnarlax.is for more information about the company.

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act