Norcod — Interim / Quarterly Report 2021

May 6, 2021

Norcod AS: Quarterly Report Q1 2021

Norcod AS: Quarterly Report Q1 2021

HIGHLIGHTS

• Biological performance still going strong.

• Next generation of fry successfully transferred to and thrives in growth phase facilities.

• New production site granted.

• In Q1 the company has a satisfactory financial position with positive

operating profit and a positive development in the fair value of the biomass.

• The company as of Q1 converted to IFRS at group level.

IFRS CONVERSION

This is Norcod’s first consolidated interim financial statement

prepared as a Group and in accordance with IFRS. The Groups

parent company is Norcod AS and the subsidiary is Norcod

Drift AS. During the start up phase, Norcod’s financial positions

have become stronger with a positive increase in the Groups

operating profit. As of Q1 2021, the operating profit after

adjustment of the biomass assets is NOK 1,5 million (Q1 2020:

-4,5 million). The development in the fair value adjustment has

been positive, as expected with NOK 2,8 million in Q1 2021

compared to NOK -9,4 millions in Q1 2020.

Prior to 2021, Norcod AS reported stand-alone financial

statements, as the activity in the subsidiary Norcod Drift AS was

very limited. As the Group is now increasing its operations,

Norcod has from Q1 2021 started to report consolidated

figures according to IFRS. The use of IFRS as our financial

reporting standards on group level, is driven by our wish to

strengthen the comparability between the Norcod Group and

other companies across national borders. By using IFRS, the

Norcod Group believes that investors and other stakeholders

are given the basis for making informed financial decisions that

contribute to improved capital allocation and reduced capital

costs.

Few changes have been identified during our IFRS project, and the

only material difference is related to the required fair valuation of

biomass under IFRS. The model and principles are described in

these interim financial statements. We see as expected that the

Group's first cod in sea (Q1 2020) has a negative fair value

adjustment due to low volume and start up costs. But our first

ordinary generation that has been fair valued from Q2 2020, has

given positive fair value adjustments each quarter based on the

assumptions made by the Group. We have described these

assumptions in these interim financial statements, and we point

out that as we are still experiencing strong biological

performance, uncertainty in our estimates are expected to be

reduced going forward, as we increase our operations and gain

more knowledge about the market and cod biology.

Please read the attached Q1 report.

For more information, contact:

Christian Riber

CEO, Norcod

+47 905 37 990

cr@norcod.no