Statt Torsk ASA

Quarterly Report • Aug 20, 2021

Statt Torsk

Financial Report – Second Quarter 2021 Oslo, 20. August 2021

Q2 2021 Summary

Quarterly highlights: On track!

• Completed capital increase of 115 mNOK
• Listed on Euronext Growth
• Exercised options on 3 feed barges.
• Rekvika facility implemented and in full operation

Quote from our CEO

«Day by day, I experience that we are getting closer to what, in my opinion, will be a new, sustainable, large and profitable industry for Norway.»

CEO Message

Gustave Brun-Lie

CEO

Dear Shareholder

These are not boring days! At least not in cod farming.

Establishing cod farming as a new industry includes innumerable steps. Individually, they may not be very special or visible. But they all make a difference between no industry and a new industry. Day by day, I experience that we are getting closer to what, in my opinion, will be a new, sustainable, large and profitable industry for Norway.

We have experienced both good and bad days through spring and summer, something we must live with. One of the most important news is that during summer we have implemented our first site on a full scale, and will, as planned, deliver 3,000 tonnes of WFE from Rekvika in Q4 2022.

The loss of 48.000 fish at Stokkeneset in July was a bad experience. It reminds us that everything can happen. That we were able to cope with it, and at the same time have become more experienced is good to know. Shortly after clean-up, we were able to resume normal operations, and the fish both eat well and thrive. We expect that by Q3, together with the insurance company, the financial losses will be calculated and settled. Our assessment is that the incident will have no significance for either the execution of plans or the timeline for financing the company's operations.

For the time being, it seems that the biggest impact of the corona pandemic on Statt Torsk is increased delivery time and higher prices for materials and equipment. In particular, equipment for new sites has given us challenges and we have placed orders earlier than expected at "yesterday`s prices". At the same time food prices are rising. Whether this will have an impact on our sales prices this year, is however not possible to say yet. Without the existence of a separate market for farmed cod, I do not know if it has changed, but we can assume that it is similar to other farming.

With the experiences we have made so far in 2021, there is no change in either goals or our schedule for sites and operations. We will deliver as planned.

Over the summer, we have recruited a number of excellent new employees, both at sites and in office. In the management, we have significantly increased our expertise in Fish Health, Sustainability and Health, Safety and Environment. We have a very motivated organization that works towards common goals. A fantastic team!

I am looking forward to the coming period with great excitement and will keep you duly informed.

Happy autumn to all!

Q2 2021 Financial update

• The Board of Directors decided to do a capital increase by raising 115 mNOK in new equity. The process was completed in April. The new equity puts the company in a satisfactory position to execute on the planned expansion.
• Statt Torsk prepared an application for admission to trading at Euronext Growth, and the company was successfully admitted to trading on 23. April 2021.
• We have signed and contracted for 3 feed barges and 1 work boat that will be delivered in 2021 and 2022, according to plan.
• The earlier reported incident at July 18, which resulted in loss of 48.000 fish, is not considered to have a significant effect on the company's planned liquidity

Q2 2021 Market update

• Statt Torsk and our marketing-, sales- and distribution partner; Lerøy Seafood, has made concrete sales plans for Q4.
• Currently there is no mature market for farmed cod. The market must be developed and matured. Most important is that our customers experience predictability both with regards to deliverability as well as with regards to product quality, in addition to the improved freshness that farmed cod provides.
• The market for farmed cod looks very promising. The fact that Norway in April lost its MSC (sustainability certification) for wild

cod fisheries may result in a different perception of quality of Norwegian wild cod. offered. At the same time the quotas for wild cod will be significantly reduced in the coming years. This indicates that the potential for farmed cod will be significant.

• We have not made any sales agreements yet, but are in good business discussions with buyers both abroad and in Norway.

Q2 2021 Operational update

Stokkeneset

• This facility stocked a limited production volume of 200.000+ fingerlings in July 2020, which will be harvested and sold in Q4 2021.
• On 18 July 2021, a rare incident occurred at the facility with the result that 48,000 fish died. Studies and test results state that the cause of the incident was not a disease nor of a biological nature. With almost 100% certainty, we have determined that one or more large animals, most likely whales, have entered the facility below the pens. Report on www.statt.no
• The growth curve follows planned level at the end of Q2. If this growth continues, we expect the average weight in Q4 to be approximately 3.5 kg WFE, which is according to plan for 16-17 months production.
• Both feed factor and mortality rate are within expected development curves at 30. June 2021.
• We expect to deliver about 600 tons WFE in Q4 2021, 200 tons less than expected from this batch, due to the incident on 18. July 2021.

Rekvika

• Our second location, Rekvika, was inaugurated in Q1 in March, with a batch of 200.000 fingerlings from Nofima. Batch 2 of 700.000 from Havlandet arrived in July. We now have our first major production batch of approx. 3000 tons WFE planned for harvest and sales during fall 2022.
• As for Stokkeneset, the growth curve at Rekvika is as expected, the conditions have been perfect in Q2.
• Both feed factor and mortality rate is at the expected level.

Site applications

• We are continuously working on expanding our production capacity with new production locations. We have currently applied for 1 additional location, 2 are ready and will be submitted this fall, in addition to expansion of Stokkeneset. We are ahead of the company's expansion plans.

Sustainability

• We have a strong focus on sustainability and will monitor and report on important KPI´s such as feed conversation ratio, CO2 emission, mortality rate and other measurable impact on environment, starting from Q1 2022. We have staffed up the organization in this respect; developing tools and routines.

Q2 2021 Milestones

• April: Capital increase by raising 115 mNOK in new equity
• April: Admitted to trading on Euronext Growth 23. April 2021
• April: Part 1 of fry production for 2022 implemented

Q2 2021 Financial review

Statt Torsk Group Consolidated Income Statement

(All figures in NOK 1.000)	Note	Q2 2021	Q2 2020	YTD 2021	Y2020
Revenue		1 646	107	1 646	5 081
Operating Income		1 646	107	1 646	5 081
Cost of goods sold		1 460	26	1 630	7 491
Wages		1 033	379	2 316	1 211
Depreciation Other operating expenses	2	501 1 880	246 163	753 3 177	988 816
Operating profit/loss		-3 228	-707	-6 230	-5 425
Net financial items		0	-361	0	-525
Profit/loss before tax		-3 228	-1 068	-6 230	-5 950

Statt Torsk Group Consolidated Statement of Financial Position

(All figures in NOK 1.000)	Note	Q2 2021	Q2 2020	Y2020
Assets
Non-current assets
Deferred tax		17	8	0
Plant and equipment	2	19 888	6 577	7 336
Investment in associates		1 038	0	0
Loan to associates		3 900	0	0
Total non-current assets		24 843	6 585	7 336
Current assets
Inventories	3	19 727	9 450	8 007
Receivables	4	21 401	1 590	13 722
Cash and cash equivalents		106 644	290	33 030
Total current assets		147 772	11 330	54 759
Total assets		172 615	17 915	62 095

Statt Torsk Group Consolidated Statement of Financial Position

(All figures in NOK 1.000)	Note	Q2 2021	Q2 2020	Y2020
Equity and Liabilities
Equity
Share capital		16 611	5 328	9 880
Additional paid-in capital		152 629	-6	51 183
Retained earnings		-6 230	-8 146	0
Total equity	5	163 010	-2 824	61 063
Liabilities
Non-current liabilites
Convertible loans		0	14 864	0
Other long term liabilites		0	3 038	0
Total other non-current liabilities		0	17 902	0
Current liabilites
Accounts payable		8 743	2 592	736
Other current liabilities		862	245	296
Total current liabilites		9 605	2 837	1 032
Total equity and liabilities		172 615	17 915	62 095

Statt Torsk Group Consolidated Statement of Cashflow

(All figures in NOK 1.000)	Q2 2021	Q2 2020	Y 2020
Cashflow from operating activities
Net profit before tax	-3 228	-1 068	-5 950
Depreciation	501	246	988
Change in inventory and biological assets	-7 718	-4 006	-3 107
Change in receivables	6 118	422	-12 914
Change in accounts payable	-6 284	2 168	689
Change in other items	27	285	135
= Net cashflow from operating activities	-10 584	-1 953	-20 159
from investing Cashflow activities
Purchase of plant and equipment	-8 899	0	-6 883
Investments in assosiated companies	-900	0	0
= Net cashflow from investing activities	-9 799	0	-6 883
Cashflow from financing activities
New interest-bearing debt	0	-1 325	0
Proceeds from issuing of share capital	108 161	0	55 570
= Net cashflow from financing activities	108 161	-1 325	55 570
Net change in cash and cash equivalents	87 778	-3 278	28 528
Cash and cash equivalents (opening balace)	18 866	3 568	4 502
= cash and cash equivalents (closing balace)	106 644	290	33 030

Statt Torsk Group Notes Q2 2021

Note 1 General information and Reporting principles

Reporting entity

Statt Torsk AS is registered and domiciled in Norway, head office in Stad on the west coast of Norway. The statements includes the 100% owned subsidiary Stokkeneset Reiarlag AS. Figures of 2020 are pro forma.

Reporting principles

The financial statments have been prepared in accordance with The Norwegian Accounting Act and generally accepted accounting principles in Norway. The financial information is not audited. Accounting principles used in 2021 are the same as used in the 2020 financial statements (NGAAP)

Bought and sold fry in the period are netted in the accounts, and does not appear as revenue.

Biological assets includes all directly attributable farm costs. Costs such as depreciation, adminstration and other common costs are not included in the book value. This principle will be used until the market and a predictable price picture for wild farmed cod is established.

Deferred tax apply to the subsidiary. The parent company dos not book deferred tax assets.

For complete accounting principles, we refer to the Annual Accounts for 2020.

Statt Torsk Group Notes Q2 2021

Note 2 Fixed assets	Farm facilities	Vessels	Other equipment	Total
Acquisition cost as of 01.04	9 533	5 060	61	14 654
Additions	8 899	0	0	8 899
Disposals	0	0	0	0
Accumulated depreciation as of 30.06	-3 289	-358	-18	-3 665
Book value as of 30.06	15 143	4 702	43	19 888
Note 4 Receivables			Per 01.04	Per 30.06
			794	794
Accounts receivables
Prepayment farming facilities				0
			7 295

Prepayment contracts barge and vessel 5 963 9 074 Fry to fingerlings 5 250 6 825 VAT 2 250 4 200 Other short term receivables 507 508 Total 22 059 21 401

Note 3 Inventory and biological assets	Biological assets	Raw materials	Total
As per 01.04	16 056	1 203	17 259
Delivered fry, fingerlings and raw materials	-1 400	2 665	1 265
Consumption of raw materials	3 178	-3 178	0
Direct production costs added	1 203	0	1 203
Book value as of 30.06	19 037	690	19 727

		Share
Note 5 Equity	Share capital	premium	Other equity	Total
Equity as of 01.04.	12 011	49 068	-3 001	58 078
New shares issued	4 600	110 400	0	115 000
Share issue/listing costs		-6 839		-6 839
Profit/loss before tax			-3 228	-3 228
Equity as of 30.06	16 611	152 629	-6 230	163 010

Statt Torsk AS Board and CEO

Nicolas Brun-Lie (sign)

Chairman

Marianne Kveldstad (sign)

Board member

Bjug Borgund (sign) Board member/CFO

Øyvind Schanke (sign) Board member

Gustave Brun-Lie (sign) CEO

Statt Torsk AS Top 20 shareholders per 19.08.2021

Name	Holding	% of total
Orinoco AS	37 400 000	22,51 %
T.D. Veen AS	16 525 000	9,95 %
Medvode AS	15 040 000	9,05 %
Techbridge AS	14 597 065	8,79 %
Borgund Brygge AS	10 089 735	6,07 %
DnB NOR Bank ASA	8 100 000	4,88 %
Bjug A. Borgund AS	5 875 409	3,54 %
Bypass Consulting AS	4 646 750	2,80 %
Alden AS	4 000 000	2,41 %
Brekke Holding AS	2 700 000	1,63 %
Secom AS	2 500 000	1,51 %
Frode Borgund	2 475 313	1,49 %
Lindvard Invest AS	2 314 258	1,39 %
Nersnæs AS	2 068 571	1,25 %
Tigerstaden Marine AS	2 067 048	1,24 %
Ervik Havfiske AS	2 000 000	1,20 %
Alundo Invest AS	2 000 000	1,20 %
Forte Norge	1 984 500	1,19 %
Mami Holding AS	1 820 000	1,10 %
Fjellseter Utvikling AS	1 560 000	0,94 %
Total top 20	139 763 649	84,14 %
Total number of shares	166 112 707	100,00 %

Definitions

Definitions and glossary

• Board Members: Members of the Company's Board of Directors
• Board of Directors: The Board of Directors of the Company
• CEO: The Group's designated chief executive officer
• CFO: The Group's designated chief financial officer
• COO: The Group's designated chief operating officer
• Company: Statt Torsk AS
• Group: The Company and its subsidiaries
• HSE: Health, Safety and Environment
• KPI: Key Performance Indicators
• Lerøy: Lerøy Seafood AS
• Management: The Company's senior management
• NGAAP: Norwegian generally accepted accounting principles for small enterprises in Norway, NRS 8
• Shares: The Company's 166,112,707 outstanding shares, each with a par value of NOK 0.10.
• VAT: Value Added Tax
• WFE: Whole Fish Equivalent

Disclaimer and important information

(General): By reading this presentation dated 20 August 2021 (the "Presentation"), or attending a meeting or an oral presentation held in relation thereto, you (the "Recipient") hereby acknowledge, agree and accept that you have read, and agree to be bound by the terms, conditions and limitations set out in this disclaimer. This Presentation has been produced by Statt Torsk AS (the "Company") solely for the purpose of presenting the Company's financial results for Q2 2021 to the market and the investors. The financial results are based on NGAAP and do not meet the requirements for a full quarterly report under IFRS and the results have not been audited. The Presentation does not constitute or form part of, and should not be construed as, an offer, invitation or recommendation to purchase, sell or subscribe for any securities in any jurisdiction and neither the issue of the Presentation nor anything contained herein shall form the basis of or be relied upon in connection with, or act as an inducement to enter into, any investment activity.

(No representation or warranty / disclaimer of liability): To the best knowledge of the Company, the information contained in this Presentation is in all material respects in accordance with the facts as of the date hereof and contains no material omissions likely to affect its import. Please note that none of the Company or its affiliates, directors, officers, employees, advisors or representatives of any of the aforementioned (collectively the "Representatives") make any representation or warranty (express or implied) whatsoever as to the accuracy, completeness or sufficiency of any information contained herein, and nothing contained in this Presentation (including, but not limited to, projections, estimates, targets and opinions) is or can be relied upon as a promise or representation by the Company or any of the Representatives.

(Forward-looking statements / information from third parties): This Presentation contains certain forward-looking statements relating to inter alia the business, financial performance and results of the Company and the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements in this Presentation are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. Forward-looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward looking statements. Many of these risks and uncertainties relate to factors that are beyond the Company's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of regulators and other factors such as the Company's ability to continue to obtain financing to meet its needs, changes in the political, social and regulatory framework in which the Company operates or in economic or trends or conditions. None of the Company or the Representatives provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor do any of them accept any responsibility for the future accuracy of opinions expressed in this Presentation or the actual occurrence of forecasted developments, and the Company assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to its actual results. Investments in the Company's shares involves inherent risk and prospective investors risk to lose all or parts of their investment. This Presentation contains information obtained from third parties. Such information has been accurately reproduced and, as far as the Company is aware and able to ascertain from the information published by that third party, no facts have been omitted that would render the reproduced information inaccurate or misleading.

(No updates): This Presentation speaks as at the date set out on its front page. Neither the delivery of this Presentation nor any further discussions of the Company with the Recipient shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. The Company does not assume any obligation to update or revise the Presentation or disclose any changes or revisions to the information contained in the Presentation (including in relation to forward-looking statements).

(No investment advice): The contents of this Presentation shall not be construed as technical, financial, legal, business, investment, tax or other professional advice. The Recipient should consult its own professional advisers for any such matter. By attending or receiving this Presentation, you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company's business.