Grieg Seafood (GSF) Capital Markets Update 2020 presentation summary

Strategic priorities and growth targets

• Priorities: improve profitability, streamline and execute growth, secure financial capacity, embed sustainability and create shareholder value.

• Target harvest of 100,000 tonnes in 2022 and 130,000 tonnes in 2025 through organic growth, excluding Shetland assets; 2020–2025 volume growth target of 45%.

• Lift volumes from 75,000 to 88,000 tonnes through operational improvements and limited capital, then to 130,000 tonnes by 2025 with growth investment.

• Target average farming cost below NOK 40/kg in Norway and CAD 7/kg in British Columbia by end-2022; provide attractive dividends and maintain sufficient financial capacity.

Operational improvement

• Rogaland: YTD 2020 cost NOK 42/kg; target below NOK 40/kg, with 3,000 tonnes of additional post-smolt capacity planned by 2025.

• Finnmark: YTD 2020 cost NOK 44/kg; target below NOK 40/kg, with 4,000 tonnes of post-smolt capacity and 3–4 new sites planned before 2025.

• British Columbia: YTD 2020 cost CAD 7.9/kg; target below CAD 7/kg, supported by larger smolt, new farm sites and improved production-cycle planning.

• Shetland asset divestment process initiated; planned measures include ceasing Skye operations and greater use of lice skirts and freshwater treatments.

Newfoundland and value chain development

• Newfoundland greenfield project has 11 sea-site licenses, including 8 approved and 3 in application; 45,000-tonne capacity ambition and first harvest planned for 2022.

• Project investment estimated at ~CAD 300 million; total investment at full capacity estimated at ~NOK 90/kg, including acquisition and biomass but excluding milestones.

• Own integrated sales organization planned to start operations in late Q1 2021, targeting lower price volatility, higher margins and stronger retail, foodservice and processor relationships.

• Sustainability goals include 100% ASC certification by 2023, sustainable feed ingredients, improved fish survival and quality, lower costs and reduced carbon footprint.