Arctic Fish : Interim report Q2 2022

Quarterly Report

Q2 2022

31st of August 2022

Quarterly report

Financial statements and notes

Key information

Harvesting volume (HOG tonnes)

3.793

4.221

		2.925	2.938
	1.824
					1.029
Q1'21	Q2'21	Q3'21	Q4'21	Q1'22	Q2'22

5,7

Farming Operational EBIT pr. kg (NOK)	36,8

20,4

9,7 10,6 10,1

Q1'21

Q2'21

Q3'21

Q4'21

Q1'22

Q2'22

Q2 report 2022

Table of Contents

Cautionary note regarding forward-looking statements	.......................................................................2
Arctic Fish Holding.....................................................................................................................................	3
Important events ........................................................................................................................................	4
Principal activities ......................................................................................................................................	5
Q2 2022 Performance...............................................................................................................................	7
Outlook .....................................................................................................................................................	13
Board declaration....................................................................................................................................	15
Consolidated Income Statement...........................................................................................................	16
Statement of Financial Position.............................................................................................................	17
Statement of Equity ................................................................................................................................	18
Statement of Cash Flow .........................................................................................................................	19
Note 1 - Accounting Principles.............................................................................................................	20
Note 2 - Farming summary ...................................................................................................................	22
Note 3 - Biomass.....................................................................................................................................	23
Note 4 - Non-recurring events..............................................................................................................	26
Note 5 - Fair Value Adjustments ..........................................................................................................	26
Note 6 - Related parties.........................................................................................................................	27
Note 7 - Financial Covenants................................................................................................................	28
Note 8 - Shareholder List ......................................................................................................................	30
Note 9 - Alternative Performance Measures ......................................................................................	31

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Q2 report 2022

Cautionary note regarding forward-looking statements

This quarterly report includes forward-looking statements that reflect the Company's current views with respect to future events and financial and operational performance. These forward-looking statements may be identified by the use of forward-looking terminology. These forward-looking statements are not historic facts. The forward-looking statements are not guarantees of future performance. The Company's actual financial position, operating results and liquidity, and the development of the industry in which the Company operates, may differ materially from those made in, or suggested, by the forward-looking statements. The Company cannot guarantee that the intentions, beliefs, or current expectations upon which its forward-looking statements are based will occur.

By their nature, forward-looking statements involve, and are subject to, known and unknown risks, uncertainties, and assumptions as they relate to events and depend on circumstances that may or may not occur in the future. Because of these known and unknown risks, uncertainties and assumptions, the outcome may differ materially from those set out in the forward-looking statements.

These forward-looking statements speak only as at the date on which they are made. The Company undertakes no obligation to publicly update or publicly revise any forward-looking statement, whether as a result of new information, future events or otherwise. All subsequent written and oral forward-looking statements attributable to the Company or to persons acting on the Company's behalf are expressly qualified in their entirety by the cautionary statements referred to above and contained elsewhere in this report.

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Q2 report 2022

Arctic Fish Holding

Arctic Fish Holding AS was incorporated on 1 October 2020. The Company is a holding company which owns 100% of the shares in Arctic Fish ehf, the former parent company of the Group, incorporated on 1 July 2011. Arctic Fish ehf. was founded in 2011 and is now one of the leading salmon farmers in Iceland, situated in the West Fjords, a region with favourable conditions for fish farming. The West Fjords are known for their pristine nature, good seawater conditions, low density, and high growth potential.

The Group has a modern and high capacity smolt facility with recirculating aquaculture systems ("RAS") technology, being currently the only RAS facility in Iceland with large-scale production capacity. 7,443 tonnes of head-on gutted ("HOG") salmon were harvested by the Group in 2020 and 11,479 tonnes HOG in 2021, or a 54% growth year over year. So far, for the first half of 2022 the Group has harvested 5,250 tonnes which amounts to 46% of the volumes compared to 2021.

The Group has farming licences for a total of 27.1 thousand tonnes maximum allowed biomass ("MAB"), of which 5.3 thousand tonnes relate to licences for rainbow trout that are in the process of being converted to salmon licences.

The Group also has applications for an additional 4.8 thousand tonnes of MAB for salmon. Additionally, the Group holds a license for land based smolt production on its own land in Norðurbotn, which is required for the Group's ongoing smolt production.

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Q2 report 2022

Important events

4