#1ISI ICELAND SEAFOOD THE ICELAND SEAFOOD GROUP Q4 AND FULL-YEAR 2022 RESULTS Presentation to Investors and Analysts#2ICELAND ISI SEAFOOD Q4 2022 Results Presentation to Investors and Analysts 90 YEARS 1932-2022 We are Iceland Seafood#3ICELAND ISI SEAFOOD Q4 2022 Presentation to Investors and Analysts Iceland Seafood in numbers 420m+ € Annual revenues in 2022 Global value-added Seafood producer and sales and marketing company 10 Businesses in 6 countries 曲 6 value added factories *Iceland Seafood UK not included in the numbers 3 12.4m Normalised PBT 2022 28.0% Equity ratio at year end 2022 5.000+ Customers across 45 countries 1.0m+ Meals sold every day during 2022 760+ employees 72.000 MT of products sold in 2022#4ICELAND ISI SEAFOOD Q4 2022 Presentation to Investors and Analysts High volatility and increased input costs affected the year 2022 War in Ukraine METRO THE TIMES Cost of living crisis Bialik channels grief A dark day for Europe Ukraine's agony Familias fice as war comes to Europe For women in business, what's changed for better? y of losing parent into film nation for wing "As They Made Us In Life USA TODAY THE NATION'S NEWS 1121 WEDNESDAY, MARCH 9, 2022 WAR IN EUROPE Putin branded 21st Century Hitler as he invades Ukraine Hindustan Times PUTIN INVADES UKRAINE ® Sensex loses 27k in global rout,oil sour Seahawk send Wil to Bronc stunner a - Bowl qu and Rodgers return Packers under a 4- A $200 mil WY SPORTS million co in contract extension. In Sports THE TIMES Inside the new school for royals Ben Stakes sbell of wovell Winter woe for air passengers as BA cancels 10,000 fights Spiralling inflation Denver acquires the terback is forecast to hit 18% Ruska Nimes mother and dar for car bocsbing Inflation & interests up Friday 52122 Fram85 The Guardian Revealed The 12 extreme weather events that would have been virtually impossible without human-driven global heating The burning issue Cont WAR IN UKRAINE Gas is most expensive it's been in US history Modi speaks to Puti on atak, evacuation Ineck She Oil price surge as Russia invades Ukraine Oil prices have surged past $100 a barrel to hit their highest level for more than seven years after Russia launched an invasion of Ukraine CRUDE OIL PRICES ($ per barrel) Feb 24, 2022: Russia invades Ukraine Brent: $104.71 West Texas Intermediate (WT): $99.33 140 $125.81 $107.06 120 Dec 2016: 2018: U.S.-China Spring 2020: OPEC and non-OPEC members agree deal to cut output trade war $84.16 Prices plunge in response Cepia-hes bentegrow umber of wild Special report Pages 12-15→ Middle East elition" FTWeekend Predictions for the year and best books to read INTERNATIONAL NEWSPAPER OF THE YEAR 2023 Markets lose more than $30tn in worst year since financial crisis Global stocks fall nearly 20% Impact of rate rises and war Big US tech groups suffer Covid still around FINANCIAL TIMES INTERNATIONAL NEWSPAPER OF THE YEAR USA $2.50 Canada C$3.00 MONDAY DECEMBER 2022 How to find fine wine bargains Jancis Robinson SPERARTS Low rents and high ving Lessons from life in Vienna HOUSE & MOHE Wicom wwww $5.00 YEN 1360 Bank raises rates and warns of 13% inflation Larry Riots Phillip Inman Heather Stewart Thradncolle Sneet siid it has to the war as he predicted theron inflation becoming persistent, the Tim Westwood DJ investigated by Met police over sexual offence claims The Metropolitan police a While accepting the biggest inflation to tag undead, The foto's oestral spe Vladimir Patersofkraine four decades and a drop in ring increase in interest rates in 27 years absolute priority, no no buts has left Baitaisnaise for a neces standards straddling this year and would case pain particularly to the Hating that father interest rate s lasting more than a year and set the biggest ce mondeatwell, Bailey said the Bank ely, the Bank's fatim above the Bank of the rys eded to act prevent spalling strong monetary policy committee "we dostat now to prevent larly adort to indications tates for asiath sad "there is an econothic on calist crime unit was looking into for repeds of historical effences gdy committed in Lendin,from 20 and 2016, poker the allegations Fellatory pepes THE WALL STREET JOURNAL. THURSDAY, JULY 25, 2022-VOL. CCLXXX NO. 23 What's Fed Lifts Rates by 0.75 Point Again News Business Finance Powell expects further increases even as some indicators show signs of softening Protesters Storm Iraqi Parliament Over Prime Minister Race Facebook RUSSIA STRIKES UKRAINE NEW YORK PUS DAILY NEWS WAR IN EUROPE Daily Telegraph FROM RUSSIA RUSSIA LAUNCHES UKRAINE Liberation 10ties bombarded Mass dvillan casualties Putin spews TV les ScoMo vows back IT'S WAR L'IMPENSABLE Mirror syne Buses WARNING FROM UKRAINE WELCOME TO HELL METRO PUTIN'S GONE 'FULL TONTO' THERE WAY TO CAZOO The New York Times RUSSIA ATTACKS AS PUTIN WARNS WORLD; BIDEN VOWS TO HOLD HIM ACCOUNTABLE 72 - Daily Record SCOTLAND'S C MON- PLUS Europe Hopes to Presti By Crimping Cree 16-PAGE WINNER ROSS COUNTY O CELTIC 2 100 80 shale oil production 20 $42.53 to impact of Covid-19 60.2014: Global financial slowdown and 40 boom in U.S. $28.94 $16.94 Oct 2021: Russia resumes military buildup near Ukraine 2013 2014 2015 2016 2017 2018 2019 2020 2021 Sources: BBC, Reuters, Trading Economics Data correct at 1230GMT, Feb 24 GRAPHIC NEWS Hot Chip interview 0 2012 ROYAL ASCOT FREE £2 SHOP BET-HILL DAILY EXPRESS JOTA WAY TO WIN IT Portuque ace RECORD BAKER! Heatwave warning with clecter INSIDE JACKSON: GIO'S MEGA WEEK HOLDEN BACK THE BGTEARS COST OF LIVING CRISIS HALF OF BRITS CAN'T AFFORD THEIR BILLS Five million are forced to choose heating over eating as Britain set for 93F 'Fiery Friday FREE PREMIER LEAGUE FIXTURES GUIDE Toph times ahead as Bank Sights to 'squeeze' Inflation SHOCK AS FOOD PRICES TO SOAR 15% Kate's THE CROWN missies ta keep ids safe →Inside G2 Film & Music Greta Gerwig's films Ranked! Nouriel Roubini: it's not all doom and gloom Jingle bells ring in close of the working year PILITA CLARK, PAGE 13 HENRY MANCE INTERVIEW PAGE 15 Messi's crown Argentina lift the World Cup Argentina's ballers celebrate after winning the Fifa Weld Cup final in Qatar yesday They beat the previous char France in a penalty shoot-out after drawing 3-Sinestra time. The match at Lil stadium was attended by almost 9000 fans thethed time Argeti ben wield champions and marks the Messi's their captain Lionel Mes The decision to host the event in Qatar he dran yeancel soniy to the tiny Gulf kingdom. The 12-year run ep wasdal by allegiomolupta atticism over LGBT rights and coo cems for the treatment of the many thousands of migrant construction woekers bought it to build the t ment's infrastructure News & analysis page 3 Briefing Credit Suisse financed Greensill insurance plan Credits gave funding for Gupan in hea Inuncefim, weeks after it reheed torete the apply chai Binance cumpaypolicy- EU to impose carbon tax EU nations have reached a deal on the world's lins bigcarbon border tas, despe daims from the bloc's toding partnenthecrees Pioneer defends stance The U's tell has hit the for saying the sector is acting failing to increase drilling-es UK groups urge state aid Electricity comparing the UK to lo aco state-backed liquality sport scheme, and fears that some Warning on Doha-EU ties A Qatari diplomat said that the EU's hailing of act scandal themed to "pively affect Qatar EU talks on energy Covid's rapid advance in China cities sparks disruption and staff shortages Normal life at standstill Pharmacies sell out of medicines Supply chain turmoil slows factories GIANER LIU AND Cnid 19 is spreading rapidly through China's biggest cities, leading to wide medicine shortages spread illas banines dieuption and The outbreak has brought sormal e to a halt just a few weeks alter tejing abandoned President Xi Jinping Somer-Covil policy of cain ment which included lockdowns Sandman testing-with il Residents of Shanghai, Shenzhen and other cities reported yesterday that pharmacies had sold out of lever m dine and Covid tests. Social media images contrasted kng queues ounse Cavid clinics with otherwise empty local governments. Factory bosses are sidd he had experienced delivery delays the Financial Times but has gained either loosening all controls or isolating streets. Shanghai and several other c es announced they would move classes mline ur most student asdriversdebin workforces to keep production lines functioning Businesses are experiencing wide- spread disruption as staffing shortages, theeaten to close dwa factory produc tie fines and truck drivers fall, bring ngchane tsapplychains Companies have been left with m direction on how to handle the sudden surge in carpeviously operating under strict guidelines handed down by It only takes one driver to call in sick and then things are held up for another day' Jörg Wuttke, president of the EU Chamber of Commerce in China, wil it would be increasingly untenable for manufacturers to rely on leslation to "The delivery mates between maje cities have multiple stops where the drivers exchange cargo. It only takes one driver to call in sick and then things are held up for another day," he said. There is a dearth of reliable data o grotext erodection. He said the Cari waves huge scale and the lack of meas ures to suppress its spread meant that the strategy would not work anymore. the scale s spod of the outbreakaher Chinese authorhies curtalled Coldtest deemed symptomatic cases. The con about stocks and inventory Jacob Cook, chief executiveal wid Marketing Tech, which oper ates several warehouses across China ing and stopped reporting what they try reported only 2025 new locally attention online in China in the absence mambers alicia A nunding coline survey started on Thursday by the state-owned Beting News found that 45 per cent of 114,000 respondents had Cold had already recovered fromit in the southern city of Shenzhen, pharmacy owner said that his store bad runout of colls and fever medicine "I have been asking for supplies for two weeks but the factories are still chenginwhohasaalysolonlinesearc trends estimated that 39 percent of Bel- jing had been infected. The methodol gy has not been visited by experts o Grain Lear There are no divers... they are al testing positive" Adering by Flavor catt Truphone founder bids free Beenan Alamrich and his Datawatch Deadly fentanyl Deaths from synthetic opioids' as a % of all opioid overdose deaths (US) 100- N 20 Onai 2015 17 20 21 splold supply an The European Central Bank Raises Rates Again in the Fight Against Inflation Policymakers on Thursday approved another hefty interest rate increase to corral prices that have risen "far too high." The best winter arts Stormzy on stage Sally Rooney on TV Rafe Spall In the West End Francis Bacon at the Royal Academy... and more In the New Review In the magazine How to get your mojo back in 2022 From C1.75 for subscribers www.observer.co.uk | Sunday 2 January 2022 | £3.50 The Observer Schools told: go back to masks in class to fight surge Give this article ☐ 4#5ISI ICELAND SEAFOOD Inflation forecast Total, Annual growth rate (96), Q1 2020-Q4 2023 Show: Chart Table 10 9 7 0 • European and UK Economies Source: OECD Economic Outlook: Statistics and Projections fullscreen share download ▾ My pinboard ▼ Euro area (17 countries) United Kingdom Zozo Oz 03 04 2021 Oz 03 04 2022 02 03 04 2023 Oz 20 • • • Record-breaking inflation UK inflation hit 10.1% in Q4 2022 Eurozone peaked at 9.6% Iceland peaked at 9.7% • OECD forecast that inflation will slow in 2023 . and will end the year between 3.5% and 4.9% Record food inflation as cost increases are passed on to consumers. Significantly higher than CPI inflation Iceland 03 04 Eurozone currently 3.0% 2016 2018 2020 UK 4.0% 2022 3.5 2.5 2 1.5 1 0.5 Federal Reserve 4.75% 0 -0.5 2016 2018 2020 TRADINGECONOMICS.COM | EUROPEAN CENTRAL BANK 2016 2018 2020 LO 2022 5 TRADINGECONOMICS.COM BANK OF ENGLAND 3 2 1 Iceland 6.5% 0 2016 2018 2020 2022 5 4 3 TRADINGECONOMICS.COM | FEDERAL RESERVE 2022 2 1 0 8 TRADINGECONOMICS.COM | CENTRAL BANK OF ICELAND 2 0#6ISI ICELAND SEAFOOD Ingredients Wage Increase Transport costs Packaging Energy costs Major cost increases 2022 18%-36% 2023 Trend Ingredients ↓ 2,5%-8,5% 12,1%-44% 12%-23,3% CO 6 58%-264% Wage Increase ← Transport costs ↓ Packaging Energy costs ↓#7€ 14,00 € 12,00 ICELAND ISI SEAFOOD Q4 2022 Presentation to Investors and Analysts Salmon and Cod prices hit record heights in 2022 Salmon prices levelled off after reaching an all-time high in Q2 but are still higher than in recent years. Cod prices have also been at an all-time high but came slightly down in the first quarter of 2023 € 10,72 € 9,16 € 8,27 € 9,06 € 8,64 € 9,00 € 8,22 € 10,00 €8,00 € 6,58 € 9,06 € 8,37 € 8,48 € 8,80 € 8,02 € 8,00 € 7,37 € 7,17 € 7,03 € 7,18 € 6,00 € 4,00 € 2,00 € 8,44 € 9,19 € 12,77 € 11,95 € 12,31 € 11,43 € 10,38 € 10,38 € 10,37 € 10,24 € 10,00 € 10,03 € 9,66 € 9,44 € 9,28 € 8,97 2019 2020 2021 2022 2023 <--2019 <<-2020 2021 <<--2022 -2023 5,90 5,40 5,23 5,08 5,06 5,06 € 8,33 € 7,87 € 7,81 € 7,49 4,90 € 7,72 € 7,40 € 7,30 €7,22 € 6,89 € 6,76 € 7,16 € 6,72 € 6,13 € 6,74 € 6,28 € 6,71 € 6,49 €7,24 € 6,68 € 6,39 € 6,13 € 6,05 € 6,10 € 5,83 €- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 10 *Source NASDAQ Weekly Salmon prices $/kg (2019 - 2023)* 41 42 43 44 45 46 5,61 5,55 5,58 5,51 5,37 5,44 5,29 5,18 4,55 4,5 4,48 4,44 4,44 4,40 4,40 4,27 4,24 4,29 4,35 4,32 4,17 4,24 4,32 4,33 4,13 4,38 4,09 3,98 3,92 3,92 4,01 4,26 4,01 4,29 3,91 4,04 3,90 3,98 3,74 3,69 3,80 3,79 3,83 3,80 3,71 3,73 3,76 3,58 47 47 48 49 50 51 52 25 3,40 Jan Feb March April May June July Agu Sept Okt Nov Dec 7 Monthly H&G cod frozen prices (US$/kg) (2019-2023) Source: Norges Sjomatrad#8ICELAND ISI SEAFOOD Q4 2022 Presentation to Investors and Analysts The results of 2022 were severely impacted by unprecedented cost increases and high volatility Group sales growth driven by price increases (€'m) A more balanced external environment is on the horizon • • . • • • • The year 2022 was very much affected by unprecedented cost increases. and high volatility, both in terms of raw material and other key input factors, Strong pushback on price increases from both retail and food service. High prices and diminishing consumer purchasing power had a significant negative impact on demand, especially in Q4, Both logistics and cold storage costs were considerably impacted by higher energy prices and are passed on directly as a surcharge. A limited supply of both cold storage facilities and truck drivers, These disruptions and cost increases have negatively impacted margins, Prices of some essential input factors have eased and stabilized during the last months. A more balanced external environment is on the horizon after a highly volatile and disruptive period since the beginning of Covid- 19, It is likely that value-added production will move closer to consumers. Processing in Europe will become more competitive, where automation and investments in production efficiencies will play a key role. The operation of Iceland Seafood is well-balanced. The company is in an excellent position to address challenges and utilize opportunities that will arise due to its solid sourcing base and value-added operations close to key markets. 500 68,9 (40.6) 450 10,9 420,8 400 378,3 350 300 250 200 150 100 50 Sales FY 21 Price increases Volume decrease Changes to Group* Sales FY 22 • Addition of Ahumados Dominguez and closing of IS USA in 2021 Figures present continuing operation, i.e. exclude IS UK Investments in the future can be segmented into three main categories: • • • Investments connected with sustainability matters. E.g., Solar Panels, waste management, water treatment, etc. Emissions and waste management will be measured and reported from the beginning of 2023, Investments connected with automation and operational efficiency. This is key in driving efficiency, further enhancing consistency, and increasing competitiveness, Marketing and branding investments, Iceland Seafood has invested in companies with retail or consumer brands (Carr&Sons, Ahumados Domínguez). The Group plans to further invest in the brands it holds. 8#9ICELAND ISI SEAFOOD Q4 2022 Presentation to Investors and Analysts Overall good 2022 performance from continuing operations in a complex and unpredictable environment. A clear indicator of solid and stable foundation VA S-Europe A good performance in the first half of the S-Europe division, while difficult economic situation impacted the second half. Profitability of IS Ibérica was excellent in 1H 2022, with strong sales and margins. Results in Q4 were impacted by challenging external conditions which affected sales, The Christmas sales of Ahumados Dominguez (AD) did not meet expectations. Sales of premium products dropped in the market due to the difficult economic situation, Overall, positive results at Achernar, which operated in an uncertain and dynamic environment, Good results from Elba, which was fully integrated into the IS Iberica operation in Q2 2022. VA N-Europe Oceanpath's operation is back on track after a problematic first half of 2022 due to extreme price increases of salmon. Sourcing of whitefish was also difficult during the year, both due to limited. availability and high prices, Christmas sales were in line with expectations, despite the challenging environment, which is a sign of strength, Iceland Seafood UK (discontinued operations) went through severe difficulties during 2022, significantly impacting Group results. Results at the beginning of 2023 have improved. Sales & Distribution • A record performance in 2022 for the division driven by strong demand for products out of Iceland. • • Excellent results from all product categories, despite the challenging environment, especially in the 2H of the year. The French and German operations performed well in a year marked by price. volatility and extreme cost increases. 9#10ICELAND ISI SEAFOOD Q4 2022 Presentation to Investors and Analysts EBIT bridge IS UK 2022-2023 (£'000) 23 forecast 1,0 (1.5) -1,0 EB 22 Cost recovery New retail New business equipment Reduced costs 2.2 EB -3,0 0.3 -5,0 10.9 2.8 -7,0 -9,0 -11,0 • 4.1 EBIT 2022 excluding one off costs Iceland Seafood will continue to operate the IS UK subsidiary, but intends to support further consolidation of the UK business at the right terms Throughout 2022 IS UK operations and the sector in general were characterized by increased input costs and difficulties with pushing these costs through to customers Iceland Seafood announced its intention to exit the UK market from the value-added perspective on November 17th. • During December 2022, two LOIS were signed with prospective buyers to sell the business, but neither negotiation was successful. Proposals received didn't reflect the value of the company, as external conditions. for the industry have been challenging On February 3rd, Iceland Seafood announced that the company would continue to operate the UK subsidiary, but at the same time, remains interested in supporting further consolidation of the UK business at the right term, The results from IS UK operation have improved from the beginning of 2023. The company is expected to reach a positive cash flow level from April onwards. • • • • Progress made with recovering unprecedented inflationary costs at the beginning of the year, though tender processes in Q3-Q4 2022, Significant amount of new retail business secured, the majority coming in from the beginning of April, both. natural and coated products, New production equipment arrived in December 2022 and January 2023, which has transformed production with both a substantial increase in throughput and a reduction in production cost, Markets for various input factors are stabilising after the high volatility and constant upward cost pressure experienced throughout last year, Management plan assumes a positive cash flow from Q2 onwards, but negative PBT of £2.5-3.0m for the year mainly due to losses in Q1, 10#11ICELAND ISI SEAFOOD Q4 2022 Presentation to Investors and Analysts Knowing our impact Our Sustainability Roadmap . ESG reporting platform ESG report will be published in March Set targets based on the Paris agreement that aligns with the United Nations Sustainable Development Goals Monthly reporting within the Group Improving reporting coordination and increasing detail with procedures Results visible to employees to increase awareness Aiming at quarterly reporting during this year Sustainable procurement. Iceland Seafood is improving supply chain sustainability in cooperation with suppliers and service partners by evaluating their CSR score with EcoVadis, our rating partner We are in the process of inviting our suppliers to participate Number of suppliers have already agreed to participate, and results are coming in Encourages CSR improvements from year to year 11#12ICELAND ISI SEAFOOD Q4 2022 Presentation to Investors and Analysts Renewable energy with solar cells T Ahumados Domínguez IS Ibérica Installation completed in November 2022 Waiting for authorization to press ON. Produces 550 MWh which cover c.a. 20- 25% of the annual energy usage Completed early 2023, produces 538 MWh which will cover c.a. 25-35% of the annual energy usage Oceanpath Being evaluated Would cover 15-18% of energy need. Total investment in Spain. €1m Annual reduction of CO2 emissions around 30 tones Reduces dependency on the grid IS UK Installation in Barcelona In place when the site was bought in 2020. Produced 150 MWh in 2022 12 • Reduces risk related to energy prices#13ISI ICELAND SEAFOOD Q4 2022 RESULTS PRESENTATION TO INVESTORS AND ANALYSTS Financial performance#14ICELAND ISI SEAFOOD Q4 2022 Presentation to Investors and Analysts Overall good performance of the division during 2022, normalised PBT of €11.1m for the year € m's Q4 22 Q4 21 FY 22 FY 21 Sales 53.4 57.3 216.5 181.5 Net margin 8.9 11.8 32.7 28.6 Normalised EBITDA 3.3 5.7 14.1 14.7 Normalised PBT* 2.4 5.4 11.1 13.9 *Normalised PBT represents Profits before tax before allowing for significant items. ** Ahumados Domignuez in the figures from Q4 21 Full Year sales are up 11% on like for like basis but 9% decrease in volume • Demand slowed down in Q4, impacted by diminishing consumers purchasing power and high seafood prices, Christmas sales at Ahumados Dominguez (AD) were below expectations, impacted by the economic situation and high prices, Sales growth during the year is entirely driven by price increases. Volume declined by 9% on like-for- like basis, i.e., excluding AD, > VA S-Europe > VA N-Europe > Sales & Distribution Normalised PBT of €11.1m, down €2.8m from 2021 • . • Overall good results of IS Iberica, although slower sales in the critical Q4 impacted the results negatively. After solid margins in the year's first half, higher input costs have negatively impacted profits, especially in Q4, Difficult 1H of the year for Ahumados Dominguez due to unprecedented increase in salmon prices. Results normalised in the year's second half, but sales and margins. from Christmas sales were below expectations, Good shrimp production at Achernar at the back end of the year. Although market conditions remain challenging, there are positive results from the current Rawson season. 14#15ICELAND ISI SEAFOOD Q4 2022 Presentation to Investors and Analysts Christmas sales in Ireland were in line with VA S-Europe expectations, which helped Q4 results > VA N-Europe > Sales & Distribution € m's Q4 22 Q4 21 FY 22 FY 21 Sales 14.7 14.9 52.5 54.0 Sales in 2022 down €1.5m on Results in Q4 slightly better last year than same time last year Net margin 2.2 2.2 5.3 9.0 Normalised EBITDA 1.3 1.2 1.1 4.9 • Normalised PBT* 1.0 0.9 (0.1) 3.8 * Normalised PBT represents Profits before tax before allowing for significant items. Salmon prices (€/kg) • Overall, steep price increases during 2022 negatively impacted sales of the Irish operation. Sales in Ireland were in line with the prior year in Euro terms, but volume was down 13%, Christmas sales in Ireland were in line with expectations, which helped the results in Q4, Whitefish sourcing was challenging, especially in the second half of the year, both locally in Ireland and from abroad (Scotland and Iceland), • • . Purchase price of salmon eased and stabilised in the second half of the year after an exceptionally steep increase in the first five months, Whitefish sourcing was challenging. Low availability and high prices impacted margins and profitability, Important steps were taken during 2022 to integrate the Carr&Sons operation into the Oceanpath group. Still opportunities for further synergies to be created mainly on the production side. 2019 2020 2021 2022 2023 11,5 10,82 11,0 10,5 10,0 10,52 10,05 9,5 9,0 8,48 8,27 8,57 8,33 8,5 8,28 8,0 7,68 7,49 7,46 7,2 7,5 7,1 6,72 6,38 7,02 6,95 6,61 7,0 6,58 6,56695 6,3 6,25 6,11 6,0 5,69 6,4 6,09 6,72 5,63 6,15 5,51 5,5 5,5 5,13 4,9 5,4 5,64 5,0 5,6 5,54 5,1 5,25 5,05 5,1 4,54 5,18 4,5 5,08 4,7 4,8 4,6 4,0 4,5 4,5 Source: Nasdaq Jan Feb March April May June July Agu Sept Okt Nov Dec 15#162 Feb March April May June July Aug Sept Oct Source: Navision ΛΟΝ Dec Jan Feb March April May June July Aug Sept Oct 16 14 14 12 10 10 ICELAND ISI SEAFOOD Q4 2022 Presentation to Investors and Analysts 6,8 € m's Record year for the S&D division, driven by > VA S-Europe strong demand for products out of Iceland › Sales & Distribution Q4 22 Q4 21 FY 22 FY 21 Sales 42.9 46.3 175.0 162.3 Net margin 2.1 2.3 8.2 7.7 Normalised EBITDA 0.8 1.2 3.4 3.0 Normalised PBT* 0.8 1.2 3.3 2.9 *Normalised PBT represents Profits before tax before allowing for significant items. 7,2 6,1 Frozen at Sea fillets (€/kg) Saithe 10,9 9,7 10,0 Fresh fish (€/kg) Saithe Haddock Cod 17,9 16,4 15,8 15,8 Haddock Cod 15,1 14,1 14,7 13,4 14,3 14,2 13,8 13,6 13,4 11,613,3 13,0 14,4 13,8 17,1 14,1 13,3 11,7 10,9 13,2 14,1 11,4 13,8 12,7 13,7 12,4 12,9 15,8 16 15,4 10,7 11,5 13,8 11,3 13,9 15,1 12,8 14,7 12,0 10,6 11,1 13,5 12,2 9,9 12,6 12,2 8,5 10,5 13,2 9,8 10,1 10,4 10,7 11,3 13,1 13,1 12,9 11,9 6,4 6,3 10,1 7,6 10,9 14,1 11,9 12,3 10,3 11,2 11,1 12,3 11,8 6,0 6,6 6,5 8,1 6,4 6,3 6,26,0 6,4 10,1 10 12,6 7,1 8,1 8,5 7,9 8 9,3 8,9 6,3 6,5 7,5 8,2 5,9 8... 8,4 8,9 6,2 5,9 7,7 5,1 7,9 7,4 7 80 7,2 6 5,3 4 6,1 7,3 7,2 6,5 6,4 7 2,9 2,9 3 3,1 3,1 8,8 7,2 3 7,8 8,7 7,9 3,8 4 9,2 9,2 4,8 5,1 5,15,21 5,4 6,4 L 5,7 5,3 5,2 6,4 5,5 4,9 Sales growth of 8% from 2021, Sales in Q4 slowed down after outstanding sales in the year's first nine months. Difficult economic conditions in key markets and high prices of seafood negatively impacted demand, Sales growth for the year is entirely price driven; volume of groundfish decreased by 1% from prior year and pelagic volume by 31%, In general, seafood prices eased slightly in Q4 due to the lower demand. However, supply disruptions. and tariffs/restrictions imposed on Russian catches are keeping pressure on prices, The situation in Ukraine is having an impact on pelagic sales, causing significant logistic issues, as customers are not holding any stock inside Ukraine. > VA N-Europe > Normalised PBT of €3.3m, up €0.4m from 2021 • • Net margin grew by €0.5m from the prior year, driven by higher sales and price increases in the period, Operations in both France and Germany performed well in 2022. Sales levels in France recovered strongly after having been. impacted by Covid-19 restrictions in 2021, Operating costs are slightly higher than last year, mainly due to the impact of stronger ISK on operating costs in Iceland, Normalised PBT in the year was €3.3m, compared to €2.9m 2021. Jan Feb Mar... April May June July Aug Sept Oct ΛΟΝ Dec Mar... April May June July Aug Sept Oct 16 ΛΟΝ Dec Jan#17ICELAND ISI SEAFOOD Q4 2022 Presentation to Investors and Analysts Group results showing a normalized PBT of 12.4m. Bottom line results impacted by €18.2m loss from discontinued operation € m's Q4 22 Q4 21 FY 22 FY 21 Sales 105.2 112.7 420.8 378.3 Net margin 13.3 16.3 46.3 . 45.3 Normalised EBITDA 5.4 8.0 18.0 21.9 Normalised PBT* 3.8 7.1 12.4 19.5 Net (Loss) Profit (4.9) 3.2 (9.9) 8.8 * Normalised PBT represents Profits before tax before allowing for significant items and discontinued operations. ** Ahumados Dominguez in the figures from Q4 21 Group sales in 2022 of €420.8m, up 11% on 2021 . Sales growth driven by higher prices in all regions. Total volume sold (MT) is down 6% from the prior year on a like-for-like basis (excluding pelagic), Sales of both the S-Europe and S&D divisions grew considerably from the prior year on a like-for- like basis, but sales in Ireland decreased slightly, Ahumados Dominguez came into the group from Q4 2021. The full- year 2022 impacts of AD explain €15.8m of the sales growth. Normalised PBT of €12.4m was down €7.1m from 2022 . Net margin is up €1.0m from 2021 but down €1.6m on like-for-like basis, Operating costs in 2022 €5.1m higher than in 2021, mainly due to the addition of Ahumados Domínguez from Q4 21, Finance costs are €1.6m higher than in the same period in 2021 due to an increase in net debt, increased interest rates, and €1.2m adverse movement in FX, Loss from discontinued operation €18.2m consist of: • Operating losses of IS UK €12.6m • Impariment of Goodwill at IS UK €1.6m • Impairment of property at IS UK €0.7m 17 . • Reduction of Deferred tax asset IS UK €1.1m Year-end adjustments IS UK €2.2m Income tax of €4.1m expensed against Normalised income in the period, primarily related to taxes on profits in Spain, Net loss for the year €9.9m compared to €8.8m profit in 2021.#18ICELAND ISI SEAFOOD Q4 2022 Presentation to Investors and Analysts Inventories €28.7m higher than in beginning on like-for-like basis, driven by price increases € m's Fixed assets Leased assets Intangible assets. 31.12.2022 31.12.2021 Variance € m's 31.12.2022 31.12.2021 Variance 27.6 36.7 (9.0) Total Equity 81.4 91.7 (10.4) 1.7 1.9 (0.2) Thereof minority interest 2.0 2.3 (0.3) 56.7 58.7 (2.0) Long term borrowings 32.5 40.3 (7.8) Deferred tax/other 2.4 4.9 (2.5) Lease liabilities 1.4 1.5 (0.1) Non-Current Assets 88.5 102.2 (13.7) Obligations/Deferred tax 3.3 3.6 (0.3) Inventory 86.0 77.3 8.7 Non-Current Liabilities 37.2 45.3 (8.1) Trade and other receivables 62.5 65.7 (3.2) Short term borrowings 72.1 81.6 (9.5) Other assets 9.8 7.6 2.2 Trade and other payables 52.5 52.2 0.3 Bank deposits 11.1 27.8 (16.7) Other current liabilities 10.8 9.7 1.1 Current Assets 169.4 178.4 (9.0) Current liabilities 135.4 143.5 (8.1) Assets classified as held for sale Total Assets 32.5 32.5 290.3 280.6 9.7 Liab. associated w. assets held for sale Total Equity and Liabilities. 36.4 36.4 290.3 280.6 9.7 Assets and liabilities related to IS UK are classified as held for sale on 31.12.2022 by IFRS 5, but are included in the 2021 balance sheet figures, Impairment of goodwill, property and deferred tax assets at IS UK of €3.4m in total, reflected in the year-end balance sheet as Assets held for sale, Inventories are €8.7m higher than at the year beginning and €28.7m higher on like-for-like basis (i.e. excluding IS UK for 2021 comparison). The value of inventories in the S- Europe division is €24.1m higher than at the year beginning, driven by price. increases, Accounts receivables have increased by €2.5m on like-for-like basis. At the end of the year, 74% of Group receivables are insured, Cash position decreased by €16.7m from year-end 2021. 18 A loan agreement of €20m with Arion banki was extended for three years in April 2022. The bank is providing funding to the S&D division, Two offerings of 6 months' bills for ISK 2.120 million in total outstanding at the end of December, Net debt, excluding IS UK, of €93,6m at the end of the year increased by €28.2m from the year beginning, driven by an increase in working capital. Funding headroom of €31.7m at the end of December, including cash, Total equity of €81.4m and an equity ratio of 28.0% at the end of the year compared to 32.7% at the end of 2021.#19ICELAND ISI SEAFOOD Q4 2022 RESULTS PRESENTATION TO INVESTORS AND ANALYSTS Outlook#20ISI ICELAND SEAFOOD Outlook range for Normalised PBT €10.0-14.0m, excluding impacts from IS UK operation • • • • . • • Q4 2022 Presentation to Investors and Analysts As the IS UK operation is classified as discontinued, the results from that operation have been excluded from both historical numbers and outlook range in the graph, The high prices and the diminishing consumer purchasing power due to increased energy prices and high inflation negatively impacted demand at back end of 2022. These factors will continue to impact sales at the beginning of 2023, Price of seafood is historically high and has increased more than other proteins. It remains to be seen what impact this will have on mid- and longer-term demand, Prices of key input factors have started to ease, and markets are stabilizing. As long as this development continues, which should help demand to recover, the outlook for the second part of the year is good, After a disruptive period during the last three years, it is likely that production will move closer to home. Iceland Seafood is in an excellent position to benefit from this development, Investments in automation and energy-saving projects are being implemented to address the difficult labour market and improve efficiency Outlook range for Normalised PBT of €10.0-14.0m for 2023; the higher end assumes that economic conditions will improve in the second half of the year, Group results are influenced by various external factors such as: Fishing and quota changes, as well as price development and the ability to pass on price changes in the value chain, Changes in underlying global economic conditions, currency rates, import duty rates, access and cost of labour, competition and consumer behaviours, Political uncertainty and geopolitical turmoil. Including the current war between Russia and Ukraine and the possibility of further sanctions and tariffs on Russian products,, Full year Normalised PBT* (m's) • Covid19 development and critical factors indirectly impacted by the pandemic. 9,9 4,8 7,5 19,5 14,0 12,4 10,0 2,4 2,0 • Results for IS UK are excluded from the Outlook. Management plan expects a positive cash flow from Q2 onwards for IS UK, but negative PBT of £2.5-3.0m for the year mainly due to losses in Q1, 2,0 0,4 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 * Normalised PBT excluding UK operation for the whole period With recent investments and projects that will increase efficiency and drive profit growth, the Group is in a solid position to reach its target of Normalised PBT of over €20m when the external environment stabilizes. 20#21ICELAND ISI SEAFOOD Q4 2022 Presentation to Investors and Analysts 1932-2022 90 years together Iceland Seafood International is proud of its strong heritage and history and continues to build on that foundation, to be a respected industry leader. 1914 PASYN BLOVN NASSON GA 2021 1955 2015 21 1932 1935 2022 2022#22ICELAND ISI SEAFOOD Q4 2022 Presentation to Investors and Analysts Forward Looking Statements Disclaimer This presentation is furnished and intended for European market participants and should be viewed in that manner. Any potential forward looking statements contained in this presentation are reflective of managements current views on future events and performance, whilst the views are based on positions that management believes are reasonable there is no assurances that these events and views will be achieved. Forward looking views naturally involve uncertainties and risk and consequently actual results may differ to the statements or views expressed. 22#23ISI ICELAND SEAFOOD WE ARE ICELAND SEAFOOD www.icelandseafood.com 1897