#1ICELAND ISI SEAFOOD We are Iceland Seafood Main Market listing and Offering of new sh Investor Presentation#2Empty#3ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Disclaimer All information appearing in this presentation is in accordance with the best knowledge of Kvika banki hf. (also referred to as Kvika or the Financial Advisor) at any given time. The Financial Advisor is in no way liable for the accuracy or completeness of the information presented herein, irrespective of whether it comes from the Financial Advisor itself or from a third party. The information appearing in this presentation should not be construed as a recommendation or solicitation to buy, hold or sell specific financial instruments or to take any other investment decisions. The recipient is solely responsible for investment decisions taken on the basis of the information presented herein. The Financial Advisor does not assume any liability whatsoever for any direct or consequential loss or damage arising from any use of this presentation or its contents. Kvika is not obliged to make amendments or changes to this publication or to submit further information, should errors be discovered or opinions or information change. Furthermore, the Financial Advisor advises recipients to seek advice from outside experts before taking investment decisions. The Financial Advisor owns the copyright to all information appearing in this presentation unless otherwise stated or implied. The written consent of the Financial Advisor is required for reissuance, redistribution, and copying of the information in this presentation, irrespective of the nature of the information or the purpose of the proposed reissuance, redistribution, or copying.#4ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Strong Roots Iceland Seafood International is proud of its strong heritage and history which the Company has built upon to become a respected industry leader SIE The Herring Board Founded in 1935 for the export of salted herring. 1935 Merger: SÍF and Iceland Seafood Plc. Including the Herring Board, under the name SIF Plc. 1999 IS Barraclough Acquired in 2010 and markes the beginning of value added operations in the UK 2010 First North listing Shares in Iceland Seafood are listed on the Nasdaq First North Iceland market 2016 Solo Seafood Purchased in 2018, drastically strenghtening Iceland Seafood's value added operations 2018 Samband of Iceland SIF ISI ISI SEAFOOD ICELAND SEAFOOD BARRACLOUGH HAVELOK Seafood making history OCEAN PATH QUALITY SEAFOOD ICELANDIC SEAFOOD Nasdaq 1932 The Union of Icelandic Fish Producers (SIF) Founded in 1932 for export of salted fish products. 1957 Samband of Iceland Establishes a seafood division for export of frozen seafood 2004 SÍF Plc founds Iceland Seafood International To take over all export and sales of marine products 2012 IS Havelok Founded as a joint venture, Havelok today is a leading seafood supplier to UK foodservice 2018 Oceanpath Purchased in 2018, drastically strenghtening Iceland Seafood's value added operations 2019 Main Market listing & Management changes. A new board and CEO are appointed and Iceland Seafood lists its shares on the Nasdaq Iceland Main Market#5ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Exciting future 12 Businesses in 8 countries 620 Employees Vertically integrated value chain, unique sales and sourcing network History of strong growth Acquisitions in 2018 transformational for the group Key projects will drive organic growth and efficiency 3000 customers across 45 countries Good opportunities for external growth within fragmented industry Main market listing to support organic and acquisitive growth#6ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Strong growth history expected to continue €431 m. Annual revenues 2018* Group targeting €20m PBT within the next 3-5 years €10.8 m. Normalised PBT 2018* 7.4 11.0-11.8 10.8 446.4 431.3 3.5 345.9 2.9 258.4 3.3 246.3 249.1 252.0 1.0 2014 2015 2016 2017 Revenues *2018 management proforma, adjusted for a whole year effect of Oceanpath and Solo acquisitions 2018 Normalised PBT 2018P 2019E#7Iceland Seafood Financials Share Offering#8ISI ICELAND SEAFOOD Pork 22% Seafood 37% October 2019 Main Market Listing and Offering of new shares Seafood is the #1 consumed animal protein worldwide Seafood leads the way in global human consumption per capita with developing countries driving total consumption growth with a CAGR of 1.1% between 2018 and 2028 (developed 0.35%) Global consumption split per capita (Kg, 2018, %) Seafood accounts for about 37% of global consumption per capita Total production per year Tonnes million 1.0% 173 178 179 180 185 181 187 189 191 191 194 196 164 166 73 76 80 83 85 88 88 00 90 93 95 96 98 99 101 102 Global human consumption per capita (kg/yr) 24 24 20 26 12% Beef and Veal 3% Sheepmeat 26% Poultry Seafood Poultry Pork Beef and veal Sheepmeat Seafood consumption is expected to 16 12 8 92 89 93 95 93 92 92 = 91 91 93 93 93 2 92 94 94 continue to increase 4 10 + 2015 2016 2017 2018 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 2000 2004 2008 2012 2016 2020E 2024E 2028E Fish from aquaculture Fish from capture The term "Seafood" indicates fish, crustaceans, molluscs and other aquatic animals, but excludes aquatic mammals, crocodiles, caimans, alligators and aquatic plants Source: FAO#9ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Drive towards healthy living Having relegated health concerns in the aftermath of the 2008 recession, health awareness and the nutritional aspects of food have regained ground and the world has seen a noticeable drive towards healthy living, where governments are encouraging people to eat more seafood. Consumers are becoming more selective in their food. choices and millennials lifestyles are healthier Seafood consumption will continue to grow alongside global trends 14.59 14.5% 6.2% 7.3% 7.3% 5.8% 6.2% 20.8% A growing middle class. A growing middle class is expected to increase from one-third to two-thirds of the world's population by 2030. These individuals are health- conscious, generally have the highest disposable income and are willing to pay a premium for what they perceive to be healthier consumption choices 2015 2030 36% 41% 59% 64% Middle class Rest Older western population An ageing population is also an advantage for the seafood sector as studies have shown that individuals over 50 years old consume 24,9% more fish per week than individuals under 30 Source: FAO, Seafish.org, Eurostat, Brookings.edu Beef Lamb Pork Chicken Fish Higher need for food solutions 39% 41% 44% 46% A higher need for food solutions that are easy and quick to prepare, tasty and innovative, right for the consumer, the environment and consumers' social standards SuperValu Salmon sensation 2015 2020 2030 2050 10-14 15-50 +50 LAS TA- PAS BACALAO A LA LLAUNA#10ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Iceland Seafood is in a unique position to benefit from close cooperation with strategic partners and proximity to the markets and efficient value added operations An integrated value chain Presence through strategic alliances and cooperation Strategic investor operations Capture Primary Production Iceland Seafood's operations Customers Sales & Distribution Production, value added Retail, Foodservice Four major fishing and processing companies are in the shareholder group, creating a vertically integrated supply chain through to the end consumer Iceland Seafood purchases primary processed products from its suppliers and shareholders Iceland Seafood's Sales and Distribution segment sells products to a variety of customers around the world Iceland Seafood's Value Added segments create additional value by further processing primary processed products close to their customers to suit their needs Iceland Seafood's Value Added segments sell their products to HORECA distributors, retailers and foodservice companies#11ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Diverse and valuable shareholder knowledge Other 31% 326 Sjávarsýn ehf. 11% 10% Nesfiskur ehf. 10% FISK-Seafood ehf. Shareholders Jakob Valgeir ehf 3% Birta lífeyrissjóður 4% 10% Kvika banki hf. 4% Arion banki hf. 4% 9% Lífsverk lífeyrissjóður 4% Frjálsi lífeyrissjóðurinn Solo Holding ehf. Shareholders list as of 1 October 2019 Sector investors provide Iceland Seafood with valuable sourcing capabilities, sector knowledge and vertical integration Institutional investors provide Iceland Seafood with valuable market knowledge, guidance and access to funding#12ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares DAIR TF-FIH z BOEING 757-200 Diversified product range Catch of the лач Ready Meals Solutions for HORECA, Catering and retail Fresh Cod, Haddock, Wolffish, Halibut, loins, portions, backfillets, whole and more Coated products Skin- & boneless battered fish, breaded, main course and children products. Shellfish Shrimp, Langoustines, Norway Lobster, Mussels and more Smoked Fish Salmon, Arctic Charr, Cod, Haddock and Herring Landfrozen Cod, Haddock, Wolffish, Halibut, loins, portions, backfillets, whole and more Light salted Cod, Ling, Tusk, Saithe, lions, fillets and portions Wet salted Cod, Ling, Tusk, Saithe, loins, fillets and portions Frozen at sea Cod fillets, Haddock fillets, Saithe fillets and Red fish Pelagic fish Mackerel, Atlantic Herring, Capelin and Blue Whiting Dried products Haddock, Cod, Skate and Blue Whiting Cephalopods Cuttlefish, Octopus and Squid#13Operating divisions#14ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Sales & Distribution Strong combination of sourcing expertise and well positioned value added activities Iceland Seafood International Executive management Value Added N- Europe Value Added S- Europe IS Iceland IS Barraclough IS Spain IS France IS Germany IS USA Employees Havelok Oceanpath Icelandic Iberica Ecomsa Dunn's of Dublin | Achernar 37 (6%) 226 (37%) 354 (57%) Each division and subsidiary possesses valuable knowledge of its specific operations and locale, business relationships and industry contacts which the Group utilizes to benefit the Issuer as whole Additionally, Sales & Distribution provides valuable sourcing and product quality stability to the Value Added divisions Each operating division therefore benefits from the operations of the others, creating synergies, while maintaining focus on specialized operations#15ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Profitability is driven by value added activities Turnover 29% 2013 71% 39% 2018P 61% Profit before tax 1 26% 2013 74% 9% 2018P 91% Sales & Distribution is the backbone of the Group and supports value added activities, which drive profitability Sales & Distribution Value Added 1: Normalised PBT represents Profits before tax before allowing for significant items and discontinued operations. 2018P (proforma) based upon 2018 actuals as Oceanpath and Solo Seafood were owned for the full year#16ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Sales and Distribution division • Strong team of experienced sourcing and sales experts The Sales and Distribution division represents Iceland Seafood's origins as a sales and marketing company with its main operations in Iceland along with closely linked sister companies in France, Germany and the USA A close working relationship with seafood industry partners and in-depth industry knowledge provide Iceland Seafood's Value Added operations with valuable sourcing and consistent quality Iceland Seafood offers its customers and suppliers a full seafood solution by sourcing seafood from various suppliers, largely based in Iceland, separating itself from competitors offering both broader and more specialised product ranges 2018 Sales by Species Other 29% Cod 40% 7% Herring 8% Haddock 15% Mackerel Main Markets1 Key Figures 1 Excluding intercompany sales EUR 000 Others France 183,211 183,211 170,507 164,589 20% 20% Italy 4% Japan 4% 15% USA 5% Germany 5% Lithuania 7% 11% 8% Belgium Ukraine UK 1,515 102,260 1,535 1,181 1,181 1,029 2016 2017 2018 Revenues 2018P Normalised PBT 2019 1H#17ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Value Added Northern Europe division • Close cooperation with retail and foodservice customers Iceland Seafood's Value Added N-Europe division has operations in Ireland and the UK through three subsidiaries Retail focused IS Barraclough, Foodservice focused IS Havelok, which is a leading seafood supplier to the foodservices sector in the UK Oceanpath, the largest fresh seafood processor to Irish retailers, and subsidiary Dunn's of Dublin, a producer of fresh and smoked seafood for Irish retailers The division focuses on value added production of seafood such as hot and cold smoking, breading, filleting and portioning and various ready to eat products. Example of final product Joseph Dean Dunn's SMOKED IRISH SALMON Dunn's ORGANIC SMOKED IRISH SALMON Sales EUR 000 Retail fresh/smoked 35% Retail frozen 45% Key Figures 103,352 97,387 5,203 4,587 56,228 45,109 1,289 48,292 1,485 1,550 20% 2016 2017 2018 Foodservice Revenues 2018P Normalised PBT 2019 1H#18ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Value Added Southern Europe division • • Excellent position within the largest market for Icelandic Cod The Value Added S-Europe division has operations in Barcelona and Malaga in Spain and in Argentina. The division is the largest importer and seller of Icelandic light salted cod in the Mediterranean market The merger of Iceland Seafood Spain and the newly acquired Icelandic Ibérica will create a South European powerhouse with a strong brand and product recognition in the market, highly qualified people and a loyal customer base The division focuses on value added production of seafood such as traditional and light salted cod in fillets and portions, argentinian shrimp and various ready to eat products. Main Brands ICELANDIC ISLANDIA seastar SEAFOOD LAS TA PAS de Islandia Armengol ICELAND GOLD Islandia armengol Productos del Mar Banord Main Markets 1 1 Excluding sales from S&D to Italy and Portugal Portugal Others 6% 4% Italy 15% 75% EUR 000 Key Figures 179,489 100,111 6,696 96,797 62,146 62,017 3,838 3,524 2,000 2,018 2016 2017 2018 2018P 2019 1H Spain Revenues Normalised PBT#19Key projects#20ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares 2018: Year of transformation Acquisition of Oceanpath Iceland Seafood acquired a 67% share in the leading fresh fish. supplier to retailers in the Republic of Ireland, with local management keeping the remaining 33%. The acquisition is in line with the Group's strategy of acquiring strong value added companies Acquisition of Solo Seafood The acquisition of Solo Seafood, the owner of Icelandic Iberica was a transformational step for Iceland Seafood. The acquisition brought three major fishing and processing companies into the shareholding group, creating a vertically integrated supply chain. through to the end customer Oceanpath can utilize Iceland's seafood sourcing network in addition to having enhanced opportunities for global distribution through the Group's extensive sales network Iceland Seafood's other subsidiaries will gain from a knowledge transfer from Oceanpath's seasoned professionals Three major fishing and processing companies joining the shareholder group enables Iceland Seafood to benefit from a vertically integrated supply chain and further strengthens its supplier relationships The integrated value chain which gives the Group access to over 40,000 mt of fish and seafood products Investment of €2.9m in 2019 to increase efficiency and support further domestic growth Consolidated market strength especially in Spain, with a merger of Icelandic Iberica and Iceland Seafood Spain#21ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Key projects to further drive growth and efficiency Merger of Icelandic Iberica and IS Spain Investment in Achernar, Argentina Opportunities for automation • Magnús Jonsson appointed as MD for the merged entity and new management team formed • Significant opportunities of economies of scale and scope, integration and optimization of functions and processes • Estimated annual synergies of EUR 3.0-3.5m, expected to materialize in full before 2021 In 1H 2019, the board approved an investment project for Achernar • The new building will consist of a coldstore and a new production area • Investment will increase production. capacity by ca. 50%, secure storage space, make logistics more efficient and improve quality controls Total investment in the range of €1.3-1.6m • The company has and will continue to seek opportunities for enhanced automation and efficiency in its operations In 2019 Oceanpath's fresh fish production facility was extended by 1,258m2 and a Marel salmon filleting. line was installed Automation opportunities of all sizes are regularly being assessed and prioritized within the Group#22Iceland Seafood Financials Share Offering#23ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Increase in revenue by 80% and PBT of 234%- 258% from 2016 • Revenue Increase driven by increased value added activities increasing the companies margins PBT margin increased from 1.3% in 2016 to an estimated 2.6% in 2019 Encouraging growth driven by strategic acquisitions • Growth driven by strategic acquisition • P&L (EURM) Sales 2016 2017 2018 2018P 2019E 246.3 249.2 346.0 431.3 446.4 19.0 19.5 29.0 41.0 43.4 3.3 3.5 7.2 10.9 11.4 2.6 2.6 4.7 7.6 7.3 PBT* Oceanpath is a leading fresh fish supplier to retailers in Ireland Net margin Net profit OCEANPATH QUALITY SEAFOOD Sales increase (4.7%) 1.2% 38.8% 73.1% 3.5% Net margin 7.7% 7.8% 8.4% 9.5% 9.7% PBT margin* 1.3% 1.4% 2.1% 2.5% 2.6% Net profit margin 1.0% 1.0% 1.4% 1.8% 1.6% Group's target of a PBT of EUR 20m in the next 3-5 years Driven by synergies following recent acquisitions and organic investments Solo Seafood consists of the companies Icelandic Iberica and Ecomsa in Spain and Achernar in Argentina *Normalized PBT represents profits before tax before allowing for significant items and discontinued operations. 2018P (proforma) based upon 2018 actuals as Oceanpath and Solo Seafood were owned for the full year 500 Sales and PBT Growth (EURM) 5.0% 400 261 248 4.0% 300 163 3.0% 2.5% 2.6% 200 76 85 2.1% 2.0% 1.3% 1.4% ICELANDIC ACHERNAR PESQUERA ecomsa 100 171 165 183 183 185 1.0% PESCADOS Y MARISCOS IBÉRICA 0 0.0% 2016 2017 2018 2018P Sales & Distribution (S&D) Value Added (VA) PBT margin (right axis) 2019E#24ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares • Solid financial position, good platform for future growth Comparative asset increase explained by working capital requirements of value added segment Total assets (excl. intangible assets and cash) have increased by ca. 140% from 2016 compared to a revenue increase of 80%, as the revenue increase has been driven by value added activities, requiring more inventory than S&D • Equity ratio increasing from about 20% in 2017 to an estimated 40% by year-end 2019 Equity ratio is estimated to be ca. 40% at year-end, following a proposed equity increase and increased profitability Minority stake is owned by the management of Oceanpath and Havelock, who own 33% in each company respectively • Goodwill has almost quadrupled with most recent acquisitions Assets (EURM) 2016 2017 2018 2019E Equity & liabilities (EURm) 2016 2017 2018 2019E Property, plant and equipment 8.7 8.5 14.4 20.4 Equity 15.4 17.7 59.3 81.1 Intangible assets 9.0 8.9 44.7 44.5 Thereof minority stake 0.1 0.1 2.9 3.9 Other long-term assets 1.2 1.6 2.7 2.4 Equity ratio 20.5% 20.1% 30.6% 39.7% Total non-current assets 18.9 18.9 61.8 67.3 Non-current borrowings 1.6 0.9 6.6 8.3 Inventories 20.0 30.6 62.1 65.8 Other non-current liabilities 0.4 0.6 1.7 5.4 Trade and other receivables 32.9 35.1 62.5 64.7 Current borrowings 34.9 40.2 75.8 57.6 Other current assets 1.4 1.3 3.5 3.5 Trade and other payables. 19.6 25.6 44.9 46.1 Cash and cash equivalents 1.8 2.2 4.0 2.8 Total current assets 56.2 69.2 132.0 136.8 Other current liabilities Total liabilities 3.2 3.1 5.4 5.5 59.7 70.4 134.5 123.0 Total assets 75.0 88.2 193.8 204.1 Total equity and liabilities 75.0 88.2 193.8 204.1#25ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Strong profit growth driven by value added activities Increased focused on value added activities • In 2016 value added activities accounted for EUR 76m or about 31% of total revenue Increased focus on value added activities a driver of increased margins and PBT • PBT is expected to have more than tripled at year-end compared to 2016 with the margin doubling at the same time. This development is expected to continue with PBT growing to EUR 20m in the next 3-5 years • In 2019 value added activities are expected to account for about EUR • 261m or about 59% of total revenue This reflects the group management's increased focus on value added activities Revenue by segments (EURM) 500 10 400 300 248 261 163 200 76 85 20% 6+ Profit before tax - PBT (EURM) 12 3.5% 11.0-11.8 3.0% 2.5% 2.6% 2.5% 8 2.1% 2.0% 10.9 1.5% 1.3% 1.4% 4 7.2 1.0% 100 171 165 183 183 185 2 3.3 3.5 0.5% 0 0 0.0% 2016 2017 2018 2018P 2019E 2016 ■Sales & Distribution (S&D) ■Value Added (VA) 2017 2018 2018P PBT* PBT margin* 2019E *Normalized PBT represents profits before tax before allowing for significant items and discontinued operations. 2018P (proforma) based upon 2018 actuals as Oceanpath and Solo Seafood were owned for the full year#26Summary#27ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Strong platform for continuing profit growth Scalable sourcing network Continuing organic growth and improved efficiency External Growth opportunities The Group will continue its focus on building up closer cooperation with the supplier base in Iceland • At the same time the Group will utilise the unique sales network and strong market presence to expand the global sourcing base • • Synergies through integration of new companies, increased profitability and investment in organic growth is expected to increase the Group's profit before tax to EUR 20m in the next 3-5 years Various opportunities for further automatisation in addition to currently unutilised capacity to drive growth • • The Group remains on the lookout for strategic investments in well positioned companies О Room for consolidation in European seafood sector o Opportunities for bolt on acquisitions in current markets The proposed equity increase will support. the Group's ability to maximize these. opportunities#28Iceland Seafood Financials Share Offering#29ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Share capital • • Shares and shareholders The total share capital of Iceland Seafood is ISK 2,336,344,934 in nominal value Capital increase authorizations amount to a nominal value of ISK 352,583,145, corresponding to 13.1% of total issued capital post dilution Thereof, 225,000,000 shares will be issued and sold in a public offering in relation to the listing, which amounts to 9.63% of share capital pre-dilution and 8.78% post dilution The Issuer had 326 shareholders at 1 October 2019 . Nasdaq First North The Company has been listed on Nasdaq First North since 25 May 2016 The Shares' ticker symbol in the trading system of Nasdaq Iceland is ICESEA Iceland Seafood has two market making contracts, with Kvika banki hf. and Arion banki hf. Share price development Monthly average 5.46 May 2016 6.78 7.81 July 2017 July 2018 326 Shareholders 9.62 September 8.80 July 2019 2019#30ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Public Offering of new shares 225,000,000 new shares will be issued and sold by Iceland Seafood in a public offering, equivalent to 9.63% of the Issuer's share capital pre-dilution and 8.78% post dilution Subscriptions will be offered in two order books, which differ in terms of size of subscription, pricing and rules of allocation • • • Purpose of the Offering Strengthen the Issuer's financial position Move closer to the Issuer's goal of having a 35% equity ratio Facilitate increased liquidity of the shares Establish a more diverse shareholder base • Registration of subscriptions Subscriptions shall be registered electronically on a special subscription form available on www.kvika.is from 16 October 2019 Subscriptions will not be accepted in any other format. The subscription form will be available in English and Icelandic 16. October 2019 17. October 2019 18. October 2019 21. October 2019 22. October 2019 25. October 2019 12:00 GMT 29. October 2019 Subscription period begins Subscription period continues 16:00 GMT Subscription period ends Offering results published Information on allocation sent to investors Final due date for payment of subscriptions First expected day of trading#31ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Pricing and size benchmarks Order book A Order book B • A total of 30,000,000 Shares, or 1.17% of issued share capital in Iceland Seafood post dilution, are offered for sale in Order. book A The minimum size of subscriptions in Order book A is restricted to Shares with a purchase value of ISK 100,000 • The maximum size of subscriptions in Order book A is restricted to a purchase value of ISK 10,000,000 • . . Order book A will be for subscriptions ranging from ISK 9.40-9.82 price per Share All shares sold in Order book A will be allocated at the same price (Offering Price A) which will be within the above price range The Offering Price in Order book A will not be higher than the Offering Price in Order book B • A total of 195,000,000 Shares, or 7.61% of issued share capital in Iceland Seafood post dilution, are offered for sale in Order book B • The minimum size of • subscriptions in Order book B is а purchase value of ISK 10,000,001 The maximum size of each subscription is only limited by the aforementioned supply in this Order book • Order book B is for subscriptions which are a minimum of ISK 9.40 price per Share and no maximum price is specified by the Seller All Shares sold in Order book B will be allocated at the same price (Offering Price B) which will be higher or equal to to the aforementioned minimum price#32ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Allocation and reductions At the end of the subscription period the Issuer will have sole discretion to decide the price at which the shares will be sold in each order book When allocating the Shares the objective of the Offering will be taken into account, i.e. encouraging increased liquidity of Shares and creating a more diverse shareholder base. In the event that the combined number of Shares of valid subscriptions exceeds the number of Shares that the Issuer has available to sell, the Issuer will allocate Shares to individual subscribers after the following reductions have been made*: • • • Order book A 1) Subscriptions in Order book A will be reduced (in part or rejected) to subscriptions with the highest price per share 2) Remaining subscriptions will be reduced by up to 75% of the original subscription o Proportional reductions will not be applied to subscriptions of a purchase value of ISK 500,000 or lower and will not result in a reduction to a value lower than ISK 500,000 3) Subscriptions will be further reduced by flat rate reductions Order book B • The main rule when allocating shares in Order book B is that subscriptions are assessed on the basis of price. Subscriptions in Order book B will be reduced (in part or rejected) so that what remains are the subscriptions received with the highest price per Share, so that the combined number of Shares (based on the final Offering. Price B) in all valid subscriptions in Order book B after reduction is equal. to the number of Shares which the Issuer decides to offer investors who have subscribed for Shares in Order book B *The Issuer reserves the right to reject individual subscriptions in Order Book A and/or B, in part or in full, for other reasons than those specified in the above rules on reductions.#33Appendix I General Information#34Sales and Distribution DRANGEY 2893 FISK 71 FISK DRANGEY SK 2#35ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Sales & Distribution Sales and Distribution offers its customers a full seafood solution by sourcing seafood from various suppliers, largely based in Iceland. The segment consists of a sales and marketing company in Iceland along with closely linked sister companies in France, Germany and the USA Iceland Seafood ehf. Iceland Seafood France Sales and Distribution boasts deep access to markets and a close working relationship with seafood industry partners in Iceland, creating a backbone for the Issuer's operations as a whole Iceland Seafood Germany Iceland Seafood USA#36ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Iceland Seafood ehf. Sales & Distribution Subsidiaries Located in Reykjavik, IS Iceland is a leading company in exports of seafood from Iceland to all main markets around the world. IS Iceland's main functions are fish sales, sourcing for the Group's foreign subsidiaries and to provide technical and quality services for producers and customers. IS Iceland works with a broad range of producers in Iceland, from many of the largest quota owners. to smaller independent operators focused on a single species or product. Most supply relationships are long-term multi-year relationships built on trust and transparency where a bridge has been built between a catcher and end customer Iceland Seafood France Located in Boulogne-Sur- Mer, provides high quality seafood from Iceland as well as from Canada, USA, South Africa, Namibia, New Zealand and Asia. The company supplies fresh and frozen products foodservice, retail processors in France to and Iceland Seafood Germany Located in Bremerhaven Germany, IS Germany is a supplier of high-quality fresh seafood from Iceland. Fresh fish is mainly sourced from Iceland for the delicatessen, food service, catering and retail sectors in Germany Iceland Seafood USA Branford, Located ☐ in Connecticut, IS USA imports, maintains inventory and markets a full range of Cod, Haddock, and Pollock/Saithe products for the distributor, foodservice and restaurant industry in the USA. Products are imported directly from Iceland, Russia and China#37Value Added#38ISI ICELAND SEAFOOD Iceland Seafood Barraclough October 2019 Main Market Listing and Offering of new shares Value Added N-Europe Iceland Seafood's Value Added N- Europe segment consists of four subsidiaries in the UK and Ireland. The segment is retail and foodservice focused and produces various products for the UK and Ireland markets Iceland Seafood Havelok Iceland Seafood Oceanpath Iceland Seafood Dunn's of Dublin#39ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Iceland Seafood Barraclough Processing Final Products ICELAND ISI SEAFOOD BARRAGLOUGH . Cook from frozen 26 mins TESCO HADDOCK FILLETS FIRM FLAKES Hand-cut haddock, frozen for freshness to lock in flavour Product Main customers are large retailers in the UK Rap Fron Filleting, cutting and portioning, Frozen for retail, ready to eat, further processed products, packaging for retailers ready to cook sold under retailer own brands#40ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Iceland Seafood Havelok Processing Final Products HAVELOK Limited . Filleting, cutting and portioning, breading, ready to cook, ready to eat Skinless and boneless battered fish, breaded fish, frozen cod, haddock and plaice, specialities portions and fish cakes, children's products Main customers are various foodservice vehicles in the UK#41ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Iceland Seafood Oceanpath Final Products Processing ん OCEANPATH DUNNES Catch of the day: LETS PLAICE CHEEKS MONK SEA BREAM 3 FOR Who FILLETSRY SERBASS FORE10 33% WHOLE BLACK SOLE Main customers are large retailers in Ireland and fishmongers . Filleting, cutting and portioning, packaging for consumers • Fresh fish on fishmonger tables at supermarkets#42ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Iceland Seafood Dunn's of Dublin Processing Final Products DUNN'S SEAFARE LTD. Dunn's Organic SMOKED GRISH SALMON Smoking, cutting and portioning, further processed products, packaging for consumers. Hot and cold Smoked salmon. and mackerel in various packs/sizes, prawn cocktail, own brand and store brand Main customers are large retailers in Ireland and fishmongers#43ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Value Added S-Europe Iceland Seafood's Value Added S- Europe segment consists of four I I Iceland Seafood Spain subsidiaries in Spain and Argentina, with with an an impending merger of Iceland Seafood Spain and Icelandic Ibérica T I I Icelandic Ibérica Iceland Seafood Ecomsa Iceland Seafood Achernar#44ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares ISI ICELAND SEAFOOD Iceland Seafood Spain Processing Final Products LL Cutting, portioning and packing, with focus on lightsalted and wetsalted cod products Frozen lightsalted cod products • Traditional wet salted cod products • Diversified product range sourced from different areas around the world Diversified customer base mainly within the HORECA sector in S-Europe#45ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Icelandic Ibérica Processing Final Products • Cutting, portioning and packing, • Frozen lightsalted cod products with focus on lightsalted cod products • Argentinean red shrimp from Achernar • Diversified product range sourced from different areas around the world Diversified customer base mainly within the HORECA sector in S-Europe#46ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares BRCX ecomsa econ sa es saber PESCADOS Iceland Seafood Ecomsa Processing OL Final Products Service work for Icelandic, direct distribution to Hotels and restaurants in the South of Spain 1369 CHB ATLEON ecomsa · Cutting of frozen lightsalted cod, processing and packing of diversified product range Diversified product range that serves the customers' needs#47ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Iceland Seafood Achernar Processing Final Products . Factory specialized in processing Argentinian red shrimp in of Argentinean red shrimp different form Products distributed by Icelandic Iberica, into the HORECA sector in S-Europe and export to China#48Sourcing and sales network#49ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Sourcing network • Hand in hand with an extensive network of highly qualified professionals Iceland Seafood's sourcing network • Selected providers around the globe to • • • extend our product offering Close relationship with a solid global customer base that appreciates availability and fulfilment. Iceland accounts for approximately 55% of all sourcing The Group works with a broad range of Icelandic producers A sourcing network that offers reliable market and customer access#50ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares CSR & Sustainability Iceland Seafood believes that sustainability and responsible ocean stewardship is its corporate social responsibility and actively develops and supports initiatives that positively influence sustainable fishing practices F FIAT PANIS FAO Code of conduct ICELAND RESPONSIBLE FISHERIES Iceland Responsible Fisheries The FAO based Iceland Responsible fisheries management certification programme is a third party verification model used to verify Iceland Seafood works according to the FAO code of conduct for responsible fisheries (FAO 2005). Most responsible fishing nations. are working in conformance with the FAO code of conduct and have issued quota or have other means of regulating fishing within their own fishing zones CERTIFIED SUSTAINABLE SEAFOOD MSC www.msc.org MSC responsible fisheries management in Icelandic waters and good treatment of marine resources. Founded in 2012 by Iceland Seafood and key suppliers TM Developed by the Marine Stewardship Council, the MSC label recognizes that a product comes from a sustainable fishery that has met the MSC Fisheries Standard which measures the sustainability of wild-capture fisheries#51ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Responsible Ocean Stewardship Iceland Seafood has set a global sourcing policy based on responsible ocean stewardship founded on the following principles: Commitment to supply sustainable seafood to customers and support customers to make sustainable choices Source only from fisheries in conformity with FAO Codes of Conduct and have proper fishery management systems Support independent and credible standards set to audit and approve well managed fisheries and promote these fisheries to customers. Commitment to working with industry on fishery improvements and best practices#52• ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Sales network Iceland Seafood works closely with a solid global customer base that appreciates availability and fulfilment Iceland Seafood's sales Network ISI HQ ISI ISI ISI ISI Operational presence (SI Headquarters in Iceland • Sales and Distribution in Iceland, Germany, France and the US • Value added factories in UK, Ireland, Spain and Argentina ISI ISI A sales network that offers reliable high quality sourcing and producer access ISI#53ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Presence at international fairs Presence at international fairs/expos is a key factor in Iceland Seafood's marketing strategy and enable the company to meet current and new customers, make sales and connections and showcase its products and capabilities. Key events that the company will be attending in 2019 have been main events in the seafood sector in Europe and North America for years ISLANDIA ICELAND ISI SEAFOOD www.icelandseafood.es www.icelandseafood.is Valor y calidad ISICELAND ICELAND SEAFOOD ISICELAND SEAFOOD BACALAO ISLANDIA ISLANDIA We Are Iceland Seafood Somos faland Sed ISI ISICELAND SEAFOOD We Are Icela Somos Icel ICELA ISI SEAFO Gama Profesional ICELAND IS SEAFOOD es is bod ISI ICELAND SEAFOOD ICELAND S SEAFOOD ELAND BEAFDOO Key presence in 2019 Global Seafood Brussels modano BACALAO ISLANDIA Conxemar in Spain Global Seafood Boston TuttoFood Italy#54ICELANDIC SEAFOOD Gedas mortas BACALAO LOMOS Y CENTROS QF-100-200-10x750 Gadu martua BACALAO MIGAS QF-8x500g/1xx Gadus morta BACALAO LOMOS QF100-800, 700+ gp 1x5kg BACALAO SUPREMAS PREMIUM QF 150-200, 280-500 gp 1x5kg Marca Icelandic Productos calidad premium, exclusivamente con origen Islandia Gedue martua BACALAO LOMOS SELECTOS WP-300+ gp 5x2 Gadus morhu Gade n e martua BACALAO BACALAO LOMOS SELECTOS CORTOS WP 200-300x2 Gadu martua BACALAO Gadu martua BACALAO PORCIONES MENU FILETE MENU QF 90+/1 QF-10x750g QF 10x750 Gadue martua BACALAO LOMOS CON PIEL 4-PACK 115-145 gp 15500g Gadus martua BACALAO LOMOS JUMBO SKINPACK 12x40 Gam BACALAO Gadus morhus Gadue mortua Gadus mortua BACALAO BACALAO BACALAO LOMOS PORCIÓN COLAS VENTRESCAS SIN ESPINAS MIGAS QF-120-300, 200-270 270+ p 1x3 10F-100-300, 150-450 gp 125kg QF-100-200 gp-1x5k SUPREMAS SELECTAS WP-100-350 Gadus morhua BACALAO VENTRESCAS SELECTAS WP-100-200 -5x2k Gadu martua BACALAO TAPAS SELECTAS WP-25-40 px Gadus morhus BACALAO SIN SAL Gadu martu BACALAO HUEVAS CARAS Malmo MARUCA FILETES PUNTO DE SAL 50-300, 200-400, 400-500, 500- QF 400+ p 1x INT 500-1000, 1000-1200 g 200 gp 10-15kg 1x k Gadus morhua BACALAO COCOCHAS SELECTAS Gadus montu BACALAO LOMOS THOR WP-200+gp Gadu martua BACALAO LOMOS XOL QF 1200+ gp 1x9q Gadue martu BACALAO LOMOS JUMBO QF 500gp 1x5 GALLINETA FILETES CON PIEL 70-130, 130-200, 200-200, 300+gp QF 1x5kg Poch CARBONERO FILETES PUNTO DE SAL 100-900, 500-1000, 1000+ p QF-1x11 Scamber scambrus CABALLA Gatue morhus BACALAO SOLOMILLO 105-370-7200r 1 th Gadus morhus BACALAO LOMOS 350+ G IQF 250+ gp 1500 kg Ged morta BACALAO LOMOS 200-400 G Q-200-400 g 1x5 Gadu martua BACALAO LOMOS GRAN CHEF QF 180-250, 250-250 gp1x5 Gadus morhua BACALAO LOMOS EXTRA QF 200-p-1x5kg Gada martu BACALAO LOMOS CALIBRADOS OF 80-120, 120-140, 140-150 180-200 gp-1x6 Gadus morhua BACALAO TAJJADAS QF150+ p 1 ISLANDIA Naprape norvegicu CIGALAS DE ISLANDIA ENTERAS Stephalus y MENDO ENTERO EVISCERADO QF-250-430 P Lepidorhombus whiten GALLO ENTERO EVISCERADO IQF 200-1000 1000+ gp 1x11 25, 26-25 pk 1x15 FILETES QF 100-10, 140-180 p 1x 1x k Gadus mortua Gadus morhu Gadu BACALAO BACALAO BACA BACALAO HUEVAS QF 30-300 200-400, 400-800, MORROS DESALADOS G-10-300 200+ gp 1x5 k QF-14x250g/0x500 g/ Tx45 kg/1x10 Gedu martu BACALAO PORCIÓN CATERING QF-80-120 120-180x5 Gadu marha BACALAO TACOS QF-15x220 g Gada martsa BACALAO FILETES OF 200-500 500-1000, 1000+ 1x kg 700-1000 1 COCOCHAS WP-6x seastar SeastarⓇ Productos del mar de calidad, seleccionados de los mejores orígenes Plectour murder LANGOSTINO AUSTRAL ENTERO DE A BORDO QF-10-20 20-30, 30-40 Plectius mund LANGOSTINO AUSTRAL ENTERD -10-20 20-30 20-40 / 6x28 Placticus muedar LANGOSTINO AUSTRAL COLAS QF 25-35, 58-100 pkg-x2kg Plectius muni LANGOSTINO AUSTRAL COLAS DEVENADAS QF10-30, 30-50 p/b 5x1kg Plectious mucia LANGOSTINO AUSTRAL COLAS PELADAS Q-10-30, 30-50 p/b 5x1kg Meluncur hubbul MERLUZA ARGENTINA FILETES SIN PIEL INT 60-115 115-170, 170-225 225-203, 285+ -1x7kg Paraparaus i GAMBA B BLANCA ENTERA Semi-D 51-60 61-75, 76-95 96-120 121-180 p Origen Turqula 12x1 Dear truncusu COQUINA ENTERA PASTEURIZADA VAC 250-270 pkg 12x250g/ 23 Orgen Turqu Banord Islandia" armengol Banord Variedad de productos provenientes de Asia y otros orígenes Islandia Armengol Productos salados de alta calidad, con origen Islandia Gadu martua BACALAO PENCAS DESALADAS HG 80-250 gp 1x5,2 kg Pollachi FOGONERO LOMOS IQF--400, 450+ px Placharstw CARBONERO LOMOS FOGONERO PUNTO DE SAL IQF 700 gp 15 Pollachius vi CARBONERO LOMOS PORCION FOGONERO PUNTO DE SAL IQF 250+ p 1x Islandia® Productos salados y congelados al punto de sal, de alta calidad, con origen Islandia CARBONERO SUPREMAS FOGONERO PUNTO DE SAL QF-150-200, 200+ gp1x5kg CARBONERO VENTRESCAS FOGCNERO PUNTO DE SAL QF100-200 gp-1x5kg Gadus morhua BACALAO LOMOS IWP 300+ WP 300-gp 5x Pollachive CARBONERO COLAS FOGONERO PUNTO DE SAL QF-80-p-1x5 Palachius viens CARBONERO FILETES FOGONERO PUNTO DE SAL QF100-500, 500-1000, 1000+ gp 1 Sebastes marinus/mentals GALLINETA FILETES CON PIEL IQE TO-10, 120+, 300+ g 1x5 kg Plecu mult LANGOSTINO AUSTRAL ACHERNAR ENTERO Q-10-20, 30-30, 30-40 p 5x2 Plasticus mull LANGOSTINO AUSTRAL ACHERNAR COLAS QF 25-35, 58-100px Placticus muda LANGOSTINO AUSTRAL ACHERNAR COLAS BLO 25-55, 55-100 p9x2 Plasticus mutan LANGOSTINO AUSTRAL COLAS BLO 25-55, 56-100x vantamw LANGOSTINO VANNAMEI ENTERO CRUDO IQF 20-40, 40-50, 50-80, e0-70 70-80 pill x 2 Naph ALA DE ESCOCIA ENTERAS PESCA DEL DÍA IQE 3-4, 6-10, 11-15, 15-20, 21-25, 28-35 p 1x 15 CIGALA DE ESCOCIA ENTERAS VOF 12-4, 1-3D, THE 15-20 21-29, 25-35 p 1x 15 Pems cau MEJILLON VERDE DE NUEVA ZELANDA MEDIA CONCHA VIEIRAS DE ESCOCIA MEDIA CONCHA Q-5-8 8-12 pkg1x5kg QF-20-20, 30-45+ p/kg-12x1 Gadus mortua BACALAO DE ISLANDIA ENTERO ABIERTO 5-10, 10-20, 20-30, 20-40 40-60, 80-100 p-1a 25 kg Gadus morhus BACALAO DE ISLANDIA FILETE 100-200, 200-400, 400-700, 700-1000, 1000-1400, 1400-2000, 2000+ 1x20 Gade martua BACALAO DE ISLANDIA LOMO SUPERIOR LOMO EXTRA LOMO ARTESAND Gamar BACALAO LOMOS SUPER/RESUPER Gemart BACALAO SUPREMAS PREMIUM QF 450-1000, 1000+ 1x7kg QF 300-500 px Gadus morha BACALAO VENTRESCAS Q-100-300 gp Gadus morhu BACALAO COLAS IQE 80+gp 1x7g Sepia pharaone SEPIA LIMPIA QF-2-4, 5-7, 8-12 p Origan Indonesia Sepia officinale SEPIA ENTERA BLO-300-400, 400-800, 800-800, 800-1000 g 2x 5 Kgsprise Origen Sere Sp SEPIA ENTERA QF-100-200, 300-300 300-1000 g 2x5 Origen Tailandia Seple officialle SEPIA ENTERA EN BANDEJA BLO-50, 50-100, 100-200, 200- 300; 200+ gip Origen Tre x2kg/5 Logo duvana CALAMAR ENTERO, LIMPIO IQF-U-10, 10-20, 20-40 40-600k Crigen indis Log CALAMAR ENTERO BLO 200-300, 300-300, 500- 1000, 1000+ -1xx Oren Excocis CALAMAR ENTERO TWIP-15-20, 21-25, 35-20, 25-40 41+ cm/p Ongen Senegal ar agantinue POTA ARGENTINA ENTERA CONGELADA A BORDO 0-200, 300-300, 300-400, 400-500, 500+ -1x12 kg spr Me argentinus POTA ARGENTINA VAINA CONGELADA A BORDO BLO - 18-22, 23-28, 20+ cm 1x 12 kap Mer agentus POTA ARGENTINA CONGELADA A BORDO TENTACULOS BLD 60+ om 112 Gadus morhus-Gadde BACALAO CROQUETAS Bandeja 20 ud Gadus marhus-Gadise PIQUILLOS DE RANDADA Band 12 udy 4xud Lago chinense Gadus mortua BACALAO SUPREMAS Q-10-200 gp1x7 Gadus morhus BACALAO LOMOS PORCIÓN QF-120+ 1x7kg Logo davace CALAMAR TROCEADO IQF-12x 500g Parapenaeus longirostrie GAMBA BLANCA COLA PELADA QF-120-p/kg 1xB Litopenaeus vanname LANGOSTINO VANNAME! COLAS PELADAS SIN DEVENARY DEVENADAS IQF de 10-20 hasta 100-150 12x1kg CALAMAR ENTERO WP 100-300, 200-500, 500-1000 gp-1x Orpen Indis Origen Talandis THE HAVELOCS: FISH & CHIPS MADE IN THE U The water Iceland Seafood Fish & ChipsⓇ El auténtico fish and chips elaborado al estilo UK para Iceland Seafood Gadus morhua-Gad BACALAO BRANDADA Banky 4x250g Gadus morhua-Ga FARCELLET DE SALMON CON BRANDADA Band 4x10 ud Sardina pichards - Clupeide SARDINAS EN ESCABECHE Band 22kg Gad mor PASTA DE BUÑUELOS DE BACALAO Band 4350 Gade montus-Gadidae PINCHO DE TORTILLA DE BACALAO Band 10 d Gedue macrocephalve BACALAO EMPANADO Q-284-30 Sandra Pichard SARDINAS ROMESCO AHUMADAS SALSA Band 870 g Bandeja Gamona BACALAO REBOZADO IQF-125x BACALAO DE ISLANDIA DESMIGADO Maha molve MARUCA LOMO SUPERIOR BANORD TROZOS BANORD DESMIGADO NB BANDRD Gadu mar Gadus morhus Gada martua BACALAO DE ISLANDIA BACALAO DE ISLANDIA LOMO PREMIUM LOMO CENTRO FLAPS SE FLAPS 1x5 COLAS Gadus morhua Gadus mortua BACALAO BACALAO PORCIÓN ESPECIAL QF-200+ 1x5 POSTAS IQF 400-500 gp IWP 400+ p 1X THE Gedus morhua BACALAO MIGAS REBOZADAS QF- Gadu mortua BACALAO TAQUITOS REBOZADOS IQF 15-40-10=400 g/ 1x85 Marius app MERLUZA EMPANADA Q-125-8x25g Otros productos de Islandia Calidad desde el origen Scamber scambrus CABALLA FILETES CON ESPINAS QF110+ p 15kg Scomber acombrus CABALLA FILETES SIN ESPINAS 1QF 100+ p 15 Origen Turquis phagus PEZ ESPADA RODAJAS CON PIEL QF 300-500 g Xphian gadu PEZ ESPADA CENTROS CON PIEL QF-4000+ Gadu martua BACALAO Gade martu BACALAO FILETE ABIERTO IQF-500-1000, 1000+ p 1x7kg/1xTk QF 2000-4000 gp 1x17 sproze Orajan Turquis Gama de productos de otros orígenes, procedentes de los principales caladeros del mundo. Erga encic BANDERILLA DE ANCHOA Tarina 2x 500g Engraue encras BANDERILLA DE BOQUERON Tarrira 2 x 500 Engraue ancrasi ANCHOAS CANTABRICO FILETES Tarina 2X 500 g Engraue encai ANCHOA FILETES SELECCIÓN Tarina 50 ud LAS TA- PAS de Islandu Armengol Latest PERCA DEL NILO FILETES SIN PIEL TWP 300-500, 500-1000 1000-2000, 2000+ gpx Gadus morhua BACALAO SUPREMAS IQF-150+p-15 Gedue martua BACALAO FILETES MENU QF-100-180, 180-200 gp 1x5kg Gadus morhus BACALAO TAQUITOS 2x2-3x4 QF-1x5kg Gadu martu BACALAO FILETES CON PIEL 100-500, 500-1000, 1000+ p QF1x11 Gadus morhus BACALAO LOMOS IWP 200-300 wp-200-300 gp 6x2 Gadus morhus BACALAO VENTRESCAS IWP Tap 100-200 g 6x MENDO ENTERO QF 200-500 g Gadus morhus BACALAO SUPREMAS WP TWP-150-250 g/ GALLO ENTERO WE-200-700 700 n xx Scomber cambrus CABALLA FILETES CON PIEL Q100-150 p 1x Gadus morhua BACALAO LOMOS GRAN GOLIAT TW 200-250 g 3x4 kg Naphrape norv CIGALA NITROGENO 1-4, 5-7, 8-10, 11-15, 15-20, 21-25, 25-25, 26-45 p 4x Agropecten purpurata VIEIRA DEL PAC PACIFICO CARNE CON CORAL IQF 10-20, 20-30, 20-40 p/b 101 Agropecten purpuratus VIEIRA DEL PACÍFICO MEDIA CONCHA IQE 10-20, 20-30, 30-40 40-608x Salmo salar SALMON ATLANTICO DE CHILE LOMOS SIN PIEL 2-PACK 125 / 20x250g SAL MON ATLANTICO DE CHILE LOMOS CON PIEL 2-PACK-125 -20x250g Salmo SALMÓN ATLÁNTICO DE NORUEGA PORCIONES SIN PEL 2-RACK 125 g 20x250/12250/24x250 Salmo salar SALMON ATLANTICO DE CHILE FILETES VAC 500-1400, 1400-1500gp 1x Sebastes marinus GALLINETA HG BLO 200-200, 300-500, 200-700 TOD+37 Scamber scambr CABALLA ENTERA QF-300-500, 400-800 gp 1x2 BLO 400-600-4x6 Gadus morhus BACALAO SIN SAL FILETES INT-200-400, 200-1400, 1400- Pollachive whene FOGONERO FILETES SIN PIEL 140-225, 225-450, 450-900 900+ INT 2x Anahinha upu PERRO DEL NORTE FILETES SIN PIEL INT 100-400, 400-800 gp Strongylocentrotus doebach ERIZOS DE MAR ENTEROS Y HUEVAS QF-1/2 x 100g Priznace glauca CAELLA LOMO LIMPIO QF-800+gp x Octopus valanis PULPO EN FLOR IQF de 100 h 4000+ Orgen Tun Octopus vulgaris PULPO EN FLOR IQF-500-800, 800-1200, 1200-1500, 1500-2000 gp Crigen Senegal Octopus var PULPO EN BLOQUE BLD 200-300, 300-500 500-800, 800-1200, 1200-1500 1500-2000 g argen Snaga Sepis pharaons SEPIA LIMPIA KF-50, 20-300, 100-150 150. 300, 200-300, 200+ p 1x Organ Tüm Sepis pharac SEPIA LIMPIA IQF VARIOS TAMAÑOS 1 Origin India Late PERCA DEL NILO HG TWP-1000-3000, 3000-5000-120 Laphie piscatorius RAPE GRAN SOL ENTERO CONGELADO A BORDO Twp 2000-4000 gp Loppatorius RAPE GRAN SOL COLAS SIN PIEL DE A BORDO TAP-900-1000, 1000-1500, 1500- 2000, 1000-2200, 2000-2500, 2500-3000, 3000-5000,000+ Mertuccius capenale MERLUZA DEL CABO FILETES SIN PIEL INT-2-4, 4-6 6-9, 9+ 2x5 Mericolus austral MERLUZA AUSTRAL FLETES SIN PIEL INT-30, 1000-gb-2x5,8 kg Mertuccius austra MERLUZA AUSTRAL FILETES CON PIEL INT-150-1000, 1000-2000, 2000- 2000, 2000-gp 3x Panda bol CAMARON PELADO COCIDO QF-150-250 p/b 4x2,5 Lamel LANGOSTINO VANNAME! COLAS Q-21-35, 41-20 p/b 10x2kg Las Ta-Pas de Islandia® Armengol Tapas, pinchos y platos preparados a partir de bacalao Iceland Seafood Engra EN VINAGRE Gadus morhus-Gadidae Salmo asis Sardin BOQUERONES BACALAO SALMON ARENQUE AHUMADO AHUMADO AHUMADO Tarinaa 2x 500 y 10 x 100 g Tarrina 600 g Tarina 600 Tarrina 500g Gadus morhus-Gedde BACALAO A LA LLAUNA Band 12 y 4x250g Gada mora-Gadd BACALAO REBOZADO Bankgy 4x250g Gadus morhus-Gadde BACALAO CON ALL I OU Bandeja 15 kgy 4x350 CON SANFAINA Bunches 17 kg Band 12 Gadu martua-Ga BACALAO Gadus morhus- BACALAO CON VERDURA Gadus morhua-G BACALAO BUÑUELOS Gadus morhuwa-Gaddar BACALAO TORTITAS 1kg 4x200 g Bandeja 900g Gadus morhus-Gadidee BACALAO HIGADO AL NATURAL Latas 21x120 Sardina hande Sardina diicardus ARENQUE TABAL Tabky 12 SARDINAS DE LA COSTA CURADAS EN SALMUERA Bandeja 1 y 44 ud Scomber scombrus Mota mas CABALLA HUEVAS ALVACIO AL VACIO V Variabi Thunnus albacare MOJAMA LOMOS, EXRAY TROZOS Variable#55Board and Executive Management#56ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Strategic and diverse Board Following the acquisition of Solo Seafood in 2018, Iceland Seafood underwent management changes where a new CEO and Board joined the Company Magnús Bjarnason Chairman Jakob Valgeir Flosason Liv Bergþórsdóttir Ingunn Agnes Kro Board member Board member Alternate member Magnús is an experienced specialist with an extensive background in finance, renewable energy, seafood and government service Jakob, who is the CEO of seafood producer Jakob Valgeir ehf., has an extensive knowledge of the Icelandic seafood industry from all perspectives Liv has worked in the telecommunications industry for 20 years, 12 as CEO of Nova, a company repeatedly awarded for marketing and branding Ingunn, a lawyer, was most recently Director of Administration at listed company Skeljungur, heading internal and external communication and compliance#57ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Bjarni Ármannsson CEO Bjarni has been the Group's CEO since January 2019. Bjarni is a significant investor in Iceland Seafood. International via his holding company Sjávarsýn. Bjarni is a computer engineer from the University of Iceland in 1990 and graduated with an MBA from IMD in Switzerland in 1996. Bjarni spent the lion share of his career in the banking industry in Iceland, originally as a CEO for Kaupthing, an investment and financial service company and later for the Icelandic Investment bank Experienced Management and as a CEO of Islandsbanki - a leading seafood service provider out of Iceland Reynir Jónsson CFO Reynir Jónsson has been the Group's CFO since late 2013. Before joining the Group, he worked as a Director and Partner at Deloitte Financial advisory services for five years, where large parts of his projects were related to the seafood sector in Iceland. Prior to that, Reynir was the head of accounting at HB Grandi. Reynir holds an MSc degree in Finance and Strategic Management from Copenhagen Business School and and a Cand.oceon Degree in accounting from the University of Iceland#58Appendix II Financial Information#59ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares • • Apparent margin increase of Value Added segment focus Increased focus on Value Added segments has tripled net margin of the segments Following most recent acquisitions about 80% of the company's margin is generated by Value Added segments The Value Added segment is strongly supported by the S&D segment and close connections with the company's largest suppliers and shareholders securing highest quality raw material to the Value Added segments • Value Added segments generating an increased percentage of Group's profits In 2018 about 87% of normalized profit before tax (before allocation of head office costs) came from Value Added segments • The ratio is expected to increase as the company's PBT growths to EUR 20m in the next 3-5 years as estimated Net margin (EURM) PBT* before head office costs 50 90% 10 100% 90% 87% 82% 82% 40 80% 8 80% 75% 68% 70% 70% 30 70% CO 6 60% 8.1 35 50% 34 62% 62% 20 60% 4 40% 22 3.3 3.5 30% 12 12 10 50% 2 20% 10% 7.2 7.5 7.3 7.3 8.0 1.5 1.5 1.2 0 40% 0 0% 2016 2017 2018 2018P 2019E 2016 2017 2018P Net margin S&D Net margin VA VA's ratio (right axis) Sales & Distribution (S&D) Value Added (VA) VA's ratio *Normalized PBT represents profits before tax before allowing for significant items and discontinued operations. 2018P (proforma) based upon 2018 actuals as Oceanpath and Solo Seafood were owned for the full year.#60ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares • • Working capital and its indebtedness Market practice of shorter payment terms to suppliers explains working capital needs Inventory requirements and the fact that average payment terms with suppliers of seafood is shorter than the average payment terms of end customers create a working capital need for companies like Iceland Seafood In most recent years Iceland Seafood's payables have amounted to 35- 39% of its inventory and receivables. Part of working capital is debt financed, largely in Spain with favourable terms, currently close to 1% Working capital • Moderate indebtedness of inventory and receivables creates flexibility In most recent years Iceland Seafood's indebtedness of inventory and receivables has been between 60-66% at year-end. This is well below the maximum drawdown ratios Following the proposed equity increase, the ratio can be expected to be below 40% all else being equal Working capital indebtedness 125 60% 150 120 90 66 100% 150 90% 80% 120 65 62 99 70% 66% 60% 90 50% 60 37% 39% 40% 36% 60 35% 66 35 30% 33 53 30 62 66 20% 30 31 10% 35 20 0 0% 0 2016 2017 2018 2019E 2016 2017 Inventories Receivables Payables Inventory and receivables 39 Revolving credit 51% 2018 100% 130 80% 60% 39% 64 40% 20% 50 0% 2019E Indebtness ratio (right axis)#61ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Strong cashflow generation Financial activities Growth requires working capital . . . As a part of the company's value added products are frozen and seasonal they require inventory build up As Iceland Seafood's average payment terms with its suppliers is shorter than their customers average payment terms growth increases working capital A large part of working capital is financed through local banks in Spain, currently at a margin of about 1% • . With increased working capital financial activities will increase Cashflow (EURM) Operating profit Depreciation and amortization Other 2016 2017 2018 2019E 4.5 4.6 7.9 13.8 0.8 0.9 1.3 2.2 0.0 (0.0) (0.3) 0.0 Changes in working capital 2.3 (6.7) (0.9) (4.6) operations, which is a key driver Cash from operations before interests and taxes 7.7 (1.2) 8.0 11.4 • Investments in current in increasing the groups PBT to EUR 20m in the next 3-5 years, will partly be financed be debt • It is assumed the proposed equity increase will be used to lower current debt which can be increased again as needed when investment opportunities arise Interest paid/received Income taxes paid Net cash to discontinued operations Net cash generated by operating activities Investing activities Financial activities Cash flow for the period (1.4) (1.3) (2.0) (2.6) (0.7) (0.8) (1.8) (2.1) 1.0 (0.0) (0.0) (1.7) 6.5 (3.4) 4.1 5.0 (1.2) (0.7) (9.9) (4.4) (6.1) 4.5 7.7 (1.5) (0.8) 0.4 1.8 (0.9) *Cash flow assumes proposed equity increase will be used to temporally decrease debt instead of increasing cash.