#1ISI SEAFOOD ICELAND Q1 2020 Results Presentation to Investors and Analysts#2ICELAND ISI SEAFOOD Q1 2020 Results Presentation to Investors and Analysts We are Iceland Seafood#3ISI ICELAND SEAFOOD Q1 2020 Results Presentation to Investors and Analysts Iceland Seafood International is proud of its strong heritage and history and continues to build on that foundation, to become a respected industry leader The Union of Icelandic Fish Producers (SIF) Founded in 1932 for export of salted fish products The Herring Board Founded in 1935 for the export of salted herring from Iceland Samband of Iceland Samband of Iceland establishes a seafood division for export of frozen seafood armengol sa Armengol Spanish company purchased in 1999 SIE Merger: SÍF and Iceland Seafood Plc. Including the Herring Board, under the name SIF Plc. ISI SEAFOOD SÍF Plc founds Iceland Seafood International in order to take over all export and sales of marine products TROS Tros The first company in exporting fresh fish from Iceland became a part of Iceland Seafood. ICELAND ISI SEAFOOD BARRACLOUGH IS Barraclough Acquired in 2010 and marks the beginning of value added operations in the UK 1932 1932 1957 1999 1999 2004 2008 2012 HAVELOK Limited Havelok Founded as a joint venture, Havelok today is a leading seafood supplier to UK foodservice 2016 First North listing Iceland Seafood listed on the First North Iceland market 2018 2018 OCEANPATH QUALITY SEAFOOD Oceanpath Purchased in 2018, Oceanpath is the largest seafood provider in the Irish retail market ICELANDIC SEAFOOD Solo Seafood Purchased in 2018, creating a strong integrated company in the Southern European market 2019 Nasdaq Main Market listing Iceland Seafood International lists its shares on the Nasdaq Iceland Main Market 2020 Elba Seafood Purchased in 2020, Elba is a great addition to well positioned S- European operation 2020 ICELAND ISI SEAFOOD UK Iceland Seafood UK Merge of the two Iceland Seafood's UK based companies Havelok Ltd and Iceland Seafood Barraclough in one 3 2010#4ISI ICELAND SEAFOOD Q1 2020 Results Presentation to Investors and Analysts Global value added Seafood producer and sales and marketing company Iceland Seafood in numbers +448m € Annual revenues in 2019 11,3m Normalised PBT 2019, up from €10.8 proforma in 2018 38.3% Equity ratio 38.3% at year end 2019 up from 30.6% in 2018 12 Businesses in 8 countries 3000+ Customers across 45 countries X 1.1m Meals sold every day 7 value added factories 4 +660 employees 100.000 metric tons of products sold#5ISI ICELAND SEAFOOD Q1 2020 Results Presentation to Investors and Analysts UK merger project on track despite external callenges ISI ICELAND SEAFOOD UK ISI ICELAND SEAFOOD UK . • Investment in new production and coldstore facility for merged UK Operation • A 10.000m2 facility in Grimsby acquired in beginning of March, including three processing halls and a 2.000MT coldstore capacity. Total investment of £5.0-6.0m including refurbishment and machinery to fully utilize its potential, Coldstore up and running from beginning of June, estimated annual cost savings of c.a. €0.5m based on current operation, Refurbishment of production facility on track with the aim of starting production in Q4 2020. Targeting to have all production in a single location in Q1 2021, Merger project on track despite challenges due to Covid19 • • Havelok and IS Barraclough will be merged during this year under one leadership team and a single site, In order to be the sole shareholder of the merged entity, a 33% minority share in Havelok was acquired in beginning of March, Havelok renamed to Iceland Seafood UK at end of April. Legal merger with IS Barraclough to be finalised during the year, One finance team in the new office premises from beginning of June, Will create a significant player in the market, with stronger buying, production and marketing power. Considerable synergies to be created e.g. in overhead, production, sourcing and coldstore. Commercial discussions with key UK retail customers on track • In addition to synergies associated with the merger there will be a room for significant growth when facility is up and running, Product range will reflect current offerings but on a larger scale, Commercial discussions taking place with key retailer customers in UK, Positive impact from synergy creation and revenue growth estimated to come through from Q1 2021. 5#6ISI ICELAND SEAFOOD Q1 2020 Results Presentation to Investors and Analysts La Sirena tacos de BACALAO al punto de sal ALTO CONTEND EN OMEGA 3 BACALAOise un a condeno acade novine TACOS DE BACALAO AL PUNTO DE SAL ULTRACONGELADOS INGREDIENTES MER MAD 27, we fig PREPARACION 414332 003286 Consumider 900 21 06 21 www. CONSERVACION Es Spades 450g mede arte del/Le APORNICAN METICIONAL porciones de orciones de Sire al la Sirena PESO NETO PESO NETO ESCUDD 360 g 6 g LANDIA MIGAS DE BACALAO DE ISLANDIA ULTRACONGELADAS Gadus morhua MERA CONGE AL PUNTO DE SAL LISTAS PARA CON PRIMERA SIN ESPINAS BE FESIONAL COCINA Colita FILETTINI DI MERLUZZO LEGGERMENTE SALATO NORDICO SURGELATO SENZA SPINE ACALHAU DA SLANDIA ESFIADO TRACONGELADO SEM ESPINHA Pri congelação COM PONTO DE SAL BAC al punto de sal BACALAO Contas of al punto BA al punt ONTO la Sin ALTO PROTEINA TEINAS Benefits of strong merged entity in S-Europe evident in the current situation IS Iberica production of light salted cod in a single location from Feb 2020 • • • The merged entity IS Iberica operating from January 1st 2020, Production of light salted cod has been moved to a single location in Barcelona from February 2020, Restructuring of Ecomsa. finalised in February, now focused on local distribution in Andalusia. This operation temporarily closed due to Covid19, The merged entity in good position to manage operation effectively in the current situation, Disruptions in production, Acquisition of Elba finalised in Q1 2020 • logistics etc are causing a delay in synergy creation from the merger. Closing of transaction 21 February 2020, Immediate steps taken to integrate operation with IS Iberica, i. Joint management team with IS Iberica, former CEO and CFO resigned prior to acquisition ii. Purchasing managed by IS Iberica commercial team iii. Actions taken to leverage marketing, distribution and production capabilities Acquisition strengthens Iceland Seafood's sourcing network with GPG Seafood and Icemar becoming shareholders in Iceland Seafood. Significant increase in production of Achernar • Investment in increased capacity finalized early December 2019, Production in Q1 2020 of 6.820MT was up 60% from same time 2019, JV project on squid going well with two landings in Q1 and the third landing in Q2, Second phase of the investment is slightly delayed due to the situation and will be finalized in Q3, with a 800 MT coldstore up and running from that time. Will improve flexibility in sales and reduce storage costs. 6#7ICELAND ISI SEAFOOD Q1 2020 Results Presentation to Investors and Analysts οι AS NORTH SHIELD 120 130 140 150 160 170 180 190 200 08 GILLIE • Negative short term impact of COVID-19 Mid-long term impact uncertain Create interesting growth opportunities Results in Q1 were marked by the The financial and operational outbreak of Covid19 and actions taken strength of Iceland Seafood has to control the outbreak and Q2 will be enabled the company to manage the severly impacted. The Group base situation effectively. Among key scenario expect sales to start to actions taken are: recover in Q3 and to be on track in Q4 . Lion's share of sales in S-Europe are to the HORECA sector. Around 1/3 of sales in UK are to the Foodservice sector. Both sectors are significantly impacted by the situation, Sales in S&D division have been c.a. 40% of normal level, reduction in demand in all markets and product categories, Retail sales have been strong from Mid March which has helped mitigating the impact, Important steps have been taken in key markets to ease restrictions and further steps to be taken in the coming weeks, With important activities related to the foodservice sector opening up (canteens, schools, restaurants, hotels etc), sales in key markets are expected to improve in the coming weeks and months, Results in Q1 were marked ty the current situation and Q2 will be severely impacted as well. The Group base scenario expect sales to start recover in Q3 and to be on track in Q4. 7 1. Appropriate contingency plans have been implemented within group businesses with focus on health and safety of employees and to secure continuity of operation, 2. Risk management controls have been tightened, with focus on key assets on the balance sheet, receivables and inventories. Over 90% of the Group receivables are credit insured, inventories mainly consist of frozen products, 3. Actions to secure liquidity and ongoing funding in good cooperation with banks in Iceland and Spain. New long-term funding for operation in Spain secured in April, 3-5 year loans at 1.4-1.8% interest rate and total amount in excess of €17m. Actions were taken to improve headroom for the other part of the Group as well, 4. Leverage Iceland Seafood's strong position to act on opportunities that come up in the situation, both. with regards to short term opportunities related to sourcing and marketing and longer term strategic opportunities.#8ISI ICELAND SEAFOOD Q1 2020 Results Presentation to Investors and Analysts Q1 2020 Results Financial performance#9ISI ICELAND SEAFOOD 1Q 2020 Results Presentation to Investors and Analysts Sales & Distribution IS Iceland IS France Unique combination of sourcing expertise and well positioned value added activities Iceland Seafood International Executive management Value Added N-Europe Value Added S-Europe 2013 IS Barraclough IS Ibérica Havelok Elba IS Germany Oceanpath 0 Ecomsa Dunn's of Dublin 0 Achernar IS USA Employees 34 (5%) 241 (36%) Executive management & Group reporting: 386 (58%) 3 (0.5%) 0 9 2019 Turnover 29% 71% 41% 59% 2013 Profit before tax 26% 74% 2019 15% 85% Sales & Distribution Value Added Sales & Distribution Value Added#10ISI ICELAND SEAFOOD Q1 2020 Results Presentation to Investors and Analysts € m's Sales Net margin Normalised EBITDA Normalised PBT* Strong squid season in Argentina helps mitigating Covid19 impacts Q1 2019 Q1 2020 43.0 50.1 5.2 5.8 2.2 2.7 1.7 2.3 * Normalised PBT represents Profits before tax before allowing for significant items and discontinued operations. Sales down 14%, impacted by Covid19 • . . Good demand in the first two months of the year, was not fully leveraged due to lack of supply, Significant reduction in sales from Mid March due to Covid19 impacts, Vast majority of sales are to the HORECA sector, which is heavily impacted by the situation. Lent season normally an important sales period, driven by high fish consumption in catholic regions, Good sales to customers within retail have helped mitigating the impact, Strong fishing of squid in Argentina, also helped in the situation and will also have a positive impact on Q2, > VA S-Europe > VA N-Europe > Sales & Distribution Normalised PBT down €0.6m on Q1 2019 Weaker sales a key explanation for reduction in profits, Margins from Cod products strong in the first two months of the year, driven by good demand and limited supply, Production of Argentinian shrimp increased by 60% from prior year, but margin negatively impacted by c.a. 20% price reduction, Operating cost of IS Iberica €0.3m lower than Q1 2019, driven by cost synergies from the merger, Operation of Ecomsa and Elba reduced to minimal level from mid March as a response to Covid19 impact on demand. 10 • Sales of Elba were €2.6m in Q1.#11ISI ICELAND SEAFOOD Q1 2020 Results Presentation to Investors and Analysts € m's Sales Net margin Normalised EBITDA Good sales growth into UK and Irish retail Q1 2019 25.1 • 10% sales growth from prior year Q1 2020 27.7 3.0 3.0 1.4 1.5 Normalised PBT* 0.9 1.1 • * Normalised PBT represents Profits before tax before allowing for significant items and discontinued operations. FRYCITY HOMETOWN N Daily Chips on History patates fil TO SHUTS or "allumettes" is used when the d are very small and thi Belgian journalist that a family ma Belgium manusan cut potatoes in the form of small fish and Meuse for small fish and frying, especially fried pot among the poor, but when the river was de teme fries, but frozen and fishing became hazardous, they "pommes frites fes Netherlands and is now present Belgium, in the Meuse valley: "The inhabitants of Namur, Andenne, and Dinant, had the custom of fishing in the put them in a fryer like those here" recounts that potatoes we prior to 1680 in what was the or simply files. The word "puliar or French 11 28% sales growth into retail in UK, driven by new listings from 2H 2019. Strong sales in March after Covid19 restrictions were put in place, After strong start of the year sales to UK foodservice, dropped significantly in March due to implementation of Covid19 restrictions, Sales in Ireland 9% up on same period last year. As expected, sales have remained strong after Covid19 restrictions were put in place. > VA S-Europe > VA N-Europe > Sales & Distribution Slight reduction in Normalised PBT Reduced production capacity in China in beginning of the year, due to Covid19 impact. Gap in supply bridged with less cost- effective solutions from Europe, High raw material prices in the first two months of the year, salmon prices were significantly higher than last year the first 9 weeks of the year, From Mid-March, cost related to implementation of Covid19. contingency plans had negative impact on margins, Reduction in higher margin foodservice sales in UK, from mid March. Havelok production closed down from end of March.#12ISI ICELAND SEAFOOD Q1 2020 Results Presentation to Investors and Analysts Sales impacted by bad weather in Iceland and Covid19 outbreak > VA S-Europe > VA N-Europe > Sales & Distribution € m's Sales Net margin Normalised EBITDA Normalised PBT* Normalised PBT down on same period down €0.3m from last year Q1 2020 Q1 2019 Sales in Q1 €16.2m 39.9 56.1 1.7 2.3 • 0.3 0.7 0.3 0.6 * Normalised PBT represents Profits before tax before allowing for significant items and discontinued operations. • • Bad weather in Iceland in the beginning of the year impacted both supply and logistics in the period, Pelagic sales from Iceland €4m down on same time last year, which was exceptionally strong, Lower demand for frozen products in both USA and France during the period, Divisional sales dropped to c.a. 40% of normal level from Mid March due to Covid19 impacts. 2019 Net margin €0.6m down on prior year due to lower sales, Overhead costs in Q1 2020 have reduced by €0.2m from same period last year due to lower activity. FX impact from weaker ISK has also helped, Various actions taken to mitigate impact of Covid19 and reduce costs. 12#13ISI ICELAND SEAFOOD Q1 2020 Results Presentation to Investors and Analysts € m's Sales Net margin Normalised EBITDA Normalised PBT* Net Profit Results impacted by Covid19, shortfall in sales to foodservice partly ofset by strong retail sales Q1 2020 Q1 2019 107.3 120.9 9.9 11.2 4.0 5.0 2.6 3.5 1.9 1.9 • * Normalised PBT represents Profits before tax before allowing for significant items and discontinued operations. 11% reduction in Group sales from 2019 • Sales in the first two months of the year in line with plan, but significant reduction in March due to Covid19, Large shortfall in both S-Europe and S&D divisions, as these are heavily dependent on foodservice and HORECA sectors, Sales in N-Europe in line with expectations. Strong sales to retail in both UK and Ireland offsetting shortfall in foodservice sales in UK. Iceland Seafood Group Normalised PBT down €0.9m on prior year 11% reduction in sales resulting in €1.3m shortfall in Net margin, Reduction in operating cost of €0.2m, driven by synergies in Spain, and slightly lower financing cost partly offset the net margin drop, Actions taken in the second half of March to reduce costs and scale down operations in UK foodservice and Spain, Net results are in line with prior year, with 2019 Q1 results impacted by €0.8m one off cost, compared to €0.2m this year. 13#14ISI ICELAND SEAFOOD Q1 2020 Results Presentation to Investors and Analysts €29m increase in total assets, driven by investments and seasonal purchases € m's Fixed assets Leased assets Intangible assets 31.3.2020 31.12.2019 Variance € m's 31.3.2020 31.12.2019 Variance 22.5 17.6 4.9 Total Equity 81.6 80.2 1.4 2.6 2.7 (0.1) Thereof minority interest 3.7 3.8 (0.1) 51.8 44.7 7.1 Long term borrowings. 7.8 8.0 (0.2) Deferred tax/other 2.9 3.1 (0.2) Lease liabilities 1.9 2.1 (0.2) Non Current Assets 79.8 68.1 11.7 Obligations/Deferred tax 2.0 2.1 (0.1) Inventory 85.2 65.1 20.1 Non Current Liabilities 11.7 12.2 (0.5) Trade and other receivables 62.9 62.3 0.6 Short term borrowings 74.5 67.2 7.3 Other assets 6.3 4.4 1.9 Trade and other payables 59.9 42.2 17.7 Bank deposits and cash 4.4 9.6 (5.2) Other current liabilities 10.9 7.7 3.2 Current Assets 158.8 141.4 17.4 Current liabilities 145.3 117.1 28.2 Total Assets €29.1m increase in total assets from year beginning driven by: Acquisition of Elba Investments in UK ● • • Higher stock levels, due to seasonal purchases in both Spain and UK, 238.6 209.5 29.1 Net debt of €77.9m at year end, €12.3m higher than year beginning. Increase driven by investments in UK and Elba and higher stock levels, Total Equity and Liabilities Equity ratio of 34% compared to 38% at year beginning. Will strengthen to 36% post share issuance related to acquisition of Elba and minority share in Havelok, 238.6 209.5 29.1 Cash position and funding headroom being increased with in excess of €17m long term financing with banks in Spain in April 2020. Resultant Group funding headroom (including cash) at end of April €30m. 14#15ISI ICELAND SEAFOOD Q1 2020 Results Presentation to Investors and Analysts Q1 2020 Results Outlook#16ISI ICELAND SEAFOOD Q1 2020 Results Presentation to Investors and Analysts Outlook for 2020 • Current estimate of full year Normalised PBT at €6.0-9.0m Results in Q2 will be significantly impacted by the situation. Outlook scenario expecting sales to start recover in Q3 and to be on track with original outlook in Q4 Uncertainty remains significant on development of the pandemic and for how long sales and profitability will be impacted by the situation. The Group will communicate further on the matter and provide updates as appropriate in the coming months. Outlook range will be narrowed as less ambiguity will be on the development. Outlook range of Normalised PBT €6.0-9.0m. Uncertainty remains significant on Covid19 impact Uncertainty Covid19 is causing a significant uncertainty on the Group sales and profitability during this year Group results are also influenced by other external factors such as: i. Fishing and quota changes as well as price development and our ability to pass on price changes in key markets ii. Changes in underlying global economic conditions, currency rates, import duty rates, competition and consumer behaviors all generate uncertainty iii. Among these uncertainties are Brexit, USA related tariffs and political uncertainty in Argentina *Normalised PBT represents Profits before tax before allowing for significant items and discontinued operations • Focus and growth · Actions have been taken to secure funding and liquidity of the Group in the current situation. New long-term funding of €17m with banks in Spain. Focus on projects to drive synergies and organic growth within our value-added activities At the same time leverage the Group's strong position and act on opportunities that come up in the situation, both with regards to short term opportunities related to sourcing and marketing and longer-term strategic opportunities. Full year Normalised PBT* (m's) 11,3 10,8 3,5 3,3 2,9 1,7 1,3 1,0 0,8 7,4 9,0 6,0 16 2011 2012 2013 2014 2015 2016 2017 2018 2018P 2019 2020#17ISI ICELAND SEAFOOD Q1 2020 Results 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.#18ICELAND ISI SEAFOOD www.icelandseafood.com We are Iceland Seafood