ISI Seafood Q3 2022 Results

Price increases are reflected in increased turnover but lower volume and lower margins ICELAND ISI SEAFOOD Q3 2022 Presentation to Investors and Analysts The decreased purchasing power of consumers negatively impacts the demand • 400 350 319,6 Raw material price increases have levelled off, and in some instances, prices have started to decline, e.g., salmon prices, 300 250 Group sales growth driven by price increases (€'m) 37,2 (5.8) 10,6 362,8 • • • • Big pushback on price increases from both retail and food service. Cost increases have not yet fully been reflected in consumer prices, Price volatility is expected to continue for the coming months, driven by the opposing factors of a decrease in fishing quotas and disruptive supply chains. on one side but economic decline and diminishing consumer purchasing power on the other side, We are starting to see disruptions in distribution with temporary strikes and consequently increased uncertainty in relation to the ability to deliver goods, Both logistics and cold store costs are severely impacted by higher energy prices and are now passed on directly as a surcharge. A limited supply of both cold storage facilities and truck drivers, These disruptions and cost increases are impacting margins, On the other hand, it is likely that value-added production will move closer to consumers. Output in Europe will become more competitive, where automation and investments in production efficiencies will play a key role. Iceland Seafood is in an excellent position to benefit from this development, The operation of Iceland Seafood is well-balanced. The company is in an excellent position to address challenges and utilise opportunities that will arise due to its solid sourcing base and value-added operations close to key markets. 5 200 150 100 50 Sales 9M 21 Price increases * Addition of Ahumados Dominguez and closing of IS USA in 2021 Volume decrease Changes to Group* Sales 9M 22 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 and increase their value.

View entire presentation