2018 Results Presentation to Investors and Analysts Forward - PowerPoint PPT Presentation

2018 Results Presentation to Investors and Analysts 2018 Results Presentation to Investors and Analysts

Forward Looking Statements 2018 Results Presentation to Investors and Analysts 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 refmective 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.

2018 Results Presentation to Investors and Analysts We are Iceland Seafood

Global value added seafood producer and distributor 2018 Results Presentation to Investors and Analysts 1932 667 11 Our beginning Employees Businesses in 8 country locations Long lasting Market and client relationships expertise Global distribution 7 +€400m Serving over 3000 customers Value added factories Annual revenues across Listed on Nasdaq Innovation 45 countries First North and client focus

2018 Year of transformation 2018 Results Presentation to Investors and Analysts Acquisition of Acquisition of Solo Management changes 11,0 Oceanpath fjnalised Seafood fjnalised mid-March 2018 September 2018 • A new CEO appointed in January 2019 • 67% stake acquired, with local • A transformational step for Iceland • New board appointed in management keeping the Seafood, with three major fjshing February 2019 remaining 33% and processing companies coming • Magnús Bjarnason, Chairman. M&A • In line with Group strategy of into the shareholding group, advisor and Managing Partner at acquiring strong value added creating a vertically integrated MAR Advisors companies supply chain through to the end • Liv Bergþórsdóttir, Chairman of • Leading fresh fjsh supplier to customer WOW air and Aur app retailers in the Republic of Ireland • Icelandic Iberica - A seafood • Jakob Valgeir Flosason, CEO of powerhouse in southern Europe Jakob Valgeir ehf. • Magnús B. Jónsson appointed MD for combined entity in Spain to be created during 2019

Profjtability driven by value added activities 2018 Results Presentation to Investors and Analysts Value Added Divisions Corporate Structure Turnover Profjt Before Tax • Following acquisitions last year, two • Good cooperation and service 2013 2013 value added activities are reported to producers in Iceland is Iceland Seafood in two divisions vitally important for the Groups 74% 71% • The decision of merging Icelandic success 29% 26% Iberica and Iceland Seafood Spain Strong combination Value Value will form a strong organization in the Sales & Added Added important Southern Europe market Distribution Northern Southern • The two Value Added divisions • Strong ties to the source is key to Europe Europe 2018 2018 generate over 90% of total our position in selling food protein Proforma Proforma divisional PBT to the market 9% IS Spain • Understanding of the market IS Iceland IS Sales & Distribution demand and behaviour is vital to 39% Barraclough Icelandic IS France Ibérica maximise sourcing power 61% 91% Oceanpath • Approximately 60% of the Group • Having strong sourcing and IS Germany Ecomsa sales are generated by products processing capabilities and being Havelok IS USA Achernar sourced from Iceland, the backbone close to the market is a key S&D VA of the Group attribute towards profjtability

Oceanpath leading fresh fjsh supplier to 2018 Results Presentation to Investors retailers in Ireland and Analysts Highly profjtable Opportunities business with signifjcant historical growth • Utilize Iceland’s seafood sourcing network • Annual growth in sales (CAGR) in • Support further domestic growth excess of 10% since 2015, seeing • Enhance opportunities for PBT more than doubling over the global distribution through the same time Group’s extensive sales network • Knowledge transfer Deal structure Improvement projects • Cash free, debt free • Purchase price € 12.4m with a • Extension of the fresh fjsh facility potential € 1.0m earnout supporting further growth • Fully funded with loan and cash • Automation of processes. New fjlleting line for Salmon

Solo Seafood acquisition creates an integrated Southern 2018 Results Presentation to Investors European industry powerhouse and Analysts Leading seafood Opportunities companies in Southern European market • Vertical integration: three producers became key • Solo Seafood consists of the shareholders in Iceland Seafood companies Icelandic Iberica and • Integrated value chain with access Ecomsa in Spain and Achernar in to 40.000 mt for global Iceland Argentina Seafood group • Consolidated market strength Deal structure Projects • Shareholders of Solo Seafood received approximately 44% of total • Focus on integration and synergies shareholding in Iceland Seafood with the merger of Icelandic Iberica • Iceland Seafood overtook a and IS Spain € 5.1m loan • Drive further growth opportunities

2018 Results Presentation to Investors and Analysts Financial Of Divisions At Group level performance Balance sheet

Strong results driven by > VA S-Europe > VA N-Europe good performance of Iberica 2018 Results > Sales & Distribution Presentation to Investors and Analysts Division incorporates Normalised PBT € m’s 2018 2017 2018P 2017P three manufacturing increased by €1.5m Sales 100.1 62.0 179.5 172.9 sites in Barcelona, from prior year Net margin 10.4 6.6 21.1 20.4 Malaga and in Argentina EBITDA 4.1 2.5 8.3 7.8 • Great performance of Iberica Normalised PBT* 3.5 2.0 6.7 6.3 Servicing the foodservice Group since acquisition and retail markets in * Normalised PBT represents Profjts before tax before allowing for signifjcant items and southern Europe Proforma normalised discontinued operations PBT of €6.7m 61% increase in sales from prior year • 51% of the total Proforma Divisional profjts of the Group in 2018 • Includes sales from Iberica Group from acquisition date mid- September • Good underlying sales growth post 2017 strike in Iceland

Normalised PBT up €3.1m > VA S-Europe > VA N-Europe supported by Oceanpath 2018 Results > Sales & Distribution Presentation to Investors and Analysts Division incorporates Normalised PBT of € m’s 2018 2017 2018P 2017P four manufacturing €4.6m up €3.1m on Sales 97.4 56.2 103.3 87.7 sites in Grimsby, prior year Net margin 11.2 5.3 12.6 10.0 Bradford and two in EBITDA 6.1 2.6 6.9 4.6 Dublin • Up 1.0m excluding Oceanpath Normalised PBT* 4.6 1.5 5.2 3.1 • UK foodservice up €0.6m driven by Servicing the retail and improved sales and higher margin * Normalised PBT represents Profjts before tax before allowing for signifjcant items and foodservice markets in discontinued operations. products 2017 Proforma numbers for Oceanpath based on fjnancial year ending on April 30th 2017 the UK and Ireland Proforma Normalised Sales increasing by 73% PBT of €5.2m, improved from 2017 by €2.1m from prior year • Thereof 53% relates to Oceanpath • Higher activity in UK retail and foodservice

2018 a challenging year, good > VA S-Europe > VA N-Europe growth potential for 2019 2018 Results > Sales & Distribution Presentation to Investors and Analysts The Sales & Distribution Slight decrease in € m’s 2018 2017 2018P 2017P division incorporates Normalised PBT from Sales 183.2 164.6 183.2 164.6 subsidiaries in Iceland, prior year Net margin 7.3 7.5 7.3 7.5 France, Germany and EBITDA 1.7 1.8 1.7 1.8 the USA • More challenging environment for Normalised PBT* 1.2 1.5 1.2 1.5 higher margin fresh fjsh and niece Division sells to over activities, both in Iceland and France * Normalised PBT represents Profjts before tax before allowing for signifjcant items and 45 countries discontinued operations • Slight increase in fjnance cost due to higher sales level and €0.1m adverse Increase in sales by FX movement from prior year €18.6m from prior year Good growth potential for 2019 with • Strong sales growth from Pelagic increased focus on and FAS (frozen at sea) out of utilising opportunities Iceland in cooperation with • Fisherman strike in 2017 impacted producers sales during that year