9M 2019 Results Presentation to Investors and Analysts Forward - PowerPoint PPT Presentation

9M 2019 Results Presentation to Investors and Analysts

Forward Looking 9M 2019 Results Statements 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 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.

9M 2019 Results Presentation to Investors and Analysts We are Iceland Seafood

Building an industry leader 9M 2019 Results from Iceland with a strong heritage Presentation to Investors and Analysts

Global value added seafood producer and 9M 2019 Results global sales and marketing company Presentation to Investors and Analysts 12 620 +1.1m Businesses inesses in 8 Employ loyees ees Me Meals ls sold ld every ry day countries ries Market and client Global Sourcing with core expertise Global distribution from Iceland 7 +€440m Serving over 3000 customers Valu lue e added ed factor orie ies Annual ual revenues enues across Innovation Listed on Nasdaq 45 countries and client focus Main Market. Mcap €182m

Successful public share offering 9M 2019 Results and main market listing Presentation to Investors and Analysts Public offering of new shares Successful main market listing completed in October • In total 225million new shares sold at a price of • October 29th, the first day of trading on the main 9,5 per share. Total increase in equity of €15.2m market • 90% of the issued shares were sold to investors in • Good liquidity since listing, average trade of 8.8m orderbook B, majority of that going to Icelandic shares per day institutional investors, thereof 9 pension funds • Market Cap ISK 25.1 bn at end of October, the 12th • 112 new shareholders joined through the share largest of companies listed on Nasdaq Iceland offering, in total 444 shareholders at end of Stock exhange October • Two market making contracts, both providers • Good balance between industrial and financial committed to make bid and ask for a minimum of investors in shareholders group post issuance ISK 5m at market value, with maximum spread of 1.5%

Great addition to well positioned 9M 2019 Results S-European operation Presentation to Investors and Analysts Elba strong seafood player in Spain Opportunities with the acquisition • Focusing on sales and processing of light salted • Opportunities to further leverage distribution and frozen products production capabilities in Spain • Operating a production facility in Barcelona, total • The Elba brand is well recognized and with strong annual sales volume of around 2.200MT image in the Spanish market • Owned by GPG Seafood and IceMar, which are also • Iceland Seafood will get strong producers into its the main providers to the company network, current shareholders of Elba will get 1.2% stake in Iceland Seafood Share Purchase Agreement signed to acquire Elba • The acquisition price for 100% stake in the company is €4.4m on a “debt free, cash free” basis • 50% of the price will be settled by cash and the other 50% with shares in Iceland Seafood • Due diligence process currently taking place, with the aim of completion around year end

Key projects progressing as 9M 2019 Results expected Presentation to Investors and Analysts Merger project in First phase of New listings within UK Spain on track investment project in retail requiring new Achernar will be investments completed next week • Operation in Barcelona in one • Investment in increased freezing • Total investment of c.a. €1.0m in place from mid November capacity will be finished next UK before year end 2019, in week relation to new listings within • All production of light salted the retail sector products being moved to a • Daily production capacity will single location in Barcelona. double with this investment • IS Barraclough becoming a key Fully implemented in Q2 2020 frozen natural provider to Tesco • The second phase of the from September 2019 after • Synergies within sales, logistics investment is expected to be winning a tender earlier this year and distributions starting to fully completed in Q2 2020, with come through extended facility and a new • Sales to Aldi growing from coldstore up and running from previous years • One legal entity from January 1 st that time 2020 • Launching chilled whitefish with • Total investment in the range of a key retail partner in Q4 2019 $1.3-1.6m

Key Investment projects 9M 2019 Results Presentation to Investors and Analysts IS Barraclough New listings within retail requiring Oceanpath investment €1.0m Facility extension and filleting line €2.9m IS Iberica Barcelona office in one place, all cod production in Barcelona from Q2 2020 - €1.0m Achernar Increased production and coldstore €1.4m

9M 2019 Results Presentation to Investors and Analysts Financial Of Divisions At Group level performance Balance sheet

Strong combination of sourcing expertise and well positioned 9M 2019 Results value added activities Presentation to Investors and Analysts Iceland Seafood International Profit before Executive management Turnover tax Sales & Value Added N- Value Added S- Distribution Europe Europe 26% 29% 2013 2013 71% 74% IS Iceland and IS Barracl aclough gh IS Spain Havelok Iceland andic Iberica ica IS Fran ance ce 9% 39% IS Germany any Oceanp npat ath Ecomsa msa 2018P 2018P 61% 91% IS USA Dunn‘s of Dublin Achern ernar ar Employees Sales & Distribution Value Added 37 (6%) 226 (37%) 354 (57%)

Solid results despite headwinds > VA S-Europe 9M 2019 Results > VA N-Europe in supply during Q3 Presentation to > Sales & Distribution Investors and Analysts Normalised PBT €3.6m Division incorporates € m´ s 9M 2019 9M 2018 9M 2018P 8P up from prior year, up three manufacturing 130.6 Sales 134.7 51.9 €0.2m on proforma sites in Barcelona, Net margin 15.3 5.1 15.7 2018 Malaga and Argentina Normalis lised ed EBITD TDA 6.6 1.7 6.2 • Sales increase a key driver for 9M Servicing the 4.8 Normalis lised ed PBT* T* 5.0 1.4 sales, €4.1m up on prior year foodservice and retail * Normalised PBT represents Profits before tax before allowing for significant items markets in Southern • Cost reduction related to the and discontinued operations Europe merger in Spain starting to pay off • Results of Q3 €0.7m down on The 9M sales growth prior year, due to lower sales in driven by strong demand the period of light salted products • Sales in Q3 5% down on prior year proforma, due to lower availability from Iceland and lower prices on Argentinean shrimp • Lack of cod supply and smaller cod being catched around Iceland

Good recovery in Q3 after > VA S-Europe 9M 2019 Results > VA N-Europe challenging 1H 2019 Presentation to > Sales & Distribution Investors and Analysts Good results in Q3 Division incorporates € m´ s 9M 2019 9M 2018 9M 2018P 8P despite ongoing Brexit manufacturing sites in 75.2 Sales 69.9 69.2 uncertainty Grimsby, Bradford and Net margin 8.4 7.9 9.2 two in Dublin • New listings within UK retail Normalis lised ed EBITD TDA 3.9 4.1 4.9 • Investments in Ireland starting to Servicing the retail 2.6 2.9 3.6 Normalis lised ed PBT* T* pay off and foodservice • Salmon prices came down in Q3 * Normalised PBT represents Profits before tax before allowing for significant items markets in the UK and and discontinued operations. from a high level in 1H 2019 Ireland • The positive results are expected External challenges to continue in Q4 impacting sales and • However FY 2019 profitability is profits in the period not expected to reach last year • Ongoing uncertainty around results Brexit • High raw material prices • UK retail trending towards packed at source

Encouraging performance driven > VA S-Europe 9M 2019 Results > VA N-Europe by good sales out of Iceland Presentation to > Sales & Distribution Investors and Analysts Normalised PBT €0.5m up The Sales & Distribution € m´ s 9M 2019 9M 2018 9M 2018P 8P from the first 9M 2018 division incorporates 136.0 Sales 146.5 136.0 subsidiaries in Iceland, • Sales increase in Iceland a key driver Net margin 5.9 5.4 5.4 France, Germany and for increased profitability Normalis lised ed EBITD TDA 1.6 1.0 1.0 the USA • Profitability in Q3 in line with prior year, Normalis lised ed PBT* T* 1.3 0.8 0.8 impacted by lower availability of * Normalised PBT represents Profits before tax before allowing for significant items Division sells to over groundfish in Iceland and discontinued operations 45 countries Q4 starting strong, good outlook for the remainder Sales increase of 8% of the year from prior year • New quota year started in September • Sales from Iceland continue to with increased cod quotas benefit from stronger cooperation • Q4 an important sales period for fresh with producers products in France and Germany • Sales of seafrozen products from Iceland increased by 52% from 2018