Grieg Seafood

ANDREAS KVAME CEO, GRIEG SEAFOOD

2021 was a year of contrasts. At the beginning, we were still in the middle of the Covid-19 pandemic, with health and safety measures in place throughout our operations and markets in lockdown. We also experienced a challenging biological situation in several regions.

At the end of the year, the pandemic was in a new phase, with eased restrictions and increased demand for salmon. The biological condition of our fish had improved significantly, with increased survival in all regions and better sea lice and disease control. Altogether, we harvested more fish than we have ever done before in a single year. I want to sincerely thank all of my Grieg Seafood colleagues for pulling together and turning the company around.

During the year, we reached several milestones in our 2025 business strategy. With the sale of our Shetland operations, we narrowed the company’s focus to the production countries where we see the largest potential for profitable and sustainable growth: Norway and Canada. With a healthy balance sheet, we are well positioned to engage in growth opportunities in these regions. Last year, our internal global sales organization also became operational. We are now able to work fully integrated between farming and sales, allowing us to improve our performance in the market. We are also making progress on our downstream strategy, and we are currently delivering value added products from both our Norwegian and Canadian operations. This work will continue at full speed in 2022.

In 2021, each region made progress towards our goals. Rogaland delivered strong biological results and continued to advance our post-smolt strategy, which reduces the time our fish spend in the ocean. For the first time, we harvested fish after only 10 months in the sea. Moreover, 40 percent of the pens harvested in Rogaland never needed any sea lice treatments, due to preventative measures. Finnmark significantly improved control over winter ulcers and disease through-

out the year, and delivered a solid performance in the second half of 2021, marked by improved survival rates. British Columbia made further progress in controlling the impact of harmful algae blooms and low oxygen levels. With our locally developed mitigation systems, we reduced mortality caused by harmful algae from 3.4 percent in 2019 to 0.4 percent in 2021. Newfoundland, despite the postponed transfer of fish, is on track to start sea operations in the coming spring.

Our ambitions on sustainability remain steadfast. While food from the ocean has a good starting point, we have several challenges to solve to be a true solution in a future sustainable food system. Grieg Seafood is committed to reducing our impact and improving fish welfare. During 2021, we made progress on certifying our farms according to the Aquaculture Stewardship Council (ASC) certification with 62 percent of our production now certified. We were pleased to achieve second place on the Coller FAIRR Protein Producer Index, which rates global protein producers according to sustainability, as well as an A list rating by CDP for climate action. Still, the majority of the work is ahead of us. We must continue to roll up our sleeves and improve.

It is when times are tough that the truth about who we really are emerges. Despite challenging times in 2020 and the beginning of 2021, we carried on all the way to the other side without compromising on our values. That makes me proud, and I know it has made us stronger. While we cannot predict the future, we know that new uncertainties will continue to appear in a globalized world. As I am writing this letter, a terrible and heartbreaking war is unfolding in Ukraine, and Europe suddenly find ourselves in a new geopolitical situation. What we least expected has sadly become a reality. In 2022, Grieg Seafood is in a better shape than ever to adapt to the unknowns, respond to changes and grasp the opportunities that lie ahead.

Grieg Seafood joins forces with 17 leading industry and research institutions in push to develop low-emission offshore aquaculture

The consortium aims to reduce the environmental impact and improve fish welfare through innovations within offshore and closed technologies, biology, fish feed, electrification, digitalization and logistics. The project is granted 96 million NOK from the Norwegian Research Council.

RAGNA HEGGEBØ GLOBAL R&D MANAGER OF GRIEG SEAFOOD ASA “Offshore aquaculture has the potential to be a solution in a more sustainable global food system. However, there are many challenges to address before we get there. Industry and research institutions are now launching the largest ever effort to develop these solutions,” says Ragnar Tveterås, professor at the University of Stavanger, who coordinates the consortium.

The aim of the project Low-emission value chains for ocean-based aquaculture is to deliver new knowledge and innovations enabling offshore aquaculture to contribute to lower carbon emissions, reduce the environmental footprint to protect marine biodiversity and optimize fish welfare. Offshore aquaculture also entails new challenges that must be solved, such as farming in harsh weather conditions.

Specifically, the project aims to deliver innovations in the following areas:

• Sustainable feed for underwater feeding offshore • Robust post-smolt in closed-containment facilities at sea • Electrification of offshore farming • Control systems for semi-autonomous offshore fish farms • Better fish welfare and increased survival • Improved logistics at sea • Improved competence, knowledge and technology to develop environmentally, economically and socially sustainable value chains for offshore aquaculture Grieg Seafood provides its leading expertise within digital aquaculture to the project.

Parties engaged also include companies like Skretting, SalMar Ocean, Moreld Aqua, FishGlobe, Hauge Aqua and Blue Planet, as well as research institutions such as The Norwegian Veterinary Institute, The Institute of Marine Research, NORCE, Norwegian University of Life Sciences, Norwegian University of Science and Technology, University of Bergen, University of Stavanger, Western Norway University of Applied Sciences, Simula, University of Melbourne and University of Florida.

“To Grieg Seafood, it is evident that our industry must reduce our footprint and improve fish welfare if we are to realize the growth potential we have in Norway through new areas and production methods. A major push like this project, where research institutions and industry collaborate to find solutions, is exactly what we need. Grieg Seafood look forward to contributing with our leading expertise within digitization, but also to learning from other partners. Together, we will realize the potential inherent in offshore aquaculture,” says Ragna Heggebø, Global R&D Manager of Grieg Seafood ASA.