Aker BioMarine : Annual Report

ANNUAL REPORT 2023

Annual Report - 2023

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CHAPTER 1

THIS IS AKER BIOMARINE

Letter from the CEO	4
Company presentation	6
Organization	8
Strategy	17

CHAPTER 2

ENVIRONMENTAL, SOCIAL AND GOVERNANCE

Sustainability in Aker BioMarine	21
Reporting framework and assessments	22
Environment	25
Social	36
Governance	44

CHAPTER 3

FINANCE

Financial statements	48
Board of Directors' Report	51
Consolidated financial statements	56
Notes to the consolidated financial statement	63
Financial statements Aker BioMarine ASA	101
Notes to the financial statements Aker BioMarine ASA	105
Responsibility statement	113
Independent auditors report
List of abbreivations

CHAPTER 1

THIS IS AKER BIOMARINE

Letter from the CEO

Company presentation

Organization

Strategy

1. This is Aker BioMarine

Annual Report - 2023

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Record year of organic growth

Never have we grown more organically in a single year that we did in 2023. We spent 2022 setting the stage for growth, and in 2023, we executed the strongest sales performance in our company's 16-year history.

There's no doubt - we asked a lot of our organization in 2023. We needed to improve and grow, and so we leapt into action mode, finding efficiencies, uncovering operational improvements, and responding to increased customer demand. The result was a smooth transition to an even more optimized and robust Aker BioMarine, which has put us in an excellent position as we embark on 2024.

Major wins put wind in our sails

One of our best success stories of 2023 was the turnaround of our Superba business. The team set the plan, executed it, and delivered some major wins during the year. Together, they drove a 36% year-on- year growth increase, with especially strong development in Asia, Europe, and Australia. In addition, our Superba Boost krill oil product was approved in Australia for medical claims as a dietary supplement, a strong stamp of approval validating the efficacy of Superba's health effects. In addition, we received approval to return to the South Korean market, and we launched our first sales campaigns in September 2023. Our current Superba strategy is to focus on broader sales growth across the Asian markets, where we see China to be an especially exciting market for future growth.

We also experienced solid performance in our QRILL Aqua product category. We had stable

revenue year-on-year and favourable developments in the fish meal and fish oil markets, which has opened more opportunities for krill meal/oil as the answer to the increasing scarcity of fish-based products.

During the year, our consumer goods brand, Lang Pharma Nutrition, experienced positive sales results, with an increase of 14% year-on-year. Key growth drivers were new product launches and generally solid demand for the existing portfolio of products.

In our emerging businesses segment, we launched our protein factory in Ski, Norway, and we announced our re-branded protein product, Understory. This was an important milestone for us, and it marks a step into new and exciting terrain in the nutritional supplement market for the food and beverage industry.

During the year, we implemented the 'Ingredients' improvement program within the company. This program aims to streamline operations, improve margins, cut costs, optimize cash conversion, as well as optimize procurement. In total, this program is expected to have annual recurring effects of more than USD 20 million, the majority of which were implemented in 2023.

Addressing challenges with innovation and determination

Though 2023 was a great year for Aker BioMarine, there are key areas in which we need to drive further improvements. Kori, our own brand in the US retail market, lost its distribution agreement with its largest retailer, which impacted sales significantly. Returning this product to growth will be a key focus for us in 2024.

We had a longer than planned shipyard stay in Q4, which impacted our ability to harvest that

1. This is Aker BioMarine

quarter and had consequences for the total offshore product for the year. However, we have high expectations for 2024. We have also implemented a machine learning and drone strategy that will help us harvest more efficiently. The drone is equipped with sensor technology to map ideal fishing locations. It went into operation at the start of 2024.

When the going gets tough, Aker BioMarine gets going

What we've learned from our recent return to growth is that we are a highly motivated organization, and no challenge is too big when we set our minds to it. This journey is a strong example of our team "grinding through" and living our values every day. Seeing what we are capable of has inspired us to adapt our values, making them more focused and reflective of what we stand for as a company today. Our three core values are now set:

• We think outside the ordinary
• We give trust and take responsibility
• We have passion and grind through

These values have been at the root of our determination in recent years, and in 2023, we benefited from the strong foundation we had built, and we were able to capitalize on the increased market demand while continuing to streamline the way we operate. The pace was fast. The demand was high. And our people showed up and demonstrated that Aker BioMarine is focused, driven, and intent on staying at the top of our game.

Continuing our momentum in 2024

A more sharply focused and flexible Aker BioMarine was the target of our improvement and restructuring efforts in 2023. We re-organized the company into four clear functional areas, each with its own organization, strategy, and P&L accountability. These areas are feed ingredients, human health ingredients, consumer health products, and emerging businesses.

Our work to optimize Aker BioMarine is not over, and we plan to continue streamlining our business and building on the strong growth trajectory from 2023.

This growth wouldn't be possible without the passionate team behind it. I want to thank all of you, at sea and on land, who spend your days finding ways to improve our operations, helping us to think bigger, and exhibiting a willingness to go above and beyond unlike anything I've ever seen before.

Matts Johansen

CEO Aker BioMarine

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1. This is Aker BioMarine

| Company presentation

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About us

Aker BioMarine is a biotech innovator and Antarctic krill harvesting company, created because of our strong belief in the positive health effects of krill.

Almost two decades later, we continue to develop our business as we take care of the ecosystem from which we harvest. Our fully integrated value chain stretches from sustainable krill harvesting in pristine Antarctic waters through our Montevideo logistics hub, Houston production plant, to customers around the world. The company has a strong position in its industry and is the world's leading supplier of krill.

Key non-financial figures 2023

1. Aker BioMarine evaluates the performance based on Adjusted EBITDA. This metric is defined as operating profit before depreciation, amortization, write-downs and impairments, and special operating items. Special operating items include gains or losses on sale of assets, if material, restructuring expenses and other material transactions of either non- recurring nature or special in nature compared to ordinary operational income or expenses.

1. This is Aker BioMarine

| Company presentation

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Aker BioMarine around the world

Aker BioMarine is present all over the world from Australia to the US, with headquarters in Oslo, Norway.

1. This is Aker BioMarine

| Organization

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Company structure

In 2023, Aker BioMarine had two primary business segments: Ingredients and Brands.

The ingredients segment involves offshore	Reporting structure Annual Report 2023
harvesting and production, logistical operations,
and onshore manufacturing and sales of krill-
derived products. These products are distributed
globally to the nutraceutical, pet food, and
aquaculture industries. The Brands segment
focuses on human consumer goods, with Lang
Pharma Nutrition (Lang) and Epion as its two
main components. Lang produces and distributes
private label vitamins and supplements to the
largest retailers in the US market. On the other
hand, Epion is Aker BioMarine's consumer brand
company, which launched its first brand, Kori, in
the US mass market in 2020.

1. This is Aker BioMarine

| Organization

Group Management

As of 31 December 2023

Matts Johansen

Chief Executive Officer (CEO)

Matts Johansen has been CEO of Aker BioMarine since 2015. He first joined the

company in 2009 as Chief Operating Officer. Prior to his career in Aker BioMarine,

Johansen served as the Chief Marketing Officer at Telefónica O2. He studied at

Oslo University College and completed executive education at Columbia

University.

Simon Seward

EVP Human Health and Nutrition

Simon Seward joined Aker BioMarine in 2019. He is responsible for global sales and marketing of the company's Human Nutrition & Health products. Prior to joining Aker BioMarine, he was SVP Sales & Marketing at Algalif and Commercial

Director at NutraQ. Seward has a master's degree in Marketing from Staffordshire

University. From 2024, with the new organizational structure, Seward is CEO for the Human Health Ingredients-segment.

Webjørn Barstad

EVP Offshore

Webjørn Barstad joined Aker BioMarine in 2020 as Executive Vice President

Offshore. Previously, he served as CEO for Lerøy Havfisk and Lerøy Norway

Seafoods, and as COO at Lerøy Seafood Group. Barstad has a master's degree in

International Banking and Financial Studies from HeriotWatt University Business

School, Edinburgh. From 2024, with the new organizational structure, Barstad is

CEO the Feed Ingredients-segment.

Sigve Nordum

EVP Animal Health and Nutrition

Sigve Nordrum joined Aker BioMarine in 2007. He is responsible for the global sales and marketing of krill products for animal and aquaculture markets. Previously, he worked at BioMar and the Norwegian Ministry of Fisheries. He has a master's degree from the Norwegian School of Life Sciences and a PhD from the Norwegian Veterinary College. From 2024, with the new organizational structure, Nordum is CCO in the Feed Ingredients-segment.

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Katrine Klaveness

Chief Financial Officer (CFO)

Katrine Klaveness became CFO of Aker BioMarine in 2018. Prior to joining Aker BioMarine, she spent the first part of her career in McKinsey & Company, followed by several years in senior positions in Aker ASA's investment team and Aker BP. Klaveness holds a master's degree from BI Norwegian Business School.

Tone Lorentzen

EVP Supply Chain

Tone Lorentzen joined Aker BioMarine in 2015 and currently oversees Aker BioMarine's entire supply chain, including global logistics, customer care, production at the krill oil factory in Houston, third party production, product quality and HSSE. Prior to joining the company, she held roles at Nycomed,

Amersham, GE Healthcare and Trygg Pharm. From 2024, with the new

organizational structure, Lorentzen is COO for the Human Health Ingredient- segment.

Hege Spaun

Chief Officer People & External Affairs

Hege Spaun joined Aker BioMarine in 2016. She is responsible for the People and Culture, as well as ensuring that the company is in the forefront of driving the sustainability agenda and transitioning our operations accordingly. She previously held various positions in DNV. Spaun holds a master's degree in Psychology from the University of Oslo.

Trond Atle Smedsrud

EVP Strategic Investments

Trond Atle Smedsrud joined Aker BioMarine in 2015. He is responsible for exploring, securing, and growing corporate investments. Smedsrud has also served as head of Aker BioMarine's Marketing and Innovation department. Previously, he held senior positions at Coca-Cola and PwC. He has a master's degree from BI Norwegian Business School. From 2024, with the new organizational structure, Smedsrud is CEO for the Emerging Businesses-segment.

1. This is Aker BioMarine

| Organization

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Our journey