Grieg Group Annual Report 2021 by GriegGroup

GRIEG MATURITAS - WE ARE GRIEG

Annual Report 2021

GRIEG MATURITAS | ANNUAL REP ORT 2021

Content This is Grieg Reflections From our Chair

Our History

Our Organization

Sustainability

Covid-19

Our companies Grieg Maritime Group

Grieg Shipbrokers

Grieg Logistics

Grieg Seafood

Grieg Investor

Grieg Kapital

Grieg Group Resources

From the Boardroom Directors Report & Group Result 2021

Annual Accounts

Notes

Auditors Report

120

2—3

Elisabeth Grieg C H A I R O F T H E B OA R D

GRIEG MATURITAS | ANNUAL REPORT 2021

REFLECTIONS FROM CHAIR

Dear Colleagues, Stakeholders, Partners, and Others

When writing this, Ukraine has been at war with Rus-

GRIEG MARITIME GROUP

sia for over four weeks. Three million refugees have es-

Early in 2021, Grieg Star Group renamed its Group of

caped to Europe, and the uncertainty they are facing

companies to Grieg Maritime Group. Grieg Green was

is unbearable. The invasion of Ukraine is deeply sad-

reorganised, tied closer to Grieg Maritime Group, and

dening, and our thoughts go to all innocent people who

Grieg Edge has further strengthened its position, in-

are and will be affected by the invasion and its conse-

vesting in maritime start-ups, and developing ongoing

quences. We trust the international community to find

projects such as M/S Green Ammonia together with

a solution to the crisis. I’m proud that we in times like

Wärtsila. 2021 did not only mark a new group set up,

these contribute, both financial and as neighbors in

but the company also delivered its most significant fi-

Bergen to Ukrainian refugees.

nancial result in a decade.

For the Grieg Group, the war affects us in many ways.

GRIEG SEAFOOD

Operational costs increase as oil prices continue to

Struggle and hardship defined the beginning of 2021,

surge. For other parts of the Group, economic sanc-

and with Covid-19 and high operational costs, Grieg

tions influence operations. Finally, the uncertainty of

Seafood performed below expectations. At the end of

the world markets affects us all, and we are monitoring

2021, with nearly all Covid-19 restrictions lifted, the

the situation closely through the Grieg Group Emer-

company could release a harvest number they have

gency Response Group.

never reached before. Grieg Seafood has managed to

2021 IN THE GRIEG GROUP

turn the company around, reaching several goals of the company’s 2025-strategy.

2021 was a record year overall for the Grieg Group. Even though the pandemic still affected us throughout the

GRIEG INVESTOR

year, all businesses have performed very well. It is safe

Grieg Investor reached a true milestone the past year,

to say that when leaving 2020 behind, these results

securing over 110 billion under advisement across 130

were not at all on our minds. Luckily, markets have im-

customers. A large capital base provides the company

proved, and operations are more streamlined, securing

with highly skilled leadership and reasonable pric-

solid financial results across all companies in the Grieg

ing-benefits for their customers. A strong focus on

Group. Thanks to our dedicated colleagues, we face a

sustainability and, at the same time, generating a good

future of development and financial performance fol-

return on investment is Grieg Investor’s main priority.

lowing our Group strategy. THIS IS GRIEG

4—5

GRIEG MATURITAS | ANNUAL REPORT 2021

2021 has proven another successful year across the en-

step of the way, I’m confident that we all contribute to

tire organisation. It is safe to say that we are proud.

delivering on strategic priorities for the future. Luckily, we are well set for the days to come.

GRIEG LOGISTICS The New CEO, Stig Trygve Andersen, has worked with

SUSTAINABILITY – LICENSE TO OPERATE

a new organisational setup to restructure the business

Climate change is threatening nature, wildlife, and

to secure digitalisation and technology as a foundation

humans. If we are to reach the 2030-agenda, we are in

for future business. As a result, Grieg Connect has se-

a hurry. We believe we are part of the solution in the

cured essential projects throughout the year and is now

maritime industry, but we need partnerships to suc-

controlling 80 percent of Norwegian ports and termi-

ceed. We are dependent on innovating sustainable

nals. Grieg Logistics delivers a net-zero result, focusing

solutions together with our partners. Authorities must

on further investments in Grieg Connect to ensure an

support these partnerships and drive change through

even more robust technical approach to the company.

regulations and sector-specific initiatives nationally and globally.

GRIEG KAPITAL Grieg Kapital has, since its establishment in 2018,

We need clear national and international targets. We

worked to ensure a solid financial position for the years

need national and international politicians who are

to come, and its success has been an impressive jour-

bold enough and willing to use all tools available, in-

ney. In 2021 we strengthened the team by hiring a new

cluding support for innovation, green funding, and

investment manager and secured solid earnings from

sector-specific innovation.

our investments and funds. In addition, Grieg Maturitas is hiring a new Chief Investment Officer who will

OUTLOOK

also be the managing director of Grieg Kapital.

It is impossible to predict the future, but we know uncertainties will continue to arise worldwide. The war

GRIEG SHIPBROKERS

in Ukraine affects markets and operations, but, at the

For the first time in a very long time, Grieg Shipbrokers

same time, there is no doubt that some of our compa-

can proudly present outstanding numbers. In 2021,

nies are witnessing increased income as markets are

the company restructured its Asia activities, and along

under much pressure.

with good markets in both bulk and container, 2021 became an excellent year for Grieg Shipbrokers. The new

I genuinely believe our people are essential in building

management team has proven worthy by turning the

our success. On behalf of the Grieg Maturitas board,

company around with dedicated colleagues in Oslo,

I want to sincerely thank everyone who impacts our

London, and Bergen.

joint accomplishment every day. I am grateful for all our dedicated colleagues across companies, all set to

Witnessing strong companies aiming to improve every

THIS IS GRIEG

seize the opportunities ahead of us.

6—7

Our History Grieg Group The Grieg Group derives from a long and proud maritime tradition.

In 1884, Joachim Grieg established a shipbroking firm

ment Goals in our business strategy and revised our

in Bergen, where the company continued to develope

business strategy to meet the future as more resilient,

during the two world wars. In 1960 Per Grieg sr. joined

more innovative and more sustainable. The ocean con-

the company and organized it into a specialized busi-

nects our businesses, our people, our future, and our

ness. Today the Group is owned and led by 4th and 5th

past. For more than 137 years, we have lived by and

generation Grieg and consists of several companies

with the ocean.

worldwide. Our people are our most valuable resource, and we The Grieg Group operates within seafood, shipping,

believe they are essential to building our success. Our

shipbroking, maritime innovation, logistics, and in-

1649 employees operate in 8 countries, from Norway

vestments. Across all businesses, we shall create last-

(headquarter) to the rest of Europe, USA, Canada and

ing value through competence, experience and com-

Asia.

mon efforts. The Grieg family owns the Grieg Group through their Our mission is to restore our oceans, and we are com-

holding company, Grieg Maturitas (75%), and the Grieg

mitted to the UN Sustainable Development Goals. In

Foundation’s nonprofit organization (25%). Operating

2019 we incorporated the UN’s Sustainable Develop-

revenue in 2021 was MNOK 7392.

1884

Joachim Grieg establishes ship broker business in Bergen.

1961

1969

Grieg Logistics established as a separate business unit.

AS Star Shipping established.

1984

1992

100 years! Restructured as the Grieg Group.

GRIEG MATURITAS | ANNUAL REPORT 2021

1998

Grieg Seafood established.

2002

Grieg Investor established.

1994

Grieg International established.

Grieg Foundation established.

1999

4th generation Grieg take over.

2008

Star Shipping becomes Grieg Star Shipping and joins the Grieg Group.

2007 Grieg Seafood gets listed on the Oslo Stock exchange.

THIS IS GRIEG

2010 Grieg Green established.

2014

The Grieg Group celebrates 130 years anniversary!

2017

2020

2018 Grieg Kapital established.

G2Ocean established, joint venture between Grieg Star and Gearbulk.

Grieg Star Group reorganized into Grieg Maritime Group.

2019

Grieg Connect established.

2021

Grieg Group spoke on plastic reductions at UN Roundtable

8—9

Our Organization

1 649

7 392

1 234

31 .1 2 . 2021

2021 · MNOK

Employees

Operating Revenue

O P E R AT I N G R EV E N U E 2021 BUSINESS AREAS

Profit after tax

T U R N OV E R B A S E D O N O W N E R S H I P 2021 BUSINESS AREAS

Grieg Maritime Group

Grieg Seafood

Grieg Maritime Group

Grieg Seafood

Grieg Shipbrokers

Grieg Investor

Grieg Shipbrokers

Grieg Investor

Grieg Logistics

Grieg Kapital

Grieg Logistics

Grieg Kapital

GRIEG MATURITAS | ANNUAL REPORT 2021

PURPOSE

We will restore our oceans

VISION

Create lasting value through competence, experience and our common efforts

O U R VA L U E S

Solid

Proud

Open

Commited

We contribute to a stable economic foundation and thus ensure business continuity.

We contribute to the welfare of our society, nationally and internationally.

We are honest, exchange ideas and seek to understand and learn from our colleagues.

We care about the job we do, work environment and the people around us.

OUR CORE BUSINESSES

Shipping

THIS IS GRIEG

Aqua

Investment

Management

10 — 11

Board of Directors

Elisabeth Grieg

Per Grieg jr.

CHAIR

B OA R D M E M B E R

Long-term leadership experience from the private

MBA from INSEAD and a master’s degree in marine

sector and other organizations. Holds a degree from BI

technology from NTNU. Several years of experience

Norwegian Business School and the University of San

from the maritime sector and founded Grieg Seafood

Franscisco. Chair of the board at Norled, and member

ASA in 2002. Holds the position as Chair of the board

of the board at Talent Norge, Grieg Foundation, G2

at Grieg Seafood. Board member of Bergen Chamber of

Ocean and Grieg Maritime Group. First female presi-

Commerce and Industry and Proximar Seafood.

dent at the Norwegian Shipowner’s Association.

Camilla Grieg

Elna-Kathrine Grieg

B OA R D M E M B E R

MBA with a major in finance from the University of San

Degree from BI Norwegian Business School and

Francisco and is a Certified Financial Analyst (CFA).

has several years of experience from the maritime

She is Chair of the board at Grieg Maritime Group and

industry. Holds different board positions within

has several years of experience from shipping and the

the Grieg Groupsuch as Chair of the board at Grieg

maritime industry. Chair of the board at GC Rieber and

Foundation, and as board member of Grieg Kapital and

leader of the election committee at DnB.

Grieg Logistics. She is also a board member of Family Business Norway.

GRIEG MATURITAS | ANNUAL REPORT 2021

Nicolai Hafeld Grieg

Nina Willumsen Grieg

B OA R D M E M B E R

Degree in International Business from the University

Holds a degree in Industrial Economy and Technology

of Edinburgh and the University of Hong Kong. Has several years of experience within shipping and logistics. He is head of Grieg Edge, part of Grieg Maritime Group, and board member at Grieg Foundation, Grieg Investor and Rem Nor AS.

Management from NTNU. Several years of experience from the maritime sector, specializing in seafood and shipping. She works in Grieg Seafood as Regional Director Grieg Seafood Rogaland, and holds the position as board member at Ystholmen Felles.

Knut Nesse

Rolv-Erik Spilling

B OA R D M E M B E R

MBA from Norwegian School of Economics and is

Holds a degree in Mathematics from NTNU, and is a

CEO at Akva Group. Has several years of experience

senior executive, venture investor, and serial entre-

from the maritime sector specializing in aquaculture.

preneur. Co-founder of the SW company Gture and

Joined the board of Grieg Maturitas in 2019. Holds

co-founder and Chair of the board at the early phase

several other board positions, and is Chair of the board

investment company Gvalueinvest. Joined the board

at Desert Control AS and Helgeland Plast AS.

of Grieg Maturitas in 2019.

THIS IS GRIEG

12 — 13

The Owner Company Grieg Maturitas Grieg Maturitas is ensuring the owners’ short- and long-term interest in the Grieg Group.

Administration

Elisabeth Grieg

Wenche Kjølås

CHAIR

CHIEF FINANCIAL OFFICER

Long-term leadership experience from the private

MSC in Business Administration and Economics

sector and other organizations. Holds a degree from BI

from Norwegian School of Economics. Experienced

Norwegian Business School and the University of San

CEO and CFO with a demonstrated history of working

Franscisco. Chair of the board at Norled, and member of

with logistics, shipping, seafood and supply chain

the board at Talent Norge, Grieg Foundation, G2 Ocean

industry. Chair of the board at Keolis Norge AS and

and Grieg Maritime Group. First female president at the

MagseisFairfiled ASA, and board member at Slettvoll

Norwegian Shipowner’s Association. Since August 2021,

AS and Grieg Logistics AS.

she has been the CEO of Grieg Maturitas after Sirine Fodstad left the position.

GRIEG MATURITAS | ANNUAL REPORT 2021

Gry Larsen

Marte Leirvåg

L EA D E R S U STA I N A B I L I T Y A N D P U B L I C A F FA I RS

C O M M U N I C AT I O N S M A N AG E R

Former Secretary General at CARE Norway. Several years

BA in Political Science from the University of Bergen and

of experience from Norwegian Politics, serving as both

NTNU. Specialized in foreign policy, organizational de-

president of the Norwegian Labour Youth, State Secretary

velopment and communications. Elected representative

in the Ministry of Foreign Affairs and Political Advisor to

in the City Council of Bergen and has years of experience

the Foreign Minister from 2005-2013. Board member at

working as a Communications Advisor with companies

Grieg Foundation..

across several industries.

THIS IS GRIEG

14 — 15

A Tradition of Giving Back Grieg Foundation Grieg Foundation is a celebration of our responsibility to create a more compassionate society. Our way of saying that there is more to life than business.

Our foundation was established in 2002. Grieg Foundation owns 25% of the Grieg Group. For generations, the Grieg family has wanted to create strong, meaningful change by giving back, by supporting humanitarian, social and cultural aspects of life, and by working in partnerships, encouraging and supporting innovative projects. OUR PRIORITY All

our

work

anchored

the

Sustainable

Development Goals. In 2020, Grieg Foundation distributed NOK 47 859 800,- and allocated NOK 84 199 800,-. I N G V I L D H E STA D, M A N AG I N G D I R E C TO R

We believe that local engagement sparks improvement in people’s lives. Our role is to empower visionaries, talents and individuals with ideas and a strong sense of purpose and commitment.

Access to quality education is our main priority. SDG 4, inclusive and equitable quality education, and SDG 5, gender equality is at the heart of our purpose. In addition to education projects in Zambia, Malawi, Rwanda, Eswatini, Costa Rica and Brazil, Grieg Foundation prioritised support to several projects in Bergen that help young people with multicultural backgrounds as well as school dropouts to get an education, find work and become active members of society. THE OCEAN The ocean connects our businesses, our people, our future and our past.In line with SDG 14 to sustainably manage and protect marine and coastal ecosystems

GRIEG MATURITAS | ANNUAL REPORT 2021

from pollution, our main project is “Clean ports, clean

patients with high-risk breast cancers and improve

oceans” with WWF. The three-year project aims to

survival outcomes. In 2021, we funded a research

reduce the flow of plastic waste in the Philippines by

project that conducted whole genome analysis of the

improving waste management in ports. The Grieg

tumour tissue from a selected group of patients to

Group companies will contribute with their cutting-

identify specific gene mutations that predict response

edge expertise in this vital project. Grieg Foundation

or lack of response to anti-hormonal treatment before

also completed our project with the Norwegian Refugee

starting therapy at Haukeland University Hospital.

Council to create a green shift in humanitarian aid. We are a small foundation with big ambitions. The HEALTH Grieg

Foundation

employees within the Grieg Group are our most medical

valuable resource. Their hard work and daily efforts

research that can have a wide-reaching impact. We

make it possible for Grieg Foundation to make a

are aligned with SDG 3 to ensure healthy lives and

difference. Together we create change. This is our

focus on women’s health, cancer and cardiac disease.

joint accomplishment. We do not believe profit builds

Biomarker analysis can reduce chemotherapy for

success. People do.

THIS IS GRIEG

supports

innovative

16 — 17

Sustainability at Grieg We Will Restore our Oceans

At the Group level, we have defined SDG 8, 16, and 17 as our license to operate or foundation. These goals represent the groundwork for how we run our businesses, focusing on employee health and wellbeing, inclusive economic growth, transparency, and accountability, and partnering to achieve a greater impact on the sustainability challenges facing the industries in which we operate. In addition to this foundation, we have set ourselves five impact goals, or stretch goals, relating to the areas where we can make a difference and to help us focus our efforts in areas relevant to our business and our stakeholders. These goals relate specifically to SDG 4, 5, 9, 13, and 14. G RY L A R S E N L E A D E R S U STA I N A B I L I T Y A N D P U B L I C A F FA I R S

We have set clear ambitions for all our prioritised SDGs. In 2021 we revised our objectives and KPIs at the Group level. This was done in an inclusive process through the Grieg Group Sustainability Advisory Committee (SAC),

In the Grieg Group sustainability and our commitment

consisting of members of the top management team

to the SDGs is integrated into our business strategy.

from each Grieg company. The Grieg Group companies

For us, the 17 SDGs are interdependent and equally

were also consulted individually. In December, the

important. However, some of the sustainability themes

Board of Grieg Maturitas approved the new objectives

are more relevant to the businesses we operate within,

and KPIs. The operationalising of the objectives and

and it has therefore been natural for us to choose SDGs

KPIs is delegated largely to each company. At the

where we can have the most significant impact and

Group level, the strategy and sustainability objectives

where we also have the largest challenges at an industry

are monitored by the Board, which has the overall

level.

responsibility for ensuring strategic objectives are met. Progress is presented annually.

GRIEG MATURITAS | ANNUAL REPORT 2021

Doing good is the obvious business opportunity Using the UN Sustainable Development Goals (SDG’s) as our framework, we have revised our business strategy to meet the future as a more resilient, innovative and collaborative group of companies.

Another important priority in the Grieg Group in

level. Partnerships between businesses, governments,

2021 was establishing a Human Rights Policy. Our

NGOs, and civil society are equally important in

commitment to respecting international human

ensuring sustainable development and shared value.

rights is anchored in international human rights and

In 2021 several existing and new partnerships have

labour standards, including those expressed in the

been developed. Our membership in the UN Global

International Bill of Human Rights and the Declaration

Compact is of great value. The Grieg Group is also a

on Fundamental Principles and Rights at Work. We are

signatory of the UN Global Compact’s Ocean Principles.

committed to the OECD’s guidelines for Multinational

In 2021 we were part of several initiatives in the UN

Enterprises and the UN Guiding Principles on Business

Global Compact, including the Young Sustainable

and Human Rights (UNGP). Respecting, promoting,

Innovators Program. Over a ten months period, young

and supporting human rights is fundamental to how

professionals worldwide participated in the program

all companies conduct their business within the Grieg

and developed solutions to unique SDG-related

Group, and the policy outlines our commitment, our

challenges within their companies. Kjerstin Hernes

approach, and our responsibility in respecting human

and Ragnhild Høvik from Grieg Maritime Group were

rights in our operations, our value (supply) chain, and

selected to showcase their solutions to an international

in the communities where we operate.

panel. You can read more about our commitment to the UN Global Compact’s ten principles in our

In our sustainability work, partnership is key. We will

Communication of Progress report.

not reach the ambitious targets of the 2030 Agenda without working together internally in the Grieg

One of the main priority areas for our work on SDG 14

Group, with stakeholders along the value chain, across

is contributing to stopping plastic pollution. Within

industries and on a local, national, and international

the Group and in the companies, we work on reducing

THIS IS GRIEG

18 — 19

plastic pollution in different ways. In December 2020,

OUTLOOK: 2021 AND FORWARD

we decided to sign the Business call for a UN treaty

We will continue our journey to ensure sustainability is

on plastic pollution. We believe that by harmonising

firmly embedded at the core of our business across the

regulatory standards, mandating the development of

Group. Our sustainability agenda has been a successful

national targets and action plans, defining common

catalyst for collaboration internally between Grieg

metrics and methodologies, and supporting innovation

companies and externally with partners who share our

and infrastructure development, a UN treaty on plastic

commitment to sustainability. To further strengthen

pollution can help drive the transition to a circular

our work, we will strengthen our internal reporting and

economy for plastic — at speed and scale. Furthermore,

further develop our internal and external partnerships

we continued our three-year partnership with WWF

to take further steps in the realisation of our ambitions.

through Grieg Foundation to identify ways to reduce

A critical part of our work will be to continuously

plastic pollution globally. The project aims to reduce

innovate to meet the challenges of the SDGs.

waste by 50% in three ports in the Philippines, identify ways of scaling efforts globally, as well as identify new

Climate change is the biggest challenge of our time.

business opportunities and partnerships.

At the Grieg Group we will contribute to achieving the goals set out in the Paris Agreement. We will do this by reducing emissions from our businesses and by innovating new solutions that contribute to lower emissions and zero emissions. Reducing our own emissions will continue to be a key priority for the Grieg Group and our companies.

Grieg Group Sustainbility Foundation Goals Be in the lead of the industries in which we operate by: • Fostering a great, inclusive working-environment, with sound economic growth • Creating an inviting, open-minded, transparent and inclusive business-spirit utilizing the strengths of our core business and competency, be an engaged and committed enabler of the SDG 8. Grieg Group´s shared value approach defines the compass by which we navigate when doing business across the world. By spreading these in the areas we work we will continue to enable inclusive, just and accountable business relations and advocate for strong societies and institutions.

We will strive to be innovative to meet the challenges of the SDGs, through new partnerships and cross sector cooperation. We will do this by being honest, exchange ideas and seek to understand and learn from our surroundings. We have an open-minded business approach and strive to create room for action and possibilities, which will enable strong partnerships with both public and private parts of society.

GRIEG MATURITAS | ANNUAL REPORT 2021

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Grieg Group Sustainbility Stretch Goals Employees shall be provided with learning opportunities that promote competence and are aligned with their personal career goals. Each employee should possess the skills and knowledge required to enable Grieg to be in the forefront of the industries in which we operate. Our strategy for competence development shall be aligned with company level business strategies and be based on market trends and customer expectations. We will strive to be in the forefront on diversity within the businesses we operate. We will work towards gender parity at all levels of the organizations in the Group, both for onshore and offshore operations. And we will also promote gender equality and diversity towards business and supply chain partners.

To become a positive driving force for sustainable development we must think big and bold and create a purpose-driven organization with a culture of innovation. To achieve this, we will promote collaboration within and across all companies in The Grieg Group, inspiring, challenging and learning from each other. We will also seek cooperation both among our competitors and our existing partners. We have a vision of zero net emissions operations in all industries in which we operate. We will also continue to be an advocate for zero emissions operations in all relevant industries and increase awareness internally and in dialogue with key stakeholders.

As with climate action, we will work towards a zero-effluent vision. All companies within the Group will work towards this target, but businesses in certain industries will be expected to take greater steps where the impact is greater. Our impact on marine resources will be carefully managed and we will be open and transparent about this impact, as well as the results from the efforts we make to reduce it.

THIS IS GRIEG

20 — 21

Working Together in Times of Unprecedented Change At the beginning of the Covid-19 pandemic in 2020, the Grieg Group successfully formed an Emergency Response Team with members from all Grieg Group companies.

C H E R I N V E RV I K LAWYER, GRIEG GROUP RESOURCES, AND LEADER OF THE EMERGENCY R ES P O N S E T E A M

M A RT E L E I RVÅG C O M M U N I C AT I O N S M A N AG E R

GRIEG MATURITAS | ANNUAL REPORT 2021

“As a result of the Covid-19 pandemic, the Grieg Group has established a strong Emergency Response Team that will be ready to handle other potential challenges that we may meet in the future. In addition, the pandemic has strengthened the bond across the Group, showing us all that we are stronger when we work together, sharing our competence and skills across companies.”

The team continued their work in 2021 and met reg-

monitor the situation in Europe, taking on a different

ularly to provide leaders and CEOs within the Grieg

role than the team had during the pandemic but still

Group with necessary communication and guidance.

doing widely important work. The crisis, which main-

Today and in the future, the team remains prepared to

ly affects our shipping activities through Grieg Mari-

guide us through unforeseen situations that affect the

time Group and has a significant impact on both Grieg

world and our businesses.

Shipbrokers and Grieg Seafood. Moving forward, we will follow the situation closely, and do our very best

As covid restrictions lifted, the focus of the team shift-

to help where we can, and to solve the challenges the

ed from managing the pandemic to considering all the

situation imposes on our different business areas.

knowledge we have gained and using it as inspiration for how we want to work moving forward. We have in-

Although the pandemic taught us alternative ways

creased our collaborative skills and found new ways of

of working, we are delighted to finally see each oth-

working together and communicating even though we

er, have physical meetings, share lunches and laughs

work from home, from different offices, cities, or coun-

and to once again have a coffee break together with a

tries.

colleague. The past two years of crisis have taught to us that things may change in an instant, and that al-

Just as we thought the GG Emergency Response Group

ternative solutions always exist when you need them.

could take a well-deserved break, the world faced a new

Having the Grieg Group Emergency Response team to

crisis. The war in Ukraine has impacted all of us, affect-

guide us, and working together across companies will

ing businesses and operations. The GG Emergency

be a great asset in the future.

Response Group is once again meeting regularly to

THIS IS GRIEG

22 — 23

Group Structure

Grieg Maturitas AS

Grieg Maturitas II AS

Grieg Foundation

Grieg Kapital

Grieg Aqua

Grieg Group Resources

Grieg Investor Grieg Investor Holding AS Grieg Investor AS

Grieg Kapital AS

Grieg Aqua AS

Grieg Holding II AS Rensefiskgruppen AS Grieg Gaarden AS Grieghallen Parkering II AS

Grieg Seafood

Silves Odissey Lda AS Nestun Uldvarefabrik

Grieg Seafood ASA Grieg Seafood Rogaland AS Grieg Seafood Canada AS Grieg Seafood Finnmark AS Grieg Seafood Hjaltland UK Ltd2 Grieg Newfoundland AS Grieg Seafood Norway AS

GRIEG MATURITAS | ANNUAL REP ORT 2021

Grieg Shipbrokers Grieg Shipbrokers KS

Grieg Logistics Grieg Logistics AS

Grieg Maritime Group Grieg Maritime Group AS

Grieg Shipbrokers

Scandinavian Harbour

Grieg Edge AS

Valuation Services AS

Service AS

Grieg Green AS

Grieg Shipbrokers Ltd

Mosjøen Industriterminal AS

Grieg Shipholding AS

Grieg Shipbrokers Asia AS

Grieg Strategic Services AS

Grieg Shipowning AS

Grieg Connect AS

Grieg Star AS

AS Joachim Grieg & Co

Grieg Star 2017 AS Grieg Star Bulk AS Grieg Star Bulk Oh Pool AS Grieg Star Bulk Pool AS GriegMaas AS G2Ocean Holding AS1

G2Ocean Holding AS is owned 35% of the Grieg Group Grieg Seafood Hjaltland UK Ltd was sold December 2021 For more information see note 8 and 9 1

THIS IS GRIEG

24 — 25

Grieg Maritime Group CEO Comment

Whilst the conflict has not directly affected our business operations, we are concerned about the effects of energy prices and the destabilisation of Europe from a broader perspective in 2022 and beyond. We continue to monitor this situation closely. Casting our gaze back to 2021, it has been another eventful year. We have dedicated ourselves and our strategy to support the UN Sustainability Goals for some years now. We saw an opportunity to reshape our business and widen our scope through this sustainability-based strategy work. 2021 was the first full year since we renamed the comM AT T H E W D U K E C E O, G R I E G M A R I T I M E G R O U P

In this annual report, we naturally focus on 2021. However, in writing this in March of 2022, we are deeply saddened to see war in Europe, with a shocking humanitarian crisis unfolding in Ukraine. We sincerely hope a peaceful solution will be found soon.

pany “Grieg Maritime Group”, and we have worked systematically to strengthen each of our business units. To deliver on our strategy, we need to have the best talent. So we have focused on strengthening our people and culture, following a pioneering “Sustainable Coworkership” program. In a world of rapid change, we need to make the right decisions and learn quickly from our mistakes. We believe that having a diverse culture that encourages debate and positively challenges the best solutions and business opportunities is better than a pure command-and-control structure. 2021 was a strong year with solid performance across the group. We saw a strengthening of our core Open Hatch market through our Joint Venture, G2 Ocean. In addition, we successfully reorganised Grieg Green

GRIEG MATURITAS | ANNUAL REPORT 2021

to account for changing market conditions. Grieg

The general availability and costs of spare parts push

Star provided world-class Ship Management services,

our OPEX upwards. Every step of the way, our team

bringing several vessels back under internal manage-

work hard to find the best possible and most effective

ment.

solutions.

Grieg Edge successfully signed multiple new business

Typhoon Rai hit the Philippines at the tail end of the

contracts and has been awarded green funding. Our

year and caused significant harm to people and their

Ship Owning team timed the exit of our conventional

homes. Our employees and the business have provided

bulk investments to deliver profit. With excellent sup-

direct support to the communities affected. A special

port from our corporate team & IT, we have modern-

fund has been utilised to provide extra support to our

ised and digitalised several critical lines of business

crew and their families.

applications. As a result, we are making great strides towards being a truly data-driven business.

In this background and continuing challenges from the pandemic, we thank the professional dedication of our

This performance is also reflected in our financial

employees, partners, board and owners.

results. Grieg Maritime Group’s operating profit increased to USD 53.7m in 2021, with a profit after tax

Together, we have led Grieg Maritime Group back into

of USD 38.0m. This is our strongest performance for

profitability and provided an exciting opportunity for

many years, and we use the opportunity to strengthen

further delivering on our strategy in 2022: Build new

our foundations, providing a solid platform for future

sustainable business, ensure world-class operations,

growth.

take a leading role in the maritime green shift, and implement clear ownership strategies.

Despite a commendable performance, there remained plenty of unpredictability and surprises in 2021. We

Together, those four pillars support our end goal: To

continue to face Covid related challenges on our ships

create maritime solutions for a better future.

and are grateful that the vast majority of the crew are now fully vaccinated. Crew changes remain expensive, complex and tiring for our loyal sailors. We face off-hire situations in port operations and when waiting for Dry Docking. Our companies

26 — 27

People at Grieg Vilde M. Lyngstad Hageselle

GRIEG MATURITAS | ANNUAL REPORT 2021

If someone asked Vilde Hageselle five years ago what her dream job was, the answer would be working with sustainability in the shipping industry. Today that is exactly what she does – and she has been named one of this year’s 10 Women to Watch in Shipping for doing so.

“IF YOU WORK HARD ENOUGH, YOU CAN ACHIEVE ALMOST ANYTHING” “After studying marine biology and then working a few years in a shipping company, I had my eye on Grieg Green. I’ve always thought that if you work hard enough for something, you can achieve almost everything. So I put my effort into it, and here I am,” says Vilde. As a Market and Environmental Analyst at Grieg Green, her job entails, among other things, analysing the market, researching new services for the company, and staying updated on the sustainability field. “It’s an exciting and rewarding job. I get to work with highly skilled people, and I gain insight into the environmental issues we as a society are up against. Currently, she is contributing to a collaborative project between the Grieg Foundation and the World Wide Fund for Nature (WWF), entitled “Clean ports, clean oceans. Improving port waste management in the Philippines”. The project aims to reduce plastic waste by 50% in at least three Philippine ports by 2023. THE RIGHT SPIRIT Speaking with Vilde, it doesn’t take long before you pick up on her energy level. She describes herself as a morning person, often getting up before 6 AM to get the most out of the day.

Off-topic My role model: It’s a bit cliché, but I have to say my mum and dad. It’s because of them I have an interest in the maritime industry. The most important advice I’ve received: Just do your best – and even if you screw up, no one will die. A colleague gave me that advice, and I use it to remind myself that it’s ok to make mistakes. Gadget or app I can’t live without: Spotify – I listen to music constantly. Favorites are Rüfus Du Sol and Dagny. If I was prime minister for a day: I would give students more money, increase the penalty for animal abuse, and invite myself to visit Angela Merkel. If I could live another person’s life, it would be: I’d like to be a cancer researcher. Molecular cell biology was my favorite subject in university, and I think it would be a challenging but rewarding job.

But in addition to getting in the hours of the day, she seems to have an unusually high work capacity. So, what’s the secret? “My attitude has always been that working hard and having the right spirit and work ethic will get you where you want to be. I get my drive and energy by

Vilde M. Lyngstad Hageselle

being open and sharing of myself, and I try to provide

• 28 years old

some fun and humor during the workday. I think I’m able to motivate others and contribute to a good work environment.”

• Bachelor’s degree in Marine biology from Heriot-Watt University in Edinburgh • Grieg Green, located in Oslo

10 WOMEN TO WATCH IN SHIPPING Vilde’s skills and spirit are being noticed. This year, she has been named one of 10 Women to Watch in Ship-

Our companies

28 — 29

ping – an award hosted by Nor-Shipping, YoungShip,

Here, she is responsible for the organisation’s social

and WISTA (Women’s International Shipping & Trad-

media, sponsorships, and branding. She has also start-

ing Association).

ed a monthly column called “Friday cuppa coffee,” where she invites leaders from different areas in the

Among the criteria for the nomination are ambition

industry to participate.

and passion for the maritime industry and its future development, having demonstrated the ability to in-

“I consider myself very lucky getting to know so many

spire others, and a willingness to teach and share

talented and accomplished people and contributing to

knowledge with others.

exciting content and engagement for YoungShip. It’s a good feeling, helping to create a platform for young

Vilde is also the Head of Communication in Young-

people where they can meet like-minded people, build

Ship, a professional non-profit organisation for young

a network, and get friends and memories for life.”

people working within the global maritime industry – for which Grieg Group has sponsored several events.

GRIEG MATURITAS | ANNUAL REPORT 2021

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30 — 31

Grieg Shipbrokers Grieg Shipbrokers was established in 1884 as the first company in the Grieg Group. We provide a full range of services, covering every aspect of vessel financing, contracting, sale and purchase, chartering and operations, backed by rigorous research and analysis.

Grieg Shipbrokers achieved a solid financial performance in 2021 thanks to our dedicated colleagues and strong shipping markets. With revenue growth of more than 60% last year turned out to be our most profitable year in the company’s 138 year-long history. The company is well-positioned for sustainable growth within our core segments. We continue our endeavors to build a strong organization and remain committed to attracting talented individuals who will complement our existing teams. I am confident that Grieg Shipbrokers is in a good position, both financially and organizationally, to continue M O RT E N M Ü L L E R CEO GRIEG SHIPBROKERS

GRIEG MATURITAS | ANNUAL REPORT 2021

to provide value-added shipbroking and financing services for the coming years.

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32 — 33

People at Grieg Marit Eiken Fosse

HOPING TO INSPIRE WOMEN TO CHOOSE THE MARITIME INDUSTRY “Coming from Ulsteinvik, a town more or less built on the shipyard industry, the maritime industry has al-

Despite it being an extremely male-dominated business, Marit knew early on that she wanted to be a shipbroker. Last summer, she landed her dream job and is the only woman in her department.

GRIEG MATURITAS | ANNUAL REPORT 2021

ways been an obvious career option. But the engineering jobs, like ship design, were never really something I considered: I love working with people, and I love negotiating,” says Marit Fosse. Already at the start of her shipping management studies, she had decided that being a shipbroker was what she wanted.

When mentioning her ambitions to a school friend who happened to work at Grieg Logistics, she informed her about an open position at Grieg Shipbrokers. In June last year, Marit started her new job. “This early in my career, it’s all about building trust and a network, and I definitely feel like I’m well on my way. I love the fact that we operate in an ever-changing market, and that every day is different.” INSPIRING DIVERSITY Marit hopes that she can inspire more women to choose a job in the maritime industry, especially as shipbrokers. Out of about 40 employees in Grieg Shipbrokers, only three are women. But she emphasises that it’s not because the company doesn’t focus on diversity. “I definitely get the impression that Grieg has equality and diversity on the agenda and wants to recruit more women. And the work environment here is great – we’re a very close-knit group, and I really feel welcome and that I fit in,” she says. TRAINEE BLUE SEA Outside of work, Marit is a part of the network Trainee Blue Sea, arranged by the foundation Maritime Bergen, of which several of Grieg Group’s subsidiaries are members. The network aims to lower the threshold for maritime companies to hire new graduates by assisting with recruitment and offering a 12-month tailor-made

Off-topic My role model: My mom. She’s hardworking and doesn’t give up until she’s achieved the optimal result. She’s imprinted in me to never do anything half-heartedly. The most important advice I’ve received: Go hard or go home. I used to be a gymnast, and that’s a common expression in the community. Gadget or app I can’t live without: Snapchat. That’s where I keep in touch and stay updated on my family and friends that live far away. If I was prime minister for a day: I would implement measures for making Norwegian shipyards more globally competitive. If I could live another person’s life, it would be: Queen Sonja. Because King Harald’s mother died quite young, Queen Sonja shaped her own role as Crown Princess. I think that’s pretty cool. She also gets to see and experience Norway and our culture, politics, and people in a unique way.

trainee program. The network also has regular events for the trainees, covering different topics within the industry, such as sustainability and the green transition in the maritime sector. “The Trainee Blue Sea network gives new graduates and newly-hired a platform for exchanging knowledge and experience and learning about career possibilities and the different maritime companies in the area. And not least, you meet other young people in the industry and get new friends and business contacts. It’s so val-

About Marit Eiken Fosse • 26 years old • Bachelor’s degree in shipping management from NTNU Ålesund • Grieg Shipbrokers, located in Bergen

uable!”

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34 — 35

Grieg Logistics Grieg Logistics is an international provider of ships services, advanced digital systems, and industrial terminal operations in Norway and other countries. They operate within energy, shipping, maritime and general industries.

We have made some strategic changes in our company. To maintain our status as a national maritime technology provider to ports and terminals, we have decided to rearrange our business to meet the future as more robust and current. Grieg Connect, the vital core of our overall business, is now in a scale-up position, and we have invested both capital and time in the respected company during 2021. Grieg Connect is now at the core of our business, ensuring that we apply technology to every delivery from Grieg Logistics. The foundation of our business strategy is embedded in the UN Sustainable Development Goals. However, in addition to the Grieg Groups’ foundation and stretch ST I G T RYG V E A N D E R S E N C E O, G R I E G LO G I S T I C S

In 2021, several changes had an impact on our company. First, Michelle Williams stepped down as CEO in August to pursue other challenges outside the Grieg Group, and I was lucky enough to take over the vital role of CEO of Grieg Logistics.

goals, goals number 4 – quality education, 5 – gender equality, 9 –industry, innovation, and infrastructure, and 11 - sustainable cities and communities, are the most important ones. In Grieg Logistics, we highly rely on customer relations and essential partnerships. It is delightful to witness that we create value for all customers, such as Alcoa in Mosjøen (Mosjøen Industrial Terminal (MiT), and Hydro, being the largest ones. We also cooperate closely with Inchcape Shipping Services, a world-leading marine services and supply logistics provider. It is also a pleasure to watch how Grieg Connect plays a crucial role in almost every port and terminal throughout Norway. Vidar Fagerheim and his team have secured new

GRIEG MATURITAS | ANNUAL REPORT 2021

partnerships during 2021, the port of Oslo and their

platform is designed to remove complexity and create

digitalisation project being the largest one

a level playing ground for everyone obliged to report their emission in Norwegian waters. The digital plat-

The dawn of the 2-year long pandemic has been essen-

form is available to all Norwegian shipping companies.

tial for Grieg Strategic Services. The Norwegian Armed

In addition, international shipping companies will

Forces are their only client, and finally, operations and

gain access through their agents. GSS is the first ship

exercises can be carried out as planned. When writing

agent to use the platform, and we hope others will join

this, GSS is working hard to make sure everything goes

them.

smoothly at the Norwegian-led exercise Cold Response 2022.

Grieg Logistics will take an even more significant part in the crucial digital shift in the maritime industry, pro-

As for Grieg Logistics Shipservices, the market has fi-

viding advanced technology to partners and customers

nally stabilised and is now better than it has been for

across sectors and countries. Because of our dedicated

many years. Together with core operations, GSS has

colleagues, we are well on our way to our strategic time-

partnered with Yxney Maritime and Grieg Connect.

line and look forward to the future.

Considering the increased need for precision and transparency in emissions reporting, Grieg Connect

Our mission is to create results through innovative and

and VPS Yxney Maritime have developed NOxDigital –

sustainable logistics solutions for our customers.

a solution to make adherence to emission regulations less of a challenge for vessel owners and operators. The

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36 — 37

People at Grieg Hans Peter Kibsgaard

GRIEG MATURITAS | ANNUAL REPORT 2021

As the COO of Grieg Strategic Services (GSS), Hans Peter Kibsgaard gets to use both his military experience from the Special Forces and his middle school logistics experience as a chocolate milk salesman.

BRIDGING THE GAP BETWEEN THE MILITARY AND CIVILIANS “Joining the Armed Forces had always been a dream for me. I started as a paratrooper for a year, before joining the Naval Special Operations Commando, where I stayed for ten years. I loved that job, and I looked forward to every single day at work. But for me, it wasn’t very compatible with being a family man,” Hans Peter says. When looking for a more family-compatible job, Hans Peter knew he wanted something where he could tap into the knowledge and competence he built in the Armed Forces. When he learned about GSS, it didn’t take long to realise it was a good fit. “In the Special Forces, you learn how to be creative, to come up with plans the enemy doesn’t expect. You also need to be solution-oriented and structured and have the determination and discipline to follow through despite resistance. I get to use all that in my job in GSS.” COLLABORATING WITH THE MILITARY Grieg Strategic Services has a strategic agreement to provide logistics services to the Norwegian Armed Forces. The company has security-cleared project managers co-located with the National logistics operations centre, who use the Grieg Group’s expertise, resources, and network to deliver its services. By having

Off-topic My role model: My wife. She’s driven, warm, great at meeting and really seeing people, and she always has good reflections and arguments. The most important advice I’ve received: Every action has a reaction. My father gave me that advice. It’s about being conscious of every choice you make. Every choice has consequences – either for you or for others. Gadget or app I can’t live without: iPhone and podcasts. If I was prime minister for a day: I would build the Armed Forces without any district political ties. If I could live another person’s life, it would be: The president of the United States. I assume that he learns and experiences a lot of exciting things, and he’s in a position to contribute to making the world a better place.

project managers with both civilian and military experience, the company has a unique ability to provide tailor-made solutions. In his position at GSS, one thing drives Hans Peter more than anything else: trying to optimise the collaboration between the military and civil society.

About Hans Peter Kibsgaard

Strategic partnerships between the Armed Forces and

• 36 years old

civilian companies started to gain traction in 2015, and still, only a few parts of the army are used to collaborating with civilians.

• Bachelor’s degree in Management from BI Norwegian Business School • Grieg Strategic Services, located in Oslo

“My goal is to build an assurance in the army that civilian companies can be a reliable resource and deliver high-quality services. To be cost-efficient, we have to

Our companies

38 — 39

make common use of available resources. I believe al-

In recent years, he has used his initiative to work for an

lowing civilians to support logistics, health, and other

association called Neste Steg (Next Step). The associa-

areas that don’t require military training, and letting

tion, of which Grieg Group is a partner, helps veterans

the Armed Forces focus on what they do best, is the

and retired professional athletes bridge their experi-

way to go.”

ence, knowledge, and competence from the military and athletic career to a civilian one.

CHOCOLATE MILK AND VETERANS There is little doubt that Hans Peter is a man of initia-

“Being in the military gives you so much experience.

tive. This was apparent already in middle school when

But the longer you’re in the military, the more adjusted

he was annoyed that the school cafeteria didn’t sell

to that world you become. Veterans tend to speak in a

chocolate milk. It didn’t take long before he organised

way that civilians don’t understand, making them feel

his own chocolate milk sale, with the profits contribut-

like they don’t have anything to contribute. But they

ing to financing a school trip.

possess so much knowledge. Next Step helps them build awareness of their own competence and poten-

According to him, that’s where he first discovered a knack for logistics.

GRIEG MATURITAS | ANNUAL REPORT 2021

tial,” Hans Peter explains.

Our companies

40 — 41

Cold Response: Ensuring a Smooth Operation for 30,000 Soldiers

GRIEG MATURITAS | ANNUAL REPORT 2021

Right now, thousands of soldiers are gathering in northern Norway for the military exercise Cold Response. But behind the scenes, Grieg Strategic Services (GSS) has already been working hard for months to make sure everything goes smoothly.

“While the exercise itself only lasts for a few weeks, the

it. Experiencing the other side of it in my job in GSS is

logistics required to transport and organise all person-

very interesting. And I think that having experienced

nel and materials is extensive. The first shipments ar-

both sides is definitely beneficial, knowing what is

rived before Christmas, and the last will leave in May,”

needed and what is noticed.”

Hans Peter Kibsgaard, COO of GSS, explains. Having signed the strategic agreement with the NorThe Norwegian-led exercise is held every second year.

wegian Armed Forces in 2017, this is the third Cold

Cold Response 2022 will test air, sea, and land elements

Response exercise GSS has contributed to. They also

and gathers more than 30,000 soldiers from 27 coun-

contributed during the 2018 Trident Juncture exercise,

tries. In addition to units from all the branches of the

which was NATO’s largest exercise since 2002, hosting

Norwegian Armed Forces, several civilian directorates,

50,000 participants from 31 nations.

units, and organisations are set to participate. SUPPORTING THE ARMED FORCES Making sure everyone arrives when and where they

However, GSS’ agreement with the Norwegian Armed

should and that they have the right equipment, accom-

Forces goes beyond exercises. The aim is to strengthen

modation, and food, is no small task. That means that

their operational capability and preparedness through

help from strategic partners, such as GSS, is crucial.

logistical support of operations and exercises nationally and internationally, including the support of allied

“A lot of our contributions are connected to maritime

forces.

activities, such as receiving, unloading, and loading vessels. For us, it’s important to help promote Norwe-

GSS will also provide civilian coordination and man-

gian interests and security. We benefit from having al-

agement of strategic logistical cooperation in peace,

lies here, training for efficient operations in our envi-

crisis, conflict, and war. In addition, they cover the

ronment. Contributing to facilitating that is in our best

Armed Forces’ need for support in planning and imple-

interest,” Hans Peter says.

menting maritime operations and maritime support for visiting units.

COMBINING CIVILIAN AND MILITARY EXPERIENCE

The company has security-cleared project managers

One of GSS’s strengths is having project managers

co-located with the Norwegian Joint Logistic Staff

with both civilian and military experience, providing a

Group, who use the Grieg Group’s expertise, resources,

unique ability to deliver tailor-made solutions.

and network to deliver its services.

As COO, Hans Peter oversees the strategic partner-

One of them is Odd Are Sletten, who has been leased

ship with the Armed Forces. He has spent more than

to the Armed Forces as acting Chief Planning and Pro-

ten years as a soldier in the Naval Special Operations

duction and Project Manager for all maintenance of

Commando and has participated in the Cold Response

the Navy’s surface vessels since June last year. You can

exercise several times.

read more about his experiences working in GSS and with the Armed Forces [here].

“I was used to just being served excellent logistics without even thinking about all the work that laid behind

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Grieg Seafood

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 potenA N D R E A S KVA M E C E O, G R I E G S E A F O O D

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.

tial 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-

GRIEG MATURITAS | ANNUAL REPORT 2021

out the year, and delivered a solid performance in the

which rates global protein producers according to sus-

second half of 2021, marked by improved survival rates.

tainability, as well as an A list rating by CDP for climate

British Columbia made further progress in controlling

action. Still, the majority of the work is ahead of us. We

the impact of harmful algae blooms and low oxygen

must continue to roll up our sleeves and improve.

levels. With our locally developed mitigation systems, we reduced mortality caused by harmful algae from 3.4

It is when times are tough that the truth about who we

percent in 2019 to 0.4 percent in 2021. Newfoundland,

really are emerges. Despite challenging times in 2020

despite the postponed transfer of fish, is on track to

and the beginning of 2021, we carried on all the way

start sea operations in the coming spring.

to the other side without compromising on our values. That makes me proud, and I know it has made us

Our ambitions on sustainability remain steadfast.

stronger. While we cannot predict the future, we know

While food from the ocean has a good starting point,

that new uncertainties will continue to appear in a glo-

we have several challenges to solve to be a true solution

balized world. As I am writing this letter, a terrible and

in a future sustainable food system. Grieg Seafood is

heartbreaking war is unfolding in Ukraine, and Europe

committed to reducing our impact and improving fish

suddenly find ourselves in a new geopolitical situation.

welfare. During 2021, we made progress on certifying

What we least expected has sadly become a reality. In

our farms according to the Aquaculture Stewardship

2022, Grieg Seafood is in a better shape than ever to

Council (ASC) certification with 62 percent of our pro-

adapt to the unknowns, respond to changes and grasp

duction now certified. We were pleased to achieve sec-

the opportunities that lie ahead.

ond place on the Coller FAIRR Protein Producer Index,

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44 — 45

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.

“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 R AG N A H E G G E B Ø G LO B A L R & D M A N AG E R O F G R I E G S E A FO O D A S A

GRIEG MATURITAS | ANNUAL REPORT 2021

new challenges that must be solved, such as farming in harsh weather conditions.

Specifically, the project aims to deliver innovations in

as The Norwegian Veterinary Institute, The Institute

the following areas:

of Marine Research, NORCE, Norwegian University of Life Sciences, Norwegian University of Science and

• Sustainable feed for underwater feeding offshore

Technology, University of Bergen, University of Sta-

• Robust post-smolt in closed-containment facilities

vanger, Western Norway University of Applied Scienc-

at sea • Electrification of offshore farming

es, Simula, University of Melbourne and University of Florida.

• Control systems for semi-autonomous offshore fish farms

“To Grieg Seafood, it is evident that our industry must

• Better fish welfare and increased survival

reduce our footprint and improve fish welfare if we

• Improved logistics at sea

are to realize the growth potential we have in Norway

• Improved competence, knowledge and technology

through new areas and production methods. A major

to develop environmentally, economically and so-

push like this project, where research institutions and

cially sustainable value chains for offshore aquacul-

industry collaborate to find solutions, is exactly what

ture

we need. Grieg Seafood look forward to contributing

Grieg Seafood provides its leading expertise within digital aquaculture to the project.

with our leading expertise within digitization, but also to learning from other partners. Together, we will realize the potential inherent in offshore aquaculture,”

Parties engaged also include companies like Skretting,

says Ragna Heggebø, Global R&D Manager of Grieg

SalMar Ocean, Moreld Aqua, FishGlobe, Hauge Aqua

Seafood ASA.

and Blue Planet, as well as research institutions such Our companies

46 — 47

Grieg Investor

A year unlike most others Last year, we named 2020 “The Different-Year.” If only we had known. When 2021 began with the storming of the US Congress, incited by the outgoing president, we could hardly believe the scenes that unfolded. Later in the year, Angela Merkel stepped down after 16 years as one of Europe’s most powerful politicians, while Jonas Gahr Støre won the election and took over as Norway’s Prime Minister after Erna Solberg. ABBA released a new album, which was completely overshadowed by the pandemic that flared up again, with all the challenges it brought the world that thought the worst was over. 2021 has in every way been an eventful year. T I R I L J A KO B S E N C E O, G R I E G I N V E S TO R

Despite many uncertainties last year, the stock market proved highly robust in 2021. It has been a formidable stock market year where both global equities and Nor-

When summarising the year that has passed and looking towards the one to come, a picture of several games of tug-of-war pulling in different directions emerges. Infection versus vaccine, economic fundamentals versus speculative trends, increased interest rates versus increased stock prices, transitory versus persistent inflation, and central banks as tailwinds or headwinds.

GRIEG MATURITAS | ANNUAL REPORT 2021

wegian equities were up well over 20% in Norwegian kroner. However, if we dig a little deeper into the figures, we see that the stock market in 2021 differs significantly from that of 2020. What has done well and what has done poorly has been turned upside down. WINNERS AND LOSERS The energy sector emerged victorious in the past year, with a return of just over 40% in Norwegian kroner. This is perhaps not so strange, given the galloping energy prices. In addition, bank and financial shares have risen due to higher interest rates. There has also been a power struggle between value and growth shares throughout the year. It almost ended in a draw, but value stocks took a narrow victory for the first time since 2016. IT stocks have continued to do well, but it was

MOVING CAPITAL CAN CHANGE THE WORLD Our companies

48 — 49

not enough to land the victory for the growth stocks.

ers choose not to invest as the regulatory uncertainty is

It is also observed that in periods when interest rates

still very high.

increase on long-term bonds, value stocks tend to do well.

2021 was also a weak year for fixed income investments with a negative return for both global and Norwegian

At the bottom, we find cyclical consumption. This sec-

bonds. With largely stable credit margins, increased

tor has been a winner from 2017 to 2020, with compa-

government interest rates were decisive in pushing the

nies such as Amazon, Alibaba, and Tesla. The USA be-

return on safe bonds in the red. On the other hand, it

came the best region, while Europe fell behind when,

was a strong year overall for more risky bonds. As in

among other things, the German market developed

the stock market, the big disappointment was emerg-

relatively weakly. However, the biggest disappoint-

ing markets, where dollar bonds fell, driven by Chinese

ment on a regional basis in 2021 was emerging mar-

bonds in the real estate sector.

kets, where Brazilian and Chinese stock markets fell sharply. China was hit from several angles: a weaker

And precisely because 2021 was a year that few could

economy and real estate sector, investors’ concern for

have imagined, it is all the more gratifying to be able to

increased regulations, and not least, the ban on private

report that our customers had a year with an excellent

education companies making money on large parts of

return. Together, our customers had a return of just un-

their businesses, in essence wiping out several players

der NOK 10 billion in 2021.

at the stroke of a pen. At the beginning of 2022, China is thus an unloved market, where several fund manag-

GRIEG MATURITAS | ANNUAL REPORT 2021

WE WILL BE NORWAY’S LEADING ADVISOR IN

TECHNOLOGY, PEOPLE, AND CULTURE

SUSTAINABLE INVESTMENTS

There is no doubt that in the years to come, we will

The world faces significant sustainability challenges,

experience both “different-years” and years unlike

which create both risk and opportunities for investors.

other years, or that we must agree with folk singer

Our job is to help our customers navigate this troubled

Øystein Sunde that it was an extra steep year. I am

landscape. But our work with sustainability is not just

also convinced that we at Grieg Investor have chosen

about what footprint you leave behind as an investor.

the right strategy for success, no matter what year we

It is about understanding how to best position yourself

enter. Our ambition is to be the best in our class and

for return. It is possible to combine a positive contri-

to be able to give our clients wise, sustainable, and

bution to sustainability and at the same time generate

profitable advice. Our dedication over several years

a good return – and this is where we provide the best

to combining technology with skilled employees and

advice.

a clearly defined internal culture is what will make us succeed. This is not about reaching a goal that will ever

The ambition to be Norway’s leading advisor in sus-

be achieved. It is something that must be done every

tainable investments has been rooted in our overall

single day, every single year, and by every single one of

business strategy for many years. This requires contin-

us. And luckily, it is something we enjoy doing.

uous investments and a clear focus in our organisation and is integrated into all four of our core deliveries: investment strategy, manager selection, transactions, and reporting.

Our companies

50 — 51

Grieg Kapital Grieg Kapital is a unifying investment and asset management company within the Grieg Group. The company’s mandate is to preserve and strengthen the Groups ﬁnancial assets as well as invest in companies and sectors of interest to the Group.

Grieg Kapital is invested directly in early-stage growth companies within technology, aquaculture and the maritime industry. GRIEG KAPITAL INVESTMENTS Being the Grieg Group’s financial company, Grieg Kapital ensures the Group’s financial assets. Despite many uncertainties during the year, the stock market has proved highly robust in 2021. It has been a formidable year for financial markets where global and Norwegian equities were up well over 20 % in Norwegian kroner. Grieg Kapital exposed over 350 million NOK in the financial markets through its liquidity portG R I E G K A P I TA L I N V E ST M E N T S

Grieg Kapital is the Grieg Group’s investment company, that owns (among other things) Grieg Gaarden, parts of Grieghallen Parkering, and parts of Renseﬁskgruppen.

folio during the year and assured high returns through our collaboration with Grieg Investor. OUTLOOK: Witnessing a war in Europe is shocking to us all. The war affects the international community the economy and the capital markets in different ways, and we expect the markets to cool off as energy prices rise, along with oil prices. At Grieg Kapital, we have just hired a new financial manager and expect a new CIO to move the company forward, in alignment with the company’s strategy to invest more and secure a higher revenue for our owners.

GRIEG MATURITAS | ANNUAL REPORT 2021

DOING GOOD IS THE OBVIOUS BUSINESS OPPORUNITY

Our companies

52 — 53

Grieg Group Resources Grieg Group Resources AS is a shared service center for the companies within the Grieg Group. They represent an important support function for the Grieg Group, delivering services such as ICT, HR and personnel, operations, procurement, insurance, ﬁnance, accounting legal and compliance.

Other challenges are now facing us, as we see an increased frequency of cyber-attacks and a demand for an even more digitalised work environment. I want to highlight two projects that have been critical for us in the past year. The first one is Grieg Digital, a financial reporting system for all Grieg Group companies, developed in 2021. The project is steadily led by our Finance Manager Christian Sandquist Smith and his team, and is now facing the end of development. The goal is to provide stakeholders and board members with a better foundation when making decisions. Another vital project developed in Grieg Group ReW E N C H E KJ Ø L Å S CEO

sources is the compliance project led by Cherin Myrdal Vervik, our lawyer. Facing strong regulations and the endless need to be in front, the Grieg Group has man-

Grieg Group Resources acts on behalf of the Group and helps with coordination and fulﬁllment of joint meas-

aged to secure up-to-date compliance regulations and policies that apply to all Grieg Group companies. One

ures and speciﬁc projects.

example is the upcoming Equality and Diversity Policy

At the beginning of 2021, we still had to live with un-

Public Affairs.

certainties for the year ahead. The pandemic still challenged us, working remotely and not being able to see our colleagues for a long time. Luckily, society reopened gradually, together with our offices and social events. In Grieg Group Resources, being able to meet colleagues again and discuss issues and solutions, is a vital part of our day-to-day work.

developed by Gry Larsen, Leader of Sustainability and

We strive to ensure the best deliveries to our customers. With several new recruitments coming up, such as our new CISO – Chief Information Security Officer, and Administrative Coordinator, I believe we are well set for the days to come. Grieg Group Resources are also operating Grieg Gaarden in Bergen.

GRIEG MATURITAS | ANNUAL REPORT 2021

Our companies

54 — 55

People at Grieg Jan Inge Krokeide There are many people working behind the scenes to make the Grieg Group’s systems work as smoothly as possible. One of them is Jan Inge Krokeide (38): –Technology is at its best when no one notices it.

A KEYMAN IN AN “INVISIBLE” JOB – Our job is to make it easier for our colleagues to do their job, says Jan Inge Krokeide. At the head office in Bergen, he plays a key role at the Grieg Group’s IT department. From here, servers and networks are operated, and support systems and equipment are updated. BEYOND ROUTINE TASKS The days start with a brief, planning routine tasks together with the other IT colleagues in their corner on the sixth floor. But these plans are often replaced by the need to solve unforeseen problems. He thrives when the problem-solving leads to better everyday lives for the employees.

GRIEG MATURITAS | ANNUAL REPORT 2021

– It can be as simple as helping someone who has an

SMALL TALK IS KEY

impractical desk setup. By giving some tips or setting

Jan Inge describes himself as a technologist - a fan of

aside five minutes to help them optimize their desktop,

everything that runs on electricity. But that does not

I might save them hours of frustrations.

mean he sets technology over people.

At the other end of the scale, it could mean going

– When everyone worked from home, the meetings

to work on a Saturday because a power outage has

became more efficient, and small talk came down to a

knocked out half of the infrastructure, and it needs to

bare minimum. But I feel it is an important part of work

be sorted out before Monday morning.

life. If you are going to have a good working relationship with your colleagues, you need to know a little bit

Jan Inge loves these unforeseen days, but with the co-

about how they are doing and what they do outside of

rona pandemic, everyday work changed overnight.

work.

– It was hectic for the first two weeks, then everything

He praises the good unity between the colleagues in

started working out. People adapted quickly and our

Bergen.

core systems did exactly as we hoped. Solved problems instead of causing them. In the last lockdown it almost

– There was never any question of whether my col-

got boring.

leagues in Grieg Group Resources wanted to work mostly from home or the office after the close-down.

System updates and planned changes were put on hold

Everyone wanted to return to the office, and that says

to prevent us from ruining the flow of people in the

a lot.

home office. THE ANNUAL 800 STEPS – I really missed the buzz and the everyday challenges

With a challenging job, it’s important to be in good

at the office.

physical shape. There are a lot of active people in the

INCREASED THREAT PICTURE

Grieg Group, and there’s a long tradition of corporate sports.

During the corona pandemic, there were an ever-increasing number of cyber-attacks against the Grieg

In Bergen, Jan Inge is a facilitator for Grieg Team, mak-

Group. Fishing for employees’ usernames and pass-

ing physical activity a natural part of the work life.

words, to get access to sensitive information, is still a

Grieg Team has strength training and circuit training

big threat.

with an instructor twice a week, and several regular activities during the year.

– This is an important area of focus for us, together with our partner Visolit. Our systems stop many at-

In addition, he is the facilitator for Grieg Team’s reg-

tacks every day.

istration for the annual Stoltzekleiven Opp. The uphill race goes up to one of Bergen’s seven mountains, ap-

For the employees in the Grieg Group, this may mean

proximately 800 steps from the starting line.

extra authentication steps, but in Jan Inge’s experience, the colleagues have a great understanding of the

– Everyone dreads Stoltzen. No one looks forward to it.

importance of the security measures.

You just look forward to finishing.

– No one wants to be the one who lets someone into the

Nevertheless; a lot of people have stood on the starting

system - who sent money the wrong way or loses files,

line for the race from Grieg Team.

he says and continues:

– Many have a love / hate relationship with the race. We get something in common to train towards, to dread,

– If we can make the everyday life of a colleague as

and most importantly - to talk about in the hallways.

painless as possible, while taking care of safety - then we have done our job.

Our companies

56 — 57

Highlights From 2021 JANUARY

APRIL

The Brazilian soy suppliers to the salmon industry, CJ

We revisited our Brand, and released a Brand Centre,

Selecta, Caramuru and Imcopa, will implement a 100

along with updated brand guidelines in relation to the

percent deforestation and conversion free soybean val-

Grieg Group brand, which applies to all Grieg Group

ue chain with 2020 as their cut-off date. No soy grown

companies. In addition, we hosted our annual General

on land deforested after this deadline will be traded.

Meeting, and released our Annual Report for 2020.

This bold and historic move sets a new benchmark for global sustainable supply chains. This includes all of

MAY

Grieg Seafoods operations. Grieg Edge joins offshore desalination startup Ocean Oasis as partner and investor. Norwegian startup Ocean Oasis targets carbon-free freshwater production using innovative offshore technology. This is a perfect fit for Grieg Edge’ investment strategy.

JUNE For the first time, the Grieg Group marked its support to the international Pride-movement. Pride is an annual celebration, usually in June in the United States

FEBRUAR The pandemic still affects our businesses and our people. The Grieg Group Emergency Response Team organizes meetings and communications across the Grieg Group companies. Grieg Maritime Group signs declaration on Seafarer Wellbeing and Crew Change to support our seafarers facing the worldwide pandemic. Many countries deny seafarers entry or make it difficult for them to join or leave their vessel.

MARCH We celebrated the International Womens Day! Chair of the Board, Elisabeth Grieg participated in a panel both at the BI Norwegian Business School, and at an event hosted by The Norwegian Conservative Party (Høyre).

GRIEG MATURITAS | ANNUAL REPORT 2021

and sometimes at other times in other countries, of lesbian, gay, bisexual, transgender, and queer (LGBTQ) identity.

JULY Morten Müller was appointed as the new Managing Director for Grieg Shipbrokers, after serving as interim CEO since the fall of 2020.

AUGUST

OCTOBER

Grieg Connect, our leading technology solutions sup-

VP Shared Services at Grieg Star, Eli Vassenden, spoke

plier joins the ‘Norwegian Digital Port Infrastructure’

on behalf of Grieg Group during an IEAE round-table

project whose chief aim is to enhance the efficiency

conference – as one a very few representatives from the

and environmental footprint of ports throughout the

private sector.

country.

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

NOVEMBER Grieg Investor was named this year’s Nordic Investment Consultancy, for the fourth consecutive year.

DECEMBER A part of the Grieg Group employees Christmas gift was donated to The Church City Mission in Bergen.

Our companies

58 — 59

GRIEG MATURITAS | ANNUAL REPORT 2021

GRIEG MATURITAS

Directors’ Report & Group Result 2021 In 2019 we incorporated the UN’s Sustainable Development Goals in our business strategy because doing good is the obvious business opportunity.

The Grieg Group derives from a long and proud mar-

ability and Public Affairs. We work together across

itime tradition, operating within seafood, shipping,

companies within the Group to achieve specific goals,

shipbroking,

especially following our commitment to the UN SDGs,

maritime

innovation,

technology,

logistics and investment services. Profitable growth

which we implemented as part of our strategic frame-

throughout our history has made us capable of build-

work in 2019. Facing the challenges of the pandemic

ing sustainable businesses and giving back to the soci-

has also brought us opportunities. With the demand

eties in which we operate.

for more digitalisation in the maritime sector, and futher efforts to deliver zero-emission solutions to the

2021 was a record year overall for the Grieg Group.

maritime industry, we genuinely believe we will play a

Even though the pandemic still affected us through-

crucial part in the future. Using the crisis as an oppor-

out the year, all businesses performed very well. It is

tunity is not new to us because it is part of our culture

safe to say that when leaving 2020 behind, these re-

to seek new opportunities which will have a better im-

sults were not at all on our minds. Luckily, markets

pact society.

have improved, and operations are more streamlined, securing solid financial results across all companies in

GRIEG MARITIME GROUP

the Grieg Group. Thanks to our dedicated colleagues,

The pandemic has been a challenge for the shipping in-

we face a future of development and financial perfor-

dustry, and many of the Grieg Star’s crew members had

mance following our Group strategy.

to stay onboard our ships for too long due to national and international restrictions in relation to Covid-19.

In 2021, Group turnover was MNOK 7 392, operating profit (EBIT) MNOK 896, and the profit after tax and

Grieg Maritime Group has been working continuously

discontinued operations MNOK 1 234. Versus a loss of

to try to solve this unprecedented situation, working

MNOK 1 107 in 2020.

to fulfil our commitment to the Neptune Declaration on Seafarer Wellbeing and Crew Change.

We believe our people are our most valuable resource, they are vital in building our success. Several new

In addition, Grieg Maritime Group established a fund

colleagues joined us in 2021, and with that, the Grieg

to provide salary to crewmembers who were banned

Group is well-positioned for the future. In 2021 we

from travel on board our ships due to local restrictions.

have further developed Grieg Maturitas, working with

Even though the pandemic has dawned for many of

strategic priorities within Communication, Sustain-

us, seafarers are still struggling with local restrictions

From the Boardroom

60 — 61

1 649 Employees 31 .1 2 . 2021

7 392 Operating Revenue 2021 · MNOK

and Covid-19 at sea.

1 234 Profit after tax 2021 · MNOK

though it is not yet visible in the financial accounts, as the company is still in a development phase.

Early in 2021, Grieg Star Group renamed its Group of companies to Grieg Maritime Group. Grieg Green was

The more challenging part of 2021, has been the re-

reorganised, tied closer to Grieg Maritime Group, and

structuring of Grieg Green, carving out a revised, but

Grieg Edge has further strengthened its position, in-

sustainable strategy to reflect the changing market

vesting in maritime start-ups, and developing ongoing

needs.

projects such as M/S Green Ammonia together with Wärtsila. They were recently granted approval from

Based on good overall results from the operational

DNV to build the vessel, and with that, we continue to

activities, topped with profit from the sale of dry bulk

move towards a green maritime shift together with im-

vessels, Grieg Maritime Group delivers a consolidated

portant industry partners.

profit before tax for 2021 of USD 38.0m (USD -105.1m). With improved asset values and strengthened liquidi-

2021 did not only mark a new group set up, but the

ty, the Group is well positioned in developing its busi-

company also delivered its most significant financial

ness activities for the coming year.

result in a decade. GRIEG SEAFOOD ASA Covid-19 continues to interfere with, and challenge the

Struggle and hardship defined the beginning of 2021,

daily operations of the Grieg Maritime Group. Howev-

and with Covid-19 and high operational costs, Grieg

er, the world’s return to a new normality and the ef-

Seafood performed below expectations during the first

fects of pent up demands, has brought strong market

quarters. Luckily, the last quarters looked completely

earnings to shipping activities, and has meant that

different. At the end of 2021, with nearly all Covid-19

the Grieg Maritime Group in 2021 managed to deliver

restrictions lifted, the company could release a har-

their strongest result in a decade.

vest number they have never reached before. Grieg Seafood has managed to turn the company around,

The rising call to action to move towards a zero-emis-

reaching several goals of the company’s 2025-strategy.

sion world brings green business opportunities to Grieg Edge, as it builds its reputation and partnerships. The

Grieg Seafood aims to harvest 130 000 tons in 2025 at

enterprise value of this is likely to be considerable, al-

a competitive cost level, and to evolve from purely a

GRIEG MATURITAS | ANNUAL REPORT 2021

commodity supplier to an innovation partner for se-

er possible, and business travel has been restricted.

lected customers. Sustainable farming practices are

Despite the challenging circumstances, Grieg Sea-

the foundation of Grieg Seafood’s operations. Achiev-

food has been able to maintain efficient operations

ing the lowest possible environmental impact and

throughout the year. The pandemic has impacted the

the best possible fish welfare is an ethical responsi-

salmon market in the last two years, with a significant

bility and a prerequisite for long-term profitability.

shift in demand away from hotels, restaurants, and

To achieve sustainable growth and improve competi-

catering (HoReCa), while the retail segment and home

tiveness, the Group focuses on reducing the time fish

consumption have been boosted. The overall demand

spend at sea, improving fish health and welfare, and

for Atlantic salmon has remained strong. Supply lines

providing digital decision-making support to its farm-

have remained largely open, though somewhat limited

ers.

availability has made airfreight expensive. The bulk of the salmon supplied by the Group has been shipped by

The average spot price for the period was NOK 57,3 per

truck from Norway to European markets, or from Can-

kg, compared to NOK 45,1 per kg at the start of 2021,

ada to the USA.

and up by NOK 3,6 per kg compared to the average spot price in 2020. The total harvest volume was 75 601 tons

The Group’s diversified geographical presence has

(ex Shetland). Despite being somewhat below the orig-

provided flexibility and reduced logistical challeng-

inal expectation of 80 000 tonnes for the year, due to

es. Due to higher market uncertainty, the risk of bad

biological challenges, the Board is pleased with this

debts increased during the pandemic. Grieg Seafood

performance.

has good routines for collecting and managing trade receivables and has had an open dialogue with cus-

In 2021, Grieg Seafood sold Grieg Seafood Shetland Ltd,

tomers. A significant portion of the sales volume has

which compromises the UK farming and sales opera-

been credit insured. The Group has not recorded any

tions (the Shetland assets), to Scottish Sea Farms Ltd.

consequential loss on receivables in 2021. Ensuring

The transaction was announced on the 29th of June

financial stability has been a priority for the Group.

2021, and approval was received from the relevant

No dividend was distributed in 2021 due to risk related

competition authorities in the UK in December 2021.

to the pandemic and commitments to growth invest-

The transaction was finalised on the 15th of Decem-

ments. At the beginning of 2022, the Group refinanced

ber 2021. However, the closing settlement is expected

its bank loans, and has a solid financial position. The

to be completed in Q2 2022. Grieg Seafood classified

Group did not receive any government grants or sup-

the Shetland assets as assets held for sale in 2020 and

port regarding Covid-19 in 2021.

throughout 2021 up until the sale. The operations in Shetland were presented as discontinued operations

Moving forward, Grieg Seafood scales its operations

in 2020 and have been presented as such throughout

towards 2025 globally, through M&A activity, with

2021 up until the sale.

costs at or below the industry average, with an ambition to reach 130 000 tons by 2025.

Since the outbreak of Covid-19, employee well-being has been the number one priority for Grieg Seafood. Crisis

GRIEG LOGISTICS

management teams have been operational at the head

Grieg Logistics Group has, among all other companies,

offices and in each region. The Group has followed the

been affected by the pandemic and the uncertain mar-

advice of the local authorities. Measures to lower the

ket situation. They have continued their investments

risk of transmission and safeguard business continuity

in Grieg Connect throughout the year, a company pro-

have been implemented. These include strict rules at

viding advanced technology to ports across Scandina-

production sites and harvesting facilities to limit phys-

via. In 2021, they secured more technological partner-

ical contact and encourage social distancing.

ships through Grieg Connect, such as Bergneset Havn and a national, digital project led by Oslo commune.

Working from home has been encouraged whenev-

From the Boardroom

And since the dawn of the 2-year pandemic is a fact,

62 — 63

the strategic military operations are back to normal,

Highlights 2021 Grieg Group spoke on plastic reductions at UN Roundtable

Grieg Investor was named this year’s Nordic Investment Consultancy

securing higher activities for Grieg Strategic Services. At Mosjøen Industrial Terminal, business continues as usual. Grieg Logistics’ partnership with Alcoa and Inchcape has continued to develop during the year, with both partners satisfied with the current agreement. Building on Grieg Logistics’ strategy, they will continue to develop their company towards a more digital and technology-driven future, aiming to provide more ports with advanced technology and solve obscure problems within the maritime and other industries.

Grieg Edge joined offshore desalination

During 2021, they developed their collaboration with

startup Ocean Oasis as partner and

Yxney Maritime, releasing NoX Digital, a platform

investor

in which shipping and other offshore companies can track their NoX emissions, making reporting seamless. Grieg Logistic’s Ship Agent Services are the first

Grieg Seafood joins forces with 17 leading

ship agents to use the solution, hoping others will fol-

industry and research institutions in the

low.

push to develop low-emission offshore aquaculture

Grieg Logistics’ focus is to build more scalable solutions that can be both profitable, valuable, and sustainable. In 2021 Grieg Logistics Group‘s results before

Grieg Maritime Group signs declaration on

tax are -5 MNOK, versus 0 last year.

Seafarer Wellbeing and Crew Change to support our seafarers facing the worldwide

GRIEG SHIPBROKERS

pandemic

Grieg Shipbrokers was established in 1884 as the first company in the Grieg Group. We provide a full range of services, covering every aspect of vessel financing, contracting, sale and purchase, chartering and operations, backed by rigorous research and analysis. Grieg Shipbrokers achieved a solid financial performance in 2021 thanks to our dedicated colleagues and strong shipping markets. With revenue growth of more than 50 % and the most profitable year in the company’s 138 year-long history, the company is well-positioned for sustainable development within our core segments. We continue our endeavours to build a strong organisation and remain committed to attracting talented individuals that will complement the existing teams. During the fall of 2020, Grieg Shipbroker’s long-time Managing Director, Finn Engelsen jr., stepped down. Since his resignation, Morten Müller (COO) and Ivar Sandvig Thorsen (CFO) have been leading interim

GRIEG MATURITAS | ANNUAL REPORT 2021

management, providing the company with the nec-

EU taxonomy, Grieg Investor are well set for the future,

essary stability. In July 2021, Morten Müller became

counting 26 employees in 2021. They were also named

the company’s CEO, securing owner interest and the

the Nordic Investment Consultancy of the Year, conse-

development of a solid organisation moving forward.

quently for the fourth time.

Grieg Shipbrokers marks its highest income ever in 2021, celebrating a turnover of MNOK 182. We are con-

GRIEG KAPITAL

fident that Grieg Shipbrokers is in a good position,

Grieg Kapital is a combined investment and asset

both financially and organizationally, to continue to

management company in the Grieg Group. The com-

provide value-added shipbroking and financing ser-

pany will partly run liquidity management as a buffer

vices in the years to come.

for its core business, as well as new business areas. In addition, Grieg Kapital manages a portfolio of direct

GRIEG INVESTOR

investments, including real estate and private equity.

2021 was Grieg Investor’s best year throughout histo-

Despite many uncertainties during the year, the stock

ry. For the first time, they managed assets of NOK 110

market proved highly robust in 2021. It has been a for-

billion for more than 130 clients, including founda-

midable year for financial markets where global and

tions, associations, family-owned companies, pension

Norwegian equities were up well over 20 % in Norwe-

funds, insurance companies and municipalities. Their

gian kroner. Grieg Kapital exposed over 350 million

continuous focus on digitalisation and efficiency has

NOK in the financial markets through its liquidity

made Grieg Investor a leader in key areas. Investment

portfolio during the year and assured high returns

in responsible and sustainable assets continues and is

through our collaboration with Grieg Investor.

a strong focus area both internally in our own organisation, towards customers, and towards the market in

Grieg Kapital has been facing overall satisfactory per-

general.

formance in the capital market in 2021, and they received a good return the past year, with a profit before

Responsible and sustainable investments will play an

tax of MNOK 57 in Grieg Kapital AS.

increasingly central role for the company’s customers in the future. Therefore, it is strategically essential for

BALANCE SHEET, FINANCIAL SITUATION AND

Grieg Investor to take a clear position in this market

CASHFLOW

and be perceived as a leading advisor with a high level

The Grieg Group has a strong financial position. Total

of trust. With the entrance of the EU Green deal and

current assets amount to 5 750 (MNOK 4 458), of which

O P E R AT I N G R EV E N U E MNOK 12 000 10 000 8 000 6 000 4 000 2 000 0 2013

From the Boardroom

2014

2015

2016

2017

2018

2019

2020

2021

64 — 65

MNOK 2 578 (MNOK 1 579) is made up of bank deposits,

with us all through 2021. Managing Covid-19 has been

market-based financial investments and other finan-

one of the true challenges in the Grieg Group’s history,

cial investments. Current liabilities total MNOK 1 690

and to everyone who has contributed across our com-

(MNOK 1 136), which gives positive working capital of

panies – we are truly grateful. In 2020 we established

MNOK 4 060 (MNOK 3 322). The Groups total fixed as-

an Emergency Response Team led first by our CEO

sets are MNOK 10 722 (MNOK 10 772), of which MNOK

and then by GGR Legal, consisting of all Grieg Group

6 108 (MNOK 7 552) is financed through loans from fi-

companies. We developed plans, discussed measures,

nancial institutions, financial leasing, and other long-

and communicated throughout the entire organisa-

term debt.

tion. The Emergency Response Team has met regularly since then, providing expertise and knowledge.

CASHFLOW

In addition, we support our CEOs and leaders with

In total, the Group had a positive cash flow of MNOK 1

necessary information to employees and offer digital

161 (MNOK 389) from operations. Due to investments

training sessions and social gatherings. The pandemic

in fixed and intangible assets, sales and the purchase

still affects us, but now we have embarked on a new

of shares, the net cash flow from investing activities is

normality.

MNOK 1 924 (vs negative of MNOK 1 265). The net cash flow from financing activities is negative at MNOK

As the restrictions and pandemic were coming to an

2 053 (MNOK 802), due to loan repayment (MNOK 1

end, a new crisis came upon us. The tragic Russian in-

588), dividends and discontinued operations. In total,

vasion in Ukraine affects us all, and we are sadly wit-

the Group had a positive cashflow of MNOK 1 032 vs

nessing innocent people being affected.

negative cashflow of MNOK 74 in 2020. In response to the crisis, the US, the UK, the European FINANCIAL RISK AND RISK MANAGEMENT

Union (and others) have imposed wide-ranging polit-

When operating in a global market across different

ical and economic sanctions against Russia. Sanc-

business areas, the companies of the Grieg Group are

tions might impose international operations affecting

exposed to several types and degrees of risk, ranging

the Grieg Group in one way or the other. Tensions are

from market operations and financial risk to compli-

likely to increase, and sanctions against Russia are in-

ance and regulatory frameworks. Risk management

creasing every day. However, at this point, Russia does

is a continuous process and an integrated part of the

not want the armed conflict with Ukraine to spread to

Group’s governing model. Thus, we are constantly fo-

NATO countries and other parts of the EU. Currently,

cusing on how to identify and monitor the risk areas

the threats from western allies are economical, only.

in the Group companies, as well as developing strategies to mitigate such risks. For further information

As a significant deep-sea Open Hatch-actor, Grieg

concerning financial risk, see note 17 to the Group ac-

Maritime Group has an essential role in transporting

counts and risk management: Covid-19 and the War in

critical goods. According to the latest intelligence re-

Ukraine.

ports, company procedures, and rules, GMG shall continually evaluate emerging risks and perform its busi-

The members of the Board of Directors and the CEO

ness safely.

are insured. The insurance provides liability cover for members of the Board of Directors and the CEO with

In the short term, Grieg Maritime Group does not have

respect to claims arising from decisions or actions

any trades in or out of Ukraine, so their immediate

they may take on behalf of Grieg Maturitas.

business is not affected. However, they do see a dramatic increase in energy prices, which will affect bun-

RISK MANAGEMENT: COVID-19

kers. GMG’s team is constantly working with partners

Even though we are well prepared as a group for uncer-

like “Den Norske Krigsforsikring for Skib (DNK)” and

tain times; we had no chance to prepare for the chal-

the Norwegian Shipowner’s Association to review the

lenges following the pandemic that hit us both organ-

operational safety of their crew and assets.

isationally and financially in March 2020, continuing GRIEG MATURITAS | ANNUAL REPORT 2021

Grieg Logistics provides ship agent services, terminal

policy. Grieg Shipbrokers have one Russian national

operations, and digital infrastructure to support Nor-

working from the Bergen office.

wegian ports and terminals. In addition, they have a strategic collaboration with the Norwegian Armed Forces both in peace, crisis, and war. Following their cooperation with the Army, Grieg Logistics monitors the situation closely, providing company management and board with up-to-date risk analysis following the war in Ukraine. Their agreement with the Army does not include international operations, which means that no personnel from Grieg Logistics will be deployed outside the Norwegian border. Grieg Logistics

Our people are our most valuable resource. Performing competitively in our business areas requires competent and empowered people working safely together across the Grieg Group companies.

personnel contribute to the NATO exercise “Cold Response,” which takes place in March 2022.

ORGANISATION AND WORKING ENVIRONMENT

Grieg Seafood trades salmon globally but has not since

ing competitively in our business areas requires com-

2014 sold salmon to Russia. They have ongoing sales

petent and empowered people working safely together

operations with Ukraine, but due to the war, cancel-

across the Grieg Group companies. Sustainability De-

lation of planned sales operations is a fact. There are

velopment Goal (SDG) 4, Quality education, is one of

no employees in Grieg Seafood directly affected by the

the Grieg Groups’ stretch goals.

Our people are our most valuable resource. Perform-

conflict. The total number of employees in 2021 was 1 664. Russia has closed its stock exchange, RTS, and conse-

Their qualifications constitute a substantial part of

quently, businesses with assets at RTS will not be able

the business capital. Keeping a diverse workforce and

to sell stocks or funds. In addition, the Russian Central

providing our employees with learning opportunities

Bank has signalised that the stock market trading on

that promote competence aligned with their personal

the Moscow Exchange will be further suspended when

career goals, will ensure that we always have the best

this is written. Grieg Kapital no longer has any assets

hands and minds on board.

at the RTS. Grieg Investor advises on a portfolio at the amount of NOK 110 billion. Considering Grieg Investor’s portfolio, the company has no ties to the RTS (Russia Trading System) or other Russian economic interests. Grieg Shipbrokers has a global client base, and their clients’ vessels trade worldwide except in war risk or sanctioned areas. Grieg Shipbrokers have carefully reviewed all business activities that may be affected by the current invasion of Ukraine and will continue to monitor the situation closely. There is no ongoing business with any customers based in Russia, and the company will not negotiate new contracts with Russian registered companies. Furthermore, if any companies outside Russia are affected by sanctions, any business will cease if the entity remains on a sanction list. It follows the company will perform due diligence on a new customer in line with their standard KYC

From the Boardroom

66 — 67

DIVERSITY AND GENDER EQUALITY

HUMAN RIGHTS

We believe that a diverse and balanced working en-

We are committed to respecting internationally recog-

vironment is paramount for success, and we strive to

nised human rights in our operations, our value (sup-

be at the forefront of diversity within the businesses

ply) chain, and in the communities where we operate.

we operate. That is why we have chosen SDG 5 Gender

Our commitment to respecting international human

Equality as a Stretch goal in our business strategy. We

rights is anchored in international human rights and

are committed to work towards gender parity at all lev-

labour standards, including those expressed in the In-

els of the organisation, and we promote gender equal-

ternational Bill of Human Rights and the Declaration

ity and diversity among business and supply chain

on Fundamental Principles and Rights at Work. We are

partners.

committed to the OECD’s guidelines for Multinational Enterprises and the UN Guiding Principles on Busi-

Gender equality, non-discrimination and inclusion

ness and Human Rights (UNGP).

are internationally recognised human rights and fundamental to achieve a just and sustainable soci-

By respecting human rights, we shall

ety. Therefore we developed a new policy on Human

• not infringe on the human rights of others,

Rights in the Grieg Group in 2021.

• address adverse human rights impacts and, • ensure measures to prevent, mitigate and remedi-

We still have work to do in several Grieg Group com-

ate such impacts.

panies. In total, only 19 % of our employees worldwide are women. Counting only Norway, 25,06 % of the em-

In 2021 the Board of Grieg Maturitas adopted a Human

ployees in total are women. Moving to the CEO level,

Rights Policy. The policy outlines the Grieg Group’s

37,5 % of all CEOs within the main companies in the

commitment, approach, and responsibility to respect

Grieg Group (only counting Norway) are women. In

human rights. The human rights policy interlinks with

these companies 41 % of all board members are wom-

other policy documents such as our Ethical guide-

en.

lines, our Supplier Code of Conduct, and our grievance mechanisms. The companies within the Grieg Group

The level of success in our work for gender equality is

ensure that human rights are respected in accordance

defined by the work in the different companies. All our

with the expectations outlined in the policy.

companies measure gender balance and are committed to improving the gender balance among all em-

HEALTH AND SAFETY

ployees. Similarly, all companies have a written policy

The Grieg Group companies continuously focus on

against workplace discrimination. Transparency is

training and facilitating a safe working environment

key to success in reaching our goals. The Grieg Group

for all employees by identifying and evaluating poten-

companies use the SHE Index as a reporting tool on

tial risks on an ongoing basis.

gender equality. The SHE Index consists of six categories focused on different aspects of gender equality;

In Grieg Maritime Group, records show no (0) injuries

actual gender balance, policies and targets, action,

onshore in 2021. For the tenth year, there were no fatal

gender pay gap, talent and recruitment and general di-

accidents at sea, but there were 33 (40) crew injuries of

versity and inclusion.

which two (0) serious, leading to repatriation due to rib

Grieg Maturitas II employed six women and one man.

contusion and hand injury. In Grieg Seafood, absence

The board consists of four men and four women. The

rates are mainly related to long-term sickness. Work-

Chair /CEO is female.

ing-related injuries are a total of 48 cases.

GRIEG MATURITAS | ANNUAL REPORT 2021

From the Boardroom

68 — 69

The sick leave percentage is still low overall in the

digitalise our tools and working methods. In 2021 the

Grieg Group. In 2021 the sick-leave percentage was at

group has been working with a new financial reporting

2,32 %*. We focus on preventing sick-leave by creating

system called “Grieg Digital”, a tool for Group financial

a good working environment and conducting close fol-

reporting and securing a sound basis for financial de-

low-ups with our employees, also during this year with

cision-making.

people working from home. The Group also facilitates participation in physical activities and are a long-term

To become a driving force for sustainable develop-

supporter of Aktiv mot Kreft and “Aktivt Kontor”.

ment, we must create a purpose-driven organisation embedded in an innovative culture. Within the Grieg

INNOVATION

Group, we strive to collaborate across all companies in,

Innovation, our stretch goal SDG 9, is vital to becom-

inspiring, challenging and learning from each other.

ing sustainable. The Grieg Group companies engage

In addition, we believe sustainable business develop-

in several research initiatives, especially in the ship-

ment only can derive from partnerships across sec-

ping and seafood industries. In 2021, Grieg Maritime

tors, companies, and industries, and hence SDG num-

Group continued its work with maritime innovation

ber 17 (partnership for the goals) is the most important

through the establishment of Grieg Edge in 2020, and

one to us.

the participation in the ZEEDs initiative. In addition, they have invested in the offshore desalination start-

SUSTAINABILITY, CLIMATE AND ENVIRONMENT

up Ocean Oasis as a partner and investor, and contin-

In the Grieg Group, sustainability and our commit-

ued their work with M/S Green Ammonia, which was

ment to the SDGs is integrated in our business strategy.

named “Best of What’s New” in 2021 by Popular Sci-

For us, the 17 SDGs are interdependent and equally im-

ence Magazine. In early 2022 the M/S Green Ammonia

portant. However, some of the sustainability themes

was granted Approval in Principal from DNV.

are more relevant to the businesses we operate within, and it has therefore been natural for us to choose SDGs

Grieg Connect, the technology company of Grieg

where we can have the greatest impact and where we

Logistics, has reached several milestones through-

also have the largest challenges at an industry level.

out the year, joining the ‘Norwegian Digital Port Infrastructure’ project, whose chief aim is to enhance

At the Group level, we have defined SDG 8, 16, and 17 as

the efficiency and environmental footprint of ports

our license to operate, or our foundation. These goals

throughout Norway. In addition, NoX Digital, a digital

represent the groundwork for how we run our busi-

emission reporting infrastructure for Norwegian and

nesses, with a focus on employee health and wellbe-

international shipping companies, was launched in

ing, inclusive economic growth, transparency, and ac-

September 2021. The platform has been developed by

countability, and partnering to achieve greater impact

Grieg Connect and Yxney Maritime, in close collabo-

on the sustainability challenges facing the industries

ration with the NOx Fund. The solution will automati-

in which we operate.

cally detect if a vessel operates in taxable waters. Data on energy consumption and AIS data completes the

In addition to this foundation, we have set ourselves

picture, and everything becomes visible on a digital

five impact goals, or stretch goals, related to the areas

platform for each user.

where we can make a difference, and to help us focus our efforts in areas that are relevant for our business

Grieg Seafood is also leading in several innovation

and our stakeholders. These goals relate specifically to

projects within the industry, focusing on technology

SDG 4, 5, 9, 13, 14. We have set clear ambitions for all

to improve biology and fish welfare, reducing their im-

our prioritised SDGs.

pact and contributing to a better society. They ranked 2nd on the international FAIRR Protein Producer In-

In 2021 we revised our objectives and KPIs at Group-lev-

dex, and

el. This was done in an inclusive process through the

The Grieg Group is constantly working to improve and

Grieg Group Sustainability Advisory Committee (SAC),

*Norwegian employees at the Grieg Group companies

GRIEG MATURITAS | ANNUAL REPORT 2021

consisting of members of the top management teams

food’s greenhouse gas emission targets are classified

from each Grieg company. The Grieg Group compa-

as well below 2 C and 1,5 C (2050), aligned with the

nies were also consulted individually. In December,

Paris agreement. Their emission targets have been

the Board of Grieg Maturitas approved the new objec-

approved by the Science Based Targets Initiative. For

tives and KPIs. The operationalising of the objectives

2021, the CDP awarded Grieg Seafood an “A” score for

and KPIs is delegated largely to each company. At the

their climate disclosures and efforts to transition to a

Group level, the strategy and sustainability objectives

low-carbon future.

are monitored by the Board, which has the overall responsibility for ensuring strategic objectives are met.

Transporting about 90% of world trade, shipping is sta-

Progress is presented annually.

tistically the least environmentally damaging mode of transport when taking productivity into the equa-

The Grieg Group is a member of the UN Global Com-

tion. Still, its emissions of greenhouse gases (GHG)

pact, and we are committed to the ten principles of the

constitute about 2.5% of global emissions. In addition

UN Global Compact. We report annually on our pro-

to compliance with the requirements of the Interna-

gress, and our “Communication of Progress” is pub-

tional Maritime Organisation, Grieg Maritime Group

licly available. We are also a member of UNGC Action

intends to reduce GHG emissions per transported unit

Plattform for Sustainable Ocean Business.

by a minimum of 40% by 2030 from 2008 levels. The ambition is to be net-zero by 2050. Over the course of

The ocean connects our people, our businesses, our

2021, a significant amount of work has been put into

future, and our past. Recognising that nature must be

increasing awareness and competence for creating

managed on behalf of future generations, we were ear-

a decarbonisation road map for the Grieg Maritime

ly movers making sustainability part of our strategy.

Group’s vessels, moving the organisation from under-

On top of this, SDG 13, Climate Action, and SDG 14, Life

standing the challenge to ideating solutions. Among

Below Water, are our stretch goals. We have a vision

specific actions is the preparation of individual carbon

of zero net emissions operations in all industries we

improvements plans (SEEMP) for each ship on how

operate. We will continue to advocate for zero-emis-

to keep their carbon intensity (CII) within gradually

sions operations in all relevant industries and increase

stricter limits after 2023. Defining various measures

awareness internally and in dialogue with key stake-

to reduce emissions are considered on a broad basis, of

holders.

which several will need qualified testing. For example, the planning for testing biofuel as an alternative fuel

Though Grieg Seafood has made progress in find-

for vessel propulsion started, with physical testing to

ing more sustainable fish farming methods in recent

be carried out on one of the open hatch vessels in early

decades, many challenges remain to be solved. For

2022.

farmed salmon to be part of a sustainable global food system, they must keep improving to ensure co-ex-

Grieg Investor has, in 2021, continued to develop Enig-

istence with nature and other species, improving fish

ma with a completely new transillumination module

welfare, finding sustainable feed ingredients, cutting

for climate risk and the UN Sustainability Goals. It

carbon emissions, recycling resources and promot-

is important for Grieg Investor to understand how to

ing human rights. While farmed salmon has a low

best can navigate in terms of both opportunities and

carbon footprint compared to other animal proteins,

threats, to take their work to the next level and ensure

the salmon industry must do its part to achieve the

that customers have the necessary insight to be able

Paris Agreement. New solutions must be developed

to make informed choices and act as one guarantor

to cut emissions in operations and along the value

against greenwashing.

chain. Direct emissions from Grieg Seafood’s production (Scope 1 and 2) account for less than 10% of their

In 2021 we have continued our partnership with WWF

total emissions. More than 90% of their emissions

and Grieg Foundation to reduce plastics pollution in

originate from their value chain (Scope 3). Grieg Sea-

the Philippines. To solve one of the world’s biggest

From the Boardroom

70 — 71

challenges related to the Oceans, biodiversity and cli-

GOING CONCERN

mate, we must provide solutions where the problem is

The Board of Directors confirms that the annual ac-

at its largest. Due to this, we have set a clear ambition:

counts have been prepared on a going concern ba-

50 per cent reduction of plastic pollution in three Phil-

sis, and that this assumption is valid, based on the

ippine port cities by 2023.

Group’s solid financial position and expectations of future profits. The Board believes that the submitted

Our main office building, Grieg-Gaarden, is also certi-

annual accounts give a correct picture of the result,

fied as an Eco-lighthouse office building.

cash flow and economic situation. No events have tak-

CORPORATE GOVERNANCE

en place after the balance sheet date that could materially affect the accounts. We expect that COVID-19

The Grieg Group always strive to do business in a fair

won’t influence the 2022 figures in the future, but the

and proper way. We apply the Norwegian Recommen-

uncertainties in the world markets due to the crisis in

dation on Corporate Governance to ensure that the

Ukraine are affecting us all.

responsibility and roles between administration, the Board of Directors and the General Meeting are based

OUTLOOK

on sound practice. Deviation may arise given the fact

When writing this, Ukraine has been at war with Rus-

that the Group is privately owned.

sia for over six weeks. Even though the 2-year pandemic has dawned, shipping rates are moving upwards,

Our SDG goals within corporate governance are SDG 8

and seafood prices are increasing, the effect of the war

(Decent work and economic growth), SDG 16 (Peace,

in Ukraine brings uncertainty across the entire inter-

justice, and strong institution) and SDG 17 (Partner-

national community.

ships for the goals). In 2021 the Grieg Group developed its partnership with the UN Global Compact, and we com-

Now, all companies within the Grieg Group are per-

ply with the UN Global Compact principles in human

forming well end beyond expectations. Forecasts in

rights, labour, the environment, and anti-corruption.

the salmon industry indicate levels, where profit is reasonable and in addition, consumption and demand

We will strive to be innovative to meet the challenges of

for salmon, are growing since all Covid-19 measures

the SDGs, through new partnerships and cross-sector

have been lifted.

cooperation. We do this by being honest, exchanging ideas and by seeking to understand and learn from

The uncertainties in global markets affect our busi-

our surroundings. We have an open-minded business

nesses overall, even though we see increased demands

approach and strive to create room for action and pos-

for the transportation of goods, and the salmon export

sibilities, which will enable strong partnerships from

worldwide. For Grieg Investor, changes in the financial

both public, and private parts of society.

markets will impact turnover, but as of now, international sanctions affect the company in a smaller man-

Through Grieg’s more than 138 years of history, it is our

ner. The same applies to Grieg Shipbrokers and Grieg

capacity to manage the challenges of the times, and to

Logistics.

innovate and adapt, that has put us in the position to drive the changes we want to see in the world today.

We feel terrible when reading about the dreadful things happening in Ukrain at the moment. In light of the situation we have implemented the necessary measures, moving forward in all Grieg Group companies and at Group level, to secure employees, the financial situation, our customers, and our partners.

GRIEG MATURITAS | ANNUAL REPORT 2021

To become a positive driving force for sustainable

and our cash situation will be given the highest pri-

development, we must think big and bold and create

ority. But we still think supporting new business ide-

a purpose-driven organisation with a culture of inno-

as and facilitating innovation initiatives within the

vation. To achieve this, we will continue promoting col-

Group is of even more importance. We are still using

laboration within and across all companies in the Grieg

the UN Sustainable Development Goals (SDG) as our

Group, inspiring, challenging and learning from each

framework for our strategy, and we firmly believe that

other. We will also seek cooperation both among our

we will act as an inspiration to other companies, or-

competitors and our existing partners, the ZEEDs initi-

ganisations, partners, and the rest of the community

ative being a good example, and the newly established

to join our pledge: We will restore our oceans.

company North Ammonia, a collaboration between Grieg Maritime Group and Arendals Fossekompani.

The Board of Directors would like to express our thanks to all employees in all our companies for their

As we advance, we will continue focusing and adapt-

solid dedication and contribution to the Grieg Group,

ing to changing markets and pursue opportunities as

especially during these challenging times.

they arise, given the uncertainty in the global economy. Securing our businesses, our employees’ health

Bergen, 21st of April, 2022 The Board of Directors of Grieg Maturitas AS

Elna-Kathrine Grieg Board Member

Camilla Grieg Board Member

Knut Nesse Board Member

From the Boardroom

Elisabeth Grieg Chair & CEO

Nina W. Grieg Board Member

Per Grieg jr. Board Member

Nicolai H. Grieg Board Member

Rolv-Erik Spilling Board Member

72 — 73

GRIEG MATURITAS | ANNUAL REPORT 2021

Annual Accounts Annual Accounts Profit and loss statement

Balance sheet

Cashflow statement

Notes 1

Accounting principles

Segment information

Other operating expenses

Payroll costs, number of employees, remuneration etc.

Pensions and pension commitments

Fixed assets

Fixed intangible assets

Investments in subsidiaries

Investments in associated companies and joint ventures

Financial items

100

Sharehildings and other investments

101

Inventories and biological assets

102

Recievables due in more than one year

102

Market based financial investments

103

Debt, payable after 5 years

103

Mortgages/Guarantee liability/restricted funds

104

Financial risk

106

Contingencies and subsequent events

107

Taxes

108

Equity

110

Share capital and share information

111

Related parties

112

Remuneration to auditor

113

Business Combinations

114

Assets held for sale and discontinued operations

118

74 — 75

PROFIT AND LOSS STATEMENT

Amounts in NOK 1 000

GRIEG MATURITAS AS 2020

2021

Note 2

Operating Revenue

GRIEG GROUP 2021

2020

7 392 301

6 764 636

Operating Costs -

4,5

Payroll and social security costs

-1 011 851

-892 377

6,7

Depreciation

-628 417

-707 441

Write-down

35 770

-789 612

Operating costs - shipping

-951 048

-994 195

Cost of sales - fish farming

-1 722 444

-1 724 466

-216

-551

3,23

Other operating expenses

-2 218 114

-2 211 126

-216

-551

Total operating expenses

-6 496 105

-7 319 217

-216

-551

896 195

-554 581

258 151

71 437

Operating profit - EBIT Financial items

90 000

506 250

Income from investments in subsidiaries

169

Other Financial income

Change in value of market based assets

7 536

62 422

-1 486

-2 932

-410 157

-454 222

Results of investments in associated companies

-3

-18

Other Financial expenses

90 166

506 328

Net financial items

-145 956

-323 295

89 950

505 777

Profit before tax

750 239

-877 876

-478

Tax

-119 781

-86 473

89 472

505 777

Profit for the year from continued operations

630 458

-964 349

Net profit for the year from discontinued operations

603 746

-142 568

Net profit and loss for the year

1 234 204

-1 106 917

To minority interests

606 739

-351 222

Majority proportion

627 466

-755 695

GRIEG MATURITAS | ANNUAL REPORT 2021

BALANCE SHEET

Amounts in NOK 1 000

GRIEG MATURITAS AS 2020

2021

Note

GRIEG GROUP 2021

2020

Assets Fixed assets Intangible assets -

Goodwill

520 976

525 893

Licenses

1 587 545

1 559 423

Contracts

3 558

Other intangible assets

19 663

15 416

Total intangible assets

2 128 184

2 104 290

1 574 586

1 523 420

Tangible assets -

Land and real estate

Vessels

4 700 278

5 083 895

Vehicles, machinery and equipment

1 948 293

1 790 200

Total tangible assets

8 223 157

8 397 515

155 050

128 307

27 781

35 837

31 004

31 863

Long-term financial assets 4 021 796

4 021 796

Investments in subsidiaries

Investments in associated companies

Loans to associated companies

Shareholding and other investments

Other receivables

156 836

74 423

4 021 796

Total long-term financial assets

370 671

270 430

4 021 796

Total fixed assets

10 722 012

10 772 236

From the Boardroom

76 — 7 7

Amounts in NOK 1 000

GRIEG MATURITAS AS 2020

2021

Note

GRIEG GROUP 2021

2020

2 651 412

2 309 284

324 740

372 755

Current assets -

Inventory and biological assets Receivables

Accounts receivable

90 000

337 500

170

Other receivables

195 919

196 812

90 006

337 670

Total receivables

520 659

569 567

Receivables from subsidiaries

Financial Investments -

Shareholding and other investments

87 559

67 321

Market based financial investments

691 204

744 970

Total financial Investments

778 763

812 291

40 669

40 309

Cash and bank deposits

1 799 530

767 051

130 675

377 979

Total current assets

5 750 363

4 458 193

1 752 172

4 152 471

4 399 775

16 472 375

16 982 601

GRIEG MATURITAS | ANNUAL REPORT 2021

Assets held for sale

Total assets

BALANCE SHEET

Amounts in NOK 1 000

GRIEG MATURITAS AS 2020

2021

Note

GRIEG GROUP 2021

2020

1 124

Equity and liabilities Equity Paid-up equity 1 124

1 124

409 763

Share premium

409 763

410 887

Total Paid-up equity

410 887

Share capital

Retained earnings 3 651 581

3 651 108

Other equity

3 859 614

3 683 387

3 651 581

3 651 108

Total retained earnings

3 859 614

3 683 387

Minority interests

3 244 447

2 813 087

Minority interest contingent consideration

446 040

Total Minority interests

3 690 487

3 259 127

4 062 467

4 061 995

Total equity

7 960 988

7 353 402

From the Boardroom

78 — 79

Amounts in NOK 1 000

GRIEG MATURITAS AS 2020

2021

GRIEG GROUP

Note

2021

2020

53 139

57 209

660 219

607 266

Liabilities Provisions -

Pension liabilities

Deferred tax

Other provisions

326

1 074

Total provisions

713 684

665 549

5 244 386

6 603 767

8 137

1 693

Other long-term liabilities -

15,16

Liabilities to financial institutions

Other long-term liabilities

Lease liabilities

855 589

946 491

Total long-term liabilities

6 108 112

7 551 951

8 230

13 317

600 735

623 394

102 609

25 211

81 361

58 139

Dividend

464 199

123 273

Current liabilities -

236

90 000

337 500

Other current liabilities

432 458

292 634

90 004

337 781

Total current liabilities

1 689 591

1 135 968

275 731

90 004

337 781

8 511 388

9 629 199

4 152 471

4 399 775

16 472 375

16 982 601

Bank overdrafts Accounts payable Accounts payable group companies

Taxes payable Public duties payable

Liabilities associated with the assets held for sale Total liabilities Total equity and liabilities

Bergen, 21 of April, 2022 The Board of Directors of Grieg Maturitas AS st

Elna-Kathrine Grieg Board Member

Elisabeth Grieg Chair & CEO

Camilla Grieg Board Member

Nina W. Grieg Board Member

Knut Nesse Board Member

Rolv-Erik Spilling Board Member

GRIEG MATURITAS | ANNUAL REPORT 2021

Per Grieg jr. Board Member

Nicolai H. Grieg Board Member

CASHFLOW STATEMENT

GRIEG MATURITAS AS 2020

Amounts in NOK 1 000

2021

GRIEG GROUP 2021

2020

750 239

-877 877

-25 211

-222 632

-106 839

Cashflow from operations 89 950

505 777

Taxes paid

Gain/loss from sale of fixed assets

-90 000

-506 250

Ordinary depreciation

628 417

707 441

Write-down (reversal) of fixed assets

-35 769

789 612

Unrealised gain/loss market based investments

-7 536

-62 422

Change in inventory

-342 129

-67 824

Change in accounts receivable

33 751

172 956

-76

276

Change in accounts payable

-25 386

46 024

-241

-164

Change in accruals

-748

-8 063

Difference in expenses pensions and payment in/out

6 156

-5 073

Effect of change in exchange rate

1 339

12 044

Share of profit from associated companies (equity method)

1 486

2 932

Change in other provisions

237 749

-98 071

Gain/loss from sale of market based investments

-99 847

-3 316

Net cash flow from operating activites for discontinued operations

145 228

3 505

-367

-361

1 160 900

389 236

From the Boardroom

Profit before tax

Dividends receivable taken to income

Net cashflow from operations

80 — 81

GRIEG MATURITAS AS 2020

Amounts in NOK 1 000

2021

GRIEG GROUP 2021

2020

Cashflow from investing activities -

Sale of fixed assets

372 509

781

Purchase of fixed assets/newbuilding contracts

-606 117

-882 245

Purchase of intangible assets

-12 878

-164 233

Payments on business combinations

-70 935

Accumulated cash acquired in business combinations

30 628

Sale of subsidiary, deconsolidation of cash and cash equivalents

-84 754

Loan to associate

45 289

90 000

258 750

Payments from other group companies

Sale of shares

393 939

151 627

Purchase of shares and securities

-234 032

-169 900

Acquisition of shares in associated company

-30 845

Net cash flow from investing activites for discontinued operations

2 041 801

-121 537

90 000

258 750

Net cashflow from investing activities

1 924 377

-1 265 279

-5 087

-425 005

-1 588 393

-501 386

Cashflow from financing activities -

Net change in bank overdraft

Loan repayment (short/long-term)

Loan proceeds

39 147

1 977 750

-90 000

-258 750

Dividends paid

-352 629

-129 365

Net cash flow from financing activites for discontinued operations

-145 836

-120 161

-90 000

-258 750

-2 052 798

801 832

-367

-361

1 032 479

-74 211

41 035

40 669

767 051

842 161

898

40 669

40 309

1 799 530

767 051

Net cashflow from financing activities Net cashflow for the period Opening balance of cash and cash equivalents Cash postition in assets held for sale Cash and equivalents 31.12

GRIEG MATURITAS | ANNUAL REPORT 2021

Note 1

Accounting principles

The Annual Accounts for Grieg Maturitas AS have been

OPERATING REVENUE

prepared in accordance with Norwegian Accounting

Operating revenues are entered as income at the time

Act and generally accepted accounting principles.

of delivery. The time of delivery is understood as the

GROUP ACCOUNTS

time of transfer of risk and control related to the delivery. Freight revenues from voyages are recognised

The consolidated accounts include the subsidiar-

on the basis of the number of days the voyage lasts.

ies specified in note 8 and shows the accounts of the

Revenue is shown, net of value added tax, returns and

parent company and the subsidiaries as a single eco-

discounts.

nomic unit. Shareholdings and investments in subsidiaries are eliminated on the basis of the acquisition

CLASSIFICATION OF ASSETS AND LIABILITIES –

method. The cost of shareholdings and investments in

MAIN RULE

subsidiaries is eliminated against the book equity of

Assets intended for long-term ownership or use are

the shares/investments at the date of acquisition. Any

classified as fixed assets. Other assets are classified as

difference arising is posted to the identifiable assets.

current assets. Receivables due within one year are

Any surplus value that cannot be attributed to specif-

classified as current assets. The corresponding criteria

ic assets, or the company’s own intangible assets, is

are applied to classify liabilities. Certain items are stat-

described as goodwill and is depreciated over its esti-

ed on the basis of special valuation rules, in accordance

mated lifetime. Intra-group transactions and internal

with accounting legislation, as detailed below. Other

balances are eliminated.

assets and liabilities are classified as fixed assets and long-term liabilities, respectively.

Companies that are bought or sold during the year, is included in the group accounts from the time of con-

INVENTORIES

trol arises or ceases.

Inventories are recognised at the lower of cost and fair value. Goods in progress, and finished goods are recog-

Changed owner share in subsidiaries, where the com-

nised at the lower of full cost and net sales value. The

pany after the transaction still is a subsidiary, is an eq-

net sales value of finished goods is calculated as sales

uity transaction for the Group. The income statements

value less sales costs. The stock of bunkers consists of

and balance sheets of the group entities that have a

fuel and diesel and are recognised at cost on the basis

functional currency different from the presentation

of the FIFO method.

currency are translated into the presentation currency as follows:

FOREIGN CURRENCY

(i) assets and liabilities are converted at the closing rate

Assets and liabilities denominated in foreign curren-

on the date of the balance sheet,

cies are stated at the year-end exchange rate. Agio,

(ii) income and expense items in the income state-

or disagio, on settlements or conversion of monetary

ment are converted at average exchange rates for

items in foreign currency on the day of balance is allo-

the period (unless this average is not a reasonable

cated. Transactions in foreign currencies is recalculat-

estimate of the cumulative effect of the rates pre-

ed to transaction rate.

vailing on the transaction dates, in which case income and expenses are translated on the dates of

Foreign exchange hedging derivatives purchased in or-

the transactions),

der to reduce the currency risk for the sub-group Grieg

(iii) translation differences are recorded against equity and specified separately. From the Boardroom

Maritime Group and Grieg Shipbrokers are recognised as hedging transactions. Gains/losses of foreign ex82 — 83

change contracts are therefore recorded in the same

are provided for in the accounts of the subsidiary. If the

period as the hedged transactions. Please refer to note

dividend exceeds the profit after the acquisition, the

17. Unrealized gain/loss on the hedging contracts is not

surplus amount represents repayment of the capital in-

posted on the balance sheet.

vestment and the distributions are deducted from the amount of the investment in the balance sheet.

FOREIGN EXCHANGE RATES (NOK)

INVESTMENTS IN LIMITED PARTNERSHIPS

01.01.2021

31.12.2021

Average 2021

1 EUR

10,47

9,99

10,16

1 USD

8,53

8,82

8,59

1 CAD

6,70

6,94

6,85

profits/contribution to cover losses from investments

1 GBP

11,65

11,89

11,82

in limited partnerships is taken to income/charged

Investments in limited partnerships are recorded on the basis of the cost method whereby the investment is stated at cost in the balance sheet. The distribution of

against profits under financial items. Profits from inINTEREST RATE HEDGING

vestments in limited partnerships are taxable in the

Interest rate hedging contracts are recognised and

hands of the respective participants.

classified in the same way as the related mortgage loan. The interest received/paid under the contract is there-

INVESTMENTS IN PORTFOLIO AND PRIVATE EQ-

fore recognised in the interest period in question and is

UITY COMPANIES

included in interest cost/income for the period. Unre-

A portfolio of investments are recorded as a current as-

alized gain/loss on the hedging contracts is not posted

set, and is valued at the lower of cost price and estimat-

on the balance sheet.

ed fair value for the portfolio as a whole when the intention behind the portfolio is to diversify the risk through

ACCOUNTS RECEIVABLE

a balanced portfolio with respect to time, branches and

Accounts receivable are stated at nominal value less

geography. For unlisted investments, with no observa-

provisions for expected losses. The loss provision is

ble price, the fair value is determined by recently third

based on an individual assessment of each accounts

party-trades, or with a reference to the fair value of

receivable.

similar investments. Investments with significant and permanent impairment is removed from the portfolio.

INVESTMENTS IN SUBSIDIARIES A company is defined as a subsidiary if the Group has

INVESTMENTS IN ASSOCIATED COMPANIES

a decisive influence on its operations. This is normal-

AND JOINT VENTURES

ly the case where the Group holds more than 50% of

An associated company is a company where the Group

the voting share capital. Subsidiaries are posted in the

has significant influence, but not control. Significant

company accounts applying the cost method. The in-

influence is deemed to exist for investments where the

vestment is stated at historical cost of the shares un-

Group has between 20% to 50% of voting capital. In-

less a write-down has been necessary. The investment

vestments in associated companies and joint ventures

is written down to fair value when the reduced value

are recorded on the basis of the equity method in the

is due to causes which are not deemed to be tempo-

consolidated accounts, unless the investment value

rary. Write-downs are reversed when the grounds for

is immaterial. Investments in 50/50% joint ventures

the write-down no longer exist. Dividends and other

are stated according to gross method. The share of the

distributions are recognised in the year in which they

results in associated companies is posted separately

GRIEG MATURITAS | ANNUAL REPORT 2021

under financial items. The investments in associated

impairment whenever events or changes in circum-

companies are posted as a financial asset. The Group’s

stances indicate that the carrying amount may not be

share of a loss is not posted in the income statements if

recoverable. An impairment loss is recognised for the

this means that value of the investment in the balance

amount by which the asset’s carrying amount exceeds

sheet becomes negative. Provisions will be made if the

its recoverable amount. The recoverable amount is the

Group has undertaken an obligation on behalf of the

higher of an asset’s fair value less costs to sell and value

associate.

in use. For the purpose of assessing impairment, assets

FIXED ASSETS

arately identifiable cashflows (cash-generating units).

are grouped at the lowest levels for which there are sepFixed assets are valued at acquisition cost, but are written down to fair market value where the decline

The Group’s open hatch vessels are sailing in a pool,

in value is not expected to be temporary. Fixed assets

which are market and operated by G2 Ocean AS. Also

with a limited economic lifetime are depreciated on a

for the bulk activities, consisting of cargo contracts,

straight-line basis over the expected lifetime of the as-

owned and chartered vessels, G2 Ocean AS markets

set. Long-term liabilities are stated in the balance sheet

and operates the vessels in Grieg Star Bulk and Grieg-

at the nominal amount on the establishment date. Cur-

Maas in a dry bulk supramax/ultramax pool.

rent assets are valued at the lower of acquisition cost and fair market value. Current liabilities are stated in

Having the vessels sail in a pool means that the oper-

the balance sheet at the nominal amount on the estab-

ational use of the vessels, including optimization of

lishment date. Periodic classification and maintenance

routes, is combined for the fleet. Earnings of each in-

costs are posted in the balance sheet and depreciated

dividual vessel is therefore affected by the earnings of

on a straight-line basis until the next planned docking.

other vessels in the pool. The open hatch fleet and the

The docking costs are included in the balance sheet

bulk fleet are therefore considered to be the respective

along with the value of the ship. The depreciation of

cash-earnings of other vessels in the pool. The open

docking costs is included in operating costs.

hatch fleet and the bulk fleet are therefore considered to be the respective cash-generating units.

INTANGIBLE ASSETS Goodwill is depreciated over its economic lifetime. The

Newbuilding contracts are included in the fleet impair-

surplus value attached to the fleet’s contracts of em-

ment and unpaid installments are deducted.

ployment and the company’s right to renominate Grieg Maritime Group tonnage is defined as “contracts” in

Non-financial assets other than goodwill which have

the balance sheet and is depreciated over 20 years. Li-

been impaired are reviewed for possible reversal of the

censes with unlimited economic lifespan is subject to

impairment at each date.

an annual impairment test. Licenses with limited economic lifespan is depreciated annually. Expenses relat-

PENSION COMMITMENTS

ed to the company’s own development are recorded in

Defined contribution plans

the balance sheet from the point when it is likely that

The Group’s main pension scheme is a defined contri-

the development work will result in an identifiable in-

bution plan, for which the companies pay contribu-

tangible asset.

tions to an insurance company. The companies have no further payment obligations once the contributions

ASSET IMPAIRMENTS

have been paid. Contributions are recorded as payroll

Assets that are subject to depreciation are reviewed for

expenses.

From the Boardroom

84 — 85

Defined benefit plan

of ownership to the lessee. All other leases are classi-

Some companies have defined benefit plans, including

fied as operational leases. When a lease contract is

AFP. A defined benefit plan is a pension scheme that

classified as a financial lease where the company is the

defines the pension payment an employee will receive

lessee, the rights and obligations relating to the leas-

on reaching retirement age. The pension payment nor-

ing contracts are recognised in the balance sheet as

mally depends on one or more factors, such as age, pe-

assets and liabilities. The interest element in the lease

riod of service with the company and salary level. The

payment included in the interest costs and the capital

pension commitment under defined benefit schemes

amount of the lease payment is recorded as repayment

posted in the balance sheet is the present value of the

of debt. The lease liability is the remaining part of the

defined benefit schemes at year-end less the fair value

principal. For operational leases, the rental amount is

of the pension fund assets, adjusted for unposted de-

recorded as an operating cost.

viations from estimate. The pension commitment is calculated annually by an independent actuary based

TAXATION

on a linear accrual of pension entitlements. Changes in

The tax charge in the profit and loss account consists

benefits under the pension plan are posted in the prof-

of the tax payable and the change in net deferred tax.

it and loss account on an ongoing basis. The pension

Taxes are charged when they arise. Deferred tax in the

schemes are funded through payments to insurance

balance sheet is calculated on the basis of timing dif-

companies or financed through operations. Post-em-

ferences between values for taxation and accounting

ployment benefit obligations associated with the early

purposes. Taxable and tax-deductible timing differ-

retirement pension (AFP), under the LO/NHO arrange-

ences which are reversed or can be reversed within the

ment, are a multi-employer defined benefit plan, but

same period are netted against each other and entered

the plan is recorded as defined contribution, as it is not

net. Some of the companies of the Group are subject

measurable.

to shipping taxation under the Norwegian tonnage tax system pursuant to chapter 8 of the Taxation Act.

MARKET BASED FINANCIAL ASSETS Short-term investments in shares and mutual funds

CASHFLOW STATEMENT

are regarded as part of the trading portfolio and are

The statement of cashflows is prepared on the basis of

stated at fair value at year-end. Dividends received and

the indirect method. Accordingly, the cashflows from

other distributions are entered as income under other

investment and financing activities are reported gross,

financial income.

while the accounting result is reconciled against the net cashflow from operations. Cash and cash equiva-

ESTIMATES

lents include cash, bank deposits and other short-term

When preparing the annual accounts in accordance

liquid investments that can immediately and with no

with good accounting practice, the management make

major exchange rate risk be converted into a known

estimates and assumptions which affect the profit and

amount and maturing less than three months from the

loss account and the valuation of assets and liabilities

transaction date.

as well as information about contingent assets and liabilities at year-end. Contingent losses which are likely and quantifiable are charged against income on an ongoing basis. LEASING The companies differentiates between financial leasing and operational leasing based on an evaluation of the lease contract at the time of inception. A lease contract is classified as a financial lease when the terms of the lease transfer substantially all the risk and reward

GRIEG MATURITAS | ANNUAL REPORT 2021

Note 2

Segment information

GRIEG GROUP

Amounts in MNOK Operating revenue

Operating profit

Net financial Items

Profit before tax

2021

2020

2021

2020

2021

2020

2021

2020

4 663

4 408

422

205

-129

-227

292

-22

1 832

1 579

476

-762

-135

-181

341

-943

Grieg Logistics

519

482

-5

-0

-5

-0

Grieg Investor

125

103

Grieg Shipbrokers

182

119

-1

-3

-11

-12

Grieg Kapital

114

127

-18

-8

130

122

-43

-53

-69

-17

-33

-47

-51

7 392

6 765

896

-555

-146

-323

750

-878

-36

789

-36

789

861

234

715

-89

Grieg Seafood (NGAAP)/ Grieg Aqua2 Grieg Maritime Group

Other

Total - Grieg Group Write-down vessels in GMG Total - Grieg Group ex write-down

7 392

6 765

Other includes the Groups’s holding company, mangement service company and eliminations

For discontinued operations and held for sale assets, please refer to note 25 for information

From the Boardroom

-146

-323

86 — 87

Note 3

Other operating expenses

GRIEG GROUP

Amounts in NOK 1 000

Operating costs - shipping

2021

2020

Timecharter costs - shipping

293 421

356 788

Ship operating costs

657 628

637 407

Total operating costs - shipping

951 048

994 195

2021

2020

1 392 696

1 731 233

329 748

-6 767

1 722 444

1 724 466

Cost of sales - fish farming Cost of sales - fish farming Change in inventories Total cost of sales fish farming

Other operating expenses

2021

2020

385 539

339 760

Other operating expenses

1 832 575

1 871 365

Total other operating expenses

2 218 114

2 211 125

Freight and cost of services

The group has the following long term operating lease agreements related to chartering of vessels, offices, plant and machinery.

2021 Long-term time charter Bare-boat hire Other lease amount charged in the year

Duration

Number of vessels

Operating lease expense

2 - 5 years

167 682

6 - 12 years

125 547

2-10 years

116 797

Total lease amount charged

2020 Long-term time charter Bare-boat hire Other lease amount charged in the year Total lease amount charged

GRIEG MATURITAS | ANNUAL REPORT 2021

410 027

Duration

Number of vessels

Operating lease expense

0 - 5 years

254 751

1-12 years

104 344

2-10 years

118 830 477 925

Note 4

Payroll, employee and remuneration

The company had no employees in 2021. The Managing Director is employed in Grieg Maturitas II. There has been no remuneration to the Board of Directors in Grieg Maturitas. Total remuneration to the Managing Director and Board members from the Group is specified below.

GRIEG GROUP

Amounts in NOK 1 000 2021

2020

815 724

7 00 100

Social security costs

67 431

60 786

Pension costs

47 537

49 203

Other benefits

81 159

82 288

1 011 850

892 377

1 073

1 052

576

658

1 649

1 710

Payroll and social security costs Salaries

Total

Number of employees Number of sailing personnel1 Total

Salary costs are recognised in the P&L as operating costs - shipping.

REMUNERATION TO EXECUTIVES In 2021 totalt payments to salary, pension premium og other remuneration to present Managing Director was NOK 4,0 mill (of which NOK 0,9 mill is related to severance pay) and to present Board Members NOK 17,8 mill. (NOK 4 mill. are Board remuneration and NOK 13,8 mill. are salaries from companies in the group). Remuneration to the Board members and Managing Director is paid from the companies where the Director is employed or a member of the Board. Elisabeth Grieg, chair of the board, was registered as The Group CEO from desember 2021.

From the Boardroom

88 — 89

Note 5

Pensions and pension commitments

PARENT COMPANY

The company had no employees in 2021, and therefore no employees covered by pension schemes in 2021.

GRIEG GROUP

The Group companies in Norway have pension schemes which meet the requirements of the Act relating to compulsory occupational pension schemes. Most of existing employees in Group companies in Norway are now transferred from having a defined benefit based pension scheme to having a defined contribution based pension scheme. All new employees are offered a contribution based pension scheme. Most of the Group companies abroad have a defined contribution based pension scheme.

Amounts in NOK 1 000 Total pension costs distributed as follows Defined contribution pension Defined benefit pension, incl. AFP Pension costs - discontinued operations Total

2021

2020

45 815

45 900

1 722

2 119

1 183

47 537

49 203

DEFINED CONTRIBUTION BASED PENSION SCHEME The defined contribution based pension scheme covers full-time and part-time employees and amounts to between 2% and 20% of salary. The contribution charged in the accounts in 2021 amounted to NOK 45,8 million (excluding National Insurance Contributions). DEFINED BENEFIT BASED PENSION SCHEME Some companies in the Group have defined benefit pension scheme. The Group pension scheme is funded through the accumulation of pension fund assets in an insurance company or through operations. The scheme give an entitlement to defined future benefits. In 2021 a total of 73 persons (including pensioners and persons on early retirement) were covered by the benefits based scheme.

GRIEG MATURITAS | ANNUAL REPORT 2021

Net pension costs, including National Insurance Contribution

2021

2020

865

1 077

1 798

2 409

-2 129

-3 062

347

790

842

904

Pension costs for the year

1 722

2 119

Pension fund assets/liabilities

2021

2020

-143 974

-143 757

82 655

79 968

8 180

6 581

Net pension fund assets/(liabilities)

-53 139

-57 209

Of which unfunded obligations

-23 654

-30 896

2021

2020

Norway

Discount rate

1,90%

1,70 %

Anticipated rise in salaries

2,75%

2,25 %

Anticipated return on pension fund assets

3,10%

2,70 %

Anticipated increase of pensions

2,50%

2,00 %

Anticipated rise in pensions, regulation of National Insurance Base rate

3,10%

2,00 %

Present value of pension entitlements Interest expenses on pension entitlements Return on pension fund assets Accounting effect of estimate divergences and plan changes This year’s change, provision for undercoverage CPA Administration expenses

Calculated pension commitments Pension fund assets (at market value) Unposted effect of estimate divergences

Financial assumptions:

From the Boardroom

90 — 91

Note 6

Fixed assets

GRIEG GROUP Land and real estate

Vehicles, machinery and equipment

Vessels

Total

1 922 871

4 178 943

10 313 411

16 415 225

21 547

15 429

348 889

385 866

-88 910

Additions

222 585

508 318

37 604

768 507

Disposals

-133 286

-30 514

-500 438

-664 238

1 944 808

4 672 176

10 199 467

16 816 450

-365 042

-2 681 274

-4 878 244

-7 924 561

-5 179

-42 608

-620 945

-668 732

1 574 586

1 948 294

4 700 278

8 223 157

42 983

257 738

284 604

585 326

-35 771

Economic lifetime

20-50 years

3-20 years

25-30 years

Depreciation plan

Linear

419 017

514 866

Purchase cost at 01.01 Currency translation differences Grants received and other deductions to historic cost 1

Purchase cost at 31.12 Depreciation accumulated Write-down accumulated Balance sheet value at 31.12

Depreciation Write-down (reversal)

Book value of financial lease agreements included in the table above

“1

Amounts in NOK 1 000

933 882

Grants received and other deductions to historic cost related to the freshwater facility in Grieg Newfoundland. Investment tax credits are recognized when the qualifying

property, plant and equipment are available for productive use, and are recorded as a direct decrease in property, plant and equipment.

GRIEG MATURITAS | ANNUAL REPORT 2021

FIXED ASSETS Investments in 2021 relates primarily to Grieg Seafood ASA and the Grieg Newfoundland project and the RAS plant in BC, in addition to other growth- and maintenance-investments. The Newfoundland-project comprises licenses for fish farming, a high-end fresh and saltwater Recirculating Aquaculture System (RAS) facility currently under construction. The acquisition is accounted for as a business combination and further described in note 24, and assets acquired is shown as acquisition of business in the table above. In Grieg Maritime Group the disposals of vessels is related to the sale of four dry bulk vessels in Grieg Maas joint venture during the year. FINANCIAL LEASE AGREEMENTS Grieg Seafood has financial lease agreements on vehicles, machinery and other equipment, with a book value of NOK 780 million. The corresponding amount of lease liabilities recognized is NOK 360 million and the undiscounted amount of future lease payments is NOK394 million as of 31.12.2021. Rensefiskgruppen has financial lease agreements with a book value of NOK 24 million on vehicles, machinery and other equipment, and lease liabilites amounts to NOK 19 million as of year-end 2021. Of the total balance sheet amount for vessels the share of leased operating assets held by Grieg Maritime Group is NOK 515 million as of 31.12.2021 and the long-term financial lease liability recognized amounts to NOK 477 million as of 31.12.2021.

From the Boardroom

92 — 93

Note 7

Intangible assets

GRIEG GROUP

Amounts in NOK 1 000 Goodwill

Contracts

Other intangible assets

Licenses

Total

720 182

158 934

33 956

1 642 715

2 555 787

Currency translation differences

18 104

30 997

49 181

Additions

4 964

8 913

7 298

21 175

Disposals

-66 476

-153 122

-789

-5 304

-225 691

Purchase cost at 31.12

676 774

5 811

42 160

1 675 706

2 400 451

Accumulated depreciations

-66 195

-5 811

-22 497

-88 161

-182 664

Accumulated write-down

-89 603

Balance sheet value at 31.12

520 976

19 663

1 587 545

2 128 184

28 295

4 772

10 241

43 309

Economic lifetime

3-20 years

10 years

3 -10 years

5-25 years/ unlimited

Depreciation plan

Linear

Linear/none

Purchase cost at 01.01

Depreciation Write-down (reversal)

Goodwill primarily relates to the aquisition of Grieg Newfoundland, descibed in note 24. Contracts represent excess values related to the vessels’ contracts of affreightment through the participation in the G2 Ocean pool and purchased dividend rights in the Grieg Shipbrokers Group. Other intangible assets relates to logistic systems in Grieg Logistics Group, digital software solutions in Grieg Investor AS and Grieg Green AS. Licenses relates mainly to fish-farming licenses in Grieg Seafood ASA and Ryfylke Rensefisk Group. Most licenses have an unlimited economic lifetime, but is subject to a yearly valueassessment to determine if write-downs are required.

GRIEG MATURITAS | ANNUAL REPORT 2021

Note 8

Investments in subsidiaries

GRIEG GROUP Subsidiary

Amounts in NOK 1 000 Registered office

Ownership

Proportion of voting shares

Book equity 100%

Book value

Dividend

Bergen

75%

100%

4 068 864

4 021 796

506 250

Grieg Maturitas II AS

Grieg Maturitas II AS, which is owned 75% by Grieg Maturitas AS and 25% by Grieg Foundation, is the common holding company of the Group.

GRIEG GROUP

The consolidated financial statements comprise the company Grieg Maturitas AS and Grieg Maturitas II AS with the following subsidiaries:

Grieg Maturitas II AS owns the following companies:

Registered office

Grieg Maritime Group AS

Directly ownership

Directly and indirectly ownership

Proportion of voting shares

Bergen

100%

Grieg Logistics AS

Bergen

100%

Grieg Kapital AS

Oslo

100%

Grieg Aqua AS

Bergen

100%

Grieg Shipbrokers KS

Bergen

45%

55%

AS Joachim Grieg & Co

Bergen

100%

Grieg Investor Holding AS

Oslo

45%

80%

Grieg Group Resources AS

Bergen

100%

From the Boardroom

94 — 95

Grieg Maritime Group AS owns the following companies:

Registered office

Grieg Edge Grieg Green AS Grieg Green Consulting and Advisory Company Limited Grieg Shipholding AS Grieg Star AS Grieg Star Philippines inc. Grieg Shipowning AS

Bergen

100%

Oslo

100%

China

100%

Bergen

100%

Bergen

100%

Philippines

100%

Bergen

100%

Bergen

100%

Grieg International II AS

Oslo

100%

Grieg Shipping III AS Grieg Shipping III AS

Bergen

97%

Bergen

100%

Bergen

Grieg Star 2017 AS

Bergen

100%

Grieg Star OH Pool AS

Bergen

100%

Grieg Star Bulk Pool AS

Bergen

100%

GriegMaas AS

GriegMaas Ultramax AS

Proportion of voting shares

Grieg Shipping II AS

Grieg Star Bulk AS

Ownership

Bergen

50%

Bergen

100%

Ownership

Proportion of voting shares

GriegMaas companies has been disvolved in 2022.

Grieg Shipbrokers KS owns the following companies:

Registered office

Grieg Shipbrokers Valuation Services AS1

Bergen

100%

Grieg Shipbrokers Ltd.

100%

Grieg Shipbrokers Asia AS

Bergen

100%

Grieg Shipbrokers Asia Pte. Ltd.

Singapore

100%

Grieg Shipbrokers Asia Ltd.

Hong Kong

100%

Ownership

Proportion of voting shares

10%

Grieg Shipbrokers Valuation Services AS has changed from KS to AS

AS Joachim Grieg & Co. owns the following companies:

Registered office

Grieg Shipbrokers KS

Bergen

GRIEG MATURITAS | ANNUAL REPORT 2021

Grieg Logistics AS owns the following companies:

Registered office

Scandinavian Harbour Service AS

Tønsberg

Proportion of voting shares

100%

Mosjøen Industriterminal AS

Mosjøen

100%

Grieg Connect AS

Kristiansund

100%

Grieg Strategic Services AS

Bergen

100%

Grieg Aqua owns the following companies:

Registered office

Ownership

Proportion of voting shares

Grieg Seafood ASA

Bergen

50,17%

Bergen

100%

Grieg Seafood Finnmark AS

Alta

100%

Grieg Seafood Canada AS

Bergen

100%

Grieg Seafood BC Ltd.

Canada

100%

Grieg Seafood Sales North America Inc.

Canada

100%

Grieg Seafood Premium Brands Inc.

Canada

100%

Grieg Seafood Rogaland AS

Grieg Seafood Norway AS

Bergen

100%

Grieg Seafood Sales UK Ltd.

100%

Grieg Seafood Sales USA Inc.

USA

100%

99%

Grieg Newfoundland AS

Ownership

Bergen

Grieg Seafood Newfoundland Ltd.

Canada

100%

Grieg Newfoundland Seafarms Ltd.

Canada

100%

Grieg Newfoundland Nurseries Ltd. 1

Canada

100%

Grieg Newfoundland Development Ltd has merged with Grieg Newfoundland Nurseries Ltd.

From the Boardroom

96 — 97

Grieg Investor Holding AS owns the following companies:

Registered office

Grieg Investor AS

Oslo

Grieg Kapital AS owns the following companies:

Registered office

Grieg Holdings II AS

Bergen

100%

Finnøy

75,2

75,2%

Ryfylke Rensefisk AS

Finnøy

100%

Finnmark Rensefisk AS

Alta

100%

Ryfylke Berggylt AS

Finnøy

100%

Talgje Rensefisk AS

Finnøy

100%

Austevoll Rensefisk AS

Austevoll

100%

AS Nestun Uldvarefabrik

Bergen

100%

Silves Odissey Inv. and Techn. Lda.

Portugal

74%

90%

Grieg Gaarden AS

Bergen

100%

Grieghallen Parkering II AS

Bergen

47,52%

Bergen

100%

93,15%

Rensefiskgruppen AS

Grieghallen Parkering AS Maris Reinvest AS 1

Marin Innovasjon AS has merged with Ryfylke Bergylt AS

GRIEG MATURITAS | ANNUAL REPORT 2021

Oslo

Ownership

Proportion of voting shares

100%

Ownership

Proportion of voting shares

Note 9

Investments in associated companies and joint ventures

GRIEG GROUP

Amounts in NOK 1 000

Ownership %

Registered office

Book value 01.01

Fram Marine AS1

25,00%

Oslo

2 281

Portalo AS

50,00%

Oslo

Tytlandsvik Aqua AS

33,33%

Hjelmeland

43 158

Nordnorsk Smolt AS

50,00%

Hasvik

41 264

Årdal Aqua AS

37,04%

Hjelmeland

G2 Ocean Holding AS

35,00%

Bergen

North Ammonia

50,00%

Rogaland Havbrukspark Eiendom AS

50,00%

Sum 1

Addition

Book value 31.12.

Excess value inlc. in Book value

2 281

219

-20

4 929

48 087

Share of profit/loss for the year

Other changes

-6 053

12 500

47 711

-363

9 241

8 877

41 105

-984

3 174

43 295

Oslo

4 915

-956

101

4 065

Finnøy

500

154 831

219

128 308

4 950

-3 447

25 017

Booked according to the cost method.

From the Boardroom

98 — 99

Note 10

Financial items

Amounts in NOK 1 000 Parent company Other Financial Income Interest income Gain on sale of investments

Grieg Group

2021

2020

2021

2020

169

5 662

17 442

119 298

30 055

136

Reversal of write-down of financial investments Other financial income

133 055

23 941

Total financial income

169

258 151

71 437

Parent company Other Financial Expenses

Grieg Group

2021

2020

2021

2020

Interest expenses

346 553

307 411

Write-down of financial fixed assets

180

Other financial expenses

63 604

146 631

Total financial expenses

410 157

454 222

GRIEG MATURITAS | ANNUAL REPORT 2021

Note 11

Shareholdings and other investments

GRIEG GROUP

Amounts in NOK 1 000

Shareholdings and other investments - classified as current assets Ownership

Purchase cost

Argentum Investment Partner IS

7,62%

25 952

Proximar Seafood AS

7,99%

26 718

Voxtra East Africa Agribusiness Fund

5,44%

5 740

Blueye Robotics AS

2,10%

5 250

25,00%

5 008

1,41%

2 672

F 14 Invest AS

3,81%

210

Rem Nor AS

8,82%

3 000

Union Real Estate Holding AS

0,74%

1 048

Karihaugveien 22 Holding AS

6,70%

1 456

Sahara Forest Project AS

2,10%

1 150

C-Feed AS

7,90%

5 000

1,60%

4 356

Company

Fremre Asset 3 AS DNB Private Equity III ( IS)

Idekapital Fund 2 IS Total - classified as current assets

Book value 31.12.

87 559

Ownership

Purchase cost

Book value 31.12.

1,90%

11 167

3,00%

1 622

18 903

18 216

31 692

31 004

119 251

118 563

Shareholdings and other investments - classified as fixed assets Company Mercell Holding AS UACC Ross Tanker DIS Other investments Total - classified as fixed assets

Total shareholding and other investments

Portfolio investments: the portfolio of investments on the list is valued at the lower of cost price and estimated fair value (market value). The investments are treated as a portfolio where gains and losses are off-set, and the cost price are measured against the estimated fair value on the total portfolio. The portfolio investments are classified as current assets. 2 Direct share investments: the shares are valued on the basis of the cost method at an individual basis, and written down if fair value is lower than the cost price. Write-downs are reversed when the grounds for the write-down no longer exist. The direct share investements are classified as fixed assets. 1

From the Boardroom

100 — 101

Note 12

Inventories and biological assets

GRIEG GROUP

Amounts in NOK 1 000

Raw materials - fish farming Goods in progress - fish farming Finished goods Bunkers and lube oil Total inventories and biological assets

Note 13

2021

2020

130 327

80 278

2 490 480

2 209 169

723

155

29 882

19 682

2 651 412

2 309 284

Receivables due in more than one year

GRIEG GROUP

Amounts in NOK 1 000 2021

2020

27 781

35 837

Other receivables

156 836

74 423

Total

184 617

110 260

Loan to associated companies

GRIEG MATURITAS | ANNUAL REPORT 2021

Note 14

Market based financial investments

GRIEG GROUP

Amounts in NOK 1 000 Purchase cost

Market value

20 929

34 419

Mutual funds

212 593

314 131

Bonds

181 703

190 330

Money market funds

151 758

152 325

566 983

691 204

Individual shareholdings

Total

Unrealised gain this year of market based financial investments

Note 15

7 536

Debt payable after 5 years

GRIEG GROUP

Long-term debt - maturity more than 5 years

Long-term finance lease liabilities - maturity more than 5 years1

Amounts in NOK 1 000 2021

2020

62 321

100 879

2021

2020

389 953

453 517

The long-term finance lease liabilites relates to leases of barges, cage installations, plant, machinery and other equipment in the segment Grieg Seafood group and leases of vessels in the segment Grieg Maritime Group.

From the Boardroom

102 — 103

Note 16

Mortgages/guarantee liability/restricted

PARENT COMPANY

Restricted deposits related to employees’ tax deduction

GRIEG GROUP

Amounts in NOK 1 000 2021

2020

Amounts in NOK 1 000 2021

2020

Restricted deposits related to employees’ tax deduction

48 584

42 158

Debt secured by mortgage (including overdraft facilities)

2021

2020

4 552 892

6 035 633

8 229

9 654

4 561 122

6 045 287

Mortgaged debt - long term Factoring and short term debt Total mortgaged debt

Out of the total long-term mortgaged debt, NOK 856 million is long-term financial lease liabilities. For further details on leased assets see note 6. Group assets have been given as mortage security.

Balance sheet value of mortgaged assets

2021

2020

Receivables

181 444

221 241

Vessels and newbuildings

4 113 121

4 496 663

Real estate

1 401 564

1 459 959

Other assets

1 946 370

1 122 081

Licences

1 536 319

809 947

2 620 807

2 280 270

1 107 076

11 799 625

11 497 237

2021

2020

957 787

551 720

1 627 101

1 940 029

Stocks Assets held for sale Total

Total guarantee liability

Undrawn borrowing facilities

GRIEG MATURITAS | ANNUAL REPORT 2021

LOAN COVENANTS

sels. Grieg Shipping II AS and Grieg International II AS is

For Grieg Seafood the financial covenant of the syn-

providing guarantees in the amount of USD 248,6 mill.

dicated loan agreements is equity-ratio of minimum

for Grieg Shipowning AS. The companies have been in

35%, measured on the consolidated book value of

compliance with the covenants throughout the year.

Grieg Seafood Group. In addition, there is a rolling 12-months NIBD/EBITDA leverage-ratio requirement.

Grieg Kapital AS is required to comply with covenants

The leverage-ratio metric of NIBD/EBITDA is linked

due to acting as a guarantor for the credit facility that

to the equity-ratio requirement: if equity-ratio is more

Proximar Seafood AS has entered into (see further de-

than 40%, maximum leverage-ratio is 5.0, and if eq-

tails under “guarantee liability”). Grieg Kapital AS are

uity-ratio is equal to or less then 40%, maximum lev-

required to maintain value adjusted equity ratio above

erage ratio is 4.5. Grieg Seafood was in compliance

50%, maintain total equity above MNOK 420 and main-

with its financial covenants as at 31 December 2021.

tain liquidity-ratio (current ratio) above 200%. Grieg Kapital AS has entered into a first priority share pledge of

After the reporting date of 31 December 2021,

all share in Proximar Japan and has received a fee for the

Grieg Seafood Group has refinanced its syndicat-

guarantee on markets terms. Grieg Kapital AS has been

ed loans. In Q1 2022, Grieg Seafood finalized a re-

in compliance with the covenants throughout the year.

financing of the Group’s syndicated financial liabilities, with an aggregate of NOK 3 200 million in

GUARANTEE LIABILITY

five-year senior secured sustainability-linked loans

Grieg Kapital AS has guaranteed for a credit facili-

and credit facilities. The sole financial covenant

ty that Proximar Seafood AS has entered into with a

for the new facilities is a minimum recognized eq-

Japanese credit institution. Grieg Kapital AS is act-

uity ratio of 31%, excluding the effect of IFRS 16.

ing as the primary guarantor, which by 31.12.2021 added to JPY 1 749 000 000. Grieg Kapital AS has

In 2020 Grieg Seafood issued a Green Bond list-

entered into counter-guarantee agreements that re-

ed on Euronext (Oslo Stock Exchange). The bond

duce the company’s exposure to JPY 375 000 000.

matures on 25 June 2025. The bonds financial covenant is an quity-ratio requirement of minimum

The counter-guarantees are subject to financial cove-

30%, measured consistent with the Group’s equi-

nants:

ty-ratio financial covenants as defined in its syndi-

Ensure that the realizable market value of its finan-

cated loan agreement with secured lenders. Grieg

cial current assets at all times exceed the amount

Seafood was in compliance with the financial cove-

of its Counter Guarantee liabilities by a ratio of at

nants of the bond agreement at 31 December 2021.

least 2:1 ii) Ensure that the market value of its equity at all

Grieg Shipowning on consolidated basis (sub-group of

times exceed the amount of its Counter Guarantee

Grieg Maritime Group) is per year end 2021 required

liabilities by a ratio of at least 2.5:1

to have a minimum of liquid funds of USD 25 mill. / 5% of total interest bearing debt. A common covenant

The counter-guarantees has complied with its cove-

for all mortgage loans is that the Group must con-

nant’s requirements.

tinue to be controlled by the Grieg family and have a booked equity ratio > 25%. The companies have been in compliance with the covenants throughout the year. In addition to the guarantees listed above, Grieg Shipowning AS is providing guarantees in the amount of USD 19,3 mill. per 31.12.2021 for Grieg International II AS vessel, USD 8,4 mill. for the Grieg Shipping III AS vessel and USD 21,4 mill. for the GriegMaas Ultramax AS ves-

From the Boardroom

104 — 105

Note 17

Financial risk

The Group is exposed to a range of financial risks; mar-

CREDIT AND COUNTERPARTY RISK

ket risk (including currency risk, cashflow interest rate

The Group’s credit risk that counterparties do not have

risk, fair value interest rate risk and price risk), credit

financial ability to meet their obligations is relatively

risk and liquidity risk. The Group make use of financial

low due to solid customers, and a diversified portfolio.

derivatives to manage the financial risk.

Historical losses on receivables have been minor

MARKET RISK

amounts. The Group strive to mitigate the counterparty credit risk by making use of procedures and

Several of the Group’s companies hold significant fi-

systems and developing these on an ongoing basis. In

nancial investment portfolios, and changes in the

specific parts of the Group with a large customer port-

value of international securities and interest rates di-

folio, the risk is reduced by maintaining robust proce-

rectly affect the valuation of these. The portfolios are

dures for assessing counterparty risk and credit rating.

managed in accordance with long-term strategies and within defined mandates, also reflecting the Group’s

LIQUIDITY RISK

business principles.

The Group constantly monitors liquidity reserves

FOREIGN EXCHANGE RISK

and needs. The Group’s liquidity risk has increased, but strong liquidity and a focus on cash management

A large proportion of the Group’s revenues, assets and

ensure that there is sufficient liquidity to meet the

liabilities are in foreign currencies, mainly USD and

Group’s obligations when they mature.

EUR. Changes in foreign exchange rates therefore affect the group accounts presented in NOK. The Group

INTEREST RATE RISK

companies have strategies and procedures in place to

Interest rate risk arises in the short and long term as

reduce the exchange rate risk.

most parts of the Group’s debt are at a floating rate of interest. A change in interest rates will therefore im-

Grieg Maritime Group hedges expenditures in cur-

pact the interest expense. The application of interest

rencies other than USD through forward contracts. At

rate derivatives increases the predictability of the fi-

31.12.21 the company had entered into hedging agree-

nancing cost. A change in interest rates will also affect

ments for the use of currency swaps for USD 3.8m. To-

the returns on the investment portfolio and the rates

tal unrealized MTM value, not recognized in the bal-

on cash deposits. The Group’s strategy is to employ a

ance sheet at 31.12.21, was USD - 0.077m.

certain level of hedging using interest rate swap agreements to ensure low volatility in the Group’s interest

Grieg Seafood apply hedge accounting to foreign cur-

expenses.

rency contracts relating to non-current physical delivery contracts. The company do not utilize hedge

Grieg Maritime Group hedges part of its interest rate

accounting for its short-term foreign currency forward

exposure. Gains and losses arising from valuation of

contracts. At 31 December 2021, no hedging contracts

interest rate swaps in Grieg Maritime Group are rec-

through comprehensive income at fair value is present

ognised in the same period as the related interest ex-

for the Group, as these contracts are recognized at fair

pense.

value through profit and loss. At 31.12.21 the Grieg Maritime Group held interest rate Grieg Shipbrokers had 31.12.21 forward contracts to

swap agreements of USD 206m. Total unrealized MTM

hedge a total of USD 18.4m, with an unrealized not rec-

value, not recognized in the balance sheet, was USD -

ognised loss of NOK 0,5m.

4m.

GRIEG MATURITAS | ANNUAL REPORT 2021

Gains and losses arising from interest rate swaps in

Forward Freight Agreements (FFA) are from time to

Grieg Seafood are not subject to hedge accounting and

time used as a risk management instrument in order to

are recognized at the lowest of cost and fair value. At

smooth out freight volatility. The FFA contracts are set-

31.12.21 Grieg Seafood held interest rate swap agree-

tled as an adjustment of operating income. At 31.12.21,

ments with a total of NOK 1 660m. Unrealized gains

the Group had not entered into any Forward Freight

related to these agreements, not recognized in the bal-

Agreements (FFA).

ance sheet, amounts to NOK 36.5m. The interest rate swap agreements have a duration of four years. The

PRICE RISK

Company constantly evaluates whether these periods

The Group is exposed to fluctuations in spot prices for

should be rolled over.

salmon, which is mainly determined by global supply. Although the effect of changing prices is somewhat re-

FREIGHT RISK

duced through geographical diversification, long pro-

The Group’s ship earnings are to a large extent relat-

duction cycles make it challenging to respond rapidly

ed to cargo transportation contracts as a considera-

to change in marked prices. Salmon is primarily traded

ble share of the shipping activities are of an industri-

at spot prices. The price risk is partly hedged through

al character. The open hatch fleet’s earnings are to a

financial sales and purchase contracts. At 31 Decem-

large extent related to long term cargo contracts. This

ber 2021, the Group had financial salmon contracts for

implies that revenues are less volatile than in the spot

2021 totaling NOK – 20,6 million, of which all were sales

market, and that change in market conditions gener-

contracts, and physical delivery contracts recognized

ally have a delayed effect on the results. The Group’s

as liability, was zero. The unrealized loss per year end

dry bulk activity is on the other hand more exposed to

is recognized as loss, as the contracts are recognized at

general spot market movements.

the lower of cost and market value.

Note 18

Contingencies and subsequent events

INSPECTION – EUROPEAN COMMISSION

Additional details regarding the transaction can also

The European Commission DG (Director General)

be obtained from Grieg Seafood ASA Annual Report

Competition performed an inspection at Grieg Seafood

2021 on www.griegseafood.com

Shetland on the 19th of February 2019 to explore potential anti-competitive behaviour in salmon industry.

THE RUSSIAN INVASION OF UKRAINE

Grieg Seafood aims to be open, transparent and forth-

The invasion of Ukraine and subsequent sanctions has

coming and will provide all necessary information re-

already a global impact on food and food raw materi-

quested by the European Commission DG Competition

als prices, though salmon demand has not yet been

on its investigation. There is no new information re-

significantly affected. Further inflation in prices and

garding the EU investigation, and Grieg Seafood con-

distribution costs may impact demand going forward.

siders it to be probable that the investigation will find

However, as of the time of publishing this report, the

in its favour, which also is supported by legal advice.

expecation is that market prices will rise going forward.

GRIEG SEAFOOD FINALIZED A REFINANCING

For our shipping segment, while there could be some

OF THE GROUP’S SYNDICATED FINANCIAL

positive effects on earnings, the costs of operating due

LIABILITIES

to price increases as well as coping with cyber risk and

In Q1 2022, Grieg Seafood finalized a refinancing of

sanctions risk are expected to increase.

the Group’s syndicated financial liabilities, with an aggregate of NOK 3 200 million in five-year senior se-

The first priority for the Grieg Group will always be

cured sustainability-linked loans and credit facilities.

to ensure the safety and wellbeing for the Group’s em-

This represents the completion of the funding process.

ployees and our operations.

The new debt structure comprises a NOK 750 million term loan, an EUR 75 million term loan, a NOK 1 500 million revolving credit facility and a NOK 200 million overdraft facility. From the Boardroom

106 — 107

Note 19

Taxes

PARENT COMPANY Tax expense consists of:

Amounts in NOK 1 000 2021

2020

505 777

89 950

-506 225

-89 975

Basis of tax payable in P&L

-438

-13

Tax losses carried forward

Basis for payable tax in the income statement

2021

2020

Payable tax on this years result

Change in deferred tax

478

Tax expense

478

2021

2020

-2 684

-2 246

2 646

2 198

Ordinary result before tax Permanent differences Change in temporary differences

Components of the income tax expense

Deferred tax Taxable differences Tax-deductable differences Tax credit carried forward Deferred tax assets not recognised in the balance sheet

GRIEG MATURITAS | ANNUAL REPORT 2021

GROUP Tax expense consists of:

Amounts in NOK 1 000 2021

2020

Profit before tax

750 239

-877 876

Profit before tax, companies subject to shipping tax

452 772

-899 756

Profit before tax, companies not subject to shipping tax

297 467

21 880

17 127

-72 734

-20 020

-178 219

91 517

335 767

386 091

106 694

Tax payable, companies not subject to shipping tax

102 103

25 241

Tax payable in profit and loss

102 103

25 241

17 678

61 231

119 781

86 473

2021

2020

99 221

20 884

3 388

3 277

Other adjustments (treasure trove)

1 051

Total tax payable in balance sheet

102 609

25 212

2021

2020

3 727 328

3 039 481

-36 298

-59 308

-1 105 707

-967 493

2 585 323

2 012 680

Deferred tax on net timing differences

519 126

494 999

Unposted deferred tax assets

141 093

112 267

660 219

607 266

2021

2020

-536 004

-579 792

-197 207

-91 288

-17 345

-372 496

-279 067

-1 105 707

-967 493

Permanent differences Change in temporary differences Change in tax loss carried forward Basis of tax payable, companies not subject to shipping tax

Increase / (decrease) in deferred tax Tax charge for the year on ordinary result

Tax payable in balance sheet Tax payable, companies not subject to shipping tax Tonnage tax

Deferred tax Taxable timing differences Tax-deductible timing differences Tax loss to be carried forward Net timing differences

Net deferred tax in balance sheet

Loss carried forward Norway, companies not subject to shipping tax Canada USA Companies subject to shipping tax Total

Grieg Star Bulk AS left the tonnage tax regime in 2019. Unrealized currency losses that were not tax deductible in 2018 given the restrictions under the tonnage tax regime, was claimed to be tax deductible in 2019 when the company became subject to ordinary taxation. The tax authorities has notified that the deduction of unrealized currency losses will be reversed by NOK 69 875 810 which will reduce tax losses carry forward from 96 728 464 to NOK 26 852 654. Grieg Star Bulk AS has challenged the tax authorities’ position. A final conclusion from the tax authorities is expected to be received during 2022.

From the Boardroom

108 — 109

Note 20

Equity

PARENT COMPANY

Amounts in NOK 1 000

Share capital

Share premium reserve

Other equity

Total

1 124

409 763

3 651 581

4 062 467

Profit of the year

505 777

Dividend paid during the year

-168 750

-337 500

3 651 108

4 061 995

Equity - opening balance

Provision for dividend Equity - Closing balance

1 124

409 763

GROUP

Amounts in NOK 1 000

Share capital

Share premium reserve

Group reserves

Minority interests

Miority interests - contingent consideration 1

1 124

409 763

3 683 387

2 813 087

446 040

627 466

606 739

1 234 204

-337 500

-126 699

-464 199

-168 750

-60 606

-229 356

Currency translation differences included in net profit from discontinued operations

-31 625

-51 514

-83 139

Equity transactions and change in ownership share in subsidiaries

1 611

3 353

4 964

90 553

62 812

153 365

-5 529

-2 725

-8 254

3 859 613

3 244 447

Equity - Opening Balance Profit for the year Provision for dividend at year end Dividend paid during the year

Currency translation differences 2,3 Other changes Equity - Closing Balance

1 124

409 763

446 040

Relates to the acquistion of Grieg Newfoundland AS in 2020. For further details see note 24 Business combinations.

Currency translation difference gain previously included in the reserves, but transferred to gain on sale of subsidiary described in note 25.

Total

7 353 402

7 960 988

Currency translation differences: the effect of converting subsidiaries from functional currencies into NOK and mainly relates to subsidiaries witthin Grieg Maritime Group and Grieg Seafood Group.

GRIEG MATURITAS | ANNUAL REPORT 2021

Note 21

Share capital and share information

At 31 December 2021 the share capital of Grieg Maturitas AS consisted of 1 123 530 shares of nominal value NOK 1.

THE SHARE CAPITAL CONSISTS OF THE FOLLOWING SHARE CL ASSES: Class

Number of shares

Nominal

Book value

1 123 530

1,-

1 123 530

Ownership %

Ordinary shares

Benedicte WG AS

4,50%

50 559

Bjørnegløtt AS

6,04%

67 874

10,52%

118 142

Gran Sasso AS

6,04%

67 874

Joachim WG AS

4,50%

50 559

Klar Invest AS

4,96%

55 750

Kvasshøgdi AS

4,37%

49 111

Maneo Holding AS

4,96%

55 750

Nina WG AS

4,50%

50 559

Nyhavn Investment AS

4,96%

55 750

10,29%

115 599

7,49%

84 097

22,37%

251 347

Thomas WG AS

4,50%

50 559

Sum

100 %

1 123 530

Ordinary shares

The company’s shareholders are as follows:

Capelka AS

Pania AS Salthavn invest AS Suletind AS

Through the companies specificed above, the Board members Elisabeth Grieg, Per Grieg, Camilla Marianne Grieg,Elna-Kathrine Grieg, Nicolay Hafeld Grieg and Nina Willumsen Grieg and their families have control of 100% of the shares in Grieg Maturitas AS.

From the Boardroom

110 — 111

Note 22

Related parties

PARENT

Amounts in NOK 1 000 Operating revenue

Operating cost

Financial income 1

Financial expenses

Accounts payable

Current receivables 1

278

506 250

337 500

Transactions 1

Dividend from subsidiaries

GROUP

Amounts in NOK 1 000

Members of the board and managing director of the parent company, including their related parties, are with companies in the Group considered as closely related parties. Transactions and intercompany balances with Group companies are eliminated in the Group accounts, and is not mentioned below. Remunerations to Directors and Managing Director are presented in Note 4.

Associated companies Other related parties Total

Operating revenue

Operating cost

Financial income

Financial expenses

Receivables

Liabilities

1 689 223

1 428

29 070

12 035

156 818

154

8 423

23 761

1 701 257

156 818

1 582

37 493

23 761

Transactions with related parties are governed by market terms and conditions in accordance with the arms length principle. ACQUISITION OF GRIEG NEWFOUNDLAND AS Grieg Seafood Group’s acquisition of Grieg Newfoundland AS (99%) was completed on 15 April 2020. Grieg Newfoundland AS was 39% owned by Kvasshøgdi AS (owned by Per Grieg Jr and a shareholder in Grieg Maturitas). For further information on the transaction see note 24 - Business combinations

GRIEG MATURITAS | ANNUAL REPORT 2021

Note 23

Remuneration to auditor

Amounts in NOK 1 000

PARENT Specification of Group auditor’s fee*

GROUP

2021

2020

2021

2020

Statutory audit

8 138

6 507

Taxation advice

2 015

2 005

944

700

1 577

4 967

12 675

14 179

The amount above includes remuneration to other auditors with:

1 132

1 916

Group Auditor's fee related to discontinued operations included in the table above

2021

2020

Total Group auditor

346

Total other auditors

624

Total fees discontinued operations (excluding VAT)

970

Other assurance services Other assistance Total (except VAT) *Containing continued and discontinued operations

From the Boardroom

112 — 113

Note 24

Business Combinations

There were no business combinations in 2021 BUSINESS COMBINATIONS IN 2020 On 15 April 2020, Grieg Maturitas, through the subsidiary Grieg Seafood ASA (GSF) completed the acquisition of Grieg Newfoundland AS (GNL). At the acquisition date, 99% of the shares were transferred, while the remaining 1% is subject to a put/call option accounted for as contingent consideration. GNL holds ownership in a fish farming business under development in Newfoundland, Canada. As the Grieg Maturitas Group already held 39% of the shares through subsidiary Grieg Kapital AS, the acquired shares for the Group is the remaining 60% acquired from entities outside the Group. ABOUT GRIEG NEWFOUNDLAND The Newfoundland-project comprises licenses for fish farming in the Placentia Bay area in Newfoundland. The project includes a high-end fresh and saltwater Recirculating Aquaculture System (RAS) facility in Marystown Marine Industrial Park, close to Placentia Bay. The facility currently under construction includes a hatchery, nursery and a smolt unit. Further information on the acquired entity can be found in the Annual Report of Grieg Seafood ASA (note 6 to the consolidated financial statements) TRANSACTION Grieg Newfoundland was a project initiated by the Grieg Group and Per Grieg Jr. in collaboration with their Canadian partner. Per Grieg Jr. is a member of the Board in Grieg Maturitas AS, and through related party Kvasshøgdi AS held 39% of the shares in GNL now acquired by the Group. The transaction has been approved by the General Assembly in line with the section 3-8 of the Public Limited Liability Companies Act. The consideration is split into three parts - the net cash payment, the completion shares and contingent consideration.

GRIEG MATURITAS | ANNUAL REPORT 2021

Amounts in NOK 1 000

Cost of business combination

15.04.2020

Cash payment for the shares adjusted for leakage cost

70 935

Completion shares in Grieg Seafood ASA

124 575

Adjusted to fair value the transaction day

-28 332

Consideration transferred at closing Contingent consideration

96 243 167 177 446 040

Consideration business combination

613 217

Fair value of the shares held by Grieg Maturitas Group prior to the acquisition

349 017

Total cost of business combination

962 235

Total cost

962 235

Book value of equity, excluding goodwill Excess value to be allocated

78 629 883 605

CONTINGENT CONSIDERATION If certain production volumes are reached within the next ten years, additional payments are triggered. The additional amount becomes unconditional when GNL has reached a planned annual harvest volume of 15 000 tonnes, and the amount increases with volume until an annual harvest volume of 33 000 tonnes. The amount due is NOK 43 per kg for volumes between 15 000-20 000 tonnes, and NOK 55 per kg for volumes between 20 000- 33 000 tonnes, with a 4% per annum inflation adjustment in the period 2023-2029. Fair value estimate of the additional amount has been arrived at by using the DCF-model based on four different scenarios of volume development and the timing of this development. Volumes exceeding 15 000 tonnes require further investments in additional post-smolt modules, biomass, and seafarm equipment. The high probability of such investments being made have been incorporated in the scenario analysis. The maximum nominal amount is estimated to NOK 930 million +4% annual increase in the period from 2023 to 2029. The additional amount is settled in shares in GSF and/or cash. The sellers may require a cash payment of maximum 33.34%. Further GSF has the discretion to increase the cash portion up to 100% cash. If settlement is made in shares, the number of settlement shares is calculated based on the last month’s volume weighted average listed price from time the conditions are met. CLASSIFICATION OF THE CONTINGENT CONSIDERATION It is within the Group’s sole discretion to decide whether the expansion investments are to be carried out in line with the production plan. If stage two and three of the post-smolt facilities are not constructed within ten years, the additional milestone payments will not be triggered. On this basis the contingent consideration is classified as equity. Classification as equity reflects that the sellers continue to share the risk of the operations. Only if the first phase of the operation is successful, the seller will receive a payment when the next phase is entered into. Due to the materiality of the amount, the contingent consideration is presented as a separate component of equity.

From the Boardroom

114 — 115

Amounts in NOK 1 000

Allocation of the excess value (NOK 1 000)*

15.04.2020

Licences (incl. warranty licences)

748 017

Goodwill

604 419

Property, plant and equipment Indemnification assets Excess value assets Deferred tax Net excess value allocated

-493 230 24 400 883 605 883 605

Assets acquired and liabilities assumed Licences (incl. warranty licences)

762 171

Other intangible assets (incl. exclusivity agreement)

44 044

Property, plant and equipment

130 702

Indemnification assets

24 400

Other receivables Cash and cash equivalents Total assets acquired Deferred tax Long-term debt Current liabilities Total obligations assumed

12 779 30 628 1 004 723 584 639 62 269 646 908

Identified net assets

357 815

Goodwill

604 419

Net assets at acquisition

GRIEG MATURITAS | ANNUAL REPORT 2021

962 234

VALUATION OF LICENSES Aquaculture licenses are valued assuming an indefinite useful life. At the time of the transaction, GNL had been granted a long-term exclusive right to operate in Placentia Bay and received approval for 11 site holds in the area. An awarded site hold grants an exclusive right for the holder to the farming location in question, while the application process is in progress. When the application process is finalized and approved, the site hold is converted into a fish farming license. Without the granting of a farming license, the value of the site holds is deemed to be immaterial. At the time of the transaction, three of the site holds were approved and converted to fish farming licenses, in addition one freshwater license was approved. For site holds with a fish farming license granted at the transaction date, valuation is based on expected volumes using reasonable income and cost assumptions to the amount of NOK 213.5 million value added per license. For three additional site holds, the seller has granted a warranty as to the value of the license. If a farming license is not obtained for three additional sites within 31 December 2021, the seller is obliged to compensate for loss incurred by the non-receipt of the licenses in the period 2020-2021. However, if the licenses are granted within 31 December 2024, the compensation will be based on the calculated loss in the intermediate period up until the licenses are granted. The compensation is capped at NOK 122.5 million. The approval of the license is valid for five years until it must be renewed, but this is merely a formality if conditions in the licenses are adhered to. The exclusivity agreement states that GNL has the exclusive right to the area Placentia Bay for a period up to 20 years. We expect to be the sole or leading operator in the area, creating high barriers of entry to other operators. EXCLUSIVITY CONTRACT GNL has received a grant to operate in the production area in Placentia Bay, and an exclusivity agreement for 12 years plus an option of eight years. This means no one else can operate in this geographical area in this period, which is similar to a non-compete advantage. The book value of the cost for the work with the documentation and meetings required in the application process to receive the exclusivity agreement is NOK 38.7 million. The book value is considered a reasonable proxy for the fair value of the exclusivity. This exclusivity will be depreciated over the duration of the agreement. GOODWILL Intangible assets that do not meet the conditions for separate recognition are subsumed into goodwill. The project GNL has been going on for some years, where the sellers have developed the area for salmon farming and started construction of a high-end RAS facility, providing a going-concern value. The exclusive rights to be the sole salmon farmer in the Placentia Bay area long-term, reduces biological risk, with long distances and low interconnectivity between sites, thus providing synergies between the various components of the facilities. The sites and production areas are minimum 100-meter-deep, have good currents and optimal oxygen levels. Goodwill also covers the licenses pending approval. At year-end 2020, eight licenses are finally approved, while three are in different stages of application. Newfoundland is also close to the US market, which may create synergies with existing operations in British Columbia. Goodwill from the acquisition is depreciated on a linear basis over 20 years from transaction date. The nature of the goodwill, in particular relating to exclusive rights and pending licenses, represent long term values. The relatively long economic lifetime of the goodwill is based on achieving an appropriate matching of the depreciation charge and the economic benefits the goodwil represents. TAX For valuation purposes and calculation of deferred tax assets and liabilities, the tax rate is set to zero for all net excess values. The basis for this is that the expected present value of taxation on net excess values is close to zero.

From the Boardroom

116 — 117

Note 25

Assets held for sale and discontinued operations

All note disclosures in these consolidated financial

faith and set out the net debt and net working capital

statements for 2021 of Grieg Maturitas have been pre-

of the Shetland assets. The actual net debt and net

pared for the Group’s continuing operations if not oth-

working capital will be calculated in accordance with

erwise explicitly stated in the specific note disclosure.

prevailing accounting principles and set out in a

This Note 25 of the consolidated financial statements

closing statement.

has been prepared for the Group’s assets classified as held for sale and discontinued operations only.

According to the sales purchase agreement, the closing statement and the calculation of the final purchase

THE EFFECT OF NON-CURRENT ASSETS CLAS-

price was expected to be finalized by the end of Q1

SIFIED AS HELD FOR SALE AND DISCONTINUED

2022, as communicated in Grieg Seafood’s report for

OPERATIONS:

Q4 2021. Due to minor disagreements of the closing

In 2020, there were two disposal groups within the

balance, the final settlement is postponed to Q2 2022.

Group. Both of these were within the segment Grieg

As at 31 December 2021, the calculation of the gain/loss

Seafood and were classified as assets held for sale and

from sale of the Shetland assets has been based on the

presented as discontinued operations from 2020. As of

preliminary purchase price. The preliminary gain after

31 December 2021 both disposal groups have been

income tax resulting from the sale of the Shetland as-

divested. The two disposal groups were “Ocean

sets is NOK 487 million. The preliminary gain has been

Quality”

(GSF

calculated by deducting Grieg Matuiritas’ book value

Shetland), of which the assets in Ocean Quality were

of the Shetland assets on the closing date and trans-

divested within year-end 2020.

action costs from the sum of the preliminary purchase

and

“Grieg

Seafood

Shetland”

and the settlement of the Seller’s debt. In addition, the The assets associated with the GSF Shetland disposal

gain/loss calculation includes an amount of NOK 106

group were classified as assets held for sale at the bal-

million before tax and NOK 83 million after tax, relat-

ance sheet date year-end 2020. On 29 June 2021, Grieg

ing to the realization of currency gains on the settled

Seafood ASA entered into an agreement with Scottish

receivable and the investment in subsidiaries.

Sea Farms Ltd for the disposal og all shares in the holding company of the Shetland disposal group. The trans-

The consolidated statement of cash flow includes both

action was completed on 8 december 2021 - at which

the continued and discontinued operations. When pre-

point the Shetland disposal group were deconsolidated

paring the financial information of the two disposal

from the Grieg Maturitas Group.

group’s, intercompany balances and -transactions between the entities within the disposal group’s, as well

The enterprise value of the transaction was set to

with other Group Companies, have been eliminated in

GBP 164 million, assuming a normalized net working

the consolidated financial statement. Certain invoiced

capital and adjusted for net debt. On the closing date

intercompany services from Grieg Seafood ASA to

of the transaction, Grieg Seafood received a prelim-

Grieg Seafood Shetland have not been eliminated, and

inary purchase price for the Shetland assets of NOK

are included in the discontinued operations’ result.

2 087 million. In addition, Scottish Sea Farms Ltd

These costs are considered directly associated with the

settled a GBP intercompany long-term loan granted

assets held for sale, and will cease following finaliza-

by Grieg Seafood ASA (“Seller’s debt”). The prelimi-

tion of the sales transaction.

nary purchase price has been calculated pursuant to a pre-closing statement, which was prepared in good

GRIEG MATURITAS | ANNUAL REPORT 2021

PROFIT (LOSS) FROM DISCONTINUED OPERATIONS GRIEG SE AFOOD SHETL AND*

Amounts in NOK 1 000 OCE AN QUALIT Y

TOTAL

2021

2020

2021

2020

2021

2020

Operating income

951 334

968 729

3 084 108

951 334

4 052 837

Operating expenses

-782 122

-1 220 800

-3 058 240

-782 122

-4 279 040

169 212

-252 071

25 868

169 212

-226 203

4 420

-5 560

10 271

4 420

4 711

Profit before tax from discontinued operations

173 631

-257 631

36 139

173 631

-221 492

Estimated taxation

-56 625

82 368

-8 476

-56 625

73 892

Gain on the sale of the subsidiary after income tax

486 740

5 033

Profit for the period from discontinued operations

603 746

32 696

Operating profit - EBIT Net financial items

-175 264

GAIN ON THE SALE OF THE SUBSIDIARY AFTER INCOME TAX

5 033 603 746

-142 568

Amounts in NOK 1 000 GSF SHETL AND 2021

Sale/purchase price

2 087 494

Transaction costs

-26 950

Currency translation differences on investment in/loans to subsidiaries

83 139

Total consideration

2 143 683

Book value

1 656 943

Gain on the sale of the subsidiary after income tax

486 740

CLASSES OF ASSETS AND LIABILITIES OF THE DISPOSAL GROUP

Amounts in NOK 1 000

GRIEG SE AFOOD SHETL AND

OCE AN QUALIT Y

TOTAL

31.12.2020

Deferred tax assets

157 869

Other intangible assets

477 796

Tangible assets

501 666

Inventory and biological assets

474 315

Trade receivables and other receivables

139 516

112

139 628

855

898

1 752 017

155

1 752 172

78 517

-152

78 365

Current liabilities

196 396

970

197 366

Liabilities directly associated with the disposal group

274 913

818

275 731

1 477 104

-663

1 476 441

Cash and cash equivalents Assets directly related with the disposal group Non-current liabilities

Net assets directly associated with the disposal group

From the Boardroom

118 — 119

Independent Auditor’s report

GRIEG MATURITAS | ANNUAL REPORT 2021

Independent Auditor’s report

From the Boardroom

120 — 121

Independent Auditor’s report

GRIEG MATURITAS | ANNUAL REPORT 2021

From the Boardroom

122 — 123

GRIEG MATURITAS | ANNUAL REPORT 2021

Annual report Design/production Design/production Marte Leirvåg Marte Leirvåg Wenche Kjølås Wenche Kjølås Grieg Group companies Grieg Group companies Designed by Mission Designed by Mission

Photos Photos Ingvild Constance Festervoll Melien Navn på fotograf

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Grieg Group

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Grieg Seafood

From the Boardroom

45, 46, 47, 58, 74

Veronika Stuksrud

Tom Haga

David Engmo

Grieg Star

124 — 125

THE OCEAN CONNECTS OUR PEOPLE OUR BUSINESSES OUR FUTURE AND OUR PAST

Grieg Group Annual Report 2021

Articles inside

Directors Report & Group Result 2021

Grieg Group Resources

Grieg Maritime Group

Grieg Investor

Reflections From our Chair

Sustainability

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Grieg Seafood

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