Grieg Group Annual Report 2022

GRIEG MATURITAS - WE ARE GRIEG

Annual Report 2022

Dear Colleagues, Stakeholders, Partners, and Others

2022 has been a year of many eventful happenings in Grieg. Still, we are influenced by the fact that Ukraine is at war with Russia, not witnessing any solution to the illegal invasion which started in February 2022. Our hope is that the international community will end the war where millions of civilians are unfairly being driven from their country, and so many are fighting for their freedom. We are proud that the Grieg Foundation, which owns 25 per cent of the Grieg Group, has provided aid to children affected by the conflict.

2022 IN THE GRIEG GROUP

Thanks to our dedicated colleagues, we have achieved our greatest financial results of all time, leading to a solid foundation for future development and financial performance following our Group strategy. All our businesses are performing well, thanks to improved markets, more streamlined operations, and people bringing their competence and expertise together.

GRIEG MARITIME GROUP

Grieg Maritime Group represents ship owning, maritime innovation, recycling services and ship management, and delivered a strong financial result in 2022. They strive to be at the forefront of decarbonizing their existing fleet and exploring new solutions for the maritime industry. I am proud that they are challenging and pushing their company forward, knowing that shipping is one of the biggest contributors to the Grieg Group’s overall Co2 emissions.

We are already well ahead in our plans to build one of the world’s first ammonia tankers together with Wärtsilä, and through our partnership with the Peak Group, we strive to reduce Co2 in the short-sea segment, aiming to build 2-4 bulk carriers in our joint venture, Skarv Shipping.

GRIEG SEAFOOD

In 2022, Grieg Seafood, where the Grieg Group is the majority owner, delivered its highest-ever result, and harvested its higher-ever volume of farmed salmon. To achieve sustainable growth and improve competitiveness, Grieg Seafood focuses on reducing the time fish spend at sea, improving fish welfare, and providing data-driven decision support to their operations. Grieg Seafood will continue to provide healthy food for a growing population, using fewer resources and with a lower impact.

GRIEG INVESTOR

Capital markets have, throughout 2022, been affected by unprecedented times, witnessing an unstable world, increased inflation, and insecurity. I am impressed by how Grieg Investor have handled the uncertainty of the capital markets, along with obtaining the company’s growth, securing over 140 billion, under advisement, across customers. Together with their strong commitment to sustainability, I am confident that the company is well set for the future.

Elisabeth Grieg

CHAIR OF THE BOARD

GRIEG LOGISTICS

Embarking on a journey to digitalize the maritime industry and expand beyond national borders, Grieg Logistics delivered well according to their strategy last year. They have organized the company to meet future demands, both establishing a new office in Stockholm through Grieg Connect, and securing a collaboration with GreenH where the aim is to produce and deliver green hydrogen to the maritime sector, building on existing competence from Mosjøen Industriterminal.

GRIEG SHIPBROKERS

Despite unstable markets, Grieg Shipbrokers delivered outstanding numbers in 2022. They have continued to expand throughout the year, hiring new brokers in both Oslo and Bergen. Being the Grieg Group’s first company, established in 1884, it is impressive to witness an organization with such a long history being able to turn around, look ahead and build for the future. As a result, 2022 became an excellent year for Grieg Shipbrokers, ensuring they are well set for the coming years.

GRIEG KAPITAL

The development of Grieg Kapital has been remarkable to follow since its establishment in 2018, and throughout the years. In 2022 they expanded, now counting four employees. They have invested in aquaculture, technology, and renewable energy. They focus on sustainable solutions within these three segments, bridging our foundation from the maritime industry to start-ups that will potentially scale their solutions in the future.

SUSTAINABILITY – LICENSE TO OPERATE

Climate change is threatening nature, wildlife, and humans. If we intend to reach the goals of the Paris Agreement, we are in a hurry. According to DNV, Norway is only on track to cut ¼ of our targets by 2030. That is just not good enough.

As owners with a long history connected to the ocean, we believe we must be part of the solution, if we are part of the problem. Our competitive advantage within the maritime industry must not be taken for granted. Instead, the government and politicians should use our position to push the maritime industry toward net zero by 2050.

Partnership, capital, regulations, and sector-specific initiatives are key to success. We are proud of our joint venture with Arendals Fossekompani, North Ammonia, which aims to produce and deliver green ammonia, primarily for ship-owning companies. The same goes for our partnership with Bellona on reducing plastic from our seafood production, and how we work within Grieg Edge and the ZEEDs-initiative with partners from the maritime industry to decarbonize both deep-sea and short-sea transportation.

I sincerely hope that both the national government, EU, and IMO, will push for international and national targets, including support for innovation, green funding, and sector-specific innovation measures and tools to reach net zero by 2050.

OUTLOOK

It is impossible to predict the future, but we know uncertainties will continue to arise worldwide. As businesses, we must adapt to the new world order, navigate uncertainties, and continue to fight for a better world. We will all benefit from that.

On behalf of the Grieg Maturitas board, I sincerely thank everyone who impacts our joint accomplishment every day. I am grateful for all our dedicated colleagues across companies, all set to seize the opportunities ahead of us.

Our History Grieg Group

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

In 1884, Joachim Grieg established a shipbroking firm in Bergen, where the company continued to develope during the two world wars. In 1960 Per Grieg sr. joined the company and organized it into a specialized business. Today the Group is owned and led by 4th and 5th generation Grieg and consists of several companies worldwide.

The Grieg Group operates within seafood, shipping, shipbroking, maritime innovation, logistics, and investments. Across all businesses, we shall create lasting value through competence, experience and common efforts.

to meet the future as more resilient, more innovative and more sustainable. The ocean connects our businesses, our people, our future, and our past. For more than 139 years, we have lived by and with the ocean.

Our people are our most valuable resource, and we believe they are essential to building our success. Our 1691 employees operate in 8 countries, from Norway (headquarter) to the rest of Europe, USA, Canada and Asia.

The Grieg family owns the Grieg Group through their holding company, Grieg Maturitas (75%), and the Grieg Foundation’s nonprofit organization (25%). Operating revenue in 2022 was MNOK 11 144.

Our mission is to restore our oceans, and we are committed to the UN Sustainable Development Goals. In 2019 we incorporated the UN’s Sustainable Development Goals in our business strategy and revised our business strategy 2002

2008

2018

2020

2010

2017

2019

2022

Grieg International established.

Grieg Seafood established.

Joachim Grieg establishes ship broker business in Bergen.

Grieg Logistics established as a separate business unit.

Grieg Investor established.

take over.

Grieg Foundation established.

G2Ocean established, joint venture between Grieg Star and Gearbulk.

Grieg Connect established.

Grieg Green established.

2007 Grieg Seafood gets listed on the Oslo Stock exchange.

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

The Grieg Group celebrates 130 years anniversary!

Grieg Kapital established.

Grieg Star Group reorganized into Grieg Maritime Group.

Grieg Maritime Group wins Wista Diversity Award 2022

Board of Directors

Elisabeth Grieg CHAIR

Long-term leadership experience from the private sector and other organizations. Holds a degree from BI Norwegian Business School and the University of San Franscisco. Chair of the board at Norled, and member of the board at Talent Norge, Grieg Foundation, G2 Ocean and Grieg Maritime Group. First female presi-dent at the Norwegian Shipowner’s Association.

Degree in International Business from the University 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.

Per Grieg jr. BOARD MEMBER

MBA from INSEAD and a master’s degree in marine technology from NTNU. Several years of experience from the maritime sector and founded Grieg Seafood ASA in 2002. Holds the position as Chair of the board at Grieg Seafood. Board member of Bergen Chamber of Commerce and Industry and Proximar Seafood.

Holds a degree in Industrial Economy and Technology 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.

Alf-Helge Aarskog BOARD MEMBER

Elna-Kathrine Grieg BOARD MEMBER

MBA with a major in finance from the University of San Francisco and is a Certified Financial Analyst (CFA). She is Chair of the board at Grieg Maritime Group and has several years of experience from shipping and the maritime industry. Chair of the board at GC Rieber and leader of the election committee at DnB.

Holds a degree in Mathematics from NTNU, and is a senior executive, venture investor, and serial entrepreneur. Co-founder of the SW company Gture and co-founder and Chair of the board at the early phase investment company Gvalueinvest. Founded the Venture Fund Scale Leap Capital in 2022 where he is currently Managing Partner. Joined the board of Grieg Maturitas in 2019.

Alf-Helge Aarskog has outstanding experience in the marine and aquaculture industry, serving as the former Group CEO of Lerøy Seafood and CEO at Mowi. AlfHelge has a degree in Aquaculture from the Norwegian University of Life Sciences (NMBU) and holds the position as the board member of Samherji Fiskeldi, Innovafeed and Bluefront Equity, amongst others. He is also an Assistant Professor at the NMBU and has been a board member of Grieg Maturitas since 2022.

Degree from BI Norwegian Business School and has several years of experience from the maritime industry. Holds different board positions within the Grieg Groupsuch as Chair of the board at Grieg Foundation, and as board member of Grieg Kapital and Grieg Logistics. She is also a board member of Family Business Norway.

Camilla Grieg BOARD MEMBER

Nicolai Hafeld Grieg BOARD MEMBER

Nina Willumsen Grieg BOARD MEMBER

Rolv-Erik Spilling BOARD MEMBER

The Owner Company Grieg Maturitas

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

Larsen LEADER SUSTAINABILITY AND PUBLIC AFFAIRS

Former Secretary General at CARE Norway. Several years of experience from Norwegian Politics, serving as both president of the Norwegian Labour Youth, State Secretary in the Ministry of Foreign Affairs and Political Advisor to the Foreign Minister from 2005-2013. Board member at Grieg Foundation. Gry was hired as Interim CEO from April 2023.

Marte Leirvåg COMMUNICATIONS MANAGER

BA in Political Science from the University of Bergen and NTNU. Specialized in foreign policy, organizational development and communications. Elected representative in the City Council of Bergen and has years of experience working as a Communications Advisor with companies across several industries.

Wenche Kjølås CHIEF FINANCIAL OFFICER

MSC in Business Administration and Economics from Norwegian School of Economics. Experienced CEO and CFO with a demonstrated history of working with logistics, shipping, seafood and supply chain industry. Currently Chair of Vital Seafood AS, and Board member in Grieg Logistics AS and Rimfrost Holding AS. Extensive Board experience as Chair and Board member, from many industries.

Gry

A Tradition of Giving Back Grieg Foundation

Grieg Foundation is a celebration of our responsibility to create a more compassionate society. We don’t believe profit builds success, people do.

In 2022, Grieg Foundation had a special focus on vulnerable youth. We need everybody. Everybody needs somebody.

THE DALE OEN ACADEMY

through a focus on skills, joy, strengths and the ability to endure and reach personal goals.

OUR PURPOSE

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.

When World Champion Alexander Dale Oen died in 2012, his brother Robin, and his wife, Vibeke, decided to realize the dream they both had: Create an arena where children and adolescents can experience mastery and discover strengths.

The Dale Oen Academy offers a different school year for adolescents who for various reasons do not manage to follow the traditional school path. By providing a different arena, the Dale Oen Academy builds self-confidence

INGVILD HESTAD, MANAGING DIRECTOR

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.

With the belief that all humans have equal value and deserve the opportunity to pursue their dreams, no matter their culture and background. 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. Grieg Foundation is proud to support people who invest their talents in projects that create meaningful change and enable individuals and communities to create a better future.

All our work is anchored in the Sustainable Development Goals. In 2022, Grieg Foundation allocated NOK 135 705 000,- to national and international projects.

Grieg Foundation committed to a three-year partnership with Dale Oen Academy.

People at Grieg

Per Grieg sr.

Per Grieg Senior has never been in doubt about the secret of success in achieving the business adventure he has been part of creating.

THE CREATIVE ENERGY HAS ALWAYS BEEN THERE

Per Sr. has lived a long life and turned 90 31. January. His mind is sharp, and he keeps fit by cycling.

– I am now the oldest Grieg in the history of our family. I think that is quite an achievement.

– What is the secret?

– Luck, is his immediate reply, before he smiles and adds:

– And a generally healthy lifestyle. The advice and motto I always use is: Everything in moderation. I do not like excesses of any kind. All excesses are bad.

Per Sr. shows us around the office. The big glass windows provide a panorama view over the Vågen bay. There is no better view for a naval architect.

– I designed the office myself. I had to have it my way as so much of my time is spent here.

Per Sr. has many architects in his immediate family. Best known is his father, Per Geelmuyden Grieg (1897–1962), who designed the iconic Sundt building on Torgallmenningen.

– Did you ever consider becoming an architect yourself?

– I did, but I was not allowed to by my mother. She was convinced that we had enough architects in the family, he says with a smile.

He attended at the technical university in Trondheim, then known as NTU, where he studied engineering and qualified as a mechanical engineer and naval architect in 1956. After completing his studies in Trondheim, he worked for a few years as a shipbuilder at Det Bergenske Dampskipsselskap (Bergen Steamship Company) and Eriksbergsvarvet shipbuilders in Gothenburg.

In 1960 he was asked by his uncle, Halfdan Grieg, popularly known as Halla, whether he wanted to work as a shipbroker in the family business, Joachim Grieg & Co.

– When I was offered the job, I took a week to think about it. I actually had other plans based on my tech-

nical training, but I ended up accepting the offer, he says remembering his mother’s warning:

– I remember that she was worried about me doing it for the money.

IT IS AN OBLIGATION

He had to think seriously about what it was all about when he took over the helm of the family business in 1972. That was when he set the course towards what is now the Grieg Group with global businesses in shipping, seafood, logistics and investments.

– There were two important factors for me. One was to hand over the company to the next generation in a better condition than when I took over. But it was also about creating something lasting that other people can enjoy, whether through meaningful work, art and culture, or by giving back to society, he says, emphasising that it is not profit alone that defines success:

– It is about people. And that is an obligation.

– In what way?

– We exist for the employees, not the other way around, he says.

OWNERSHIP OF THE JOB

Per Sr. quickly realised that employees with an understanding of their role in the company and how their job should be carried out became employees who produced better and more.

– I remember that one of the first things I did was to say

to the brokers: «Before you take the phone, decide what you want to achieve.»

Gradually, he had strategy documents prepared and decided which areas of business to prioritise.

– We started a systematic analysis. What was the most sensible way of dividing our activities into different areas of business? And how should we organise things so that our employees understood what they themselves cost and produced? It was a difficult process, but a very necessary one.

Today’s Grieg Group is based on Per Sr.’s concept of maintaining a variety of business activities and responsibilities.

– Of course we have people who come and go, but I am proud to say that we are an attractive workplace. We have employees who have been with us for many years, he says and continues:

– We usually say that the employees are part of our extended family.

– Do you never get tired of talking about the employees?

– No, and it should be obvious why not. What can we as leaders and owners do on our own? We can have the occasional good idea. We might even feel strongly about

starting up an activity, but there is not much point in starting something without skilled employees who have the ability to think independently.

– We have been blessed, at least I have, not just by having good employees, but extremely interesting and motivated, talented people. Many of them have also become my close friends.

SEVERAL LEGS TO STAND ON

But success does not come by itself, and success and adversity often go hand in hand. This is also true Per Sr. When disaster struck, everything happened at once.

In partnership with the banker Per Waaler, he built up the successful shipping company Star Shipping in the 1960s. Technological innovations and specially designed cargo hatches made the ships extremely efficient and resulted in exceptional growth for the partners.

– On one of the few trips abroad where I did not accompany him, he was killed in a plane crash. He was on his way to Japan, and the accident happened during a stopover in Moscow. It was a huge loss and complete shock to everyone. We were the closest you could get to being twins without being related, he says.

Per Sr. soon learned that misfortunes seldom come alone. – Three of the walls around my business life came crashing down overnight in the first half of the 1970s.

The same year that the plane crash happened, Uncle Halla died. Times were tough, but we were lucky to have some extremely strong and reliable employees, in particular Bjørn Østervold, who also became my good friend. He took over as president of the shipping company.

The crisis was to last for 13 years but Per Sr. managed to save the Grieg Group from bankruptcy - just.

– I managed to pull myself through the crisis with my fingers on the edge of the table. We avoided receivership and met our obligations. Luckily, this period was followed by the golden 90s, he said and explained what saved the Grieg Group:

– We had several legs to stand on. We had insurance, Grieg Transport, and a shipbroking company, and we were constantly on the lookout for new opportunities. It is vital not to be passive in a crisis, otherwise things can go downhill fast.

A GREATER CAUSE

The creative streak in the Grieg family has always been there: Architects, entrepreneurs, and talented businesspeople.

And everyone who works in the Grieg Group, whether in aquaculture, shipping, or investments, contributes to creating values that strengthen the local community both in Norway and abroad. One thing is the billion-dollar amounts that benefit society through tax revenues, ripple effects for local businesses and jobs. In addition to this, the family’s foundation, Grieg Foundation, has donated more than NOK 700 million to good local and international causes.

– Support for children and teenagers has always been important for the Foundation, explains Per Sr.

The Foundation also contributes to a large number of projects in Norway. The projects that receive funding must have the potential to create change and strengthen the local communities of which they are a part. The Foundation has also helped to fund research and medical equipment, including at Haukeland Hospital.

– We do not want to be a foundation that just waits for

applications. We want to take the initiative to find good projects we can support.

Giving back to society has given Per Sr. an extra dimension to life.

– I was already concerned about contributing to a greater cause when I started as a shipbroker. I did not want traces of me to be in the bank books alone, and I completely agree with what Trond Mohn has said: Those who have not given do not know what they are missing out on.

– When you give to others, it is for a greater cause. In many ways, you are giving back to yourself. It feels good, he adds.

INNER DRIVE – AN ENGINE IN YOUR STOMACH

What is it that has given the Grieg family ever more wind in their sails after sea captain Joachim Grieg came ashore for good and received a shipbroker’s license in Bergen on 1 January 1884?

– Getting things to “move onwards” is a quality we are born with, I think. It probably comes from both families,

from both my mother’s and my father’s side.

– You once described your inner drive as an engine in your stomach?

– The expression originally stems from my uncle. For him it was not only positive. He died early and was probably an extremely stressed person.

For Per Sr. the expression is about making things happen.

– It feels as if many of us in the family have been born with an engine in our stomach, and it can be described as a form of “inner drive”, or unease, if nothing is happening that gives a sense of satisfaction, he says and comments:

– It also means constantly identifying new business opportunities.

NEW GENERATIONS

Per Sr.’s four children are all active in the day-to-day management of the businesses belonging to the parent company, Grieg Maturitas. Camilla, Per Jr., Elna-Kathrine and Elisabeth Grieg were all part of the generation change er that took place in 1999.

– I was advised against involving all the children, but luckily, I listened to my wife.

Per Sr.’s wife, Elna, passed away recently at the age of 88. Although she did not have an active role in the business, she has left deep traces in the Grieg Group.

– Do not even dream about becoming enemies, Per Sr. says, before continuing:

– That is what she said to our four children after the generation change. The reason why everything is still functioning well today and the reason why we have managed to achieve this, is largely due to my wife’s attitudes and how she instilled her own values in our children.

– Are you proud of what you have achieved?

– Yes, I am. It is not just that we have created a global business success, but even more important are the ripple effects our activities have created for Bergen and West Norway as well as for thousands of families at home and abroad, says Per Sr.

– All our activities are currently thriving, and for me as a 90-year-old to sit here and watch the business grow at the same time as I have had my 12th great-grandchild, and to know that everyone is fit and healthy: No, it is almost impossible to have that much luck.

“I was advised against involving all the children, but luckily, I listened to my wife.”

Sustainability at Grieg We Will Restore our Oceans

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.

GRY LARSEN LEADER SUSTAINABILITY AND PUBLIC AFFAIRS

In the Grieg Group sustainability and our commitment to the SDGs is integrated in our business strategy. For us, the 17 SDGs are interdependent and equally important. However, some of the sustainability themes are more relevant to the businesses we operate within, and it has therefore been natural for us to choose SDGs where we can have the greatest impact and where we also have the largest challenges at an industry level.

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, with a focus on employee health and wellbeing, inclusive economic growth, transparency, and accountability, and partnering to achieve 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 that are relevant for our business and our stakeholders. These goals relate specifically to SDG 4, 5, 9, 13, 14. We have set clear ambitions for all our prioritized SDGs. In 2021 we revised our objectives and KPIs at Group-level.

In 2022 we have given special attention to strengthening our internal reporting in the Grieg Group, based on the revised objectives and KPIs. The system gives us a complete overview of where we stand overall in the Grieg Group.

Another important priority in the Grieg Group in 2022 was to further strengthen our work on Human Rights. In the Grieg Group we are committed to respecting international human rights. Our Human Rights Policy outlines the Grieg Group’s commitment, approach, and responsibility to respecting human rights.

As a larger enterprise resident in Norway, the Grieg Group (parent company) is under the scope of the Norwegian Transparency Act. The Transparency Act shall promote enterprises’ respect for fundamental human rights and decent working conditions in connection with producing goods and providing services. It shall also ensure the public access to information regarding how enterprises address adverse impacts on human rights and decent working conditions.

In 2022, the Grieg Group and companies have done a considerable effort into implementation of the Transparency Act, including gap-analysis, risk-mapping and drafting procedures for and guidelines for mitigating and preventing possible human rights violations. We have also participated in many external meetings discussing human rights and business and have openly shared what we have done and challenges we face. Our main risk in the Grieg Group is in the maritime and aquaculture industries of our businesses. The main risks in the maritime industries are recycling of vessels, newbuilding, dry docking and projects and procurement.

The main risks in the aquaculture industry are fish feed and transportation services. Grieg Maritime Group and Grieg Seafood are addressing these risks in their operations. In the Grieg Group we will report on the Transparency Act by 1. july 2023. More information to be found at the Grieg Groups web: www.grieg.no.

In our sustainability work, partnership is key. In 2022 several existing and new partnerships have been developed. Our membership of UN Global Compact is of great value to us. The Grieg Group is also a signatory of the UN Global Compact’s Ocean Principles. In 2022 we have contributed and been part of several UN Global Compact initiatives. We are especially proud that Lars Erik Mangset, Leader of Sustainability in Grieg Investor, in 2022 was asked to lead a new expert group in UN Global Compact that will provide recommendations on how transformation plans for business actors should be designed. Transformation plans emphasise that we must move from words to action in the area of sustainability. In 2022 our commitment to reduce plastic pollution has continued to be a priority. We have followed the

Doing good is the obvious business opportunity

deliberations on a UN Treaty on plastic pollution closely and have participated in the business coalition for the treaty. Furthermore, we continued our three-year partnership with WWF through Grieg Foundation. The project aims to reduce waste by 50% in three ports in the Philippines, identify ways of scaling efforts globally, as well as identify new business opportunities and partnerships. In October 2022 our internal project group visited the Philippines and met with different stakeholders involved in the project.

OUTLOOK: 2023 AND FORWARD

We will continue our journey to make sure sustainability is firmly embedded at the core of our business, across the Group. We will continue to strengthen our internal reporting and further develop our work on sustainability with an emphasis on SDG 13 and SDG 14. The climate and nature crises are a significant threat to humanity, business, and society. That is why we are committed to helping our companies improve the industries in which they operate, thereby securing a more sustainable future for all.

To be able to reach the ambitious targets of the 2030 agenda and the goals set out in the Paris agreement we will continue to be part of networks with different stakeholders. We value the partnerships we have created at a local, national, and international level, both through the companies within the group and at a group level. Working together strongly increases our chances of reaching the ambitious targets of the 2030 agenda.

Our work on human rights will continue to have high priority. Even though we have done considerable work on this in 2022, respecting human rights in our operations is an ongoing process and we will continue to work on this internally in the group, and together with different stakeholders.

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.

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.

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.

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.

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.

Group Structure

Grieg Maturitas AS

Grieg Investor Holding AS Grieg Investor AS Grieg Kapital AS Grieg Holding II AS Rogaland Havbrukspark

Grieg Maturitas II AS Grieg Group Resources AS

Grieg 100% 45%

Eiendom AS Rensefiskgruppen AS

Ryfylke Rensefisk AS

Finnmark Rensefisk AS

Ryfylke Berggylt AS

Talgje Rensefisk AS

Austevoll Rensefisk AS

Grieg Gaarden AS

Grieghallen Parkering II AS

Grieghallen Parkering AS

Silves Odissey Lda

Portalo AS

Grieg Aqua

Grieg Aqua AS

Seafood

Grieg Seafood ASA

Grieg Seafood Rogaland AS

Grieg Seafood Rogaland Sjø AS

Grieg Seafood Canada AS

Grieg Seafood BC Ltd.

Grieg S. Sales North America Inc.

Grieg S. Premium Brands Inc.

Grieg Seafood Finnmark AS

Grieg Seafood Finnmark Sjø AS

Grieg Seafood Norway AS

Grieg Seafood Sales UK Ltd.

Grieg Seafood Sales USA Inc.

Grieg Seafood Newfoundland AS

Grieg Seafood Newfoundland Ltd.

Grieg Shipbrokers

Grieg Shipbrokers KS

Grieg Shipbrokers Valuation Services AS

Grieg Shipbrokers Ltd

Grieg Project Finance AS Grieg Shipbrokers Asia AS

Grieg Shipbrokers Asia Pte. Ltd.

Grieg Shipbrokers Asia Ltd. AS Joachim Grieg & Co

Grieg Logistics

Grieg Logistics AS Grieg Connect AS

Grieg Connect AB

Grieg Strategic Services AS

Scandinavian Harbour Services AS Mosjøen Industriterminal AS

Grieg Maritime Group

Grieg Maritime Group AS Grieg Edge AS

Grieg Ammonia Distrib. Vessels AS

Grieg Green AS

Grieg Green Consulting and A. Ltd.

Grieg Shipholding AS Grieg Star AS

Grieg Star 2017 AS

Grieg Star OH Pool AS

Grieg Star Bulk Pool AS Grieg Shipowning AS Grieg Shipping II AS Grieg International II AS Grieg Shipping III AS Grieg Star Bulk AS

For more information see note 9 25% 75% 55% 100% 100% GRIEG MATURITAS | ANNUAL REPORT 2022 28 — 29 THIS IS GRIEG

Grieg Kapital

Grieg Maritime Group CEO Comment

EXCEPTIONAL PERFORMANCE DURING UNCERTAIN TIMES

As we laid the final touches of last year’s Annual Report, the Russian invasion of Ukraine had shaken us out of retrospecting, and it was difficult to see anything but the present.

A year later, the world has been witness to the pain and suffering every war brings. We dearly hope that lasting peace can be found. The Ukraine conflict has also served to amplify the discord between China and the USA, with differing views becoming even more pronounced.

Robust leadership in uncertain times is essential. Our philosophy is to be proactive and to consider different scenarios and mitigation planning. We feel a degree of ballast has been achieved by working through the Covid-19 pandemic. Yet it is challenging for the world to deliver on the global cooperation needed to solve climate change when polarisation, popularism and conflict work to make more barriers between people.

In times of war and uncertainty, we have found that focusing on our work and solving the issues we are responsible for is a welcome distraction from world events. Similarly, the charity Grieg Foundation owns 25% of Grieg Maritime Group, and we are extremely grateful for the foundation’s work to provide aid to the children affected by the conflict. Based on the experience

from 2021, we planned for another year with reasonable shipping rates. We expected 2022 to be a solid year that would continue the trend from 2021 for stable markets. Instead, the dry bulk market peaked. We hit a period of imbalance in supply and demand, and the resulting utilisation rates of the global bulk fleet led to record earnings. 2022 would be our strongest performance on record, with a profit before tax of MUSD 155,6. A strong year has provided precisely the financial security we need to reinvest into our business, essentially making up the gap in losses we ensured before 2021.

Our performance in 2022 would not have been possible without the extraordinary efforts of our people and partners. I am extremely proud of the teams working in Grieg Maritime Group and our joint venture G2 Ocean.

Our commercial teams in G2 Ocean delivered recordbreaking performance, and it was exceptionally pleasing to see Ship Management and our seafarers rise to the challenge. Despite ongoing complexities related to Covid-19, geopolitical tensions and a busy market, we delivered safe, predictable operations. Grieg Star reported their lowest ever unplanned offhire rates, and we embarked on the most extensive dry docking program in our history, delivering on time and on budget. Safety is our top priority, and we had a very strong safety performance, but we always strive to be better and will continue that trend of continual improvement in 2023.

We are acutely aware of our challenges and responsibilities. In 2008, we committed to the UN Global Compact’s principles, and we stay committed to those and to the Sustainable Development Goals. Our underlying challenge is that our deep sea fleet still runs on carbon-based fuels.

Throughout 2022, our team has worked alone and with partners to find decarbonisation solutions. In this, we have the perfect partners in G2 Ocean and Gearbulk, sharing knowledge and resources to reduce the carbon emissions from our current fleet. Through the Norwegian Shipping Programme, we have been given a chance to look at ammonia as a possible fuel in a retrofit of our L-class. We are truly grateful for the cooperation with the over 20 entities supporting us in the GSP ammonia pilot in 2022.

Though we do not know for sure what the future fuels will be, there will be a global need for greatly scaled-up renewal energy to produce them. With more available energy as a pre-requisite, we strongly believe in ammonia as one of the viable alternatives that are worth deeper study and pilot testing. In Grieg Edge, we continued working on the MS Green Ammonia and developing ammonia production facilities through our joint venture with Arendals Fossekompani, called North Ammonia.

MATTHEW DUKE

CEO, GRIEG MARITIME GROUP

Our 2022 addition to the Grieg Edge portfolio is Skarv Shipping Solutions, a joint venture with the Peak Group. Skarv is looking to develop carbon-free shipping solutions for the short-sea segment. It also gives deep-sea shipping significant knowledge and a vital testing arena.

We continue our philosophy of strengthening and building the strongest possible core whilst using our Edge as a place to test ideas and new business ventures that can provide new additional, profitable and sustainable business segments for Grieg in the future. The overall aims are to balance the cyclical nature of our core deep-sea business and provide a positive contribution towards the development of new technologies.

We believe circularity in the shipping industry is far more than only the recycling phase, and we are developing Grieg Green with the wider market in mind.

I am deeply impressed by the dedication and efforts of our people. We must provide them the best opportunities to thrive in a high-performance environment. Organisational and personal development has been a critical focus area for us. The previous twelve months have been very much dedicated to developing our employees and leaders. We believe this to be one of the very best investments we can make and will continue the same into 2023.

Our focus on the people aspect of business has not gone unnoticed. We are very grateful to have received two international awards in 2022.: The Youngship “Young Corporation Award” and the Wista “Corporate Diversity Award”. This recognition gives our team a boost and hunger to continue delivering on our strategy related to equality, diversity, and inclusion.

I would like to end this year’s CEO message by thanking our dedicated, loyal and resourceful employees and seafarers. In turbulent times their performance and dedication are something we are incredibly proud of.

Thank you all.

People at Grieg

Yngvild Sæther

For over 30 years, the Grieg Group has been Yngvild Sæther’s (53) career path. She describes a stable but challenging workplace with good values. And, of course, great colleagues. It is also where she met her husband.

– I actually met him at the inauguration party for the Grieg Group offices, Grieg-Gaarden, here in Bergen, Yngvild Sæther begins

– That was back in 1991. This year we have been married for 27 years and have three children together.

For more than 30 years, the Grieg Group has had a big impact on her life, both professionally and personally. Her mom worked here, and that is how she first landed summer jobs and extra jobs here as a student.

– During my time at Grieg Maritime Group, there has been an enormous development in the company. When I started working here we managed five ships. Now we manage 25, but our work days were just as busy back then, she lively explains.

Thinking back to a time without the Internet, things were done in a very different way. Telex and fax feels like ages ago for the accountant, now in the midst of a digitalisation process, switching to a cloud-based accounting system.

WORKING HER WAY THROUGH THE ORGANIZATION

She describes herself as a veteran at Grieg, being here for more than three decades, working her way up from temporary jobs to permanent positions. She first started at the front desk and the switchboard in Grieg Gaarden, and is currently working in the accounting department in Grieg Maritime Group AS.

– After working as an Office Service assistant and Safety & Quality secretary, I have seen many sides of the organization, which is a strength when you work with accounting. Now I mainly work with operational accounting for the ships. We have a natural cycle with monthly closings and quarterly reports that form our workdays, in addition to other ongoing assignments.

MORE THAN JUST A PLACE TO WORK

Spending pretty much all of her work life with one employer, would not have happened without a love for both the workplace and her colleagues.

– Grieg is a good place to work! I like what the company represents. I’m proud of the Grieg Foundation, and especially the contributions to culture, health and research.

She also describes her coworkers as friends. They even have a hiking group that tries to meet up every Wednesday after work to hike the mountains surrounding Bergen.

– The Grieg Group values physical activity, and I have a lot of active colleagues. A great deal of my colleagues run marathons, and the uphill races in the Bergen mountains. But when they ask how long time we spent getting up to one of the mountains, I simply reply: – «Vi går ikke på tid, vi går på tur», translating to something like “We don’t care about the pace, we care about the hike”.

Yngvild Sæther

• 53 years old

• Grieg Maritime Group

Grieg Shipbrokers

Grieg Shipbrokers was established in 1884 as the first company in the Grieg Group. Our story began when Joachim Grieg established his shipbroking firm in Bergen and we have continued to develop since, proud to have a strong foundation connected to the ocean.

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.

Our company has gone through several milestones in 2022. We achieved growth last year generating significant new business within our core areas. Our people are key in building our success. We are proud to deliver an increased revenue of NOK 171,4 million in 2022, up by 6 & from 2021, and a remarkable 68 % compared to 2020.

Colleagues in both Bergen, Oslo and London has been highly active in sales, financing, period business, and spot transactions, all of which have yielded positive results throughout the year. We have also welcomed several new colleagues which I am glad to get onboard.

In addition, the establishment of our subsidiary, Grieg Project Finance AS, has enabled Grieg Shipbrokers KS to expand its business activities to include project financing.

Grieg Shipbrokers has undergone a significant turnaround in recent years, thanks to our focused approach to core business areas. We are well positioned with a young and motivated team, with an average age of 37 years, and low staff turnover. Building on a solid foundation we are well set for the years to come.

MORTEN MÜLLER

CEO GRIEG SHIPBROKERS

People at Grieg

Mari Koseki

Mari Koseki is fully aware that she’s not always right but dares to learn from mistakes, which is probably one of the most important qualities to have as an analyst at Grieg Shipbrokers.

HOPING TO INSPIRE WOMEN TO CHOOSE THE MARITIME INDUSTRY

– What I find most challenging about my job is that there is no right answer. As an analyst, you have to be absolutely confident in what you say although you are not hundred percent sure what will happen, says Mari Koseki.

Still, the thirty-year-old Japanese woman is passionate about shipping market analysis.

At Grieg Shipbrokers’ research department in Oslo, she primarily assists shipbrokers with their cases and projects, providing market analysis and implications, which often

to be presented to clients. She spends hours in front of her wide screen interpreting and analyzing the movements in the shipping market.

STRATEGIC THINKING AHEAD

Mari makes up half of the company’s research team, the other half is her colleague Joachim Erlandsen. The team covers core international shipping markets within all categories of Tankers, Chemicals and Gas, and Dry Cargo.

– Shipping is very dynamic and international, and at the same time, I like to work analytically with numbers. I always need to consider what the argument is based upon, what the consequences will be, and what’s going to happen. I must think ahead, Mari says and continues:

– Still, people always have different opinions and arguments. And you are not necessarily right all the time, she says and laughs, while pointing out that it can be difficult to choose what to say, based on her research.

With a team consisting of only two people, they each have a lot of responsibility for the market they cover.

– Of course, I ask questions, but we are experts in the market we cover and do not necessarily have too much knowledge in the other sectors. So, it is not like we exchange models and so on. It is quite a lot of responsibility to know that you are the one in charge of the market. And you must own what you do, she emphasizes.

LOVE OVERSEAS

– The first phrase I learned in Norwegian was “Ikke sant?”, Mari says.

The phrase translates to the English word “right”, commonly used at the end of a sentence, and indicates a need for feedback or confirmation.

– I learned that this is a very convenient phrase to use. Whenever I don’t understand something, I just say “Ikke sant?”, and then usually things go well, haha!

In short, love is the main reason she ended up moving from her home country, Japan, to Oslo in Norway.

– I met my husband during my study in Minnesota, USA when I was there as an exchange student. Our goal was to move and live together one day in Norway, and I thought it was a smooth transition to study and get a master’s degree at the BI Norwegian business school. After being in a long-distance relationship for six years, she moved to Oslo with Peter in the summer of 2018.

A COMPANY THAT STANDS OUT

Mari’s first meeting with Grieg Shipbrokers was when Morten Muller (the current CEO of the company) visited the company she then worked for in Tokyo. She was working for a Japanese leasing company for three years as a senior associate, executing ship financing deals for international shipping operators and owners.

During her study years at the BI Norwegian business school, she had an internship as an analyst at Grieg Shipbrokers.

– I was always interested in the shipping industry, Grieg Shipbrokers is a renowned company with a great tradition and track record. I thought it was a great opportunity for me to start a career in Norway at the company, says Mari.

A year later, she joined her colleagues full-time at the office with an exquisite view over Aker Brygge. Working in a global business based in Oslo is quite interesting, Mari thinks. Especially in shipping.

– Norway is a small country, but when it comes to shipping, it has quite a large presence in an international business, and the country is at the center and forefront of the maritime industry. In addition to that, Norway is

About Mari Koseki

• 30 years old

• Master’s degree in marketing/marketing management from BI Oslo

• Grieg Shipbrokers, located in Oslo

very good at taking initiatives on sustainable solutions in the shipping sphere, it definitely is an interesting time.

When it comes to working culture, Mari thinks Norway and Japan are quite similar in many ways yet different in some others.

– For example, I think Norwegian people work hard, and so do Japanese people. However, in my country, people do work long hours but not necessarily in an efficient manner.

–The main difference between Norway and Japan is the flexibility at work, she believes. With the flexibility, it’s easier to adapt your everyday life outside work, and that way, it is more sustainable in the long-term, Mari says.

«Å, SÅ KOSELIG!»

For Mari, the flexibility will probably come in handy in the upcoming months and years ahead, as she is expecting her first child.

Joachim was the first colleague she revealed her pregnancy to.

– He was happy and told me: «Å, så koselig!», says Mari, meaning «Oh, that’s nice!»

–Then, I really knew that I’m working in a good company. When I told my other colleagues, they were all so supportive, she adds. – I am not so sure if such positive feedback is what to expect if I worked in Japan. So, I was

very positively surprised to learn how my colleagues responded.

– And in Norway, you are expected to return to work after maternity leave, it’s not like in Japan where you almost have to quit work for good when you become a mother. So, I feel assured knowing there is a place for me to come back to.

LEARNING BY DOING

– How will you embrace the role as a parent, you think?

– Hmm…I might have to read up on books and articles on how to raise a child before I can answer that question, haha!

Obviously, her analytical skill and humble self-awareness are not mere working tools, they are embedded in her:

– There’s no right answer or a perfect recipe on how to be a parent. You have to try and learn as you go, just like my job, she concludes.

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.

Following up on last year’s strategic decision to rearrange our business model, and become more robust and agile heading into the future, we want to shape the future of logistics by being a trusted logistics partner. By bringing together industry knowledge, digital solutions, and extensive experiencing to make our customers business more efficient and sustainable, we are well set for the future. We help our customers to get greener, by getting smarter.

In Grieg Logistics, our top priority is creating value for our customers and partners and nurturing our vital customer and partner relations.

STIG TRYGVE ANDERSEN CEO, GRIEG LOGISTICS

In 2022, several significant developments and collaborations affected our company positively, simultaneously as an upscaling of Grieg Connect has optimized logistics across the maritime sector. That is good news for our owners – and the environment.

That makes it a pleasure to be a part of the Port of Ahus’ gradual digital transformation in recent years, the first port in Sweden to implement all of Grieg Connect’s modules in our cloud-based port system. We are delighted to contribute to strengthening the Port of Ahus’ logistics flow and boosting competitiveness.

The new system, scheduled for full operation by the end of 2023, aims to simplify working methods and enhance user-friendliness by facilitating data sharing and collaboration between the port’s employees and customers.

As Fredrik Åsare, CEO of Port of Ahus, says:

– The industry is rapidly digitalizing, and it is essential to have systems that can easily integrate with the systems of customers, partners, and authorities.

The year 2022 saw the establishment of a significant, long-term collaboration with Esso, aiming to ensure safe and effective port and terminal operations throughout Norway. Starting April 1, 2023, Grieg Logistics will provide a unique set of management systems, mobile apps and data services, and we are excited to be a vital part of the digital transformation ahead.

We are also pleased to partner up with GreenH AS and Gen2Energy to pave the way for green hydrogen production and distribution along the Norwegian coast in the years to come. They both develops green hydrogen infrastructure for the maritime sector, transport and industry, which heavily contributes to the world’s CO2 emissions. Therefore, we are particularly pleased to contribute with solutions to secure zero emissions in these sectors by 2050.

The foundation of our business strategy is embedded in the UN Sustainable Development Goals. However, in addition to the Grieg Groups’ foundation and stretch

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.

Our mission is to create results through innovative and sustainable logistics for our customers and partners. Summing up the year 2022, we are proud to be able to play a crucial role in the digital, technological and green transformation in almost every port and terminal in Norway – now also in the Nordics

Through our investments and partnerships during 2022, we demonstrate our strategic aim and ability to be an even more significant part of the digital and green shifts in the maritime industry – by providing advanced technology to partners and customers across sectors and countries. Our mission is to create value through innovative and sustainable logistics solutions for our customers. Now and in the future.

Grieg Seafood

ANDREAS KVAME CEO, GRIEG SEAFOOD

2022 was a historic year for Grieg Seafood. In our 30 years, we have never achieved a higher Operational EBIT, seen a stronger market or harvested higher volumes in our existing farming regions. I want to sincerely thank all of my colleagues in farming, sales and support functions for their hard work and efforts throughout the year.

In recent years, Grieg Seafood has reached several of our strategic milestones, with the aim of re-shaping the company for future value creation. In 2020 and 2021, we repositioned Grieg Seafood to the geographies where we see the largest potential for sustainable growth: we sold our Shetland operations, and established a new production region in Newfoundland in Eastern Canada to complement our operations in Western Canada. In 2022, we transferred the first fish to sea farms in Newfoundland, and we plan to harvest the first fish during the autumn of 2023. From this year on, the move will allow us to serve the booming North American market with locally farmed salmon from both Canadian Coasts, without relying on expensive and carbon intensive air freight. Similarly, we are positioned as a reliable supplier to the strong European market from our Northern and Southern production regions in Norway.

Demand for salmon has soared since the Covid-19 pandemic ended, and the outlook seems bright, despite a more challenging economic situation in many countries. We see positive effects of having our own in-house sales organization, which enables production and sales to work in a more integrated fashion and increase the value created from our fish.

Biology remains challenging in our production regions. We are working on measures on many levels to improve biological control. We are particularly focusing on measures to improve fish health and welfare. We have also invested heavily in post-smolt and digital tools to enable more preventative farming practices. During 2022, our belief in “post-smolt” production, a technology that enable us to shorten the time our fish spend in the ocean, has been strengthened. We have come furthest with

our post-smolt strategy in Rogaland, with post-smolt investments both on land and in closed-containment facilities in the ocean. Here, we clearly see that postsmolt increases survival, strengthens sea lice control and reduces the number of sea lice treatment needed in the ocean phase. In other words, this technology is improving both profitability and sustainability.

Our aim is to keep investing in innovation and new technologies to improve the industry and make it more profitable and sustainable, with a reduced footprint and greater fish welfare. In Norway, our ability to deliver on this goal at the pace we would like to see depends on how the suggested resource tax ends up. We hope the country’s parliament will amend the proposal and ensure that we will still be able to develop the industry in local communities along the Norwegian coast also in the future. In BC, we have welcomed the “transition” of the salmon farming sector. In this process, the Government is working with the industry, First Nations and

other stakeholders to improve the sector’s performance, with a particular focus on reducing interactions with wild salmon.

We live in uncertain times, moving from one global crisis to another. Nobody can predict what the future holds. But I am confident that food from the ocean will play an increasingly important role, especially if the seafood industry keeps innovating and improving. And we have no intention of doing anything but that

Grieg Investor

After almost two years of pandemic and unrest, we had high expectations for 2022 and a hope for brighter times. The year started promisingly with the lifting of pandemic restrictions and Norway’s gold capture in the Olympics but was soon overshadowed by Russia’s attack on Ukraine and economic challenges such as the electricity crisis, price crisis and interest rate shock. Inflation increased, and people’s purchasing power fell. It was a year characterized by conflict and a controversial World Cup in Qatar.

TIRIL JAKOBSEN CEO, GRIEG INVESTOR

There is still significant uncertainty related to economic growth in the coming time, with high levels of debt and rising interest rates both in the world and in Norway, which affect household finances. Prices rose faster than wages in 2022, and many expect lower economic activity. The big question we all hopefully ask ourselves is whether we will have a soft landing and a mild recession.

2022 has been a challenging year for our customers. Balanced portfolios experienced falls in the stock and bond markets and returns almost as weak as during the financial crisis in 2008. Nevertheless, there have been few signs of a crisis mood, and Norwegian investors have been somewhat shielded by a stock market that has fared well compared to other countries.

The extraordinary aspect of 2022 is that the global and Norwegian bond market had its weakest year “ever”. Whether we measure annual returns or declines in value from top to bottom, the development is the weakest since 1776. In the causal picture, we see an unexpectedly high inflation that no one was able to predict and a subse -

I In 2022, a new global uncertainty following the Russian invasion of Ukraine emerged, sending shockwaves into the economy and financial and stock markets. That implied that ESG came high on the debate agenda, which allowed Grieg Investor to shine an even stronger spotlight on sustainability.

quent increase in interest rates from the central banks as a consequence. With a reduction of inflationary pressure and economic activity as a backdrop, a desire emerged from the central banks for more volatile financial markets. Financial markets are now experiencing zero interest rates, and the need for risk to achieve returns has turned into a world where interest rates have made low-risk investments more relevant.

The rise in interest rates meant that value stocks beat growth stocks to such an extent that we must return to the “IT bubble” to find a corresponding difference. Highly valued companies within IT, communications and cyclical consumption were hit hardest. “Green equity” and funds with a pronounced sustainability profile had a tough year. Still, investments in renewable energy, climate and environmental funds, and not least the energy crisis in Europe with the subsequent acceleration of investment in renewable energy, softened the blow somewhat.

It is nevertheless a bright spot that negative returns in both the equity and bond portfolios rarely occur two years in a row, and the prospects for returns in the interest rate markets are better than they have been for a long time. The interest rate peak is expected to be reached in the first half of 2023, and the central banks’ fight against inflation may contribute to better opportunities for diversification in balanced portfolios in the future.

2022 was a challenging year for sustainability investors, but we are optimistic and expect sustainability to become an increasingly important part of investment strategies moving forward. The war in Ukraine created an energy crisis and provoked a demand for defence materials and weapons. It resulted in a multifaceted debate about ESG – and thus, a need to clarify what ESG is and will be in the coming years. Our customers are concerned with a wide range of issues related to sustainability, and Grieg Investor itself participated in the debate in several arenas last year. The world is

facing significant challenges related to sustainability, and our work is not only about understanding how best to position ourselves to ensure a good return but also to inform and make our customers aware of their footprint as investors.

Our ambition to be Norway’s leading advisor in sustainable investments has been rooted in our overall business strategy since 2016. Sustainability is an integral part of our three core deliverables related to asset management: Investment strategy, Manager Selection and Reporting. Grieg Investor puts transparency high on the agenda, which led to a separate sustainability module in Grieg Enigma being developed in 2016. We launched an upgraded version at the start of 2022, which helps to answer the question many of our customers ask themselves: “ What is the climate risk in my portfolio?”.

Our focus on sustainability and ESG means that we work actively with both E, S and G on behalf of our customers

daily. This places high demands on the competence of Grieg Investor’s employees. Therefore, we significantly expanded and strengthened our sustainability team with several substantial grants in 2022.

The uncertain times we experienced in 2022 continue into the new year, but certain things stand firm through changing circumstances: Our guiding stars are technology, people and culture. A combination of the best of man and machine, which gives us absolute faith in our ability to continue to provide our customers sound advice - and at the same time, be an industry leader by how we work in 2023 and the years to come.

People at Grieg Fredrik Wilander

From day one, Fredrik Wilander has felt at home at his workplace. It’s all about being humble and respectful, he assures.

– A former colleague of mine always talked about the «barn smell». He said that when you come to a new farm, you can feel the barn smell, and either you like it, or you don’t. Of course, it doesn’t smell like a barn in our office, but the idea is the same; when you come somewhere, you either get a warm, fuzzy feeling from being there, or you can feel that something is not quite right, says Fredrik Wilander (43).

On his first day at work, the Research Director at Grieg Investor had no doubt:

– The «barn smell» was very good here, says Fredrik.

– SKILLED COMPANY

The father of three from Gothenburg in Southern Sweden smiles as he glances at Grieg Investor’s open office landscape in Oslo. Heads in deep concentration in front of their respective screens, quick fingers clattering on the keyboards. It’s hectic but still peaceful in the bright office space at Aker Brygge.

With a doctoral degree in economics, Fredrik has built a solid career in asset management. Since moving from Stockholm to his Norwegian girlfriend in Oslo in 2007, he’s worked in some of Norway’s largest finance companies.

In 2019, he was employed by the company he’s always regarded as a leading Norwegian financial adviser: Grieg Investor.

– I knew that it was a skilled company and that the social working environment was good. The Grieg Group also has a clear profile around sustainability and gender equality, the forty-three-year-old emphasizes.

Today, he’s heading the fund selection effort at Grieg Investor by selecting global and Norwegian asset managers that they recommend their clients to invest with. The working days vary between customer contact, meetings with colleagues in the Advisory and the Research teams, and following up with existing external asset managers and potential new ones. At his desk, he operates with ten-digit numbers on his computer screen.

COMPETITIVE SPORT

His job is demanding, and with three children aged 9, 6, and 3, his spare time is limited. But he plays tennis and golf when he can and enjoys cross-country and downhill skiing in the winter.

There are several similarities between sports and the competitive elements that his job consists of; he reflects:

– In a way, financial asset management is like a competitive sport. We, as independent investment advisers, are not exclusive in the Norwegian market. We compete against other companies to choose the best managers. And the managers also compete against each other, Fredrik emphasizes.

One of the challenges in the job is to explain to the customers in an uncomplex way the reasons for the investment results, he thinks.

– If the investment results are exceptionally good, not many people ask several questions about it, but when the results are weak, customers need specific information about why. It’s a business where it is difficult to pinpoint the reasons, if any, that stock rises or that a specific market has a substantial development, explains the Research Director. Hence it is also difficult to distinguish luck from skill in fund management.

– CUSTOMERS KEEP US SHARP

Grieg Investor’s office building is conveniently located on top of a coffee shop that serves Fredrik’s favorite coffee. He drinks too much coffee, the Swede admits with a smile. But coffee breaks are needed in a job with a high pace.

– We’ve got some of the largest and most professional customers in Norway; they are demanding but also keep us sharp. There’s pressure on us to deliver a good return to our customers, in addition to often meeting short deadlines on specific analyses carried out for them, he says before adding:

– But it doesn’t feel like negative stress, and the work hours are flexible, Fredrik assures.

Fredrik Wilander

• 43 years old

• PhD in Economics from Stockholm School of Economics

• Grieg Investor, located in Oslo

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 Group´s financial assets and invest in companies and sectors of interest.

Grieg Kapital is invested directly in early-stage and growth companies within technology, aquaculture, and the maritime industry. The companies we invest in are either developing scalable technology and smarter digitalization or contributing to more sustainable energy and protein production.

GRIEG KAPITAL INVESTMENTS

In 2022 we invested in three promising young companies within technology and aquaculture, and we did six follow-up investments throughout the year. In total we have 11 companies in our portfolio.

Finally, Grieg Kapital has included in RAYVN AS in our portfolio, a Bergen-based IT company that has developed a user-friendly crisis management tool. RAYVN’s solution simplifies crisis management by enabling efficient alerts, mobilization, coordination, and communication during critical incidents. The company experienced a 57% growth in 2022 and has clients in over 30 countries, primarily in the maritime and energy sectors.

OUTLOOK

GRIEG KAPITAL INVESTMENTS

In 2022, Grieg Kapital invested in the start-up Ocean Space Acoustics, which developed PingMe, a solution aimed at reducing ocean plastic and lost fishing gear. Abandoned fishing gear is the deadliest form of ocean plastic, harming marine life and ecosystems. Ocean Space Acoustics, originating from SINTEF, raised 16 million in fresh capital, with Grieg Kapital joining the ownership side in a targeted share issue.

This year, we have also included fish feed manufacturer CFEED in our portfolio. Established by SINTEF in 2014, CFEED produces starter feed for fish larvae using copepods, increasing survival, health, and growth rates. The starter feed also reduces energy and other feed use, lowering environmental impact and increasing profitability.

Along with inflation and rising energy and oil prices, the war in Ukraine continues to affect the international community, the economy and capital markets. As a result, we expect markets to continue to cool down. Moving forward into a world increasingly affected by climate and environmental issues, technologies that align with our business strategy, embedded in the UN Sustainability Development Goals, will be crucial investment objectives.

In 2022, we re-launched our investment strategy, and we have started strengthening our team. Our aim is to be an attractive and active investor in the Norwegian venture capital market.

Grieg Kapital is the Grieg Group’s investment company, investing in early stage and growth companies that can participate in creating more sustainable protein production, scalable technology, and digitalization as well as a more sustainable energy mix.

Highlights From 2022

MATTHEW DUKE IS THE NEW CHAIR OF GRIEG LOGISTICS

CEO of Grieg Maritime Group, Matthew Duke, embarks on the role as Chair in Grieg Logistics where he has previously participated as board member. He is replacing Elna-Kathrine Grieg, which has been Chair since 1999. Elna-Kathrine continues as board member of the company.

GRIEG GROUP SIGNS THE FUTURE-PROOF DECLARATION

Operating in international markets, we have a responsibility to work in compliance with the UN Guiding Principles on Business and Human Rights. Signing the Future Proof-Declaration reminds us on the importance of this work and inspire us to do better. The Future Proof is a project collaboration between The Rafto Foundation and Bergen Chamber of Commerce.

GRIEG CONNECT INVESTS IN SWEDEN

Grieg Connect is now building a solid presence in Sweden with business consultants, local support, and development. Connect has currently six employees and an additional six developers from our development partner in Sweden. The team has sold the first installations and can create customer value with in-house business consultants from the start.

PIA MELING TAKES THE HELM AT GRIEG GREEN

One of Norway’s most experienced, innovative and commercially savvy shipping leaders is the new Managing Director of Grieg Green.

A MAJOR MILESTONE IN THE TRANSITION TO SUSTAINABLE SHIPPING

MS Green Ammonia got the Approval in Principle (AIP) last week based on the work done by LMG Marin, Wärtsilä and Grieg Edge. That means that the design we have developed is feasible. No significant obstacles exist to prevent our concept from being realised. The illustrations and videos on this page show the latest design by LMG Marine.

WE EXIST FOR THE EMPLOYEES, NOT THE OTHER WAY AROUND

In January 2022 we celebrated the 90th birthday of Per Grieg sr. Per has been with the Grieg Group since he joined the family business in 1960. He was first offered a job as a shipbroker in Joachim Grieg & Co. Later, he partnered up with Per Waaler and established Star Shipping, which later became Grieg Star. The success of the Grieg Group is founded in Per Grieg sr.’s vital work throughout his years as an active owner. He is also the reason why Grieg Foundation was established in 2002.

THE URGE TO SPEED UP GREEN TECHNOLOGIES WITHIN THE MARITIME INDUSTRY

The Grieg Group participated at Arendalsuka which took place in August 2022. Across companies we work to speed up green technologies within the maritime industry and has an ambitious and responsible take on the future. This and other themes were on the stage for debate in Arendal, where several of our leaders spoke up.

GRIEG SEAFOOD EXCLUDES RUSSIAN FEED INGREDIENTS

Due to the war in Ukraine, Grieg Seafood excludes feed ingredient raw materials originating from Russia in its salmon feed from the third quarter in 2022.

Highlights From 2022

GRIEG-GAARDEN 30 YEARS!

Thank you to everyone who joined us in the celebration of Grieg-Gaardens 30 years anniversary. A special thanks to Sveinung Tvedt for bringing his camera and capturing this moment for us.

THE ANNUAL GRIEG INVESTOR CONFERENCE

In October 2022, the annual Grieg Investor Conference took place in Oslo, gathering over 150 participants to learn the latest from the capital markets, how the unstable world order is affecting us, and why climate change must be on everybody’s mind moving forward.

MANILA PLASTIC PROJECT DELIVERS SOCIAL GAINS

When the plastic project initiated by WWF and Grieg Foundation looked at the data gathered, investing in poor communities proved to be the best way to reduce plastic pollution. Since 2019, Grieg Foundation and WWF have worked on a project to reduce plastic leakage from three major ports in and near Manila in the Philippines.

G2 OCEAN EXPANDS TO THE MIDDLE EAST

As part of G2 Ocean’s emerging markets growth strategy, the company is today announcing that it is expanding its Middle East presence with the opening of a new office in Dubai, United Arab Emirates (UAE).

GRIEG MATURITAS

Directors’ Report 2022

In 2019 we incorporated the UN’s Sustainable Development Goals as part of our business strategy, because climate change is threatening nature, wildlife, and humans.

The Grieg Group comes from a long and proud maritime tradition, operating within seafood, shipping, shipbroking, maritime innovation, technology, logistics and investment services. Profitable growth throughout our history has made us capable of building sustainable businesses and giving back to the societies in which we operate.

2022 has been a year full of eventful happenings across companies, and a year where we broke financial records throughout the Grieg Group. We are lucky to achieve great results, together with dedicated colleagues who are the key to building our success. On another note, 2022 has been a year we never saw coming. Russia illegally invaded Ukraine, and we are witnessing a deva s tating war in Europe where millions of people are being driven from their country, and so many are fighting for their freedom. On behalf of the Grieg Group, we are proud that the Grieg Foundation has provided aid to children affected by the conflict.

In 2022, Group turnover was MNOK 11 144 (MNOK 7 932), operating profit (EBIT) MNOK 3 002 (MNOK 896), and the profit before tax MNOK 2 815 versus MNOK 750, in 2021.

We believe our people are our most valuable resource. Several new colleagues have joined us in 2022, and with that, the Grieg Group is well-positioned for the future. In 2022 we developed Grieg Maturitas, and worked with

strategic priorities in communications, compliance, cyber security, financial development, sustainability and public affairs. Besides, we have taken several necessary steps to a more professionalized structure, working together across companies to achieve specific goals, especially following our commitment to the UN SDGs, which we implemented as part of our strategic framework in 2019.

GRIEG MARITIME GROUP

Grieg Maritime Group delivered an extraordinarily strong result in 2022 due to dedicated colleagues, strong shipping markets for Open Hatch ships, and the best bulk market upcycle in 10 years resulting in the sale of the Group’s dry bulk activities.

During the year, Grieg Maritime Group also completed a successful turnaround in Grieg Green, and continued their commitment to invest in and develop zero-emission solutions within the maritime industry, through Grieg Edge.

Based on good overall results from the operational activities, topped with profit from the sale of dry bulk activities, herof sales of time charter contracts related to Star Nike, Star Maru og Star Gaia, with a gain of 16,2MUSD. Grieg Maritime Group delivers a consolidated profit before tax for 2022 of MUSD 155,7 (MUSD 38.0m).

The company is in a good position, both financially and

1 691

11 144

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

In 2022, several significant developments and collaborations affected the company positively, simultaneously as an upscaling of Grieg Connect has optimized logistics across the maritime sector.

In addition, the establishment of its subsidiary, Grieg Project Finance AS, has enabled Grieg Shipbrokers KS to expand its business activities to include project financing.

The company has undergone a significant turnaround in recent years, thanks to its focused approach to core business areas. It is well positioned with a young and motivated team with an average age of 37 years, and low staff turnover.

GRIEG INVESTOR

strategically, well equipped to keep developing its business activities for the coming year.

GRIEG SEAFOOD ASA

Grieg Seafood places among one of the world’s leading salmon farmers. The company has licenses for seawater farming and land-based smolt production in Finnmark and Rogaland in Norway, British Columbia and Newfoundland in Canada. Grieg Maturitas II represents the majority shareholder in Grieg Seafood with 50,17 % ownership through Grieg Aqua AS.

To achieve sustainable growth and improve competitiveness, Grieg Seafood focuses on reducing the time fish spend at sea, improving fish health and welfare, and providing digital decision-making support to its farmers. As part of the company’s strategy, the Shetland operations were sold in 2021 to concentrate on the regions with the greatest potential for profitable growth – Norway and Canada.

In 2022, Grieg Seafood harvested 84 697 tonnes GWT, a record high volume for Rogaland, Finnmark and British Columbia as a whole. Total harvest volume in 2022 represents an increase of 12 % compared to 2021. The Norwegian regions contributed 76 % of the harvested volume, while British Columbia contributed 24 %.

The market demand for farmed salmon in the retail and HoReCa sectors was exceptionally strong in 2022, providing Grieg Seafood with a tailwind as biological challenges and cost inflation put pressure on farming costs. In 2022, Grieg Seafood reached a record-high operation EBIT (NGAAP) of NOK 1 347 million, with operation EBIT/kg of 15,9, driven by the harvested volume and a strong salmon market. Net profit after tax (NGAAP) was NOK 1 023 and corresponding earning per share was equal to NOK 9,1. Among several achievements through 2022, Grieg Seafood was ranked second by the Coller FAIRR Protein Producer Index, an index rating the world’s most-sustainable protein producers. The company also received a Leadership (A-) score for their transparency and actions related to climate change risks from CDP, the gold standard of environmental reporting. In the third quarter, they also excluded feed ingredients and raw materials originating from Russia in their salmon feed.

Following up on last year’s strategic decision to re arrange their business and become more robust and agile heading into the future, Grieg Connect continues to up-scale and win momentum. Situated at the vital core of Grieg Logistics’ overall business, Grieg Connect ensures that digitalization and new technology improve every aspect of deliveries from the company.

Throughout 2022, Grieg Logistics also partnered with GreenH to pave the way for green hydrogen production and distribution along the Norwegian coast, and established a long-term collaboration with Esso, where the aim is to ensure safe and effective port and terminal operations throughout Norway.

In april 2022, Matthew Duke was elected the new chair of Grieg Logistics.

GRIEG SHIPBROKERS

Grieg Shipbrokers was established in 1884 as the first company in the Grieg Group. They 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 KS grew in 2022, generating significant new business within its core areas. The Grieg Shipbrokers Group ‘s revenue has increased to NOK 184,0 million this year, up 1% from last year and a remarkable 55% compared to 2020.

The company has been highly active in sales, financing, period business, and spot transactions, all of which have yielded positive results throughout the year.

In 2022, a new global uncertainty following the Russian invasion of Ukraine emerged, sending shockwaves into the economy and financial and stock markets.

2022 has been a challenging year for customers of Grieg Investor. Balanced portfolios experienced falls in the stock and bond markets and returns almost as weak as during the financial crisis in 2008. Nevertheless, there have been few signs of a crisis mood, and Norwegian investors have been somewhat shielded by a stock market that has fared well compared to other countries.

2022 was a challenging year for sustainability investors, but Grieg Investor is optimistic and expects sustainability to become an increasingly important part of investment strategies moving forward. The war in Ukraine created an energy crisis and provoked a demand for defence materials and weapons. It resulted in a multifaceted debate about ESG – and thus, a need to clarify what ESG is and will be in the coming years. Customers are concerned with a wide range of issues related to sustainability, and Grieg Investor itself participated in the debate in several arenas last year. The world is facing significant challenges related to sustainability, and our work is not only about understanding how best to position ourselves to ensure a good return but also to inform and make our customers aware of their footprint as investors.

GRIEG MATURITAS | ANNUAL REPORT 2022 F R OM THE B O ARDROOM 60 — 61

Highlights 2022

Vilde Lyngstad Hageselle named one of 10 women to watch in shipping

Manila plastic project delivers social gains

Grieg Seafood excludes Russian feed ingredients due to war in Ukraine

diversification in balanced portfolios in the future.

Regarding economic aspects of the company, Grieg Investor advises on a portfolio of NOK 140 billion for their wide range of clients, including foundations, associations, family-owned companies, pension funds, insurance companies and municipalities.

Grieg Investor are well set for the future, counting 27 employees in 2022. They were also named the Nordic Investment Consultancy of the Year for the fifth time.

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 Group´s financial assets and invest in companies and sectors of interest.

Grieg-Gaarden 30 years!

Grieg Kapital is invested directly in early-stage and growth companies within technology, aquaculture, and the maritime industry. The companies we invest in are either developing scalable technology and smarter digitalization, or contributing to more sustainable energy and protein production.

Investments in 2022 include three promising young companies within technology and aquaculture, with six follow-up investments and a total of 11 overall investments in the Grieg Kapital portfolio.

Grieg Kapital’s performance in the capital market 2022 reflects the challenges the capital market has faced during the year, and profit is down compared to last year, mainly due to unrealised losses on financial investment. Grieg Kapital AS report interest income, dividend, changes in market value on quoted financial current assets, as operating income. Earnings on property is in line with last year. Operation in the Cleaner fish business has made a deficit during the year. Result before tax for the Grieg Kapital Group was MNOK 35 million negative in 2022 vs NOK 80 million positive in 2021.

BALANCE SHEET, FINANCIAL SITUATION AND

The Grieg Group has a strong financial position. Total current assets amount to MNOK 7 656 (MNOK 5 750), of

which MNOK 3 849 (MNOK 2 578) is made up of bank deposits, market based financial investments and other financial investments. Current liabilities total MNOK 2 737 (MNOK 1 690) which gives positive working capital of MNOK 4 919 (MNOK 4 060). The Groups total fixed assets is MNOK 11 664 (MNOK 10 722), of which MNOK 6 063 (MNOK 6 108) is financed through loans from financial institutions, financial leasing, and other long-term debt.

CASHFLOW

The Group had a positive cash flow of MNOK 3 062 (MNOK 1 161) from operations. The net cash flow from investing activities is negative MNOK 1 707 (MNOK 1 924), mainly due to the purchase of fixed assets and investment in money market funds in Grieg Seafood. The cash outflow for investing activities is partly offset by the sale of fixed assets in Grieg Maritime Group. The net cash flow from financing activities is negative at MNOK 1 074 (negative MNOK 2 053 ), mainly due to loan repayments exceeding the proceeds from debt issued and dividend paid in the year. In total, the Group had a positive cashflow of MNOK 281 in 2022 (MNOK 1 032).

FINANCIAL RISK AND RISK MANAGEMENT

When operating in a global market, across different business areas, the companies of the Grieg Group are exposed to several types and degrees of risk, ranging from market operations and financial risk to compliance and regulatory frameworks. Risk management is a continuous process and an integrated part of the Group’s

governing model. Thus, we are constantly focusing on how to identify and monitor the risk areas in the Group companies, as well as developing strategies to mitigate such risks. For further information concerning financial risk, see note 21 to the Group accounts.

The members of the Board of Directors and the CEO are insured. The insurance provides liability cover for members of the Board of Directors and the CEO with respect to claims arising from decisions or actions they may take on behalf of Grieg Maturitas.

RISK MANAGEMENT

Risk management is vital to protect people, the environment, and our business assets. The Grieg Group is exposed to risks in several different business areas, both in relation to financial risk, market risk and political risk.

In 2020 we established an Emergency Response Team led first by our CEO and then by GM Legal, consisting of all Grieg Group companies. We developed plans, discussed measures, and communicated throughout the entire organization. The Emergency Response Team has met regularly since then, providing each other with expertise and knowledge. In addition, we support our CEOs and leaders with the necessary information for employees and offer digital training sessions and social gatherings.

Almost ending the restrictions following the pandemic in early 2022, a new crisis came upon us. The tragic Russian

CASHFLOW

Grieg Edge got Approval in Principle by DNV

Pia Meling takes the helm at Grieg Green

Grieg Connect invests in Sweden

invasion of Ukraine affects us all, and we are sadly witnessing innocent people being affected.

We now mark over one year since the illegal invasion of a free country in Europe. In response to the crisis, we support that the US, the UK and The EU, among others, have imposed wide-ranging political and economic sanctions against Russia. Since the sanctions were first imposed, the threats from Western allies are still economic and political only, with no sign of an armed conflict between NATO and Russia.

For Grieg Maritime Group, risk management in 2022 has been connected to human rights, as part of implementing the Norwegian Transparency Act, sanction risks and thirdparty screening, the mapping and handling of GDPR activities, and cyber security training and response because of Russia’s war in Ukraine.

Grieg Logistics provides ship agent services, terminal operations, and digital infrastructure to support Norwegian ports and terminals. In addition, they have a strategic collaboration with the Norwegian Armed Forces in peace, crisis, and war. Following their cooperation with the Army, Grieg Logistics provides company management and a 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 personnel contributed to the NATO exercise “Cold Response,” that took place in March 2022.

In Grieg Seafood, risk management is related to several areas. On 28 September 2022, The Norwegian government proposed the introduction of a resource tax on farming salmon and trout in Norway with effect from 1 January 2023, and on 28 March 2023, the government presented a bill providing further details to the tax regime in addition to modifications made to the proposal communicated in September. The proposed tax will apply to commercial marine-phase salmon and trout aquaculture activity. Based on the proposal, the resource tax will have a rate of 35 % on profits generated by the marine-phase aquaculture activity. This is in addition to regular corporate taxes, and taxation for Norwegian ownership. The proposed tax will directly impact the operations in Rogaland and Finnmark, as the taxation of the sea farm operations in those regions may increase from 22 % to 57 % if the

proposed resource tax is adopted in its current form.

Concerning the war in Ukraine, Grieg Seafood trades salmon globally but has not since 2014 sold salmon to Russia. They have ongoing sales operations with Ukraine, but due to the war, the cancellation of planned sales operations is a fact. There are no employees in Grieg Seafood directly affected by the invasion.

Grieg Investor advises on a portfolio at the amount of NOK 140 billion. Considering Grieg Investors 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 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 that the company will perform due diligence on a new customer in line with its standard KYC policy. Grieg Shipbrokers have one Russian national working from the Bergen office.

ORGANIZATION AND WORKING ENVIRONMENT

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. Sustainability Development Goals (SDG) 4, Quality education, is one of the Grieg Groups’ stretch goals.

The total number of employees in 2022 was 1 691. Their qualifications constitute a substantial part of the business capital. Keeping a diverse workforce and providing our employees with learning opportunities that promote competence aligned with their personal career goals will ensure that we always have the best hands and minds on board.

DIVERSITY AND GENDER EQUALITY

A diverse and balanced working environment is crucial

for success, and we strive to be at the forefront of diversity within the businesses we operate. That is why we have chosen SDG 5 Gender Equality as a Stretch goal in our business strategy. We are committed to working towards gender parity at all levels of the organization, and we promote gender equality and diversity towards business and supply chain partners.

Gender equality, non-discrimination and inclusion are internationally recognized human rights, and fundamental to achieving a just and sustainable society. Our work is grounded in our policy on Human Rights.

We are 1691 employees in the Grieg Group companies. Only 19% are women, the same level as in 2021, so we still have work to do in several companies, especially among our seafarers. Counting on land only, 28% of the employees are women, increasing from 25% last year. 43% of our CEOs in our main companies are women, up from 37,5% last year. And, in our Board of Directors, 46% of the members are women, up from 41% in 2021.

The level of success in our work for gender equality is defined by the work done in our different companies. All our companies measure gender balance and are committed to improving the gender balance among all employees. Similarly, all companies have a written policy against workplace discrimination. Transparency is key to success in reaching our goals. The Grieg Group companies use the SHE Index as a reporting tool on gender equality. The SHE Index consists of six categories focused on different aspects of gender equality; actual gender balance, policies and targets, action, gender pay gap, talent and recruitment and general diversity and inclusion.

In Grieg Maturitas II we have employed seven women and one man. The board consists of four men and four women. Both the Chairperson and the CEO are female. In 2022 we had no part-time employees in Grieg Maturitas II, and none of the employees were on parental leave.

HUMAN RIGHTS

In the Grieg Group, we are committed to respecting international human rights. Our Human Rights Policy outlines the Grieg Group’s commitment, approach, and responsibility to respecting human rights. The human rights policy interlinks with other policy documents,

such as our Ethical guidelines, Supplier Code of Conduct, and grievance mechanisms. The companies within the Grieg Group need to act according to the policy’s expectations to ensure respect for human rights in all parts of their business.

The Norwegian Transparency Act came into effect on the 1st of July 2022. As a larger enterprise resident in Norway, the Grieg Group (parent company) is under the scope of the Norwegian Transparency Act. The Transparency Act shall promote enterprises’ respect for fundamental human rights and decent working conditions in connection with producing goods and providing services. It shall also ensure public access to information regarding how enterprises address adverse impacts on human rights and decent working conditions.

In 2022, the Grieg Group and companies made a considerable effort to implement the Transparency Act, including gap analysis, risk-mapping and drafting procedures for and guidelines for mitigating and preventing possible human rights violations. The main risks identified are in the maritime and aquaculture industries of our businesses. Our report on the Transparancy Act will be made available on Grieg.no by 30 June 2023.

HEALTH AND SAFETY

The Grieg Group companies continuously focus on training and facilitating a safe working environment for all employees by identifying and evaluating potential risks on an ongoing basis.

In 2022, Grieg Maritime Group launched an initiative and a commitment to target zero injuries and work-related illnesses with their partners in G2 Ocean and Gearbulk. Records show no (0) injuries reported onshore in 2022. Onboard vessels, there were only three occasions where someone from their crew had to be repatriated due to the severity of injuries suffered. The sick leave percentage continues to stay low, being 0,6 % onshore.

In Grieg Seafood, absence rates are mainly related to long-term sickness. Working-related injuries are a total of 33 cases. Grieg Seafood also places above average score in the Great Place to Work-survey and has an absence rate below 4,5 %.

The sick leave percentage is still low overall in the Grieg Group. In 2022 the sick-leave percentage was 3,3 %. We focus on preventing sick-leave by creating a good working environment and conduct close follow-ups with our employees, not only at the office, but also while they have been working from home. The Group also facilitates participation in physical activities and is also a long-term supporter of Aktiv mot Kreft and “Aktivt Kontor”.

INNOVATION

Innovation, our stretch goal SDG 9, is vital to becoming sustainable. The Grieg Group companies engage in several research initiatives, especially in the shipping and seafood industries.

In 2022, Grieg Maritime Group continued its work with maritime innovation through the company Grieg Edge, which was established in 2022. Grieg Edge engages in several partnerships and initiatives, such as the ZEEDs initiative, the joint venture with Peak Group, Skarv Shipping and the joint venture North Ammonia established together with Arendals Fossekompani. Both energy production and infrastructure have become a significant part of Grieg Edge, and in 2022 Grieg Edge invested in GreenH, a hydrogen production company with plans for several facilities along the coast of Norway. Grieg Edge also continued their work with M/S Green Ammonia, which granted Approval in Principal from DNV in 2022.

Innovation is one of five pillars on which Grieg Seafood’s business is based, and hence also vital for sustainable growth. Innovation in the seafood industry is tied to data-driven technology, technology to improve biology and fish welfare, reducing their impact and contributing to a better society. Grieg Seafood placed 2nd on the international FAIRR Protein Producer Index in 2022.

To become a driving force for sustainable development, we must create a purpose-driven organization embedded in an innovative culture. Within the Grieg Group, we strive to collaborate across all companies in inspiring, challenging and learning from each other. In addition,

we believe sustainable business development can only derive from partnerships across sectors, companies, and industries, and hence the SDG number 17 (partnership for the goals) is the most important one to us.

SUSTAINABILITY, CLIMATE, AND ENVIRONMENT

In the Grieg Group, sustainability and our commitment to the SDGs are integrated in our business strategy. For us, the 17 SDGs are interdependent and equally important. However, some of the sustainability themes are more relevant to the businesses we operate within, and it has therefore been natural for us to choose SDGs where we can have the greatest impact and where we also have the largest challenges at an industry level.

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, with a focus 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, in the areas where we can make a difference, and to help us focus our efforts in areas that are relevant for our business and stakeholders. These goals relate specifically to SDG 4, 5, 9, 13, 14. We have set clear goals for all our prioritized SDGs. Having revised our objectives and KPIs at Group-level in 2021, our focus in 2022 has been on creating an internal digital reporting system. The system gives us a complete overview of where we stand in the Grieg Group. At the Group level, the strategy and sustainability objectives and progress are monitored by the Board, which has the overall responsibility for ensuring that strategic objectives are met. Progress is presented annually.

In 2022 several of our companies took important steps towards creating a more sustainable business. During 2022, Grieg Seafood developed a climate action plan, which describes the measures and investments needed to reach their climate targets. This plan stresses the

importance of both operational measures, that affect Scope 1 & 2, and supply chain measures in Scope 3. Direct carbon emissions from their production (Scope 1 & 2) account for 8% or 30 000 tCO2 e of total emissions. 92%, or 346 000 tCO2 e, of the emissions originate from the value chain (Scope 3). The climate action target is to reduce carbon emissions by 35% towards 2030, and by 100% in 2050, with 2018 as the baseline year. The carbon emission reduction targets are classified as wellbelow 2°C global warming and aligned with the Paris Agreement. They have been approved by the Science Based Targets initiative (SBTi). Grieg Maritime Group have adopted the Norwegian Shipowners Association’s target to reduce GHG emissions per transported unit by a minimum of 50% by 2030 from 2008 levels and become net zero by 2050. GMG have mainly focused on scope 1 and scope 2 emissions in previous years, but in 2022 they worked to cover their scope 3 emissions as well. In 2022 there has also been a strong focus in GMG on ensuring that they report their emissions in line with the GHG protocol. Grieg Investor continued their work on sustainable finance and agreed to participate in the International Expert Group on Verifiable Climate Targets, Science Based Targets initiative (SBTi). The expert group advises on how a global standard for net zero targets in finance should be set. The first edition of the standard is expected to arrive in 2023 and be further developed in 2024. Grieg Investor also participates in the stakeholder group of the international working group on nature risk, TFND. The group will make recommendations on how natural hazards should be analyzed and reported, with the hope that this will become an international standard.

The Grieg Group is a member of the UN Global Compact, and we are committed to the ten principles of the UN Global Compact. We report on our progress, and our “Communication of Progress” is publicly available. We are also a member of the UNGC Action Platform for Sustainable Ocean Business.

In 2022, we continued our partnership with WWF and Grieg Foundation to reduce plastics pollution in the Philippines. To solve one of the world’s biggest challenges related to the Oceans, biodiversity, and climate, we must provide solutions where the problem is at its largest. We have set a clear ambition: a 50 per cent reduction of plastic pollution in three Philippine ports. We also work internally

to reduce our plastic pollution. Grieg Maritime Group reached their ambitious goal of having at least 90% of all plastic waste from internally managed vessels delivered to shore facilities with responsible waste handling and recycling capacity. Our main office building, Grieg-Gaarden, is also certified as an Eco-lighthouse office building.

CORPORATE GOVERNANCE

At Grieg, effective corporate governance is essential for building and maintaining trust within the Group and with our stakeholders, which ultimately helps us achieve our goals. The Grieg Group always strives to do business in a fair and proper way. We apply the Norwegian Code of Practice for Corporate Governance to ensure that the responsibility and roles between the administration, the Board of Directors and the General Meeting are based on sound practice. Deviation may arise given the fact that the Group is privately owned.

Our Code of Conduct and other Group Policies sets out the ethical and behavioural standards we expect all our employees and partners to follow. We constantly strive to keep our Grieg Group policies and routines up to date, and to provide proper training to all employees.

Our SDG goals within corporate governance are SDG 8 (Decent work and economic growth), SDG 16 (Peace, justice, and strong institution) and SDG 17 (Partnerships for the goals). The Grieg Group is a proud member of the UN Global Compact. Per our membership, we develop a report on our sustainability effort every year, and we comply with the UN Global Compact principles on human rights, labour, the environment, and anti-corruption.

We constantly seek to find innovative solutions, and to meet the challenges of the SDGs, through new partnerships and cross-sector cooperations. We do this by being honest, exchanging ideas and seeking to understand and learn from our surroundings. We have an open-minded business approach, and strive to create room for action and possibilities, which enables strong partnerships from both public and private parts of society.

Through Grieg’s more than 139 years of history, it is our capacity to manage the challenges of the times, and to innovate and adapt, that has put us in the position to

be a forerunner for the positive changes we want to see in the world today.

GOING CONCERN

The Board of Directors confirm that the annual accounts have been prepared on a going concern basis, and that this assumption is valid, based on the Group’s solid financial position and expectations of future profits. The Board believes that the submitted annual accounts give a correct picture of the result, cash flow and economic situation. No events have taken place after the balance sheet date that could materially affect the accounts. We expect that the uncertainties in the world markets due to the crisis in Ukraine will affect us moving forward, but we rely on the international community to achieve a peaceful end to the war.

OUTLOOK

When writing this, Ukraine has been at war with Russia for over a year. It is impossible to predict the future, but we know uncertainties will continue to arise worldwide. Being a company with global businesses brings challenges, but also opportunities. The Board of Directors are particularly impressed with how colleagues across all Group companies have managed to adapt to “the new normal” after the 2-year pandemic and manage the uncertainty following the war in Ukraine. Because of our extraordinary financial results following our 2022 operations, we can collaborate on projects that make a difference, both at a national and international level, through Grieg Foundation. For that, we are genuinely proud.

To handle the ongoing crisis in Europe, necessary measures are and will be taken moving forward, in all Grieg Group companies and at the Group level, to secure employees, the financial situation, our customers, and our partners.

Sustainability is, more than ever, a license to operate. Climate change is threatening nature, wildlife, and humans. If you are part of the problem, you must be the solution. 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 continue promoting 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, the ZEEDs initiative being a good example, Skarv Shipping another.

As we advance, we will continue focusing and adapting to changing markets and pursue opportunities as they arise, given the uncertainty in the global economy. Securing our businesses, the health of our employees and our cash situation will be given the highest priority. But we still believe that supporting new business ideas and facilitating innovation initiatives within the Group is of even more importance. We are still using the UN Sustainable Development Goals (SDG) as our framework for our strategy, and we strongly believe that we will act as an inspiration to other companies, organizations, partners, and the rest of the community to join our pledge: We will restore our oceans.

The Board of Directors would like to express our thanks to all colleagues in all our companies for their solid dedication and contribution to the Grieg Group, especially during these unprecedented times. Thinking long term pays off. And in the Grieg Group, we are in it for the long run.

Bergen, 23th of May, 2023

The Board of Directors of Grieg Maturitas AS

Elna-Kathrine Grieg Board Member Elisabeth Grieg Chair Per Grieg jr. Board Member

Camilla Grieg

Nicolai H. Grieg Board Member Interim CEO and Head of Sustainability

Nina W. Grieg Board Member

Rolv-Erik Spilling Board Member

PROFIT AND LOSS STATEMENT

BALANCE SHEET

CASHFLOW STATEMENT

Note 1 Accounting principles

PRINCIPLES

The Annual Accounts for Grieg Maturitas AS have been prepared in accordance with Norwegian Accounting Act and generally accepted accounting principles.

GROUP ACCOUNTS

The consolidated accounts include the subsidiaries specified in note 9 and shows the accounts of the parent company and the subsidiaries as a single economic unit. Shareholdings and investments in subsidiaries are eliminated on the basis of the acquisition method. The cost of shareholdings and investments in subsidiaries is eliminated against the book equity of the shares/ investments at the date of acquisition. Any difference arising is posted to the identifiable assets. Any surplus value that cannot be attributed to specific assets, or the company’s own intangible assets, is described as goodwill and is depreciated over its estimated lifetime. Intra-group transactions and internal balances are eliminated.

Companies that are bought or sold during the year, is included in the group accounts from the time of control arises or ceases.

Changed owner share in subsidiaries, where the company after the transaction still is a subsidiary, is an equity transaction for the Group. The income statements and balance sheets of the group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

(i) assets and liabilities are converted at the closing rate on the date of the balance sheet,

(ii) income and expense items in the income statement are converted at average exchange rates for the period (unless this average is not a reasonable estimate of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated on the dates of the transactions),

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

OPERATING REVENUE

Operating revenues are entered as income at the time of delivery. The time of delivery is understood as the time of transfer of risk and control related to the delivery. Freight revenues from voyages are recognised on the basis of the number of days the voyage lasts. Revenue is shown, net of value added tax, returns and discounts.

CLASSIFICATION OF ASSETS AND LIABILITIES –MAIN RULE

Assets intended for long-term ownership or use are classified as fixed assets. Other assets are classified as current assets. Receivables due within one year are classified as current assets. The corresponding criteria are applied to classify liabilities. Certain items are stated on the basis of special valuation rules, in accordance with accounting legislation, as detailed below. Other assets and liabilities are classified as fixed assets and long-term liabilities, respectively.

INVENTORIES

Inventories are recognised at the lower of cost and fair value. Goods in progress, and finished goods are recognised at the lower of full cost and net sales value. The net sales value of finished goods is calculated as sales value less sales costs. The stock of bunkers consists of fuel and diesel and are recognised at cost on the basis of the FIFO method.

FOREIGN CURRENCY

Assets and liabilities denominated in foreign currencies are stated at the year-end exchange rate. Agio, or disagio, on settlements or conversion of monetary items in foreign currency on the day of balance is allocated. Transactions in foreign currencies is recalculated to transaction rate.

Foreign exchange hedging derivatives purchased in order to reduce the currency risk for the sub-group Grieg Maritime Group and Grieg Shipbrokers are recognised

as hedging transactions. Gains/losses of foreign exchange contracts are therefore recorded in the same period as the hedged transactions. Please refer to note 21. Unrealized gain/loss on the hedging contracts is not posted on the balance sheet.

FOREIGN EXCHANGE RATES (NOK)

exist. Dividends and other distributions are recognised in the year in which they are provided for in the accounts of the subsidiary. If the dividend exceeds the profit after the acquisition, the surplus amount represents repayment of the capital investment and the distributions are deducted from the amount of the investment in the balance sheet.

INVESTMENTS IN LIMITED PARTNERSHIPS

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 profits/contribution to cover losses from investments in limited partnerships is taken to income/charged against profits under financial items. Profits from investments in limited partnerships are taxable in the hands of the respective participants.

INTEREST RATE HEDGING

Interest rate hedging contracts are recognised and classified in the same way as the related mortgage loan. The interest received/paid under the contract is therefore recognised in the interest period in question and is included in interest cost/income for the period. Unrealized gain/ loss on the hedging contracts is not posted on the balance sheet.

ACCOUNTS RECEIVABLE

Accounts receivable are stated at nominal value less provisions for expected losses. The loss provision is based on an individual assessment of each accounts receivable.

INVESTMENTS IN SUBSIDIARIES

A company is defined as a subsidiary if the Group has a decisive influence on its operations. This is normally the case where the Group holds more than 50% of the voting share capital. Subsidiaries are posted in the company accounts applying the cost method. The investment is stated at historical cost of the shares unless a write-down has been necessary. The investment is written down to fair value when the reduced value is due to causes which are not deemed to be temporary. Write-downs are reversed when the grounds for the write-down no longer

INVESTMENTS IN PORTFOLIO AND PRIVATE EQUITY COMPANIES

A portfolio of investments are recorded as a current asset, and is valued at the lower of cost price and estimated fair value for the portfolio as a whole when the intention behind the portfolio is to diversify the risk through a balanced portfolio with respect to time, branches and geography. For unlisted investments, with no observable price, the fair value is determined by recently third party-trades, or with a reference to the fair value of similar investments. Investments with significant and permanent impairment is removed from the portfolio.

INVESTMENTS IN ASSOCIATED COMPANIES AND JOINT VENTURES

An associated company is a company where the Group has significant influence, but not control. Significant influence is deemed to exist for investments where the Group has between 20% to 50% of voting capital. Investments in associated companies and joint ventures are recorded on the basis of the equity method in the consolidated accounts, unless the investment value is immaterial. Investments in 50/50% joint ventures are stated according to gross method. The share of the results in

associated companies is posted separately under financial items. The investments in associated companies are posted as a financial asset. The Group’s share of a loss is not posted in the income statements if this means that value of the investment in the balance sheet becomes negative. Provisions will be made if the Group has undertaken an obligation on behalf of the associate.

FIXED ASSETS

Fixed assets are valued at acquisition cost, but are written down to fair market value where the decline in value is not expected to be temporary. Fixed assets with a limited economic lifetime are depreciated on a straight-line basis over the expected lifetime of the asset. Long-term liabilities are stated in the balance sheet at the nominal amount on the establishment date. Current assets are valued at the lower of acquisition cost and fair market value. Current liabilities are stated in the balance sheet at the nominal amount on the establishment date. Periodic classification and maintenance costs are posted in the balance sheet and depreciated on a straight-line basis until the next planned docking. The docking costs are included in the balance sheet along with the value of the ship. The depreciation of docking costs is included in operating costs.

INTANGIBLE ASSETS

Goodwill is depreciated over its economic lifetime. The surplus value attached to the fleet’s contracts of employment and the company’s right to renominate Grieg Maritime Group tonnage is defined as “contracts” in the balance sheet and is depreciated over 20 years. Licenses with unlimited economic lifespan is subject to an annual impairment test. Licenses with limited economic lifespan is depreciated annually. Expenses related to the company’s own development are recorded in the balance sheet from the point when it is likely that the development work will result in an identifiable intangible asset.

ASSET IMPAIRMENTS

Assets that are subject to depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cashflows (cash-generating units).

The Group’s open hatch vessels are sailing in a pool, which are market and operated by G2 Ocean AS. Having the vessels sail in a pool means that the operational use of the vessels, including optimization of routes, is combined for the fleet. Earnings of each individual vessel is therefore affected by the earnings of other vessels in the pool. The open hatch fleet are therefore considered to be the respective cash-generating units.

Newbuilding contracts are included in the fleet impairment and unpaid installments are deducted.

Non-financial assets other than goodwill which have been impaired are reviewed for possible reversal of the impairment at each date.

PENSION COMMITMENTS

Defined contribution plans

The Group’s main pension scheme is a defined contribution plan, for which the companies pay contributions to an insurance company. The companies have no further payment obligations once the contributions have been paid. Contributions are recorded as payroll expenses.

Defined benefit plan

Some companies have defined benefit plans, including AFP. A defined benefit plan is a pension scheme that defines the pension payment an employee will receive on reaching retirement age. The pension payment normally

depends on one or more factors, such as age, period of service with the company and salary level. The pension commitment under defined benefit schemes posted in the balance sheet is the present value of the defined benefit schemes at year-end less the fair value of the pension fund assets, adjusted for unposted deviations from estimate. The pension commitment is calculated annually by an independent actuary based on a linear accrual of pension entitlements. Changes in benefits under the pension plan are posted in the profit and loss account on an ongoing basis. The pension schemes are funded through payments to insurance companies or financed through operations. Post-employment benefit obligations associated with the early retirement pension (AFP), under the LO/NHO arrangement, are a multi-employer defined benefit plan, but the plan is recorded as defined contribution, as it is not measurable.

MARKET BASED FINANCIAL ASSETS

Short-term investments in shares and mutual funds are regarded as part of the trading portfolio and are stated at fair value at year-end. Dividends received and other distributions are entered as income under other financial income.

ESTIMATES

When preparing the annual accounts in accordance with good accounting practice, the management make estimates and assumptions which affect the profit and loss account and the valuation of assets and liabilities 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 differentiate 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 of

ownership to the lessee. All other leases are classified as operational leases. When a lease contract is classified as a financial lease where the company is the lessee, the rights and obligations relating to the leasing contracts are recognised in the balance sheet as assets and liabilities. The interest element in the lease payment included in the interest costs and the capital amount of the lease payment is recorded as repayment of debt. The lease liability is the remaining part of the principal. For operational leases, the rental amount is recorded as an operating cost.

TAXATION

The tax charge in the profit and loss account consists of the tax payable and the change in net deferred tax. Taxes are charged when they arise. Deferred tax in the balance sheet is calculated on the basis of timing differences between values for taxation and accounting purposes. Taxable and tax-deductible timing differences which are reversed or can be reversed within the same period are netted against each other and entered net. Some of the companies of the Group are subject to shipping taxation under the Norwegian tonnage tax system pursuant to chapter 8 of the Taxation Act.

CASHFLOW STATEMENT

The statement of cashflows is prepared on the basis of the indirect method. Accordingly, the cashflows from investment and financing activities are reported gross, while the accounting result is reconciled against the net cashflow from operations. Cash and cash equivalents include cash, bank deposits and other short-term liquid investments that can immediately and with no major exchange rate risk be converted into a known amount and maturing less than three months from the transaction date.

Note 2 Segment information

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

2 For discontinued operations and held for sale assets, please refer to note 24 for information

Note 3 Payroll costs, number of employees, remuneration etc.

PARENT COMPANY

The company had no employees in 2022. 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.

Elisabeth Grieg, chair of the board, was registered as CEO until July 2022. From August 2022 Ragnhild Janbu Fresvik was appointed CEO. She left the position in March 2023.

REMUNERATION TO EXECUTIVES

In 2022 totalt payments for salary, pension premium og other remuneration to Managing Directors was NOK 2,6 mill and to present Board Members NOK 17 mill (NOK 4,6 mill. are Board remuneration and NOK 12,4 mill. are salaries and other remuneration from companies in the Group). Remuneration to the Board members and Managing Directors is paid from the companies where the Directors are employed or a member of the Board.

Note 4 Pensions and pension commitments

PARENT COMPANY

The company had no employees in 2022, and therefore no employees covered by pension schemes in 2022.

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.

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 2022 amounted to NOK 49,2 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 2022 a total of 71 persons (including pensioners and persons on early retirement) were covered by the benefits based scheme.

Note 5 Intangible assets

Goodwill primarily relates to the aquisition of Grieg Newfoundland.

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. Most licenses have an unlimited economic lifetime, but is subject to a yearly value assessment to determine if write-downs are required.

Write-down in licenses in Grieg Seafood is related to reorganization of ownership structure of licenses and decomissioning of farming operatings.

Note 6 Fixed assets

Grants received and other deductions to historic cost related to the freshwater facility in Grieg Newfoundland, of which NOK -86 million relates to the reversal of Investment Tax Credit (ITC) carried over from 31 December 2021 in Newfoundland and NOK 9 million relates to government grants received in 2022 in Newfoundland

FIXED ASSETS

Grieg Seafood has recorded an impairment in 2022 primarlity related to the Sechelt farming area in British Columbia, Canada.

The vessels Star Crios and Star Artemis in Grieg Maritime Group was sold in 2022 with a profit of USD 6 million. Commission fee of USD 0,3 million is included in the profit calculation.

FINANCIAL LEASE AGREEMENTS

Grieg Seafood has financial lease agreements on vehicles, machinery and other equipment, with a book value of NOK 505 million. The corresponding amount of lease liabilities recognized is NOK 396 million and the undiscounted amount of future lease payments is NOK457 million as of 31.12.2022.

Rensefiskgruppen has financial lease agreements with a book value of NOK 32 million on vehicles, machinery and other equipment, and lease liabilites amounts to NOK 21 million as of year-end 2022.

Of the total balance sheet amount for vessels the share of leased operating assets held by Grieg Maritime Group is NOK 575 million as of 31.12.2022 and the long-term financial lease liability recognized amounts to NOK 497 million as of 31.12.2022.

Note 7 Other operating expenses

Note 8 Remuneration to auditor

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

Note 9 Investments in subsidiaries

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 Maritime Group AS owns the following companies: Registered office Ownership Proportion of voting shares

Grieg Edge AS Bergen 100% 100%

Grieg Ammonia Distribution Vessel AS Bergen 100% 100%

Grieg Green AS Oslo 100% 100%

Grieg Green Consulting and Advisory Ltd. China 100% 100%

Grieg Shipholding AS Bergen 100% 100%

Grieg Star AS Bergen 100% 100%

Grieg Star Philippines inc. Philippines 100% 100%

Grieg Shipowning AS Bergen 100% 100%

Grieg Shipping II AS Bergen 100% 100%

Grieg International II AS Oslo 100% 100%

Grieg Shipping III AS Bergen 100% 100%

Grieg Star Bulk AS Bergen 100% 100%

Grieg Star 2017 AS Bergen 100% 100%

Grieg Star OH Pool AS Bergen 100% 100%

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 Directly ownership Directly and indirectly ownership Proportion of voting shares

Grieg Star Bulk Pool AS Bergen 100% 100%

Grieg Shipbrokers KS owns the following companies: Registered office OwnershipProportion of voting shares

Grieg Shipbrokers Valuation Services AS Bergen 100% 100%

Grieg Shipbrokers Ltd. UK 100% 100%

Grieg Project Finance AS Bergen 100% 100%

Grieg Shipbrokers Asia AS Bergen 100% 100%

Grieg Shipbrokers Asia Pte. Ltd. Singapore 100% 100%

Grieg Shipbrokers Asia Ltd. Hong Kong 100% 100% AS Joachim Grieg & Co. owns the following companies: Registered office Ownership Proportion of voting shares

Grieg Shipbrokers KS Bergen 10% 10%

Grieg Logistics AS owns the following companies: Registered office Ownership Proportion of voting shares

Grieg Investor Holding AS owns the following companies:

Note 10 Financial items

Note 11 Market based financial investments

Note 12 Investments in associated companies and joint ventures

Note 13 Taxes

The subsidiary 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. The group has reduced the tax losses carry forward with NOK 69 875 810 in 2022. The company has challenged the tax authorities’ position. A final conclusion from the tax authorities is expected to be received during 2023.

Note 14 Receivables due in more than one year

Note 15 Shareholdings and other investments

and other investments - classified as current assets

Shareholdings and other investments - classified as fixed assets

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 and bonds: the direct share investments and bonds 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 and bonds are classified as fixed assets.

3 All shares in Mercell Holding AS are sold in 2022 with a total booked gain on investments with MNOK 48,7.

Note 16 Stocks and bunkers

Note 17 Mortgages/guarantee liability/restricted deposits

Out of the total long-term mortgaged debt, NOK 913 million is long-term financial lease liabilities. For further details on leased assets see note 6. Group assets have been given as mortage security.

LOAN COVENANTS

Grieg Seafood has a syndicated loan provided by DNB and Nordea. The financial covenant of the syndicated loan agreements is equity-ratio of minimum 31%, measured on the consolidated book value of Grieg Seafood Group excluding the effect of IFRS 16. Grieg Seafood was in compliance with its financial covenants as at 31 December 2022.

In addition to the senior secured facility, the Grieg Seafood Group also has a green bond (GSF01 G, listed at Euronext), which matures in June 2025. The outstanding amount of the bond loan was NOK 1 424 million at the end of 2022. The bond carries a coupon rate of three months NIBOR + 3.4% p.a. The bond’s financial covenant is an equity ratio requirement of minimum 30%, measured consistent with Grieg Seafood Group’s equityratio financial covenants as defined in its syndicated loan agreement with secured lenders. Grieg Seafood Group was in compliance with its financial covenant at 31 December 2022 with an equity ratio of 50% (2021: 52%) while the equity ratio according to financial covenant was 52%, compared to 54% at 31 December 2021.

Grieg Shipowning on consolidated basis (sub-group of Grieg Maritime Group) is per year end 2022 required to have a minimum of liquid funds of USD 25 mill. / 5% of total interest bearing debt. A common covenant for all mortgage loans is that the Group must continue 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 17,7 mill. per 31.12.2022 for Grieg International II AS vessel ans USD 7,6 mill. for the Grieg Shipping III AS vessel. Grieg Shipping II AS and Grieg International II AS is providing guarantees in the amount of USD 221,2 mill. for Grieg Shipowning AS. The companies have been in compliance with the covenants throughout the year.

Grieg Kapital AS is required to comply with covenants due to acting as a guarantor for the credit facility that Proximar Seafood AS has entered into (see further details under “guarantee liability”). Grieg Kapital AS are required to maintain value adjusted equity ratio above

50%, maintain total equity above MNOK 420 and maintain liquidity-ratio (current ratio) above 200%. Grieg Kapital AS has entered into a first priority share pledge of all share in Proximar Japan and has received a fee for the guarantee on markets terms. Grieg Kapital AS has been in compliance with the covenants throughout the year.

GUARANTEE LIABILITY

Grieg Kapital AS has guaranteed for a credit facility that Proximar Seafood AS has entered into with a Japanese credit institution. Grieg Kapital AS is acting as the primary guarantor, which by 31.12.2022 added to JPY 3 250 000 000. Grieg Kapital AS has entered into counter-guarantee agreements that reduce the company’s exposure to JPY 1 336 000 000.

The counter-guarantees are subject to financial covenants:

i) Ensure that the realizable market value of its financial current assets at all times exceed the amount of its Counter Guarantee liabilities by a ratio of at least 2:1

ii) Ensure that the market value of its equity at all times exceed the amount of its Counter Guarantee liabilities by a ratio of at least 2.5:1

The counter-guarantees has complied with its covenant’s requirements.

Grieg Seafood has entered into a bank guarantee covering the employee tax deductions in 2022 (and going forward). At the 31.12.2022 the guarantee is helt at a total of NOK 6 million.

Grieg Maritime Group has issued performance guarantees for leasing of vessels. The guarantees relates to two financial lease vessels with remaining lease debt of USD 77,8 million and two BB vessels (operational lease) with remaining lease debt of USD 55.5 million.

Note 18 Share capital and share information

At 31 December 2022 the share capital of Grieg Maturitas AS consisted of 1 123 530 shares of nominal value NOK 1.

The company’s shareholders are as follows:

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.

Note 19 Equity

Note 20 Debt payable after 5 years

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.

Note 21 Financial risk

The Group is exposed to a range of financial risks; market risk (including currency risk, cashflow interest rate risk, fair value interest rate risk and price risk), credit risk and liquidity risk. The Group make use of financial derivatives to manage the financial risk.

MARKET RISK

Several of the Group’s companies hold significant financial investment portfolios, and changes in the value of international securities and interest rates directly affect the valuation of these. The portfolios are managed in accordance with long-term strategies and within defined mandates, also reflecting the Group’s business principles.

FOREIGN EXCHANGE RISK

A large proportion of the Group’s revenues, assets and liabilities are in foreign currencies, mainly USD and EUR. Changes in foreign exchange rates therefore affect the group accounts presented in NOK. The Group companies have strategies and procedures in place to reduce the exchange rate risk.

Grieg Maritime Group hedges expenditures in currencies other than USD through forward contracts. At 31.12.22 the company had entered into hedging agreements for the use of currency swaps for USD 3,8 million. Total unrealized MTM value, not recognized in the balance sheet at 31.12.22, was USD 0,4 million.

Grieg Seafood enters foreign currency forward contracts to manage the foreign exchange risk and apply hedge accounting to foreign currency contracts relating to non-current physical delivery contracts. The company do not utilize hedge accounting for its short-term foreign currency forward contracts. At 31 December 2022 Grieg Seafood Group have no foreign exchange contracts where hedge accounting is applied and the total unrealized gain of MNOK 2,7 is recognised in profit and loss and as a financial asset in the balance sheet.

Grieg Shipbrokers had 31.12.22 forward contracts to hedge a total of USD 14,5 million, with an unrealized not recognised loss of NOK 9,88 million.

CREDIT AND COUNTERPARTY RISK

The Group’s credit risk that counterparties do not have financial ability to meet their obligations is relatively low due to solid customers, and a diversified portfolio. Historical losses on receivables have been minor amounts. The Group strive to mitigate the counterparty credit risk by making use of procedures and systems and developing these on an ongoing basis. In specific parts of the Group with a large customer portfolio, the risk is reduced by maintaining robust procedures for assessing counterparty risk and credit rating.

LIQUIDITY RISK

The Group constantly monitors liquidity reserves and needs. The Group’s liquidity risk has increased, but strong liquidity and a focus on cash management ensure that there is sufficient liquidity to meet the Group’s obligations when they mature.

INTEREST RATE RISK

Interest rate risk arises in the short and long term as most parts of the Group’s debt are at a floating rate of interest. A change in interest rates will therefore impact the interest expense. The application of interest rate derivatives increases the predictability of the financing cost. A change in interest rates will also affect the returns on the investment portfolio and the rates on cash deposits. The Group’s strategy is to employ a certain level of hedging using interest rate swap agreements to ensure low volatility in the Group’s interest expenses.

Grieg Maritime Group hedges part of its interest rate exposure. Gains and losses arising from valuation of interest rate swaps in Grieg Maritime Group are recognised in the same period as the related interest expense. At 31.12.22 the Grieg Maritime Group held interest rate swap agreements

of USD 165,6 million. Total unrealized MTM value, not recognized in the balance sheet, was USD 10,7 million.

Gains and losses arising from interest rate swaps in Grieg Seafood are not subject to hedge accounting and are recognized at the lowest of cost and fair value. At 31.12.22 Grieg Seafood held interest rate swap agreements with a total of NOK 1 450m. Unrealized gains related to these agreements, not recognized in the balance sheet, amounts to NOK 35,2 million. The interest rate swap agreements have a duration of four years. The Company constantly evaluates whether these periods should be rolled over.

FREIGHT RISK

The Group’s ship earnings are to a large extent related to cargo transportation contracts as a considerable share of the shipping activities are of an industrial character. The open hatch fleet’s earnings are to a large extent related to long term cargo contracts. This implies that revenues are less volatile than in the spot market, and that change in market conditions generally have a delayed effect on the results.

Forward Freight Agreements (FFA) are from time to time used as a risk management instrument in order to smooth out freight volatility. The FFA contracts are settled as an adjustment of operating income. At 31.12.22, the company had not entered into any Forward Freight Agreements (FFA).

PRICE RISK

The Group is exposed to fluctuations in spot prices for salmon, which is mainly determined by global supply. Although the effect of changing prices is somewhat reduced through geographical diversification, long production cycles make it challenging to respond rapidly to change in marked prices. Salmon is primarily traded at spot prices. The price risk is partly hedged through financial sales and purchase contracts. At 31 December 2022, the Group had financial salmon contracts for 2022 totaling NOK -64,9 million, of which all were sales contracts, and physical delivery contracts recognized as liability, was zero. The unrealized loss per year end is recognized as loss, as the contracts are recognized at the lower of cost and market value.

Note 22 Related parties

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 3.

Note 23 Contingencies and subsequent events

INSPECTION – EUROPEAN COMMISSION

In February 2019, the European Commission launched an investigation to explore potential anti-competitive behavior in the Norwegian salmon industry. Grieg Seafood is one of the companies under investigation. At date, no decision has been made by the European Commission. Grieg Seafood is not aware of any anti-competitive behavior within the Group, neither in Norway, nor the EU, or Canada. Grieg Seafood rejects that there is any basis for the claims and considers the complaints to be entirely unsubstantiated.

SUBSEQUENT EVENTS

There has not been any significant events after the balance sheet date of 31 December 2022.

Transactions with related parties are governed by market terms and conditions in accordance with the arms length principle.

Note 24 Assets held for sale and discontinued operations

All note disclosures in the consolidated financial statements for 2022 of Grieg Maturitas have been prepared for the Group’s continuing operations if not otherwise explicitly stated in the specific note disclosure.

There are no assets classified as held for sale or discontinued operations in 2022. This Note 24 of the consolidated financial statements has been prepared for the Group’s assets classified as held for sale and discontinued operations in 2021 only.

THE EFFECT OF NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE AND DISCONTINUED OPERATIONS:

In 2020 decision was made to divest Shetland. Shetland is within the segment Grieg Seafood and were classified as assets held for sale and presented as discontinued operations from 2020. In December 2021, Shetland was sold to Scottish Sea Farms Ltd, and deconsolidated from the Grieg Group in December 2021.

The decision to divest Shetland was made in 2020, and the income and expenses from the Shetland activity has been presented as discontinued operations of the Grieg Group (as well as the Shetland assets being classified as assets held for sale as from 2020 until the sale in 2021). For more information, see the 2021 Annual Report of Grieg Group.

The discontinued operations was defined by Grieg Group as the farming and sales operations in Shetland. The discontinued operation in Shetland included the prior reporting segment of Shetland UK and the UK sales operations.

The enterprise value of the transaction was set to GBP 164 million, assuming a normalized net working capital and adjusted for net debt. On the closing date of the transaction, Grieg Seafood received a preliminary purchase price for the Shetland assets of NOK 2 087 million. In addition, Scottish Sea Farms Ltd settled a GBP intercompany longterm loan granted by Grieg Seafood ASA (“Seller’s debt”). The preliminary purchase price has been calculated pur-

suant to a pre-closing statement, which was prepared in good faith and set out the net debt and net working capital of the Shetland assets. The actual net debt and net working capital will be calculated in accordance with prevailing accounting principles and set out in a closing statement.

At year-end last year, 31 December 2021, the calculation of the gain/loss from sale of the Shetland assets was based on the preliminary purchase price. The preliminary gain after income tax resulting from the sale of the Shetland assets is NOK 424 million. The preliminary gain was calculated by deducting Grieg Group’s book value of the Shetland assets on the closing date and transaction costs from the sum of the preliminary purchase and the settlement of the Seller’s debt. In addition, the gain/loss calculation included recycling of accumulated OCI of NOK 106 million before tax and NOK 83 million after tax, whereas the tax expense of NOK 23 million related to the tax position on the Seller’s debt.

According to the sales purchase agreement, the closing statement and the calculation of the final purchase price was to be performed subsequent to the closing date of the transaction.

The consolidated statement of cash flow for 2021 includes both the continued and discontinued operations. When preparing the financial information of the disposal group, intercompany balances and -transactions between the entities within the disposal group, as well with other Group Companies, was eliminated in the consolidated financial statement. Certain invoiced intercompany services from Grieg Seafood ASA to Grieg Seafood Shetland was not eliminated, and are included in the discontinued operations’ result for 2021. These costs are considered directly associated with the assets held for sale, and will cease following finalization of the sales transaction.

FINAL PURCHASE PRICE

In February 2023, the closing statement and the calculation of the final purchase price has been finalized. Grieg

Seafood had, as at yearend 2021, estimated approximately NOK 7.5 million in receivables on Scottish Sea Farms Ltd. The estimate was also included in the gain/ loss calculation of 2021. In February 2023, there was no material deviation between the estimated receivable on Scottish Sea Farms Ltd. at 31 December 2022, and the actual received payment of the final part of the transaction settlement for the sale of Shetland.

PROFIT (LOSS) FROM DISCONTINUED OPERATIONS

GAIN ON THE SALE OF THE SUBSIDIARY AFTER INCOME TAX

Note 25 Litigations and legal claims

Grieg Seafood was sued by indirect purchasers in the USA. In 2022, a settlement offer from the indirect purchaser plaintiffs was accepted. In February 2023, the settlement was finally approved by the court of Southern District of Florida. The settlement does not involve any admission of liability or wrongdoing. Costs incurred and provisions for expected costs related to the lawsuits in North America in total of NOK 157 million have been expensed in 2022, of which NOK 129 million were used at year end. The remaining NOK 28 million are accrued as other current liability in the Statement of Financial Position. See also Note 23.

Design/production

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